until july 24th. emotional testimony from alexandria ocasio-cortez. she doesn't want any detention at the border at all. look at that left-hand side of the screen, all-time highs for the dow and s&p. stocks gained 10 trillion since trump was elected. take that, connell. connell: i'm connell mcshane, i'm filling in for neil. welcome to "cavuto: coast to coast." s&p looks like if it holds the gains it can close above the 3,000 mark for the first time ever. if you look at tech stocks, the nasdaq is on pace for what would be a 7th record close so far this year. one thing both political parties think could pose danger ahead. we'll talk about that. soon facebook be treated like a bank.

ed isly the president picked up what facebook is looking at. he has a proposal of his own coming up as well. first to the story that broke earlier today in washington, the embattled labor secretary alex acosta from stepping down from his position in president trump's cabinet. blake burman live at the white house with the latest on that. reporter: connell, the timeline fairly quick when you look how it unfolded last week. on saturday the feds took jeffrey epstein into authority. the southern district of new york laid out its case, the newest charges they presented against epstein. that forced labor secretary alex acosta to go before cameras here in washington, d.c., on wednesday to defend the 2018 non-prosecution agreement deal that he strong with epstein and epstein's attorneys back in florida more than a decade ago. fast forward to this morning, friday morning, acosta submitted his letter of resignation to the president. the president was complimentary

of acosta who said he is stepping aside because the focus shouldn't be on this case, all distractions around it, and it should be elsewhere. the two appeared side by side on the south lawn before the president departed the white house. >> i know one thing. he did a great job. and until this came up there was never an ounce of problem with this very good man. >> it would be selfish for me to stay in this position and continue talking about a case that is 12 years old, rather than about amazing economy. reporter: democrats here in washington have been calling on acosta to resign or be fired, saying he oversaw a sweetheart deal for epstein, he could not be trusted to be a member of the president's cabinet. among reaction, senator kirsten gillibrand tweeted quote, good riddance. senator elizabeth warren, one word shorter, quote, good.

here is elijah cummings on the house oversight committee. >> the way he treated the young ladies is extremely unfortunate. i am hopeful that the president will appoint someone who will be very sensitive to women in the work place. reporter: pat pizzella the current deputy secretary at the labor department. president trump says he will serve as the top boss over at labor on an interim basis. the president now has to select a new nominee to go forward to lead the labor department. connell? connell: blake burman on the breaking news in the white house. the record news from the stock market whether anything can upend this rally. former jpmorgan economist, anthony chen, united advisors cio john trainer. stocks want to keep going up. do you worry, anthony that the

reason, we're relying on the federal reserve too much, the economy is weakening but we have a rally in the market? how should we interpret isn't. >> the economy is weakening slightly the reason why the federal reserve wants an insurance rate cut. right now everything seems to be okay. what are things lingering in the clouds? obviously flaring up trade tensions with china or certainly with europe. or if we don't get the usmca agreement signed or passed by the night. these are all things, if they all happened together can certainly threaten the rally. connell: as we're speaking the nasdaq hits another all-time high. every day of the week, john, we have some sort of a superlative we add to the s&p three thousand or dow 27,000. to anthony's point the things he points out are there, china largest among them but not going away anytime soon. how do you see it? >> what we saw wednesday and thursday the rebirth of the powell put. the fed and interest rate policy

is definitely driving financial markets. we saw that that gave birth to the rally in january. low interest rates are keeping it going. i would agree with anthony. what could pull the rug out from under this is really interest rates. there are all other issues surrounding trade. we don't see the chinese issue being solved very, very quickly though. that will fester. there are big issues they're addressing. we do think that the trade issue will stay on the horizon for quite some time. connell: even with the tariffs, if there is a truce in place while they're talking? the big deal we're told go from 10 to 25% on the tariffs, tough to pass them along, you start to see it seep into the economy, right? >> correct. if you see a truce. that would be great the market would take that very postively. trade will stay in the headlines. we're advising clients, don't anticipate it will be one and done that will be forgotten. this will stay out there. connell: to the point about advising clients, i don't know if you noticed this yourself, a decent amount of people with a decent amount of cash in their

portfolios. are they kind of scared, watching people like us talk about this rally and all the threats out there too it, but they keep seeing the market go up. maybe those people get involved now, kind of late-stages as well. i don't know how those will affect things. >> if they do, puts pressure on the markets. to the extent these risks do not flair up, they sort of linger out there, the chinese are saying they don't want to re-engage in negotiations unless tariffs are taken off. connell: that is non-starter. >> that is a nonstarter for the united states. those are things restricting things. connell: the acosta news, anything blake reported on, anything stands out there? to be fair as important as jobs are, the economy and secretary of labor, that is not necessarily the most important cabinet position though, the secretary of labor, at least traditionally hasn't been seen as such. is there any significance leaving distraction there? his point, now we can talk about

the strong economy. any take on that, john? >> we see labor, as you said, we have a very strong labor market. we see that continuing. what surprises us we haven't seen the wage growth. connell: yeah. >> i think we'll get through acosta. the a shame way things happen. we think we'll get through the news. the key thing with the employment situation though is really wage rates. if they start moving up, you know, north of 3 1/2%, close to 4% that will force the fed's hand. connell: all the balance. forcing the fed to act. you're talking about inflation which we don't see things now. thoughts on inflation? >> there are many other factors holding down wages. they are structural in nature. obviously the decline in unionization. the fact that companies are getting bigger, they have much more power over their workers. the fact that there is not a lot of pricing power out there, all these factors holding down wages. in addition to that obviously a lot of innovation and disruption we're seeing with technology. all those things are telling me

wage pressures are still under control. connell: one of the cases where we are in new normal in many ways. we appreciate it. we have to move on to the weather because in the new orleans area they have those mandatory evacuations underway looking across louisiana right now with tropical storm barry possibly reaching hurricane status as early as tonight. adam klotz, fox news meteorologist joins us with the latest on the storm. how are we looking, adam? >> we keep getting updates on the system. it is back and forth whether it will be a hurricane or very strong storm. that will not be the legacy. the legacy of possibility of all the water they will bring to louisiana. that is what we pay attention to. a lot of warnings, tropical storm warnings. the hurricane warning is moving closer and closer to the coast as it move that way. storm surge will be part of the story. higher levels, three to six feet we'll put a lot of areas especially right along the coast underwater. the rain will be another big

issue. this is the satellite and radar, we're seeing outer bands bring rain to new orleans and the coast. you're seeing rain as far as back into the florida panhandle but it is moving closer and closer to the louisiana coast. no surprise here. kind of a large area we're talking about flood watches and warnings. the water is already high along the mississippi river. we're talking about a whole lot more water lifting up that direction. these flood watches and warnings are in place throughout the entire event as rain moves this direction. we have several models. there is indecision where exactly it makes landfall, it will make a huge difference. you see a narrow path. if you'reyou're into the height of this, rain comes down, as much as 22, 25 inches of rain. it is kind of a slow-mover. i want to show you one more model before i throw it back to you. the heaviest rain is farther off toward the west. this will be the really big story, all this rain coming down again. it likely making landfall early saturday morning but the rain

already begun. it will only intensify throughout the rest of this friday. connell: we'll keep track of this. there is oil component we'll cover but the human component with the big flooding, adam, we appreciate it. as we move on, we saw the testimony from alexandria ocasio-cortez, the congresswoman from new york earlier, got emotional at times. she and others testifying on the migrant facility conditions at the border. one lawmaker coming tooters in that hearing. the border patrol has a response. we'll tell that for you coming up next. headlines and records set in the market, "after the bell," 4:00 p.m. eastern time, dow 27,000, s&p 3,000, last few minutes, all-time record for the nasdaq. we'll be right back. ♪

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connell: congresswoman alexandria ocasio-cortez and other democratic lawmakers being asked the questions, they're witnesses. you see aoc as she is known being sworn in. she was under oath for the hearing on the crisis at the border and conditions those migrant facilities. hill very rain has been covering. -- hillary vaughn joins us from capitol hill. things are emotional. reporter: you don't see several law makers from boeing sides of the aisle break down detailing what they are calling a crisis on the border but for different reasons. we heard from tearful testimony from democratic house lawmakers detailing their own visit to the border detention facilities in el paso and clint, texas. congresswoman alexandria ocasio-cortez told the committee she still thinks the border

crisis is manufactured because the cruelty she says is manufactured by the trump administration. >> what was worse about this, mr. chairman, was the fact that there were american flags hanging all over these facilities. that children being separated from their parents in front of an american flag. that women were being called these names under an american flag. we cannot allow for this. reporter: congresswoman rashida tlaib used lawmakers to not use the word illegal when describing illegal immigrants because she says it is derogatory and dehumanizing. she broke down in tears describing what she saw at the border detention facility. >> mr. chairman, it needs to be noted and into the record, i spoke to cpb agents, even though they told us not to speak to them too, remember that? said, what do you think we need to do, because you guys are

overwhelmed? they said, one of them, stop sending money. it is not working. reporter: passionate testimony from border state lawmakers desperate to fix what they are saying is a growing crisis. they said that they have asked democrats repeatedly over the past year-and-a-half to approve more funding for the border so they can fix these conditions and help lift some burden off cpb officers that are trying their best to handle the situation that is escalating out of control. >> you don't have enough supplies. you don't have enough facilities it is a crisis. it is real and we do not get anywhere by blaming the people who are doing their best to help these people. we need to look in the mirror. we need to make the changes. reporter: elijah cummings coming under fire not holding the hearing until mid-summer, right before the summer recess, saying

when democrats took the majority they could have addressed this issue in january. instead the first hearing they held was with michael cohen. connell. connell: we'll stay on the story. first, let me alert you to the situation on the ground in the milwaukee area. president trump just landed there. he will make a speech in a couple of hours in milwaukee talking about the economy. we expect him to talk a lot about the usmca deal, the trade deal between canada and mexico. maybe we can listen a little bit, see if we get a little bit of audio from the president talking to supporters, get back to the border story. he is posing for pictures. >> god bless you, mr. president. >> we love you, mr. president. connell: president just on the ground in milwaukee. we will cover this in more detail, guessing closer to the time he makes the speech. the president made plenty of remarks on news of the day, on south lawn. i said we would stay on the border story. we have reaction to hillary's

report from national border patrol council vice president hex tore garza. i'm sure you heard hector, with testimony of alexandria ocasio-cortez and congressman talib. your reaction? >> fortunately we know that we have a border crisis happening right now in the united states and we're glad that at least this is talked about in congress. at least they're holding hearings, they're acknowledging we have a problem on the border. the problem is it is nothing more than political grandstanding. we need to make sure congressman something to happen. aoc talking about the conditions on the border. we've been talking about that for the past six, seven, eight months. she still refuses to vote for the supplement. unfortunately it is, we'll only find solutions until members of congress work together, work together with president trump. she is only one that tried to fix this problem.

connell: let me ask about a couple terms here today, get your side of it to respond. aoc said it's a manufactured crisis. congresswoman tlaib says if you refer to an illegal immigrant as illegal, that term, in of itself illegal is derogatory, dehumanizing. your reaction to that kind of talk? >> the term illegal alien is found in u.s. law. that is something that agents we've been trained. that is how we learned the term because it is found in u.s. law. if she doesn't like the term change the law. again it is political grandstanding. let's get to the root of the problem, fix the issues. people are suffering on border. border patrol agents are overwhelmed. facilities are overcapacity. nothing is happening in congress except grandstanding. connell: you obviously don't feel it's a manufactured crisis. no point in following up. i know how you would feel about that. you just expressed those feelings, the question becomes what do you do about it? you said congress needs to do

something. what does that mean? what would that look like right now? what kind of action would you like to see that would actually fix this? >> problem on the border we're encouraging illegal immigration. the testimony, some of the statements by some of these democrats continue to encourage people coming to country illegally. for them to continue to abuse our asylum laws. we know a lot of people don't have legitimate asylum cases. we want to be sure those with legitimate claims we help them out, give them help that we need. those abusing the system need to be identified and need to be removed because they are violating the law. they are not showing up to court proceedings. connell: do you think the raids planned supposedly over the weekend, that is a good idea? >> it's a great idea. we have to enforce the rule of law. these people have been found to have been ordered removed by an immigration judge. they have already had their due process. they have already had their day in court. guess what, we are enforcing laws, and not going to enforce the laws. if we don't enforce the laws, the situation on the border will get worse. that is what is encouraging

illegal immigration. then we get these public figures telling some people ordered to remove how to avoid law enforcement, how to hide and stuff like that. that is unbelievable. we need to enforce the rule of law. connell: hector thanks. thanks for your point of view today, we appreciate you coming on with us. >> thank you, connell. connell: hector garza, a lot going on all at once. president landed in milwaukee. we'll stay on the border story. the vice president is at the border today, even with the testimony happening in the congress. meantime you have facebook, facebook is out pushing its new libra, the cryptocurrency digital currency. that as a lot of people suddenly noticing digital currencies. one of those people? the president. he tweeted about it earlier today. what that might mean for regulation, for companies in the space, including facebook. that's next. -driverless cars... -all ground personnel...

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connell: the dow is at 27,000. they will look at comments coming in from charles evans, federal reserve bank of chicago, just out with new comments suggesting two rate cuts could be possible before we end this year, before the end of the year of 2019 suggesting low inflation requires lower rates. slower foreign growth, some trade tensions, trade disputes that we've seen are adding to the need for more rate cuts. the possibility of two rate cuts before the end of the year from evans. his comment would carry a little bit more rate than the average fomc official. he is a voting member of the federal open market committee. those comments are in. we pass them along. the dow is above 140. well above 20,000. a record-setting pace with all three major indices with the s&p over 3,000. nasdaq hitting an all-time high. in the middle of all this the president weighed in on something, there were a few topics we hadn't heard him

comment on in the past but this was one of them, cryptocurrencies. apparently president trump is not a fan, a quote from his twitter talking about facebook and its new libra currency. deirdre bolton is here to talk about this and what it might mean for regulation, right? >> it will take a while for facebook to get this launched. jay powell testifying this thisk in d.c., more or less, i will heavily paraphrase. we know you're looking for a 12 month launch, facebook, but it will take a lot longer than that the president's tweets up on the screen, if you want a currency, you will be a bank, you will be regulated like a bank. he talked about risks we talk about a lot, whether bitcoin, leeb barks unlawful -- libra unlawful behavior. he talked about libra lacking

dependability. he gave a shoutout to the u.s. dollar saying if you really want a good currency, this is the dominant one. it is reliable. connell: he is making the point, not like everyone ignored digital currencies, we talk about them a fair amount, to your point if facebook gets involved suddenly you caught the attention of the president. you think that, i don't know if it fast tracks regulation in this regard but certainly a lot of people would be talking about it and thinking about it i would think? >> facebook has had pr disaster after pr disaster the past few years. i think with this they're doing it up correctly. a subsidiary will be based in switzerland. there will be 100 partners, visa mastercard. ceo, sheryl sandberg says we'll working with regulators every step of the way. what is interesting from the tech perspective, tech entrepreneurs they will launch any kind of business except for this one because financial

services is so heavily regulated f anything, this underlines that point. connell: their assumption is at some point this will be, to the president's point treated in a similar fashion to a bank? >> exactly. there is no government that, having a currency that you back by assets, your own reputation, that is not something that any government takes lightly. it is obviously most heavy control. and it is not something that necessarily a lot of governments or even businesses or investors want in the hands of the people. what i will say about facebook's libra, i feel like this is a good way for facebook to change the conversation. so if i owned facebook stock, good on them. this gets everybody off the concerns about privacy and data. of course the next question, if i can't trust them with my data, will i trust them with my money? connell: glass half-full version from facebook's point of view, maybe fresh in my head, being back from china, the way everything works there, you talk about it a lot, get inside one

app, we chat. >> you do everything. connell: everything and social media and more importantly you pay for whatever you're buying. i guess where facebook things we're going too but china is already there. >> facebook with libra is trying to do things differently, it is not peer to peer as bitcoin. it would be backed by government securities. you have to have an actual bank account in your home country. so it is less random, it is less in the ether than bitcoin or other competing products with bitcoin. connell: now the president is paying attention. thank you, deirdre bolton. in the meantime back to new orleans. they're racing down there to get set for tropical storm barry that may well turn into a hurricane. the big storm may not necessarily be the winds, it will be the rain in an-year that has already been hit so hard. the water levels are normally higher than they would be this time of year. it won't take much for this to

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connell: we're certainly following this tropical storm, tropical storm barry. it is gaining strength. heading for the gulf coast, major oil and gas producers among those putting evacuations in place down there in the gulf. former oil president of shell oil john hofmeister is here in

new york. we'll talk about the oil side. then in a moment we'll get a report from new orleans. good to see you, john. >> good to see you. connell: this is always the case anytime we talk about a storm, you will hear as this one from casey stegall in a moment is scary because the water levels are already so high. maybe this could do a little more damage than a storm of this strength ordinarily might do. what about the from the oil industry perspective? >> there are two sides. one is the offshore. the crews have been evacuated. most companies have meteorologist on staff who keeps them well advised what happens from the weather front. getting people safely off the platforms, securing the platforms, so they can be shut down in a proper way, so they can be restarted in a proper way. everything is done in an order derly fashion. people are gone. everything is taken care of. what we don't know where the onshore facilities are. that can affect flooding and

pipelines. this is refinery rich area, the southern coast of new orleans or of louisiana. so there are issues that have been taken care of in the past. for example, most refineries have elevated their electric calls above the flood level so they don't see the electricals go out because they were at flood level. many things are modified over the years. there could be a lot of water. connell: a lot of water. especially since the levels are so high. to the industry perspective, you talked about evacuations. we've been through this before. you see prices go up a little bit, everybody goes back to work. they know how to run that drill. if there is more damage onshore than the industry has to pick up the cost from there. >> the big issue is if the power goes out. when the power goes out, those refineries which don't have their own power, most of them don't have their own power, they have to rely upon getting the grid back up. that shuts down oil, gasoline,

diesel moving through pipelines. that is leads to shortages. the pipelines come right up the east coast to baltimore and new york. connell: sure. i want to get one more point in. we're $60 on crude oil before i go down to casey in. we talk about oil and iran a lot. as you were coming to sit down you were making a point off the air about the permian basin. it could be an important point. what is it? >> if you make money in the permian basin, you need north of 65. connell: really? >> not only are you paying the expenses of drilling and producing but you have to set money aside for future capital expenditure. decline rate of wells in the oil shale is so rapid that you have to keep drilling to replace the decline you're experiencing in the older wells. connell: that is an interesting story. i pointed out that last year. i was having conversations with peel, with the type of drilling

you're doing you need oil price to to be up. years ago, it used to be 50 bucks. guys were saying no, we could do it at 35. you're saying it higher. >> they can pay bills at 35 but that will not pay for the next well. connell: always good to see you in person. we always have you on satellite. want to get to casey with president trump declaring an emergency in the state of louisiana. casey is on the ground for us in the new orleans area with the latest. casey? reporter: connell, we're already feeling the outer bands of barry. we'll get some really brief moments of heavy rain and heavy winds. then it dies down. we're in one of those lulls at the moment. you know in order for something to be classified as a category 1 hurricane, you have got to have sustained winds of at least 74 miles per hour. that is the threshold. right now it is still a tropical storm and forecasters are

unclear as to whether it would hit as a category one storm, to see along the central louisiana coast. if it does, it would be the first time in history that a hurricane has hit when the mississippi river levels have been this high and rising. look at this. you can see how high the water is. it is not terribly far from the top of that levee. then on the other side of the levee. you see houses right there. this is the lower nineth ward. a lot of people know this area well. it wept underwater in with katrina. it is normally at eight feet this time of year. right now it is at 16, 17 feet. a storm surge of any kind could be bad, bad news. look at this video from plaquemines's parish. lower lying orders, evacuation

orders are put in place. residents don't listen a to the evacuation orders and they opt to ride the storm out instead. listen. >> people just don't want to leave their houses. before katrina we had a bunch of people that stayed, we had smaller storms and all, they just got comfortable oh, it is not that bad, it will not be that bad. then that came. it caught a lot of people off guard. so we are hoping that more people take heed and, and go but, it would be in a smaller storm -- reporter: now, we have talked to some people who are listening to the emergency officials. a guy yesterday told us he was taking his four kids and he was going as far north as he could because the time is running out. the window is closing, to make the preparations.

sandbagging, going on, boarding up of windows, getting purchasing of supplies and medication. it is on its way. the question is. how much rain and how much flooding is it going to cause? hopefully we dodge a bit of a bullet. we'll be here to keep you posted. connell: be safe, casey stegall in new orleans. we get back to the market. the dow is well above 27,000. we talked about that. could china doing business with iran unravel a trade deal prospect? what will that mean for stocks? after this. ♪ fact is, every insurance company hopes you drive safely.

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needed to be even more complicated right? reporter: seems more and more this stuff is intertwined so to speak. u.s. and china trade teams are still in communication. signs that the chinese economy might be softening a little bit more. chinese exports to the united states fell 1.3% in june. $250 billion of china import are under a 25% tariffs. the chinese retaliated raising their tariffs on u.s. imports into china fell 7.3% in june year-over-year. president donald trump says he still has a good relationship with president xi. as the u.s. economy flourishes, the chinese, he says, still wants a trade deal. >> right now companies are fleeing china because of the tariffs. right now we're taking in billions of dollars. by the way, our people are not paying for it. they're paying for it. they're paying for it by depressing their currency and they're putting a lot of money.

reporter: federal reserve chairman jerome powell testified yesterday he heard companies move supply chains from china to mexico. still the maneuvering continues. today the chinese announced that china air will buy 20 a-350-900 jets from airbus, a loss for boeing. this does a couple things for china. it shows u.s. negotiators that china can move forward without u.s. technology. the chinese are close to a trade agreement with the european union, closer than the u.s. is with the eu this could be a olive branch towards that agreement, possibly locking, causing the european union to be strict, tougher on the u.s. trying to get a trade deal with them. all of this stuff might be interconnected, connell. connell: started saying it is quite complicated already, getting more so. thank you, edward lawrence in d.c. we also talked about talk iran

the uk sent another tanker to the gulf. seems like something every day with iran. where is this going? >> iran is extremely desperate to get out from under these sanctions. their economy is really tanking, kind of an unprecedented rate. we all know about how their currency has been affected massively. so iran's biggest fear, the internal domestic populace goes into a state of unrest which they have done at different periods over time. economy, it is the economy. connell: right. >> that is what they are worried about. they will try everything they possibly can to get the u.s. to lift sanctions. i just don't think what they are doing will be effective. connell: here domestically, a piece of news breaking over last few minutes. the house of representatives just held a vote which approves an amendment before the house to bar, ban the use of force against iran without congressional approval.

what happens as i understand it, it goes into the defense bill, which will be argued in the senate. we'll see how all that plays out. it doesn't seem this president really is looking to use, military force in iran. that he would like to avoid it at all costs. what is your take where we're going in terms of the possibility of military conflict? >> i don't see him going in that direction either. there is a lot of people on the staff underneath, you're going to hear complaint, they're hawks, they're this, that is fine. play good cop, bad cop with the likes of john bolton or somebody like that. connell: right. >> but president trump hasn't shown he wants to use military force. he is trying to disengage in the region of the amendment that says you can't -- i haven't read through the whole thing, that says you can't use preemptive force for iran. good for congress. take your power back. it is not supposed to align in the executive branch. take your power back. connell: that is a wider story, right? you would know, it's a wider, going back to kind of the

post-9/11 days or even further, since then we talked about that a lot. you have to go to congress to get this kind of approval. >> absolutely. connell: maybe some would argue congress did not want to get involved in the past, looking for someone else to blame. i don't know what your take is? >> connell, you're absolutely right. congress played the whole, they tried to walk the middle ground and not commit to either side. they have allowed to have the authorization for use of military force since 2001. we're still operating under it. it is ridiculous of the you went into syria, libya, forays into africa. all this under the guise of a very flexible, congress, the legislative branch should take back the piece whether we go to commit troops to war or not. i think that leads to more success when we do. the american people then are behind it. it is not just an executive decision. connell: good discussion, dave, we'll continue to watch iran. to your point we'll watch the

economy first, to see how the people there react. thanks for coming on. we appreciate it. >> thanks, connell. connell: amazon was first, now google admits it is listening in to what we're saying if you have a device like this one in your home. more in a moment. your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity. you need decision tech. can't see what it is yet.re? what is that? that's a blazer? that's a chevy blazer? aww, this is dope. this thing is beautiful. i love the lights. oh man, it's got a mean face on it. it looks like a piece of candy. look at the interior. this is nice.

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connell: you know the dow is above 27,000, comfortably above it, in fact the dow jones industrial average just hit a session high a few minutes ago. it is up 168 right now. nasdaq, also hitting all-time high earlier on this hour. with s&p 3,000 to deal with. a lot of records in your stock market. meantime google admitting its contractors now can listen in on people who are using a google virtual assistant. the tech analyst russ russ is

with us. we do the stories all the time. i kind of laugh, no surprise they're listening in, but it is contractors outside of google. should we have known about this? >> here's what i say, if you buy an internet connected microphone in your house somebody will probably hear something you say at some point? connell: assume that going in. >> i think that is a fair bet. they are saying these were specific circumstances in specific instances, for a lot of them someone said wake word. google turn on the lights. connell: or alexa with amazon, right. >> there are minutes long recordings have also come through. it will always be a rick. more connected devices in your home the always a possibility that this will come out. connell: we care about this generally speaking in the united states. >> sure. connell: i find it interesting as the technology eye involves, we'll talk about 5g in a second, rest of the world depends where you go. other places don't have as much

concern, saying with china it is not really up to them. the government decides. they're collecting all the data. how does that affect the race for technology, will we fall behind because of our cone concerns about privacy? >> i think china is more bullish and more cavalier about pushing this technology because again the privacy concerns are not there. i think it makes sense for us to be who are hesitant and more thoughtful about it. again privacy is such a huge part of our country and our government. it is in the constitution. we better get it right. connell: it is just interesting, it is not, again not up to them, not a concern. >> right. connell: huawei, speaking of china, speaking of 5g, is reportedly launching a 5g capable phone early as this month. i was just there last month. they gave me a tour. whatever we covered everything to do with huawei. after our interview, they give us a tour of our 5g facilities whatever they show us. that part was impressive. >> a lot of computer screens, what are they showing you. connell: technology, the speed

of it. examples they have are amazing. but having a phone ready is not as big of a deal as a network ready, what do you make of this? >> phones already exist, 5g phones exist but the networks are not there. the united states forget about it, we have barely any 5g coverage. connell: this stories matters maybe in europe or asia? >> it is only asia. south korea is definitely like -- connell: ahead of the game? >> ahead of the game on this front. it is so early, the fact they're launching phones it is like a test balloon, launching a rocket first like proving out technology that will become the norm. it will eventually happen but it is still away as way. connell: how aways is aways away? >> i'm conservative. it could be 10 years because the technology requires so many, some towers contrary to the towers we have now, you would need in new york city, you would need one every single block to reach the 5g network. spreading that across the country is outrageous.

connell: the company, even apple is rumored to be ready by next year you're saying networks won't -- >> these companies will have the phones that can pull this off, it might only work in downtown manahattan or something like that. if you're in the middle of montana, good luck. you might be on edge at that point. connell: good seeing you, russ. it is spectacular technology. to your point takes a while to get there like self-driving cars which would be better connected with 5g. meantime all three major indices we follow on wall street at record highs. dow 27,000 is part of that. is it the top? is it just beginning after rally? where are we? we could use the inning analogy. bottom of your screen. we will be coming right back. ♪♪ ♪♪

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that some say could upend it. we will explain what that one thing is. we continue here today. in the meantime, president trump is about to speak about trade and the usmca. there's doubt that new trade deal will ever pass in the congress. it's hour number two, starting right now. connell: all right. welcome back. good to be with you. i'm connell mcshane filling in for neil. our top story is the tropical storm barry. it is making its way towards the gulf coast. we are keeping a very close eye on it. potentially becoming a hurricane before landfall. again, you are in an area where the water levels are, as casey steagall reported to us last hour, significantly higher than they normally are at this time of year. so you have to keep that in mind as we're going in. our meteorologist joins us with what we can expect.

>> we are talking about major flooding concerns across louisiana and also going to be seeing that extending further do the north as the mississippi river continues to be pretty high. but let's talk about tropical storm barry moving at five miles per hour, convection to the south of the gulf which is good news into the louisiana coastline but there will be more wet conditions to come. visible satellite reiterating the heaviest convection to the south, we will continue to watch this storm be slow-moving and as it spends more time over the water it will continue to gain strength. that's why the potential for a cat 1 by saturday morning. it will drag further to the north through arkansas and even bringing rain concerns into the midwest region as we head into next week. flash flood watches in effect for new orleans, also seeing that into biloxi, mississippi, mobile, alabama and pensacola. we will be looking at major

flooding into new orleans and widespread flooding through little rock and memphis, tennessee. we are going to be running up to 24 inches, now, not everyone will be looking at 24 inches of rain but some spots are definitely possible to see that. winds in new orleans 60 to 80 miles per hour with tropical storm barry, rain will range from eight to 16 inches. baton rouge is likely the see heavier rain, running 10 to 20 inches. currently under tropical storm warning. any of the counties highlighted in the orange, looking at hurricane warnings. any of our counties highlighted in that red and once again, this is going to be the locations that you definitely want to evacuate. you are already looking at mandatory evacuations across some of the communities. as we talk about gusts, gusts will be pretty high. in the darker shade of purple, which includes baton rouge and new orleans, 60 to 80 miles per hour and on top of that, we are looking at a storm surge possibly up to three to six inches. with that being said, your real

impact, meaning beyond the winds, we are talking about how it can impact the community at a level 2 and that will really be looking at extreme risk to life and property across baton rouge as well as new orleans and even extending close to vicksburg. we will keep you updated. meantime, you definitely want to prepare as we continue to watch this storm, track its way north ward into louisiana. connell: we hope people are listening to all that. we will stay on top of the storm. meanwhile, a lot of other stories to talk about today. last hour we showed you president trump landing in wisconsin. he will be making remarks on usmca in the next hour. so this hour, we will start with whether or not the economic wind is at the president's back. the apple metro chairman and ceo is on our distinguished panel here this hour along with will rhine and lauren simonetti. thanks for coming in. kind of on that broad question, we will cover the president's

comments on trade, got a lot of other issues as we saw in his comments earlier today going on, can he focus people on the economy and you know, if so, does that help him politically? i think the answer should be yes. i wonder if he can do that. >> i think you're very smart. connell: couldn't figure that one out. >> not only should it be yes but let me use my company as a simple random sample. we have some thousands of employees but change in their pockets, he's a good man. take change out of their pockets, he's not so good. connell: it's not so easy to get people to actually talk about it. >> it sure is, if you get your tax return back and see it. it's really optical. when we pay somebody, we take taxes out every single week that they get paid. when they see there's more money in there, they think he's a lot better. when there's less money, whomever, obama, whatever. but addressing the wind at the back, to your economy on trade, you know, it's strictly a political thing. i remember when nafta was

passed. i remember clear as a bell, president clinton passed it i believe firmly because he was a democrat. if a republican brought that to the floor, building all those cars and bringing all that stuff in from canada at preferred rates, never would have gone. the fact that president clinton was economically sophisticated enough -- connell: because it started under a republican president. it started under president george h.w. bush. >> he drove it. if you look at it now, 75% of cars have to be there, it used to be 62%. isn't that better? connell: let's talk about that. start with that, on the new nafta, usmca. we can broaden it out to where we are on trade overall. first, we don't even know if this thing will get passed. should it? >> i think it should. i think it's pretty much a done deal. we are talking about number two and three in terms of america's largest trading partners in the world after china. actually, what's interesting, if you look at them individually, china's only somewhere in the region of 10% bigger than each

of them. as a bloc, that is a very very valuable trading relationship. i think that there's will on both sides to get this done. so i think by the end of the year they will be in place. connell: there's a question whether or not this issue broadly, trade, is going to be one heading into 2020 that is a political weapon for the president. in other words, it helps him, or it's a political liability, because not necessarily on what we're talking about with usmca but more so china, you have farmers around the country who are definitely feeling the pain, whether or not they blame him for that is a separate question. i don't know. >> look where the president is today. he's trooiying to sell usmca an sell 2020 in his favor in the swing state of wisconsin. connell: which is huge. yeah. >> a big win in 2016, largely went democratic during the midterms last year. the president is there. she's speaking to the manufacturing and ag sectors saying we could potentially have a win on foreign policy and the economy with the usmca. now, as for the china trade deal, a lot of economists, a lot

of business leaders keep pushing back expectations. we thought a deal would have been sooner, would have been more likely but now as we see all the back and forth, no one's saying that's going to happen any anymotime soon. connell: it would be a shock. i mentioned earlier the president had a lot of other issues to deal with today. the labor secretary, alex acosta, saying he is going to step down, giving this explanation on the white house south lawn, standing next to the president earlier. let's listen. >> it would be selfish for me to stay in this position and continue talking about a case that's 12 years old rather than about the amazing economy. connell: all right. trying to remove a distraction. i don't know how much it matters, but jobs is a big story for this president that as we talked about earlier, is something that's a positive for him. i don't know how much people connect the actual labor secretary with that but now he's moving on. what did you make of it?

>> i don't think they do. the jobs are a function of the economy. labor secretary may set barriers in terms of minimum wage and rules, regulations, all those things, but you get jobs if the economy's flourishing and you don't get them if it's declining. connell: he thought he was a distraction, supposedly, or -- we never know whether you're jumping or pushed to these situations. he says he was -- >> it's such a reversal from the press conference that acosta gave on wednesday where he showed no remorse, he didn't offer any apologies. he said he was staying where he was until he was asked to leave. and he left today. very nice letter that he sent in his resignation, very nice comments from president trump, but it seems that is a theme of the administration when someone goes. the president does praise them. connell: right. you were great. >> i heard reports that there was some frustration with the anti-regulatory legislation coming from his office. that could be a back story. those are just reports.

connell: anyway, he's leaving now. want to get your take on this next topic, which is the debt threat that's been intensifying. republicans pushing back against secretary mnuchin, the treasury secretary's plan for the debt ceiling and what happens if it's not raised. this is maybe my least favorite story to cover in financial journalism or whatever this is that we do, because i brought it up the other day, why we even in this environment have a debt ceiling is beyond me because we always raise it. we always know it has to go up because the consequences are dire. sure, we can patch things together for a little while but we go through this dance every so often and then it goes up. what do you think of what's going on here again? >> yeah, i think the move to kind of decouple the debt ceiling raise from the spending package is interesting. that's kind of a new development that we haven't seen. we'll see how hard the democrats want to fight on that, especially going over to summer recess. connell: they used to be put together even though they don't necessarily have anything to do

with each oefrmether. the whole thing, whether they are talking about the debt ceiling and the argument over it, or the actual discussions about spending, comes down to how much money we spend which is by any measure, too much. >> correct. correct. but i view it differently, sorry. debt ceiling is a function of gdp. since you told me three minutes before i came on air what the subject was, my great memory says that in '15, the one year i remember, gdp is a percent or rather, debt as a percent of gdp is now less than it was in '15. i can't tell you '16, '17, '18. five minutes before i came on air. connell: so jay powell tried to make the case yesterday that the point here is we keep paying interest on our debt, we can't do other things which is kind of obvious but it was a succinct way of saying it. that's the real story. you want to spend on highway, infrastructure, whatever you want to spend on, if we spend

time paying down interest, you can't do that. >> it's inevitable at some point we will have to raise the debt ceiling, and i do agree, it is a function of how strong the economy is, but we constantly kick the can down the road and take it to the brink and if we keep doing that, we find ourselves right in the middle of the 2020 election and honestly, it could be spun as a bad look for both parties. then you're talking about defaulting on your debt, not being able to pay your bills, the government shutting down. we saw what this looked like, for 35 days at the end of last year. connell: a lot of money, we will talk about that in any other election. >> when will -- connell: that does bring up a serious question. when is that point, kick the can down the road, what is the breaking point? >> i don't know there is, as long as, you know, if you continue to make more money, and i wish you do, you can buy a bigger house and get a bigger mortgage and carry more debt. if you lose this job, i strongly suggest you downsize. connell: your point is our country is still a strong country. we have the reserve currency.

we can kind of keep this up. >> we certainly can. >> not if we go to libra. >> again, what would they have to fight about? connell: guys, thank you. you're coming back whether you like it or not. we have to take a quick break. we will get to this alexandria ocasio-cortez story about the testimony on the border conditions. it got emotional on capitol hill earlier. not just with congresswoman ocasio-cortez, other members of the congress. this ahead of these raids, immigration raids that are supposed to start taking place on sunday. back in a moment to talk about that. don't forget to catch "after the bell" today. we will cover the markets, see how far above 27,000 we stay and whether or not we are able to hold s&p 3,000. record-setting day on wall street. back in a moment.

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connell: quick alert on united airlines before we bring the panel back. united extending daily flight cancellations until the 3rd of november. already had cancellations in place because of the boeing 737 max situation, now extended those cancellations until november 3rd. that's boeing stock, up today along with just about everything else in the market, it seems, by 1.5%. now, back to the panel. a shakeup in 2020 among the democratic leaders. according to a new poll, elizabeth warren, who has been surging in many polls, now up among democrats to second place. there she is right behind joe biden. so you know, i don't know if this is -- what this actually means other than maybe bad news for bernie sanders. he's going down in the polls as she goes up. our panel, zane, will and lauren. you want to go first on this?

everybody wrote off liz warren not that long ago. >> she's secretly getting popular among wall street. it's amazing. connell: really? do you believe that? >> she wants to take your wealth away from you. connell: i read those articles. that's why i asked you really believe it. >> she's thoughtful. she has a plan. connell: for everything. >> she says she's not a democratic socialist. remember that? she believes in markets. she just wants to make sure they work for everybody. and she's not a left of bernie sanders. connell: that's the argument. the constituency is similar. we will speak to wall street now, representative of wall street, is liz warren becoming more popular on wall street? >> i definitely couldn't say that. >> or maybe not publicly. >> exactly. not from what i've heard. to me this is sort of a market share thing, if you will. last time, you had bernie sanders who was the anti-establishment vote and he was pretty unique. so that was where you went for that particular sort of political leaning. now there's just more people on that same sort of

anti-establishment track. so warren, bernie sanders, just taking away some of those votes from each other. that's really what's going on. connell: i was at the debate in miami. after the debate, everyone tried to write off joe biden but he's still hanging in as the front-runner. if people had to bet, the most comfortable would be biden versus trump in 2020 but who knows. how do you see the democratic side of this? >> i see the country thankfully is not ready for a far left anything. so elizabeth warren is morphing towards wall street or whatever, towards the right, she becomes more popular, if you will. bernie sanders is way out there, let him stay, i can't believe he could go further out there along with all the rest of them. connell: speaking of aoc, i want to get into that a little bit. what's been going on on capitol hill today, the president weighed in on it before he left for wisconsin, this feud so to speak between the speaker of the

house, nancy pelosi and the congresswoman from new york, alexandria ocasio-cortez. here's president trump. >> -- very disrespectful to somebody that's been there a long time. i deal with nancy pelosi a lot and we go back and forth and it's fine. but i think that a group of people is being very disrespectful to her, and you know what? i don't think that nancy can let that go on. connell: so i guess mrs. pelosi has a new defense attorney here. >> new advocate. back to your original question, i think that it's a good thing that biden continues to hold that lead. i think that i don't like the early on words of the far left because it has a tendency to gain traction. i know a lot of folks in washington say disregard. don't disregard. chavez got elect orded on that

of thing in venezuela. connell: we're not venezuela. >> well, it was a populist theory and populists gain momentum if you don't deal with it. connell: who wins this internal struggle if you had to guess? is it the establishment, the joe biden and nancy pelosi of the world, or will they be pushed out by new voices? what do you think? >> difficult to say. i think you would probably have to go with the establishment at this stage. but the social media as the president knows very well is incredibly powerful. when you have five million twitter followers, that's a weapon that you can use and you can get an outsized share of influence because of that. connell: it's a different story but a similar comparison that the republican establishment would never have thought that someone named donald trump would be president now, pushing out a lot of their big names, paul ryan or pushing back even on mitch mcconnell and so many others that just aren't even around anymore. in that case, the establishment didn't win. these are different ideas, but i wonder if the same happens to

the democrats. what do you think? >> i think back to 2011 when this was happening in the republican party -- connell: the tea party. >> the tea party. it hurt republicans in 2012. the unfortunate or fortunate, depending on your viewpoint, nancy pelosi versus the squad, these four radicals, is they have a very loud megaphone and the media likes this story, too. i think it's a civil war forming in the party. the democrats are supposed to go against donald trump as much as they can go against republicans and now they are battling each other. it's not a good look at all. it's something probably nancy pelosi didn't think after they were able to win back the house that she would have to deal with. connell: we will see how she deals with it. she's dealt with a lot over the years. been there a long time. >> my money's on her. she's a remarkable woman at, what, 76, 79? i read her bio on what she does all day.

she's got more energy than ocasio-cortez, i promise you. connell: we'll see about that. zane, thank you. we will come back to you guys before the end of the hour. in the meantime, i want to talk a little bit about the levels we're at in markets. if we keep on going up, the dow 27,000, certainly part of it, but the tech stocks are doing well. new all-time high today for the nasdaq, s&p 3,000 as well. looks like we might hold that today. we'll see at the close. we will talk about what exactly is still continuing to drive all this. we'll be right back. oh, hey jeff, i'm a car thief... what?! i'm here to steal your car because, well, that's my job. what? what?? what?! (laughing) what?? what?! what?! [crash] what?! haha, it happens. and if you've got cut-rate car insurance, paying for this could feel like getting robbed twice. so get allstate... and be better protected from mayhem... like me.

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and what was worse about this, mr. chairman, was the fact that there were american flags hanging all over these facilities, that children being separated from their parents in front of an american flag, that women were being called these names under an american flag. we cannot allow for this.

connell: quite a scene earlier on capitol hill with a number of lawmakers, including alexandria ocasio-cortez, getting emotional as they testified on the detention facilities at the border and the conditions in those facilities. this while the deportation raids from i.c.e. are now set to begin this weekend. former u.s. ambassador to mexico antonio garza, is our next guest. first, your reaction to what was happening today on capitol hill. you had a number of democratic members of the congress, instead of asking the questions, testifying on their experience at these detention facilities. vice president of the united states at the border today and undoubtedly defending the conditions or trying to in those facilities. what's your reaction to what's actually going on there? >> well, connell, i think that sometimes the best evidence is in plain sight. i think if you take a look at the inspector general's report

of the situation in the border patrol detention facilities, in many cases it was simply unacceptable. they were the types of conditions that if children were being held anywhere in the u.s. in those kinds of conditions, child protective services would sweep in and take those children away from the parents. yeah, you can -- you've got to look at what the facts are. the detention facilities were not built to hold the kind of numbers that they were holding and for the lengths of time that many of these children and families were being held, so i say look at the inspector general's report and it will give you some sense of what government inspectors felt they were seeing and the conditions there. connell: one of the political questions becomes who feels more pressure to deal with that, is it the administration and thereby the president, or is it congressional -- the democratic

members of congress who the president is trying to put pressure saying congress needs to act. which side feels more pressure to deal with those conditions? >> well, i think the american public should be pressuring both sides, the administration for over 18 months has dealt with this largely through enforcement. there has been little if any congressional action on the underlying asylum procedures and reviewing those and perhaps legislation needing to address that. secondly, i think we've got to look at our policy in central america. the administration has chosen to cut foreign assistance but perhaps there's something more that can be done with congressional support, working alongside mexico to address some of the conditions in those countries. and thirdly, it's time really to look at our overall immigration laws, streamline some of it and make it more consistent with the needs of the united states today. connell: this weekend, the

agents have i.c.e. are going to be going around at the president's order, i suppose, to try to round up and detain people who are here illegally, people who came in and were given a hearing in many cases to -- and did not show up for that hearing or there could be other circumstances as well, but what do you make of this plan? is it a good idea? >> well, first, this was originally announced as a june initiative and later called off at the request of i.c.e. officials that were concerned about broadcasting these sorts of efforts and the kind of situations that it might put i.c.e. officers in. i think that's still the case. when you announce this sort of sweep, you put your officers in a little bit more challenging situation. secondly, the targets, the asylum applicants that did not appear for their hearing, there's some question as to

whether or not they were properly noticed. thirdly, will the sweeps target beyond those with existing deportation orders to the larger undocumented community generally. tlsh there, you raise question of capacity for detention and separation of families. there's some real challenges they will face this weekend. connell: we'll see how that kind of plays out and talk about it on monday. ambassador, good to see you. thank you for coming on. >> thank you. connell: shares of johnson & johnson, something we are watching in the market today, they have been going down on a news report the justice department is pursuing a criminal investigation into that company. with just about everything up today, j & j, down almost 5%. back in a moment.

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connell: what a day in the market. been quite a week, as a matter of fact. if you like things happening for the first time, the dow above 27,000 first time ever, s&p above the 3,000 level first time ever, and also, the highest levels we have ever, ever seen on the nasdaq. so that sounds like a lot for gerri willis to track. she has a lot to keep track of at the new york stock exchange. lot of hats to wear this week. gerri: that's right, literally. fingers crossed, right, that it continues. you were asking what could bring this down. well, look, even wild horses couldn't drag these markets down. in fact, all three major averages hitting new highs driven by gains in industrial

consumer discretionary and tech names. what's behind the move? there are three things. the fed's dovish view of interest rates, central bank widely expected to cut rates at the end of the month, inflation stabilizing and the yield curve steepening, looking a little less like it's predicting inflation and a recession. the s&p 500, the index that has lagged among the big three, set to close above 3,000, 3007 right now for the first time ever. the breakout coming five long years after closing above 2,000. meanwhile, the dow industrials hitting 27,000 and not looking back. we are currently 27,234. walmart, visa, procter & gamble, disney and home depot all hitting all-time highs. boeing, 3m and home depot accounting for the dow gains today. it wasn't all good news. johnson & johnson down 4.8% after the department of justice said to be pursuing a criminal probe into whether the company

lied about potential cancer risk of its talcum powder. and a change of heart by the fed could hurt stocks but even a stronger than expected showing of inflation at the wholesale level today didn't really derail the rally. so fingers crossed. you know what they say. stocks don't grow to the sky just like trees. connell: oh, really. gerri: you've heard that, right? connell: climbing a wall of worry. we have all kinds of cliches to throw out. looking forward to seeing you when we close today. i guess 3,000 on the s&p. looks like we will hold it. we'll see. gerri: fingers crossed. connell: thank you, gerri. president trump touring lockheed martin's subsidiary, derco aerospace in wisconsin today. he will be touting his record of jobs and on the economy. jeff flock will be there to document it for us. he joins us from milwaukee with the latest. jeff? reporter: that sure is a good thing for the president to talk about in view of his defeat yesterday in terms of getting that citizenship question on the

census. the president has landed here in the state of wisconsin. yeah, he's at a fund-raiser now. got a couple fund-raisers here today, then will be, as you report, here at derco aerospace. these are the folks that take care of military planes like the c-130 transports, the f-16 hornets and blackhawk helicopters. as for wisconsin, this is a state the president has now visited, we're counsting, six times since he's been elected. an important state, one that he won by a scant 22,000 votes in 2016. that's less than a percentage point. unlike the opponent in that 2016 race, democratic presidential candidates have been blitzing the state. in fact, just yesterday here in milwaukee, senators warren and sanders were here, representative o'rourke and former secretary castro, democratic presidential hopefuls all here in milwaukee for an event. i tell you, despite the

competition, the president has a great -- i guess a great message to bring today not only on the economy but on the usmca. as to the economy, the dow since this president got elected, as perhaps gerri was just referring, up well over 40%. the nasdaq, up well over 50%. when it comes to unemployment, not only is it great nationally but specifically here in wisconsin, which was already in pretty good shape when the president was elected, 3.8% unemployment rate, it is now down another point to 2.8%. so despite the fact democrats in 2018, connell, swept statewide offices here after the president's win in 2016, the president's going to come here today, talk about passing the usmca, perhaps say some nice things about nancy pelosi, as larry kudlow did to david asman the other day. surprise, surprise. connell: he was defending her earlier, the president. to the extent that he's going after aoc.

you're right, trying to stay focused is the challenge on the economy. the president himself, he will just say it's other people talking about other issues. but that's sort of like the acosta story. try to get that out of the way, stay focused on the jobs or to your point, backtracking on the census yesterday, the economy is the story. reporter: yeah. people can argue with him perhaps on a number of issues but the economy is very difficult to argue with the president's performance. connell: jeff, thank you. i want to get into this acosta story. the labor secretary will step down a week from today. what's the big picture here? what do you think actually happens? the idea as i said, talking to jeff, get this distraction out of the way, move on and talk about the economy. >> i think that's it. that's the distraction. it's basically gone at this point. the trump administration can continue to focus on the big numbers, right. those numbers include 5.6 million jobs created during the

trump administration, wages going up about 7%. you've got 600,000 jobs created in manufacturing, mining and logging. then of course, when you hear great stories like what's happening to the unemployment rate in wisconsin which you just told us about, i think the president's got a great economic story that he doesn't need any distractions for, and i think it also probably suggests he was not completely satisfied with the way alex acosta handled that presser this week. so it's just one more reason -- connell: what about real quick, the idea of all these acting secretaries now? labor, defense, department of homeland security, the story will come back whether this president can attract talent and get that talent that needs to be confirmed through the senate. >> i don't think he's really that distracted by it. if he was, that's the kind of thing he would be focusing on and hammering about and he doesn't. at this point we just keep getting acting secretaries. i think he's willing to plow along under those circumstances. there's nothing conventional about this presidency, obviously. he's happy to go along this way.

his feeling is as long as i can get things done. again, as long as the economy looks this good, i don't think he minds those types of things. connell: i can see that at the labor department. the pentagon's a bigger issue, isn't it fair to say? you should have someone in there that's in that job permanently confirmed by the senate? it's a fairly long time without a defense secretary. >> that's absolutely right. these are different questions, but even then, i think the president feels like, you know, he just gets a lot of pushback from congress and the pushback he gets, he probably chalks up to sheer partisanship, despite the fact of course, republicans control the senate and control these nominations. but democrats are doing everything they can to kind of slow them down. even including with qualified candidates. connell: good to see you, as always. piece of breaking news from washington as well. moments ago the house of representatives approving the 9/11 first responders bill. it was an overwhelming vote, 402-12. we'll be right back. ian buying a new car.

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connell: dow 27,000, but it's johnson & johnson, the breaking story, a few moments ago reported by bloomberg news that it's taking points off the dow rally. down 5% now on the report that the justice department is opening up or pursuing a criminal investigation into whether or not j & j lied about the cancer risks associated with its talcum powder. dr. marc siegel, fox medical correspondent, is with us now. according to this report, they had a grand jury looking into this and you know, what j & j officials knew. it's definitely hurting the stock. i don't know what you can add, what you know about the background of all this. >> the first question and the main question is full disclosure, what did j & j know and what did they do. we were always told medically that talc was taken out of these feminine hygiene products in the 1970s. the question is, a, did talc remain in these products, how long did it remain, did j & j know about it, what's the amount of talc in there. because talc is a known

carcinogen. how much was in there, how much exposure did it give women that were using the products? connell: from what i can read, just in the summary that came out, thousands of lawsuits involved the safety of the talc containing baby powder. they say for the alleged role that had in fueling the opioid crisis, according to this report as well. but your point is we know that this is dangerous stuff. just a matter of how much the company knew it was using. >> the same thing with baby powder that's used for young babies, exposure over a long period of time could have a carcinogenic risk. it's been studied in mice. there's an associated finding in humans for increased risk of cancer. connell: fair enough. again, the stock's down today about 5%, give or take. we will stay on top of that story throughout the day. meantime, there are new questions over how drug prices can come down, with the president backing down from the proposal he had to eliminate rebates from government drug plans. dr. siegel, this was something i

think kind of moved the market yesterday and people were reacting to that. tell us first of all about this whole rebate plan and how significant it is that the president's going in a different direction. >> first of all, it's huge. the reason the president is dropping -- is backing off of this is because of what you just said. cbo, congressional budget office, has determined that over ten years, it would actually cost the taxpayer $177 billion. why? because of increased premiums to medicare. why is that happening? that's interesting, because the middleman traditionally, if the rebates go to the pharmacy benefit managers or to the insurers, you would expect, and i would expect, that the drug companies would raise their prices as a result, because if the profits are being sucked out of the middle, the drug companies would raise their prices, then the price would then be transferred over to the consumer. in other words, if you are the patient, you go to the pharmacy, you pay a higher co-pay because the list prices are higher. that's what the trump administration believed. but this is throwing a wrench

into it because this determination by cbo is well, wait a minute, maybe list prices are actually going to go up, not go down. however, secretary azar is saying that the congress is going to continue to look into this and possibly pass a law. as a physician, i don't like all these middlemen. i don't like all these people who have no reason to be there other than to make a profit for themselves and obscure the real prices. i like price transparency. i like lower prices for the patient. i like patients out there having choice and knowing what they're paying for. connell: all right. dr. siegel, thank you. thanks for the insight on breaking news surrounding johnson & johnson as well. meantime, should facebook's libra be treated like a bank? this after the president came out with something of a proposal of his own on the topic. that's coming up. wanna take your xfi to the next level?

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connell: all right. the uk is pushing forward with a new tax on tech. if that sounds familiar, it's because we have talked about the u.s. anger over a similar tax from the french. back with lauren simonetti on this and other topics. >> yep. connell: yeah, i'm still here. the french were doing this, or are doing it. now i guess the uk is doing it. they love taxes over there. lauren: i can kind of see how the french are doing it because of all the concessions they are having to make as they deal with their budget shortfalls at home, the yellow vest protests, big headache for paris. a 3% tax on digital sales of our big tech companies in that country, but now the uk, too. where does this end? connell: it ends or maybe it goes next to the president's response. you know, the u.s. is i guess conducting some sort of investigation into the french and we'll see what happens with the uk, but this president's

normal response to something like this is at least the threat, if not the imposition of tariffs, that he will say all right, you're going to do this, i'm throwing tariffs on something. lauren: retaliation. lighthizer is looking into this and how it will affect the u.s. they have about a year but if you are a facebook or amazon or even linkedin, and you are looking at this with the onslaught of other investigations here in the u.s. that these companies are facing, how do you plan your future? how do you know what your expenses, what your liabilities, what your legal expenses are going to be? maybe the answer to all of this, i think this is what the uk is going at particularly, is fixing the outdated tax laws that legally allow these tax giants to park their money at lower tax rates or tax-free in certain jurisdictions. connell: that last point you made is probably the biggest challenge in this environment, with this present administration and everything else, planning your future, whether it's trade or other uncertainties that are out there. if you agree with policies or goals, the idea there is so much that's uncertain. now, the president went after

bitcoin, always going after something, today it happened to be bitcoin and facebook. i think when facebook got in the space, that caught a lot of people's attention, including president trump, going after this new libra currency that facebook wants to introduce. that brings up the idea, i would think, of regulation in this industry. i wonder what's next there. lauren: no one knows. no one knows the answer to this. so the idea of digital currency, of libra, is democratization of money, if you will. facebook has a huge audience which means that there will be a huge acceptance of this whenever, whatever form it ultimately becomes after all the regulators have their say. but it also, with that huge acceptance, would be the huge possibility of a big catastrophe of it not working right. i know all of these tech companies are raising their hands and begging and i'm going to use the word regulation in quotes. for regulation that is more legislative clarity, that is more of a rule book for how they can go forward, how they can be

innovative and how we can support them as a country to keep their innovation in the u.s. and don't force them to go overseas, where they can try out these new policies. but what facebook is saying, it's a pregnancy announcement, not a birth announcement. this is just the beginning of a very long battle as they figure out -- connell: they don't know what they are, what they are going to become, how big a part this is. the transition is interesting that zuckerberg says he's making and this i guess is part of that, going from this completely open company to something that's more focused on people's privacy. just the complete opposite of what we have come to know facebook being associated with. lauren: honestly, i don't use venmo because i have my concerns. this is like the whole next level that i think a lot of people would be welcoming. connell: i was going to ask you to borrow money. lauren: i will put a stamp on the envelope and mail it to you. i'm that old school. connell: really?

no digital? lauren: nope. my friends hate me. connell: right. venmo is a way of -- lauren: but the president has a point. with the tweet he sent last night, facebook, you're not a bank. if you want to be a bank, get a license to be a bank. connell: it might be one. they might end up. lauren: a version of one. connell: everybody that's in the space will now have to deal with this. thank you, facebook. thank you, lauren. lauren: you're welcome. connell: lauren stayed up late for us. that's essentially what happened. it's 2:00 in the afternoon. the gulf coast is bracing for that storm. this could be very rough as we have been talking about this weekend, because of where the level of the water already is. the sandbags are out, they're getting ready. we will talk about it in a moment. -all ground personnel... ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.

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coverage with "cavuto live" tomorrow morning at 10:00 a.m. fox news. check that out. "after the bell," 4:00 p.m. eastern time. record-setting day in the markets. we'll see where we close. 27,236 as we hand it over to you, charles payne. charles: thank you very much, connell. we appreciate it. good afternoon, this is "making money." the markets are on pace to end a record week at new highs. s&p 500 could close above 3,000. that would be the very first time that ever happened. the dow gearing up for the third record close for the year. the question how high can it go? i will ask heritage economist steve moore. president trump will speak of course about our booming economy in this hour. he will push congress to finally approve our new nafta deal. we'll bring you his comments when he takes the stage. vyings president mike pence heading to the