wayside. >> they will. dagen: oh, yeah. please. >> the real test is warren. is she going to take bernie out or not? dagen: we don't have an answer for that. thank you so much. stuart, take it away. stuart: good morning to my brother, lawrence, right there. and to you, dagen. be careful. you are going to be on my show soon. good morning, everyone. we are very glad you could join us this monday. we are very happy to tell you that the big stock market rally continues. it's been spectacular. the dow is up 1170 points last week and look at that, we are going to open with another triple digit gain which will put the dow well above 26,000 again. yes, we are approaching new highs. the s&p, the nasdaq, also on a tear. more big gains at least at the opening bell this morning there. now, all of this after mexico agrees to help stop the flow of migrants, the tariffs

are suspended indefinitely although president trump did say today that if the whole deal doesn't pass mexico's legislature, tariffs may come back. by the way, the market is expecting two, maybe three rate cuts this year and that really helps the markets. we've got a big deal in the works. united tech and raytheon merging. it's an all stock deal. that will create a $100 billion giant. interesting. a huge defense company is worth just one-tenth of the trillion dollar software company known as microsoft. sign of the times, ain't it. look at this. some estimates put the crowd at close to a million. it was a protest on the streets of hong kong. they were demonstrating against beijing. it's the kind of dissent that's never seen in china. xi jinping is supposed to be going into his meeting with trump with a united front back home but those demonstrators are sending a message of dissent he does not need. clearly, no summer doldrums

here. wait until you see the stock price of beyond meat. "varney & company" is about to begin. stuart: we will start with, look at this, this is the protest in hong kong sunday. close theo a million people reportedly out there on the streets of hong kong. massive crowd protesting china's extradition bill. susan li at the new york stock exchange. you lived in hong kong for a long time. susan: yeah. stuart: that was a shock to see so many people come out on the streets. what's going on there? susan: it was shocking, because first of all, it's very hot, 80 plus, and hong kong residents usually keep quiet. they don't usually take to the streets and protest like this. this is a very strong rebuke in dissent against beijing because

residents are very concerned beijing and china continue to tighten their noose and their control over the island of hong kong. back in 1997 they were promised a level of semi-autonomy under the one country, two systems mant mantra. recent years with the abduction of billionaires from hong kong back to china, it seems that the chinese residents feel this is their last stand against when they see as something they don't want to see which is china really taking over hong kong. it's not about the extradition treaty. yes, they are concerned any hong kong residents including ex-pats could be shipped back to china on trial but this is about them expressing their level of freedom and wanting to protect their rights that they have known for many, many years. stuart: susan, thanks very much. be back to you shortly, later on. that was a shock when i saw the sheer numbers involved. want to bring in james freeman with the "wall street journal" editorial board.

i said at the opening of the show that xi jinping goes into this meeting with president trump theoretically with a united front back home, but you're not united if you've got a million people on the streets of hong kong. >> that's right. it's a good reminder the government in beijing is not a legitimate government. it is a communist dictatorship. when we talk about how we want rule of law in china, we don't want intellectual property theft. this is a message about the lack of rule of law in china. these are a million people in the streets saying we don't trust the chinese justice system. we think if we are allowed to be extradited there, we are going to be subject to detention, to arbitrary justice, to possibly torture, and as you said, a million people in the streets. this is a huge commentary. we have seen it, it's not just in hong kong. you see various voices in china. as you mentioned, often silenced with their censorship there. but for example, lots of entrepreneurs in china saying it's becoming a tougher place to do business. they want the rule of law, too.

stuart: what a situation. i never expected to see that. i know hong kong very well, lived there for quite a long time. never expected to see a million people turn out on the streets. james, stay there, please. more for you in just a moment. let's get back to money this monday morning. it's worth looking at futures because we are going to open up all over again. huge week last week and we are up well into the triple digit level this morning when that market gets going. dennis gartman joins us now. all right, havi've got a weak j report, the fed may lower interest rates and we have this no tariffs on mexico. am i missing something? is there another reason why this market is rallying? >> no, those are three good reasons and why should it not. we walked in last monday and remember, i trade only for my own account. i came in actually short last week because at that point, we had tariffs going on in effect in mexico. we didn't have yet a change in federal reserve policy and now that's all changed in the course of a week. it's been extraordinary.

as one of the great market watchers of all time, marty zweig used to say don't fought the fed, i fought the fed, i lost. fighting the fed is an ill-advised decision on my part and clearly, stock prices seem to want to go higher. i'm surprised by that fact but they do want to go up. stuart: for your own account, are you now no longer short but going long, in other words, are you now buying? >> it takes me awhile to get -- to cover so i'm still -- i still have marginal, well, short positions. i'm quietly marginally modestly net long but i still have short positions on. i have to try to get them back in. it's a matter of covering in a few more this morning and buying a few more stocks to go long. i'm marginally net long and have been for about two days. it takes me a couple days to change. i'm like an aircraft carrier. i don't change that quickly. stuart: or an oil tanker turning around. >> or an oil tanker. stuart: wait a second, am i right in saying if you look at the markets, there are some

indicators suggesting that the market expects two, maybe three rate cuts this year? is that accurate? >> that's very accurate. that's exactly what's going on. you take a look at the fed funds futures markets, they are already anticipating given no question, one, 50% probability of two, and i think 20% or 30% probability of three. remember, the fed does not lead rates. the fed follows rates. the market sets rates. the fed follows later. the market is telling you the fed is going to move rates over the course of the next six months to a year. the economic data that came out on friday would give them cover to move if not at the next fomc meeting later this month, perhaps certainly in july and almost certainly by september, a 1.5 or 2 cuts by that period of time. yes, stuart, the market is saying 2, maybe even 3. i think it will be very difficult to get a third rate cut before the end of the year. but 2 is a given at this point.

stuart: it sure looks different this monday morning compared to last monday morning. it's like day and night. >> it's like day and night. last monday morning, the world looked like it was coming to an end because of the imposition of the mexican tariffs. there was not the fed turnaround. yes, things change rather dramatically nowadays in the course of a week. it shouldn't but that's the world in which we live and have to trade. stuart: we have to start moving faster. that's a fact. mr. gartman, thanks for being with us this morning. see you again soon. that's a promise. how about this. i was watching from the sidelines. a trillion dollar market value for microsoft. unbelievable. look, i own a thin sliver of it. i was sitting back watching this thing go straight up. i never thought it would hit 132, let alone 132.80 as it is now premarket. i'll take it. here's another one. beyond meat. that stock just keeps on going. that is premarket, it's up another 10%. had a wild week last week. i think it's now triple what it went out at. ashley: i believe so. stuart: 152.

specialty drug maker filing for bankruptcy. they make fentanyl oral spray. just agreed to pay $225 million to settle a probe that they paid doctors to prescribe opioids. the stock, 53 cents a share. that's right now. shares of gamestop up a little. they are going -- they are planning to buy back 12 million shares. that helps, a 6% gain, but the stock is still right there at five bucks. democrats stumping hard in iowa except for joe biden. he wasn't there. he was at his granddaughter's graduation. james freeman back with us. i was watching some of the comments and they are so far out there to the left. every single one of them. >> yeah. it's interesting because the theory before joe biden got in was that he might be the moderate in the race but he has quickly conformed himself on those very few areas where he had a disagreement with the left wing of his party.

so you look at the gallop polling and it says there are, believe it or not, moderates and even conservatives, people who describe themselves that way in the democratic party but you certainly don't see it in the media and you don't see it among these candidates. stuart: there was no moderate voice at all. medicare for all, free college, tax hikes, the green new deal, climate change, goodness me. >> i would say so far, the only moderate in the race is someone highwa who is bumping around at about 1% which is the former congressman john delaney. founded a couple of businesses, not a lunatic on economic policy but so far, no traction for him. i think there is still, if you look at polls, they may be hard to find, they are quiet, but there is still an opening for someone who wants to speak to democratic moderates. stuart: a lunatic on economic policy. that will live forever. james, thank you. >> non-lunatic.

stuart: oh, that's complimentary. got to keep looking at futures. it's monday morning following a huge week and we are going up another triple digits. look at the nasdaq, that will be up two-thirds of one percent. what a day. better check this out, too. ford has a brand new police interceptor car based on the explorer suv. get this, it's a hybrid. we will take one on a test drive. that's in our 11:00 hour. what can that thing do? california set to become the first state to offer full health care benefits to illegals. it's going to cost close to $100 million a year. yeah. you believe that? tax payers are going to pick up the tab. lucky people. a big guest coming up later this hour. recognize that guy? he's the "jeopardy" champ. ken jennings. what did he think of james holzhauer's historic run? would he engage in a face-off, go head-to-head with him in a matchup? he's on the show so i'll ask. "varney & company" just getting

started.

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stuart: well, now, full health care benefits for illegals in california. jackie, that's a shot at president trump, isn't it? >> it absolutely is. look, in 2017, republicans repealed the act of obamacare that enforced having individual health insurance and in california, newsom and democrats at the state want to sort of go back to this idea, tax those individuals and have them pay for health care for the people who basically are low income there and don't have it. what does that constitute? it's about 90,000 low income illegal immigrants will be eligible for this. they are saying it's going to cost about $100 million as you said. i can't see how -- that seems very low in terms of what the cost could potentially be. stuart: it's just 90,000 illegals, not all illegals. >> that's what they are estimating because there is an income level threshold. yeah. stuart: okay. it's an income level. but 90,000, they think it will

cost $100 million a year. dream on. i don't see that. i just don't see it. let's get to that deal on mexico and immigration. joining us, manuel swarez majer, former chief of staff to the governor of the bank of mexico. good to see you. i know you're not happy about this deal with mexico, this agreement. spell out why you're not happy, please, sir. >> well, basically because the mexican government gave everything demanded by the u.s. governme government. stuart: hold on a second, sir. is it america's fault -- >> when obrador was candidate, when he won the election, and started governing because the pena-nieto administration was no

longer doing anything, he announced he would welcome migrants from all over the world, that this was a new policy that he would implement and that they would be welcomed and giving visas and given jobs if they wanted to stay in mexico so words have consequences and incentives from consequences. in this case, the incentive was very clear. we started getting more immigrants that before that, the flow was controlled. more immigrants not from central america but from the rest of the world, africa, asia, cuba got rid of more cubans than in the exodus you might remember. so it was the surge in immigration going through mexico was [ inaudible ]. then he realized there was a reaction against it and also the

u.s. started getting very upset and eventually, the ultimatum came first in march with the threat mr. trump was going to close the border, and later ten days ago when the tariffs were announced and -- stuart: wait a sec. if it's the fault of obrador and he started this, why is this, why is the agreement not something you are happy with? >> because the agreement forces mexico to do three things it shouldn't be doing. first, to become a police -- stuart: but what's wrong with that? i just don't see what's wrong with that. why can't you, i mean, why can't mexico protect its border? >> for the same reason the u.s. cannot protect its border. exactly the same reason. we don't have the resources,

terrain is very difficult, it's a very porous border and we don't have the wherewithal to do it. just as the u.s. is unable to control its border to limit the amount of drugs and other illegal stuff that gets through the u.s./mexico border. stuart: well, that's the deal we've got. i'm terribly sorry, sir, i'm out of time. but i'm glad you explained the background here because a lot of us didn't understand that. this is the deal and if it's accepted to mexico's legislature, this is the deal that goes through. we'll see how it works out. i'm terribly sorry to be out of time like this. maybe we will have you back at some point in the future. >> of course. stuart: thank you, sir. appreciate it. got to get back to money because it's very important this monday morning. we are going to be up 130 points on the dow after an 1100 point gain last week. this is a rally and a half. question, can you really save money by ditching your

cable and switching to streaming? we crunched the numbers for you. the results may surprise you. more "varney" after this.

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i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass. stuart: i bet you think you can save money by cutting the cord and just switching to the streaming services you like.

well, maybe you should think again. lauren simonetti crunched the numbers. where do we start with this? lauren: let's start with the cable bill. a lot of people are going to disagree with me. my argument is cable is cheaper. the average cable bill is $107. don't get mad at me if you pay more. i pay more than double that. but that's the average bill based on location and the type of service that you have for pay tv. now let me show you what it costs to stream. there are so many options. this is a crowded field. netflix, most popular option, $13 a month. hulu, $12. hbo, $15. you see, look at the new players coming. disney plus, $7. at & t, $16 or $17. if you have all of that, plus the internet, you are talking $113 a month and let's say you like sports. those season packages, whether it's the nhl or mlb, they are over $100 for the season. ashley webster has cut the cord, and he's a big sports fan. i don't know how you do that.

ashley: i can go online and get the sports package for the english premier league. stuart: you have to pay to go online. you need that connection. lauren: i would rather spend more money and have my traditional cable, not have a headache. stuart: i'm with you. i get that. i've got cable tv and i like it. $tw $207 a month. ashley: no netflix? stuart: no. ashley: you're missing out. stuart: all right, all right, change of subject. thank you very much indeed, lauren. lauren: glad you agree. stuart: look at this, we will be up about 130 points, even more in percentage terms for the nasdaq. stay there, please. we take you to the rally after this. nah. not gonna happen.

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stuart: former boston red sox star david ortiz, shot in the dominican republic. tell me more. ashley: it happened, he was leaving a bar last night, sunday night, with a couple of friends. someone approached him from behind and shot. all three were hurt. ortiz was rushed to the hospital. he underwent surgery through the evening. at first his father said that he was out of danger, no damage to his major organs but espn has been reporting that the damage was more substantial. he had his gallbladder removed,

has bleeding in the liver and is in critical but stable condition in the hospital. no idea why or what prompted this but i can tell you, they got the guy who shot him in the bar and he was beaten very badly by the people inside the bar. stuart: the other guy got away. ashley: yes. stuart: what a story. more on that coming up, i hope. let's see the market. we have now opened this monday morning, right from the get-go up 143 points. way back above the 26,000 level. that on the dow is a gain of just over half a percentage point. how about the s&p 500? that's, in the very early going, up also, precisely the same amount, about a half percentage point. i'm interested in the nasdaq. look at that. big gain there, .7% gain. we are up way across the board. how about interest rates this morning? we are at 2.12% on the ten-year treasury. where is the price of gold? we were above $1300 an ounce. we still are, but we are down 12 bucks at $1333.

big defense merger to tell you about. raytheon and united technologies. united tech is a dow component, by the way. both stocks, very nicely higher. 3% up raytheon, 2% for united tech. big day this monday morning. i need help. keith fitz is with us, scott martin's with us. jackie deangelis and ashley webster. president trump and china's xi jinping go to the g20 summit at the end of this month. keith, you say we will get a trade deal. is that part of the reason why this market is rallying so much? tell us why you think we get a deal. >> well, the questions are interconnected but yes and no. i think we will get a trade deal because the two nations need each other a lot more than we are seeing in the public. what you are seeing is posturing, classic negotiating strategy, high probability for a deal when they meet at the g20 because that's logically when these two sides are going to actually make some decisions. as far as the markets go, you've got forward looking mechanisms, mergers like this, capital on

the move, traders are saying i've got to get ahead of what happens next. if this continues, it's a change in narrative and one i have been looking for for a long time. i hope people have gone shopping like we have talked about. stuart: you think it is a factor on the market this morning, right? >> yep. stuart: okay. let me move on to scott martin. i can see how the fed is helping drive this market, how the absence of tariffs on mexico is driving the market. i can see how china trade optimism is driving the market. have i missed something? because we are up 168 right now. scott? >> the deal making is definitely on the table. yeah, i think the resolution with mexico's good. two rate cuts possibly, maybe three this year from the fed is really feeding i think risk assets. i got to disagree with keith, though. i don't think a deal is coming. june 28th is going to be a big day in american history because it's actually my birthday as well. here's the other thing. yeah. it's going to be totally ruined because they are going to come away with no deal. i think china will play the long

game with us. i think this is going to last into the fall. stuart: that will be very difficult to see, the idea they walk away with nothing. ashley: it could happen. stuart: it could happen. i think that's a stretch. ashley: there's a growing sense they will eventually get something but it's not going to be great. both will walk away with something and you will ask yourself what did we really achieve. maybe. i don't know whether the president will want to settle for that. look, the ten-year yield up to 2.12% now. wow. some money coming out of the bull market. stuart: doesn't it look so different now to what it was last monday. >> what a difference a week makes. it's dramatic. i think the mexico deal is a huge impact, is having a huge impact on the market today. i think the way president trump negotiated that, gives us a little window into how he's probably going to continue to negotiate with china. he is probably going to take a hard line which does push this to the end of the summer. stuart: we are up 174 points as we speak.

you add that to the 1170 points we went up last week and you are looking at about a 1300 point gain for the dow from last monday to this monday's opening bell. that's a real -- that's a huge rally. ashley: up to six weeks before that of real down markets week after week. stuart: let's get on the raytheon and united technologies get-together. it will create a deal of about, what, $100 billion to $120 billion. that's the value of this combined company. you know, keith, i want to bring in microsoft into this, because microsoft is worth $1 trillion. how do you explain one software company worth $1 trillion and a mega-defense company worth a tenth of that? doesn't that tell you a lot about today's economy? >> yes, it does, because you can add a line of code and contribute a couple million dollars to your top and bottom line. don't forget, microsoft is very

active in the defense community. both united technologies and raytheon are going to bring along microsoft. they are also going to bring along lots of other defense contractors, because the environment, people don't understand this who never had to work in a mission-critical environment, but you don't just pick up something and take it in like a missile or instrument. it's all integrated systems which means there are lots of other players that are going to come into play as a result of this deal. stuart: okay. let's look at the big board again because we now have a gain of about 180 points. okay. .7%. that's a huge gain. 181, up 26,000 -- ashley: just adding on to last week. well over 1,000 points up on the dow last week. it's continuing. >> you have the fed insurance policy. the market likes it. stuart: better look at gamestop. a casualty last week. we actually played organ music saying it's going to go away. well, they have agreed to buy back up to 12 million of their own shares.

our producer is saying it's a buy signal when you play the organ music. maybe so. they will buy back maybe 12 million shares of stock. it's $5.47. the dow component merck buying a biotech startup that focuses on cancer treatment. no impact on the stock. merck is actually down a little. specialty drug maker filing for bankruptcy. the stock is at 74 cents per share, down 43%. they make a fentanyl spray under the tongue for cancer pain. ashley: that's right. stuart: here is the price of oil. $54 per barrel. this is the point here. here's the price of gas this morning. are y you are down to $2.74 falling like a stone. i think that is very good news for the economy and probably for the market. am i wrong? ashley: of course not. any extra money in your pocket is a good thing. stuart: of course it's not wrong. ashley: on this issue. >> if you were wrong, we

wouldn't say it. don't worry about it. you're right, it's a good point. think about all the processing time, how much time and money they spend on sending things around the country, lower fuel prices help them as well. stuart: it's got to be. that comes down to an average price of $2.50 a gallon relatively quickly. down another quarter. i think it's coming. i'm just saying that. the chief guy at uber, dara khosrowshahi, taking charge of operations after a disappointing ipo. no impact on the stock. what's going on with this, keith? i would have thought uber should have been rising with the rest of the market. why not? >> people are beginning to realize the emperor has no clothes, like you and i talked about for a long time. this company was a train wreck for years. it's been a train wreck. it's still going to be a train wreck. it's nothing fancy. i think that millions of consumers are going to pay a terrible price. taking over at ceo for a losing proposition that can't make money in the first place, meh.

stuart: i think you're totally wrong. i would be buying uber at some point in the very near future. i want to get into a brand new industry, whether it makes money or not in the early going. i'm going to buy that thing at some point soon. ashley: you still haven't done it. haven't pulled the trigger. stuart: with all the money we made on microsoft. ashley: use a bit of that. stuart: new generation of company. quick deal here. fed ex are going to stop air shipments for packages for amazon. this is about amazon ramping up its own delivery business. fed ex doesn't want to help them. fed ex this morning is up $3.40. ashley: amazon has been expanding, buying plans. do you remember we did this story recently, encouraging people to start their own delivery business with amazon vans, you know, the amazon sign down the back, on the side of the van. bottom line is they know, fed ex knows this is a big competitor ultimately to fed ex and ups.

stuart: next case, beyond meat. look at this. this thing is still on a tear. this morning it's up 11%, $154 per share, up 15 bucks. keith, i don't think this is a bubble. what do you say? >> well, you know, i can't answer for a bubble, per se, on this particular stock. strikes me that it's gotten a little ahead of itself. you know what, this is the future of food. we have the next billion people coming on to our planet. we will have to be creative. we will have to be nutritious and we will have to be very serious about quality. so to me, this is the future and it's being signaled with all of the interest in this particular stock. stuart: this is the future of food. there's quite a statement. what do you make of that, scott? >> i love thinking about the next billion people that are coming on to the planet and we have to feed them. here's the thing. admittedly i have had the beyond burger and it's pretty good. i probably ruined it by putting bacon on top of it but i still did eat it like a burger.

it was good enough for me. i think i would buy some more. stuart: was it fake bacon? >> it was real bacon. i felt terrible. stuart: granted, the stock may have gotten ahead of itself, but the interest it generated is absolutely spectacular. >> it's good food. ashley: a billion dollar industry in the next ten years. >> people are looking for alternative options. this is sort of just the beginning, i think. stuart: fascinating. oh, look at the time. 9:40 eastern time. i'm sorry, scott and keith, got to say good-bye to you. thanks for fine work on a monday morning. look at this rally. just look at it. ashley: we are looking. stuart: got to watch this. 1,170 points last week on the dow. this morning, monday morning, we open with a gain up another 170 points. that's absolutely fascinating. what a rally. beverly hills, california, banning the sale of just about every tobacco product. don't worry, though. you can still buy legal marijuana there. take your pick. we are talking to the mayor of

beverly hills in our 11:00 hour. new allegations of corruption and lavish spending by top executives at the nra. full details on that for you coming up, too. it's been a tougher -- a rough go for the retailers. 7,600 retail jobs gone last month. ubs says 20,000 clothing stores will go by 2026. i want to know, will any stores emerge as winners? we are on it. more "varney" after this. is where people first gathered to form the stock exchangeee, which brought people together to invest in all the things that move us forward. every day, invesco combines ideas with technology,

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stuart: all right. almost the high of the morning, a gain of 180 points for the dow. right out of the box, we're at 26,160. allegations of corruption at the nra, the national rifle

association. ashley: been a lot of in-fighting at the nra, all sorts of allegations. basically 18 of the 76 board members who are not paid are apparently collecting money and have done over the last five or three years, i should say, three years, so there's questions of board oversight at the nra of the most powerful gun rights group. the allegations of exorbitant spending. don't forget, wayne lapierre, the head of the nra, accused of racking up hundreds of thousands of dollars in charges at a beverly hill clothing boutique and also foreign travel. the questions about board members being paid about 25% of the board members who are not paid are getting money in various forms. a former pro football player got $400,000 in recent years for public outreach. the nra denies all of this, says there's no overspending and we do have financial oversight. stuart: bad p.r. ashley: lots of questions being asked. bad p.r. stuart: thank you very much indeed. the retailers, man, have they had a hard time recently.

according to the latest numbers, retail layoffs exceeded hiring for the fourth month in a row. 50,000 retail layoffs since the beginning of the year. joining us now is michael zakore, retail watcher. that's what he does for a living. you like retailers who offer an experience when you go shopping there. give me an example of a successful experience retailer. >> sure. one of the companies i love today is target. target gives the user, the consumer, a deep, rich experience. they blended their online and offline capabilities, their logistics, to buy online, pick up in the store. stuart: that's not what i think of as an experience. it's just like any other retailer to me. what's the experience? >> the experience is they are digiti digitizing, giving you the experience online and offlanguagoffline. they are a traditional

retailer -- stuart: wait. wait. what is tagging in the store? what's that? you care to explain yourself? >> you can actually be tracked in the store with your phone and you can have offers and sales brought up to your phone as you are passing through. you can have products suggested for you based on your past shopping history. stuart: that true of anyone who walks in with a phone? >> if you are signed up to the target -- stuart: you have to sign up. >> that's right. stuart: give me another example of a store that offers experience. >> on the other side we have the digital native brands. like casper in mattresses. they are opening retail locations now, they are opening store locations. unlike traditional retailers, where it's a massive footprint, you are walking in, having an experience of the brand, it's about service, it's about what you are doing online. while we are seeing all these store closings and massive

layoffs, we are also seeing digital native companies open stores. stores are still important. they're not going away. they will remain 80% of retail well into the future. stuart: the department stores, they are a different kettle of fish. i'm just looking for the exit as soon as i get in one. >> they do offer an experience, and it's a horrible one. it's boring, it's uninspired. you are basically looking at shelves, everything is outdated, nothing is digitized. the department store had a great run but its time is over. stuart: everything is -- nothing is digitized. what do you mean? nothing is digitized? >> really, what we are talking about, the future of retail is digital commerce. we talked about e-commerce for a long time. e-commerce is a place you can go to buy and experience a brand. it's a destination online. digital commerce is the digitization of the entire commercial experience, the making of things, the moving of things, the selling of things, the marketing, the experience in the store, it's interactive and the key is it's personalized and

convenient through digital. stuart: but you've got to walk in with your phone plugged in or whatever it is you call it, hooked up to that particular store, then you get the digital experience. target is the leader in that? >> target is one of the leaders. stuart: i'm not quite there yet. okay. michael, thank you very much for joining us. we appreciate it. thank you, sir. >> good to be here again. stuart: now, not quite the high of the day but still a nice rally. up 160 points now, 26,144. how about that. james holzhauer, as you know, "jeopardy" streak is over but it might not be the last we see of him. fans are clamoring for a head-to-head matchup between him and former "jeopardy" champ ken jennings. well, ken jennings is on this program and he's on it next. i'm going to ask him is he ready to face off against that guy? i will ask him. he's next.

stuart: i have a vested interest in telling you about microsoft because i own some of the stock. it's up another dollar this morning at $132.44. why not. it was actually at $133 a little earlier. i'll take $132.

of course, we followed james holzhauer's rise as "jeopardy" champ until his winning streak came to an end. joining us is the "jeopardy" champion who actually won more than holzhauer. his name is ken jennings, a face you know. he's on the screen right now. ken, first of all, would you consider a face-off, directly against james holzhauer? >> people have been asking me this on twitter for the last month. they want to see the pay per view bout. honestly, i don't know if i can take the guy. i'm 15 years older than when i was on "jeopardy" but i would love to have a shot at this guy. he's the most phenomenal thing i have ever seen on "jeopardy." i could not turn that down. stuart: the pay per view revenue would be astronomical. what did you think of holzhauer's strategy? because he did have a very strong strategy for winning the game. lot of people didn't like that. what do you make of it? >> well, you know, for the home viewer, it's easier to follow if the contestants play the

categories neatly in order, but "jeopardy" contestants are not there to please the home viewer, i'm sorry to say. we are there to make m so money. it was very smart what he did, starting at the bottom, banking some cash and being able to double up. he could put the game away before the first commercial break. i really admired the confidence of playing the game with that kind of plan and that kind of theory. stuart: did you go into it, i know you didn't have the same strategy but did you go into it, into "jeopardy" because you wanted to make money, and that was your prime motivation? >> no. honestly for me, i was a huge game show fan as a kid. i loved staying home from school and watching game shows, you know. "jeopardy" was always my favorite. it was just a dream to be on the show. honestly, if you are in a situation where you can win $100,000 a night like jim holzhauer and you're not doing it, what's wrong with your brain? stuart: you got it. tell me about your new show. i know it's on the game show network. tell me about this new one. >> it's a trivia show, not quite

as serious as "jeopardy" but people can win some money. it's a quiz show where three ordinary folks are facing off against trivia experts, know-it-alls like me you may have seen on quiz shows before. they can win $10,000 but they have to go through us first. sherri sheparkansasd is the hos. stuart: have you got a favorite category, favorite subject where you feel really confident you can get it all right, and if so, which is that category? >> i'm a huge movie buff, movie nerd my whole life. i would love any movie category. or just something like what's in ken jennings' fridge, for example. i don't know if that's fair but i would love to answer those. stuart: if you come back on the show we will ask you. ken jennings, real pleasure to have you on. we want to wish you best of luck with your new show. >> thank you so much. stuart: man's good. aoc, alexandria ocasio-cortez, wants to make it easier to study

magic mushrooms and other psychedelic drugs. jackie deangelis is with us with the details. what do you know about this? >> basically there is a law that says you can't use federal funds to do anything that would legalize an illegal substance. there's been sort of this stigma, aoc says, about researching these drugs and the benefits of them for medicinal purposes. she wants to repeal that, the native americans have been using them for decades and basically to look at it and say can these help people. stuart: wonder what the political response to that is. ashley: give them away for free. keep in line with their other plans. stuart: we will leave this one alone. aoc in the psychedelic world. jackie, thank you. president trump clearly played hardball with mexico and i think he won. you would never know that if you listen to the democrats. they are all pouring cold water on the president's deal with mexico. my take, my editorial on that, coming up next. -all ground personnel...

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stuart: all right, and 10 seconds we get some important numbers on jobs called the jobs report. the number of job openings there are. jobs available which at this point are not filled. in recent readings, it has been well over 7 million jobs available. i just got the number. >> we are waiting for it. stuart: it is important to prepare. >> the desk number was almost 7 and a half million. 7.44 million which is just about where we are expecting about it. 7.44 million job openings in april, this is april pierce the one that really -- >> the very last day of april. stuart: you have that is the number available.

>> is a lack of qualified workers. stuart: and number of people unemployed. >> more jobs than people. stuart: i do not think it made that much of a difference to the markets. >> no. stuart: we want a strong market before that came out it is digested number and holding and actually moving up will now we are up 167 points, two thirds of one percent. 26,150 is where the dow is out right now and now this. president trump played high-stakes poker with mexico and won! the democrats do not know what to do. they do not want to give the president a win of any kind. especially in an honor such as an immigrant. and that is what the president just did.he is the tariff hammer to help stop the flow of migrants. so what is the democrat response to that? senator chuck schumer tweeted basically sarcasm.

this is an historic night, trump not to cut a deal to a greater reduce illegal immigration coming from mexico into the united states. now that the problem is solved, here's a sarcasm, now that the promise of them shall be will be hearing anymore about in the future. yes, that is sarcasm. it is also wishful thinking. in a face of an invasion, public opinion is shifting in america. the democrats open border policy is a loser you will be hearing a lot about it. candidate, beto o'rourke, appear to face nation to say the president achieved nothing except to jeopardize the most important trading relationship america has. the president achieved nothing? really? remember this is the candidate that if elected, he would take on any sections of the wall already built. no wonder immaturity of texas democrats want him to withdraw from the race completely. candidate senator klobuchar says he, president trump, is

becoming for interim chief. he should have a consistent strong policy that works for everyone in america. but is network president trump is actually achieving?a strong trade policy that works for everyone. and in immigration policy that limits illegals and brings in the migrants that we actually want. truth is, president trump had a great week and the democrats are floundering. mr. trump delivered a well-received and moving speech on d-day. now he has migrants on mexico he has momentum. the democrats do not. if they cared about the national interest, they should be pushing for the usmca,, they should not be talking about tariffs especially the china trade you looking promising precisely because the president uses terrace as his negotiating hammer.sit back for a moment

and what do you see? the democrats are pushing socialism and increasingly impeachment. the president does trade deals, tries to fix the borderprices - border crisis. i will tell you, the times, they are changing. second hour of varney is about to begin. i hope you heard my editorial. let's bring in kaylee sadler, director of communications for america first action packed. i know you will agree with me. you are, aren't you? >> yes i am. i thought it was a great editorial! stuart: thank you very much indeed. do you want to add to it? i think the democrat response

with the president did with mexico is really very weak. it's just noise. >> it is weak, predictable and we are there solutions? if you look at the democratic presidential candidates running, you have beto o'rourke, his proposal to take down the wall. he's proposed eliminating the citizenship test. those are what he feels like he wants open borders. senator warren who has a plan for everything but immigration. you've no solutions coming from these presidential candidates. now let's look at congress, congress can act, they have pleaded with them to act. there is a $2.8 billion proposal are supplemental emergency funds the administration has requested to go to hhs. they will run out of funds by the end of the month for beds and for facilities to place all of these migrants coming across the border. this is a humanitarian crisis. that they are refusing to solve and so the president has to rely on what tactics he has in his pocket and one of those is tariffs. so he did the expertly last week. stuart: how about this for a

suggestion? supposing the president were to invite beck senator schumer and speaker pelosi, invite them back to the white house, let's talk. a comprehensive immigration plan now that he's got his way with mexico. that would be the president leading again on the immigration issue. i mean it wouldn't be any bad idea for him to do that. >> no, and i think he's had multiple conversations with nancy pelosi and chuck schumer. the thing is with democrats right now, when they hear immigration plan or immigration solutions all their thinking is border wall. there is such a resist mode. everything they do, they feel they have to resist the president. the only thing they can agree on, the party, and the caucus is impeachment. that is we have john dean testifying today in the house. it is political antics and coming together to solve the problem.

the president has been very clear in what he would like congress to do. he would like them to change the asylum law so you don't see such fraud coming across with the asylum cases. he was to be will to change the floras act so they have more than 20 days for families while w process. there solutions is put forward to congress to hacked on which is clearly within their bounds and they're just refusing to do anything but have impeachment hearings or you know, investigations on the hill. stuart: voters are not blind. i think they are taking, notice of this. kelly, amount of time to thank you for joining us could come again. come on back on the show. [laughter] i want to go to hong kong. over the weekend, this is hong kong, this extraordinary stuff. up to a million people took to the streets to protest, they want freedom of speech. that is what they want. they really go against beijing and holding a mass demonstration of that kind. i want to bring in gordon chang, expert on the area.

very much an expert on china. welcome back to the show. >> thank you so much, stuart. stuart: i think this is a big problem for xi jinping because he's going to trade talks with president trump think he he has a united front back home. but a million in hong kong say no you don't. >> hong kong for china has never been just about hong kong. it's always been about control. they worry that hong kong is one place in the people's republic of china where people can actually express their views. and they worried about inspiration. hong kong will inspire a promise next to it which will inspire others, beijing and the rest of it. xi jinping is a control freak. he believes he should have absolute control of the communist party and communist party should have absolute control over china and hong kong is one thing that sort of says no, he doesn't have control. stuart: were you surprised? i used to live in hong kong, i

got my start in the median hong kong. i was shocked to see a million people with a population of 7 million you bring in one of 72 a street demonstration. >> i was surprised. you have to go back to april where there was a demonstrated and that the organizers thought no one would be going to end it turned out 130,000 people. that is why they called this psa. they thought they might actually people there but i did not expect a million people. stuart: another thing that xi jinping, going into trump talks, which is reported china import coming to china down eight percent. what do you make of that? >> that is declining domestic demand. stuart: they are slowing down. >> slowing down a lot! the chinese economy is 82 percent some people say maybe it is just one percent. it is not the 6.6 percent they claim for 2018 or the 6.4 percent the claim for quarter

one. you do not see people buying stuff which is wise down 8 and a half percent importance last month your idea. it's a bad story for xi jinping. he really needs a trade deal with the u.s. but he may not go up and he's been talking of the people's war against the us, very belligerent rhetoric. he has made trade and national sovereignty issue. it is a very difficult thing for him to climb down. stuart: and the g 20 meeting, the whole thing starts two weeks from today. it will be fascinating. >> i would not be as optimistic as some people are about it. because there is no preparatory work for that meeting. the meeting with steve mnuchin, the treasury secretary and the chinese central bank governor over the weekend, it did not go well from all indications. when you get donald trump and xi jinping in the same room anything can happen but they will not come up with a deal. the most they will come up with is an agreement that talks some more. stuart: careful gordon, you bring that market down. we are up 180 points.

>> i'm sorry stuart, you can blame it on me!stuart: i wouldn't do that. take you for joining us. still to come in this hour, the president calls out msnbc and cnn. let's see what howard kurtz thanks. he is on this hour. and a shareholder meeting tomorrow speaking with a tech watcher this is tesla needs a post elon musk plan. i did not know he was going anywhere. plus, big game event called e3, we will hear about the next big thing in video games. it is a huge industry.♪ ♪ [music] let me ask you something.

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close to the high of the day, up 172 points at 26,156. the rally continues. it continues with beyond meat as well. it is now $179 a share up nearly 30 percent today, it is $40 up, 30 percent higher after a whopping runoff last week and what was it again? >> 99. >> before earnings reported less this afternoon it was $99 a share. now it is $179! -- >> i know you are right. and e3, starts this week. videogame show, big deal. rob steinberg with us, game up world news entertainment. i want to go straight at this.

what is the big new thing that will come out of e3 this week? >> stuart, that is a great question and really hard to put into perspective. they are so much big stuff coming out of e3 rhinos for his huge game announcements, cyber 27 seven and the jedi phone order think the biggest conversation people having right now though is the conversation about streaming. and where streaming will be as far as streaming games goes in 2020. microsoft came out and said that. stuart: isn't it settled? the gaming industry is going to streaming period. that is not new, is it? >> absolutely! you're 100 percent correct. the real question is, who is going to be the front runner whenever it comes to the stream and competitive platform space. stuart: hold on a second, the criminal have microsoft. as i understand it they've just come out with their streaming video game deal. google has done the same thing

with their counsel. who wins between microsoft and google? can you tell us? >> that is a fantastic question, for me personally right now, i feel like google is the front runner and it is strictly because google has come up with run numbers to tell me how they streaming is going to work. they have a 35 megabit per second speed you will be able to download 4k content with 60 frames per second for $10 a month, $9.99. microsoft also said there's going to cost $9.99 as well however, there is any run numbers how the performance will go on the platform. that is what they wanted to see at the press conference yesterday. that they were not able to show us, unfortunately. stuart: okay but it's a contest between microsoft and google for the platforms. i want to get to "game of thrones". i've never seen an episode but i'm told it is very popular. they also -- [laughter] george r martin is helping create a new game i think is

called eldon ring, is it a guaranteed hit? >> i don't know if it will be a guaranteed hit but it is incredibly interesting to see him get back into the game space. and to have it come from software which is makers of the dark souls game. these are games not to be ridiculously hard. games that are very very complex and to tie the "game of thrones" lore into a gamut that something good could really be something successful or something incredibly niche for the gaming community. stuart: why is it complex? >> well, most of the soccer games have to do with very intricate combat systems. where everything you do inside of the game is very intentional. when you begin an attack yet to dedicate yourself to that attack.

it is a lot of planning that goes into how you play the game and how difficult the game is in comparison to the inputs that you're providing. i believe it fits the theme of "game of thrones" quite well by comparison. stuart: i'm just fascinated. i've never played one of these games, probably never will but is a gigantic industry. i just feel i have to cover it. captain rob, thank you for your help for covering this. >> fantastic, thank you, stuart. have a great day! stuart: mexico has agreed to take action on the southern border to help stop illegal migration to mexico and to america. will it make any difference? we'll find out with an active border patrol agent on the show. team usa placed thailand in the women's world cup tomorrow. we will take you to france for a preview. it's on fox.♪ ♪ [music] my insurance rates are probably gonna double.

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and ready for anything. only at a sleep number store, the queen sleep number 360 c2 smart bed is now only $899. plus, 0% interest for 48 months on most beds. only for a limited time. stuart: if you're just tuning in the good news is last week's rally continues this monday morning. look at that up another 168 points. well above the 26,000 level, the rally rolls on. we want to get to the women's world cup. united states team yes it will play thailand tomorrow. -- went over there just to cover the women's world cup. did you see a lot of americans walking around near the stadium where the game will be played? reporter: i did, and bonjour to you! i am in france where team usa

will kickoff their month-long world tour during tomorrow. there's a lot of buzz because they're number one in the world and defending world cup champions. they previous he won four gold medals, three world cups. after actually spoke to a midfielder, julie, about what makes the scenes of so dominant. >> the first practice you ever had, if the competitiveness, it is the fight, it is the great that you learn i think at such a young age. reporter: all right, now this is the team bus behind me. speaking of travel and to your point earlier, today or earlier that you said, a ton of americans have traveled some 3600 miles to watch the game and i spoke with one family from charlottesville call this a once-in-a-lifetime opportunity. as for the schedule, timmy also will play thailand tomorrow 3:00 p.m. eastern time.

you can catch all the action on fox, they are expected to easily win the game. things will get little more interesting when they play sweden on the 20th. stewart? stuart: thank you very much carley shimkus. watch out do not jinx it, and of the american team is strong but you know, you never know what will happen. fingers crossed. reporter: you're right about that! stuart: watch continuing coverage of the women's world cup in france on fox and fox sports one. we are covering it free. a sad story here. david ortiz former red sox star shot at a night club in his native dominican republic. chris completely random. we do not know details but he was in a bar with a couple friends just before 9:00 last night and santo domingo, and a gunman walked up behind him and shot him and his two companions. we don't know the conditions of the others but ortiz was rushed

to the hospital. he is now in stable but critical condition.his father originally said that he would be okay. none of the major organs were affected but were told he had his gallbladder removed he had bleeding in the river and the bowel but still in critical condition but stable at this hour. but again, they got the gunman but with no idea. stuart: has to be more to the story i'm sure we will find out later. michigan congressman, did not agree with president trump's terror threat on mexico. now, a deal has been reached. what does congressman upton think about it? will ask him, his initial peer to the uber top executives have left less than a week after the ipo flopped. what is going on with uber? we will ask the question and ♪ ♪ get an answer too. ♪ [music] patients that i see that complain about dry mouth,

they feel like they have to drink a lot of water. medications seem to be the number one cause for dry mouth. dry mouth can cause increased cavities, bad breath, oral irritation. i like to recommend biotene. biotene has a full array of products that replenishes the moisture in your mouth. biotene definitely works. it makes patients so much happier. stuart: well, come on a

sing-along song. new to the program what do you think? >> i am enjoying it. [laughter] i'm a fan. he. stuart: you are? [laughter] a good man. >> thank you everyone. the dow was up 167 points. look at that. two thirds of the one percent to the upside. the bottom line is the big rally of last week continues this monday morning. time to look at the tweet from president trump that came out over the weekend. here we go. watched msnbc this morning just

to see what the opposition was saying about events of the past week. lies, almost everything he said were the opposite of the truth, fake news! no wonder the ratings along with cnn are way down. hatred comcast has is amazing. i would think we better bring in howard kurtz, "mediabuzz" host. antitrust coverage is wall-to-wall and has this hurt their ratings? >> for the presidential watch msnbc it's the definition of masochism. i'm not shocked that he did not like what he saw. it is interesting to me, stuart. i think it has verbally hurt their ratings a bit but he brings the parent companies. he brings msnbc and comcast. i was disturbed when he went after cnn. he is entitled to criticize the

relentless coverage of him and that suggested there should be a consumer boycott of the parent company, at&t. i cannot imagine people giving up their cell phones whether they like cnn coverage or not. and i don't think it's something the president ought to be doing. stuart: a good point but i'm interested in the ratings. because they were flying from msnbc and cnn they were flying pretty higher expectation that robert mueller was going to end the presidency and they would take them in some way. they did well with that but i'm pretty sure that they have not exactly cratered the ratings but there sharply lower. i'm also pretty sure they show no signs of changing their editorial content whatsoever. >> no. it has become a business model for those two networks. and sure, ratings are definitely down including for some of the top prime time shows on msnbc. which had surged when their base, their viewers were excited about the notion that the president you know, it might be in serious legal

trouble once the report came out pure when it turned out that was not the case, i think a lot of people were depressed, were turned it off. it does not mean they completely and totally tanked but i think it is harder to get numbers up when the news is not particularly pleasing to your audience. stuart: what is your judgment, howard, went two all-news networks carry one single editorial message? which is, resist trump for everything and get him out. i mean -- you are a media guy. you cannot be that pleased at two major networks going so consistently down that opinion road. >> i would not go quite that far. i think there are some fair reporters at both networks but certainly, we turn the prime time shows it's getting increasingly hard during the day , they all seem to be opinion shows. yet these panels that are six to one antitrust this the way there being program. meanwhile as you know, the

president also repeatedly now going at the new york times for the coverage of the migrant deal and tariff deal with mexico. stories have not been that bad but the times is saying that the central element of the deal were agreed to a month ago and the president doesn't like that. so he's burning just beyond the two networks to include his least favorite newspaper. stuart: and i'm not surprised! thank you, howard. i'm surprised you haven't gone after the "washington post" a bit more. >> wait until tomorrow! [laughter] stuart: i will! now let's talk about the annual shareholder meeting tomorrow. stock is up four and half percent today. $213 a share. jeremy owens, marketwatch technology editor, come on in, please.>> thank you for having me. stuart: would they be better without elon musk? >> will be hard for native plan for post-elon musk. they need another person in there if there were no elon

musk. they have done nothing to establish any procedures to live without elon. i do not know if tesla will be better without elon. right now everyone sees as elon is tesla and tesla is elon. reality is you have to confront the reality there will be a company on the other side of elon and start setting up for that. stuart: but there is no prospect of elon getting out of the way tesla at all. >> nobody could go on twitter tomorrow and mess it all up. he's been bitter about the sec settlement but last summer he came very close to a couple of times getting the boot. from the sec. now what will you do about it? how we set this up?stuart: does the sec have the power to say you are out?>> of course! they can ban him from being chief executive. in his already overstepped the line once. and made them angry again a second time. you kind of have to plan for that. but also, should be establishing a company that can

run without one person. if the entire company is pegged to one persons ability, then elon could get hit by a bus tomorrow, right? what we do if that happens? you can trust autopilot just a little too much. but we do if that happens? you have to establish policies and procedures to make it work. stuart: okay. let's talk about uber. two top executives are out, a big shakeup in the executive suite. and this is less than a month after the ipo. and still trading below the ipo price 45. why the shakeup? what is wrong with uber? >> who knows! right? we're just having this discussion about a year ago by the same company needing to get these executives just like we talked about with uber.

needing to get a coo, needy people in there, some adults in the room to really help run the company. they did that and then they go public and now those are gone. what do you do at this point? do you bring in new executives? again, it is coming down to just taking control. the ceo has come in there and he says it is on me now. i'm ready to go, i'm ready to run this place. but we need other people in there, you need this type of executives focused on very specific things. operations and marketing are the two that uber get rid of at this point. those are things very important to this company and is dara just going to take over all of that? it's a lot to put one person. and just one person instead of putting together a company that runs on its own. stuart: a cake of the founder of uber. he is gone for bad behavior. whatever the reason was, he is gone. arguably, you cannot replace him. just like it is very hard to replace elon musk at tesla. >> right, exactly. we are seeing that uber is what tesla needs to look at. what do you do beforehand to

set up for that where there was bad behavior and he got the boot. you have to have something planned for the didn't celebrate a new ceo he was whispering in a new layer below that but he did and i'm taking control. so tesla needs to be learning from what is happening out uber right now. so you do not have the next guy trying to set things up where elon leaves the sky above comes in and says at least their stuff settled and ready below me. stuart: germany, we hear you. thank you very much, sir. thank you. >> thank you. stuart: microsoft, stocks doing remarkably well. i'm very pleased to say but there is a sidebar story here. beyond stock price for this but that the entire facial recognition database. why do they do that?

>> the president says is action potential for abuse. which is an interesting advantage point to take on this. basically the database was created by all of the images that are out there on the internet. it's really a lot of was considered celebrities. people whose likenesses out there and readily accessible. the feeling is that by taking the photographs, reading the database, you can argue that there are violations of peoples rights. microsoft is scaling back and saying, we need to as the technology developed we need to take a step back and really look at what we do with it, with the value is and if it violates peoples security. stuart: it is getting right out front of a potential problem. >> right.stuart: what, 10 million images they just got rid of? >> exactly and i think it gives confidence to people that microsoft is trying to do the right thing here because some of the people are worried about this. we were discussing what goes on with the phone. stuart: fascinating and the stock is up very nicely, thank you very much! [laughter] now that mexico has agreed to help prevent the flow of migrants to the u.s. , release

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and strengthen the bonds you share. it's only $59. give it to dad for father's day. stuart: steady she goes. we've been at this level virtually all morning. that is up 170 points, the best part of two thirds of one percent. the dow is now at 26,150. the bottom line is last week's

big rally rolls on this monday morning. just look at that! president trump announces a trade deal with mexico. suspended tariffs, that really helps the market. he says mexico is taking steps to curb illegal migration at its southern border. brandon -- is with this active border patrol agent in america. welcome to the program. >> thanks for having me. stuart: the mexican city will reorganize on their southern border, will that work? >> it will. stuart: it will? >> yes. go back to 2004. we've seen the mexican government be involved when they sent troops to the border it's almost like a light switch. in southeastern arizona where i worked, when the mexican government put troops on the border, we went for branding 365 people per day down to around 80 per day. that is a huge drop and we can expect to see that if the mexican government falls through. that is a big question. will they follow through? stuart: it is sort of an approach if they do not follow

through, if the flow continues, tariffs go back on.the president said that this morning. >> is just what the got them to the table in the first place. new york times sameness was struck months ago but there was nothing in writing, there was nothing there. president trump and the tariff that would've been economically crippling to mexico. mexico immediately responded by sending a delegation to the united states. now we have a written agreement. that is exactly what we expected to see. when you look at the liberal left media that are saying, it is smoke and mirrors, disagreement was already in placement -- this agreement was already placed but no it was not. stuart: they will reorganize the border force, 6000 is that additional?>> yes, 6000 additional. for my understanding is 6000 additional troops there sending to their southern border. stuart: and you would expect to see a serious influence on the number of migrants coming to

america very quickly. i know it will be a serious influence on the number. stuart: what about caravans? is that going to stop? >> what we are expecting to see is, people are not allowed to enter mexico for the sole purpose of coming up to the united states to violate our laws. what they're doing is saying they will enforce their immigration laws. they will force people to come in and actually petition for a visa to come into mexico. that visa will require them to have reason to be there. not just to come up to the united states and violate our laws. that's why we will see a huge drop. stuart: is it possible to police that vast southern border and effective way? >> it is possible. just like we police ourselves border. their southern border is a lot smaller than what ours is. and it will be a lot easier to police. so yeah, again, we are seeing the effect of the president putting the pressure on the mexican government and it will

pay dividends. stuart: if it works, if it pay the dividends you're talking about, it is a huge win on immigration.>> absolutely! stuart: it is great to have you on the show, brandon. >>thank you. stuart: especially in new york city. come again . >> thank you. stuart: vietnam will crackdown on chinese goods illegally relabeled, made in vietnam. i met jackie, does this have something to do with tariffs? >> it has everything to do with tariffs. if you're bringing things into the country made in china they will be subject to terrorist it was happening now is this misidentification. they were made in vietnam, it is false obviously but they will not be subject to the tariffs. vietnam say they will try to take action and do something about this. we think about this you think counterfeit goods. it is everything from textiles, seafood, agricultural products, honey, steel, iron, a lot of different things. stuart: relabeling to get

around the tariffs.>> where there is a will there is a way. stuart: thank you. as you just heard, the president tariffs threats on mexico work in the sense that mexicans have agreed to strengthen their southern border. michigan congressman fred upton did not agree with tariffs on mexico in the first place. what does he think now that they are working? he is on the show next. also ahead, what's up with the city of beverly hills banning the sale of nearly all tobacco products? with the mayor of beverly hills on the program today to try ♪ ♪ and explain. ♪ [music] ♪

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more, now at 180 points on the dow, 26,163. this is a rally and a rally all across the board. united states and mexico reach a trade agreement. that really helping the market this morning. our next guest though, disagreed with president trump's proposed tariffs on mexico. the michigan congressman, fred upton is with us now. congressman, mexico terror

threat, it actually worked! we got a deal. what do you say about it now? >> i think we are all glad we got a deal because the last thing we wanted was a tariff leading up to 24 percent -- literally in the next couple of months. on 70 products across the border back and forth. auto, agriculture, we would be truly impacted. if we do have a crisis on the border, many people are acknowledging that certainly on the republican side. but the good news is that they got lifted on friday and you look at the market up 180 points already this morning, proof is in the pudding. we're glad they did not take effect and we can all have a sigh of relief and move forward. stuart: now we have the thought of tariffs on china. it worked with mexico. if the negotiating with china,

what do you say that? do oppose this on china as well? >> no, let's hope that that that of tariffs on china works so we can get an agreement. a lot of negotiations have taken place in secret. we know that we had to see a number of changes from china from our point of view regarding china. the third of the tariff, talks broke down. i know that the president and the chinese will meet at the g 20 later this month. let's hope the thought of the tariffs brings people back together so we can get an accord rather than -- stuart: it doesn't help the negotiating position if members of his own party are urging him against tariffs. virtually the entire business community is urging him against tariffs. >> well, and you will remember from the published reports earlier last week, it was the senate majority, republican, mitch mcconnell and others, that thought there would be enough votes to override a veto had they continued to go down

that same path. a good number of republicans, probably majority i think in both the house and senate, would have opposed the mexican tariffs had they been put into place. we are glad that they were not. the threat of them, we are seeing some immediate concessions i hope by the mexican government in terms of where we are. let's hope that they work. and that they are on board. now the third of tariffs with china, hopefully, will bring an accord to better our hand as we deal with them in the future. stuart: i have to ask you, congressman from michigan, have to ask about this. the white house is going to go ahead and scale back mileage standards. despite a letter from the automakers urging them not to do that. you are from michigan, where do you stand on corporate fuel efficiency standards for cars? >> well what better mileage standards. a number of years ago we, the auto companies agreed to be 54

miles per gallon on average, the corporate fleet, by 2024. i think as we look at california now we want some common sense standards that we know what the rules are going to be, how we can manage and make sure that we get increased mileage standards and really have one standard for the nation versus a couple of different state standards. a lot of discussions will take place in the weeks ahead. and let's hope we can come up with a common sense standard. stuart: well, i just like the car companies to make the cars they want to make but i guess i am out of step with most people. >> no, that is exactly right. and you know, particularly as we look more to the advancement of electric vehicles, that is where clearly the auto industry is heading. and i think that is a good thing. stuart: let's help them! congressman fred upton, thank you for joining us. >> thank you.

stuart: coming up, an estimated a million people posttest in hongkong . i said it puts pressure on both -- a million protest in hong kong. my take on that is next. it's a competition for the talent. employees need more than just a paycheck. you definitely want to take advantage of all the benefits you can get. 2/3 of employees said that the workplace is an important source for personal savings and protection solutions. the workplace should be a source of financial security. keeping your people happy is what keeps your people. that's financial wellness. put your employees on a path to financial wellness with prudential.

stuart: hong kong is part of china. it has seven million people. one million of them just turned out in opposition to china. they were sending beijing a rare message of dissent. don't stifle free speech here. agents from beijing have been seizing dissidents on hong kong's streets. that did not go down well. knock it off is what they're saying. in their fight with america, the chinese side has gone all out to show a united front. but a million people taking to the streets, that unity looks a little frayed. true, the issue that brought out the demonstrators in hong kong was largely local but it's a factor in the big picture

dispute with china as well. the title of these protests is not good for beijing. two weeks from today, the g20 meeting in japan kicks off. u.s./china trade is by far the most important issue on the table. president trump goes into his meeting with china's leader under great pressure from all sides, make a deal. american businesses clamoring for any kind of agreement that halts the tariff wars and politically, the last thing the president wants is a slowdown for the economy as the election looms. it was assumed xi jinping was immune from serious opposition back home. he's a strong man, an authoritarian. the party's apparatus keeps close tabs on everyone. dissent is squashed. but a million people, dissented on the streets of hong kong sunday and the whole world was watching. sum it up. i find it hard to believe that two weeks from now, there will be no china trade deal at all, given the pressure on both

sides, it's hard to see a complete breakdown. they may not know it but the people of hong kong just played their own card, too. the third hour of "varney & company" is about to begin. stuart: better check that market, because it's a monday morning and the rally, a big rally continues. last week we were up 1170 points. this morning, up another 170. that is a rally, ladies and gentlemen. still watching that ten-year treasury yield. right now, we're at 2.13%, up a fraction over the weekend, but nothing to talk about. that's still historically a very low rate. let's get some reaction to my editorial. ron carson of the carson group is with us now. ron, i'm sure you heard what i've got to say but i will repeat it. i think those protesters in hong kong are giving us, america, a

little breathing room, because quite clearly, xi jinping does not have a unified front back home. what do you say? >> yeah, i think it gets tricky, though. i was in hong kong in '97 right before the handover to china, and they are fiercely independent. i think china and the protests are -- i think in a lot of ways it could help trade because if they can be tough there, it shows that china doesn't want to be perceived worldwide as a patsy. they are a very prideful country. but ultimately, this trade deal i believe in what trump is doing, we have to claw back some of the benefit, it is ultimately going to get done. it needs to get done. so far, of all the companies that have reported earnings, tariffs and trade have been mentioned 117 times and it's definitely slowing things down right now. stuart: i think i would be

extremely surprised if two weeks from today, they are all meeting at the g20 summit, president xi meets president trump and there's absolutely nothing to show for it. i would be very surprised at that. how about you? >> i agree. no, i agree. we both have a lot at stake. last night there were some numbers out that showed that this isn't hurting china maybe as bad as we thought, maybe hurting the u.s. a little more. politically there's going to be a lot of pressure. we have the elections coming up in the u.s., you have china politics, there's a lot of pressure there. ultimately, the world wants to see the u.s. and china get along because the whole world has a vested interest that we have free trade because it benefits everyone. so it's going to happen. it's about time that we took a stand and said hey, the u.s. isn't going to continually give without getting anything in return. and i think this is going to set us up for a pretty good run in the long term. i mean, you have the fed coming out saying hey, we're going to

give you a floor on the market, we will be there if the market starts to sell off, so that's comforting the market. we get this trade thing done, 1 think buffett said it weh interest rates as low as they are, this market could get a nice little run.e little run right now, haven't we. i mean, from last monday to now, i'm trying to do the math here, we are up about 1200, almost 1300 points on the dow industrials. that is one fantastic run. where do you think it's going, ron? >> it is a fantastic run. i'll tell you, though, there is a concern. we saw an inverted yield curve. we have the three-month higher than the ten-year and the market is still seeing a lot of economic weakness out there and there is a real chance for a recession. we are not in that camp. i think you could see the market trade -- buffett is right, i mean, with interest rates where

they're at today, if they were to stay there, the market's dramatically undervalued. earnings will grow if we start getting some traction again, with confidence, get the trade behind us, the market could be up nicely into the end of the year. i think you will see a lot of volatility this summer, some good traction this fall. stuart: i know that you like electronic arts video game publishers. i know you like them. make your case. >> well, they got hit hard when fortnite came out and had the free-to-play business model. however, they are having -- electronic arts is benefiting from the fact they are focused on sports gaming, faster internet speeds are definitely helping that and there has been a generational shift, unfortunately, that kids would rather sit around playing games all the time and quite frankly, lots of adults. i wish they would be outside getting some real activity. we think there's a bright future

for electronic arts and the fact that they are up so far this year, but over the last 12 months, they are down on that news. we think it's a good entry point. stuart: you are getting, you know, displaying your generation there, ron. wish adults would get outside and get some more exercise. where you been. ron carson, thank you very much for joining us, sir. we will follow it closely. thank you. >> thank you. stuart: have a look at microsoft again, please. i think we are still at about, what, $133, something like that. they are planning to test -- i'm a happy guy, very happy guy -- they're going to test their new video game streaming project in october. they say users can stream any xbox one game to a mobile device. in that industry that is a very big deal, apparently. the stock is doing well, too. look at that, $133.51, up two bucks today. never saw that coming. i just didn't see that coming. couldn't believe it. don't jinx it. be quiet.

the announcement comes days after google said it will launch its own video game streaming service in november. you have two giants going at it. both stocks up very big. california is going to become the first state in the country to offer full health care benefits to illegal immigrants. it's going to cost $100 million a year. that is the current estimate, by the way. taxpayers will be picking up the tab. beverly hills, california, the first place to ban officially the sale of tobacco. local businesses not happy. they want to make some money. city officials say the health benefits outweigh the financial benefits. we are talking to the beverly hills mayor shortly. sorry. i will be okay. we are heading to the white house, too, talking with mercedes schlapp. i want to know how they are going to enforce this deal with mexico. stay with us. the third hour of "varney & company" rolls on.

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stuart: check the box office numbers from the weekend, please. "dark phoenix" that is part of the xmen franchise, had the worst opening in xmen history. brought in $140 million globally, just $33 million in the states. that's compared to xmen days of future past which brought in $263 million in its opening weekend. not so good for this one. "the secret life of pets 2" debuted at number one in ticket sales in america, $47 million. that, too, is well short of expectations. not bringing in quite as much money at the box office as they used to. big tech companies facing antitrust investigations on the

federal level. now also on the state level. attorney generals from at least a dozen states gearing up for an antitrust assault. facebook, google, amazon, in the crosshairs. jeffrey landry is attorney general for the state of louisiana and joins us now. what exactly -- are you just going after them for the money? that's a pejorative question, i know, but attorneys general went after big tobacco, they wanted the money, they got the money. you going after big tech for the same reason? you want the money? >> no, not at all, stuart. look, when attorney generals went after big tobacco, the money was part of the health care costs that the activity that big tobacco was engaged in. so this is a completely different issue. you know, all attorney generals across all 50 states have a responsibility in the consumer protection realm and also in antitrust realm as well. we have been sounding the alarm

for quite some time now, concerned about the way that big tech is using personal data, that they are taking off of consumers and manipulating that data and how that is affecting now what's considered the virtual marketplace. we are going to be traveling to omaha this week to discuss those issues with the federal trade commission. it was part of an open panel that we were going to have several months ago that got canceled. it's been rescheduled, so we head to omaha this week to have that discussion with the federal trade commission. stuart: where are you heading this thing? do you want to break them up, or do you want to levy heavy fines because of playing fast and loose with privacy? what's your end game here? >> i think the end game is to ensure that the consumer out there understands how the information that google and some of these platforms are taking from them and whether or not the consumer is getting a good deal.

look, we have said that all options are on the table. certainly if as we work through these meetings, a breakup is the only way to get the consumer the best deal, then maybe that's where it needs to be. stuart: consumers seem very happy with facebook and google. i don't see many people dropping facebook, i don't see that. i don't see many people objecting to the company and its business model. >> that's because they got nowhere else to go, stuart. that's the problem. look, i have consistently said let's just take google, you know, take each of them in separate increments. let's take google first. as a consumer, i have an expectation that when i keyword in a search, that i get what i'm looking for and that i'm not manipulated or driven to something that i'm not looking for. i have used in example a number of times, looking for a simple dog bed, a search of that told me the first two pages that i got to said that the dog bed

cover was out of stock. when i got to the third page, i found it so my search did not result in what i was looking for directly, yet steered me to want to buy the entire bed again. again, those are things that we're looking at. we are also looking at the way that google manipulates the ad market and drives the ad costs for publishers up to a point where they are reaping all the profits and the publishers are going out of business. again, you're not hearing it from the consumer because the consumer has nowhere else to go. they are trapped in a google world or a facebook world. stuart: looks to me like this is a very long drawn-out process. by the time you have held all these meetings at the state level, and the feds get their act together, you're not going to bring any kind of real serious effort against facebook, google or amazon for a period of years. it's going to be that long, surely. >> i disagree with that. look, we have been having these

conversations for almost a year now and i think we are finally getting to the point where you could see litigation take place. i mean, we finally got the u.s. department of justice to the table. that was a huge deal. having them at the table gives us the leverage to move forward. we are going to try to do the same with the ftc this week as well. stuart: okay. jeffrey landrieu, thank you very much for being on the show today. we appreciate it. thank you, sir. >> thank you. stuart: check a couple of stocks, going to look at them. first look at the auto makers. they want the white house to keep those higher gas mileage standards. they want them to keep them in place. the white house says no, no, no, no, we are going to fight to lower them. all the auto stocks are up today. i think that's got a lot to do with the no sanctions, no tariffs on mexico. that's what the market is responding to, not the fuel efficiency standards. big leadership shakeup at uber. two top executives out.

the ceo is going to pick up their slack, he said in an e-mail to employees. all department heads will now report directly to him. some kind of trouble in the executive suite at uber, that's for sure. the stock is down in an otherwise huge up market. got to be an explanation for that. check out bentley, teaming up with a boat builder to design a super yacht. it is 108 feet long. the price is $12 million. i have seen bigger than that. ford unveiling new versions of its bestselling police interceptor line. it's a hybrid. we will take you for a test ride. not me, but gary. in the new police cruiser. after this. hmm. exactly.

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stuart: the price of oil today is $54 a barrel. okay. now more relevant to everyday life, check the price of gasoline. look at this. we are all the way down to $2.74. that is the national average, down six cent is in the past we and falling very sharply. i will make a prediction for you. by midsummer, the national average will be $2.50 a gallon.

ashley: you're on. jackie: that's remarkable if it gets to that level. stuart: it would be great. speaking of gas prices, let's get a preview of ford's new police interceptor. gary gastelu tearing up the parking lot at metlife stadium with it as we speak. gary, what makes this police interceptor special? reporter: hello. let me get into police mode here. this is the new ford police interceptor utility hybrid, based on the new ford explorer hybrid that's going on sale next month. it's a combination of fuel efficiency and power and it just started raining so it is a little slippery. this thing handles pretty well. 318 horsepower, 24 miles per hour and as far as police departments are concerned, one of the great things about this is when you are parked on the side of the road doing work, the engine doesn't have to run. the battery is strong enough to run the lights and sirens and computers and of course, the radar gun. this is going to be the new standard for police cars.

it starts at $41,000. to have one that's a non-hybrid. they also have a turbocharged model that is the fastest police car you can buy now, even quicker than the other brands, sedans. ford owns 50% of the market with just this car alone and overall, ford sells 68% of the police vehicles that are sold each year. they are looking to keep that even as they move away from cars. no more ford taurus police cars. production is over. they will be replaced with this as well. but officers have already been moving over to the explorer based utility and ford has high hopes for this. again, you will be able to buy one just like it in the coming months. stuart: it looks like it's got more muscle than the taurus for a police car. you are a reckless driver there. you are allowed to do that in a police car in a parking lot at metlife stadium, i guess. are you the king of distracted drivers at this moment, trying to do a tv report as well?

i'm sure you are. reporter: a few cameras in the car and trying to talk to you. stuart: don't try texting, either. gary, thank you very much indeed. i like the look of that car. sharp police car. dow still up 170 points. it's been there all morning. very solid rally on wall street. reporting that for you. then there's this. harborside, you may not know the name, but they sell the first legal marijuana in california. today they are going public in canada. are they coming to the u.s. stock market soon? are they? if so, why? by the way, alexandria ocasio-cortez wants to legalize pot and magic mushrooms. i don't know about legalize. she wants research into magic mushrooms. california getting ready to offer full health care benefits to illegal immigrants. they are the first state to do this. the taxpayers will be paying. lucky people. listen to this. illegals are also allowed to board a commercial flight

without identification. we are giving you those details next. first, though, the market is still up very nicely, thank you. 178 points up now. 26,161. so chantix can help you quit slow turkey.rkey. along with support, chantix is proven to help you quit. with chantix you can keep smoking at first and ease into quitting. chantix reduces the urge so when the day arrives, you'll be more ready to kiss cigarettes goodbye. when you try to quit smoking,

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stuart: it's been like this for two hours. the market went straight up at the opening bell and stayed at a very high level. it's staying with a gain of 170 points, two-thirds of one percent, 26,158. how about that. a big rally this morning after a whopping great big rally last week. i want to bring in market watcher brian belski, bmo chief investment strategist. you say the bull rally is alive and well. obviously it's alive and well. it was up 1100 points last week, 180 now. do you mean to tell me it's going much higher from here? >> you know the notion, don't let the facts get in the way of a good story? like don't let the story get in the way of the facts. so many people are bearish, right? so many people that do what i do are trying to time the market. how much have you heard the last

week don't crotrust the rally. know why? because they missed the rally. that's why they're saying that. they were so negative to start the year that they just can't believe that u.s. stocks are the best place to be, period. there is so much volatility from a fundamental perspective in emerging markets, in china, in europe. we continue to believe assets are going to come back here just because of the fundamental stability. we seem to have forgotten, i feel like i'm saying this all the time, the u.s. is the world's largest economy and china needs us more than we need china. that's the theme. resoundingly negative attitude with respect to the tariffs in china, most investors are like it's not going to happen, not going to happen, we're not going to get a bill. now we totally switched to think this is a waiting game. i think most people are going to be very, very surprised. stuart: you think this market -- oh, you think there will be a trade deal? >> of course there's going to be a trade deal. stuart: there's no way around it. >> there's no way around it. stuart: because the political and economic pressure on both sides means if you don't get a deal, that would be just terrible. >> tell me if you heard this

theme. over the last month or so now, it seems the street in consensus believe they go back to the typical traditional way of thinking, meaning war of attrition, we can go on forever, china can hang on for a long time. that's the current theme. that's wrong, that's wrong, because the world is watching china, okay. even though it's a closed communist country, there are still cameras there, there is still news, they cannot continue to do what they're doing with respect to holding things down. they have to open things up. they can't weaken their currency. they are in trouble from a demographic and economic perspective that most people aren't seeing that. america really has the best, has the heads up on this now. stuart: where are we going? the dow is at 26,160, roughly that level. where are we going? >> we still think stocks will be up mid double digits this year. decent earnings growth. i still think this is year number one of at least a two to three year period of goldilocks. i have been doing this almost 30 years, as you know, or in my

30th year doing this. when i walk into accounts, i try to explain to these people that have been in the business less than ten years, they don't know what a goldilocks economy or goldilocks stock market is. we are in it right now. we believe assets are coming back. the interest rate scenario is still in a positive mantra and good old-fashioned stock picking, noticing and really realizing that the stock market is a market of stocks. stop trying to think about quantitative versus macro versus value versus growth. buy good companies and stick with your process and discipline and you will win. stuart: you can understand the anxiety. we have had for ten years, the market's gone up. i remember the low of march 2008. it's now 11 years on or no -- >> march 2009. a decade in. stuart: we are a decade in. i have been doing this for 40 odd years. i'm a little older than you. i don't remember a ten-year bull run with folks like you saying it's going on for another couple of years. >> we think we are in a 20 to

25-year bull market. that's been our call since 2009. number one. number two, if you take a look at bull markets since 1940, there have been 15 bull markets. we rank as number 13 in terms of the compounded annual growth rate of that bull market. this is not an extended bull market in terms of annual rate of return. this is the most hated bull market in history. our children's children will be studying this market trying to figure out why did it go the way that it went, because we are so academic in our thinking, we always default to what happened the last time around. we are not going to have a consumer recession. we are not going to have a credit recession. we always think about what happened last time and we are still driving our investments with fear. stuart: okay. here's one thing that could upset your theory. president trump loses in 2020, a socialist wins. don't tell me you think the bull run will continue. >> i think the return structure will be different. i think that you need -- america is the world of opportunity, the land of opportunity. the business of america is business. what got us going to a different

trajectory was the new platform in terms of less regulation, less taxes. we continue to need that to continue on this trajectory. the bull market's not going to die but it will slow down. stuart: slow down. that's all? think of a socialist in the white house, it slows down? >> think about this. for the last three years we have had more outflows than inflows in equities. we haven't seen people come back to the united states yet. stuart: i got it. but a socialist in the white house would only slow down the bull market? they would reverse it. >> i have faith in my country that a socialist will not be elected. stuart: thank you, we appreciate it. good luck. our next guest is the chief executive of the california cannabis company which sold the first legal pot in california. they are going public today, by the way. not in america, but in canada. andrew berman is with us, ceo of harb harborside. welcome to the program. good to see you. >> thank you, stuart.

good to hear your voice and see you as well. thank you for having me on the show. stuart: sure. you are going public in canada. you cannot go public in the united states until marijuana is completely legalized at the federal level here. have i got that right? >> that's correct, stuart. stuart: what exactly do you do? what's your company do? >> well, harborside is the longest running -- one of the longest running cannabis companies in the united states. we have been operating retail since 2006. today, we are vertically integrated meaning that we have cultivation facilities, we have retail locations, and we also have brands that we're building, and we control the life and the flow of those brands because we have the biomass to go into them and we have the shelf space to put them on. so vertically integrated cannabis business. we have over $300 million u.s. in sales life to date and we have a fantastic industry

pioneer, steve deangelo, one of our original cofounders, inside the company as well. stuart: you have a $300 million revenue at this point. where do you think this is -- >> well, that's our life to date sales. stuart: oh, okay. you have been around a long time. 2006 to now. that's 13 odd years. $300 million gross sales in that time period. you've got to really expand beyond $300 million significantly, don't you? >> well, we do, stuart. i think you need to look at the company really on a relative basis. our q1 financials from 2019 really compare us very very favorably to the large multistate operators that have already gone public in canada and they are worth $1 billion, $2 billion, many of them. so yeah, we are all in this market together. this is a new industry. that's what makes it so absolutely exciting. and for a company like

harborside, which has been doing it for a long time, it's particularly exciting not just for the company and not just for our cofounders, but also for the industry. you have to remember that harborside has been on the front lines for advocating for the industry for many, many years. for us, it wasn't just three years ago that the government finally dismissed its civil forfeiture case against us in 2016. so to be here today, to be going public in canada, this is a big moment for the company, for our cofounders, and also for the industry as well. stuart: look, thanks very much for coming on the show today. wish you luck with your ipo. good luck, sir. thank you. >> thank you, stuart. pleasure to be here. stuart: sure thing. california might soon be the first state to allow illegal immigrants access to health coverage. democrats agreed on that portion of the state's budget yesterday. hasn't passed the full legislature yet. they have got until june 15th to get it through. the cost is estimated at $100 million a year. i'm sure it will go up from there. get a load of this.

the tsa, this is a story you've got to hear, the tsa reportedly allowing illegal immigrants to board planes without identification. instead, they will have to pass through security with a notice to appear form. that's for their immigration court date. are you kidding me? ashley: absolutely outrageous. once you have taken your shoes off, they have gone through your bags, take your laptop out, apparently as you say, a notice to appear is all that's required but now there's some questions about whether the tsa and the other immigration courts, especially when they are released from federal custody, whether that's legal. you go to the website, you have to provide valid identification. any airport in the world, you have to have valid i.d. with your boarding pass to get through the whole security measure. but apparently, this has been going on because there are so many illegals who have been released from federal custody that have overwhelmed the bus services, greyhound buses, local

motels don't know what to do with them all so they are getting a bit slack in allowing them to get on planes without i.d. jackie: if you were still living in this country and went to board a plane without i.d., proper forms of i.d., they wouldn't let you do it. they would get tsa involved if you had a freak-out and you could potentially end up in jail. that's one aspect. the ekd s second is, what about security in a post-9/11 world? you don't know who these people are. ashley: they claim they were properly vetted in the notice to appear. jackie: i don't know about that. stuart: there you go. there's beverly hills, california becoming the first city to officially ban the sale of tobacco products. we will be talking to the mayor of beverly hills in a moment. we will also head to the white house to talk with mercedes schlapp. i think the protests in hong kong over the weekend, a million people on the streets, i think that gives america a little leverage in the china trade deal. see what mercedes has to say.

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stuart: on your screens, two defense behemoths, raytheon and united technologies, they are going to get together. that will create a company with a combined annual, well, they will be essentially a $100 billion to $110 billion company, that's the value of the combined company. i might add, okay, they are defense giants, they are getting together, worth $100 billion. let me remind you, that is one-tenth the value of one software company, microsoft. ashley: yeah. stuart: microsoft is worth $1 trillion. raytheon and utx get together, they are only worth $100 billion. what does that tell you about today's society?

that's extraordinary. tech is where it's at. has to be. by the way, check the big board. we've got another leg up on this rally. maybe mr. belski had something to do with that. now we're up 212 points. that's 26,200. we are just shy of that level. can we just remember, please, last week the dow went up 1,170 points. you chuck on another 200 here, and you are looking at the best part now of 1300 to 1400 points from last monday to this monday. that really is extraordinary. i've got -- ashley: five and a quarter sessions. not bad. stuart: i better move to china trade. i want to bring in mercedes schlapp, white house director of communications. mercedes, maybe i've got a bee in my bonnet but i used to live in hong kong. when i saw those demonstrations of a million people over the weekend, i thought you know, that's got to put pressure on xi

jinping in our trade talks with president trump. he thinks he's got a united front back home and he doesn't. i think it's leverage for america. what do you say? >> yeah, i must say those images are so dramatic to see those millions of people going out on the streets of hong kong. obviously what we're looking at right now is continuing to see if we can have these conversations with china. obviously we have president trump who is expected to meet with president xi in japan during the g20 and we want, as we know, to put forward a very good deal that we wanted the chinese to accept. they pulled back last minute and we want to see if we can go back to the table to have these discussions. we know that -- stuart: i'm sorry to jump in like this, but it seems like president trump pulled off a big win with mexico and tariffs. i think he won hands-down.

by taking that firm stand and sticking with it, doesn't that enhance his position in the meeting with xi jinping at g20 which is what, two weeks away, that's it? >> yeah, there's no question that the president's strategy on the mexican tariffs was incredibly effective and successful. i mean, i will tell you, there were discussions for some time about what the mexican government could do. it was when the president introduced the word "tariff" into the conversation that it became a wake-up call for the mexican officials to take action. they came to washington, they met with the vice president as well as secretary pompeo and acting secretary mcaleenan, they sat with them hours after hours of negotiation, where what we have seen is that mexico is presenting new and effective solutions at the border. they are doing more for the border than congress is which is disturbing to see that when you

are talking about the mexican government taking significant actions to help the united states, yet the democrats have refused to lift a finger on solving this border crisis. stuart: well, president trump has to go into that meeting with xi jinping with the republican party at his back and unified and with american business at his back and unified. but i don't think you can say that at this moment. >> well, i have to say the one thing about president trump is that his leadership has led to effective change in our trade policy. i mean, there is no question that we have seen the economic burden rest on the chinese more than ever, because of the president's actions on the tariffs. and it puts pressure on those companies who have shifted jobs overseas to look into the united states and invest here in the united states, and that has been one of the priorities for the president. at the same time, the president said we're not going to stick to

a status quo when it comes to the trade policy. china for too long has stolen our intellectual property, has stolen our technology. we're at a point that our goal is to ensure free and reciprocal trade and it's why the president has taken the steps that he has when it comes to these tariffs. at the same time, we've had a good deal on the table. we want to continue negotiations and we'll see where china goes next. but there's no question that for the president, this is about improving our playing field here in the united states and protecting our american workers. stuart: i think it's helped the market which, by the way, i'm sure you know, mercedes, up 1,400 points on the dow industrials since last monday. okay. mercedes schlapp, thanks for joining us, as always. we will see you again real soon, promise. >> thank you. stuart: sure thing. let's go to beverly hills, shall we? ashley: why not. stuart: why not. they are banning the sale on almost every tobacco product out there. next, the mayor of beverly hills, after this.

stuart: ah, you want a controversy? all right, let's go to beverly hills, california. that city, town, call it what you will, is going to ban all tobacco products or at least nearly all tobacco products. john mirisch is with us, the mayor of beverly hills. john, thanks for coming on the show. we appreciate it. let me see if i've got this right. by 2021, i cannot buy tobacco in your city, but i can buy marijuana. seems like a bit of a contradiction to me. what do you say? >> you can't buy marijuana. we don't have dispensaries and we are not going for that. you can't buy marijuana. stuart: okay. but you wouldn't object if i did, would you? >> well, you can go down the road to west hollywood or los angeles and buy marijuana if you wanted to. we have not gone for that. that is a conscious decision. it is meant to be consistent with our decision on vaping and tobacco. stuart: you are going to keep out marijuana, pot shops, from

beverly hills. you will keep them out, right? you don't want them smoking anything? >> well, medicinal marijuana, you can have it delivered in beverly hills, not recreational, but we like to think of ourselves as a healthy city, and not just think of ourselves, we want to be a healthy city. you know, tobacco and marijuana are two different products. i think they are probably two different discussions to be had. but we made the decision awhile back when marijuana was becoming legalized in california that we did not want to have cannabis outfits or retail outlets within our city. stuart: do you think it's just a little bit of symbolism here, not being able to buy any tobacco product in your city? >> well, there is certainly some symbolism but it goes beyond that. if i may quote ruth malone, a professor at uc san francisco, correctly, i think and very wisely, she said when you look at the history of consumer products, there's never been a more deadly consumer product

than cigarettes, and so it's not surprising that somebody would finally say maybe this is too dangerous to be sold on every corner, and that's a lot of what's behind our reasoning. there is a little bit of symbolism because you can go down the road but our hope is that other cities will follow suit, and when we actually passed the final ordinance, we found out that manhattan beach within l.a. county is also looking to perhaps ban the sale of tobacco as well. do we hope other communities will follow suit. stuart: am i right in saying mr. schwarzenegger does have a cigar bar and look, i don't know, but i think it's in beverly hills, but there will be cigar bars that carry on after the ban on all other forms of tobacco, correct? >> so there are three existing cigar lounges that will be able to continue. we certainly not only heard from governor schwarzenegger, we heard from politically both sides of the aisle seem to agree

on one thing, there should be cigar lounges in beverly hills. but there is also a difference. people know the environment they are putting themselves into. they don't go there to purchase tobacco that they may end up smoking on the street. so the cigar lounges, we look at as a little bit of a different scenario. if you are going to ask me is our ordinance perfect, it's not, but as you probably know, there are sometimes political compromises that need to be made. stuart: oh, yes, indeed. we do know about political compromise. john mirisch, thanks very much for being on the show. appreciate you being here. thank you, sir. >> thanks so much. stuart: more "varney" after this. ♪

stuart: you know we came on the air this morning at 9:00 o'clock, well, you figured that the market would go up but we didn't quite realize it would go up as much as this. you see nasdaq.

ashley: picking up from last week. stuart: it is, nice gain last week, dow up 1100 points last week. look at it go now, s&p straight up too. what a day. neil, it's yours. neil: deals out of the blue, north of $60 billion worth of deals, stuart, thank you very much, we are following all of that. markets positive, last-minute deal with méxico before tariffs would have kicked in, united technologies and rathion, second largest air space behind boeing and better than 50 billion-dollar deal, but again, the focus seems to be on china right now after the méxico deal and what that could mean, we have blake berman at the white house, we have a read from edward law