because it's getting -- that company is getting it from all sides. i think rob gronkowski is on stuart's show coming up, by the way. maria: by the way, we also had a warning from the fda saying while we investigate this, stop vaping. this is serious stuff. great show, everybody. great to see you. thanks for joining us. have a good day. "varney & company" begins right now. s stu, take it away. stuart: yes, dagen, we do have gronk on the show. we do. >> that tall drink of water. stuart: right. whatever that means. whatever that means. good morning, everyone. start off with big trouble at wework. it's supposed to go public. it's supposed to raise tens of billions of dollars. the ipo now looks doubtful. lot of people stand to lose money and their reputation for financial judgment. wework's main investor is now calling for the ipo to be shelved. no official response from wework yet. at least i have not seen it. if this ipo does not go forward, it will probably be the biggest

upset to the ipo market in many years. but we do have jobs very much in the news, lots of jobs. emphasizing that this is very much a full employment economy. the small business people report hiring surged in august. target announces it's hiring 130,000 people for the holidays. ups hiring 100,000. amazon, 30,000 full-time people. add to that the late report that we are using our credit cards big-time. we are working more, earning more, spending more. that is a pretty strong economy. now look at ford. its bonds are classed as junk because of weak earnings and weak cash flow. look at the stock. it is going to be down about 4% when that market opens. then there's apple. their big announcement just hours away. we expect the new iphone with three cameras, okay, we got that, but what else? what investors would love is a surprise. remember one more thing? that could come from tim cook

just like from steve jobs, one more thing, then the surprise. we'll see. the stock's been going up, 30% higher this calendar year. virtually no change as we head towards the big announcement. as we said, big show. gronk is with us. no need for explanation. "varney & company" is about to begin. nearly 600,000 americans entered the labor force last month alone. think of that. and the unemployment rate for african americans just reached another brand new yesterday all-time low in the history of our country. how do you lose that debate? and by the way, african-american youth unemployment has also reached the lowest level ever

recorded in history. stuart: the president was speaking there in north carolina, where there is a special election today. north carolina has a large african-american vote. meanwhile, as we said at the top of the show, this is a full employment economy. the nation's largest small business group says job creation accelerated in august. optimism is high, target says it's going to hire 130,000 workers for the holiday season. that stock going to $108. joining us, scott shellady. i say we are working more, earning more, spending more, a very healthy economy. what say you? >> yeah, the great thing about the economy is it is coming across in all different areas which is really nice. it's not just one area doing very well. number two, don't you find it odd about two weeks ago we had this impending doom, all these new fang will efangled economis talking about the inverted yield curve which i'm sure they knew nothing about. where are they now with all these hirings and the optimism

of the consumer? where are they? stuart: i will answer that. they wanted a recession. there are many, many people, they want a recession, you heard about it constantly in the media because if we did have a recession, before the election, that could really end mr. trump's chances of re-election. they wanted a recession. they played it up. >> right. that's when they put the pedal to the metal whenever they see some negative news like that and it hits the headlines real fast but you probably won't hear about target and 130,000 tonight on the national news because you didn't really hear about ups and/or amazon. interesting to see how you spin such good news against what they thought was going to be such bad news. it's not a week ago, not just two weeks ago. i'm pleasantly surprised but at the same time, i'm almost a little bit angry about all those folks that want something bad to happen. stuart: i just stick to watching this program, son. you will find out the real news. it's as simple as that. scott, stay there. got more for you in a second.

take a look at wendy's. launching breakfast nationwide next year and they are going to hire 20,000 new employees. now, that's a big move. why are they doing it? lauren: because the breakfast market is big and they want to take customers away from mcdonald's. the stock price down 6.5% on what would be good news, because they are spending the $20 million and hiring, they had to cut full year earnings forecast. the street doesn't like that sort of thing. still, on the year, the stock is up 40%. like i said, they want to get into that first meal market which is tremendous, did wonders for mcdonald's. stuart: we reported the other day americans spend $860 billion eating in restaurants. i'm sure wendy's wants a piece of the action. lauren: absolutely. they have a frosty chino to help celebrate. stuart: didn't mcdonald's stock take off when they said

breakfast all day? lauren: they did all-day breakfast, announced that in 2015. the stock took off. then it took too long. the menu was too bloated. they had to condense it so wendy's needs to execute this the right way, have the right number of items on that menu and get them out fast because it's a fast food chain after all. stuart: worked for mcdonald's. up 113% since they went breakfast all day. lauren: correct. stuart: i participate in that on occasion. the other side of the coin, ford motor company. moody's cut their credit rating to junk status. they have doubts the turnaround will work. scott, come back in again for a second. would you buy ford stock at $9 a share? or any other standalone car company? >> you know, no, not right now. ford used to be the darling. i like the way a lot of their vehicles look. they were something that a lot of the other companies aspired to be like but you know what i

don't like, i don't like these things not doing well in the face of pretty cheap gasoline. think about that. you would have thought that would have translated through and it hasn't. i just filled up here in chicago for $2.37. i find it funny these things aren't doing well in an environment they should be doing well, and that smells a little bit to me. stuart: got you. hold on a second, scott. more for you in a second. let's get back to at & t. as you know, activist investor elliott management says look, you make some changes and that stock, at & t, could go to 60 bucks a share by 2021. however, at & t has now hired goldman sachs to fight the elliott deal. jackie deangelis is here. hold on a second. i have a sneaking suspicion randall stephenson, at & t's ceo, he's part of this rejection or this questioning of the deal. jackie: no doubt about it. he's in charge and he's changed the business strategy to a certain extent.

stuart: does elliott want him out? jackie: they're not saying. they're not attacking him personally but they are talking about the strategy. they also have a problem with the promotion of john stankey as the number two. they disclosed that $3.2 billion stake in this company and it's turning into a very public battle. they are saying you should focus on your wireless business rather than trying to become a media conglomerate, trying to compete with comcast and netflix. go after verizon, for example, try to build out the 5g network as they are trying to do and focus on the core business. the other piece i mentioned, the promotion of john stankey, is another problem, too. he's sort of this new number two and he's going to execute that strategy even further. stuart: that's a battle and a half. jackie: it's a battle and a half. elliott has taken on these battles before and been quite successful with it. stuart: investors would love to see $60. jackie: when you look at $37.12. stuart: jackie, good story. thanks very much. japan's softbank wants wework to

shelve its ipo. remember the company behind wework is thinking about another cut to its market valuation ahead of going public. 47 billion, 20 billion, maybe 15 to 20 billion. big deal. scott, come back in again. at the moment, i just can't see this ipo going forward. can you? >> no. and it shouldn't because you know what, this is a fad. i don't know if you have ever been in one of these places before, but it's built for millenials, trying to convince them work is fun. so we have lavender infused oxygen rooms and little safe spaces and breakout rooms and coffee and tea and ping-pong tournaments all day long. guess what? that's not life, right? it may be if they change the ipo, named it weplay, it might take off and they might make some money. right now this wework thing, these places you can go and have fun instead of actually, you know, i go to work to make money. i don't go to work to make

friends and win ping-pong tournaments. i've contracted with these people, not wework specifically but in london i had to do that, for two and a half years, just to try to hire millenials because they think going to work should be fun. the reason why it's called work is because it's work, right? i think this is a fad. i think in ten years this will be over with and we will think what were we thinking? stuart: you just sunk that thing. ashley: so not a fan. stuart: change the name, we might buy the thing. scott, thank you very much indeed. where are we going when the market opens? what is it, tuesday morning, 20 minutes to go. we will open the market, we will be down a fraction. 37 points. that's it. president trump once again calling out the far left for their support of open borders and medicare for all. the "new york times" is worried that the democrats are going too far to the left. what's happening to that party? we will try to answer that question. dozens of google employees say they will retaliated against for reporting harassment and other workplace problems. they say the company would

rather hide issues than confront them. barely has much effect on the stock. all kinds of pressure, stock stays around $1200. we have an all-star lineup. three-time super bowl champ rob gronkowski joins us later this hour. texas attorney general ken paxson is leading the antitrust investigation of google, ken cuccinelli, top immigration guy. far fewer people coming across the border from mexico. and dan bishop, the man running for the open congressional seat in north carolina, he's all in for president trump. "varney & company" just getting started. ♪

this is the family who wanted to connect... to go where they could explore and experience adventure in unexpected places... ♪

who were inspired by different cultures ♪ and found that the past can create new memories... leading them to discover: we're woven together by the moments we share. for everywhere you go, expedia has everything you need, all in one place. like very high triglycerides, can be tough. you diet. exercise. but if you're also taking fish oil supplements, you should know, they are not fda-approved, they may have saturated fat and may even raise bad cholesterol. to treat very high triglycerides, discover the science of prescription vascepa. proven in multiple clinical trials, vascepa, along with diet, is the only prescription epa treatment, approved by the fda to lower very high triglycerides by 33%, without raising bad cholesterol. look. it's clear. there's only one prescription epa vascepa. vascepa is not right for everyone. do not take vascepa if you are allergic to icosapent ethyl or

any inactive ingredient in vascepa. tell your doctor if you are allergic to fish or shellfish, have liver problems or other medical conditions and about any medications you take, especially those that may affect blood clotting. 2.3% of patients reported joint pain. ask your doctor about vascepa. prescription power. proven to work. but the radical democrats want the dismantle, demolish and destroy everything that you've gained. they want to have open borders. they want to have drugs pouring into our country. look at what's happening to democrat-run cities. democrats even want to give free

health care to illegal immigrants. every major democrat running for president supports a massive government takeover of health care. democrats are now the party of high taxes, high crime, open borders, late term abortion and socialism. they're socialists. the republican party is the party of the american worker, the american family and the american dream. stuart: i believe that's called ripping the democrats. he was at a rally in north carolina last night saying that they want, they, the democrats, want to undo his record. now this. look at the "new york times." okay, some op-ed titled "democrats, stop helping trump." even the "times" is worried the democrats are going just way out there to the left and that helps trump. meanwhile, this. bernie sanders touting support of known anti-semite.

scott and ashley still with us. ashley, i agree with the "new york times" that the far left is killing the democrats. ashley: mark the time and date, stuart varney said that. listen, i think the problem for the democrats, it's true, most of the candidates, at least the leading ones, other than joe biden, are far to the left. joe biden, more moderate, perhaps more electable, perhaps less certainly not socialist. but the problem for the democrats is that joe biden is struggling, he doesn't look strong, he looks weak on the stump and we have the next debate coming up and i think he could struggle again. what are you left with, bernie sanders, elizabeth warren, kamala harris, all far left joe biden. so it is a problem for the democrats. stuart: scott, am i misjudging all of this? is it possible that this country, our great country, is indeed shifting to the left, wants to become a more collectivist society? you are shaking your head. go. >> no, i don't think so. i think the people that are

running for the top job think they have to to get the top job. i think if you look at the numbers even on the democratic side, a lot of folks don't believe in the open borders. they don't want to go as far left as all those candidates you mentioned. the reason they are having to do that for themselves is they can't fight in the center where donald trump's had all this success. the one thing donald trump has done i think we all agree we don't like is spend too much money but how will the democrats ever fight him on that? so if you are a democrat or trying to get the top job, how are you going to fight him on the center because he's won in all of those categories except for spending money and you love to do that, too. they are having to go far left to come out from underneath the shadows but they will never win a general election that way. stuart: do you think if it was a matchup between president trump and joe biden, that joe biden could win? any thoughts on that? >> absolutely not. you know why? look, i'm amazed at donald trump and at his age, the travel that he does and how he keeps up. i tell you right now, i think

ashley hit it right on the head. i think the word is frail. i think joe biden looks frail and he doesn't have himself together at all times, and i think that will ultimately be his undoing. he won't make it the whole test. i wouldn't be surprised if you see him say my heart wasn't really in it, you guys take over. stuart: wow. that would be a catastrophe for the democrats, i suspect. scott, again, thanks very much for being with us. we will see you again real soon. thank you. let's get to facebook. making several changes to improve how it handles suicide and self-injury related content. it's also hiring a health and wellbeing expert to join its safety policy team. facebook still, $187 per share. we open the market now in 11 and a half minutes. we will be down about 40 points on the dow, 30 points down for the nasdaq. next case. the world's first vegan investment fund will begin trading when the market opens today. it only invests in companies that quote, don't rely on animal

exploitation. which companies are included? and is there a big market for this vegan only investment? we have the full story for you coming up next. the world is built for you. so why isn't it all about you when it comes to your money? so. what's on your mind? we are a 97-year-old firm built for right now. edward jones. it's time for investing to feel individual.

liberty mutual customizes your car insurance, hmm. exactly. 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 ♪ 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: i think this is something a little different for

you. a vegan investment fund. now, it excludes companies that test products on animals or uses animal-derived products, plastics or fossil fuels, among other things. you are introducing today the first-ever vegan etf, correct? >> that's correct. stuart: if you exclude all these companies that test on animals, animal products, fossil fuels, plastics, what are you left with? >> you are left with enough of the market, we are taking out about 43% of the s&p 500. we are adding in some of the midcaps which are let's say more forward-thinking like beyond meat and tesla in order to make up some of the differential in order to compensate for the things we're taking out. we feel that it's just a very forward looking product which enables vegans to invest according to their principles and also looks ahead to the kind of companies that are going to be successful in the future. stuart: you are a vegan, i take

it? >> yes. stuart: are you absolutely convinced, you must be convinced, that this is not a fad, that veganism is not just a fad that's here today and maybe gone tomorrow or declines tomorrow. you are convinced that it's not? >> i'm convinced it's not. because i think people are waking up to the abuse of animals. they're not happy with it. they're looking for different products. the new products which have hit the market have been incredibly successful. we have had lines around the block outside kfc to try the new plant-based chicken. and the companies that want to continue to have a customer base need to move in this direction. they need to move fast because the societal shift is moving fast and they need to -- their business needs to evolve. stuart: you are a vegan because you want to save the planet. >> oh, that, too. stuart: that's your primary motivation, isn't it? >> no. originally, when i was 15 and i first turned vegetarian it was because of the whole animal cruelty aspect and the fact that i felt that i could live and

survive and actually be pretty healthy without eating any animals. stuart: now you have transitioned to save the planet by eating plant-based food and not meat? >> yes, i think what came very clear to me about ten years ago was the effect that animal agriculture was having on the planet, and this causes our etf to have 60% less carbon than the market index, 89% less waste, 83% less water utilization. all very important things if we are going to survive in the next 20 to 30 years. stuart: okay. your etf starts trading today. >> 9:30. stuart: you got a couple of minutes. >> i'm going to run out and do a trade. get myself ethical alfa. stuart: thank you very much. president trump just tweeting this. north carolina, vote for dan bishop today. we need him badly in washington. by the way, dan bishop will be on our show today at 11:00 a.m.

there's a special election in north carolina. dan bishop is one of the candidates, the republican guy, of course. check out that market. we open literally in four and a half minutes. down 30 for the dow, down 30 for the nasdaq. back in a moment. 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. experience the style, craftsmanship, and technology that have made the rx the leading luxury suv of all time. lease the 2019 rx 350 for $399 a month for 36 months. experience amazing at your lexus dealer. now you can, with shipsticks.com!

no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.

shipsticks.com saves you time and money. they give us excellent customer otservice, every time.e. 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: all right. 20 seconds to go. we open this market, we are expecting a modest downside move from the get-go this morning. we are looking for maybe 30, 40 points down for the dow industrials. in five seconds we will find out whether that is an accurate reflection of what is really happening. here we go. 9:30 eastern, tuesday morning. we are off and running and down 35 points at the early going, 29 points. okay. let's put it like this. it is a modest, very modest loss in the first few opening moments of business, we are down 40 points. how about the s&p? we got the same story there. yes, we do. although that's down a quarter of 1%. the nasdaq composite as of right now is down about a half percentage point. you've got some losses on the market this morning. the ten-year treasury yield, got to quote that these days, back up to 1.62%. how about that. ashley: heady days. stuart: it's really come back strong. look at wendy's, down big.

it's going to bring breakfast back nationwide next year but they're going to spend a lot of money to do it. that's why the stock is down 7.5%. that's a big loss. more on that in a minute. mike murphy is here, dr barton is here. ashley webster, of course is here. start with apple. the big reveal is today. mike, i want to see a surprise of some sort. i want to see tim cook say oh, one more thing. just like jobs used to say. >> i think the problem for apple is that people like yourself are waiting for the next iphone. but the iphone is a -- i would argue, is a once in a generation device. if you look at apple's last quarter, they are putting together very strong numbers. their services business, their mac business. it may not be exciting, maybe not fireworks going off but i think the company is doing great. what they have today, i don't think it has to be a massive technological advance to move the needle.

i think it just has to show that there is still growth there. ashley: you're right. stuart: wouldn't you like to see apple say something about 5g? wouldn't you like to see apple say something about artificial intelligence down the pike? that could be the surprise? >> i would love to hear that and so would every investor that has any money in apple at all. the issue with apple is they are almost never the early adopters. they are never the ones that do 5g first, that do ai first. you will find samsung and other people, and then apple comes through. what apple does really well is execute and to mike's point, they are continuing to throw off cash at an unreasonably high rate. stuart: so you are perfectly happy with steady as she goes apple at $214 a share? no problem with that at all? ashley: i say the foldable phone. >> the wearable busy think wiink

will be very big. what they are doing behind the scenes as far as innovation is groundbreaking. just not another iphone. stuart: might be a new apple watch today. ashley: maybe. they will talk about three cameras on the back. stuart: i want to know what they are for. the other side of the coin, ford motor company, moody's has cut the company's credit rating to junk status. the stock is down 3.7%, teetering around $9 a share. moody's is saying the turnaround is taking a very long time to work and might not work at all. so dr, would you buy ford at $9 a share or any other stand-alone car company? >> i'm not a buyer of ford. my family has been into ford cars for decades. i grew up with a dad who was a ford man and he continues to be. so i want to see them, i desperately want to see them do this. but we have had several years of stagnation and of them getting into things without making significant headway in any of

the new areas. the leaders in any of the new areas around a.i. and autonomous driving. ashley: the downgrade means borrowing just got more expensive and also, the institutional investors will think more than twice. stuart: we like apple at $214. we don't like ford at $9. move on. california democrats will pass, looks like it, at least, this landmark labor law that will seriously affect uber and lyft. it will turn these gig drivers into full-time -- not full-time, but employees maybe with benefits. how big a hit to uber and lyft is this new california law? >> i believe -- now, again, full disclosure, i'm long uber at a higher price than this, $38 range, but i think a lot of this is now baked into the recent selloff we've seen. full disclosure, this could be a massive hit. this is what uber doesn't want. it's what lyft doesn't want. because if they are forced to pay w2 wages to their drivers, it would be a massive hit to the

company. they don't want this. but you can't just brush this aside as not a big deal. this is a very big deal. but it's not nationwide. we will see how it plays out. i think a lot is priced in. stuart: you agree with that? >> i agree and i think this is the opportunity for legislatures and the companies to come together and realize this isn't your mom and dad's w2 worker, that in order to get the people, the drivers to the locations where needed when needed, they have to have a more flexible model than the old go to the factory and punch a time clock model. that's what this is pushing those companies toward. it won't work. stuart: i like the gig economy. sorry. i like it i want to see part-timers have a role to play. i have to recap the market. we are down 60 points now, 26,700. there you have it. about a quarter percentage point down for the dow. now, all 50 states are on board for the antitrust probe of facebook and google. kind of reminiscent of what happened to microsoft 20 years

ago. both stocks, facebook, google, are down this morning. look at mcdonald's. they have got an agreement regarding their global tech team. this is all about speeding up speeds at the drive-through window. that apparently is important. down goes mcdonald's. it's an overall down market, they are down 2.5%. the price of gold, $1506. the bitcoin, what's the price of bitcoin today? $10,200. the price of oil, where is it? it was $58 yesterday. it's $58 today. the price of a gallon of regular gas on average nationwide, $2.56. holding right there. let's get back to wendy's, launching breakfast nationwide next year, hiring 20,000 new employees. if you are a fast food chain, do you have to have a competitive breakfast menu? >> you have to try to keep up with mcdonald's who you just pointed out before. mcdonald's has turned into a

company that innovates, puts customers first, is using technology to give you a good experience when you go in there. wendy's is trying to keep up with them. they haven't. they have fallen way behind. now they have to spend a lot of money to try to get back into the race. i don't know if it works. stuart: is it fair to say mcdonald's is racing away and wendy's is stuck? >> yes. >> i believe that's very true. basically you got an asset, a property, real estate you are not using for the full day if you don't have breakfast. so that is a big deal in terms of profit margin. stuart: i like the baconator myself. ashley: who doesn't? stuart: who doesn't. he's training for the marathon. doesn't eat breakfast. got that. kroger reporting earnings thursday. expectations are high because walmart and target did so well, you think kroger will follow suit? >> indeed. i think the bar is very high for kroger. i think they are going to have to do really well and i think because of what's going on in

that space, that they are set up to do well and to give share holders a little bit of bright spot where they haven't had one with kroger for the last 18 -- stuart: kroger tried to do all kinds of things in all kinds of directions. >> they have done some innovative things. a lot of them haven't hit. this might be the time we see one or two start to glimmer hope for them. stuart: here's a story i really like. it's a special for murphy. constellation brands chief, the chief money guy, says millenials are drinking more because they are finally having children. more stress, more drinking. that's the correlation. mike murphy has, what is it, six -- >> six kids. brooke had her first day at school today, the baby. that's it. stuart: do you have any comment on drinking more because of kids? >> so i also have teenagers, so i think that today's teenagers act differently than we did when we were teenagers. i think there's less drinking,

less binge drinking. a lot of it has to do with the fact that you have a powerful computer in your pocket where you can talk to friends all around the world at the drop of a dime, you can pull up information at the drop of a dime. you can basically do anything. i think drinking has become a lot less important. that's why you are seeing a lot of people going to lower alcohol type drinks. because the millenials want to be out but they don't want that same get drunk feeling we had. stuart: one of the fastest growing sectors of the beer market is non-alcoholic beer. growing very rapidly. ashley: my question is, was it people drinking more, therefore we are having more kids, or having kids and therefore drinking more? where did the drinking come in? >> that directed to me? >> the report that came out was about the stress that comes from the kids. ashley: after the kids. >> yes. ashley: not before. okay. stuart: i'm going to move on. before i get embroiled. all right. target, they are going to hire 130,000 workers for the holiday season. the largest small business

operation in the country says job creation is accelerating, and accelerated in the month of august. we didn't know that, but we know it now. a very healthy economy we've got going here. >> it really is. think about 130,000 people in this labor market. they are going to have to offer some incentives. i think this is going to be good for workers. i think it shows good for target, they are going to be hiring so many people. that's their confidence in this economy. stuart: you have to offer more money if you want to bring them in and benefits to boot. >> the knock will be they are only seasonal or part-time. so what, people are going out, if you want a job, you can get a job and make your life better. that's the story of the united states economy right now, in my opinion. stuart: i agree. we are working more, earning more, spending more. i think that's a pretty healthy economy any way you slice it. time's up. murphy, d.r., thanks very much indeed. you are in the marathon this coming weekend? >> no, first week of november. stuart: first week of november. okay. check the big board. now we are falling further, down 77 points. sorry, 85 points as we speak.

26,760. a driver of a tesla on auto pilot caught asleep at the wheel while the car was going, what, 60 miles an hour down a massachusetts highway. full story coming up. more cities and states passing new regulations to prevent businesses from going cashless. they say it discriminates against poor people. we have that story. and next, three-time super bowl champ rob gronkowski. will he make a return to the nfl? and what's he doing launching a line of cbd products? he's in the studio. he joins us next. you wouldn't accept an incomplete job from anyone else.

why accept it from your allergy pills? flonase sensimist. nothing stronger. nothing gentler. nothing lasts longer. flonase sensimist. 24 hour non-drowsy allergy relief

stuart: you may have heard me laughing there. warming up with gronk and his entourage. get to that in a second. the big board shows a loss of 80 points this morning. look at this. this is a vegan etf that we talked about, just earlier on the program. it has opened for trading. virtually unchanged, $24.91. big tech, it's going to be red arrows all round. yes, it is, apple, google, amazon, facebook, microsoft all down in a down market this morning. remember, please, 50 states and territories are on board for an antitrust probe of facebook and google. they are down. many cities nationwide considering bills that would prohibit retailers from refusing to accept cash. you know these cashless stores, you see amazon open one. some cities don't like it. ashley: a growing number of cities, san francisco, philadelphia, massachusetts, new york, washington, d.c., the philly mayor said look, there are socioeconomic reasons why many households throughout the u.s. are just what they call unbanked, they have no bank

account so they have to use cash. the poverty rate in philadelphia is 26%. many of those people do not have a bank account. they don't want to cut out this portion of society who goes into a shop and cannot buy anything because they only have cash. stuart: the answer to that is surely not to restrict innovation. it's to do something else. ashley: a lot of these stores have made exceptions because they don't want to turn customers away because they have cash. but it's an issue. stuart: let's get to the main event of the 9:00 block on "varney & company." special guest, three-time super bowl champ rob gronkowski. otherwise known as gronk, is that correct? >> yes, that is correct. stuart: it's gronk, not the gronk? >> gronk. that's great. that's great with me. just gronk. that's perfect. you know, you are talking about that cash. think randy moss is going to be a little disappointed. randy moss is straight cash. he's going to have a day with that one. stuart: speaking of which, i am told you don't spend a time of

your nfl income. you live on your endorsements. is that true? >> yes. yes. i have throughout my whole career. i saved it all throughout my whole career which is very nice. i'm in a great place and that's where i wanted to be. i mean, i have just been told throughout, you know, the nfl is not for long which is true. the average career is, what, two and a half years to three and a half years? for anybody that's in the nfl. so it worked out well. it's gotten me here now, baby. stuart: you're doing good, son. you're doing good. are you going back to the nfl? >> am i going back to the nfl? i have been asked that many, many times. stuart: i'm asking you. >> i know. i got the same answer every time. my soul would have to be on fire to come back and it would have to be consistently, you know, having that feel to come back. right now, i'm just enjoying where i'm at. one day, that's the case -- stuart: wait a second. were you just joking around with david portnoy?

>> yes. i mean, everywhere i walk around the streets in new york, boston, wherever i am, i'm in dallas visiting my brothers, everyone asks when i'm coming back. i have a new story for every time. before the preseason started, everyone was asking what week i was coming back. i told everyone i'm robe gostkowski now, the kicker. stuart: you're not going to tell me whether or not you're coming back. you will leave everybody hanging? >> yes. i have a different story every time. the real truth is, i have to feel it inside me to come back. that could be tomorrow. i just wake up and there's something, i got to play football again. give coach a call. oh, rob, it's week two. i thought you were coming back week 14. stuart: you are a natural born entertainer. you are, aren't you? you love it. >> a little bit. that's why i actually stepped away from football. stuart: really? >> yeah. it was taking that, you know, that joy away. i was just going through all the injuries and everything.

i just needed to heal up and see from there. stuart: well, you are healed up. >> i'm healed. yeah. i am healed. i am healed for sure. 100%. that's what we will be talking about next segment. stuart: yes, we are. antonio brown made headlines after signing with your former team, the patriots, okay. he came just hours after the raiders cut him. brown has a bit of a reputation for drama. do you think belichick can rein him in? >> oh, man. coach has brought in many players like this before, but i mean, it's up to him, i feel like. it's up to him on the role he wants to play. but you know, the organization there, it's just a top of the line organization. it's a-plus. everyone in that organization is working hard. it doesn't matter from a to z, wherever you are in that line, everyone is working hard, everyone is doing their job, and everyone has one goal and that's to win a championship. so it's just that easy. you just got to get along on that program and you will fit in well, you will fit in great.

you know, that's all it takes. stuart: okay. we promised our audience we were going to talk to you about cbd. >> yes. stuart: we are going to do that, we will take a short commercial break and then you can explain to us whether or not this stuff is any good or not. >> it's great. it's not any good, it's great. stuart: okay. so take that commercial break. back with gronk after this.

stuart: gronk is in the room with us and he's teaming up with abacus health on cbd products. we are joined by abacus ceo, who is sitting on my left-hand side here. he's not left of me politically. certainly not. no, he's with me right now. perry, is there any medical study, any scientific proof that cbd works as a pain reliever? >> well, absolutely. first of all, cbd is a neuromodulator which means it helps calm the nerves. we don't have to go too far to look at a drug that was approved by the fda for epileptic seizures. that's used in high doses and does help with the seizures so clearly, lower doses also have beneficial effects. there is plenty of studies out

there that are showing how it can be beneficial for pain as well. there are studies out there already for pain. stuart: your products are topical, right? you rub them on? >> correct. stuart: you aren't into vaping cbd or anything else? >> not at all. to be clear, our products have no marijuana, no thc. they are topical, they don't go into the blood stream so they are safe and effective. stuart: got that. back to gronk. you are fit, hale, hearty, out of the nfl. did you use this stuff? >> actually, no. i did not use this while i was playing. i wish i could have. i wish i could have. it would have been a huge difference maker throughout the week. stuart: you weren't allowed to? >> no. wasn't allowed to. and was never introduced to cbd until this year, too. stuart: you use it. >> yes, i use it. stuart: topical oil. >> yes. stuart: does it relieve your pain? >> it relieves my pain.

i'm still active, i still play sports all the time, i love basketball, hockey. you name a sport, i'm still playing. i'm still going to get those bruises and aches and yes, i put that on, it gives me that relief. it's unbelievable. it's awesome. and i love it. stuart: can you convince the nfl to allow it? at the moment, they -- i don't know what they do to relieve pain at halftime. they inject you with pharmaceuticals and that kind of thing? >> you know, things along that line. but i'm just advocating for a safe alternative way to push out there and that's what this is. this is all natural products inside it. it's with cbd, camphor, menthol, pharmaceutical grade ingredients and it's unbelievable how it works. it's all natural and it's just great. it helps relieve that pain you're looking for throughout the day. stuart: are you the official spokesperson of cbd line of products? >> i am the official spokesperson for cbd medic, yes. stuart: it is called abacus? >> abacus health products.

stuart: we have a package there. how much would i be asked to pay for that? >> about $40. $39.99. stuart: $40? >> yes. you get this grade a bottle, too. look at that. feel it. it's unbelievable. take a little sniff. it will open up everything. stuart: i can't do that. >> want me to get that off? stuart: before we go. >> look at this packaging. a-plus packaging, too. you know with the candy bars and stuff, you usually do that. stuart: we don't want any sales from gronk today commissionable to me. >> that's true. look it up in the stock market. it's going way up right now. stuart: if i'm in pain i need to get this stuff fast. >> you're right. we might have to work on this. you want to know what it is? it's because my hands are just extremely huge. i have been told that many times. i got large fingers.

i can't open things like this. stuart: work on the packaging. gronk, thank you very much. perry. we do appreciate it. i have only eight seconds to tell you that at the top of the hour, we have an editorial on, what have we got? jobs. after this. . .

...and choose any car in the aisle. and i don't wait when i return, thanks to drop & go. at national, i can lose the wait...and keep it off. looking good, patrick. i know. (vo) go national. go like a pro. my body is truly powerful. i have the power to lower my blood sugar and a1c. because i can still make my own insulin. and trulicity activates my body to release it like it's supposed to. trulicity is for people with type 2 diabetes. it's not insulin. i take it once a week. it starts acting in my body from the first dose. trulicity isn't for people with type 1 diabetes or diabetic ketoacidosis. don't take trulicity if you're allergic to it, you or your family have medullary thyroid cancer, or have multiple endocrine neoplasia syndrome type 2. stop trulicity and call your doctor right away if you have an allergic reaction, a lump or swelling in your neck, or severe stomach pain. serious side effects may include pancreatitis. taking trulicity with a sulfonylurea or insulin

increases low blood sugar risk. side effects include nausea, diarrhea, vomiting, belly pain and decreased appetite, which lead to dehydration and may worsen kidney problems. i have it within me to lower my a1c. ask your doctor about trulicity. but allstate actually helps you drive safely... with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer. giving you the power to actually lower your cost. unfortunately, it can't do anything about that. now that you know the truth... are you in good hands?

♪ stuart: here it is. 10:00 eastern time we have the latest read on the economy. this is jobs, john openings, the jolts report. this is how many jobs are going begging so to speak. what you got? ashley: 7.21 million. stuart: wow. ashley: the estimate was for 7.31. stuart: i don't care about estimates. ashley: 7.2 million jobs, wow. stuart: we don't necessarily have people to fill those jobs. ashley: i don't think we do. stuart: that is availability of employment. that is what it is. ashley: correct. stuart: economist peter morici is with us. i'm saying, peter, the jobs

picture is in a very strong picture of our economy. target's hiring. ups is hiring. small business, hiring surges. 7.2 million, unfilled jobs. jobs are the big story in this economy. are you with me? >> yes i am. we have only 6 million people unemployed. we have one million more jobs out there than people looking. we have six million people because more people are getting off the bench. adult participation rate, between 25-54 the critical group has been rising. we see this in the benefits to minorities for example. blacks unemployment is at 5.5%. that is the lowest it has been since they started keeping records around 1970 or '71. i mean, the trump performance is so outdoing the obama performance. i get such a kick out of people like beto running around saying we're in recession. stuart: more than just job creation. when you have more people,

600,000 people came into the labor force in august. that is a very large number. >> yeah. stuart: all of whom are now earning money. doesn't that go to the strength of consumer and consumer spending? >> we're seeing consumer spending pull the economy along. wages are rising more rapidly than inflation. we're seeing wage increases at bottom of the ladder. in the trump economy, it is democratic. people near the bottom, suffering a long time, more jobs, better wages, opportunity for advancement through apprenticeship programs. high school graduates got great choices. during the obama year money went to his wall street friends. who is the friend of big business? democrats or republicans? republicans run a peoples economy. stuart: peter stay there. we'll get to you in a second. a big story shaping up, apple holding its annual event. susan li is there. they're teasing there might be

some surprises, that correct? >> that's what apple told me when i asked them. what will happen in three hours time when the event kicks off? we know three iphones will be introduced. you will get upgraded cameras on the three iphone launches. we might get waterproof airpods. maybe an ipad, bigger screen, macbook. it is crucial we get updates, detailing on the new streaming service they announced in march. disney has given us details how much it will cost. now it is apple's turn. maybe a date they when it will be launched. this is crucial point in apple's trajectory. future iphone sales are slowing. one billion iphones looking around the world. they're looking for a new refresh cycle last year disappointing this year, this time around, analysts looking for 200 million new iphones to be sold especially in the crucial holiday period as well. apple is being looking for something else to basically

drive its profits in the future since we know iphone sales have been saturated around the world. will it be services? more streaming information. will it be wearables with a apple watch set to be announced today as well? stuart: i would like to come out say one more thing like steve jobs used to. here is an iphone. he probably -- only time will tell i guess, susan. >> tv language. stuart: susan we'll be back to you shortly. thank you very much indeed. we've come back a little bit. we're down a quarter of a percentage point. that is loss of 70 points for the dow industrials. i want peter morici to come back in for a second. what should i do with my stock holds or viewers do with stock holds as the china trade thing unfolds, we get fresh headlines all the time, sell or stick? >> stick. stick with stocks and buy in more.

stocks are still undervalued. if you look at the price earnings ratio trailing 12 months it is about 22. the his tore rack after -- historic average is 25. the trend is p-e ratio that is sustainable to rise because capital is in such abundance globally. the world is awash in savings. what would you do with your money if you weren't in stocks? if you buy s&p index you get 1.7% dividends. what will you do, put it in the bank, or bonds? bonds are terrible bet. this rush to bonds is silly. sooner or later interest rates will rise again. capital risk is enormous on anything more than five years. stuart: i'm sticking. we used to say that in blackjack. i'm sticking. i think that is an english expression. peter, thank you very much indeed. see you soon. >> take care. stuart: now this one, california is set to pass a landmark employment bill would have companies like uber and lyft label their drivers as

employees, not gig workers there for a specific independent contract. no, employees judge napolitano join us. what does that mean for ubers and lyft for the world. >> it will drive uber and lyft out of california, it will raise cost substantially by forcing employers to provide benefits that the both federal government and state of california of full-time employees. the way uber and lyft get you from a to b at a reasonable rate by characterizing these people as outside vendors. if they're full-time employees, uber and lyft have to pay them so much. cost of getting from you a to b will go so high. it will diminish the desirability of the product. stated differently it, may literally drive uber and lyft out of california. this started with a crazy california supreme court opinion which gave a definition of

employee, very similar to what gig drivers are. but that wasn't good enough for your favorite legislature in the united states. i say that with some sarcasm of course. from your years living there. california wants to be the first state in the union to define employee so that outside vendors fit into that category and are entitled to the benefit the government requires. stuart: it destroys the employment possibilities of those people who have a couple of hours a day to go out and drive for uber or nighttime job. >> you're exactly right. what will become of those people? unemployment line. stuart: ridiculous. >> yes. why would the legislature do this? do they really think it is for the greater good? or do they want to go back and say, look at what we did? we got these rich companies to part with their wealth? baloney. that is putting people on the unemployment lines. stuart: that is what they will say. >> i hope, lot a bad things in

california hope it doesn't make its way east. stuart: with you on that one. another story for you, 489, i think illegal immigrants, they were released from jails in north carolina. >> right. stuart: a very recently i think. >> yes. stuart: even though i.c.e. had a retainer, a detainer, whatever it is properly called -- >> detainer. stuart: detainer on those people they were still released. were these people criminals to start with or allegedly criminals? >> this is a very complex situation which starts and ends in the judiciary. these are people who were arrested for state crimes and they got very, very low bail. now, when they meet the bail, there is no opportunity for the jailer, the sheriff, to hold them until i.c.e. comes along under north carolina law. you're arrested. the court fixes the bail. you meet the bail. they have to let you go. it is a defect in the system. some of these people are people who have been charged with violent crimes and they're now

free to move about because judges fixed low bail, even though they are here illegally and worthy of deportation. some of them are not guilty of violent crimes. they are just worthy of deportation. i.c.e. dropped the ball. the court system in north carolina dropped the ball. stuart: the original fault was very low bail for criminals -- >> which i can't understand. stuart: because you were on the bench. >> i can't get my hand around it. i can tell you on the bench these things didn't happen. i don't know why they're happening now. if a person is charged with a violent crime, does not have roots in the community and does not have assets in the community, that tells you high bail, not low bail. stuart: it is politicization of the judiciary. >> yes it is. stuart: that is what it is. it's a bad thing. >> it is a state where judges are elected. stuart: it would be nice if that played a role in today's election in north carolina. >> i don't know if it will, it will play a role in the 2020 presidential election in the north carolina. stuart: judge, thank you very

much. >> you're welcome. stuart: the dow is down 84 points. now this, investors are all-in with technology. startups can go to the moon. there is serious money to be made. so there is a temptation to jump on the technology bandwagon in hope of riding the money train. that is what wework is doing. it wants to raise tens of billions by selling shares to the public but it is not really a technology company. it says it will quote elevate the world's consciousness, very new age, but the heart of it its business is leasing office space. it is not a moonshot tech company. a lot of people were taken n. softbank and saudi vision fund chipped in $10 billion. a group of banks gave them a 6 billion-dollar credit line, in all the hope when wework went public big money would be made. it is not working out that way. investors were shocked to learn that ceo adam newman made

$6 million himself for selling the we name. he made money on ownership of four buildings that were leased to wework. if newman dies or incapacitated his wife dies who replaces him that doesn't seem quite right, does it? add this to the work. wework lost $4 billion since 2016. it has competition. the competition, it is profitable. big trouble and now things seem to be falling apart. softbank wants the ipo shelved. in other words, dropped for now. there is intense pressure to drop it completely. why? because investors are clearly unwilling to buy this stock. what a mess. some of the key players in all of this will lose money and reputation. but there is a winner. sunlight is the best disinfectant. it was informed investors dug deep and discovered weworks floors. as "the wall street journal" point out that is why u.s. capital markets remain world

leaders. the second hour of "varney & company" is just getting started okay? check that big board. here we go. we're down 95 points. 26,740. i want to mention google. facing new antitrust probe from 50 attorneys general. texas ag, ken paxton, he is leading the charge. i want to know, he is on the show, by the way, i want to know what ground he is going after google? we will certainly ask him. apprehensions at the u.s.-mexico border dropped for the third consecutive month and president trump'shard-line immigration policies and the actions of mexico. we'll be back with that story. ♪. as a struggling actor, i need all the breaks that i can get.

at liberty butchemel... cut. liberty mu... line? cut. liberty mutual customizes your car insurance so you only pay for what you need. cut. liberty m... am i allowed to riff? what if i come out of the water? liberty biberty... cut. we'll dub it. liberty mutual customizes your car insurance so you only pay for what you need. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

stuart: it is a triple-digit loss at this stage. we're down 122 points. look at the level. we're down to 26,732. roku is expanding in europe. ashley: key european markets in particular with the uk and germany. they're trying to strike partnerships in order to get their streaming platforms into europe on a more expansive basis. for instance, roku announced a partnership with a chinese manufacturer of televisions called hicesse. will start selling roku tv models in the united kingdom models this year. fire tv, amazon, getting into several new smart tvs in germany with makers like grundig in germany and austria. fire tv has 37 million monthly active users around the world.

roku has 30 1/2 million. they need to find new frontiers and europe is certainly one of those. very competitive. stuart: europe a new frontier. ashley: or an old frontier. stuart: it is a museum to me. there you go. 48 states, two territories leading the charge on antitrust probes of google. ken paxton, attorney general of the great state of texas is leading that charge and he is with us now. mr. attorney general, what specific beef do you have with google? >> did i have? i don't think a beef any particular attorney general has across the country. this isorg -- organic. people asking questions from large businessessing small businesses, consumers asking questions. this is not a lawsuit. this is an investigation to deal what you talked about with weworks, shine the light of day what is going on. stuart: i have to read a statement from google. they're coming into this and here we go. we have answered many questions on these issues many years in the united states as well as

overseas across many aspects of our business so this is not new for us. the doj has asked us to provide information about these past investigations and we expect state attorneys generals will ask similar questions. we have always worked correctively with regulators and we will continue to do so. that is the statement from google. they're saying, look this is old stuff. you're saying look, this is an investigation. what troubles me about google and facebook is that you have got a handful of multibillionaires who have all this information on all of us. they know everything about us. i don't know how that information is going to be used. that is my problem with google and facebook. something similar from you? >> absolutely. that is a concern that the ags hear from regular people every day. that is not where we're warting with this but that is definitely an area we can ultimately look at. the concern we have is the dominance of google, like the stocks exchange not only having exchange being on the buy side

and sell side. google is dominant in the exchange of advertising between buyers an sellers. they dominate all sides of the transaction. that is what we'll start looking at initially. stuart: from our point of view, our viewers are investors. they want to know if this is going to affect the stock. so my next question is, any judgment or any investigation of google and facebook is years and years down the road, certainly before there is any conclusion. so it is not an immediate problem for these two companies, is it? >> no. i mean this is merely an investigation. i don't know where it is going to go lead. we're going to follow the facts. we're going to do our job representing our states. we'll bring resources to bear when you consider 50 different governmental entities involved in this, obviously something people care about. stuart: you want to find out the facts and move on that. is it possible at the end of the day you will be trying to break them up? >> you know what? it is hard to know what the remedy is until we know what the

facts are. i'm not trying to presume any remedy. i'm not trying to presume a result from google. all we're trying to do is find the truth. i hope they cooperate and provide information in organized, efficient manner quickly, so we can move on if there is nothing here. stuart: mr. attorney general, thanks for being with us on an important subject. always good to have you on. >> appreciate it. stuart: look at apple. the stock is virtually unchanged. down 70 cents. that is it. this is ahead of the new unveiling. we're told they will unveil new products and set to reveal new security features for iphones. we're at the event in california. we will have the latest coming up for you. the vaping industry is facing more controversy. teens getting hooked on all kinds of things they vape. a lot of people are getting seriously ill. california company candescent

makes vape pens. we have the ceo in our 11:00 hour. we'll ask him if all the bad press is affecting his business. ♪ what a time to be alive. the world is customized to you. built for you. so why isn't it all about you, when it comes to your money? so. what's on your mind? we are edward jones, a 97-year-old firm built for right now. with one financial advisor per office, we're all about knowing what's important to you the one who matters. edward jones. it's time for investing to feel individual.

i come face-to-face with a lot of behinds. so i know there's a big need for new gas-x maximum strength. it relieves pressure, bloating and discomfort fast. so no one needs to know you've got gas. gas-x.

so no one needs to know you've got gas. 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: now, on your screens the dow industrials down 73 points. i can tell you no you that entire loss is accounted for by just two dow stocks. mcdonald's is way down, and that is taking the dow down 57 points and visa is way down, down 3%. that is taking the dow down 46 points f it wasn't for mcdonald's and visa, the market, the dow would be up. look at wendy's launching

breakfast nationwide next year. they are hiring 20,000 new employees to do it. they are spending a lot of money. market, investors do not like it. look at that, wendy's is down a full 10%age points. alibaba founder jack ma, he is retiring. he is 55 years old. the man is retiring. he is 16 years than me. lauren simonetti is with us. >> happy birthday, jack ma, he is 55 years old today. happy retirement. stuart: isn't that a little early to retire? >> it is. bill gate retired early and dedicated his tough philanthropy. he is worth $40 billion. look at the half trillion dollar company he created. alibaba put their sales together, put amazon and ebay sales together, alibaba does more in the chinese market.

their sales are still strong, growing 17, 18% on annual basis. they're not growing above 30 mers as they used to. it is slowing. stuart: full disclosure. i bought alibaba stock. bought it sometime ago. >> good investment. stuart: i'm told alibaba is having a hard time getting into markets outside of china. vietnam. >> and singapore. there are several issues. it is known in the chinese market. with the trade dispute do other companies want to do business with beijing? if you're a capitalist in china, do you want to work with beijing the way jack ma did, supported by the government. he is a member of the communist party although a prominent capitalist. stuart: he pretty much would have to be. lauren, great report. jack ma, 55 retires. nice. why don't i? because i don't have $40 billion, that's why. apple the other big story of the day, expected to unveil three new iphones later but i really want to know what is up

with apple tv plus? will they reveal more about the this streaming service and will it ever be able to compete with disney plus? we have the full story on this, and that's a promise. ♪

♪ ashley: this sounds like a soccer song. one you would sing inside of a soccer stadium. stuart: could be. we like it. do you like it? ashley: yes. stuart: i like it.

boy, you're going to carry that weight a long time. the big board down 60 points now. that entire loss is accounted for by mcdonald es and visa which are both -- we'll start with mcdonald's. that is a drag on the dow. so why is mcdonald's down so much? i know it is. i don't have the numbers available. ashley: we did a story earlier in the show about acquiring some technology that ultimately will help people get through drive-throughs faster. there is that investment in that and now we understand they're going green or greener to the point where they will source their mccafe coffee sustainably by 2020. that means next year, right?

stuart: yep. ashley: they will go 100% cage-free eggs by 2025. stuart: okay. ashley: that is perhaps doing that, makes thinks more expensive. could hurt the stock in that extent. stuart: have to spend a lot of money to keep in line with the climate problem. that is what they're doing. mcdonald's is down several percentage points. that is hurting the dow. it has taken us 20 years to get back to the peak which was 1999. that speaks volumes for the trump economy. you tell me what these numbers say about the poverty? ashley: that is more impressive. poverty rate hit the lowest point since 2001. so 18 years ago. it is now at that level of 18 years ago. so both those stats right there, speak very highly of the trump economy. stuart: for everyday consumers. ashley: income up, poverty down. stuart: yeah. we're working more. we're earning more. we're spending more. ashley: correct. stuart: all true. got it, thank you. let's get back to the big apple event today. there are new reports that new security features that will be unveiled. ray wong, constellation research founder. can you explain this, what is this about new security

features? how will it work? >> there are a couple important features popping up and you see a lot of social media apps responding to this. one is around location, the big thing around location, these apps have been basically tracking your location. they don't tell you they're tracking your location. track you more than once. apple is putting a stop to that. the other thing popping up, ability to sign on, you can sign on anonymously encrypted into the new apple i.d. sign on they're putting in place. the last thing important, background apps won't be able to run on their own the way they used to. this will help with a lot of security features and privacy and trust message apple is talking about. stuart: that is significant response to consumer demand and consumer worry. what about apple tv plus, any sort of innovation or breakthrough coming there? >> there is a lot of rumors about what this is going to look like but we know apple tv plus will be a streaming service and

it will sit inside the apple tv app itself as well. you will be able to see the disney app, netflix, apple tv plus at the same time. they're working a lot on content buy. there are rumors, they're spending five to $6 billion on content acquisition with folks like recent witherspoon, oprah being in there, general per aniston, a lot of big-name celebrities going into the content creation. a couple other cool things are popping up, new airpods and probably we're hoping for a new apple watch. i think watch 5 is supposed to come out. that is the probably the big quiet secret going on. stuart: ray, you're not talking about any major technical breakthrough, right? >> no. i need three cameras which other companies have already. getting better battery life, new processor chip. people are waiting for when will 5g pop up. that is something that will probably happen on the 2020 timeline.

stuart: do you expect 5g to be mentioned today or artificial intelligence mentioned today? >> i'm not sure but i think what we won't hear about is the a.i. that is in the back of sir are making better recommendations and we'll also see with three camera lenses what you will do wonderful things with augmented reality or virtual reality not fully launched yet in a lot of the apple products. stuart: ray, you like apple. you think the stock is going -- let me ask you this. people on the show say apple will go into $350 a share within a couple years. some people say it will double within a couple years. where are you on that? >> well, we're waiting for the china trade deal. that is an overhang of at least 35 to $50 on the stock. it should be sitting at about 220. that is the forecast for it. there is a lot of potential, right, especially with things like this on the apple card, some other areas. it is services business that will drive this. there is a billion iphones,

there is a billion iphones that need services on top and i think that is a great install base and really when you take products and services that is where the future will be for quite some time. stuart: ray wong. we'll leave it at that the apple stock is at 213. ray, thank you very much. now this, the white house is investigating the national oceanic and atmospheric administration. edward lawrence joins us with details. what is this all about, edward? reporter: at the white house, fox business learned the office of inspector general in the commerce department has opened an investigation into the response when president donald trump said that hurricane dorian would affect alabama. now this is a letter that was sent to the national oceanic and atmospheric administration asking them to preserve all emails, texts, and correspondence, preserve all materials, that could be used in this investigation. at the heart of all of this is the credibility of the national weather service. this letter reads this, quote,

recent reports of inconsistent messaging culminating in attributed press release surrounding information related to hurricane dorian call into question the national weather service's processes, scientific independence and ability to communicate accurate and timely weather warnings and data to the nation in times of national emergency. so we're talking about the tweet that the national weather service sent out in response to president donald trump saying that hurricane dorian would not impact alabama. then a little while after that, noaa sent out unnamed or unsigned release disputing what the national weather service had said. so therefore the investigation here wants to find out how that second release was put out. there has been no comment so far from the commerce secretary about this, but again, an investigation has been opened into the response of how noaa and the national weather service acted when the president said alabama was in the path of dorian. stuart: how that ever became a major news story i simply cannot

work out. edward, thanks very much for delving into it. we appreciate it. thanks, edward. reporter: thank you, stu. stuart: a san francisco judge has blocked president trump's plan to ban thousands of asylum-seekers or change the rules on asylum-seekers. what is the president going to do about it? we'll ask ken cuccinelli about that in a moment. plus illegal border crossings over the last three months, dropped a lot. is this because of trump's hard-line on immigration or is mexico helping us with this? we'll ask. ♪. 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. experience the style, craftsmanship, and technology that have made the rx the leading luxury suv of all time. lease the 2019 rx 350 for $399 a month for 36 months. experience amazing at your lexus dealer.

stuart: tuesday, second day in a row not that much stock price movement. i know a 80 point loss for the dow is significant but it is not that big when you're looking at a 26,700 index. modest losses. ashley: a third of 1%. a minor, minor glitch. stuart: thank you for setting me straight, ashley. ashley: you're right. stuart: 1/3 of 1% down, 26,000, we'll take it. now this, border arrests have fallen for the third consecutive month. it's a 22% drop from july. ken cuccinelli, citizen and immigration services acting director. ken, always a pleasure. welcome back to the program. >> good to be with you again. stuart: is this drop in interdictions at the border, is the drop because of the president trump's hard-line policy or are we getting real help from mexico and that's what is doing it? >> it is both actually. this is the first time in eight years we've seen numbers drop from july to august instead of

increase. we know it is not seasonal. the president's aggressive foreign policy with mexico and triangle countries is paying off. we're getting cooperation from mexico ever before. they have made more internal arrests than we ever remember and that is making a huge difference in driving these numbers down but what it really is a really good trend line, it is still a crisis level number so we have a lot of work yet to do. stuart: now a judge in san francisco has blocked the president's move to change the rules on asylum-seekers, basically making it more difficult to stop them coming to our border, coming across. what can the president do about this? >> well the last time this same judge enjoined this same rule, we went up to the ninth circuit and they partially reversed it. so that is what we'll do again. we'll make that attempt again but i have to say, this is a, this is one of the worst activist judges out there.

judge tiger is really a becoming illegal immigrant's best friend here this kind of activism is something the president has fought against with his judicial appointments. as we go through the court process, you will see us win the case, stuart, but in the meantime, we have to contend now with people crossing illegally and then seeking asylum. if you're seeking asylum, you should come to the ports of entry. stuart: if we want to get interdictions down to virtually zero, if we wanted to fix that border, what would be the first thing, ken, would do? >> i would start building barriers in all the critical crossing locations. that is exactly what this president is doing. we won a lawsuit recently to free up department of defense money to join the border patrol in this effort. so now we're running two efforts in parallel. we will massively accelerate wall and barrier building over the next year, year-and-a-half. stuart: can you definitely tell us that this three-month decline

in border crossings, illegal border crossings will continue to decline over the next year? eventually, by early next year, we could be at a situation where, we don't have that many border crossers, can you say that? >> stuart, we're going to keep working in that direction. the president is very clear with us to remain aggressive in this space. we're going to keep doing that we do have to contend with judges like the judge who you just referred to, reversing policies that this president has aggressively put in place. we'll keep contending with that. we have more work to do, but we are moving, but we're not done yet. we have more that we can do to keep driving numbers down. that is exactly what we intend to do. a year in it this space, stuart, is too far for me to predict. i expect numbers to go down in the near term. we need congress to step up. they're back from their six week vacation, how nice to step up, closing some legal loopholes

helping driving this crisis. it is still a crisis at the southern border, stuart. stuart: would it be true to say mexico is doing more for our border than the democrats? i'm expressing an opinion here. >> vice president said words to that effect but it is true. right now mexico has been a great partner. remain in mexico program has over 40,000 people, including a lot of family members. they're a huge part of the logistical challenge at the border. they're in mexico. those cases will be heard this week, stuart, because of cooperation with mexico. that is only happening because the president got tough with the negotiation that neither democrats nor republicans before him have been willing to do and it is paying off. stuart: ken cuccinelli, thanks for joining us, sir. >> good to be with you. stuart: thank you, ken. california lawmakers passed a bill that will allow college athletes to make money. universities opposed the bill and the national college

athletic association warns that the california universities could be ineligible for national championships. brian kilmeade will be here soon. what does he think about paying student athlete? ♪ ♪

♪

♪ here, hello! starts with -hi!mple... 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: little stock price mom. the dow is down 81 points. all of that loss is accounted for by two companies, mcdonald's and visa. both down sharply. both dow stocks taking the dow down. without those two, we would be up. joining us now on the radio, brian kilmeade, host of the brian kilmeade radio show. brian, california passed legislation that allows college athletes to be paid. what do you say about that? hold on a second, i want to play awe clip from emmett smith on our show yesterday. roll that tape real fast. >> they pay the universities, 15, $20 million a year, coaches getting paid, 6, 7, 8, $9 million a year to coach these teams and they can leave anytime they want to, yes, yes, i believe players should be compensated at collegiate level. stuart: big name in football

says pay them. what do you say. >> how? i know there sin equity there, that people will come out be professional athletes. 1% do. this is their moment. playing in front of 101,000 people. there are sponsors, broadcasters, coach is getting paid. i know what you're getting is an education which is average of 60,000 a year for four years, where it is really hard to focus, you need extra year, number one. number two, i don't know the compensation level, how to flatten it out. with the california law they allow endorsements. fine. i go to let's say stanford. why do i choose stanford? maybe because one of the alumni happens to be executive microsoft. they want to give me an endorsement. they want to give me an endorsement to walk around campus with windbreaker that says microsoft. why did stanford get that great running back? because they had an alumnus that allowed an endorsement to happen over the university of california, berkeley. i just think there is so much

inequity built into it, unless it is rolled out in a standardized way. i would like to see money given into an account, not access until you graduate or go through four years but i don't think you should have the wild west of endorsements out there because there is much opportunity for corruption. stuart: did you see gronk on my show this morning? >> did you see him on our show this morning? stuart: excuse me. what did you get out of him? he wouldn't tell me whether he is going back to the nfl. he says he uses this cbd oil and it does kill his pain but he has got a problem going back to the nfl still using cbd. what did he tell you? >> a couple of things. he has lost about 60 pounds since he left the league. he has to put it all back on. number one he is ripped. not out of shape as you saw. number three, he has one of the best personalities in and out of sports. so natural, so real. i'm not sure it is analytical. he has such a great time on the field, he said at the commemorating the super bowl in

week one with the new england patriots. he did not commit but did not shut the door. my hunch feeling better whether oil or not, he comes back in six or seven weeks, gives it another shot. i think bill belichick and new egg england would have no problem with that if 10, 15 states, legalize pot, how do you tell nfl players if you take it you're no longer eligible to play? and cbd oil as well. there is gambling in stadiums. gambling across the country. the nfl is betting on it, not the players, not coaches but the fans. i can see them bending on this, it is hard to tell half the country, when they are doing something illegal you have to leave it out of the football players. do you think legalizing pot is a problem? yes. cbd oil says has no thc i don't have a problem with that if it puts the guys out of pain. stuart: he was a great guest.

he is entertaining fellow with loads of energy and life. i was intrigued by him. >> his whole family is like that. they embraced him. the sport is so brutal, to us on the show i understand why people like it, it is so much hitting and fast-paced. i was thinking to myself, really? you are just realizing that now? you are a tight end and won three super bowls, you realize that now? fans like it, you get hit, we like to watch you get it, and judgmental when you can't get up quick enough and play the next down. how dare we. now you're one of us, gronk. stuart: he was a great guy. i love to have him back. see you again real soon, promised. >> right. i did not get paid for this appearance. i keep my amateur eligibility. stuart: you keep your amateur status. >> you keep -- stuart: major retailers have filed for bankruptcy this year. that is, how many? ashley: 16, bankruptcy or

liquidations. these are names you know. look at some of those. payless shoes, remember them? stuart: yes. ashley: everywhere, gone. charlotte russe, i believe that is how you say it, there you go, women es apparel. gymboree, mall diapers store. robert cavalli, men's closing. diesel, expensive jeans. barneys of new york, a iconic brand here in new york city for sure. these stores filing for bankruptcy this year. there are a number of other's. we were showing earlier, stu, shaking out the tree. those that can compete and those that haven't been able to keep up with the changing landscape of retail. stuart: shakeout, bankruptcy. ashley: shakeout! stuart: america is working more, making more, spending more, jobs, wages a huge bright spot in the economy, i've got all the numbers for you in my take coming up at the top of the hour. the vaping industry is under real fire.

there are reports of serious illnesses, even deaths tied to vaping. coming up we have the ceo of candessent who make vaping pens. all the bad press can't be good for their business. we'll find out. president trump make as campaign stop ahead of special election of north carolina. we have the republican candidate for congress, dan bishop. he is on the show. big hour coming. [upbeat action music] ♪

(pilot) we're going to be on the tarmac for another 45 minutes or so. but allstate actually helps you drive safely... with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer. giving you the power to actually lower your cost. unfortunately, it can't do anything about that. now that you know the truth... are you in good hands? "have you lost weight?" of course i have- ever since i started renting from national. because national lets me lose the wait at the counter...

...and choose any car in the aisle. and i don't wait when i return, thanks to drop & go. at national, i can lose the wait...and keep it off. looking good, patrick. i know. (vo) go national. go like a pro.

stuart: america is hiring, big-time. just listen to this. there are now 7.2 million job openings in this country. that's a million more openings than people who are unemployed. in other words, capable of taking the jobs. add to that the nfib, the group that represents small businesses, says that job creation has accelerated in the month of august. then we have amazon, as you saw first on this program, adding 30,000 full-time jobs with full benefits in six cities.

ups hiring 100,000 workers for the holiday season. target hiring 130,000 workers for the holiday season. those are three retailers adding more than a quarter of a million jobs for the holidays and beyond. why? because america is making money and spending it. wages are up 3.2% august over one year ago, rising faster than the rate of inflation. we are getting better off. consumers are carrying more credit, charging more online purchases. total credit up $23 billion in july compared to the month before. job openings, credit card debt, two signs that the economy has some confidence behind it. why that confidence? because america's working more. america's making more. america is spending more. what is the better time to be a worker in these here united states? i may never retire. third hour of "varney & company" about to begin.

stuart: look, i think it's a great time to be a worker in the united states of america. does my guest share that view? jason katz with us now. okay. you don't have to share my point of view. i'm not asking that. but talk of a recession surely has to fade into the distant past when you've got a fully employed economy like this. >> to your point about the consumer, they are very strong. the number this morning talks about how we have a mismatch of skilled workers and jobs available and that's sort of a good problem. the fact of the matter is consumer credit is up $23 billion last month. so when it comes to the sectors we're focused on, consumer discretionary, consumer staples, communication services, all that being said, recession risks are a little bit elevated, clearly

because of the trade dispute. stuart: so that's it, that's the problem, the trade dispute is the problem. what chance of a recession before the election, can you put a number on it or percentage on it? >> 30%. stuart: really. >> so you talked about in terms of job creation. we surveyed our small to midsized business owners. in fact, our ceo was on your program with maria this morning. and since the second tranche of tariffs, we have actually seen their forecast for hiring coming down a little bit. in fact, when asked the question looking out if tariffs persist north of six months, they see job creation at least in their sphere coming down to a virtual halt. that being said, they are still pretty constructive on their businesses because the u.s. consumer is really driving the bus. this is a consumer-led economy and you know, it makes close to 90% of our economy. stuart: does it really make that much difference, the china trade fight, if it does indeed drag on and on and on?

i hear what you're saying about some companies lowering their hiring expectations, but we haven't really seen consumers affected yet. prices haven't gone up. inflation is still very much in check, isn't it? >> it hasn't affected the consumer because we have record low mortgage rates, unemployment rates are at 50-year lows, but at some point, as some of the prices may get passed on to them, it will in one way, shape or form, affect them. frankly, china has a lot more to lose in this battle because u.s. companies are pivoting and frankly, a lot of them aren't going to come back. in other words, they are going to no longer rely just on china as their sole supplier. they will pivot vietnam and elsewhere and china's not going to get that back. so it's in china's best interest to get a deal done. stuart: i don't want to put words in your mouth but can i sum it up like this. the economy is doing very well, especially the consumer, and that supports a dow industrials around 26,000. to break above that level

significantly above that, it would take some kind of deal on china trade. is that where we are? >> it's your show, you can position it any way you want. but i agree with you entirely. look, i think a lot of business leaders are sitting on their hands and they are ready to loosen their pursestrings in terms of building factories, hiring people, contingent on having clarity. the goalposts keep on moving. once they know where the goalposts are, even if it means a prolonged trade dispute, as long as they know where the goalposts are, then it could empower them to at least increase capx. stuart: jason, that was good stuff. we appreciate it. direct and to the point. not bad at all, son. all right. let's get more -- i've got more numbers for you on how much money we have. household income is now at a 20-year high. tell me more. deirdre: this is coming from the census bureau. they published a report this morning. median household income up .9% so inflation adjusted median

household income, $63,000 change. that is up from $62,000 and change. other significant detail -- stuart: hold on. i'm sorry. don't mean to interrupt. median household income is now $63,000 a year. deirdre: yeah. stuart: adjusted for inflation, we are back to the high of 1999? deirdre: exactly right. it matches that 1999 peak. so you have happiness over here and the other smiley face, you can put a sticker on it, is the poverty rate is dropping. lowest rate since 2001. so you have income going up for a lot of the low wage jobs we talk about of course every frid friday, first friday of the month, we see we have incomes going up around 3% on average for a lot of low wage jobs. stuart: this goes to jason's point that the consumer, a point that's made by many people, the consumer is very very strong. i've got one more indicator on that. you better flesh this out for me. the credit scores, the average credit score? ashley: fico scores, yes, at an

all-time high. 706. that is the national average. deirdre: great rate. ashley: anything above 700 you can pretty much get the credit you want. what's important is that you are going to pay lower interest rates because you are considered a good credit risk. it had bottomed out in the housing crisis at 686. that was the average across the country on the fico score. it's now climbed. also, people are getting more savvy about how things affect their credit scores and also, they can easier jump in and check their credit score week to week, day to day if you want to see what you're doing and how it's affecting that score. better consumer awareness is helping as well. stuart: pretty strong economy all round, i would say. there is a chance of recession if we don't mess up the china trade talks. i got it. i got it. jam-packed hour ahead. we have the former vice-chair of bear stearns with us. he says most people think president trump started the trade war. he disagrees with that.

he will make his case. with five days until the anniversary of the lehman collapse, we have real estate star ryan serhant on the show. he started in the business on that very day, the day of the collapse. obvious question, does he think we are heading for another housing crisis? i don't know. we will ask him. earlier on the program we had a three-time super bowl champ, gronk, as in rob gronkowski. he's launching a line of cbd products at a time when the industry is under fire. later this hour, we have the number one selling cannabis company in california on the show. jonathan morris, really enjoying the life. he's got a part in the new scorsese movie "the irishman" and worked with well-known trump hater, robert de niro. i want to know what it was like doing that. formerly father jonathan morris on the show today. first, we are going to talk politics. the president was in north carolina ahead of today's special election there. this is essentially a referendum

on trump. next, we have dan bishop, the republican candidate for congress in north carolina. the vote is today. ♪ 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. ♪

all right brad, once again i have revolutionized the songwriting process. oh, here we go. i know i can't play an instrument, but this... this is my forte. obviously, for auto insurance, we've got the wheel route. obviously. retirement, we're going with a long-term play. makes sense. pet insurance, wait, let me guess... flea flicker. yes! how'd you know? studying my playbook? yeah, actually.

stuart: the ftc is warning companies about advertising cbd products. what may they no longer say? deirdre: it is illegal to say you can prevent or cure specific conditions or diseases, because some of these companies have been saying we can prevent or we can cure things like ms, alzheimer's, cancer. some of these labels have been let's just say overselling the benefits which may, in fact, be true. it's just not proven yet. in the meantime, the ftc says you cannot use that language. you can say that this could

support your health in general, but you can't say prevent a disease or cure a disease. those are the two words. stuart: rightly so, until you can prove it. what's wrong with that. that's what they are supposed to be doing. thank you very much. another big story today is of course apple. they hold their annual event, the big reveal. susan li is there. any surprises coming down the pike, you think? susan: well, they teased it. they say watch out for some surprises that are supposed to take place at this apple event which will be announced in just about two hours' time. here we are at the steve jobs theater. more people are coming through at this point. this is the heart of the $5 billion apple campus. you see the mothership centerpiece and this will be exactly where you will be hearing from tim cook and the like. we have three new iphones expected to be announced and as you know, iphone sales have been slowing. they are looking for leadership in other devices and apple watch has been announced the last two years. we are expecting that as well. maybe a bigger screen mac book and maybe a new ipad but the

streaming service, a lot of people are anticipating as well, more detail in terms of how much it will cost. some say $10. given that disney came out with the details of their streaming service and as we know, this is a crucial inflection point for a company that is up 30% this year but looking for something else to drive sales and profit in the future. stuart: susan, we will take it. thanks very much. i'm sure we will be back to you all day long. thank you very much, susan li. next case, north carolina special election is taking place today. president trump was in the state last night rallying for republican dan bishop, he's the candidate. he's on the show now. dan, welcome to the program. good to see you, sir. the latest polling shows you are in a dead heat with your opponent, democrat dan mccready. is this vote today a referendum on president trump? >> well, stuart, we entered this race just six months ago and our opponent has been in the race for 27, 28 months and been the beneficiary of $12 million plus outside spending, all of which

is predominantly from out of state, far left money and so we have had some catch-up to play but we are catching up. i actually think what's true is that president trump's help and the help of vice president mike pence is a great -- is entitled to a great deal of credit for getting us to the point we are, but we have been surging and i believe the rally that president trump came and did yesterday along with vice president pence's trip across the district will put us over the top. stuart: north carolina has a very large african-american voting population, and last night, president trump was very strong on the all-time record low unemployment rate for african americans. what kind of proportion of the african-american vote do you think you will get, dan? >> well, hard to say that. and i'm not going to make any predictions. it is the majesty of the voters get to decide today. i certainly want everyone's vote. welcome them all. but you know, the fact is

listening to the economic data just on your show a bit this morning, we have a very clear vision between a trump vision of an economy that's booming and taxes are lower and jobs are more plentiful and american exceptionalism continues, versus a vision where nancy pelosi and elizabeth warren and beto o'rourke, all these allies of my opponent want to take the country down the green new deal and socialism and more government domination of everything, and who would want to go there. so that's the choice i think voters have today. stuart: dan bishop is the candidate, the republican candidate. the election today. dan, thanks for joining us this morning. thank you. do want to say, we reached out to dan's opponent to come on the show, democrat dan mccready. he has not returned our calls as of this moment. let's move to other markets, because we got the price of oil. where are we? $58.61 today, continues its up trend of the week. the price of gas, no change from yesterday.

we are still at a national average at $2.56 per gallon. i'm disappointed. i wanted less. the driver of a letesla on auto pilot fell asleep at the wheel going 60 miles an hour in massachusetts. we are on that. more for you. we have a lot more on this one. elon musk has responded to the new electric porsche by saying he's going to the same racetrack to break porsche's speed record. can he do it? we will ask. ♪ devices are like doorways

that could allow hackers into your home. 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: isn't this a little alarming? that is a tesla, as in a car, and we are assuming that the driver and the passenger are asleep. sure looks like it. the car, by the way, is on auto pilot and it's going 60 miles an hour. leave that on the screen for a minute. gary gastelu, fox news automotive editor, with us now. if it's on auto pilot, aren't you supposed to have your hands on the wheel and supposed to be awake, aren't you? >> no confirmation but we have seen a lot of videos like this.

yes, are you supposed to have your hands on the wheel. that's how the car knows you are still engaged. cadillac uses a camera with facial recognition so if you close your eyes it knows you're not looking. stuart: it could be a hoax? >> it could be, but just the same, they could be slumped over with their hand on the wheel and the car thinks they are still in control of the vehicle. i have been in these teslas with auto pilot. there's no set time for when it tells you to put your hands on the wheel. sometimes it just keeps going for miles and miles because everything is fine, the lines are lined up. but sometimes it takes a couple seconds. it really depends on the circumstances of the road at the time. stuart: you know, if this thing ever, i mean, auto pilot, if you ever drive down the highway and you see a lot of people using auto pilot, they may or may not be asleep, they may be just sitting back chatting, that's a little unnerving for those of us who are not on auto pilot. know what i mean? >> absolutely. even at this level, though, advocates say those people would have crashed into any other car or this drunk driver that got caught in california earlier this year going miles and miles and miles would have died had they not had auto pilot to save

them when the police were able to see them and stop the vehicle. stuart: are you as an automotive guy, are you convinced auto pilot is coming in one form or another across all vehicles? >> i don't think it's coming for consumers very soon. full self-driving. there will be advances like this that can drive on the highway maybe but maybe can't pull off, maybe can't drive in traffic on local roads. we do have fully self-driving taxis right now. waymo is testing them. they are not ready for prime time. but to go into a dealer and be able to buy a car, to go from point a to point b anywhere in the world without you doing anything, i don't think that's happening any time soon. stuart: well said. there's a racetrack, automotive racetrack in germany. porsche took their electric car round it. clocked x time to go around the track. now elon musk comes along and says i want to drive my tesla, the s model, around the same track. he thinks he can beat it. what do you say? >> porsche set the electric sedan record on this track,

13-mile track, the benchmark for performance vehicles. also a testing ground for vehicles. tesla is bringing its car to one of these industry pool days where a lot of auto makers go, test their cars. they are not supposed to set a lap time when they are at one of these days. they are supposed to rent the track for themselves to do that. we will see what happens. tesla has never really done this before. really, what happened here is musk flipped the script. last wednesday, everybody was talking about the porsche. all he did was say we are going next week. since then, all anybody has been talking about is tesla again. he knows how to do it. stuart: just a fine piece of publicity. >> absolutely. stuart: why not. it's not going to cost you a thing. thanks for joining us. see you again soon. next we will be talking with a china trade -- talking about china trade with the former vice chair of bear stearns. remember them? he says conventional wisdom is that trump started the trade war, but the elites were the ones who got it wrong.

that's pretty strong stuff. he makes his case in just a moment. we are days away from the anniversary of lehman's collapse 11 years ago. next, ryan serhant joins us. he started in the real estate business the day of the collapse. i will ask him just out of interest, is another housing crisis coming? we will see. ♪ 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. 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. "have you lost weight?" of course i have- ever since i started renting from national. because national lets me lose the wait at the counter... ...and choose any car in the aisle. and i don't wait when i return, thanks to drop & go. at national, i can lose the wait...and keep it off. looking good, patrick. i know. (vo) go national. go like a pro. during the fall, everyone who has medicare may be eligible to choose a new medicare health plan. but you may be able to choose a new plan right now. if you answer 'yes' to any of these questions: are you turning 65? do you have both medicare and medicaid? do you have medicare? and are you losing employer health coverage? if you answered

yes just once, you may be able to choose a new medicare health plan right now. call humana at the number on your screen to see if you qualify. and we'll send you this helpful medicare decision guide. the call is free, and there's no obligation. humana has over 30 years of medicare experience and offers a wide range of all-in-one medicare advantage health plans that include medical and prescription drug coverage and valuable extras like: a 24-hour nurse advice line. the silver sneakers fitness program. and mail order prescription coverage. all for an affordable monthly plan premium. and, in some areas, no plan premium. with humana, you'll get more than original medicare alone and have the peace of mind of knowing you're covered for doctor visits and hospital stays. plus, routine physicals and preventive screenings. and when it comes to prescriptions, in 2017, humana's medicare advantage prescription drug plan members saved an estimated $6900 on average on their prescription costs. so call a licensed humana

sales agent today at the number on your screen, to see if you're eligible to enroll today. and say yes to getting the right health care coverage without having to wait for it.

stuart: we are down 88 points on the dow industrials. stop laughing, deirdre. two stocks account for this loss. that's mcdonald's and visa. both are dow stocks, both down big. without those two stocks, the dow would be positive. let's get to our next guest who i believe is a big deal. he's the former vice chair of investments at bear stearns. he's got quite the headline on china trade. here it is. he says most people believe trump himself started the trade war with china, but it was the elites, they were the ones who got it wrong. michael tennenbaum is with us. welcome to the program. >> thank you. nice to be here. stuart: the elite did this, not

trump? >> they perpetuated it. the way i see it, the war started in 1940s, late '30s. stuart: what? >> yes, a war. actual shooting war, which germany lost. in the old days, when you had a war, you borrowed money, you raised an army, you went to war and when you won, you plundered to pay off your debt. we did reverse plunder. we beat germany, then we gave them money. think about that. stuart: wait a minute. what's that got to do with china trade in the year 2019? >> you're just too fast for me. i will speed up. okay. so what happened was germany was rather clever. they kept the currency low, they exported a lot of stuff to the u.s. which is a bargain. think about all those german cars. and they got terrific position. we lost jobs because of the currency depression. japan looked at that and said hello, we can do that. so they kept the yen down, exported a lot of good jobs out

of the u.s. china, they did it best. they said look at this. they did the same thing except they did it bigger. so we are running $360 billion trade deficit and the elites you mentioned, a lot of economists, they say oh, this is okay. that's nuts. every time we run a deficit, that means that somebody made something in another country that we didn't make so we had fewer jobs. secondly, this pile of dollars that's getting sent overseas some day can come back to haunt us. they can come back and claim another currency we have in reserve. so what we are doing is we are eating our seed corn, our grandchildren, you are probably too young for that -- stuart: me? i've got nine grandchildren. don't let me digress. >> i'm just sucking up. anyway, i'm here to flog my book. anyway, what's happening now, because all these jobs we have

exported, we had more social spending, we had to borrow money, we had to guarantee things to keep the old economy perking and we bang our chest and say look how good we are. but if you add up all the claims that are being made on future economy of the u.s., it's a little nervewracking. we play oh, this is fine. stuart: you approve of trump's hard line? >> i think it's way too late. i just wish he or someone had done this years ago because hard to unwind. now you have all this uncertainty that's delaying capital spending and muting the economy which otherwise would be really strong. stuart: the title of your book is "risk." >> yes. stuart: you know about risk. you were the vice chair of bear stearns but you left bear stearns way before the crash which occurred ten years later. it occurs to me to ask, are we now at risk, our stock market, is it at risk, because of the china trade fight?

is that the greatest area of risk for us now? >> i think in the short run, the uncertainty that's created by the trade wars naturally is going to reduce economic spending. i call our economy 80% loot. 67% is consumer spending. when you feel good apparently you go out and buy expensive ties. you feel bad, you don't. consumer spending is 67%. about 13% is business spending. so you are running a big business and trump says we may have these high tariffs, you don't know where the hell to build the next factory so you don't. you delay it. you sit around. so the mood has been extraordinarily good since trump got elected. now naturally, the business spending is cutting back because they don't know what to do, where we're going to end up. i don't think anybody really knows where we are going to end up with china. china has been too smart and they have such a long-term view

and they just keep apologizing and doing the same thing. stuart: okay. we will see how this works out. thanks for joining us. >> that's it? stuart: that's it. you get three minutes. that's what it is. that's television. >> buy the book. now available near you. stuart: now available. thank you very much indeed. appreciate it. stay there for a second. let me get straight to our next guest. let's go from one collapse, bear stearns, to another. our guest got his start in real estate, our guest is not collapsing. i'm just trying to draw a parallel here. on the same day he started in real estate on the same day lehman went under. 11 years ago. ryan serhant is with us, author of another book called "sell it like serhant." he's with us now. okay. look at the mortgage market as it stands today. >> yes. stuart: we are told they are loosening the rules on getting a mortgage. i don't think they are but i am told that they are. and this will lead to another housing crisis. you going to knock that out of

the park for me? please do. because it's not going to happen. >> yeah, no, i think that's fearful thinking. i think the media likes to talk about things that way and i think the media would love another recession to come along because it would give people more things to talk about. stuart: oh, wait a minute. wait a minute. wait a minute. another recession would get trump out of office. that's why the media plugs it. come on. >> maybe, but listen, people talk to me all the time about interest rates are now too low and it's too easy for people to get loans and that's going to cause the next housing crisis and recession. i just don't see it happening. it is still difficult to get a loan. stuart: it is. it's very difficult. >> even for someone like me, i'm 1099. i don't have w2s. for me to get a loan, i have great income, i sell a lot of homes, still relatively difficult. you can do it and that's what's better today than it was 11 years ago. when i first started in this business teaching myself how to sell new york city real estate, i would meet people and they would lose their jobs. i would meet people and they would have to switch careers. they would get lower pays and that was really really difficult. now stability is there, the

economy is doing relatively well. michael knows this better than me, that's for sure. and it's not as difficult as it was but it's still okay. i just think more and more people should not be afraid of home ownership. i think people spend what is it, half a trillion dollars a year on rent these days because they are so nervous. it's that consumer spending you talk about all the time. they are so nervous with their money, their capital, i don't want to invest in a home because i'm told not to, it's going to be scary. stuart: crazy. >> totally crazy. stuart: it's the best investment a young person can ever make. >> for most people, home ownership in the united states of america, where you own the deed, you own the home, where it can never be taken away from you unless you pay your bills, right, this isn't china. they aren't going to come in and say by the way, we should probably take that back from you. it's not going to happen here. at least i don't think it will. it's probably your way to build a retirement fund. if you have to live there anyway, save hundreds of thousands of dollars if not millions on rent which is just

being given to somebody else. it drives me crazy. stuart: for a young guy, you know a lot. i think youngsters -- >> from watching you. from watching you and you know, i will read michael's book now. i'm totally blown away. i don't know where i will find a time to read a book on risk. stuart: what's the name of your book? >> "sell it like serhant." stuart: you just did it. come back again. i have more for you. talking of real estate, you tend to think on the left-hand side of your screen, where do you think that mansion is? you might think upstate new york or some place fancy. it's in kansas. the most expensive house, i guess you could call it that, in the state. $12 million. six bedrooms adorned with priceless art, we are told. a 30-foot waterfall if you want it. it's got its own medieval style tower. this one sure to get some fire going here. apparently men are too broke nowadays, women don't want to

marry them. deirdre: this is cornell university. the journal of family and marriage, publishing this piece saying the lack of economically attractive male spouses is one of the reasons why we are seeing a decline in marriage. the study talks about education level of women climbing over the past few decades and either matching or exceeding what a lot of their male peers have. also talk about the gig economy and you know, there's a couple sort of anecdotal reports saying unless a young lady's dream husband is driving for uber, nothing against uber, nothing against drivers, but that's not the vision that a lot of young women have. for example, if she's in law school, she wants somebody who is a peer and they are just saying statistically that is going lower. for my two cents which has nothing to do with this, i also think there's a lot of social change that has happened. i know tons of friends that live with their significant others before they got married. maybe you don't count them as married. doesn't mean they're not in a significant relationship.

stuart: not sure where you stand on this issue, frankly. deirdre: good. i'm doing a good job as a journalist. stuart: okay. all right. here's another one. millenials are drinking again. that's according to constellation brand. ashley: they stopped? stuart: okay. why does constellation brands, ashley, this is for you, why do they sell alcohol that millenials are drinking more? ashley: because they are having kids. i question whether the drinking came before or after the kids but apparently it came after. i have four kids and i drink. just kidding. 22 to 37-year-olds, that's millenials. the number of alcohol units as they like to call them consumed in a month, 24 in 2013. it's now up to 29 per month. the reason they give is because they are having more children. ryan, you are a millenial. you drinking more these days? >> no. i don't really drink. ashley: there you go.

>> i wake up way too early. stuart: what time do you get up? >> 4:30. stuart: you are a slacker. i get up at 2:45. >> what time do you get to go home? stuart: i leave here, i get home about 1:00. roughly 1:00. >> in the afternoon? stuart: yes. >> okay. stuart: we're done. we're done. thank you, everybody. thank you very much indeed. jonathan morris, is he branching out after leaving the priesthood. he stars in a scene with robert de niro in "the irishman." we will ask him what was it like to work with a guy who is super anti-trump. he will tell us. earlier on the program we had three-time super bowl champ gronk. he's launching a line of cbd products. we just got breaking news on cbd. the ftc wants its warning -- is warning companies about the way they advertise cbd as a possible cure for diseases. we will get into that with the ceo of canndescent, next.

- did you know that americans that bought gold in 2005

quadrupled their money by 2012? and even now many experts predict the next gold rush is just beginning. so don't wait another day. physical coins are easy to buy and sell and one of the best ways to protect your life savings from the next financial meltdown. - [narrator] today, the u.s. money reserve announces the immediate release of u.s. government-issued solid gold coins for the incredible price on your screen. these gold american eagles are official gold coins of the united states and are being sold for the price on your screen. - pick up the phone and call america's gold authority, u.s. money reserve. with nearly two decades in business, over a billion dollars in transactions,

and more than a half a million clients worldwide, u.s. money reserve is one of the most dependable gold distributors in america. - [narrator] today the u.s. money reserve is releasing official gold american eagle coins at cost for the incredible price on your screen. these government-issued gold coins are official u.s. legal tender made from solid gold mined here in america and fully backed by the united states government for their gold weight, purity, and content. do not delay, call now to purchase your gold american eagles for the amazing price on your screen. gold is now on sale at prices unseen in years and this year could be one of the greatest gold-buying opportunities of all time! call now while vault inventory remains. as one of the largest u.s. gold coin distributors in the country, the u.s. money reserve has proudly served hundreds of thousands of clients worldwide.

don't wait another minute, call now to purchase your american eagle coins at cost for the amazing price on your screen. ♪ stuart: well, we thought we would give you a double dose of the beatles today. yes, at 10:30 and again at 11:44. because the beatles sold 300,000 vinyl records in 2018. vinyl. remember that? for the first time in, what, more than 30 years, vinyl is poised to outsell cds. is that right? deirdre: that is quite true. there's a recording industry association of america, they publish this as you say first time since 1986. listen, there are a lot of people who just really enjoy, they consider it authentic to hear the kind of gentle scratchiness you get with vinyl and worth noting as well,

sometimes in some of the streaming devices you can also put in a little vinyl overlay if you really want to hear it. stuart: really? deirdre: yeah. it's a thing. ashley: i like it. stuart: we brought you breaking news earlier. i will repeat it. the ftc is warning companies about their advertising of cbd products for treatment for serious diseases like cancer, alzheimer's and ms. the ftc is saying don't do that. you don't cure it, don't advertise like that. adrian sedlin is with us now, ceo of canndescent, a legal pot seller in california. your reaction to the ftc cracking down on advertising of cbd. >> well, i would applaud their decision. ultimately there's two sides of our industry. there's the medical side and then the adult use side. quite simply, if someone is making claims as to a specific medical benefit, they need to be

able to establish that with clinical trials and substantiate that so it's high time the federal government started to properly regulate both cannabis and hemp-based cbd products. stuart: moving on quickly because we just got word of a sixth death from lung disease related to vaping. this one's in kansas. now, you are a vape product maker. you make vaping devices. this is very bad news for you, isn't it? have you seen a pushback on your business? >> actually, our business was up last month but let me redirect just for a second, stuart. my basic reaction is i'm saddened for the affected families. it's horrific. i'm concerned that bad information is going to be conflated into horrible public policy, but then i'm also reassuring the public as well as

our investors that candescent doesn't use any of the ingredients in question the fda have cited like vitamin e, acetate, pegs. so big picture -- stuart: hold on a second. can you tell me for sure that if i use one of your products, one of your vaping devices with active ingredient thc in it, it will not leave a residue of oil of some sort in my lungs? can you reassure me? >> i can no more reassure you of that as i could reassure you of the idea that over 13 americans die every week from accidental strangulation and suffocation in their own beds from their bedding sheets and pillows. so everything we do as a human being, every activity we engage in has risks and concerns. but what's being conflated here

is the ongoing use of vaping which absolutely deserves long-term study with what is more likely a supply chain outbreak of black market products that use substandard ingredients which regulated providers like canndescent and other top industry providers do not use. that what has me concerned, people talking about long-term impacts of vaping which absolutely needs to be studied, versus more of an e. coli like outbreak in broccoli. stuart: got it. >> people are using bad ingredients in their products and most reputable manufacturers don't use them. stuart: okay. adrian, thanks very much for jumping on the show at short notice. we appreciate it. thank you very much. >> absolutely. stuart: you know, there's a big antitrust case that's trying to be built against google and our next guest has made it his mission to crack down on silicon valley. senator josh hawley, republican from missouri, joins us now.

mr. senator, you are right involved in this. what advice are you giving to the state attorneys general? >> well, be tough and be ready. listen, as attorney general of missouri, i was the first attorney general of the nation to launch an antitrust investigation of google and i can tell you, they will lawyer up, they will say they are going to cooperate but they won't. we had to go to battle with them constantly in our investigation and whether it was over discovery requests, whether it was over basic truthfulness of the documents that they were producing, they will fight tooth and nail just as they do on capitol hill not to be held accountable and they are willing to say and do just about anything. stuart: now, my problem with the googles and facebooks of this world is they know absolutely everything about us. that power is concentrated in the hands of a handful of multibillionaires. i've got a problem with how they use that power in the future. you with me on this? >> absolutely. and the problem is the market concentration, the amount of

data that they have on us, as you say, is in the hands of one or two companies and they are using it to squelch competition. they are using it to actually drive up prices for consumers. they are using it to invade the privacy of consumers. they are using it to stifle innovation. this is the kind of thing that shouldn't happen in a well-functioning free market and that's why i welcome this antitrust investigation and congress needs to take action, too. stuart: okay. josh hawley, republican, missouri, mr. senator, thanks very much for being with us, sir. i know you came on at short notice but we appreciate it. thank you very much. jonathan morris living the good life. i don't know. after leaving the priesthood. he starred in a scene with robert de niro in the movie "the irishman." we will ask him what it was like to work with an anti-trump guy like de niro. he's on the show 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: for the benefit of our radio listeners, i can tell you that the market has turned. we were down 40, 50, 60 points. now we're up all of 11 points. just thought we would tell you that is a turn. next case. jonathan morris, he has a role

as a priest in an upcoming movie "the irishman" which also starred robert de niro. jonathan morris is with us right now. well, well, well. >> how are you? stuart: remarkably well. you played a priest in a role in this movie playing opposite robert de niro, who is a renowned trump hater. how did it go? >> well, from a business perspective, initially i think it's interesting to note this is over a $200 million film by netflix which is totally changing the industry of film. and this is the most expensive film that scorsese has ever done, and when they approached me, they said we want to have this role of a priest in this film and would you consider doing it. i thought i was the only one being considered. i went and they had three real priests, at the time i was a priest, and they had a bunch of these professional actors.

and we were auditioning in front of, i don't watch films very much, i didn't even recognize robert de niro. stuart: okay. >> robert, i'm sorry. scorsese is there and i said to them listen, we have to do this, i'm only interested in doing this if it's respectful and accurate depiction of what i consider to be a holy and important -- stuart: so they changed the script when you wanted them to change the script. how did robert de niro relate to you? he knew you were a fox guy. he knew you were a priest, relatively conservative guy. he's not. how did he relate to you? >> you know, i love the fact that he was willing to, in order to get it right, to get the film right, he was willing to allow me to say this script is not as it actually is. stuart: did he talk politics? >> he was civil. of course. stuart: did he ever mention trump? >> no, not once. and i think that we have to look at people not just on the one side, whether -- what their

politics are, but also what they can do. a lot of people on social media got very mad at me, how could you possibly participate or collaborate with robert de niro, he's an angry man against trump. listen, people are complicated. we have to be respectful of them for who they are which is not just single dimensional. stuart: you have to be respectful of me episcopalian. >> even when you're wrong. stuart: thank you for being here. don't be a stranger. you are welcome any time. thank you. more "varney" after this. ♪ i'm really into this car,

.od . a great price. this is how car buying was always meant to be. this is truecar. but when i started seeing things, i didn't know what was happening... so i kept it in. he started believing things that weren't true. i knew something was wrong... but i didn't say a word. during the course of their disease around 50% of people with parkinson's

may experience hallucinations or delusions. but now, doctors are prescribing nuplazid. the only fda approved medicine... proven to significantly reduce hallucinations and delusions related to parkinson's. don't take nuplazid if you are allergic to its ingredients. nuplazid can increase the risk of death in elderly people with dementia-related psychosis and is not for treating symptoms unrelated to parkinson's disease. nuplazid can cause changes in heart rhythm and should not be taken if you have certain abnormal heart rhythms or take other drugs that are known to cause changes in heart rhythm. tell your doctor about any changes in medicines you're taking. the most common side effects are swelling of the arms and legs and confusion. we spoke up and it made all the difference. ask your parkinson's specialist about nuplazid. stuart: this is coming out as big news. alexandria ocasio-cortez wants to break up the new deal, the green new deal. tell me. >> instead of doing one giant effort, we know she will

introducing bills and legislation, starting with electric cars, safe and adequate housing so on. >> eventual goal eliminating carbon emissions in 10 years from the u.s. stuart: okay. reuters is reporting that mr. trump has asked john bolton to resign. it is all happening. neil, it is yours. neil: you're right. a little bit of a big news out of the blue. it was telegraphed, given fact a lot of insiders have been saying that stuart, john bolton was getting sidelined by no less than the president of the united states. we're getting reports that national security advisor john bolton is going to be leaving his position, leaving the white house. when we get more details we'll keep you posted. what is happening on the corner of wall and broad, the dow stood close to breaking what had been a four-day winning streak, well off our earlier lows, on talk, that is all there is, talk that the chinese are trying to sweeten the pot a little bit offering