maria: great show, everybody. have a good memorial day weekend. have a good day. thank you james, dagen. that does it for us. have a good day. "varney & company" begins right now. stuart, take it away. stuart: good morning, maria, dagen. good morning, everyone. it's a direct clash between politics and money. the democrats are in a headlong rush to impeach the president or charge him with contempt or investigate him forever. the president is having none of it. he will not deal with speaker pelosi until it's over. bottom line, nothing gets done. and that has investors worried. no infrastructure deal, no usmca trade deal signing. that's not good. in the absence of any news on china trade, the market is selling off and it is across the board decline. it continues the drop that started early this month when the president raised china tariffs. look at that, down 200 on the

dow, down better than 1%, 85 points down for the nasdaq. now look at this. this is the key interest rate, the yield on the ten-year treasury. very important. it's down to -- down to 2.35%. that may be another sign that trade disputes will slow the world economy. president trump will shore up his political support from farmers at a white house meeting today or at least he will try to. they have been hit hard by tariffs. agriculture secretary sonny purdue told fox business the administration will offer $16 billion to help out. all right, everyone. here comes the deluge of news. hard line modi wins india's election. prime minister may on her way out, perhaps within hours. disruptive elections under way for europe's parliament and watch out, tesla stockholders. it's down again. "varney & company" is about to begin.

stuart: deadly tornadoes, look at that, deadly, in jefferson city, missouri. the word is in quotes here, catastrophic damage. ashley: yeah. a tornado hit last night just before midnight in jefferson city. jeff city, as they call it, the capital of missouri. being at nighttime, you can't see it. the sirens were wailing, people were taking cover as best they could. the damage as per the governor of missouri, as you say, is devastating. but at last report, no fatalities. nine injuries, nine people taken to local hospitals. however, let me just, you know, just add this. they are now really going around looking at the damage, seeing if anyone is trapped. but this has just been a series, 29 tornadoes in oklahoma, mississippi, just in the last 24 hours and there is another round of these storms today and of course, with all of this comes

flash flooding which has been really tremendously bad in oklahoma, near tulsa, oklahoma, people being evacuated as best as they can get to these folks. but this has been day after day after day. a weather pattern has set up that fires off these storms in the afternoon and tornadoes, many of them. stuart: as we go through the show, as we go through the morning, they will find out exactly what happened. ashley: that's exactly right. they are just now going through the damage. stuart: we will update the throughout the show. the market is very much a focus of attention. look at this. we will have a sell-off this morning. down about 250 on the dow, down 1.25% on the nasdaq. market watcher gary kaltbaum back with us today. couple of our market watchers on this show have said this could be the start of or a continuation of a total 10% drop for stocks. what do you see, gary? >> sure. look, the emerging markets are

down 10% since may 2nd. look, this all started a few sundays ago with the china issue, when the president said china backed away from negotiations and everything they promised so away we go. just remember one other part of the equation, stuart. the first four months of this year, the market was up the equivalent of two to three years of average gains and that was not sustainable. i think you have a combination of how strong things were, but this is without a doubt a big issue. there's a lot of uncertainty being factored in and i will tell you that the big institutional crowd does not like uncertainty. stuart: is this standoff between the president and the democrats in the house, i think it's gridlock. i think nothing gets done. is that also hurting the market? >> well, normally i would say no, but you have this usmca thing hanging out there that needs to be voted on and passed. there are some important things that need to get done. it looks like it's not going to get done. the problem now is not just they

disagree, the parties, i mean, look how they talk about each other. they literally hate each other and i suspect nothing done on anything, especially debt and deficit which i have been talking about for years, that just continue to blow up every day. stuart: hold on a second. more on this in a moment. first politics. high political drama happening during yesterday's program, actually, and the president is tweeting about it this morning. i'm going to read all the way through it. the president's tweet. the democrats are getting nothing done in congress. all of their effort is about a re-do of the mueller report which didn't turn out the way they wanted. it is not possible for them to investigate and legislate at the same time. their heart is not in infrastructure, lower drug prices, pre-existing conditions and our great vets. all they are geared up to do is squander time day after day trying to find anything which will be bad for me. a pure fishing expedition like this never happened before and it should never happen again.

liz peek, fox news columnist, with us right now. nothing gets done, i think we can maybe agree on that certainly in the short term. who gets the blame? >> well, look, i think nancy pelosi is trying to have it both ways. she thinks she can insult the president, continue to appease those members of her party who are moving towards impeachment, call him a crook virtually on the cusp of going into a meeting with him and still have a lovey-dovey relationship talking about infrastructure. it's not going to work. i never thought it was going to work because they are completely at odds on how to pay for infrastructure and everything else. it was simple, nancy pelosi had to show the country she was willing to work with the president on something and govern but guess what, she's not and it's not going to happen and this is very bad for everybody, it seems to me. stuart: i think she's lost control of her caucus. >> without a doubt. by the way, when you are talking market problems, it looks like they are inching towards impeachment proceedings. there is such a vocal part of her party that really is pushing that now. that's not going to be helpful to the markets or the country.

stuart: sometimes gridlock, doing nothing is good for the market because the politicians can't mess things up. not this time. >> there is stuff that has to be done. gary was right. the usmca thing is very important, i think, in terms of galvanizing the world, telling the world we are not just protectionist on trade, we actually want good deals, we want a good deal with china, not to do business with china, and we are not going to get that done. stuart: i want to bring to everybody's attention cbs news polls. remember, this is cbs news, okay? look where they are coming from. cbs says -- poll says of americans, 71% said the economy is in good shape. 71%. not seen a number that high before. 41% say trump's policies are mostly responsible for this good economy. is the message getting through, finally? >> i think it is. there have been some outlier polls from groups like hispanics and millenials that show

increased support for the president. why are they supporting the president? because they are better off than they were. that will be the message going into 2020. are you better off than you were under president obama. the answer almost universally is going to be yes. that's a very powerful election message. stuart: it sure is. gary kaltbaum, come back in again. do you agree with that? you saw the polls there from cbs. is the president's message getting through? >> i think it's starting to. look, i have always said the tax cuts and the regulatory cuts were absolutely huge and i think it's been a big part of the acceleration in the economy as well as the amazing employment figures, but i'm real worried about these tariffs. they are a tax hike. i believe they undo the individual tax cuts. if they continue, and there's a reason why industry after industry right now is literally begging the president to not go through whether it's sneakers and shoes or toys, you name it, something that he's really got to consider in the next few weeks because i think it will have an impact negatively if it continues. stuart: got it. okay. liz, gary, both of you, thank

you very much for joining us this thursday morning. ashley: yes, it is. stuart: days confused. as you know, if you watch this program, the retail sector has been badly hit recently. however, this may be one of the exceptions. best buy reported higher sales, they gave a solid forecast. the stock is up about 1%. not bad. everybody else or most others are down. but not l brands, parent company of victoria's secret and bath & body works. the secret here is they gave a rosy forecast. you give a rosy forecast these days, your stock looks good. premarket, l brands up 8.5%. how about apple? ouch. ubs cuts its target price on apple to $225. it was at $235. they cut it to $225. they also cut iphone forecasts. they blame weakening demand in china. look at the stock. down another 1.6%. it is below $180 as we speak.

how about tesla. down again. analyst gene munster warned -- now it's up. ashley: how about that. stuart: previously, analyst gene munster has said they're not going to hit their production targets on their cars. that took the stock down. he's going to be on the show in the 11:00 hour. then came bounceback. now the thing is up four bucks, 2.2% but still shy of $200 a share. we will follow it for you. that's a promise. overall, the market's still going to be way on the downside, 200 points plus down for the dow, 80 points down for the nasdaq. this intrigues me. amazon working on a wearable device that it says will be able to read human emotions. we are all in trouble. mind reading me? dear lord. we're on it. believe me, we're on it. democrat congresswoman

really under fire after claiming that the deaths of migrant children are intentional. i think that's an embarrassment for all democrats, all americans, actually. my take on that coming up at 11:00 this morning. the fate of the usmca is up in the air after yesterday's drama. will congress pass it? what happens if it doesn't? we are asking the questions on "varney & company" which is just getting started. ♪

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now that you know the truth... are you in good hands? stuart: it was supposed to be and it started out for a couple of seconds as a meeting over infrastructure. ah, but you know it quickly degenerated into what i'm going to call political theater. nancy pelosi has said hey, mr. president, you are covering it up. he didn't like it. now it looks like nothing is going to get done. that's our theme. nothing gets done. the republican from virginia joins us now. sir, i know you are a big proponent of usmca, the new nafta. i know you want to pass it. i know you are going to say we

should pass it, we need to pass it. i got it. are we going to, yes or no? >> how bold you want me to be? no. i had a great meeting with the virginia delegation yesterday which was bipartisan and the usmca was sort of roundly praised, and you know, then the theatrics with pelosi and schumer happened yesterday and i fear we are not going to get a vote on usmca. stuart: what do you think happens? >> i think what happens now is we continue to fight because right now, you see bills, the name of the bill is completely different from the text. i think the democrats are going to continue sort of this click-bait congress, right, where the title never matches the text and i see the hyperbole, i see what's going on right now. it seems like this authoritarian hyperbole is sort of their crack cocaine. i think we need a liberty intervention and we need to have some people right now stand up and say let's get some bipartisan stuff done because usmca is actually for real. stuart: as i understand it, the usmca deal has been negotiated and been presented to congress

as is. you can't amend it, you can't change it. it's up and down vote. that makes it look unlikely to get through. >> yeah, because it's a win for president trump. it's a win for my district. i was just talking here earlier, my district is bigger than six states. dairy, timber, tobacco are still three of my biggest products in the fifth district. right now i'm pretty -- i'm not real happy. i'm angry. not just frustrated, i'm angry because i came to congress to get things done and i'm new. i'm sick of it. stuart: you think democrats will get the blame for this? obviously you want them to get the blame. i can understand that. but are they going to? >> i think right now, with all that they have going on with mueller and tax returns and again, the ridiculousness and the theater, the political theater that you see right now, i would hope that they do because i'm going to give it to them. you know, i have a quote from you, stuart, one of those, like my shakespeare quote last time. it says -- it's a great show, it says politics is deliberately

making things better for some by deliberately making things worse for others. i think that's what the democrats are doing right now. you know, a lot of times i like to smile and make some jokes but the usmca is very important to my district and right now, there's just nothing getting done from the democratic congress. stuart: congressman, thank you very much for joining us this morning. >> always, stuart. i enjoy being on. stuart: if you're not careful, you will come back. >> i can't wait. i can't wait. thanks. stuart: thanks. all right. amazon, here's the story. amazon working on a device that can read human emotions. susan: yeah. read me right now. this is a prototype according to bloomberg news reports. it works behind the fire and the echo with alexa voice software. it's in development right now. they are looking for a voice activated wearable that can recognize human emotions and it's designed to work with a smartphone app so i guess they store your emotional read each day. how it works, basically this

device supposedly uses microphones which will help discern the emotional state of the sound of your voice. stuart: oh, that's it. susan: that's how it works. stuart: that's not quite reading your brain waves. susan: some say it's the voice and basically your physical gestures that give away your emotions more than what you are actually saying. it's kind of smart in a way. amazon is moving towards the health, they want this to be viewed as a health product. the question is, will -- ashley: i would love to see you wear one. susan: we will be listening in as bloomberg has reported in the past? stuart: your face has i think like 800 muscles. you can get a computer that reads all the slight movements in your face and interprets the emotion -- ashley: this thing is like a wristwatch that listens to your voice. stuart: i'm saying, sooner or later, somebody's got a computer system that will read your emotions, ash. you better be careful. ashley: i didn't mean it. susan: it's powered by alexa voice software.

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stuart: you know, it's been a pretty rough ride recently for three big retail names. you know them. jc penney, kohl's, nordstrom. weak financial outlook, not helping any of the retailers. michelle grant is with us. she watches the retail industry. let's get right at it. is this the end of the department store as we know them? >> i believe so. i believe the department store channel is facing an existential crisis. the sector has been in decline since 2006 and we really don't see the overall market size rebounding. stuart: well, michelle, this is your first appearance on this program, i think it is, at least -- >> it is. stuart: we just love direct answers. ashley: yes. stuart: is this the end of department stores as we know them? yes. good lord. we're not used to that. we are used to maybe on the one hand, maybe on the other hand. we're not used to this. let me ask you this one.

also, you like the discounters. tell me why. >> yes. so discounters, there's a couple of different varieties of them. one we have in grocery discount, aldi, which has been growing very quickly and expects to open enough stores to be the third largest grocery retailer in 2020 or 2022 by store outlets. then we have the off-price retailers like tj maxx, ross, burlington, which all reported very strong q1 reports. then we have the dollar stores which are also doing really well. so essentially, the department store channel has kind of been unbundled and in the space of all the assortment available, they really don't have that much to offer and instead, consumers are turning to value-based retailers for those different needs. stuart: just real fast, i have to do this, full disclosure, do you own any of the stocks you

are mentioning? >> no. i do not. stuart: okay. you, madam, will be back. that's a fact. we like what you've got to say. we like direct -- it really works on television. believe me, it does. thanks very much indeed. appreciate it. check that market. we are opening up in exactly five minutes. we will be down 200 on the dow, down over 1% on the nasdaq. watch out. downside move coming after this. you wouldn't accept an incomplete job from any one else. why accept it from your allergy pills? flonase relieves your worst symptoms including nasal congestion, which most pills don't. flonase helps block 6 key inflammatory substances. most pills only block one. flonase.

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stuart: the heirs to the samsung fortune, the estate of that family facing a very hefty tax bill. that is a big tax bill, got it. it's also putting control of the company in some question. first of all, susan, how much do they owe? susan: it's a $15 billion wealth for the father of these two heirs that will be deciding who will take most of the control of samsung electronics. they are worth $15 billion. in south korea, it's a 50% estate tax on anything over $2.5 million, second highest right behind japan. for comparison, the u.s. estate taxes are 40% at $22 million. anything above $22 million. stuart: what's the tax bill? susan: the tax bill is $8 billion.

that also means control of samsung electronics as well, the largest smartphone seller in the world. stuart: okay. we should remember that. you hear it? you hear it? they are ringing the bell. they are clapping their hands and the market is going to open in two seconds. it's going to be down, folks. here we go. 9:30 on a thursday morning. we are already down over 100. down 125. down 189. it's a sea of red on the left-hand side of your screen. now we are down 230, 240, 250. 255 points, almost exactly 1% down and every single one of the dow 30 are in the red. there you have it. how about the s&p? 1% down for the dow. .8% down on the s&p. give me the nasdaq, please. home of the techs. down 1.1%. we are down across the board. big-time. the ten-year treasury yield, down to 2.35%. we will talk about that in a

moment. first of all, liz peek, scott martin, susan li, ashley webster, all on the show this morning. start with you, scott. is it all boiling down to this, no action, nothing being done in washington, and no good news on china trade. is that why we're down? >> i think that's about right, stuart. also the fact as you and gary kaltbaum mentioned earlier, the fact the markets had a nice run this year, so backfilling is probably due. the thing in d.c. is interesting. it's not maybe so much the no action yet because we do have some promise of maybe something happening in late june with the g-20 in japan. i think it's the messaging. i think the messaging from the administration with all due respect to them is a little off. steve mnuchin and others talking about no impact from the tariffs, we have seen the pain farmers are feeling with some of jeff flock's reports yesterday. i think that's detachment from reality the administration seems to have is what's bothering the markets right now. stuart: all right. we will take that under advisement. we've got a couple very bearish

analyst calls on tesla. gene munster warned that the company won't meet its delivery targets. citi says the stock could drop to $36 a share. the stock has recovered from earlier losses but is still at $193. back to you, scott. is this end game for tesla? >> no. i don't think it's end game. i think it's rough game going here for a little while. let's face it, you know, we talked about this before. elon musk is not a good ceo. he's a good innovator. they have had a lot of piling on now from analysts and so forth about these price cuts, if you will. some of these are crazy, though. some of these analysts are cutting estimates from $350 to $240 to $120 to $50. things are getting a little bit out of control. tesla still to me is a technology company and always has been. some of the ip, some of the ingenuity they have is worth something. whether it merges with his space company or other companies that might be interested in what they have is probably the end game

for tesla which might not be where people think it's going which is low single digits or whatever. stuart: gene munster, who made that call on future production of tesla, is on the show this morning, 11:00 on this program. i need to get to retail. look at victoria's secret parent l brands. that stock's up after reporting higher profits, nice 6% gain there. best buy, higher sales, solid forecast, but the company's ceo says tariffs will lead to price increases. liz, what do you say? >> look, they are all talking about tariffs being a big problem down the road. target was one of the few companies that did not fight that. they didn't change their forward guidance. but the answer is this is obviously weighing on these retailers and it's icing on the cake. they already have problems. this is more of it. ashley: to liz's point, on the one hand you have some retailers doing well. i say that in jest. some retailers have done okay in the first quarter but more stores have closed their doors for good this year than all of last year and it's still only

may. susan: also, it's e-commerce is what we were talking about, there are winners and losers. the winners are target and walmart that figured out if you have bricks and mortars, pick up, delivery works. >> the interesting thing, it's not the consumer. sales are actually up, if you combine march and april, the numbers were not bad at all. spending is okay. susan: retail sales have been down two out of the three months this year. i guess we were -- stuart: what we are really talking about here is the downside effect of china tariffs. how bad is it going to be. don't tell me there's no impact whatsoever. the longer it goes on, clearly the worse it's going to be. quick word from you, please, scott. >> yeah, the hiring side, too, is interesting. that's been a little bit of a canary in the coal mine in the sense of like retail hiring, because we look at job reports a lot to figure out what sectors are hot or not, and retail hiring has been terrible the last few months so far this year. that's something that's showing to your point about the impact of the tariffs.

so you cut workers and you raise prices and that's how you fight those things. stuart: quick check of the big board, this is the low of the morning. we are only five minutes into the session but we are down 287 points as we speak. that puts us at 25,400. better take a look at apple. ubs cut its price target from $235 to $225. they cut their iphone forecasts and they blame weak demand from china. the stock now, $179. $3 down. hormel, spam people, they cut their forecast. the ceo says prices are going up because of loss of hogs in china. that country dealing with swine fever outbreak there. hormel down 5%. shoe carnival, their sales fell short. there's another retailer. down just a fraction, actually. just a fraction down. check the price of oil. where are we this morning? whoa! ashley: big-time.

stuart: below $60 a barrel. that speaks to me about a slowing world economy, pressure on america's economy, pressure from tariffs, pressure from trade. $59 a barrel on crude. the price of gold, i have no idea. where is it? up five bucks, $1280. not much move in gold recently. facebook says it's stopped paying commissions to employees who sell political ads. is this a big deal? susan: yeah, it is a big deal because of the p.r. smear from 2015. this used to be a growth outlet for facebook. now they are backing away from this. i was taking a look at some of the numbers, especially when it comes to political advertising. you know it's going to jump to over $3 billion for the 2020 campaign. even the head of the trump re-election campaign, they will spend $1 billion on that in the run-up to 2020. but after facebook itself took a small sliver of the $55 billion they bring in revenue so let's back away from that if it's not making that much money for you

and by the way, there's a big downfall when it comes to p.r. >> if they can, right, because any kind of opinion piece can be read as political advertising. some of the stuff that was done in europe was really not direct political advertising. it was influence generating kind of commentary. i don't really know how they kind of get away with it. susan: they also imbed staffers in presidential campaigns. they will end that. that is stopping. that very obvious piece is not -- stuart: facebook people, shareholders, it's at $183 as we speak. amazon. jeff bezos blew off a shareholder proposal to reduce drastically the company's carbon footprints. scott, is this bezos saying he's going to run the company any way he wants to? that's what he's saying, really, isn't it? >> that's what i'm feeling. and he has been. more power to him. i think we can all agree that we should let him. he's been doing it the right way, even back to the days when they were losing tons of money

and you know, doing billions of dollars in sales and losing billions of dollars in net profit. look, let jeff bezos do what he needs to do. we own amazon and in bezos i trust. >> i think amazon is very worried about being accused of degradation of the environment because of all those boxes piling up on people's porches. they know this is a threat and not surprising they did not want this to become a major talking point at a shareholder annual meeting. he did everything he could to suppress its discussion because it's a real problem for them. stuart: i think they blew off all the suggestions from individual shareholders. >> most were probably whackadoodle suggestions. susan: they will continue to work with governments around the world. stuart: we have a new low for the dow just at us right now, off 319 points as we speak. it's a big decline. that's 1.25% down for the dow industrials. susan: can i also note that monday is a holiday in the u.s.? typically for long weekends you don't want to hold that much

risk. >> could be a bad end of the week. susan: when it comes to u.s./china trade. yeah. people are taking money off the table. >> they could come out friday, saturday with a tweet about can't wait to meet with president xi and all the people selling will look pretty silly. stuart: scott, do you think we are on momentum for the downside and this week will end badly? you feel that way? >> it feels like that, just because of the fact that i think there is still some pretty let's say hard longs out there with respect to folks that wanted to hang on through this down turn and maybe just can't take it anymore. we haven't seen that much of a pullback. i don't think it's anything tremendous to worry about other than the sense we will see bad feeling here. yes, i think into the weekend especially given it's a long one, you could see selling accelerate. stuart: here's what may be the shape of things to come. ford motor company teaming up with another on a robot that delivers packages to your door after getting out of a self-driving car. in other words, the self-driving car draws up to your house, robot comes out the back, picks up the package, toddles across

your front doorway and bingo, the robot leaves -- ashley: robot is called digit. stuart: is it? ashley: yes. listen, they will have 100 of these by early next year. they will try them out. first it's a parcel delivery service. amazon will drop them from the air using drones. this one brings them to your front door. it's a bit creepy looking. to say the least. but they could end up actually carrying groceries as well. susan: automation people losing their jobs and u.s. postal service workers should be concerned, especially when the u.s. postal service has been losing about $43 billion over the past decade. stuart: this is one thing i can see happen. >> it's inevitable. there's a worker shortage. who is going to be delivering those packages? ashley: digit will be doing it. >> the question is can they read your emotions? are you going to be happy getting the package and will they report that back to amazon. susan: download it. stuart: 9:40 eastern time this

thursday morning. i have to say thank you very much to liz and scott. good stuff. now then, we better check the big board. this is the low of the day. down 334 now. 25,400. the white house getting ready to offer $16 billion worth of aid to farmers hurt by the trade wars. in our next hour, we will talk to a farmer who will meet with the president today. i want to know what he wants from the president. lot of college students continuing to embrace socialism. we sent our own kristina partsinevelos to nyu. find out why, what's going on with these kids. wait until you hear what they told her. and apple stock down again. it's lost $130 billion in market value just this month. ubs cuts its target price and it cuts iphone forecasts. next, we talk to one of the earliest investors in apple. what's going on? i'll ask him.

stuart: low of the morning thus far. we are down 1.33%. that is nearly 350 points. we are back to 25,400. take a look at apple. it's lost $130 billion worth of market value just this month. ubs has cut its price target this morning. they've cut their iphone forecast and look at the stock. it's below $180 as we speak. i want to bring in an early investor in apple. it is alan patricof. welcome guest to the show. >> thank you for inviting me. stuart: what's wrong with apple? is it all china trade or is there something else going on? >> i learned a long time ago if you like a stock, you like a company, you like it twice as much when it goes down 50%.

i think apple was the kind of stock you want to own for a long time. right now they are going through the tariff problem, the china problem, and on top of that, nonsense about their keyboards and all these minor things that adds to the noise in the environment. stuart: i should be clear to our viewers, you were an early investor in apple, like a generation ago almost, and you sold it. >> i computed the value of the $300,000 we invested in 1979 would be worth today $3.5 billion. too bad we didn't hold on. stuart: for the ordinary everyday investor, not someone like yourself, you are an early investor, for normal everyday people, apple at $179 is an attractive stock? >> i think it gets more attractive as it goes down. it's hard, when you think about it, i remember a month or two or three ago, you remember better, that we were celebrating apple passed $1 trillion in valuation. remember? that was a real landmark. stuart: yeah, it was.

>> i think the company is a basically strong company. it's got a product, i mean, go to 59th street and fifth avenue, sorry to be parochial, they are building this new, i don't know, i want to say edifice. the glass cube wasn't big enough. it's now going to be bigger. you can't get in there at three in the morning. i think apple, the one thing that's interesting is i heard tim cook at the time 100 event a few weeks ago in which he, in a frontal statement, said we should be regulated. which was interesting, because you know the discussion today that's going on, i wrote an op-ed for the "ft" talking about the need for regulation for these companies that have gotten very, very big. not apple particularly, but amazon, google, facebook. stuart: i know you are an early investor. you often get in before the company goes public. >> we like to, yes. stuart: you like to do that, obviously.

uber and lyft, ride hailing services, they have gone public recently. they have not done that well. as an early investor, what do you make of these ride hailing companies? >> first off, unfortunately, i wasn't an early investor because the early investors have done very well, will do very well no matter how the market fluctuates. i think for the people who bought in the public market, you have to look at how the first one, two, three quarters do. i don't know, i mean, we are at a stage with these companies where they can't have these 50% to 100% quarter to quarter growth rates. the growth rates have got to come down at these levels. we know the losses are gigantic. stuart: it's a new kind of company. they develop this whole industry. wouldn't someone like you want to be a part of it? >> well, not now. certainly then. but as a public market investor, i think it's subject to volatility based on how they are going to perform. we are now -- now in the glaring light of sunlight. i think how they are going to do

in this june quarter is going to be very important and the september quarter. stuart: i'm 70 years old. >> that young? stuart: thank you. is that good or bad? i'm not so sure. should i buy it? i've got a five-year time frame. a life expectancy of maybe five years. should i buy it? >> i would be hesitant because i think it's going to be subject to a lot of volatility here. you've got, remember, the six-month window when everybody can sell. so you've got a huge overhang in these companies. they try to take some of the air out earlier, getting people liquid, but you have a lot of people who are just waiting for that six months and a day to get liquid and again, they are getting competition and amazon's invested and door dash is going to compete with uber eats and the ride sharing, everybody, there are a lot of regulatory problems in various cities. i'm not against them. i think they have had amazing success and maybe we will continue that way.

you are losing $1 billion, $2 billion, that's a lot of money to keep losing. stuart: alan patricof, yes on apple, wait and see on uber and lyft. >> plus we can talk about a lot of young companies coming up, too. stuart: yes, we could. 9:49. i'm dead. you're going to kill me. mr. patricof. will you come back? >> any time. maybe. we didn't even talk about politics today. stuart: i let you off easy. look at this. left-hand side of the screen. there's the dow 30. 28 of them are in the red. a new low for the dow, off 362. how about this one. a study shows artificial intelligence program developed by google does a better job detecting lung cancer than doctors. doc siegel is next on that. we'll be right back. we're carvana, the company who invented

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stuart: give or take a few points, we are down 400. two elements here. number one, no real new news on china trade, and the spat in washington means nothing gets done in congress. this time, that's bad news. how about this one. google has developed artificial intelligence that can detect lung cancer better than doctors.

dr. marc siegel is with us now. is that right? is it better, artificial intelligence better than a doctor? >> which do you prefer, the cold steel hands of artificial intelligence or the warm error-prone hands of a physician? answer, you can have both. stuart: yeah, but what is this artificial intelligence can do better than radiology? explain it to me. >> it's fantastic. it's because if you have a huge computer base, in this case the study out of chicago had over 40,000 images. three-dimensional. doctors, radiologists rely on two-dimensional slices of the lung, we call them. this was putting together one three-dimensional image and they were less likely to under-diagnose or overdiagnose so they were more likely in a patient where you have never seen a previous ct scan and by the way, ct scans are saving lives already with early diagnosis of lung cancer. huge advances using them for lung cancer. in this case, the artificial intelligence was better, more accurate than 20 radiologists who had 20 years of experience

each. now, here's the caveat. it's not going to replace the radiologist. you go out to an area of -- rural area where you don't have such a highly trained radiologist and they get this artificial intelligence, it will help them save lives. you use it as a tool. you do not replace a doctor with it. the doctor has this looking at them when they look at the images. they already know what the artificial intelligence says. stuart: it's an improved tool. >> fantastic. stuart: okay. you used the word fantastic. i'll take that. >> but you need a computer data base of a google in order to be able to have this good of an artificial intelligence, you need something like a google. stuart: look, i've got one minute left. i wonder if you can explain this to us. there's some concern about, here it comes, 5g, health concerns over 5g that will soon be on my phone. what's the problem? >> well, first of all, it's a tremendous advance. i want us to win the trade war on this. it's huge 5g, because it's higher definition. the problem is it has to be closer to you. stuart: physically closer.

>> right. to go faster and transmit more data, you have to have the tower closer to the phone. so we have to put in 300,000 new towers around the united states. they are going to be in the street lamps outside your house. stuart: isn't it a more powerful signal that's coming to and going from my phone? isn't that the nature of this health problem? >> it's faster. it's not a more powerful signal because the waves themselves don't penetrate as far into your body as 2g and 3g but the problem is that the tower's going to be closer to you. stuart: so what? >> we don't know. okay? they have done a huge study with 2g and 3g in mice and they have found an increased risk of cellular changes that could lead to cancer. that's the concern. most of us feel that radiofrequency waves are safe. we do. but we want to see long-term studies. i don't want to see this slowing the wheels of progress. it's a huge technological advance. i can use it medically to operate remotely. love the idea. stuart: i'm interrupting because we are now down 400 points, as you can see on your screen. that's better than 1.5% to the

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stuart: look at this. we have a market selloff on our hands. 10:00 eastern time. we're down 401 points. that is the dow industrials. 25,300 is the number we're looking at for the dow as we speak. breaking news data for you on new home sales, just coming across at us. the raw number? ashley: 673 million, 637 million, no, thousand, you're right, sorry. that is light miss from the estimates. it is down nearly 7% from march. we had a very good strong number in march which hit a 1 1/2-year high on new home sales. now we've come back a little bit

for april. stuart: how about mortgage rates? it is thursday, 10:00 eastern time, we have the mortgage rate news. that is? susan: down for the fourth consecutive week. 4.06% for 30-year fixed. down from 4.66 a year ago. treasury yield, lowest since december of set of september. the safety play is on. 2.35 right now. stuart: 2.35. lowest -- ashley: 2.33 i have. i have 2.33. stuart: that to me is an indicator after flight to safety. susan: correct. stuart: everyone is worried about the long holiday weekend. watch out, go into treasurys, you're secure, safety, et cetera, et cetera. 2.33. susan: with lower rates on mortgages, by the way that is driving up demand for the high-end of the home market according to freddy. there is added benefit to it. stuart: okay. susan: there is added benefit. stuart: okay. ashley: mortgage buyers are more sensitive to mortgage rates.

stuart: we have news on tesla. what is elon musk saying? ashley: e-mail to the staff, he says they're producing 900 model 3 cars on the verge of reaching 7,000 cars per week. he says delivery will top the fourth quarter record of 90,700. stuart: susan is shaking her head. susan: every tesla investor has gotten used to this, elon musk overhyping the production numbers. he tweeted that they will get 500,000 cars delivered this year. that will not happen. he had to go back to reality to 300,000. i don't think a lot of stock people putting into these numbers he is throwing out. stuart: tesla up five bucks per share but the yield on 10-year treasury -- ashley: 2.239. susan: 18-month low. stuart: 18 month low, thank you, susan. dow jones industrial average is

now down 370 points. got it. i want to bring in our market watcher because we have such a downside move here. alan is back with us. got the name right, didn't i? >> as always. stuart: huge move down here. >> stuart, we have to be mindful what is happening in the market. we're dealing with a market that have major structural changes that have been positive. we had the tax cuts. we had great employment numbers. this is period when we're 4 1/2% off the highs. i think we have to put it in that context, understanding there are risks that are out there. stuart: alan says to our viewers, most who are long-term investors, don't sell now, don't panic that is the word of the day? >> volatility should not push you out of the market. stuart: let me raise this negative. we have a standoff in d.c. looks to me like nothing is going to get done. that would include usmca. that would include a infrastructure package. you know, that's a big deal.

isn't that a big negative for the market going forward? >> i think that is what the market is perceiving. all these things can be black swans in the market. can being things that throw us off balance. we have to understand structurally the economy is doing very well. the federal reserve shifted to more supportive role. president trump is talking about things like qe trump. we should have additional quantitative easing. stuart: he does. >> could be fed adopts such a policy because it would make sense from the fiscal side. it would reduce cost of paying for the debt the government has. there is a lot positive activity possibilities -- positivity possibilities that are on the horizon. stuart: could get a trump tweet over the weekend on china trade, a meeting with xi xinping that could change things. >> we have to establish ourselves, mindful what is happening in the market. understand that the fundamentals are still very good. stuart: did you see the firing

rate today? 211,000. that is not quite a historic low but it is way down there. it's a very positive economic indicator. there is nothing wrong with this economy, can we put it like that? >> no doubt the structural changes including regulation, rollbacks, and including what the president has done in terms of taxes have been fantastic for the economy. you can see it in the numbers. there are, there are risks. we have to be conscious of those as we invest. stuart: the british in world war ii had an expression. stay calm, carry on. that is good to use the expression. >> glad i thought of that. stuart: alan, thanks for joining us. >> thanks, stuart. stuart: quick check of the big board. we're down 360 points. that is the best part of 1 1/2% down. now this. opinion. speaker pelosi is being pushed further and further towards impeachment. this is not good for the country, it is not good for her speakership, i don't think it is

good for the democrats either. by 2020, what will they have to show for their control of the house? nothing. impeachment will fail. even if there is no formal impeachment, just endless investigations, subpoenas, obstruction charges, same story, the democrats will have achieved nothing. you can already see that hatred of this president has come -- i use that word deliberately, hatred, that is what it is, has completely distracted the left from the business of government. even bread and butter democrat issues like prescription drug pricing, they're on hold. not to mention the explosive crisis at the border, nothing is being done. if you're a moderate democrat facing re-election, what do you tell your voters? you went to washington to improve the lives of your voters but it was president trump's economy that helped ordinary people. unfortunately for those moderates, the left, the impeachment brigade, now runs the democrat party. speaker pelosi has lost control. i find this hard to understand.

leadership, democrat leadership, has decades of experience. they can't control their own caucus? speaker pelosi, 79, in congress for 26 years. steny hoyer, 79, in congress for 28 years. james clyburn, 78, in congress 26 years. this is the leadership that can't control the newcomers? the truth is the old guard has been overwhelmed by flat-out trump hatred. democrats today are defined by how much contempt they have for donald j. trump. they pasted an opportunity. after winning the house they could have gotten something done on drug prices, health care, those dreamers? instead, they will throw it all away because they just hate him. okay. you heard my editorial. that is what i have to say. look at what the media is saying

about yesterday's political theater. two "washington post" headlines, the first, trump angrily walks out of meeting with democrats. here's another, a trump twitter-style diatribe, live from the rose garden. joining us, cassie medley, deputy communications direct for the republican national committee. is it fair to blame him, cassie? >> he is the one getting results. blame him for your own political peril. he has been in office every day fighting for the american people, democrats spend every single waking moment fighting donald trump. who has the better record going to show in 2020. stuart: they have the media. the media says uniformly this is trump's fault. trump refused to do business with congress. it is trump's fault. they will lay it on him big time for 20 months. >> you've got a media over 90% of the time is negative towards

the president as you pointed out. yet, look at all the numbers you talked about. things are looking really good. people are feeling really good. despite the media and democrats best efforts to malign the president and his accomplishments the facts say otherwise. that is what is the difference that will make all the difference again in 2020. stuart: new york lawmakers, they have just passed a deal, a bill, said they can actually get a look at the president's tax returns. this is new york state tax return, by the way. they are also going after his bank statements. they're going after every aspect of his business and his personal life. how do you feel about that? >> well again you have a state run by democrats that is not doing so hot right now because they're spending all of their time going after president trump but the fact of the matter is, just because you don't like the guy does not justify your efforts to investigate him ad nauseum. the american people see right through that. that is the issue that will bite the democrats in the butt next year because the american people

are say, i don't understand why you're not doing your jobs? you have the president every single day trying to get something done. anytime you maybe hint you will work with him, all of sudden you cater to the far left base, no, no, don't dare give him a win. that is a loss for the american people. stuart: got it. cassie, thanks for joining us again. we appreciate it. 16 billion-dollar package on the way for farmers to offset china tariffs. we have the president of the american farm bureau federation coming up. he is heading to the white house this afternoon for a farm relief talks. he is on our show first, however. amazon wants 3d scans of people. wait until you get in return for a image of your body. the stock is down. what do college students really think of socialism and capitalism. kristina partsinevelos went to a college campus to find out. wait until you hear their answers.

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stuart: look at this. deal with the stock market first of all. that is a selloff. we're down about 1 1/2%. that translates to 360 points down for the dow industrials. now look at this. a key interest rate plunging, 2.32% is the 10-year treasury yield. that is the lowest in 18 months. that's a sign of a flight to safety. when all hell is breaking loose on the stock markets around the world, you want to go somewhere safe, especially along holiday weekend, so you buy u.s. treasurys. when you buy them, push the prices up, yield comes down. 232 is where we are now. now this, our very own kristina partsinevelos went to

nyu, asking student about capitalism and socialism. she joins us now. tell me what they said. reporter: we have a lot of young people taking to socialism. we're seeing it a lot. so i went out on the streets, the campus there to ask them why and if they really understood the context of it. listen to what they had to say. ♪ socialism, capitalism, which one? >> capitalism. >> why? >> i don't know. >> wait, socialism, socialism. >> socialism versus capitalism? socialism versus capitalism? >> you define both of them? >> socialism versus capitalism? >> i say capitalism. >> government paying for everything, you think that is good thing or bad thing? >> i think that is good thing. >> a lot of appeal for socialism. i feel a lot of european countries follow model. >> finland, norway, sweden. >> bernie believes taxing all people make money an

"medicare for all." how do you pay for something like that? >> i don't know exactly how that work out? >> you want to pay for taxes. >> you will pay for everybody? >> yeah. >> i'm willing to pay for everybody. >> i know country was founded on capitalism, a lot of ideals messed up. >> can you define socialism for me? >> no. >> can you define capitalism for me? >> no. >> both are evil to me. i believe in anarchy. >> bernie sanders says free school, free education. thoughts on that? >> i don't necessarily know if i think school should be free but it definitely needs to be a lot cheaper and more accessible. >> what does that mean? lowering tuition or providing more scholarships? >> i would say both. >> who will pay for those scholarships, who will help fund universities when they are not getting as much money?

>> [no response] >> students had various definitions of socialism. the man in the dreadlocks, he changed his name. he doesn't believe in either anarchy. they don't realize they're reaping benefits of capitalism system. he said i can't talk to much. i signed a contract for rapping. you have varying degrees, some do believe a mixed society can work but they view socialism than a different light than older generation, they don't remember the cold war, soviet union. they don't remember how it was back then. stuart: older generation looking at me? >> i'm looking at you. you're right in front of me. i'm being polite. stuart: i want to ask you, you were there with a fox microphone? >> yes i was. i didn't take it off. a liberal campus. a lot of students. surprisingly they were, many people were willing to chat. you have to be friendly. i'm not going to say anything mean. stuart: hold on a second.

capitalism versus socialism on campus. want to bring in charlie kirk. he is an expert on this. charlie you saw what kristina came back from nyu. what do you make of this? >> i wish i was surprised. so many students don't even understand what the terms mean. socialism versus capitalism. they think socialism means altruistic. stuart, isn't it so easy to be generous with other people's money. in reality capitalism liberates the individual. they think socialism means you will help other people. in reality it is the exact opposite. stuart: what surprised me actually was, look, when i was in college i was all over politics. i thought that modern students are all over politics and could easily define capitalism and socialism, have a preference. explain the point of view. that wasn't the case. i know kristina edited, that was not all of the response. >> there were some really brilliant responses as well, a little bit lengthier. some students were knowledgeable, others were not. that is expected from a younger generation.

stuart: i suppose so. i don't think they're politically sharp, charlie, that is where i'm coming from. >> exactly. what the left does so well, they prey on the lack of education of these students and their good intentions. so you heard that one student say, well, bernie wants to redistribute some. money and have "medicare for all." how will you pay for it? i don't know. that second thought process about something very consequential never actually happens. what we find at turning point usa, the work we do, the more conversations you have, the deeper you dig, the more converts towards capitalist side you're able to get. stuart: i want to break in for a second because i've got a new tweet, came into us from president trump. i will read it to you. i was extremely calm yesterday with my meeting with pelosi and schumer, knowing that they would say i was raging, which they always do, along with their partner, the fake news media. well, so many stories about the meeting used the rage narrative anyway. fake and corrupt press.

okay. well, that comes in the middle of a market selloff. it comes right in the middle of our discussion of capitalism versus socialism. i will put that on hold. kristina, great stuff. charlie, we'll get more from you in a moment. i want to continue market coverage. down 370 on the dow. we have the yield on the 10-year treasury down to 2.33%. ashley: 3.236 now. stuart: those two items are related. it's a selloff. by the way, charlie will stay with us. we want his thoughts on students getting extra time to take the s.a.t. my opinion that is the elites gaming the system. we'll have something to say about it in a moment. perhaps more importantly, jefferson city, ravaged by a tornado overnight. we're just discovering how bad the damage may be. the governor calls it catastrophic. we'll take you right there for a first-hand look after this. ♪

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stuart: we're down 376 points on the dow industrials, about 1 1/2%. 25,400, that's where we are. facebook says it has stopped paying commissions to employees who sell political ads. ashley: yeah, this was an area that they thought would show tremendous growth. but after the debacle of the 2016 presidential campaign and influence of russia, there was a big discussion within facebook. there was a section that said we should stop it all together. just not even accept political advertising anymore. apparently mr. zuckerberg, mark

zuckerberg made the final call, said, no we'll stay in the business. we'll change the way we do it. they're taking away incentives for people to sell the political ads whereas more and more is better. taking away commissions and raised basalries, look we'll still do it but we'll not get involved in it the way we did in 2016. stuart: susan, wasn't it you who said 2020 election -- susan: 3 billion. stuart: just on facebook ads, not just on facebook? susan: sorry. yes, you're right, social media advertising. also a billion spent by the trump campaign according to brad parscale, a bill. that is just on facebook from what i understand. stuart: billion here, billion there, pretty soon you're talking real money. remember that one a few years ago? another one from amazon, it is offering people, you get a 25-dollar gift card if you let them have 3d scans of your body. susan: would you want $25 back

in gift cards for come one to 3d scan wearing form fitting clothing? ashley: yes. susan: they're are a few reasons they would do it, but get a lot of data back, right. data for the health initiatives or for retail. they see what you look like, how much you weigh. you can probably pick better clothing that fits you on amazon's website. stuart: amazon story of the day. always one. ashley: or 2:00. stuart: or two. 16 billion-dollar aid package on its way to the farmers. agriculture secretary sonny perdue announced that here this morning on the fox business network. farmers are going to the white house this afternoon. we'll have one of the farmers going to the meeting. he is on the show a little bit later on. ♪ -driverless cars... -all ground personnel...

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♪ liberty. liberty. liberty. liberty. ♪ ♪ stuart: unusual harmony. i think it is played in a minor key, actually. susan: is this early? stuart: yes. i like it. okay? shall we say that? now this, we've got a very brief item on the london underground, okay? they're getting into your phone? ashley: they want to track where you're going. unless you opt out and turn off your wi-fi completely, they are only going to use it to figure out congestion, and where there is overcrowding, four or five any afternoon in the week. many stations you want to avoid on the tube in london. they are not interested in your browsing history. yeah we heard that before. they're using it to help you get

around. stuart: hold on, more important for britain is theresa may still the prime minister. ashley: we're tracking her as well. she is barely hanging on. there is speculation maybe days if not a week. stuart: if not hours i'm told. ashley: matter whether she jumps or she is pushed. put it that way. susan: get boris in. stuart: you support boris? susan: i would love to see him as prime minister. stuart: that is different whether you support him? susan: i would love to see him. stuart: you support him? susan: yes i do. stuart: he is good man. britain donald trump. ashley: born in new york city. stuart: downside move for the market. it's a selloff, down 1.3%. we were down 400 earlier. i want to bring back charlie kirk with us,e this story which we found in the "wall street journal" here it is. more youngsters from wealthy school districts are being allowed extra time on their

s.a.t.s. they have a disability. they have anxiety. they can't handle the stress. i tell you right now, charlie, this to me is the elites gaming the system and i don't like it. >> well i tend to agree. you look at the statistics in the article. in certain school districts scarsdale, new york, one in five are granted extra time. outside of boston, one in three students. i'm not trying to diminish people with learning disabilities that widespread, one out of three students, stu, the key to that is wealthy school districts, isn't it? these are parents and families want their kids go to specific tier of elite schools. isn't this parallel to the college admissions scandal recently? that parents are willing to do whatever it takes to get their students into the type of school they desire. stuart: charlie, i have to do a blanket judgment here. i think the american college campus is in a state of chaos

and crisis. the admissions scandal. s.a.t.'s extra time. safe spaces. massive student debt. of the irrelevant degrees that don't get you anywhere. this is a crisis, isn't it? >> i totally agree. it is even worse than that. the national graduation is 59%. that means 41% of the students go to college will not graduate college. that's the crisis that doesn't even get talked about. you have an entire generation of students go to college, they actually exit worse off when they came in because they have debt, if they have no degree or no certification for real world. i totally agree, stu. no one is, you're talking about it on your show, does a great job of it, generally politics both parties seem to ignore crisis happening in higher education, indoctrination, debt, lack of value from the degrees, victimhood culture happening. meanwhile professors and administrators, universities are getting wealthy and rich off the backs of our generation. stuart: you have to shake your

head at it. it is one thing after another. now you're telling me, 41% of kids who go to college do not graduate with a degree. that is a scandal in off itself. they're leaving with debt. >> that's right. stuart: they don't have a degree. they don't have the credentials, around their neck, a lot of them have. terrible stuff. charlie, thank you very much for exposing all of this for you. please come back soon. good story. >> thank you. stuart: back to the markets. selloff is still in place. story of the day, china trade, political uncertainty, both weighing heavily on the market. i want to bring in george saehy. annandale chief executive officer. where is the market going from here? if my analysis says it is a do-nothing congress, nothing gets done, not much news on china trade, if that's why we're down, tell me how far down we're going? >> we're going down further. i think it's, we had a great year so far. people gotten overly complacent.

they better batten down the hatches, get used to volatility and negativity, stuart. when you were talking to charlie, whether i can retake my s.a.t.s and get extra time. i might do better in this day and age. stuart: if you have a disability. it's a scandal. more to the point, what about people like our viewers and myself? we're long-term investors. a lot of us have done pretty well so far. should we sell? i know you're saying we're going further down, but people like me, should we sell? >> absolutely not. if you're allocation is appropriate, if you got the investments in place that you should have, if you're balanced properly between stocks and bonds, alternatives like private equity an real estate, you should do absolutely nothing. have a long-term horizon, looking way off in the future, just take the volatility. if you're more short-term, more tactical, and if you can tweak around the margins in your portfolio, you ought to be playing a little more defense. in the stock market, that means

buying stocks like at&t that yield over 6%. it is buying mlps, med stream oil and gas stocks that yield anywhere five to 10%, just playing a little more defense. be a little more cautious, being a little more careful. stuart: defense to you is a high-paying different den stock, like at&t? >> and bonds. stuart: i do have a little bit of at&t, i bought it specifically for the 6% plus dividend pay. let me talk to you about retail. would you buy any retailer? >> i would buy walmart. i'm not sure i would buy it today because it had a nice runup where it last sold off from but i would buy very few retailers. amazon is a category killer. you have to buy retailers not really affected by amazon maybe home depot although lowe's blew up yesterday. seems like we're so late in the cycle. there is so much amazon effect in that particular sector, i would be much more inclined to

look at oil and gas. oil and gas is a much-hated sector. all the green technology and climate change people are against it. people are selling oil and gas stocks. would i look at a sector much unloved like that. retail is also unloved. i feel like that the amazon threat is not fully baked into a lot of those stocks. so i would look more at oil and gas, high dividend-paying stocks, bonds, cash, playing defense. stuart: play defense from george. to sum it up, don't sell now automatically, go for dividend stocks, look at oil and gas, maybe cash and bonds. sum it up like that, george. thanks for joining us. >> thank you, stuart. stuart: new tweet from president here it is. "when democrats in congress refinish, is that what he is saying, refinish the fifth time their fake work on their very disappointing mueller report finding, they will have the time to get the real work of the

people done. move quickly" of the president is moving there to the stanoff with speaker pelosi and senator schumer. nothing is going to get done and the president does not like it. you heard it on fox business network first. $16 billion of aid to farmers is going to them to offset china tariffs. with very the president of the american farm bureau federation. i'm presume he is pleased about $16 billion. i will certainly ask him. he is on the show next. look at apple. ups cuts price target. weak demand in china. gene munster, apple watcher, joins us at the top of the hour. it is down below $180 a share. ♪

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stuart: right. we're still down just over 300 points. maybe that is a bit of a comeback because we were over 400 points down. what we've got now is 300 on the downsize. 10-year treasury yield, come on in please, 2.33%. i detect there a flight to safety where everything is happening in the market, you run into 10-year treasurys, up the price, down comes the yield. look at this please. look at oil, $58 a barrel. that's a selloff. that is a bigger selloff in stocks than anything else. ashley: it is the worst-performing sector right now, as you can see down three bucks. that is over 5%. stuart: big drop. ashley: at one point i thought we were heading higher into the 60s on oil, boom. a proxy on global economy. susan: i think it is all

connected because we do have the lowest for 10-year yield in 18 month. the dollar is at the highest in two years. stuart: really? susan: probably having impact on oil prices as well. people are taking money off the table for the long weekend. not hold too much risks with unknown factors in the market. stuart: good point. show me big techs, are they taking money off the table, at least not buying them? the answer they're all down. ashley: yeah. stuart: apple -- ashley: 179. stuart: thanks. google, 1144. amazon down nearly 30 bucks. facebook at 153. microsoft at 125. quickly financials, how are they doing? i imagine they're down today? yes, they are. all across the board. significant losses too. you're down 2% on goldman sachs. morgan, morgan stanley, citi, wells, all of them. ashley: broad-based selloff one would say. susan: financials are hurt the most. they have long term obligations. they are taking short term money. if you're making 2.33 on the

yield, that is not a lot of money, right? stuart: you're right, don't take money off the table but you don't commit money. ashley: no. stuart: the market sharply lower. oil is way down. you're getting worried because it's a long weekend coming up. ashley: yep. stuart: you take it away from stocks, away from commodities. ashley: sell a piece as you take a break. don't worry about every little headline. stuart: you might miss a tweet from the president which turns things -- i'm not suggesting that would happen. ashley: it could. stuart: always a possibility. susan: there are outlyers, l brands up 13% from what i last saw. avon up from a buyout. ashley: that is high every too. stuart: can we put l brands on the screen please? because i find this fascinating. this is the parent company of -- susan: victoria secret. you don't know? stuart: i do know, susan. victoria secret sales were down

5%. susan: yeah. stuart: what happened was,-brands runs bath & body works. susan: which do not sell bars of soap. stuart: we were discussing whether young people use a bar of soap. ashley: apparently not. susan: it is body wash. jell, foam, you name it. stuart: you get it all on this program. ashley: more than enough information. stuart: let's get serious. president trump meeting with a group of farmers later this afternoon. they're looking at 16 billion-dollar aid package to offset the damage done from china tariffs. that was announced this morning on this network. roll at that tape. >> our program is designed not to distort any planning intentions. we've been very clear to the farmers, they should plant for the market, not for any kind of government programs. stuart: yeah, but $16 billion is coming your way. fox business conducted a survey of farmers in illinois. 89% say they are being hurt by the china trade tariffs.

zippy duval with us, american farm bureau federation president. sir, welcome to the show. $16 billion, on its way to you farmers. are you happy with that? >> of course we're happy with that and what we're more happy about the president continues to stand behind his commitment to be with the farmers. farmers really want to have, get their income from the marketplace but to do that we got to get these trade wars over and finish some trade deals. stuart: i'm told, i have heard, shall we say, that this money, $16 billion, is being taken from the tariffs which we impose on china, comes to our treasury, we take $16 billion. we then buy your farm products, to make up for your lack of a market. we're then give these farm products to poor countries around the world. you get the money for your product, poor people get a cheaper product, what do you say, is that a good way of doing

this? >> i think that is one way of doing it, of course. there are other ways of doing that. but to help other people while trying to help the farmers until we get solutions to our farm, our trade issues is a good way of doing it but what we need to understand is, that is a lot of money but it doesn't come close to what our farmers potentially could make in the market if we had a trade deal with china and finished up some other deals around the world. >> do you think, this is enough money, or a big enough effort, to keep the farmers on the president's side politically? they're in a very important part of the nation, mid western farmers that is the key to the next election. can the president keep their political support? >> i think it is his way of showing commitment to stand behind the farmers i said earlier. will it keep the commitment? will depend on how quick we move to settle up some trade deals. our farmers need trade deals to be finished. we have a lot of fires burning

across the world with issues around trade tariffs. we need to finish some deals like we did with usmca we're real proud of the work this administration and president has done on usmca. we're looking forward to congress, congress finishing up the deal with it. it's a big, huge, success for our farmers. stuart: i understand, you're going to be at the meeting this afternoon, is that correct? >> that's correct, stuart. stuart: it's a two-way street here. the president will talk about what kind of help he will give you, but are you pounding the table, mr. president, get these trade deals done, is that what you're going to say? >> we'll say we need to you finish the trade deals. we appreciate you showing your commitment to stand behind us and we appreciate you -- stuart: what do you say to him? listen, mr. president, if this goes on for too long, you will lose our support, would you say that to him? >> we will say that too him. we continue to say to him all along, some of our farmers have done good to this point but

they're burning up their assets, trying to stay patient. what we need is to finish these trade deals. we're very appreciative of him standing behind us. we understand what he is trying to accomplish is very difficult. that is why our farmers want to give him the time to be able to finish the trade deals, especially with china, do it right, so it helps us years in coming. stuart: zippy duval, thanks for spending time with us on a very busy day. we appreciate you being here. >> thank you, stuart. stuart: yes, sir. tesla, that stock is on the move. it is on the upside, three dollars higher. loop ventures, gene munster, says tesla will likely miss its 2019 delivery targets as sales drop in china. gene munster will be on this program. he is coming up shortly with his view of tesla. ♪ i'm working to make each day a little sweeter.

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stuart: is this a comeback? modestly so, maybe. we were down 400. now we're down 288. we have video from that

devastating tornado that ravaged missouri's capital, state capital, jefferson city overnight. law enforcement confirmed three people have died. matt finn with us from jefferson city. pate the picture, matt. what's happening? reporter: we're off highway 54 in general suffer city, one of the hardest hit areas. the pictures speak for themselves. utility polls snapped like toothpicks, businesses destroyed, churches wrecked, trees launched into the air. people took shelter, prepared for the worst. daybreak allowed them to see reality of devastation. jefferson city police say a tornado touched down 11:40 last night. miraculously no deaths in jefferson city but authorities warn that could change. there were three deaths in nearby, golden city.

many calls were received by people trapped in their house. 20 people were transported to local hospitals. a man curled up with his mother, said i love you, and they both prepared to die together. they both survived. we're not out of the woods. there are more potential tornadoes in the forecast. we've been covering tornadoes past couple days. officials say the death toll could have been catastrophic. a lot of people were heeding warnings. there is more flooding forecasted for this area. the missouri river that runs through jefferson city is forecast to crest at 5.9 feet. that would be the highest level in 24 years. stuart. stuart: right there in jefferson city, thank you very much. let me confirm this out three deaths outside -- ashley: to the south. stuart: as i recall, couple years ago, the nearby city of joplin was utterly devastated. >> there is a tough history there no doubt in that state, that area.

stuart: they roar through the corridor. went through jefferson overnight. that is very clear. show me the big board again. we're coming back a little bit, it is not a huge recovery by any means. we're down 280, just over 1%, okay? not that bad. we had been down 400 points coming back a bit. look at tesla, that stock moved early this morning what gene munster had to say about the company. elon musk responded. we went down. then we went up. well we have gene on the show coming up shortly. >> congresswoman lauren underwood says to the acts of deaths of migrant children were intentional. at very least that is embarassment for other democrats. intentional? extraordinary stuff. a report says siri and alexa are sexist. what? we'll deal with it, because we get it all on "varney & company," couple minutes away.

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stuart: democrats have to be embarrassed. representative lauren underwood says the deaths of migrant children was intentional, repeat, intentional, and she said it directly to the acting homeland security chief, without putting too fine a point on it. she was saying you killed them. watch this. >> five kids that have died, 5,000 separated from their families. i feel like and the evidence is really clear that this is intentional. it's intentional. it's a policy choice being made on purpose by this administration and it's cruel and inhumane. stuart: that's extraordinary stuff. the gentleman on the left-hand side of the screen, that's kevin

mcaleenan, the acting homeland security guy. he was simply there asking for more money to take care of migrant children. underwood's comments were deemed so objectionable that the committee, democrat-run, the democrat-run committee, voted to strike them from the record. that's embarrassment. that did not stop democrat nanette barrigan from also saying the child deaths were intentional. senator elizabeth warren, running for president, wants quote, a full accounting from the trump administration. the implication being that by detaining children, trump is responsible for their deaths. democrats are treating any member of the trump team with absolute contempt. who could forget representative katy porter talking down to ben carson in the most condescending fashion. you do know what an r.e.o. is, don't you? dr. carson is a world renowned

brain surgeon. i bring you all of this to show what depths our politics have descended to and also the difficulty of getting anything done in a congress dominated by trump hatred. this is a financial program and we look out for your money. we would like to see some kind of infrastructure deal and a fix for the border and a budget and a spend planning but we're not going to get it as long as the democrats embarrass themselves with contempt and outrageous claims of intentional killing of children. the third hour of "varney & company" is about to begin. stuart: okay. can't resist. we will get some reaction to that editorial from mercedes schlapp at the white house. i want to know who is winning with the voters, democrats or the president? i want to know that. for now, let's check the big board. we were coming back to a loss of

less than 300 points. now we are back with a loss of just over 300 points for the dow industrials. that, by the way, is 1.25%. how about tesla. lots of news on it this morning. the stock could go to a low of maybe $36 a share, according to citi. earlier this morning, gene munster warned that tesla may miss its delivery target for the year of its cars. gene munster is with us now. gene, i've got to tell the audience that elon musk released a statement responding to you. he said they're on the verge of producing 7,000 cars a week and deliveries this quarter will top the record of 90,700. he was responding to you. what kind of response do you call that? >> i was delighted to hear it because i think despite some of our concern related to how china is going to progress this year, unrelated really to the june quarter, our comments were more about the back half of the year, i am a believer in this story,

that tesla will in fact survive to capitalize on this growth curve in evs which will be huge opportunity for the company. so my first response is actually glad to hear. i want to put musk's comments into some quick perspective. what is implied by the math is they are going to do roughly around 90,000 to 95,000 vehicles in the june quarter. now, analysts have -- and ourselves included -- think they are going to miss that target, call it 75,000 per quarter, so we are halfway through the quarter. it's not done but i think that this is most encouraging for the june quarter. the bigger risk here for the story is how demand plays out as they work through some of the pent-up demand related to model 3, because it's had a big benefit the last few quarters, and separately how the china trade dispute plays out and impacts their business. encouraged about how business is for the june quarter. i think we're not out of the woods. 2019 is going to be a choppy

year for the company but i think there are much greener pastures ahead for tesla. stuart: we will bear that in mind. quote, much greener pastures ahead for tesla. i've got that. how about big tech. they have had a rough go of it lately. most of them have been down quite significantly. is this all about china trade? is that why they're down? >> different reasons. i think like let's take apple for a minute here. that is definitely down because of some of the china trade issues. i think that there is some gross misunderstandings about how this trade plays out with china and i want to just quickly focus in on apple, and specifically as we have talked to former u.s. trade officials and have heard this message that even they don't know how this will play out but one thing that they do believe is that apple will be spared u.s. tariffs and likely will be spared tariffs from the chinese so that takes a major wild card out.

but undoubtedly, this confusion, this hysteria around the trade has had a particularly negative impact on apple which i think is unjust. stuart: it's down below $180 as we speak. again, i'm going to quote you. what's happening to apple is unjust in terms of china trade. okay. what about political gridlock here at home? we have often said since this political spat 24 hours ago that nothing's going to get done. does that factor into your analysis of technology stocks? >> well, when we think about the gridlock related to the tariffs, i think that could weigh the market more broadly. the best thing for the market would just have some certainty, even if it was very negative news, having certainty around negative news, this open-ended question as you know does not help the markets. there is the gridlock around what happens with bigger tech. whole different topic here. i think that is actually a positive for tech. i think some of these aspirations from politicians to

break up tech is a fairy tale and just, it makes good political rhetoric but doesn't make good policy sense and doesn't put the consumer in a better place. so i would view that kind of gridlock just even a little bit of tempering of some of the rhetoric as a positive for these stories. stuart: greener pastures on the horizon for tesla, it's unjust to link apple too closely with china tariffs and breaking up some big tech companies is a fairy tale. did i get it right? that was a good summary? >> you nailed it. stuart: gene, thanks very much for being with us. see you again soon. >> thank you. stuart: sure thing. check that big board again. okay. 320 points down. that's 1.25% selloff. there you are. best buy, higher sales, solid forecast, but here comes the china tariff story, the ceo of best buy says those tariffs could lead to price increases. the stock is down nearly 5%.

l brands is the parent of bath & body works and victoria's secret. sales down again at victoria's secret, off about 5%. bath & body works making money. look at the stock. 14% higher. ashley: it was just up 16%. on a day where there's a big sell-off. stuart: that can't be just about bath & body works going up sharply. can't be just that. we will figure it out for you, promise. facebook, good story. they have announced a big change in the way they deal with political ads on their site. give me the full story. liz: no more paying commissions to workers who basically sell political ads. this was a big deal at facebook. facebook's role in the last election. the "wall street journal" uncovering some really interesting detail about how deep facebook and google get into the campaign, each campaign in terms of helping them. facebook was helping, you know, both campaigns with advertising advice, how to target voters,

how to do campaign fund-raising, and google according to the "wall street journal" went even deeper. they basically did brainstorming sessions with the hillary clinton campaign and other campaigns, how to do rapid response after debates and also how to put information about the candidates higher in search results after debates. interesting revelations about how deep social media gets. this is, by the way, a $3.3 billion digital advertising market for 2020 for political campaigns. now facebook is getting out of it. it's only $284 million of their $55 billion in revenue. stuart: they have the information which a political campaign desperately needs. liz: exactly right. stuart: facebook's got the target material for you. liz: exactly right. stuart: $182 is the price on facebook stock. how about amazon? they are developing a new voice-activated wearable device. you strap it to your wrist, it can detect your emotions through your voice. not quite mind reading. voice reading, i guess it is. what cou

it's been about 24 hours since the president made a surprise appearance in the rose garden, said he can't work with the democrats while they're pushing impeachment and endless investigations. get ready for gridlock in d.c. mercedes schlapp coming up later on that.

stuart: speaker pelosi is about to speak. the podium on the left-hand side of the screen is where she will be appearing. she's going to address the media and no doubt members of her own party, and the country, and say

what's going on with this feud with president trump. i believe she's going to say, there's hints of this, she's going to say that president trump wants to be impeached. ashley: yeah, that he was in such a rage yesterday and he's unpredictable. i think what really bothers me, what bothered the president yesterday, was her use of the expression cover-up because it's such an opaque term. just using it now to cover anything that this president does, it's all a cover-up. we know the mueller report came out after all those years, all those hundreds of whatever, you know, amount of money that was spent on it and it had nothing in it. now we just use cover-up. as an umbrella term for something we don't even know. stuart: if i don't want you -- here she is. let's listen. >> we had a little longer on the floor than i had anticipated but

as we go into memorial day weekend, which is such a beautiful time for us to remember, respect and honor, we honor the service and sacrifice of our heroes in uniform and reaffirm our sacred duty to never forget those who made the ultimate sacrifice for our country, the service of our veterans reminds us of our mission to build a future worthy of their sacrifice. we do so under the oath we take to support and defend the constitution and to protect the american people. honoring that oath this week, the house passed nine bills to support veterans, protecting their health benefits, financial security and taking action to end the crisis of veterans suicide. this week, we're also passing urgently needed fix for military families facing tax hikes under

the gop tax scam. with the tax, republicans took half a billion dollars from working and middle class families and gave it to big corporations and the wealthy. half a billion dollars. it is unacceptable that surviving children of our fallen heroes who have suffered so much are now forced to pay thousands of additional dollars in taxes on their benefits. they cannot be forced to sacrifice twice. as democrats take action to protect military families, we also are hard at work to protect our workers in stark contrast to the republicans' special interest agenda. today, in the same legislation that contains the kiddie tax act, tax fix, to fix what the republicans did in their tax scam, we are passing the secure act, we are passing strong measures to help workers have a secure retirement. and yesterday, congressman's

consumer first act reversed the administration's destruction of the consumer bureau which the consumer bureau returned nearly $12 billion to 30 million seniors, service members and veterans before being gutted by the trump administration. also to honor our oath, we are hoping to have a disaster supplemental bill passed before we leave for the district work period. that was our hope, that's what we have been working on until the wee small hours of the night last night. however, we have sent legislation, bipartisan legislation passed in the house to the senate, it would be helpful for those in the disaster-stricken areas if the senate would just pass the bills and send it on to the president. we passed a bill awhile back, months ago, then in light of other disasters that occurred in the spring, we then passed another bill that expanded the areas that were affected. that's sitting over at the senate.

they could well just pass it and send it to the president. that would send such a beautiful message to those areas that are affected and continue to be affected. you can see what's happening in missouri as we gather here. what the problem is, is that the trump administration has put in conditions for border funding that are just totally unacceptable, really don't have anything to do with what we're trying to do for disaster assistance and we have not been able to find common ground. we understand our responsibility to protect our border but what they are doing is just not right. and it's important to note that in the ten years before this, not a single child died in the custody of the border. now, six children have died in the last several months. six children have died in the last several months. further honoring our oath means honoring our constitutional responsibility to conduct

oversight of the president and the trump administration. that responsibility has been resoundingly affirmed again and again, making absolutely clear that the house has a responsibility to follow the facts, uncover the truth for the american people. yesterday, deutsche bank ruling concluded and i quote, put simply, the power of congress to conduct investigations is inherent in the legislative process. and in the mazars case, that would be on monday, the judge declared there can be little doubt that congress's interest in the accuracy of the president's financial disclosures falls within the legislative sphere. but the president's priority is his personal and political interests, not the public interest. yesterday, as you know, democrats went to the white house prepared to offer the president the opportunity to launch an historic infrastructure initiative. we had met three weeks before. and it was a good positive meeting about how we build the

infrastructure of our country, roads, bridges, mass transit, broadband in rural areas and in underserved urban areas as well, water systems, both wastewater and safe clean drinking water, infrastructure for our satellites so that our technology works here. for all of these things, we were optimistic. we also were hoping for housing and school construction as a further part of the conversation. but the question is how was it paid for. and the president was going -- the plan was, as we agreed three weeks ago, the president was to present his proposals at yesterday's meeting. well, he started sending signals that he might not be ready or interested. the night before he sent us a letter to chuck schumer and to me, saying that he didn't want to do infrastructure until we do the u.s. mexico canada, that's

not the accurate -- some people call it afta nafta, some call it nafta 2.0. anyway, that trade agreement. that was a strange juxtaposition but nonetheless, the next day you know what happened. i think what happened, he says it's because of cover-up and i know that that strikes a chord with him and he's afraid of cover-up, but -- afraid of being accused of cover-up but i really think that what he knew the one court decision was getting into a territory that he did not want touched and they did not allow the mueller investigation to go into the president's personal finances. so mazar was a setback for him and he must have known the deutsche bank decision would be consistent but in any event, to inoculate against his presentation, he pulled a stunt. now, i truly believe that the president has a bag of tricks and the white house has a bag of

tricks that they save for certain occasions. they don't necessarily apply to the location but they are a distraction, which is he is a master of distraction. we will all agree on that. that's something he does well, to distract from problems that he has, he changes -- tries to change the subject. while he tried to say it's because i said cover-up, we have been saying cover-up for awhile, and our 9:00 meeting was a meeting we have anyway, so it had nothing to do with him. but i think what really got to him was these court cases and the fact that a house democratic caucus is not on a path to impeachment and that's where he wants us to be. when he saw that that was not happening, that again with the cover-up, which he understands is true, this struck a chord. it was really sad because as i said to some of you yesterday, thomas jefferson, one of, you know, our third president, had

the first infrastructure initiative. he tasked his secretary of the treasury, i said that to the secretary of the treasury yesterday after the president left the room, he tasked his secretary of the treasury to put together a big infrastructure plan to follow the lewis and clark expedition, the louisiana purchase, to build into the infrastructure of america, cumberland road, erie canal, things like that that's so important to our country in terms of commerce and mobility and the rest, and then a hundred years later, a hundred years later, teddy roosevelt, he initiated his infrastructure plan which was green, the establishment of the national park service. later in the century, president eisenhower put forth an interstate highway proposal. it was very bipartisan. the leader in the senate was lyndon johnson, in the house,

sam rayburn, and the president of the united states, a republican president, eisenhower, working together to pass that. and its purpose under president eisenhower was that it would unify america, it was a defense issue. what we are talking about now, infrastructure, the president says "i" word, i thought he was talking about infrastructure, roads, bridges, mass transit. i said some of these things already. i thought we could give him the opportunity to make an historic contribution to the safety, because it's a safety measure, it's about commerce, about safety, about mobility, product to market and the rest, it's about clean air, clean water. it's about a better future for our country, much needed, trillions of dollars in deficit in terms of low or no maintenance. it's never been partisan.

we don't want it to be partisan now. but i can only think that he wasn't up to the task of figuring out the difficult choices of how to cover the cost of the important infrastructure legislation that we had talked about three weeks before. so -- but the president again stormed out. i think first pound the table, walk out the door. what? next time, have the tv cameras in there while i have my say. that didn't work for him either. now this time, another temper tantrum again. i pray for the president of the united states. i wish that his family or his administration or his staff would have an intervention for the good of the country. yes, ma'am. reporter: would you be prepared to change your rhetoric given the political landscape,

considering the president's temperament? your comments suggest you're concerned about his well-being. >> i am. and for the well-being of the united states of america. reporter: would you be prepared to do something differently if it means getting more done, to not use phrases like cover-up or perhaps not provoke him? would you be open to that? >> you have bought into his excuse. that was not a reason that he did that yesterday. that was an excuse for him to do that. with all due respect to your honor my oath of office, nor do my colleagues in the house of representatives, to honor our oath of office to protect and defend the constitution which has a system of checks and balances, separation of power in it, and again, it's a question of the american people understanding that what he is doing is an assault on the constitution of the united states. we can walk and chew gum at the same time. i hope he can, too. reporter: you said the president

may have engaged in impeachable offenses yet today you say you are not on a path to impeachment. can you explain why you are opposed to launching an impeachment inquiry? many of your members want to do. >> let me be really clear. the president's behavior in terms of his obstruction of justice, the things that he is doing, it's very clear, it's in plain sight. it cannot be denied. ignoring subpoenas, obstruction of justice. yes, these could be impeachable offenses. but i intend not -- there are three things, you might understand it better if you remember these three things. we want to follow the facts to get the truth to the american people, with a recognition, too, that no one is above the law and three, that the president is engaged in a cover-up. and that is what my statement is.

how we deal with it is a decision that our caucus makes and our caucus is very much saying whatever we do, we need to be ready when we do it. and i do think that impeachment is a very divisive place to go in our country, and we can get the facts to the american people through our investigation. it may take us to a place that is unavoidable in terms of impeachment, or not. but we're not at that place. reporter: can you work with him? >> of course. we are dealing with a situation that is becoming more predictable, but i do think that we have a responsibility to try to find common ground. it's funny you ask that question, kacie, because yesterday i was going to start the meeting in terms of putting it in historic perspective as i have done here, but also say we are very busy people, the leaders in the congress, especially the president of the united states, i think, and a

meeting between leaders of the congress and the president is an historic meeting. this is not a casual coming together of democrats and republicans. this is an historic meeting. it's the leadership of the legislative branch, the first branch of government, and the president of the united states. so let's make it count for something. let's really make it count for something by dint of preparation, by dint of respecting each other's views, understanding we will have to yield on points to get results for the american people. but he obviously did not -- was not prepared by dint of preparation, he was not prepared so he used some excuse to go out the door. i will not take responsibility for his irresponsible behavior because we are pointing out the truth to the american people. she has a followup. reporter: kellyanne conway made a remark at the end of the

meeting, she apparently expanded -- >> i'm not going to talk about her. i responded as the speaker of the house to the president of the united states. other conversations people want to have among themselves is up to them. yes, sir. reporter: obviously you guys have a lot of major legislative issues that you need to address this summer. the secretary was talking about raising the debt ceiling, you are going to need democratic votes. how do you go back [ inaudible ] to keep the government open, you have to raise the debt ceiling and have to have democratic votes, the president is going to have to have that. >> why don't you go ask that question of the president of the united states? we have always been responsible. left to their own devices, our appropriators can always -- i'm an appropriator, forged in that culture, intelligence and proorp appropriations and in those days they were not really partisan arenas. so on disaster assistance, we could have got there left to our own devices of the appropriators

until the white house intervened. so we will have to pass the appropriations bills and we will, and hopefully we will do them in a very timely fashion. the debt ceiling will have to be lifted and that's a matter of the conversation we are having on the debt ceiling. we are not saying, as the president said, if you don't stop investigating me, if you don't stop honoring your oath of office, i can't work with you. that's basically what he's saying. maybe he wants to take a leave of absence. i don't know. but on the other hand, we understand what our responsibilities are and we are fully prepared to go forward. it really will be up to them to have some level of cooperation. reporter: -- in a better position to ask for more, though? >> we want to do what we have to do that is right for the american people, respectful of all the equities that have to be weighed. one more.

reporter: -- that the president wants on some level -- >> of course. i told you that. reporter: you explained, you also explained [ inaudible ]. >> okay. the what intervention? i thought you said statutory intervention. that would be good. article 25. troublemaker. that's a good idea. i'm glad you suggested it. i'll take it up with my caucus. not that they haven't been thinking about it. but your support will be important to them. oh, yes, there's no question. the white house is just crying out for impeachment. that's why he flipped yesterday, because he was hoping, because he was somehow or other, you all have a story that isn't real. you want to believe that there's all this unease in our caucus. that simply isn't the truth.

we have respect for the diversity of opinion in our caucus, and i say to the caucus our diversity is our strength, our unity is our power and we have unity in our caucus. so when he saw that -- see, he's saying oh, you called that meeting at 9:00. no, we have the meeting, mr. president. it's not about you. but it is about whatever is current at that time and so somehow or other, you keep perpetuating this story, i don't know why, because it isn't factual but nonetheless, that was what disappointed him because he didn't see it as rush to impeachment coming out of our caucus in our 9:00 meeting which he thought was called specifically for him. then that's up to his family and his cabinet and his staff in the white house. this is not behavior that rises

to the dignity of the office of president of the united states. but having said that, as i said, i actually ardently pray for the president. sometimes when we're talking to him, he agrees and then i said one time, who's in charge here, because you agree and then all of a sudden, something changes. what goes on there? who's in charge? and he says he's in charge and i suspect that he may be and i suspect he may be even more since yesterday because i don't think that any responsible assistant to the president of the united states would have advised him to do what he did yesterday. that's it. thank you all. stuart: well, what to make of that. that was supposed to clear the air? it did not. what stuck out to me was that

speaker pelosi questioned, it seemed to me, questioned the sanity of the president of the united states. called for an intervention, suggested he might need a leave of absence that, she was ardently praying for the president, that he flipped at yesterday's meeting. before she got to that, speaker pelosi was talking about how the president was afraid of being accused of a cover-up, that he used this cover-up expression as an excuse to end the meeting. it went downhill from there. liz: yeah, it did. the question right out of the box first was would you tone down your rhetoric in order to get a deal. she was saying the constitution protects inflammatory this is apiece of nancy pelosi calling the tax cut quote, a scam or crumbs. it's patently misleading, the rhetoric right now. stuart: askt give a clear answer but did say the president is assaulting the constitution. ashley: yes, she did. stuart: let's bring in white house director of strategic

communications, mercedes schlapp. mercedes, we have other people on the show as well but mercedes, i'm coming to you first. i'm sure you heard what speaker pelosi had to say. your reaction, please? >> well, clearly she goes and attacks the president, calls him a master of distraction, yet she herself is the master of inaction. this is the speaker of the house has made it very clear that her goal here is to focus on the politics and on impeachment and on the fact that they are not going to hone in on what needs to be done for the american people, which is not seriously talking about getting a deal on infrastructure, working on getting a vote on usmca. her goal is simply to just continue to basically put this blame on the president. it was completely disgraceful that speaker pelosi, an hour before the meeting at the white house, basically accused the

president of a crime, say there's a cover-up, then show up at the white house and expect to have a respectful dialogue with the president. the president was not going to put up with it. until they're done with these endless investigations, then we can get serious about talking about getting a deal in terms of infrastructure and trade. stuart: mercedes, what's your reaction to what speaker pelosi had to say about the president personally? i will repeat that she said he needed an intervention. that he needed a leave of absence. he has flipped. that she was praying for him. she is questioning his sanity. i want your response to that. >> yeah, i mean, that is absolutely insulting. insulting. this president has been the one, been the leader in wanting to work and solve problems here in america. he wants to work with the democrats on issues like infrastructure and border

security. it has been the democrats who have refused to come to the table time and time again to get things done. and to actually try to pretend that holier than thou nancy is basically saying that there's something wrong with the president, that is just such an insult to this president, who is beyond, i mean, one of the smartest people i have worked with, someone who is transformational, someone who has a vision for america, someone who has uplifted those forgotten americans and while the democrats and nancy pelosi play politics, this president is focused on continuing to build our economy, continuing to produce results and continuing to lead our country and be a strong leader across the world. stuart: mercedes, 30 seconds. this is a financial program. we are very interested in what kind of legislation can be passed in this congress. speaker pelosi was asked about the debt ceiling, didn't give a

proper response, i didn't hear a proper response. do you think anything will get done as things stand now? >> you know, the democrats have made it very difficult. they are actually showing their cards. we know clearly that for them, they have no willingness to move the agenda forward in terms of whether it be usmca, whether it be infrastructure. obviously we are having these negotiations on the budget, on what could happen with the debt ceiling, but at the end of the day, the political stunt that nancy pelosi has tried to pull off is failing. it's a failing political strategy. the american people are reading right through this, seeing right through this, and noting that the democrats are more worried about impeachment and investigation than they are about actually working with republicans, working with the president to solve the big issues that we have in our

country and to ensure that we are able to continue to be in a position of strength which we know is due wholly because of what president trump has been able to accomplish. stuart: mercedes schlapp, thank you very much for jumping on real fast after speaker pelosi's press conference there. we always appreciate you being with us. thank you. >> thank you so much. stuart: thank you very much. i might, before we go to dan henninger, i want to point out that that question about the debt ceiling, can anything get done, not answered by speaker pelosi than is hurting the market. when she started to speak, we were down 300. now we are down 363. i don't think the market was encouraged by what she had to say. now let's bring in dan henninger, "wall street journal" deputy editorial board guy. dan, your response to this? >> well, nancy, keep in mind nancy pelosi is the speaker of the house of representatives. while all this was focused on the personality of nancy pelosi, what you were looking at in that press conference was an

individual who is torn between the two halves of her caucus. i mean, she said we are diverse and we are unified. stuart, they are not unified. the progressive caucus just want to start impeachment proceedings against donald trump. they just have trump derangement syndrome. nonetheless, there are moderate democrats in that caucus who were elected in the midterm elections from republican seats who do not want to go down the impeachment road, who want to talk about the substance. so you were listening to a speaker at the beginning of the sentence attack the president personally and by the end of the sentence, she's talking about doing something on infrastructure. she is the one who is in the middle and torn. nancy pelosi has to make some decision about which way she wants to go and we saw no evidence there that she's willing to make a choice between the impeachment democrats and the do business with trump democrats. stuart: if i'm a democrat newly elect toed ted to the house of

representatives in 2018 and i come from a district that president trump did very well in, in 2016, how do i go back to my constituents and say look what i did? i tried to impeach the president, we investigated him up the wazoo but we didn't do anything else? that person is not in a good position for re-election. >> yeah. i think those democrats elected from places like new jersey, moderate parts of new jersey, texas, pennsylvania, they are telling nancy pelosi you are going to drive me out of office. i'm going to lose and your house majority is going to be smaller or perhaps even disappear. i have seen these moderate democrats on fox in the past several days and they have the impeachment question put directly to them, they don't want to talk about it, do they? they want to talk about other issues. that is the pressure she's under right now. donald trump was entirely entitled yesterday with her accusing him of a cover-up an hour before that meeting of saying time-out, you people have

to figure out which party you want to be. stuart: by the way, when you do find a moderate part of new jersey, i want to know about it. >> you going to move there? stuart: i will get into that later. dan, thank you very much indeed. you just heard from speaker pelosi. she did not clear the air. that is my opinion. she's questioning the sanity of the president. i heard that distinctly. bret baier, next. termites.

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stuart: all right. if you look at the big board, that is the dow jones average, you see we took another leg down after the market and investors heard what speaker pelosi had to say. we were down 300 when she started to speak. we were down about 370 by the

time she had finished. now, i want to paraphrase what speaker pelosi had to say to reporters just moments ago but instead of paraphrasing, let's go to the videotape. here's some of what she said about the president. roll it. >> maybe he wants to take a leave of absence. i don't know. stuart: okay. i've got more than that. i just don't have time to cut it. she said the president flipped, that he needs an intervention, that he needs a leave of absence. it amounted to -- liz: she's praying for him. stuart: essentially it was, i think what stood out for me, it was a personal attack on the president of the united states. personal indeed. special report host bret baier is with us now. bret, what do you think? >> well, stuart, she's definitely poking and prodding the president by saying three times that she prays for him and that she's concerned about his wellbeing and the wellbeing of the country. that's pretty specific.

she also can't have it both ways. she can't say that the house democratic caucus doesn't want to go forward with impeachment and yet many of her members do, in fact, want to go forward with impeachment and she continues to talk about impeachable possib possible -- possible impeachable offenses and saying it's a cover-up. so she would like to have impeachment without impeachment. she would like to have hearings and stirring up things that have gone over with the mueller report already and getting witnesses in and trying to ask pointed questions in a committee hearing with a camera, and then not go down the impeachment road because she knows how dangerous politically that is. stuart: has she lost control of her caucus? >> i don't know if she has. she is usually very good at herding the cats and kind of making sure everybody stays in line. perhaps the fact that they are not at the barricade calling for impeachment yet is one effort

that she's made. but i will tell you that when she comes out to this press conference and tries to list all of the things that the house democrats have passed, you know, saying that they have done all of these things, it's really not a long list, and the fact that you don't have things that pass the republican senate suggest that they have a long way to go as far as legislating. the president obviously was perturbed by the whole meeting. nancy pelosi says that it was a regular average caucus meeting. well, yes, they do meet a lot but this one had to deal with impeachment and it had to deal with what was going to happen with the president, and when she came out of it, she said he had engaged in a major cover-up. stuart: i just don't think it cleared the air. i actually think it was more provocative than that. far more provocative. bear with me, bret. i've just another another couple of bites taken from what speaker pelosi had to say, where she attacked personally the president. roll that tape, please.

>> and now this time, another temper tantrum again. i pray for the president of the united states. i wish that his family or his administration, his staff, would have an intervention for the good of the country. stuart: that really was going a long way towards suggesting the president had flipped and was questioning his sanity. >> yeah. and you know, she talked a little bit about president eisenhower and sam rayburn and lyndon johnson getting the highway project done. i know a little bit about that. i wrote a book about eisenhower. they worked very closely together and there was not animosity, there was not -- there were obviously extenuating circumstances now but there were not massive investigations, nor did they go out publicly and say stuff that was really negative towards the other person, as they are trying to negotiate. in fact, they got together upstairs in the oval residence,

in the living room, and used to have cocktails to get this across the finish line, this massive highway project. you know, you can't have one without the other. you have to have a relationship. it didn't seem from this press conference that she was interested in trying to establish that relationship. stuart: after the conclusion of that meeting yesterday and the president's press conference, on this program we concluded that nothing was going to get done in congress. after the speech by speaker pelosi moments ago, i have the same conclusion. nothing is going to get done in congress. where do you stand on that? >> i think you're probably right. i think there are some things that have to get done in order to keep the government running. there has to be an increase in the debt ceiling. nancy pelosi said that they will do their duty but she kind of didn't answer the question. so look for speed bumps along the way for keeping the government running and the funding of the government. stuart: i'm sorry to interrupt,

but usmca absolutely vital, that's on the chopping block at the moment. an infrastructure package, prescription drug prices, none of them seem likely to pass. >> you're right, stuart. i think that there's going to be building pressure on the house democratic caucus to either figure things out as far as what they want to get done legislatively or deal with the consequences of a president who is very good at taking that message to the people and on twitter, saying that they are not getting anything done. stuart: it's just fascinating. history is breaking and here we are talking about it seconds after it actually happened. i love my job, bret baier. >> as do i. as do i. stuart: see you tonight. thank you very much. appreciate it. all right. look at the big board. look at stocks. after what we just see from speaker pelosi, the market's gone down a bit more. down 360 on the dow. more "varney" after this. incomparable design makes it beautiful.

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stuart: i don't think investors liked what speaker pelosi had to say a few moments ago, because we're on another leg down.

now we're down 380, that's about 1.5%. come on in, market watcher heather zumaraga. i know you have been fairly bullish on this market ever since you started appearing on this show about a year ago. where are you now? do you think after hearing what we just heard, we can go higher from here? >> i definitely don't think that speaker pelosi's criticism of the president, that does not help the markets. that's for sure. the market's headed lower as she began critiquing the president. but the markets were initially lower this morning on global growth concerns. the data we got out of germany was horrible. they have negative rates over in the eurozone and the trade war still continues. that's why the markets are down. stuart: but you know what worries me is nothing gets done in congress, and that includes infrastructure package, usmca, prescription drug prices, the border, nothing gets done. i don't feel that's good for the market. >> no, it really isn't.

we will have complete gridlock in congress if the two sides keep picking at each other in this manner. it certainly doesn't help when you are criticizing president trump, when we are already trying to get deals passed like the china trade deal, negotiate $2 trillion on infrastructure and there is also bipartisan support on reducing prescription drug prices. that's what should be at the forefront right now of the news cycle but unfortunately, you have to cover this breaking news, what she just said. it's not good. stuart: i hate to keep this to 30 seconds, heather, but some people on this program who were formerly being bullish on the market are now saying we might see a 10% drop. what's your response to that? >> we could see a 10% drop. that's not uncommon. i think unfortunately, with the trade situation, it could get worse before it gets better. the u.s. commerce department may add some more companies other than huawei to be blacklisted from the u.s., from u.s. suppliers being able to sell to companies like huawei and other chinese companies that are

deemed a national security threat. that will put pressure on the markets but the markets desperately want a trade deal right now. that's where the focus is. stuart: thanks for being with us on a very important day. we appreciate it. believe me, we do. by the way, look at the dow, bottom right hand of the screen, now down more than 400 points. investors did not like nancy pelosi and what she had to say. more "varney" after this. . .

stuart: here to tell you that the market did not like what speaker pelosi had to say. i have to say negative politics dominates the market which is down 400 points. liz: budget deal, debt ceiling. those talks are off. this congress is running half the rate passing legislation. ashley: gridlock. no one likes anyone. china trade deal. what do you expect, market is saying -- we head into memorial day weekend.

i'm out of here. i will take cash, go take a break. stuart: price of oil is down. treasury yields also down. how about that? time's up on a very, very busy day. thank you very much for being with us, everyone. neil, it's yours. neil: stuart, thank you very much. we were listening to the pelosi remarks what got stocks selling even more than they had been before. you can't mistake it to nancy pelosi saying the house investigations may take us to a place where impeachment is unavoidable but also stressing democrats are not at that place right now but that just added another level of uncertainty, a market really doesn't care too much about uncertainties. forget about the trade kind, impeachment kind, unthinkable it might be unlikely scenario it might be with republican senate, 2/3 vote you would need there, that is the kind of leap we've taken here. we have 28 of dow 30 components,