maria: it's also the acquisitions. china is buying up silicon valley so it's easy to get that technology. >> and funneling money into uc berkeley. berkeley kept taking the money. maria: exactly. don't forget about the centers. have a great day. "varney & company" begins now. stuart, take it away. stuart: good morning, maria. good morning, everyone. it is a headline-driven market and the headline is this. china trade talks resume and up goes the market. here's the trade story first. top level officials from china fly here next month to speak directly with treasury secretary mnuchin and trade negotiator lighthizer. the chinese quote, hope for substantial progress, end quote. lower level officials will confer throughout september. yes, they are talking. that's the headline. here's the market, going straight up. the dow is up 237 up wednesday, today we will be up another maybe 250, 270. it is headline-driven. the s&p is going up about 1% and

the nasdaq up better than 1%. that's a rally. by the way, the yield curve is not inverted. treasury rates are now firmly above their lows of the last two weeks. got a question for you. why would apple, with over $200 billion in cash, borrow even more money? they are jumping on the cheap money band wagon, issuing bonds along with coca-cola, disney, deere and a host of other blue chip companies. they are making hay while cheap money flows. and they will pull in money from overseas, too. over here, corporations pay interest. over there, not so much. in a moment, you are going to see the extent of the devastation in the bahamas and dorian's track. it's strengthening and heading for the carolinas. "varney & company" about to begin. stuart: we start with the hurricane.

it is now a cat 3 storm as it makes its way up the east coast and takes aim at the carolinas. meanwhile, in the bahamas, more images emerging of absolute devastation. at least 20 are dead. that number is expected to rise. jeff flock is in charleston, south carolina, in the thick of things. jeff, what's it like now? reporter: well, i guess it could be worse, stuart. that's your main headline here as we drive you through the streets of charleston. maybe if martin looks out the window, you can see there's no catastrophic damage here by any stretch, but clearly, you know, they had a hurricane through here. look at the houses on the right. can you see that on the right? can you get out that window and see? this is what they prepared for with big sandbags and all sorts of things, and now what we're getting is mainly huge rains. the streets of charleston, pretty well flooded.

i don't know if we get up to this next one, i think you can probably see it. nobody coming. we will go through that stop sign. here's a fellow out on the street. they are trying to clear the drains here because if you don't get the drains clear, you don't get the water free to flow out and maybe you saw that guy there. if i open my door, maybe you see ev even, you able to come back over here? not really? okay. well, there you go, streets full of water and you know, we're not done with this yet. we got a ways to go. we will be with you all morning. stuart: yes, you will. thanks, jeff. we will check in with you again on this program today. all right. that's the hurricane. now money. green arrows for the market at the opening bell. china trade talks scheduled for next month. that's why we're going up. market watcher gary kaltbaum is with us. look, this is a headline-driven market and you say there's another good headline coming from the fed. make your case. >> james bullard was out yesterday morning saying we need

a half point cut. he's the mouthpiece of jay powell. he's the one who came out in late december of 2018 and in june before the statement. i think a change is coming. markets for ten years loved easy money. you combine it with what's happening with china, another announcement of another meeting, maybe we're getting close or maybe not. i think the combination without a doubt helping markets right here. now we're in the middle of a trading range going back a year to two years depending on which index, and hopefully we can break out of it. stuart: stay there, gary. more for you in a moment. i want to get to brexit, because vice president pence is in london, meeting with prime minister boris johnson this morning. ashley, why do we care? ashley: we don't. to be honest with you, this is barely even a blip. let me just back up on this. because mike pence is going to go there with a message from donald trump saying we support you, boris, in your efforts to

get the heck out of the european union. the problem being is the brits just can't do it right now and even more embarrassing for boris today, his own brother quit the party, which is a major embarrassment. stuart: he was a junior minister. ashley: he was a junior minister. he is a remainor and has made no bones about it. for boris johnson, he's lost a series of votes in parliament and now his own brother jumped ship. it hasn't been a good week for boris johnson. doesn't mean this isn't going to happen but it's not good. as for mike pence, he's come in, he's gone, not really, you know, just with the message of we will get a trade deal done with you but you have to get out of the eu first. stuart: i asked a silly question, what does it mean to us in america. i don't think it means anything to us in america. but it's fascinating to see what's going on in our principal ally. let's get back to gary kaltbaum. why should we care about the events in britain and brexit? >> well, the uk is contracting as an economy right now. if that continues, not good news

on top of germany and a few others over in europe. so it does matter. but the good news is, the pound keeps dropping so if you want to go visit the uk, you are going to save a heck of a lot of money compared to five to ten years ago. i think that's the big story. stuart: that's only silver lining you can find. okay. >> right now. stuart: hold on. i've got more for you but i want to check on slack. it's a business software maker, obviously. they just issued their first earnings report since they went public. the stock is going to be down big at the opening bell, 13% lower. what's going on? susan: it's going to be down big because it was a dismal quarter for them. they had losses ballooning ten times from what they saw last year, $359 million is how much they lost, also growth is slowing which isn't good for a company that's still losing money at this point. they only added 5,000 new users in the quarter because they spent less on advertising, and there's a lot of competition as well. microsoft also has a groupchat software that has 13 million daily users. slack has 12 million, 10 to 12

million, less than microsoft does at this point. but their users aren't created equal according to the founder. but he says they do have paying subscriptions and that's a small number right now for them. stuart: here you've got another ipo that's underwater. susan: that's right. stuart: like uber and lyft and a couple of others. susan: right. stuart: not good for going public. susan: it has not been a good year for a lot of these unicorns like uber and lyft. what does that mean for future ones? peloton is set to list. is that good guidance for these type of listings and should you buy in if you don't have performance in a lot of big tech names? stuart: good question. i'm not going to answer it, either. two numbers this morning on jobs. first of all, private sector job growth from adp. 195,000 new private sector jobs last month. i would call that pretty strong. we've got a very low reading on

what i call the firing rate. 217,000 layoffs last month. gary kaltbaum, come back in again. those are strong jobs numbers, any way you look at it. you think the strong jobs market is confirmed tomorrow morning with the official big jobs report? >> i would say we'll have a decent number tomorrow. usually does when you get a number like this. look, there's been a lot of talk about recession for the last couple of months. the media was driving that baby home 24/7 for a couple of weeks. i haven't been on the recession call. i think we're slowing down and you can see it in manufacturing but jobs are still in very good shape and that's going to be a driving force going forward. if the job market stays strong, it's going to be very tough to contract the economy here. stuart: okay. one more for you. i got a shock this morning when i saw that apple was borrowing money along with disney, deere and other blue chip companies. apple's got $200 billion in cash. gary, explain it for me. why are they borrowing more? >> when you can borrow for nothing, you go ahead and do it.

that is one of the good outcomes of this ridiculous easy money and the lowering of rates everywhere around the globe. you make hay when you do it. you know, you get to write off the interest as a company and all that fun stuff. i think it's the right thing. we will see a hell of a lot more. i must tell you, i think the u.s., we will start doing 50-year bonds real soon because interest rates are too low and it helps out our balance sheet also, even though our balance sheet is a nightmare right now. stuart: i would like a 50-year mortgage but i'm probably not going to get one. >> you don't want that. ashley: who's going to repay it? stuart: i won't live to see it paid off. gary, thank you very much indeed. see you again real soon. it's a rally. we will be up 250 points plus at the opening bell. trade talks are back on with china. that's the headline. that's why this market is up. look at amazon. we have someone on the program shortly who says that stock is going to $2600 a share. he will make his case in a couple minutes. we have to get to the

seven-hour marathon climate crisis town hall. seven hours. bernie sanders says we've got to ban fracking all together. and of course we are following dorian, heading towards the carolinas, getting bad. jeff flock is going to be with us all morning. so, by the way, is the ceo of royal caribbean, the shipping line, the cruise line. they are sending a ship full of food to the bahamas. good stuff. big day. just getting started. you wouldn't accept an incomplete job

from any one else. why accept it from your allergy pills? flonase relieves your worst symptoms including nasal congestion, which most pills don't. flonase helps block 6 key inflammatory substances. most pills only block one. flonase.

inalso available in hybridts kind leall wheel drive.sport. lease the 2019 ux 200 for $329 a month for 36 months. experience amazing at your lexus dealer.

stuart: the home builder hovnanian reporting profits, looks like they were pretty good because the stock is up nearly 11%. i'm going to talk to the ceo of hovnanian about those numbers later on the program today. then we have a data base of facebook users' phone numbers, it's been leaked. reportedly more than 400 million accounts affected and the stock is not affected at all. in fact, it's up two bucks at $189. same old, same old.

it's teflon. breaking news on weworks' upcoming ipo. ashley? ashley: it was valued at $47 billion, it's been almost slashed in half now. they are considering this maybe down to $20 billion. why? well, amid ipo skepticism, for sure. we were just talking about this earlier, susan was. now from $47 billion down to $20 billion range. it's the office space sharing company. i think they have long-term leases of $50 billion. susan: they have been raising a lot of debt as well heading into this ipo. so there's a lot of questions surrounding whether or not this $47 billion valuation is worth it. softbank also an investor, lost in the uber investment. let's see how wework goes. stuart: these ipos, something of a problem there. let's move on. cnn held a climate town hall with the democrat candidates.

it was seven hours long. okay. we boiled it down to a minute. roll tape. >> god is watching as poison is being belched into the air of creation, and people are being harmed by it. countries are at risk of vanishing in low-lying areas. what do you suppose god thinks of that? i bet he thinks it's messed up. this is on par with winning world war ii. perhaps even more challenging than that. one of the reasons i loved the framing of the green new deal is it uses some of the language we might associate with the way that we met the response of nazi germany in world war ii. >> we should be leading the world to a global energy transition and you have a president who thinks it's not real. that is idiotic. >> do you plan plastic straws? >> i think we should. yeah. i mean, look, i'm going to be honest, it's really difficult to drink out of a paper straw, like if you don't gulp it down immediately it starts to bend

and then the little thing catches it and then, you know, so we've got to kind of perfect that one a little bit more. stuart: uh-huh. okay. daniel turner is with us. hold on a second. the united states is the king of carbon emissions reduction. that is a fact. so why are all these candidates being so negative? >> yeah. they have yet to explain how two things happen simultaneously. how we are lowering our emissions and at the same time, increasing the amount of fossil fuels that we are producing and building our economy. they haven't been able to square that circle. this was really just seven hours, stuart, i watched the entire thing. i felt like i was in "clockwork orange" where i'm strapped to the chair watching hours of nauseating film. it was devoid of science, physics, math, economics, it was seven hours of just socialist talking points. it was torture, honestly. it was torture. stuart: it was self-torture.

you didn't have to do that, you know. >> i have to. stuart: yeah, you do. look, i just want you to look at what bernie sanders said about fracking. here's the quote. any proposal to avert the climate crisis must include a full fracking ban on public and private lands. daniel, it is fracking which produces our natural gas, and it is natural gas which has allowed us to cut our emissions where everybody else is still rising. certainly china and india. what's he talking about? >> exactly. they get away with these ethereal comments, you just heard one in the earlier clip, we are putting all this poison into the air, things like that. i heard one of the candidates say there are millions of people in america who don't have access to clean water because of fracking. we have close to two million fracked wells in america. we have fracking in many parts of this country and look at what it's done to oil and gas prices. look at what that's done to food prices and to transportation prices. this is just the economic

inconsistency that none of them want to deal with. instead, bernie sanders has a proposal to fight climate change, said more taxpayer funding for abortions in third world countries to reduce the population. how are we having this conversation? these people are serious candidates for the president and these are their solutions? it was shocking, the stupidity i dealt with. stuart: well, hu you had to sit there for seven hours, good luck to you. you survived it. you're on our a at 9:air at 9:0e morning. thanks for suffering through that and reporting on it this morning. much more on bernie sanders coming up, top of the hour. i will have a my take on him. by the way, joe biden, he was asked a question last night about fossil fuel executives committing crimes against humanity. he did not push back on that at all. unbelievable. we will tell you all about it. look at futures again, please. we are going up this morning. a gain of 275 for the dow, better than 1% gain.

same with the nasdaq. it's a rally. we'll be right back. here, it all starts with a simple...

hello! -hi! how can i help? a data plan for everyone. everyone? everyone. let's send to everyone! [ camera clicking ] wifi up there? -ahhh. sure, why not?

how'd he get out?! a camera might figure it out. that was easy! glad i could help. at xfinity, we're here to make life simple. easy. awesome. so come ask, shop, discover at your xfinity store today. stuart: new tweets from the president. here we go. start with this. bad actress debra the mess messing is in hot water. she wants to create a blacklist

of trump supporters and is being accused of mccarthyism. is also being accused of being a racist because of the terrible things she said about blacks and mental illness. if roseanne barr said what she did, even being on a much higher rated show, she would have been thrown off television. will fake news nbc allow a mccarthy style racist to continue? abc fired roseanne. watch the double standard. that just came to us. look at the stock price of amazon, please. it is actually up, what, 20% this calendar year. our next guest says it's going much higher still. joining us is mark mahaney with rbc capital markets. amazon right now, $1820 a share. you say it's going to $2600 in 12 months. make your case. >> yeah. amazon is pretty well-known. of the large cap tech stocks, it may be the most consensus long on wall street. there's still a couple of things we think are underappreciated

about the company, however, and one is the impact of this one-day initiative. they announced this back in april, weie accelerating revenue growth in the june quarter because of it. we think it's about a third of u.s. households and they will roll it out, taking the prime service all of us are familiar with and making it one-day guaranteed delivery. we think what's going to happen is that's going to cause an increase in adoption rate for prime. there will be more prime households and the prime households will spend more with amazon with that accelerating revenue growth and eventually expanding margins, call it two to three years, materially expanding margins. i think that sets up the company to generate cash flows that would support $2600 price. stuart: you make a good case. what about the tariffs? concern about tariffs? a lot of the stuff that they sell on amazon comes in from china. any concern about tariffs? >> that is a concern. of all of the u.s. internet or global internet companies, most of them actually unfortunately

have very little exposure to china, mostly for political reasons. the one company that does have relatively material exposure to china is amazon, both as a vendor in that country and in terms of maybe almost half of the products that are sold via the amazon marketplace, not by amazon directly but by third party vendors come from china. so yeah, there is a risk there. we haven't seen it show up in the fundamentals yet. it could in the future. that's one of the two or three biggest risks. stuart: that was a gutsy forecast, $2600 within a year. good stuff. thanks very much for joining us. by the way, do you personally own amazon stock? >> i don't. stuart: okay. got it. thank you. see you again soon. check out that market. we are opening up in four and a half minutes. we are going up, 280 points maybe. it's a rally. back in a moment. liberty mutual customizes your car insurance,

so you only pay for what you need. i wish i could shake your hand. granted. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ on a scale of one to five? one to five? it's more like five million. there's everything from happy to extremely happy. there's also angry. i'm really angry clive! actually, really angry. thank you. but what if your business could understand what your customers are feeling... and then do something about it. turn problems into opportunities. thanks drone. customers into fanatics change the whole experience. alright who wants to go again? i do! i do! i have a really good feeling about this.

but shouldn't somebody this is be listening?pression. so. let's talk. we're built for hearing what's important to you, one to one. edward jones. it's time for investing to feel individual. stuart: all right. stand by, everybody. we are opening this market in about 45 seconds and we're going up right from the opening bell. china trade talks scheduled for the beginning of october. that's the headline. shah gilani is with us, scott martin is with us, susan li, ashley webster all together now. shah sitting right next to me. is this all about china trade talks right now? >> this is optimism on trade talks, resulting in something

for once. i don't think they will. i think the pessimism that's in the backdrop will probably come to the fore. right now the market is rallying on that hope, also on the prospect of at least a 25 basis point cut in rates. stuart: but it's a headline driven market. right. it's 9:30. we are off and running and already, we are up 250 points right from the opening of the trading session. 259, that's the best part of a 1% gain. it's a sea of green on the left-hand side. all of them on the upside except for four which have yet to open. the s&p 500 is also sharply higher. a gain there of .85%. that's 24 points. the nasdaq is up better than 1%. it's now back above 8,000. the ten-year treasury yield, 1.52%. way up from the lows earlier. ashley: that was 1.53. stuart: okay. ashley: going up. stuart: look at the price -- i'm sure the price of gold is down. yes, it is. it's down $14 an ounce but still

up there at $1546. the price of oil, i would expect that to be up a little. yeah, you got it right. up 54 cents at $56 a barrel. it is a headline-driven market. look, scott, right over there, we had strong job numbers this morning from adp and the firing rate is at close to historic lows. what happens to the market tomorrow if we get good jobs numbers from the big jobs report? >> well, i will sum it up in one word to quote seinfeld. i think it's nothing, to be honest with you. because to me, as shah said, this is about the fed. this is about the fed that needs to come to the rescue of this market, needs to listen to this market, regardless of what is going on with the trade talks, which first things first, i'm a realist. i will tell you, i don't think this is any different than the rumors in trade that we've had before. when it comes to the jobs number tomorrow, i think the worry is that it's too good of a number and it might push the fed off a 50 basis point rate cut later this month versus 25 which is what the market will accept but

not exactly want. stuart: you think we are getting a 50 basis point cut? >> i think we are getting 25. i don't see the need for 50 basis point. i don't see the need for 25 but that's already baked in. i agree with scott, right now everyone is looking at those numbers and i think if we get exceptionally good numbers, i think the market will back off. we have had less than 4% unemployment for 17 months in a row. we have had greater than 3% wage growth for ten months in a row. if those numbers are exceedingly good the market will back off. ashley: how can we not have a strong dollar, our companies that do business around the world, we've got to compete, we've got almost zero rates across the world, negative in europe and japan and elsewhere. we've got to bring the rates down. >> that's another narrative story. [ speaking simultaneously ] susan: the federal reserve will say they are not here to weaken or move the currency. >> but that's the reality. susan: look, 90% of the market expects a 25 basis point cut in a new weeks' time. only 10% expect a 50 basis point

cut. but 100% of the market expects at least 1% down from these current borrowing rates by april of next year. stuart: okay. we've got a 300 point rally for the dow industrials as we speak. that's 1.1%. exactly the same gain in percentage terms for the nasdaq and s&p is up close to 1%. it is a thursday morning rally. apple borrowing money. that's extraordinary. instead of dipping into their $200 billion cash pile, they are borrowing more money. why they doing that? >> because they are genius. more is always better sooner in economics. they can get more money by borrowing it cheaper than they can do anywhere else. this is brilliant move on their part. the more they borrow at low interest rates, the more i like the company. stuart: the market likes it. you are up three bucks at $212 on apple. one thing to add? susan: apple tells me they issue bonds because that's how they bring cash back from overseas. you write off the interest, you don't pay the corporate tax rate of 21% and you raise the cash you need. stuart: okay. got it.

got to release some new gadgets tomorrow. that's a new iphone. anything stand out to you, scott? >> well, the fact the phones are super-expensive and the update cycle is ridiculous. i'm one who is still feeling the pain recently of buying a new iphone xs after i held on to my iphone 7 forever until the battery basically died on me. i like the fact they are coming out with more products. the xs is a good phone. i miss my iphone 7. but it's getting more people into that whole update cycle and the phones are expensive, like i said. there's nice margin on them and they can also go more to that service model which i think is the true future of the company, not hardware. stuart: apple's stock has been slowly marching upward. it's now at $212 per share. how about slack? they just issued their first earnings report since they went public and they warned of slowing growth, and the stock is down 15%. it's back to $26 a share. that was the ipo price. susan: direct listing the reference rate so they went public at, yes. stuart: would you touch it with a ten-foot pole?

>> no. i don't like the space they're in. too much competition. my favorite in that space is microsoft. stuart: what does it mean for uber and lyft which are also now below their ipo price? doesn't look good for -- what does it mean for them? susan: what does it mean for wework? >> the whole ipo market. what it tells us is these giant companies have come to market too late. they got a little greedy. the unicorns got too big, too much money from venture capitalists, raising the valuation. they came to market too late and are suffering because of that. >> they lose too much money. that's the other thing, guys. a lot of these companies are not getting, like shah said, the same treatment they would have received say a year ago, when you look at these balance sheets and you're like -- or the income statements and you're like my god, these guys can't make a single dime of profit. stuart: by the way, wework which is going to go public later this year, they have cut the amount of money they are actually raising, they cut it in half. susan: the valuation. ashley: the valuation. stuart: sorry, the valuation. $47 billion to $20 billion. ouch. listen to this one.

three of the biggest names in processed foods are getting into fake meat. hormel, kellogg, for heaven's sake, and tyson. spam. now fake meat. how about that. look, clearly, fake meat is not a fad, is it? >> no. i think it's the future. i love meat, from hamburger to steak, i love it. but i think this is brilliant. i haven't tried any of these products yet. i have a feeling i will love them and will probably move in that direction. stuart: the way of the future? >> absolutely. stuart: scott, chime in, please. >> look, shah, kamala harris would love you this morning because she seems to think the government should tell us what to eat, when to eat and where, in fact on any given day or week. i agree, i think beyond meat thing is an interesting component to a balanced diet but i don't think it should replace what we are so used to which is actually true meat, true food and some of this processed stuff. stuart: it's not going to replace it, i don't think.

ashley: just an option. stuart: it's an increasingly popular option with increasing market share of the meat and fake meat market. susan: that market will grow ten times over the next decade or so. i don't understand why you want processed food instead of the natural foods like meat and vegetables. stuart: good point. check the big board. not quite the high of the day, but almost. we are up 320 points. 1.25% almost. home builder hovnanian reporting earnings. obviously they were good earnings. no, not so good. well, we are up 2%. premarket we were up 9%. something's happened there. we are going to talk to the ceo later on this program today. better numbers at signet jewelers. it's up 27%. palo alto networks, strong forecast on growth, up 7%. the retailer land's end, the story here is they lost less

money than expected. they are up 15%. one report says hurricane dorian could cost retailers $1.5 billion and hurt some back-to-school sales. retail stocks in an overall up market, all on the upside. general motors chief mary barra heads to the white house. i'm pretty sure trade's going to be on the top of her agenda. susan: trade, jobs. stuart: plant closures. bringing back production to america. that's going to come up. look at that. gm is now at $39 a share. languished in the mid 30s for some time. mary barra goes to the white house, upside market and gm gets to $39. how about that. oh, by the way, we get the latest read on mortgage rates coming up at the top of the hour. ashley lives for this. ashley: i do. stuart: scott, if we get lower rates, as ashley and i have been confidently predicting for a long time, we haven't got them yet, will that boost the housing market? >> well, don't sell yourself short. i think you have been constantly

correct on a lot of those. we are starting to see rates finally catch up. i was talking to a couple mortgage guys yesterday. they said rates are coming down sooner than later. that's a good thing. i think it will be good but i tell you what's interesting. for the last six to 12 months, the housing market has been softening especially here in chicago. maybe it's all the violence, who knows. but the reality is that the housing market is obviously one of our biggest balance sheet assets as humans here in the united states. so we have the ability to maybe see that reflation in housing prices. stuart: what do you think? we will get a resurgence in housing? i have been waiting for it. >> i think we will continue to wait. i don't see it happening now. the numbers have been all over the place in terms of new homes, existing home sales, prices have been up and down, so it's a bit all over the place. i don't see a surge in home buying. susan: what if interest rates are cut by 1% going to april of next year? does that become attractive when you are paying close to 1%? stuart: you are talking about mortgage rates coming down by

one full percentage point. that would be huge. that would be. susan: obviously the mortgage rates follow what the fed does. if you are cutting 1% by april of next year, it might be attractive. stuart: i can confidently guarantee if i could get a 30-year fixed rate loan at say 2.5%, i would be there like a shot. susan: okay. stuart: 9:40 eastern time. it's that time, ladies and gentlemen. we have to say good-bye to scott and shah. thank you for joining us. appreciate it. look at this. high of the day. dow is up 345 points. that's 1.33%. yes, it is a rally. the ceo of royal caribbean cruise line is sending ships full of food to the bahamas after dorian truly devastated some of those islands. the ceo of that company is on the show in our 11:00 hour this morning. he's doing some good. we are also talking to the ceo of exponential fitness. they are in a bunch of boutique

workout centers and the classes are not cheap. we have the ceo to talk about that. wait until you hear some of the outrageous classes being offered by public colleges, like tailgating. harry potter. that's not all. we've got a beautiful list for you. stay there, please. val, vern... i'm off to college and i'm not gonna be around... i'm worried about my parents' retirement. oh, don't worry. voya helps them to and through retirement... ...dealing with today's expenses... ...like college... ...while helping plan, invest and protect for the future. so they'll be okay... without me? um... and when we knock out this wall imagine the closet space? yes! oh hey, son.

yeah, i think they'll be fine. voya. helping you to and through retirement.

stuart: we keep going up. right from the opening bell we have progressed to the upside and now we are up 347 points. that's the best part of -- it is now 1.33%. it's a rally. samsung is going to relaunch those foldable phones. susan: that's right.

stuart: wait a minute. this time they don't break? susan: they have been reinforced, yes, reinforced and also, we did have reviewers ripping off the tape, they thought was tape on top of that big screen, so they did some remodeling there. but it's five months since they were supposed to go on sale in the first place. korea will get it first, followed up by other markets in the uk, france, germany, singapore and the u.s. launch will take some time after that. but don't forget it costs $2,000. it's foldable because it goes from a smartphone, there's a tablet but it's not cheap. stuart: no. i paid a lot less than that for my new ipad. i got a state of the art nice ipad. ashley: it doesn't fold over into a cell phone. stuart: fortunately not. let's get serious. california, as we have been telling you, there is a proposal which would turn uber and lyft drivers into full-scale employees which means you got to give them benefits. come in, please, an early uber

investor, mitchell green, who has appeared frequently on this show. welcome back. good to see you again, sir. >> hey, varney. how are you? stuart: okay, green. if this proposal goes through in california, do you think it would kill uber and lyft in their current form? >> no, i don't think so. i think investors are highly overreacting to things as they typically do. i'll tell you why. one, let's not forget actually the cfo of lyft actually spoke yesterday at the conference and i think it's really important, one thing he highlighted is a huge number of lyft and uber drivers, i don't know what the number is for uber, but for lyft, it was over 80% drive less than 40 hours a week. so they actually are part-time. stuart: that's the definition, then? so if you work 40 hours a week or more, then under the california proposal, you would be an employee, you got the benefits. but if it's less than 40 hours, you are okay?

>> that's one. two, this is going to get litigated, as everything in ride sharing does. three, it's not only about ride sharing. there are huge numbers of companies that rely on contract employees, whether it's ups, home care companies, things like that, that are relying on this thing. then i think also, the plan will be if the governor does sign this into effect, i think it's in like mid-october, they are going to put this on the ballot and let the citizens of the state vote and you know in the state of california, you can pretty much get anything on the ballot. i think a huge amount of consumers and drivers would vote against it. all it's really going to do is what it did in new york city. ubers cost more money and lyfts co cost more money. stuart: i'm vigorously against it. i don't see why people can't choose to be independent contractors. >> totally agree. stuart: what's wrong with that? lot of people are telling me hey, stuart, you got to get into this new business, you got to invest in uber or lyft.

i notice that both of them are at all-time -- pretty close to their lows in terms of the stock price. >> two days ago, they were. stuart: two days ago, they were. it's still around $32 on uber, $47 on lyft. okay. i know you are going to tell me to get in there and buy uber at $32. tell me why i should get in there and buy uber at $32. >> i think both uber and lyft at these prices, look, i'm not going to tell you the stocks are cheap if you look at similar valuations especially on a company like uber which is not only ride sharing but is growing their foods business over 100% a year, but what's cheap can get cheaper. just like what's more expensive can get more expensive. i'm not going to call the bottom, especially when you have a lockup coming in three or four months. if you are a longer term investor and you have a two to five-year time horizon, i think these companies are going to be much bigger in five years, generating substantial amounts of profit, than they are today.

you sure as heck wouldn't know it from the headlines but actually in this past quarter, their ride sharing business generated about $550 million of contribution profit. not loss, profit. in the ride sharing business. but the whole driver appreciation award at the top line really obfuscated things along with the stock price so the headlines looked much much worse than the underlying results are. stuart: fascinating. i will consider buying at $32. mr. green, thanks for joining us. see you again soon. okay. another tweet from president trump. it's a short one. here we go. really good jobs numbers. yes, indeed, sir. you are right on that one. 195,000 new jobs reported by adp. that's private sector jobs last month. that is indeed a really good jobs number. oh, look at this. we've got 28 of the dow 30 in

the green. they're up. we only have two losers. coca-cola and procter & gamble. look at that. the dow is now up close to 400 points. it is a headline-driven rally. got it. now, we are following dorian's every move. jeff flock headed back outside for us next hour to show us how bad it is where he is. janice dean will have the latest track of the storm. here we go.

stuart: we've got this just coming at us from facebook. they're launching, is this a new dating service? susan: it's coming to the u.s. because mark zuckerberg announces that earlier this year so facebook says as they promised earlier this year, the rollout is starting with a few new updates that includes safety features and more instagram ints grags a integration and they are working on this match-making algorithm. they match the right people hopefully with the right people. they have all that data so they know what restaurants and type of food you like, where you travel to. you get nice long walks on the beach. stuart: case closed. the stock is up at $190. susan: ch when they announced i it actually dropped because of facebook moving in. stuart: you don't want facebook in your backyard. thank you. check the big board. new high of the day.

look at that. we are up 408 points, better than 1.5%. all good stuff on a thursday morning. now this. we got a new report which says the fitness industry has grown into a $100 billion global business. the parent of brands like club pilates, cycle bar, stretch lab, experiencing really rapid growth as consumers apparently embrace these boutique fitness, embrace that trend. look who's here. anthony geisler, ceo of exponential fitness. you are the guy with all these specialist gyms, specialist exercise. you have club pilates, cycle bar, pure bar. >> we have eight brands all under one parent company. stuart: so i can decide which form of exercise i want to go for so if i want to row, i go to row house. >> you can go all day. everybody at row house is rowing all day. you can do that. stuart: tell me how much?

>> how much what? stuart: how much to get into one of these classes? >> oh. you know, we sell a four-pack, eight-pack and unlimited. if you are on unlimited you can come every day, all day long and row your heart out or dance your heart out. stuart: how much is unlimited? >> it's about $200 a month. we have different tier pricing all across the country. so you of course pay more in manhattan than you will pay in kentucky, right? stuart: i'll bet, you can't -- you're not going to prove this, i can't prove it, but i bet you get a lot of people take out a subscription, unlimited, $200 a month, and they don't go. >> it happens. it absolutely happens. we want them to have it. back in the olden days, they liked them to just work out, not show up, but with the invention of social media and people actually getting results, we want them to come in and get results and broadcast the fact they are there, so we want them to come. we reach out when they're not coming and say hey, come back in and get rejuvenated. stuart: what about peloton? you worried about them? i think they are a bit more

expensive, more upscale than even you. >> yeah, you know, there's always been an at-home workout, you know, type concept and peloton is the new version of that. they have done a great job. but we're not worried about it. just as much as the in-home kitchen kept people out of restaurants, i don't think peloton will be keeping people out of the gym. stuart: nasty jab. >> no, no, no. i love them. stuart: you are a private company. >> yes. stuart: exponential fitness. >> correct. stuart: why don't you go public? >> right now we're trying to build a great business. stuart: yeah, yeah, yeah. you could take all your money. >> i'm still competing. i still love to do what i do. you know, i'm not old enough yet that i'm going to go away. stuart: that's for sure. >> i'm going to stay in the game. stuart: we like success on this program. we thank you very much for being with us. >> thanks so much. appreciate it. stuart: see you soon. bernie sanders says ban fracking all together. joe biden does not push back when asked a question describing fossil fuel executives as committing crimes against

humanity. no pushback from joe. lots to go at from the climate town hall last night. my take on that is coming up next. look at that. dow industrials up 409 points. it's a rally. we've got mortgage rates for you right after this. every curve, every innovation, every feeling. a product of mastery. lease the 2019 es 350 for $379 a month for 36 months. experience amazing at your lexus dealer. when crabe stronger...strong,

with new nicorette coated ice mint. layered with flavor... it's the first and only coated nicotine lozenge. for an amazing taste... ...that outlasts your craving. new nicorette ice mint. . .

stuart: 10, getting interesting economic news. breaking economic data. i'm going to start with mortgage rates. ashley? ashley: whoa, 3.49%, down almost a full. you're disappointed? 3.58 last week. down almost a full point to 3.49%. stuart: that is not down very much. ashley: no. stuart: producer is want asking me, do i want a free house? yes i want a fry point. i'm disappointed. what do you have susan, on the services sector? susan: expansion. remember early on tuesday, i

took down the markets, services argue a bigger portion of u.s. economy, might be more important. stuart: taking the market up, you have 416 point gain. quickly factory orders? ashley: 1.4% that is a positive. susan: good signs. stuart: we have two positive items of news here. michelle mckinnon is with us. i take it that is helping to push the market up? >> absolutely. to susan's point, it is about services, consumer of the consumer represents 70% of the economy. we want the consumer to stay strong. i think services number showed up. stuart: is that what moved the market? before we got the numbers, we were up 380, 390? >> i think also the adp report. the fact they will meet in october. we have a lot of positive news. stuart: if we have strong job market, a strong consumer, why should the federal reserve lower rates aggressively? >> you have other global factors, stuart. stuart: that is what is doing it? >> yes. you don't see much inflation, i

think is a positive thing. they're looking at that as well. stuart: we'll leave it at that. we are up. the dow is now up 430 points. 1.63%. all right, everybody, now this. america has reduced its carbon emissions more than any other major country. america did it largely switching to natural gas? how did we get the natural gas? fracking. that is squeezing it out of shale buried deep in the ground. america is the king of nat-gas practicing. -- fracking. bernie sanders wants to ban it out right. he said any proposal to avert the climate crisis must include a full fracking ban on public and private lands. he is at war with all fossil fuels. even though natural gas, which is a fossil fuel, helped america cut carbon emissions

dramatically. isn't that a contradiction. he wants to fight climate change but ban as valuable tool for fighting climate change. think through the politics of this. think pennsylvania, a vital swing state in 2020. it's a fracking state. over 10,000 fracking wells there, and the industry directly employs tens of thousands of well-paid workers. all of that ends if bernie is in the white house. bernie may be burning his pennsylvania votes. if you want to see how far the democrats have gone with their climate jihad, look at last night's seven-hour climate town hall. seven hours. all the candidates are on board with investigations of the fantasyland "green new deal." what stuck out to me, was joe biden es response to a questioner, the question said flat-out, oil companies are guilty of crimes against humanity. wouldn't you say that is pretty strong stuff? but joe failed to push back at all. he just waffled. it was an ideal opportunity to move away from extremism.

he dropped the ball. tonight, he is supposed to go to a fund-raiser held by hedge fund manager who may have a connection to nat-gas. well now, joe might not go. of the add it all up, democrats are out on a climate change him. they want radical change. they want to turn the economy upside down. they ignore america's success as the real king of carbon reduction. the second hour of "varney & company" continues. ♪ stuart: i need help. i really do. i'm exasperated. brad blakeman is with us. former deputy assistant to president george w. bush. got that. brad, if you watched the town hall last night, if you stuck it out for seven hours you would have seen that the democrat candidates, they're all lining up behind the "green new deal." frankly i could hardly believe it.

what was your response? >> look, it is cruel, inhuman treatment to watch the full seven hours. look after watching that, i just shook my head. the american people are not buying into mandated change. that is the difference. democrats mandate change. republicans innovate change. when we move from the horse to the car, it was innovation that brought that, not mandating legislation. we need to, we should be very proud of our record as you pointed out with regard to carbon reduction. we should be proud that we're energy independent. america is not reliable now to other governments or sources for our energy. by the way, gas is clean. stuart: yes. >> we should be relishing the fact that we have a ready supply of clean energy. but to just with one swath say that energy sectors are out of business, it will mean as bernie sanders said, that americans are

going to pay a lot more. by the way if they get their "green new deal," it will be what, 40 to $90 trillion? stuart: incredible. >> crazy. stuart: unbelievable. i want to refocus on joe biden, listen to this question a youngster posed to joe biden, he was in the audience. he asked this question. roll tape. >> how can we trust you to hold these corporations and executives accountable for their crimes against humanity when we know that tomorrow you are holding high dollar fund-raiser hosted by andrew goldman a fossil fuel executive? >> he is not a fossil fuel executive. there is fund-raiser, given by andrew goldman. western lng. their biggest project was announced in 2018, is a floating liquified facility for natural gas. >> i didn't realize he does that i was told, if you look at the sec filings, he is not listed as one of those executives. >> are you going to look at that fund-raiser tomorrow night? >> i will look what you just told me, to find out if that is

accurate, yes. stuart: what struck me, brad, he did not push back on the young questioner, he said crimes against humanity. no pushback at all. >> this is so terribly unsettling about the democratic challengers. they have bought into this radical nonsense that somehow we have to eradicate cattle, not only because bad for our diet, but hurts our environment. we have to get rid of fracking. totally. this is crazy talk. joe biden, should have been the statesman that he claims he is. stood up against this nonsense, this rhetoric that is absolutely false. crimes against humanity. that is just crazy talk. joe biden should have called him out for what it is. stuart: he should have pushed back real hard and established a better position to argue from. brad, thank you for joining us, sir. i feel less exasperated now.

thank you, brad. michelle mckinnon. vice president mike pence met with britain's prime minister boris johnson tomorrow morning. top of the agenda was brexit. maybe a trade deal between the two countries. >> absolutely. stuart: that will be delayed. >> it will be delayed. thinking about what the markets doing today are the markets responding to that meeting. not necessarily. kind of a headline. more importantly for the short term, what about ex-about it what will happen. stuart, there is opportunity in britain, because you have got phenomenal companies trading much lower valuations than here in the united states. if people can take a sidestep, ignore the headline, actually i think britain is good opportunity. stuart: that take as strong stomach, in the middle of political chaos. >> in the midst of political chaos there is good opportunities. stuart: michelle, thank you very much indeed. good to see you again. check back on the big board. this is real nice rally. stocks rallying on trade optimism, the headline at that that created. more talks coming next month at

the highest level. that is important. the market is up. hurricane dorian has regained strength. it is now again a cat-3 storm. it is thrashing the carolinas. we're there. we'll have a full update for you coming up in just a moment. stuart: and get this, you can learn tailgates, "harry potter," how to solve the rubic's cube in college. ashley: finally. stuart: and get credit for it. who is teaching these courses and why? more "varney" after this. ♪ this is the age of expression. but shouldn't somebody be listening? so. let's talk. we're built for hearing what's important to you, one to one. edward jones. it's time for investing to feel individual.

play it cool and escape heartburn fast with new tums chewy bites cooling sensation. ♪ tum tum tum tums

stuart: don't you love it? we're up 430 points. one and 2/3%. that is a rally. china trade the headline there. actually that is the case. the reason the market is up, china trade talks.

what's the latest? ashley: the chinese vice premier as well as u.s. tread robert lighthizer and treasury secretary steve mnuchin spoke by phone today and they have agreed to resume trade talks sometimes next month. we're seeing a nice boost to the market. encouraging they're getting back to the negotiating tables. a lower elf prep session will happen this month to set it up. that is good news. stuart: that is the headline. ashley: this is the 13th round of talks since january. stuart: maybe it will do the trick. that is the headline. market straight up. ashley: exactly. stuart: got it. we have to bet back to hurricane dorian, a cat-3 storm heading for the coast of georgia, south carolina. jeff flock in charleston, south carolina. how far away from the eye of the storm are you and what are conditions like? reporter: we are about 40 miles or so we believe right now away from the center of circulation. and, you can see the conditions. fortunately, i will tell you, i don't think this will be a wind

event in charleston but as perhaps you can tell, this is already a water event here. this is some of the street flooding throughout the downtown of charleston this is one of the lower points of the city. but they tell us when this starts to flood, you know, look out elsewhere. we're still four hours away from the high tide. and that is what a lot of people are very concerned about. officials just brought this pump in. maybe martin spins around to see this. they are prepared. these guys, this is not the first rodeo when it comes to hurricanes. so they know how to fight them. and fortunately they're not going to have to fight one that, i think it is going to be catastrophic. that is the headline. that is good news. bad news, if you have one of these houses on one of these streets, maybe you're not so happy about it. stuart: jeff, always in the middle of it. we'll be back to you shortly on this program today. thanks, jeff flock. you want to hear something good about the storm? we have a good news item.

royal caribbean, cruise line, sending millions of dollars and money and food to the bahamas. taking a ship to go there. the ceo on the show next hour. the pentagon as we know approved the diversion of 3 1/2 billion dollars worth of money to fund the wall. a "washington post" article says that is a blow to puerto rico. we got the story coming up for you. ♪ so ...how are you feeling?

on a scale of one to five? one to five? it's more like five million. there's everything from happy to extremely happy. there's also angry.

i'm really angry clive! actually, really angry. thank you. but what if your business could understand what your customers are feeling... and then do something about it. turn problems into opportunities. thanks drone. customers into fanatics change the whole experience. alright who wants to go again? i do! i do! i have a really good feeling about this. that could allow hackers devices into your home.ys and like all doors, they're safer when locked. that's why you need xfinity xfi. with the xfi gateway, devices connected to your homes wifi are protected. which helps keep people outside from accessing your passwords, credit cards and cameras.

and people inside from accidentally visiting sites that aren't secure. and if someone trys we'll let you know. xfi advanced security. if it's connected, it's protected. call, click, or visit a store today. stuart: we keep going up. we started with 300 point gain. now we're up 472 points, rising as we speak. we're up, now 479.

1.81% higher. the dow at 26,800. i'm trying to do the math here. that means we're about 7 or 800 points away from the all-time closing high. susan: in july. stuart: going the other way however, slack. they posted stronger revenue in the earnings report. oh, boy, they reported a slowing pace of growth in the future. they are now below their ipo price which was 27. now they are 26. san francisco has declared the nra a domestic terrorist organization. i think they're urging other, board of supervisor says they're responsible for some of these mass killings, they are urging other cities to follow suit. the nra, terrorists. that is what they say, not me. president trump has something to say about walmart and sale of ammunition. susan: sale of ammunition to handguns and assault rifles. customers, don't carry your guns into our stores. since we have a businessman president here is his thoughts

on walmart's actions. >> that is up to walmart. hey, they're very smart. they had a tremendous quarter. they just announced tremendous numbers which, tells you how well our country is doing. sort of like the ultimate poll. but walmart announced numbers that were shockingly good, very proud of them, from that standpoint, from the standpoint of what they're doing with ammunition and guns, you would have to talk to them. susan: walmart, largest retailer in the world. one of the largest employers across the country. the fact that they are ending the sale of ammunition after the shootings in el paso and odessa, the president gets it. stuart: look at the stock. i think that is a high. $117 a share. investors like what they're doing, obviously. we have hormel, spam, kellogg cereals, tyson getting into fake meat. ashley: rubber chicken? , stop it. ashley: hormel will come out with a new brand called happy

plants. plant based using gmo soy. kellogg has a new line, incomeato. stuart: clever. ashley: they are coming up with new stuff. stuart: new study. ashley: out out of the okay. stuart: okay. vegetarians might have higher risk of stroke than meat eat is. ashley: wouldn't think that, would you? if you eat a lot of meat you're at risk for coronary heart disease. this study showed, vegans, vegetarians have 20% higher risk of stroke than meat eaters. stuart: ouch. ashley: they're not sure why a particular stroke is hemorraghic stroke, it comes out of artery goes into the brain. they don't know why. one theory, the cholesterol levels are so low this is what is being, that is causes stroke.

stuart: give me a little cholesterol. ashley: that all i'm asking. stuart: forget the lipitor. give me a steak. got to get back to facebook, launching a dating service. i think that is in america now, right? susan: launching today. going from likes to love. stuart: today? susan: yes. this is something facebook announced a year ago but it is a reality now. the stock is up in reaction to it. iac which owns match.com, tinder, down in the session, selling off in the up market, right? when a big player like facebook that has over 2 billion monthly active users, of course, you know, gets into the matchmaking algorithm competition that is pretty tough to compete with, right? stuart: watch out. ashley: absolutely. stuart: look at this, not quite the high of the day, but i will report it anyway. we're up 476 points.

i'm reliably informed we're 570 points away from the all-time high. coming up we have a guy who is worried about a recession. what? worried about a recession? the market is up 470. but we will let him make his case. netflix considering a change to the binge watching culture. will airshows weekly. i got netflix on my ipad. i love it. we'll be back, i promise you. ♪ i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk.

they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ inalso available in hybridts kind leall wheel drive.sport. lease the 2019 ux 200 for $329 a month for 36 months. experience amazing at your lexus dealer.

♪ stuart: i don't know the title of this but i like it. susan never heard of it.

susan: you don't know the title of this song? stuart: true. susan: wow. stuart: got to get you into my life. thank you, producer, put it in my ear. got to get you into my life. ♪ of i love it. stop the music. we have lunacy from england for. >> it is perfect. stuart: a mandate going out there what you must have in a new house. ashley? ashley: electric vehicle chargers. oh, yes, every house has 20 come with one. why? they plan to do away with all petrol, diesel vehicles by the end of 2040. if you have some sort of network out there, it should begin at the moment where you have all these electric chargers ready to go. build building new homes, they call them wall chargers in the uk. you plug your car n it is legislation. i wouldn't be surprised if it passes. there you go. susan: is the government going to subsidize for the cars? ashley: no. they do offer subsidies right

now but i think everyone will have to use these things because, as i say, in 20 odd years, they want to do away with petrol and diesel. stuart: i hope bernie sanders is not watching this program because -- ashley: he will think what a great idea. stuart: he will want it right now. subsidize everybody, except us. check the big board, we're up 430 points. that is 1 and 2/3%. it's a rally, cast closed. i think the market is rallying on trade optimism. talks with china will resume next month. they will be high level talks at that however, our next guest says he is worried about a recession because of tariffs. brian demetro vick with us, economist at laffer center. what happened to you, brian. you used to be mr. optimism. sky is the limit. here we go great economy, now you're worried about a recession? we'll let you make the case. >> stuart, the tax reform was beautiful thing taking corporate rate down to 21%.

it is getting a little old. it was two years ago. we need some more. we need free trade, another tax cut, decrease government spending that is what the market wants. we need to it keep going. stuart: we haven't seen much impact from the tariffs thus far. most consumers hardly notice it if at all. it has had no impact. >> i think businesses are mainly worried about what the future fiscal profile is. if we're not going to have spending reform, which we're clearly not. we're not going to have further tax cut, business is going to want something. and if we're not going to have tariff reform. it has got to be there. so if we had another tax cut, the kind of thing that ronald reagan did in the 1980s, one tax cut after another. we're on a permanent path of growth. stuart: let me straighten this out. you're saying if we don't get a deal with china, that if these tariffs remain in place, or are added to, we will go into a recession? is it straightforward as that? >> no it is not because we can

make our economy more competitive. we have some people sitting on the sidelines still waiting out because of the barack obama sluggishness. if we had capital gains rate cuts, a marginal income tax rate cut, cut in government spending, we could have a permanent boom like we did really from 1982 to 2000. stuart: i'm with you up to a point, brian but you will not get any kind of tax cut next 15, 16 months before the election, will not happen, is it? >> if you have net zero, tax cut of 2017, increase tariffs, you have net zero. you have to get beyond net zero to get beyond barack obama's economy f we do that we'll be on permanent -- stuart: you keep saying if we do that i'm telling you we will not do that in the foreseeable future, so if tariffs remain do we go into recession? >> mr. market often gets what he likes. i'm not going to say we're not going to get any of that stuff. stuart: come on.

you know as well as i do there will be no tax cut period from a house controlled by the democrats, period, not going to happen. you know that! >> well, i would say if there were a payroll tax cut on the employer side, that would be a supply side tax cut. if more jobs mean less government spending because less welfare and so on, that is the equivalent of a supply side permanent stimulus on the economy. i think there are actually some structural reforms that can take place in lieu of progress on tariffs. stuart: okay. only time will tell as they say. brian, thanks for coming back to us. we'll get back to you very shortly. promise you. okay. we still have the dow up 430 points. it is still a rally, 26,790. five, 600 points away from the all time closing high. there is a market for you. let's get back to netflix. they are testing a new way of releasing shows, susan.

susan: binging introduced by netflix into everyday lexicon. you recently joined the binge viewing. i appreciate that. lots to change by the way. netflix is testing new release models, only for two shows in fact in the uk. they confirmed this, saying the great british baking show, rythym and flow are offering on weekly basis. stuart: why would they do that? >> depends. rhythm and flow is reality game show. they need to keep it going, so you don't guess who winners are. takes a while to figure that out. netflix says we're not doing that with any other show. meantime disney apple, hulu, amazon, they are on a weekly release schedule. as bob iger has said, netflix can release all the episodes at once because they have the luxury of doing that with tons of content, spending $10 billion to make new content each and every year. stuart: wait a minute. if i got hulu or amazon prime on

my brand new ipad -- susan: disney plus. stuart: i can't? susan: now can't. marvel's loki, disney streaming plus, six episodes, comes out in six week basis. stuart: what about amazon prime? you can't bing? you can't watch one episode after the other. ashley: most of them you can. stuart: most of them you can. susan: it is old content. the ones they release themselves, will be on weekly basis. even though i should point out chief content officer said appointment view something dead. no one tunes in to watch somebody at 8:00 p.m. ashley: except for "varney & company." stuart: tune in 9:00 a.m. five days a week for "varney & company." we are appointment television. ashley: we are indeed. susan: but are you on tivo, roku? stuart: what? got an ipad. next stop, roku. could be. ashley: maybe. because i like this streaming

game. you're going out on an edge. i am impressed. stuart: i am mr. technology all of sudden. somebody told me all of sudden i have to get an apple watch. that is highly unlikely. why am i seeing goldman sachs? i tell you why. "the wall street journal" reports that a dozen goldman sachs partners could leave by the end of the year. got to tell me why. ashley: at least a dozen, 15% may leave this year. they're trying to cull the number of partners in the company. i mean i hate to use the word cull but that is exactly what they're doing, ever since the ceo, david solomon look over less than a year ago. he believes the partnership ranks are pretty bloated. they want to ching -- change the culture and acclimate towards rainmakers. those producing a lot of money for the company. it has taken off, it doesn't have the cachet is used to have. susan: no. ashley: he is trying to reduce the ranks, making it more -- stuart: why are you so emphatic

about they're going to slim the ranks? susan: younger generation person, basically the problem with goldman sachs and other banks that young people can't move up because the partners have been made partners all these years, they're not retiring off. so those positions and those partnerships are not being open to those that should be promoted. they had 500 partners last year. that is twice the amount they had 20 years ago. stuart: that is a bloat. susan: it's a bloat. stuart: would you like to leave us to become a partner at goldman sachs? susan: well -- ashley: wouldn't turn it down. susan: would give it a thought definitely. stuart: i'm putting you on the spot. sorry about that but i'm enjoying it. listen to this one, faculty at kansas university, they want chick-fil-a banned from the campus. wait until you hear why. we'll deal with it coming up shortly. that is a promise. ♪ we trust usaa more than any other company out there.

they give us excellent customer service, every time. our 18 year old was in an accident. usaa took care of her car rental, and getting her car towed. all i had to take care of was making sure that my daughter was ok. if i met another veteran, and they were with another insurance company, i would tell them, you need to join usaa because they have better rates, and better service. we're the gomez family... we're the rivera family... we're the kirby family, and we are usaa members for life. get your auto insurance quote today.

stuart: rally holds, plus, 468 points. i call that a rally. up 1.78%. big gains. you will not believe what courses are being offered at some schools. i will take you through them. i will give you a taste of some of the lunacy. i call it lunacy. we'll see what you think. university of south carolina offer as tailgating 101 class and anime writing class. we'll see what it is. berkeley, how to solve the rubic's cube, adulting, no less than a class on pokemon. i want to bring in campus reform's emma michelle. my first question is, do these colleges offer credit towards your degree by taking these courses?

>> unfortunately i am not happy to report that they do. actual students showing up to school hoping to get their business degrees, to learn things that will help them in their career, the tuition they pay is worst just the same as much as people who want to take a course in in anime. this shows how ridiculous college campuses are getting. we've been reporting on this a long time. in my new op-ed on campus reform.com i break down what is happening. concerning that 2020 democratic candidates are proposing at this moment, free college, tuition-free college, debt forgiveness for programs like think, good point. if i ask you why are they doing this, let me answer it myself. they're making it much easier to get a degree to graduate. isn't that it? how can you fail pokemon? how can you fail belly dancing or something. i suppose you can? how can you do it? >> what this is doing, cheapening value of a college degree. stuart: yes.

>> used to be something you can go, prove you learned things, be prepared and equipped for the workforce. now it's a rite of passage. people go, hang out for a while, they lee. they are supposed to be prepared for the real world. in reality they are not. this is disservice, two for one, that taxpayers have to fund this also for serious students that want to get a education. it is very unfair to them. they're being forced to feed into this just like everybody else. stuart: has it always been like this? >> no. stuart: we seem to be reporting on this kind of i call it crazy courses very recently. i don't remember reporting this kind of thing 10 years ago, 20 years ago. >> there have been always wacky things happening in higher education it has gotten especially extreme. in the past decade we have been reporting a lot on this at campus reform. in the last couple years it definitely has gotten more extreme. we're seeing things that seem like a complete waste of time this is extra concerning givenning the democrats want to guarranty federal funding for universities forever.

you know, we know that higher education is not too big to fail. and we as a taxpayer shouldn't be asked to bail it out when it is not proving it is worth anything. stuart: isn't it an argument for three-year college degrees as opposed to four years? >> certainly. i think there are a lot of different ways that students can sort of finesse the education system, figure out the best way to get in, learn what they need to learn, get out. i know plenty of people who graduated in three years. i definitely think it raises a lot of questions about the status quo within higher education. it is time to start being more critical of that, not accepting colleges to what are they are giving us now. stuart: one more for you, emma. the faculty at the university of kansas wants to ban chik-fil-a from campus, they say it violates safety and inclusion. what is your comment on that? >> yes. they're calling chik-fil-a a bastion of bigotry which is absurd. the third most popular restaurant in america. i think a lot of people really enjoy having it on campus. ask any college student they

will tell you love chik-fil-a. this is left-wing bullying. choosing a business where they don't like the personal views of its owner. they're choosing to say causing them to be unsafe. that really is concerning. it is also plays into this thing we've been seeing even this week with this "will & grace" actress debra messing she doesn't want to work with people that went into a trump fund-raiser. this there is blacklisting of conservatives going on right now. that is very concerning. it has potential for very harmful ramifications in our economy if people are banned from, you know, engaging with businesses that they like, just because of the personal views of the owner. i think that is very destructive. stuart: also intellectually as lame as you can get. >> absolutely. stuart: thanks for joining us. come back soon. i want to hear more about this. >> sure. stuart: rally is keep holding. benefit of our radio listeners we're up 1.73%. 26,812. a few hundred points from the all-time high. we're up 458.

the pentagon approved the diversion of 3.$6 billion worth of pentagon money to fund the border wall but a "washington post" article calls it a blow to puerto rico. we'll ask our defense guy about that one. he is next. ♪

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

stuart: all right. i keep saying it but the rally is holding. we're up over 400 points. 1 and 2/3%. we're at 26,800. that is a rally. we have the pentagon. they will divert $3.6 billion to fund the southern border wall. "the washington post" says this will cut funding from military bases in 23 states, 21 countries, three territories, 127 military construction projects will be affected. former assistant secretary of defense roger zakheim is with us. do you think this hurts the military, roger? >> that depends what happens next. this money wouldn't be spent until the next fiscal year. really depends whether congress will restore the funding when they appropriate fund this year. stuart: what about puerto rico? "washington post" says it hurts

puerto rico, does it? >> this is battle of priority between the president and congress. president will take some funds that weren't going to spend this year, betting congress restores funds next year. president is hoping to have his cake and eight it too. depends what the congress does next. stuart: is this a constitutional question, whether the president can spend money on that when it was appropriated for that? >> it is actually not a constitutional question. it is pretty much agreed this is lawful. it is debate over policy. congress allows moving monies around below a certain threshold. that is what the president is doing here. it is not a question about lawfulness. a question of the wisdom of action. the president is making a bet, his secretary of defense making a the about, that congress will be able to put the money back next year because the funds allocated for puerto rico and elsewhere was not spent this year. president views this as emergency. the secretary of defense will carry out wishes. stuart: do you think this is a good thing? >> i don't think it's a good thing if it means money will not

be restored. lot of members of congress are showing that concern. secretary of defense would probably agree with that. he is hoping the money will be put there when the congress debates spending returning to the summer recess. stuart: i would disagree with that. if you take a little bit of money from 127 different projects, i can't see that is serious concern, building a wall to me at least is serious concern, it's a security issue. >> without debating merits of the wall, what are you taking away. little. amounts money here and there, add up to big amounts money. you have trust of congress. congress says we want spent on military construction sites, puerto rico and elsewhere. the question are those needs going to be met? that is a key responsibility of secretary of defense and military, make sure men and women, military installations are funded appropriately. we have a battle of priorities here. the drama will continue. it will play out in congress this year. stuart: roger, thanks for joining us. we appreciate your perspective

on this one. thank you very much. staying on the border. bring in daniel garza. he is with us. welcome back to the show. according to the feds illegal border crossings are down 62% from may when they were at their peak. is this because mexico stepping up their game? >> no question, mexico has mobilized 25,000 troops along the southern and northern parts of their border and are doing much more on the interception area. also of course the policy of keeping a lot of folks seeking asylum in mexico and then of course adjudicating, processing them while in mexico has helped tremendously with the flow of folks along the border. stuart: looks like the president asked for mexico for help, demanded help, looks like they come through. >> this is a short-term fix. we need to get to a long-term mix. we need immigration reform. this will continue. the folks kept there because of a aislee requests is causing a

backlog of folks who actually entered u.s., been spread out throughout the entire united states. it's a short-term fix. there is no question it has reduced the number of folks crossing illegally. stuart: we have new numbers on president trump's approval among hispanics in some key battleground states like wisconsin, michigan and they have taken quite a it had. they have dropped like double digits from where he was with the hispanic vote in 2016. how does the president get that back? can he? >> keep in mind, florida, for example, shows a drop but 1% drop. there has been obviously a lot of messaging coming from the presidential candidates on the left as well. stuart: yeah. >> the president needs to remind latinos of the opportunities that have been unleashed under his administration because of less taxes, less regulations, energy production, scotus picks, on education, what he is doing with school choice is important. latinos embrace that. the democrat presidential candidates running in danger running far left where

minorities are, both blacks and latinos. we're starting to see that. he needs to remind them of the achievements. what is the agenda coming next to unleash prosperity and unleash production in the private sector. without advances in production we don't have job opportunities. stuart: do hispanics in the united states, do they agree with sanctuary city and sanctuary state policies? >> look, there is no question that latinos believe in providing certainty to folks like dreamers and 11 million that are here. they also believe in border security. we need to control who comes into our country. and what are going to be the policies that will institute that. now we haven't seen any kind of major legislation that allows for certainty and security. i think that is what they're waiting for. that has been a disappointment with the trump administration. also the trade discussions, trade war has been protracted now. that is causing uncertainty as to whether there is going to be advances in production in the future. stuart: hispanics would surely want usmca, the new nafta.

surely hispanics would vote -- >> along the border states like california and texas. keep in mind john cornyn won the latino vote. governor abbott got 44%. we have gone bush 55%, mccain 55%. romney, 25%. trump got 34% of the latino vote. stuart: is that just in texas? >> that is just in texas. he is 20% in texas. there is danger signs. he needs to remind them what he has done, what he will do as well, instead of distracted rhetorical attacks on individual americans. stuart: do they not like his style? >> i'm not so sure about the style but policies have been spot on. they have created a lot of job opportunities for the latino community and that is the winning message. stuart: would you say that you are a strong trump supporter? >> i am a strong conservative. i have been very pleased with his policies. very pleased with his policies especially exactly, lessening

the tax burden, lessening the regulatory burden, defense of free speech is so important and critical right now especially in our universities. that has been important, empowering latinos to have school choice, the choice of their school for their children to have a quality education, which i think is the most important thing we can do for our children. stuart: as things stand now, nationwide, what proportion of the hispanic vote goes to president trump if the election were held now, what proportion? >> i will give you an anecdote real quick. my son went to birthday party of mexican-american friend in south texas border. they brought out a trump pinata. they were barking thing. man, you guys really hate trump. are you kidding. we'll vote for him and we'll vote for him again. stuart: that is a good anecdote. there is a lot going on. it is very complicated when it trump relationship with latinos. the policies are spot on. he is creating job opportunities

and record employment for latino community. they see that that is the winning message. he needs to stick. right now democrats are going far left like i said of minority communities. and that's an opportunity right now for the trump administration. stuart: daniel garza, always comes through. always a pleasure. thank you. >> my pleasure. stuart: apple, they got what, $200 billion of cash on hand? they got it ready to spend if they want to. so why are they borrowing more money? because these days money is cheap. i will explain that one. cnn hold as seven-hour long town hall on climate change. the highlight? joe biden's response to question on fossil fuel company executives being guilty of crimes against humanity. he didn't push back at all. bret baier on that in the next hour. dan heninger here, politics at google mirrors politics of the

entire country. he will explain during a power packed third hour of "varney & company." ♪ that's why, your cash automatically goes into a money market fund when you open a new account. and fidelity's rate is higher than e-trade's, td ameritrade's, even 10 times more than schwab's. plus only fidelity has zero account fees and zero minimums for retail brokerage and retirement accounts. just another reminder of the value you'll only find at fidelity. open an account today.

stuart: right out of the gate at 11:00 eastern time, we better check that market. it makes good reading. we are up 445 points now. right there at 26,800. the dow is up 1.69%. now, it being 11:00 eastern, this thursday morning, we've got the latest read on how much oil we've used, how much is still in storage. grady trimble, the numbers, please? reporter: yeah, the number just came out. the expectation, you can see up there, drawdown of 2.4 million. the actual, a lot more than that, 4.7 million barrels. what that's doing now is driving up the price of crude oil at $57.60 a barrel. so that's good news for the industry. another good thing for oil is the china trade talks that are

back on with the united states and from what we're hearing here today from our analysts, this could be the last pure report that we get because the hurricane is going to affect the reports in the coming weeks. stuart: grady, thank you very much indeed. we have drawn down, used, 4.7 million barrels of oil. that's a pretty strong demand side there. that's pushed the price of oil up to $57.62, 68 cents a barrel. price is up. the dow, though, still holding to a 450-point gain. no response to the oil news. but oil is up. all right. now this. apple has about, what, $210 billion in cash. so why is it borrowing yet more money? you may well ask. apple is not alone. a host of blue chip companies are jumping on the cheap money bandwagon and borrowing by the billions. just on tuesday, big name companies borrowed in one day a total of $27 billion. that was followed by a borrowing

binge on wednesday. disney, deere, coca-cola, anthem, they all issued bonds, in other words, they all borrowed money. what is going on? that's easy to explain. money's as cheap as it's been in years, because of interest rates. that's the cost of borrowing. they sunk to historic lows. so why not replace your old high rate debt with new cheap debt? it's called refinancing. homeowners do it and now corporations are doing it. virtually free money is very attractive, even if you are flush to start with. so what's the result of all of this? well, first of all, these big companies can reduce the cost of their debt. that should help their profits now and their expansion plans for the future. and it will also bring yet more money into america. in europe you get no interest. you don't even get all your money back when you make a loan. of course, you are going to look for some place that's safe and pays at least some interest. that's us, america. you don't think investors will

scramble to lend money to super-safe apple and get a near 3% return? now, it is unusual to have a strong economy and very cheap money all at the same time but here it is. it is now. just look at those blue chip american companies jump in quick and suck the money in from all round the world. it's a good thing. the third hour of "varney & company" about to begin. stuart: we have been holding at this level for some time. that is a gain of 400 points for the dow, well above 26,700. just look at the nasdaq. that is up 134 points. major rally there. that's a 1.69% gain. heather zumarraga is with us. she watches the markets along with our other experts. look, i say that this rally today is the result of the china

trade talks which will take place next month and what people are saying is the near certainty of a rate cut coming from the fed. anything to add to that? >> yes. i would have bet on the rate cut coming from the fed. i know wall street wants it but our economy does not warrant that right now. it's a positive revelation that u.s. trade officials are meeting with chinese trade officials early next month but look, jobs, the adp report this morning, 195,000 as well as the jobs report tomorrow for non-farm payroll i expect to be around 150, holding the unemployment rate near historic lows, 3.7%. doesn't warrant a rate cut except for the fact that globally, people have an insatiabin sas insatiable demand for yield so they are gobbling up our bonds. the u.s. economy is on solid footing. stuart: that's something kind of new, isn't it. a couple weeks ago we were all talking about recession coming down the pike at us.

has there been a turn in sentiment about the strength, the underlying strength of this economy? can we say this economy is frankly the best in the world? >> oh, absolutely. absolutely it is. that's why people abroad, global investors, are flocking to the u.s.'s flight to safety, flight to quality and that's pushing our yields lower. so if the fed does lower rates, i think that is the only reason it should lower rates because our long-term rates are so low that, you know, they've got to adjust. that's why they would be cutting short-term rates. this is a brand new dynamic. i think if you look back a few weeks ago and how other media outlets, not on your show, not you, were talking about the u.s. economy, they were floating the term recession left and right. there is no recession in sight. our labor market and the strong consumer is our saving grace here. stuart: i read your stuff and i believe that in tomorrow's jobs report, it comes out, what, 8:30

eastern tomorrow morning, you are expecting 160,000 new jobs. you know, that doesn't seem very strong to me. i remember the days when you were getting 200,000, 300,000, 400,000 new jobs per month. long time ago, but that's what i call strong. 160,000 to me doesn't make it. >> well, i hear you, that's a strong argument because last year, there was an impressive pace of new jobs added because people are coming off the sidelines. that participation rate is increasing of people that want a job, they are confident about the outlook of the u.s. economy so they are saying let me go out and get a job, it's a good time to have one right now. but 160 is still a healthy pace of jobs added, holding the unemployment rate at 3.7%. you have wages rising also. i think 160 will be good enough for the markets and surpass wall street and analyst expectations. stuart: only time will tell. we will see at 8:30 tomorrow morning.

you're not supposed to say that in journalism. you're not supposed to say only time will tell. can't say that. >> no. right now. it's happening right now. stuart: yes, it is. heather, thanks for being with us. always appreciate it. thanks very much. i've got some individual stocks we really ought to check for you. how about slack. that's the workplace messaging guys. the stock is down big. they made their first earnings report after their ipo. they came out with that after the bell yesterday. profits were solid but they gave a gloomy forecast. they are having trouble with growth and innovation. the stock's at 28.53, down 8%, barely above their $27 ipo price. check home builder hovnanian. reporting profits. i'm going to be talking to their ceo about the numbers later in the show. the stock is really doing well. it's up 16%. i guess our guest will take a victory lap. we are all over dorian, heading towards the carolinas, getting bad. jeff flock is there. i believe he's near charleston.

he will tell us what it's like right where he is. it's going to be bad. joe biden on the late show with stephen colbert. colbert took him to task on his recent string of gaffes. you will hear what he had to say. we also have to get to that seven-hour marathon climate crisis town hall. seven hours. bernie sanders says we have to ban fracking all together. extraordinary stuff. and of course, big story today and every day, your money. it's a rally. we are all over it. ne next, our guest says the biggest risk to this market is politics. that's interesting. third hour of "varney" just getting going. ♪

stuart: we're talking hurricane dorian and now it is a cat 3 storm again. watch its track right there.

heading for the carolinas, where we find our own jeff flock. jeff, you reported for us an hour ago. are conditions worsening since your last report? okay. jeff, i don't know whether you heard my question. i think i'm just beginning to hear you. you reported for us one hour ago. have conditions worsened where you are since an hour ago? can you hear me? reporter: i did hear you. yes. i got you. i had you all the way. unfortunately, we lost a battery so we had to replace the battery. there you go. conditions now compared to what they were, you know, this has not been a terrible storm. it was a cat 3, now downgraded to a cat 2, but we weren't even getting cat 2 conditions, to be clear, in terms of wind. but lest anybody think hey, this was nothing, i only need to show you some of what the storm has

wrought. you typically get to see the red/green stoplights up close and personal. that's some of what the storm has wrought. there have been high gusts of wind, not big heavy sustained winds, so that's interesting. look at this. martin, come over here. you never get to see a traffic light this close. it's always way up in the air. how about that. that's how these things work. got a little thing on them. look at that. well, anyway, it's unpleasant out here but i think it certainly could have been a lot worse had this track veered as the nhc had warned, more to the west. stuart: it looks pretty bad but certainly not catastrophic. that would be my judgment sitting in a studio in new york city. reporter: when you look at those pictures from the bahamas, obviously nothing can compare to that. no, this was not at all catastrophic.

i think everyone is saying we will take this one any day. stuart: jeff flock right in the middle of it inspecting traffic lights for us this morning. thank you very much, jeff. see you again real soon. we are going to go back to your money and how the rest of the world might be affecting our money. the chairman of thor equities is with us. we welcome him back to the show. first, what's happening in the rest of the world at this moment for our market dominated by the china trade talks which are back on again next month. i think that's a positive, don't you? >> certainly. i was the one, if you remember, about a year ago that was very very bearish on an early resolution but a confluence of things are coming together at the same time, mostly china-based. china's got a slowdown in their economy, they've got some political issues as we know in hong kong, and last but not least, we've got the communist party meeting coming up. stuart: you think that pushes them towards some kind of deal? >> yeah, and probably -- listen,

as the president of the country is criticized greatly, i would say his weakness is not understanding the chinese culture, the need to show face, but he also had to understand the fact when negotiating with chinese, traditionally students of that culture say patience is a virtue. he's carrying a big bat. patience is the virtue. i would say there are other forces that scare me more in the world and still relate to politics. i often think of james carville's guidance to clinton. he said it's the economy, stupid. well, my message to everybody in the business world and even political would be the reverse. i say it's the politics, stupid. so goes the political atmosphere and so goes business. i think one of the greatest examples is live today. first we saw it a year ago in mexi mexico, with the economy starting to weaken, stock market fall. the best example was two weeks ago in argentina, when everybody

saw the fall in the polls, you saw the stock market crash, you saw currency crash. stuart: their market, their currency. >> yes. but because of leftist politics. you know, i'm a hypocrite because i'm a political independent. extremism i view as the biggest risk to the political world, even greater than the china trade situation. stuart: but that's not bitten us yet. you're right, leftist politics is rearing its ugly head all round the world from venezuela, i guess you could call iran kind of leftist, i guess you could, argentina, mexico, but it's not biting us at this point. not at all. >> you know, the other issues, be it iran, north korea, conflict south korea versus japan or kashmir, that's more global conflict type of issues. that's a risk we can't guesstimate. we have to pray we don't have nuclear conflict, et cetera, et cetera, but in terms of who wins

the leadership of the various countries, yes, that can have a big influence on business and the economy. stuart: i'm not going to invest my money now on the basis of a perceived leftist threat in some parts of the world down the road. >> you ready? that's what you say because you are managing live tv that's driven by today's politics. i want to see what you're going to say in one year from today if you even get a whiff of leftists having any chance of beating the trump or a pro-business presidential candidate. does that make people suddenly pull back -- if you look at argentina, they didn't even have the final election yet. all it was was the primary run, where what they thought would be the frontrunner macri came in number two out of five people and the stock market literally cratered. people cannot afford to pay for food over the last two weeks. stuart: by the spring of next year we will be in the middle of primaries.

by the summer we will have the conventions. you are telling me if there's the slightest hint that the left wins the presidency in 2020, i should sell? that what you're saying? >> i would say yes. the most extreme leftist. again, i'm a political independent, i'm neither republican, i'm neither democrat, but if we hear too much negative business rhetoric coming from the politics to be able to win their primaries or win the final campaign, yes, i think that puts the business environment in general in the united states and so goes america, so goes the world. stuart: i think you're right. i do. i do. come back in a year's time and see what i'm saying. because i will still be here, god willing. joe, a pleasure to have you back. thank you very much. >> welcome. stuart: check that market again. pretty stable throughout the session. ashley: good place to be stable. stuart: good place to be stable when you are up 400 points. we will definitely take that. 1.65%. now this. the "wall street journal" released a list of the top

ranked colleges in america. m.i.t. came in second. okay. here we go again. it's the third hour. this is the kind of thing we do. which school came out on top? we aren't going to tell you until after the break. ♪ this is the age of expression. everyone has something to say. but in a world full of talking, shouldn't somebody be listening? so. let's talk. we are edward jones. with one financial advisor per office, we're built for hearing what's important to you. one to one. edward jones. it's time for investing to feel individual. managingaudrey's on it.s? eating right? on it! staying active? on it. audrey thinks she's doing all she can

to manage her type 2 diabetes and heart disease but is her treatment doing enough to lower her heart risk? [sfx: crash of football players colliding off-camera.] maybe not. jardiance is the number 1 prescribed pill in its class. jardiance can reduce the risk of cardiovascular death for adults who also have known heart disease. that means jardiance can help save your life from a heart attack or stroke. plus, jardiance lowers a1c and it could help you lose some weight. jardiance can cause serious side effects including dehydration, genital yeast or urinary tract infections, and sudden kidney problems. ketoacidosis is a serious side effect that may be fatal. a rare, but life-threatening bacterial infection... ...in the skin of the perineum could occur. stop taking jardiance and call your doctor right away if you have symptoms of this bacterial infection,... ...ketoacidosis, or an allergic reaction. do not take jardiance if you are on dialysis or have severe kidney problems. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. lower a1c and lower risk of a fatal heart attack? on it with jardiance. ask your doctor about jardiance.

the type 2 diabetes pill that's on it. learn more at jardiance.com

stuart: which are the top colleges in the country? according to the "wall street journal." we told you number two. deirdre will tell us number one. deirdre: harvard, not a huge surprise to people, but you have m.i.t. two, yale, upenn, princeton on the top five list. cal tech tying with princeton. the "journal" went a little further than just bragging rights and branding. they actually went into how much do you make when you graduate, what's your debt burden. they tried to answer some serious questions. there still is a premium, if you have a four-year degree over somebody who doesn't, but for most people when you have so much debt, it's eating into that so they say that's something to keep in mind. best quote in the article, treat college as a potentially risky investment that it is. stuart: that's good. i like that. deirdre: best bang for the buck? city colleges, city university of new york. ashley: there you go. stuart: nice to know since we

live in new york. deirdre: your tax dollars are at work. stuart: whatever you say. let's take a look at facebook. wait a minute. they're starting this new dating service today? ashley: they are indeed. for people 18 and older, you can actually, it will appear ace s new tab, you can opt in and create a profile and off you go. then you can -- you can actually kind of poke people you might be interested in and all of that. i know. thank you. oh, good grief. it allows you to send those likes and corresponding messages. facebook themselves apparently will give you, based on your profile, your interests and everything, they may give you suggestions of someone who might be a good match for you. stuart: on a day when we learned facebook may have lost or grabbed 400 million phone numbers -- ashley: what could go wrong? stuart: okay. so they come up with a dating service that starts today. the stock goes up three bucks. ashley: just assume it's all going to be out there at some

point. stuart: i assume everybody knows everything. deirdre: two billion users. stuart: look at match. because of facebook starting a dating service, match.com down 5%. ashley: that's what happens when facebook shows up. stuart: it's like amazon showing up in your backyard. all right. we will have dan henninger on the show. he's got his weekly piece out. it's about what he calls the google syndrome. he's breaking down the intense political rift within google's headquarters. that's an interesting story. he's got it for us. the markets right now, still up, 430 points. market watcher from ubs coming up. he says settle down, everybody. we're not headed towards a recession. we are up 400 points. ♪ at fidelity, we believe your money

should always be working harder. that's why, your cash automatically goes into a money market fund when you open a new account. just another reminder of the value you'll find at fidelity. open an account today.

stuart: at risk of sounding like a broken record, we are still up 400 points. the dow is up about 1.7%. that is a rally. 26 of the dow 30, in the green. they're up. you know, there has been a lot of talk about a possible recession recently, but our next

guest says oh, back off and relax. managing director at ubs is with us. so nail it for me. recession, yes or no in the next 18 months? >> we don't think so. stuart: that a no? >> that's a no. stuart: okay. >> that's a no. i any it i mean, it's obvious to see why the risks have gone up. there's mixed economic data, we have had an inversion of the yield curve which is structural predominantly from our perspective, and you've had all this noise around trade. so it's understandable why people would fear a recession. stuart: it's background noise. >> well, it's headline noise, actually. it's not in the background. it's in your face every day. and i think, you know, a lot of people are worried that there's a spillover of that noise into the real economy through confidence but broadly speaking, the preconditions don't

necessarily exist. credit is not contracting. the jobless -- jobs market looks pretty good. confidence is high. we're manufacturing statistics look bad but the reality of it is we just got great numbers today on non-manufacturing. stuart: you don't see a recession coming down the pike at us? >> correct. stuart: okay. tell our viewers, they want to know, where do you put your money? >> i do think you have to be mindful of the dire outcome. right? you have to be mindful. stuart: what do you mean, dire outcome? >> dire outcome is a really high escalation in trade which has been -- stuart: the trade dispute. >> the trade dispute gets really nasty. stuart: i will bear that in mind but where should i put my money? >> in that context of that possibility, but the probability of a better outcome as it relates to the economic data, the profit data and a resolution

because of political motivations and economic motivations, so the money goes like this. you upgrade quality. okay? you upgrade quality within the u.s. if you believe we're late cycle, let's go with high quality growth. specifically, where there's strength, in the consumer side of the economy. so consumer staples, consumer discretionary, communication services. stuart: just to interrupt you for a second, i have a list of consumer staples on the screen. mondelez, altria, colgate, kimberly clark. i like costco. you can't talk individual stocks, i got it. in general, where the consumer is spending his or her money, that's where you put your money? >> what's strong we think continues to be strong. we are obviously watching the strong data we just saw but we are going to look at the data to come. stuart: one more for you. i know you don't like tech at this point. what are you doing? you are contradicting yourself. you like strength, buy into the

strength. big tech is strong. >> very quick. stuart: what's wrong with it? >> you are trying to catch me there and you're right to, because i think it's a tale of two types of investors. if you are a tactical investor, i think you have to be mindful of this ebb and flow in the trade discussion. tech is really in the eye of the storm. volatility valuations are reasonably high in tech. if you were to de-risk anywhere, why not take some chips off the table. that said, from a long-term secular standpoint, where we have had clients, we have been overweight tech for a very long time, there's been a lot of success in investing in tech. there's gains imbedded there. stuart: don't hedge. don't hedge with me. you're saying you made a lot of money in tech, pull a little off the table. that what you're saying? >> a little. a little. stuart: i own a piece of microsoft. a tiny sliver of microsoft. i know you can't address individual stocks but this time you are going to.

should i sell some of my microsoft? >> there is haves and have-nots within tech. if i were to look at a security like microsoft, one that has really been able to pivot their business, i would hold microsoft. stuart: thank you. there you go. you're all right. if you're not careful you'll come back. thanks for joining us. we appreciate it. >> thank you. great pleasure. stuart: we are still up 450 points on the dow industrials. just to keep you in touch with this one. it's a headline-driven market. the headline is trade talks start again next month. that's a big deal for investors. up goes the dow, 450 points higher. now this. our next guest has got a new op-ed in the "wall street journal." there's the title. the google syndrome. i believe this is all about the intense political rift within google's headquarters. dan henninger wrote it. am i right? is that what it's all about? >> it's more about psychological disorder inside google's headquarters. stuart: getting extreme. >> the google syndrome, it occurs to me the word google

should become a generic word to describe a psychological disorder like attention deficit disorder or even paranoia. a person in the grip of google is somebody that's overcome with come pulsive political manias. how do we know this? because a few weeks ago, google's management issued guidelines to its more than 100,000 employees instructing them not to demean, humiliate or insult co-workers when discussing politics on their hundreds of internal message boards. here's the best part. they wrote in their guidelines quote, our primary responsibility is to do the work we have each been hired to do, not to spend working time on debates about non-working topics. has any company in the history of the world ever had to tell its employees officially your job is to do your job? not argue about identity politics and donald trump and

racism? stuart: i know you, dan. you will have extrapolated out from google and related that internal conflict to our entire country. that's what you've done, isn't it? >> yes, indeed. it occurred to me this has more political resonance than merely what's going on inside google, because to a great extent, the google message boards reflect the agenda of the progressives in the democratic party that are running for the presidential nomination. if you look at the google message board, it all sounds quite crazy but also sounds like bernie sanders and elizabeth warren and pete buttigieg. can you imagine what donald trump is going to do if he gets a shot at a democratic nominee who sounds like an escapee from the google message board? i can't wait. stuart: yeah, that will be highly rated television, i do suspect. bottom line conclusion is that free speech is being suppressed. free political speech is being suppressed, because we don't want to go anywhere near it. we are afraid of it.

>> they are not so much afraid of it. it's being abused. google thought it was doing the right thing by giving its employees all this freedom to discuss subjects with one another because they thought google employees were full of innovative ideas, but they quickly descended to a level that was something out of "lord of the flies" where they're spending all their time online attacking each other, trolling one another. remember the original google motto, don't be evil? now it's don't troll your co-workers. stuart: i think i've got time. i want to run a sound bite with your permission. this is from election day 2016. i think we have a google very senior executive almost in tears lamenting trump's victory. watch this. >> people are leaving, we are going to lose. that was the first moment i really felt like we were going to lose so yesterday, eileen and

i had a town hall and i suggested that what we all need right now is a hug. everybody, if you could turn around or go to the person next to you and do a hug. ashley: oh, my goodness. stuart: i'm glad i found time for that sound bite. have at it. >> point proven. i'm writing about google, this is a psychological disorder. this woman is breaking down in tears over the results of the electi election. stuart: using the word "we." we at google are stricken by this election victory. >> yeah. i mean, the first time these companies are becoming so hyper-politicized they are incapable of doing their jobs. stuart: i'm going to read this column. >> i will retweet that sound bite. stuart: out of sight. thank you very much indeed. check disney. we've got new numbers on how many subscribers disney plus is expected to have. this is down the road.

how many in five years? deirdre: 82 million worldwide subscribers which we have to think maybe even disney did not anticipate the strength of that number. this is digital tv research. they have done projections for disney, netflix, amazon, prime and apple. netflix is still number one, 219 million subscribers. these are all projections. to your point, you do have to agree with the research and have confidence that digital tv knows what they're doing. amazon prime second at 127. then disney, then apple, 13 million. what is true is separately, ubs actually did some research, 43% of americans say it is either extremely likely or somewhat likely they will buy in. disney, let's face it, priced it right. $6.99 per month, almost $70 a year and they bundle it per month. disney plus, espn plus and hulu. this is a north american deal. for $12.99 which basically puts it on par with what most people are getting with netflix. i will say no matter what else you think of disney, the ceo bob

iger, they have priced this to move and it seems like it is. stuart: i'm trying to do some math here. great difficulty. 82 million subscribers, five years from now, if they are each paying $6.99 a pop for a month, that's a revenue of $560 million a month. ashley: not bad. stuart: what's that, i'm trying to do the math. not bad. deirdre: a lot of the content has already been created. they have pulled in so they're not still borrowing to produce as much as netflix. stuart: no wonder disney's stock is close to an all-time high. deirdre: up 26% year to date, outperforming s&p 500 and the dow. stuart: 11:40 eastern time. this is when we check other markets. i will start with bitcoin. still at $10,000 per coin. the price of gold, i think that's still around $1550 an ounce. yeah. $1528. look at that. down $32 today. 2%. why's that? ashley: not a flight to safety

anymore. stuart: maybe the dollar is down a bit. $32 drop is quite something. face it, we have to deal with that seven-hour marathon climate crisis town hall. can't wait. seven hours of it. bernie sanders saying we have to ban fracking all together. don't miss this. what does bret baier say about all this? we will ask him in a moment. joe biden was on the late show with stephen colbert last night. colbert took him to task about his gaffes. you will hear what he had to say. before we go to break, take a look at this live shot from cape fear, north carolina. you can see the american flag being flown around -- blown around, really, by winds from dorian. the storm was just downgraded the a cat 2 but is still dangerous. more when we come back. ♪ we call it the mother standard of care.

it's something we take personally, and believe in passionately. it's the idea that if our mothers were diagnosed with cancer, how would we want them to be treated? that's exactly how we care for you. with answers and actions. to hear your concerns, quiet your fears, lift your spirits. with teams of cancer experts and specialists, delivering advanced treatment options and compassionate support every step of the way.

all here in one place, with one purpose. to fight your cancer, together. that's the mother standard of care. this is how we inspire hope. this is how we heal. cancer treatment centers of america. appointments available now.

stuart: we're still up 440 points. it's still up 1.7%. it's still a sea of green when you look at the dow 30. it's a rally. on cnn last night, the 2020 democrats had a seven-hour town hall on climate change. we condensed it for you. watch this. roll tape. >> if they fail to act as president of the united states, i am prepared to get rid of the filibuster to pass a green new deal. >> first thing i would do as president of the united states is call a meeting of all the nations who signed on to the accord in washington, d.c. to up the ante. this is to bring the world together. >> we are the most powerful country on earth. we should be leading the world. to a global energy transition and you have a president who thinks it's not real. that is idiotic. stuart: okay. here is bret baier, host of "special report" on the fox news channel. it seemed to me like all of the democrats on the set there were

hanging their hats on climate change. they are going big on this issue. >> stuart, good morning. actually, that town hall is still going on, believe it or not. no, just kidding. it was a long time. they are clearly believing that this is the key to unlock especially the young vote when it comes to democratic primary goers. each candidate it seemed tried to outdo the other. there wasn't a lot of pushback on the issue overall. there was a slight difference. andrew yang was the only candidate i heard who was in support of nuclear power, which is not emissions-based, and but as far as other big differences, there weren't. maybe dollar amounts. you saw over the span of that town hall some really interesting ideas, when you think about recent years, limiting the amount of meat someone can eat. there are all kinds of different

ideas that came out of -- you had bernie sanders talking about abortion as a population control measure in poor countries. it was quite something. stuart: you are being a diplomat. it really was quite something. i just want your opinion on a young questioner who was questioning joe biden and who said that essentially, oil company executives were committing crimes against humanity. he stated that as a fact. but joe biden just did not push back. he had the opportunity to push back and say come on, stop being so extreme, but he didn't. he just waffled. i couldn't believe that response. >> yeah. and you know, this is the dynamics of the current democratic primary and caucus system, in that candidates, even joe biden, is going to have to go left to really attract those voters, and that is newt gingrich had a piece on foxnews.com where he compared this upcoming election to 1972,

where the democratic party kind of went left to george mcgovern and ended up losing big because they forgot the middle of the country and they forgot the centrist democrats and maybe even the disaffected republicans. gingrich makes the assessment that that is how this is shaping up for the democratic party. we'll see. stuart: let me run a quick sound bite from the late show with stephen colbert, where colbert asked joe biden about the gaffes. roll that tape, please. >> i think it's fair to go after political figure for anything, okay? i mean, we stand up and it comes with the territory but here's the deal. any gaffe that i have made, and i have made gaffes like every politician i know has, have been not about a substantive issue, been about other -- i'm trying to talk about what other people have done. stuart: you want to respond to that, bret? >> his gaffes have been pretty big. his point there was that in essence, he was trying to focus

on the guy who got the medal who didn't want the medal because he didn't rescue his colleague. but there are other examples where he talks about the parkland kids, talking to him as vice president. well, they didn't. that happened when it was vice president pence. so there are big issues here that go beyond just the essence of the story. joe biden has a lot of sympathy in the democratic party. he has a lot of power. he's still leading the polls. but if he slips at all, starts coming in second or third, that's going to be pretty much erased quickly. stuart: got it. six hours and ten minutes before you go on the air with "special report." >> that's less than the town hall. stuart: bret baier, thanks for joining us. then we have hov nan inania. they build very nice homes and

they reported higher revenue this morning. guess what? we have the ceo of the company on the show next. i bet he's smiling. ♪ hmm. exactly. liberty mutual customizes your car insurance, so you only pay for what you need. nice. but, uh... what's up with your... partner? not again. limu that's your reflection. only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪

from the 5am wakers, to the 6am sleepers. everyone uses their phone differently and in different places. that's why xfinity mobile created a wireless network that auto connects you to millions of secure wifi hot spots. and the best lte everywhere else. xfinity mobile is a different kind of wireless network designed to save you money. save up to $400 a year on your wireless bill. plus get $250 back when you buy an eligible phone. click, call or visit a store today.

sleep number 360 smart bed.st sale of the year on a you can adjust your comfort on both sides your sleep number setting. can it help keep us asleep? absolutely, it intelligently senses your movements and automatically adjusts to keep you both effortlessly comfortable. and snoring? no problem... and done. so you can really promise better sleep. not promise. prove. it's the final days where all beds are on sale! save 40% on the sleep number 360 limited edition smart bed. plus 0% interest for 24-months on all beds. ends sunday.

stuart: let's deal with hovnanian. they reported nice profits earlier this morning. revenue up big. the stock is doing very well indeed. i think the latest count, it's up about 8% or 9%. guess who's with us? the ceo, chief executive of the company, ara hovnanian, with a big smile as he is entitled to have a big smile. welcome to the show. good to see you, sir. >> good to see you as well. stuart: how come revenue was up, i believe you actually lost $7.6 million in the last quarter. how did that happen? >> well, that's because we have been really focused growing and there are a lot of expenses associated with opening more communities. our community count grew by 12%, that's basically storefronts, and that takes expenses. the deliveries from those haven't hit quite yet, although our revenues were up and

deliveries were up but i think it's going to kick into high gear as we proceed over the next few quarters. stuart: so your outlook for the future is pretty rosy. you are opening new store will did fronts. you think sales are going to be pretty good, straight immediately down the road, right? >> yes, absolutely. our sales were up 23% for the quarter, the most recent month, the first month of our fourth quarter, we were up 38%. so we feel quite good and we said publicly in our conference call earlier that we were going to have -- be solidly profitable in the fourth quarter. that will make the whole year profitable. we end on october 31. we are feeling pretty good right now. stuart: are you affected at all by tariffs on chinese products that come here? >> you know, there was a greater effect from the tariffs a couple of years ago on lumber that came in from canada. of course, there are many products that are imported from china that are used in houses, but thus far it hasn't had a

huge effect. stuart: can i ask you just a question about the size of the homes you are building? because i remember 10, 15 years ago, houses that you were building, not you, but new housing, was getting bigger and bigger and bigger. who has that trend been reversed? >> it's interesting, there are lots of different trends regarding house size, but i'd say the biggest trend right now is getting super affordable for the entry level buyer. so those homes have been getting smaller and smaller. but there's a whole mix out there. active adult buyers are a significant part, the over 55, and those homes tend to be a little bit smaller than the family oriented homes. stuart: if i were to tell you i bought two toll brothers homes in the last couple of years, what would you say to me? >> i'd say congratulations. toll's a great builder and we

always like people buying homes. stuart: you are a diplomat, sir. thanks very much for coming on the show with a great report. we appreciate it. thank you. >> thank you. stuart: more "varney" coming up for you, promise. ♪ . .

stuart: is really a headline driven market. the headline this morning, china trade talks resume in object next month. that was the headline much. up goes the market. >> plus the adp report, got it premarket. that was stronger. that cast as good vibe for tomorrow's non-farm payrolls. stuart: we're holding a 400 point gain. ashley: until the next headline. >> just can't be a month of

october. we need a meeting date. stuart: there will be a headline tomorrow morning at 8:30 when we get the big jobs report. whether it makes the market go up or down i simply don't know. 8:30 tomorrow, fox business will cover it for you. neil, it is yours. neil: thank you very much. strong economic signals and that talks happen reports from the chinese press, we'll get a break through. 10 of the 11 s&p 500 sectors are advancing today. only energy, energy related materials are down. jackie deangelis here to break down what is driving all of this. jackie what have you discovered. >> nice to see you, neil. there are non-trade headlines boosting this market's confidence as well. let's start with the adp report out this morning t was above estimates, 195,000 private sector jobs were added in the month of august. most of the hiring was in services 184,000.