tv Varney Company FOX Business December 27, 2019 9:00am-12:00pm EST
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it's working pretty well. cheryl: you mentioned that earlier, you think at least one cut next year, right? >> i think they're on hold after doing a lot of cutting in 2019, they are on hold in 2020. that's going to be wind at the back of the market. cheryl: i'm loving these numbers. thank you for being with me today. lots of fun. everybody, happy friday. that does it for us. "varney & company" is up right now. charles payne is in for stu. you got to be loving these markets, right? charles: i'm loving them because i'm in them. cheryl: so are we, baby. charles: thank you very much. good morning, everyone. right now, looks like we will have another record day for the stock market. dow, s&p and nasdaq all set to open at fresh all time highs. throughout the show, we are going to unleash a herd of bulls who say there's reason to be optimistic. each one will have different for 2020. the nasdaq has had an amazing ride to 9,000. you will be surprised what stocks are helping it got there. it's not all the big tech names you always hear about, but other names. we will share them with you. also, we have to talk about
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amazon. what a juggernaut, online dominating sales for this christmas season. amazon has figured it all out on delivery. they own christmas and the stock reflected it yesterday. it was up huge. we will talk about it continuing. i'm charles payne in for stuart. sit back, watch your money grow. "varney & company" is about to begin right now. charles: another day of market records. joining us, market watcher jonathan hoenig. jonathan, so i know from time to time, last time we were on together was october 1st, the market got hammered that day, and you mentioned japanese yen and some other things. you were cautious about the market. how concerned are you now? because it's been on a heck of a tear since then. >> i think you have to be prudent but i think you have to be bullish, because look, the market has been at all-time highs for months. what has been enthusiastic and i think giving the bulls a lot of
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credence here is the leadership has changed. it has broadened. it's not just the old tech names anymore. it's banks, it's health care stocks, of course it's apple up about 80% this year. my gosh, trends tend to persist and don't forget back in the 1990s, the market was up 95, 96, 97, 98 and in 1999 it was up 85%, the nasdaq, that is, don't fight the tape and don't fight this market that continues to move higher. charles: a lot of people forgot when greenspan usher ed -- coind the term rational exuberance, it was '96. we were irrational and exuberant another four years. >> one note of caution, i do think, you mentioned corraling the bulls. you have to be a little cautious at the same time. here's why. ten years ago, when most people were scared of stocks, most people knew the economic data was bad, they were reluctant to invest. we are seeing just the opposite now. the economic data is good and there's much more bullishness on the street although certainly
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not like in 1999. i think you want to be in the market but i don't think you want to make it an all or none. more than anything, take this opportunity to get your financial house in order, to pay down the debt, establish the emergency fund and focus on some non-correlated assets. 2020 is going to be bright but it's not going to be without some bumps along the way. charles: yeah, and of course this year had its share of bumps as well. lot of people were shaken out of this market. that's why i told cheryl i'm happy i'm in it. it's great to talk about it but not if you somehow along the way got shaken out. speaking of which, the nasdaq is the story this week. it closed above 9,000 for the first time yesterday, and some of the biggest gainers that helped take it from 8,000 to 9,000, they're not necessarily household names. you really have to have been in the market to know some of these things. nxp semi, lululemon was hot at one point, then it wasn't. jonathan, you know, these are the sort of names, i love it when these names participate, i love when they lead, but it's the average investor, a lot of investors haven't heard of them. >> yeah, you are always so good
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in your program about illuminating, looking at some of the under the radar screen names. but more broadly speaking, a rising tide does rise all boats, a rising tide lifts all boats. we have seen that as tech names have risen, almost all tech names have risen. even some of the fangs that of course, apple has been leading the charge. if you have been a bull this year, you have made money and haven't had to look too far to find opportunities. charles: lululemon has been around since 1998. charter since 1993. advanced micro since 1969. nxp since 1953. lam research since 1980. these stocks are around and lurking. it's good for folks to understand there are so many other names out there other than the ones that you necessarily buy. this means that things you come in contact with every single day could potentially be a good investment. >> yeah. you know, one bullish note, one positive note is we saw some element of sanity return to the market this year. a lot of those ipos, wework which was a flop, even peloton
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and uber, lot of failed ipos, you saw the market coming back to companies that were fundamentally more stable, more profitable and that was powering this rally. that's what makes it different from 1999. back in '99, it was usually the pie in the skies. we have seen a much more rational bull market this year. charles: i love that story, it's unfortunate when the ipos go straight down, but what's happened with silicon valley and the ipos bidding up these companies from zero to 10, 20, $30 billion market caps, then having the general public be your exit strategy, i think it's despicable. back in the day, the public took the ride with you. these days you say you know what, we got a bunch of users, we will go public and our users will buy the stock and we will get out. i hope wework was the pinnacle of that nonsense and maybe they will get back to sanity. it means leaving money on the table which we know they hate in silicon valley and wall street. >> that's true. you had to hand it to silicon valley. when you look back the last ten
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years, they transformed our lives and made people a heck of a lot of money in the process. netflix, one of the best performing stocks of the last decade, look, they started ten years ago, they were still delivering dvds. so what's going to power the next decade as always is going to be the innovative american companies that are solving needs for the american public that they probably don't even know they have. as long as we have that in this great country, the bull market will continue. charles: i agree 1,000%. thank you very much, my friend. talk to you again soon. let's check on uber, folks. travis kalanick is out, cutting all ties with the ride hailing company. the stock is up fractionally. tesla, meanwhile, those shares have been on an absolute tear. the record run continues today. we have got gene munster on the show later in the morning. he will tell us what he sees in 2020, in part for this company, china. big news there. also talking of course apple. you can't mention gene munster without apple. new share price target, wait until we tell you. it is astronomical. he will defend it. also, want to bring up this. online sales, almost up 19% this
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holiday season. joining us, retail watcher michael zakkore. want to talk about the amazon effect. so interesting, yesterday, because amazon was the number one performing stock in the market, and it had kind of been lagging for awhile, but it was the retail side of the business. we forgot about the retail side. it was all about aws and cloud. the retail side really amazing, wasn't it? >> yeah, absolutely. there's no doubt that what we call the amazon effect essentially means that any business that amazon wants to get into, it does get into and tends to dominate. what's really powered their growth this year, this holiday season, is the perfection of their logistics and delivery system. this holiday season, they quadrupled the number of same day and next day deliveries. they also got five million new customers try the prime free trial, which at $119 a pop, if that goes through, that's $600 million in new revenue just from prime memberships.
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charles: they will have some challenges ahead. i'm not talking about the elizabeth warrens of the world trying to break them up. when you look at walmart stock, target, i think number three or four percentage gainer for the year, they are figuring it out, how to use their brick and mortars as an asset, whether it's people picking up at the store, deciding to walk in or whether they are de facto delivery centers. amazon will have to play more of the brick and mortar game, aren't they? >> absolutely. that's what we call the new retail game. the digital giants have to become more brick and mortar oriented, and obviously, the brick and mortar companies have become much more digitally oriented. target has done a great job of that. walmart is catching up, although there is some friction between the old guard and the new guard at walmart. but what amazon has done is they used to be called the everything store. what they really are now is they are the everything company. the combination of logistics, technology, retail acumen and the role they play for any kind
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of volume the brand hopes to achieve, they are the company that you can't live with or without for a lot of brands. charles: yeah. i know i do have one suggestion for the company. set up a distribution center in my house. this way we can save each other both a lot of time and money. they're there every day anyway. >> same here. charles: michael, nice seeing you. thank you very much. folks, let's check on the equity futures. it looks like it's going to be another record day when we start trading. you can see little bit off the highs of the session but nicely to the upside. now let's check on peloton. that company still recovering from the outrage over that controversial holiday ad. also a major short seller saying the stock is going to go to $5 a share. it's down, it's hammered. is it time to buy this dip? i will ask gene munster that in the 11:00 hour. elizabeth warren blasting pete buttigieg at the last democratic debate for holding a swanky fund-raiser in a wine cave. turns out she had one of her own just a couple years ago. this sounds like another example
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of warren hypocrisy. is it time to take bernie sanders' presidential campaign seriously? democratic insiders are reportedly expecting bernie to win the nomination. i will see what the trump 2020 campaign thinks about this. more "varney" after this. there's a lot of talk about value out there. but at fidelity, value is more than just talk. we offer commission-free online u.s. stock and etf trades. and, when you open a new fidelity brokerage account, your cash is automatically invested at a great rate -- that's 21 times more than schwab's. plus, fidelity's leading price improvement on trades saved investors hundreds of millions of dollars last year. that's why fidelity continues to lead the industry in value while our competition continues to talk. ♪ talk fidelity.
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charles: a new article from politico claims that democratic insiders are saying that bernie sanders could win the nomination. joining me, marc lotter with trump 2020. how much are you buying into that, marc? >> not a lot. we have seen that there's a new candidate rising and falling just about every week, so i'm sure within a week or so, you will get stories about how democrats are panicking because bernie sanders might get their nomination. charles: but that's why i think this is an intriguing story because he hasn't been rising and falling. he has been steady as a rock and he was supposed to collapse after the heart scare, right? everyone kind of wrote him off. elizabeth warren had become a juggernaut. she was going to peel off his voters. and you know, i feel like
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watching the debates, feels like he's gotten crisper, more confident. he certainly believes what he's saying more than i think any other democrat does. the other ones, i think they talk to consultants, they poll test things. i think this guy says what he believes and he puts a lot of work into it. at the very least, he will be a power broker if there's a brokered convention. >> you have to wonder, he feels obviously that the 2016 nomination was taken from him. we'll see how that translates. to your point, he believes in what he says and that should scare a lot of people. when we get in a general election, if it is bernie sanders that we end up facing, that's going to be a pretty fun ride there, as you contrast the boom that we have going on under president trump versus just outright socialism, millions of jobs being eliminated by bernie sanders and many of the other candidates. charles: all of the democrats will have a hard time arguing economy. i mean, they talk it, you can close your eyes and it could be a sound bite from 1972, any year, right. it's the same talking points.
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but the validity underlying the talking points have changed dramatically. i'm not sure how they are going to do it. i would suspect they are going to continue to shift toward okay, things are great except it's not great for everyone. >> i think one of the things, to your point, is that i think the american people are feeling it now. despite what the charts and the numbers say which we obviously know, you point it out so well, how well we are doing, when you look at the retail sales, that to me says consumer confidence. that says that the american people feel good about where they are right now and they felt -- charles: here in manhattan, on the streets of manhattan, on monday, it felt like new year's. new year's all around here in times square, they have to block off all the streets, corral people like cattle. it was like that. it was an atmosphere, an electric atmosphere that to your point, i think people are feeling it. they say success begets success and it's hard to talk that down. i hate that any politician would try, but how else are they going to try to get the nomination to win the white house. >> when you look at their debate the other night in los angeles,
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you heard them basically being in economic denial for the first 20 minutes of that debate. that was the first time really they had ever talked about the economy in a long form way. it just shows you how out of touch they are. they have to make the american people feel like they are not participating, that america is not succeeding in order to get elected. charles: so funny, because in those debates i keep seeing where vice president biden, he's a back bencher. he doesn't say much, doesn't have to say much, seems like no one calls on him. i think they are making a mistake there. they better be tuning him up if he's going to debate president trump head-to-head. it's not like a boxer who doesn't spar, i will just go and fight for the championship night of the fight. they should have him sparring. this guy is not getting any sparring in. >> this is a triathlon. these are the preliminaries. wait until they get into the ring with the president of the united states. charles: let me ask you about the president of the united states. his first campaign stop in ohio, underscoring how important that state is. how is the campaign feeling about that? >> no question ohio is going to
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be in the president's corner come 2020 election night but we aren't going to make the same mistake hillary clinton made. we aren't going to ignore states that are important to the president's re-election and just wash over them, when she didn't go to wisconsin, she didn't go to, you know, to pennsylvania, michigan. we are going to make those stops. but we are also growing the map. that's why you see the president going to albuquerque, new mexico. you see him up in minnesota. we have been to new hampshire. we are going to continue going back to those places. we are going to grow the map. charles: you see all those states in play? >> absolutely, and more than that. this president is not just going to sit on the electoral map that got him re-elected. he's going to grow the map and have an even bigger margin of victory in 2020. charles: when i was growing up, in my neighborhood, someone who really hustled, we called it scrambling, they worked in the post office but maybe they sold french fries on the weekends to make extra money. i have never seen a person scramble for the presidency the way president trump did. he will keep it going, huh? >> absolutely. the difference is that he's got the billion dollar organization behind him this time around. that will --
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charles: sometimes, it proves it wasn't all about money, right? have a message people want to hear, often wins out. good to see you. folks, check on softbank here. the founder resigning from the softbank board after 18 years. the stock is unchanged. another executive departure. gerri willis on the floor of the new york stock exchange with that. gerri: that's right. we have been following boeing, as you know, a lot. it is a revolving door there. heads are rolling in the c-suite. the most recent, michael luddig, former general counsel, adviser to the ceo, dennis muilenburg, who of course famously left as well, and back in october, the company fired kevin mcallister, head of commercial airplanes. so three big executives, out the door. kiboshed. the question, will this satisfy regulators. is this enough change to satisfy regulators and get the 737 max jet back into the air. i got to tell you, the very first thing david calhoun did as
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ceo, called up the faa. you got to think he's trying to make nice. back to you. charles: he's an expert on these kind of situations. i'm telling you, investors watch him. i think he's going to turn it around. meanwhile, let's look at the overall market, your futures here. the dow, s&p and nasdaq of course right now, as you can see on the screen, set to open at fresh all time highs. the rise of skywalker the second best christmas box office ever. we will tell you how much it made after this. most people think of verizon as a reliable phone company. but to businesses, we're a reliable partner. we keep companies ready for what's next. (man) we weave security into their business. (second man) virtualize their operations. (woman) and build ai customer experiences. (second woman) we also keep them ready for the next big opportunity. like 5g. almost all of the fortune 500 partner with us. (woman) when it comes to digital transformation... verizon keeps business ready.
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charles: the second best christmas box office ever for the new "star wars" film but exactly how much did it make? kristina: $32 million. it is the second best but it's the second best after "the force awakens" back in 2015. "star wars" whole saga, there are about nine movies, there are a lot of critiques about it, negative reviews but the movie is doing very very well. overall, on christmas day, a very big day for movie goers. you raked in $80 million so that's higher than last year. if we are going to focus more on box office revenue, who came in as the leader? we know star wars movie is now disney property. disney topping the list when it comes to box office revenue worldwide. number one, they made $10.4 billion, followed by warner brothers, which warner brothers
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does operate dc comics, a competitor. marvel is operated by disney now. third is universal. then you have sony coming in at $2.9 billion. charles: the overall domestic box office was a disappointment, wasn't it? down pretty big this year? kristina: good point. you had box office revenue expected, still expected to fall 4% which could actual lib tly b sharpest decline in the past five years. the question is why is that, is it because of streaming platforms? most likely yes. it's not like people aren't watching. charles: i think it's also hollywood has lost the art of storytelling. kristina: editorial decision on that one. charles: quick check of the futures, folks. we will be higher across the board. when we come back, the opening bell. i'm happy to give you the tour, i love doing it.
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charles: the faa proposing a drone delivery rule. tell us about that. kristina: they want all drone owners to implement an i.d. system within those drones so a third party can track because you think all the drones, especially the situations where some drones even flew towards airports, you need to be able to have a hold on it, so the faa is now implementing this. you have three years to have this i.d. system tracking. it could have an effect, though,
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with certain companies. we know that amazon, google, they are all rushing to create delivery services with their drones. even walgreens, that's what you see on the screen there, they want to do the last mile delivery with drones, so of course, when you have regulators right now, you have to be able to track it and so this is the latest thing so that there's no security threats with these drones. that's the reason why they have a remote i.d. system but it's three years away. charles: i think it's amazing how the faa is like it's going to be a long time before we allow drone delivery and amazon and everyone else, you're right, we are going to continue to work on this technology and it's not going to be a long time. for whatever reason, private industry believes it's going to happen sooner rather than later. kristina: it's the rules and regulations. imagine you as a human walking couns down the street, having all these things flying. will it create traffic in the air, crashes, et cetera. we have to figure out how to mitigate risk there. charles: it's going to be part of our lives soon. kristina: i know. i know. charles: thank you very much. folks, the opening bell is going to happen in just about 16
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seconds. let's face it, it has been absolutely remarkable. some folks refer to this kind of stuff as a melt-up. i think that's sort of disingenuous. we have had great news every day that helped power this. yesterday it was all about amazon and the american consumer. today we will see if that continues. we will populate the board for you as you hear the opening bell go off. any moment, yesterday, keep in mind, the weakest stock was boeing. it continued to sink. keep an eye on boeing today. it will be pivotal. but we start with the same momentum names. microsoft, apple, cisco, leading the pack. it's just phenomenal. nike of course doing very well, also. we got the ringing bell. the dow is up 51 points. do we have time to take a look at the s&p 500? s&p 500 up also, pretty nice. of course, the big story this week has to be the nasdaq. in november of 2008, it was worth a little over $3 trillion. now it's heading to $18 trillion and another all-time high.
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it is absolutely amazing. apple is another story. this stock has been amazing. think about apple a year or so ago when they had their earnings report, they said we will no longer break out iphone sales. the stock was clobbered, clobbered. imagine if you bought it then when everyone else was selling. then there's amazon which ironically has underperformed of late. no longer. it has become a juggernaut once again after the holiday sales numbers from yesterday. it's more than a cloud play. it's going back to its roots. then there's microsoft. today, "financial times" naming their ceo the person of the year. that stock also at another all-time high. joining us now, d.r. barton along with kristina partsinevelos. d.r., you say the biggest potential market upset factor could be the hong kong protesters. make your case here. >> yeah. you know, everything you have laid out, charles, has been, you know, overcoming this uncertainty, overcoming this uncertainty. well, that's one of the uncertainties that we haven't yet pushed off the table.
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if those things continue to escalate, the hong kong demonstrations, they are kind of getting a renewed little push here around the holidays, that's something that could come in and trickle down to the china/u.s. trade negotiations for the longer term and could put some chill on there. but that's about the only thing i see out there right now that could dampen the spirit of this high momentum market. kristina: what about north korea, given the drama that's been going on and the christmas gift we never received? are you concerned about that? >> well, it's always on the table. that is one that is a continuing baseline uncertainty. it's not going to be one until until something, until something happens there and i don't think that they have it in them to want to poke a stick at the bear right now, being us. charles: yeah. in the meantime, d.r., you know what, listen, we always wonder and we have to manage risk, so we both understand the importance of that, but riding
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this wave right now into 2020, how far along do you think it goes? how much wind is in the sails right now? >> well, some good things are happening in addition to the stuff we have talked about and the nice case you laid out fundamentally. technically, we have seen the s&p equal weight index so where all the stocks are weighted equally, not by market cap, hit an all-time high six straight days, then usually you get a pullback, then it did a seventh. today it is likely to do an eighth. when that's happened, it's only happened 30 times since 1990 and that gives us about an 80% chance to be higher one month out. so a lot of good things technically happening, a lot of good things fundamentally happening. i can't see us really slowing down until sometime mid-first quarter and i think recession talk for 2020 for me is off the
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table. kristina: 2019 was the year the recession never was. i do think we saw a lot of investors play a defensive play, with keeping cash on the side so heading into 2020, there is so much cash on the side that the assumption usually would be that it would be going back into the markets to help inflate the prices just within the short term. >> well, you know one of the interesting things that happened in that time where people didn't -- there was the hated bear, people didn't want to get invested, they were buying things like consumer discretionaries. we talked about this. the utilities, those stocks had the great runups in the late summer, early fall, and now we are rotating back into the risk-on names in tech, semiconductors, things are really popping in those areas again. i think that just bodes well for the continued momentum of the market. charles: finally, the professional investors stopped worrying and got into the game. they were sitting on record amounts of cash because they are so brilliant. i want to ask about tesla, another stock that a lot of
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experts that were wrong, now on a sizzling record run as you can see on your screen, folks. that's an all-time high. good news coming for them out of china this time around. the earnings, now the guidance, rather, wall street now racheting up its price targets on this thing. d.r., what do you think? you think it's a short, though? >> yeah, well wedbush i think put that, raised their price target by a hundred bucks -- charles: gene munster. >> yeah. that got a lot of news. so you know, i'm seeing, charles, that i think we have overstepped. this is a parabolic rise and i'm talking about a short here for a trading play. in the next week i'm going to be short this thing. i have been on both sides of that trade the last couple years, had a couple that worked out really well, one or two that didn't. but i think right now, this is just technically, it cannot continue -- charles: we are playing with fire. we are playing with fire, my man. kristina: if i could just weigh in, you're not accounting for
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china right now. the latest news hitting the wires is tesla we know is going to create the gigafactory in shanghai but they are also going to deliver cars made in china to employees on december 30th. i don't know the number. but the electric cars will compete with china's neo over there. this is contributing to some of the movement we are seeing short-term within the past 24 hours. i wouldn't discount the fact that this could be a big move and taking over the chinese market over there. >> well, i think that all of those things are already priced in here. we are priced to perfection at these levels. we will get one more little blowoff push and then i'm going to make some money on the downside and reconsider. charles: i would also say that electric cars have been an absolute unmitigated disaster in china. if you pull up a one-year chart of neo outside of the recent bounce, it has been -- at one point it was down 70% this year. the chinese government, though, like most governments, will continue to pump money into that. otherwise, that whole area would be dead as heck. what's not dead, in fact, is
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amazon. it's interesting because yesterday, the pop, it was back to the old amazon, about being a retail juggernaut, because the last couple years it has been about their cloud, aws. now they are dominating, they are dominating in delivery. they even told fed ex you got are shoddy. they got the one-two punch. can the stock get above the $2,000 range and keep going? >> absolutely. this is one that i own personally, the company recommends it. i believe what amazon has given us recently has been a gift. it hasn't kept up with the other big mega-tech stocks and you are exactly right, charles, that they are showing their strength across the board. that number came out last week that amazon now delivers more packages than ups, fed ex and the u.s. post office combined, and they just got into that business two years ago. these guys know how to execute. the people in this company, the men and women that are running that company, are doing things
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that we haven't even considered, and they are going to play catch-up. i said that on air tuesday on this show and they are going to be a star in the first quarter. charles: let me go to the big board here. the dow is now up 58 points. it's looking great. but again, we talk about these big names. let's check out some smaller names. michael's, the arts and crafts supplier, they named a new ceo. the stock went public, hasn't fared as well recently. check out walgreens, this stock is gangbusters. full disclosure, my subscribers own it, took profits yesterday, got a trailing stop on the rest. the company reported better than expected earnings yesterday. they have critical tie-ins as well. then travis kalanick officially out at uber. he's left the board, sold out of his stock. we will see what happens there. still a lot of doubters there. obviously he's one of them. let's check on the ten-year. that does not get enough press. remember the inverted yield
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curve? remember that? those scary days in august? no longer. now the big debate will be hey, the yield's too high. when we get over 2%, watch it put a little pressure on stocks but the big number will probably be 3% on the ten-year yield. meantime, that's a healthy yield for stock markets. gold is back above $1500. lot of people like it as a hedge. i like the gold stocks. nevertheless, gold here looking pretty good. then there's oil, which has been on a real quiet rally. it's still in the trading range, right, that range sees huge resistance around 64, 65. great support around 54, 53. it's been range-bound for awhile. still hard to make money in some of the oil names. they have some debt issues. i want you to focus on home depot, up almost 30% since last december. d.r., you sa i ty the stock is bouncing off a key support level. make your case. >> yeah. that $210 level it's been over the past two years has been a place for a lot of reaction. we hit that just a couple weeks
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ago. we are bouncing strongly off of there. home depot's november earnings report disappointed because they said some of the things they are doing to invest in i.t. for their business-to-business sector had not come to fruition quickly. that's the key. next year, 40% to 45% of the revenue is going to come from b2b. that will propel the stock. kristina: if you had this stock five years ago, you would have seen the share price increase 110%. strong company. charles: for what it's worth right now, my wife says lowe's is better than home depot. she buys all of our stuff, she's the person in the house in charge of that. i'm going with lowe's until she tells me otherwise. other than that, i'm going with you on everything. d.r. barton, thank you very much. let's check the big board. we are edging towards the highs of the session. dow jones industrial average up more than 70 points. well, "home alone 2"
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well, attention bargain hunters, if you're looking for the best deals on electronics, today is your lucky day. this according to a new report that december 27th actually beats out black friday and cyber-monday for electronic deals. joining us, cyber-guy kurt knudssen. how good are these deals? >> charles, 27% savings is what you can count on today for many consumer electronics. this category that you see the best savings on will be video games, consoles, smart speakers, tablets, adobe analytics does these predictions pretty spot-on. just scanning some deals right now, the best buy is consistent with that. we had an xbox 1x, one terabyte "star wars" bundle, it's $150 off $350. those sales are accurate. they are out there. if you waited and you are ready to spend on some consumer electronics related to gaming, today is your day. holiday spending, by the way,
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online up already 19% according to mastercard spending pulse and 3.4% up overall. that includes regular retail. charles: was there an electronic must-have? what i ended up buying was a lot of those nintendo switch lights. i bought maybe ten of them, gave them all away. had some people showed up at the house, i wasn't anticipating, which always happens, but all the kids seemed pretty happy with that. then i heard the xbox, new xbox was pretty popular. >> a reminder, i need your home address if you give out unexpected gifts. you are a good gift giver. that was a hot item. the switch was hot. probably the hottest item of the season were the apple airpods pro. the pro version at $250, out the door, sold out most places at this point. wait times now into mid-january to later january for these noise-canceling headsets that have just been -- i mean, for the sake of apple, this is one of those unexpected consumer
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electronic innovations, when they first came out without the noise-canceling headsets that now have become worldwide the number one selling in-ear headset. charles: just remarkable. i've got another one for you. switching gears just a little bit. youtube now, they say they are considering screening all children's videos. exactly how is this going to work? >> it's not going to work. it's not going to be -- here's the deal. the ceo of youtube obviously a company underneath google, has had this dilemma since september when the ftc gave them $170 million fine for violating children's online privacy protection act. this watch is out for kids as it relates to the digital and online world. they were found to be very guilty of not really screening any of their videos so it was on the table that a team of about 40 people inside of youtube would start off doing these individual screenings of the
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youtube kids' section and it was scrapped. it was scrapped because here's the deal. you got this stuff that's now just biting at the heels of google and big tech that it would be an antitrust stimulant. it would be one of those things that would just start chomping with antitrust words all over it. so here's what they are going to do. beginning january, we are just days away, they are mandated according to their settlement with the ftc to have a made-for-kids label on video that is determined safe for kids. what youtube has decided to do is say hey, our content creators are the best at deciding what's made for kids and what's not. i think it's probably a big mistake for them because inevitably you are going to have irresponsible content creators and the internal community won't catch up fast enough so they will be violating these laws and then they will have to pull that down but yet they will have
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already harmed the children, according to the law. so this will be interesting to watch over the next year because compliance in this is going to be very very tough. charles: i know my 7-year-old granddaughter loves youtube, roadblocks. >> they live on it. charles: they really do. it's absolutely remarkable. kurt, always a pleasure. thank you. >> happy new year to you. charles: you, too. hey, a 20-year-old dallas maverick player signing a huge money deal with nike. tell us just how huge it is. kristina: it's crazy that he's only 20 years old. it's a five-year contract, seven-figure deal. we don't know exactly the numbers. but this is a huge deal for a 20-year-old who said he grew up idolizing michael jordan and now he will be part of the nike team or at least have that contract with them. if you don't know him and i don't follow basketball that well, he's the third pick in the nba draft. also, here are some stats. more 30 point triple-doubles than any player under 21 in history. this is only his second season in the nba.
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it seems like last night, he did okay. he did well. charles: he's really good. he's exciting. should bring a lot of excitement into the league. seven figures might be low. kristina: you think that's low? charles: might be. let's check on the markets. you can see the dow holding its gains this morning. we are up 60 points here. your big winner, apple, intel, nike. then on the lower side of it, you know, not anything disastrous. the biggest loser down like 19 cents or something. your next case, concert and game tickets have become so expensive that there's a company that sells tickets to shows and sporting events dirt cheap. of course, there's a catch. i will tell you exactly what it is, next. [ dramatic music ]
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charles: concerts are now the most expensive they have ever been. ticket prices are up a staggering 55% in the past decade alone. that's where our next guest comes in. his app allows you to buy cheap tickets but you have to wait until the concert has started. joining me, brad griffith. brad, so you know, it's intriguing but why would anyone wait, you know, how does it work? >> yeah. so we built this app specifically for the last-minute. the last-minute marketplace for live event tickets.
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essentially, we are enabling a new behavior. we surveyed some customers, 27% so far have bought a live event ticket on the day of and we are really purpose-built for that last-minute use case. it's incredibly seamless and easy to buy on the gametime app and you, as you mentioned, can find some tremendous values on the day of. charles: you are matching up the sellers and buyers, though, right? i'm running late, something came up, i can't make the show, i go to your site, your app, and say hey, listen, i've got two tickets, can't make the show, will you sell them for me? >> exactly right. so if you can't make it, and that happens actually quite frequently. certainly during the holidays, something comes up and you can't make it, you go right on the gametime and we will sort of list your tickets for you and price them for you as well, to make it really easy to sell them at the last minute, and the other use cases, really easy to buy them at the last minute, too. really fast to check out, only ten seconds on gametime which is much faster than i think the
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competition. so we really enable both sides to have a great experience, both the buyers and the sellers. charles: the ticket industry itself, there's always been some complaint there are a couple behemoths there, they are dominating the industry and there's been no room for innovation. do you kind of see that as well? >> we don't believe there's no room for innovation in the ticketing market. certainly in 2013, we launched on this idea that everything else was built for the web, maybe the desktop interface, right, it took two minutes to check out. we built a ten-second experience specifically for mobile, so since 2013, we really built on top of that experience, to make it even faster and easier to check out. charles: i got 30 seconds. we got a lot of giants ticket owners here who want to know if they can sell their tickets on your app. does it work for sports? >> oh, it definitely works for sports. yeah. it tends to get chilly out there in december. charles: especially when your
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team is losing all the time. >> yeah. then prices will fall. i think sugar bowl i heard is under ten bucks to get in. you can get some extraordinary values in the colder weather. charles: brad, sounds like an amazing deal. i'm going to check it out. congratulations. it really is a fresh idea. we appreciate it. >> thanks. appreciate you. charles: speaking of fresh, folks, fresh meal kits delivered to your home was all the craze for awhile but a top steakhouse owner says the novelty is wearing off and people are going back out to eat. we will be on top of that. millions of americans suffering from alzheimer's now the psychotic drug lsd is being looked at as a possible treatment for that disease. we will talk to a former goldman sachs banker who is spearheading the study. elizabeth warren slammed pete buttigieg for him holding a fund-raiser in a wine vault. a new report says she did the exact same thing. she had her own little wine party of her own. stay with us. the second hour of "varney & company" straight ahead.
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charles: 10:00 a.m. on the east coast, 7:00 a.m. out west. i'm charles payne in for stuart varney. we've been open for about 30 minutes. record with the dow. but the s&p and nasdaq starting to give some of that back here. we will look deeper into that. the nasdaq has been on an amazing run to get to 9,000. big tech names by the way not the only things that contributed to it. we will talk to a market watcher who says it could actually go to 10,000 in 2020. first some of those stocks that helped us reach the 9,000 threshold, lulu lemon, charter, advanced micro, the number one percentage gainer on the s&p as well. nxp, lam research, all magnificent winners over the past 15 months. not the typical names you hear but they have been around for some time and doing their magic here. also in this hour warren getting blasted for hypocrisy after she slammed buttigieg for holding a fund raiser in a wine cave. she once held an event at a wine vault. we will tell you the difference.
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no we won't. wait till you hear how much former united autoworkers union president spent on things like villas, cigars, dinners. it is a scandal that's rocking the union. the second hour of "varney & company". we're just getting started. let's start with this stock market, the nasdaq cracking 9,000. still holding above there this morning. want to go to a market watcher who has been bullish all along. ray, now, on nasdaq, you actually see it going to 10,000 in 2020. what takes it there? >> yeah, there are a couple factors on the 10,000, but a lot of it is going with the big tech piece, the trade wars are going to calm down, but it is also the fact that a lot of money on the side lines are coming back. it is coming back in the market because people feel like they missed out on the last rotation.
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charles: so interest interesting because of the the names in the fourth quarter they have been absolutely on fire after waning a little bit. you know, there have been some other names here too; right? think about this lulu lemon was a serious hot stock when it went public, charter advanced micro, nxp, lam research, all these names have had really really good years. the semiconductors in general have had a good year. i love the idea that this is even a broader-based rally than just the so called four or five horsemen. >> i agree. people should look at enterprise software stocks, b to b, cloud, ai, those are the three magic things things like service now, sales force, adobe, these are companies that are posed to take off because they're dominant in their categories and there's two or three players serving b to b needs whether it's hr, finance, marketing, all in the background. it's definitely solid, good dividends, good returns and a lot of growth, 30 to 40 percent
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in a lot of those categories. charles: along that thinking, do you see a lot of acquisitions, do we see a bunch of takeovers in this space next year? >> i think we will see a lot of acquisitions, but they will be small acquisitions and probably see a few megamergers as the consolidation both on of course the semis always have some kind of consolidation and as you see that happening in enterprise software as well. charles: let's focus on some individual names now, if you don't mind. i want to start with facebook. you have a target of 215. when is that going to happen? what's going to take it there? >> well, we're going to see a lot of growth; right? it is an election cycle. facebook has done well during election years. they have done also well during the holiday season. those numbers will come out in later in january. you will see people realize that they did really well on ads and growth. instagram is still doing amazingly well for facebook, probably the biggest driver of growth. we will have to see where the regulatory overhang hits. that's why that stock hasn't been forecasted at 250.
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the 215 would be a lot of overhang in terms of what regulators are looking at. charles: i'm glad you brought that up. it felt like every time the regulatory stuff started to come to a boil to the top, those stocks stalled. they didn't collapse. they certainly stalled. they weren't the type of juggernauts they were before. it is highly unlikely that any of that's going to go away. you have more countries in europe, italy now saying they have a tax, sort of internet tax to join france. other nations considering it. everyone looking at them. warren is looking at them. they have got some issues. do you think this year they can pierce right through those based on what, the fundamentals? >> i think they are still going to get past those privacy things. not been a big overhang for google, amazon, others, apple is built in a different way, subscription model so people trust them. we have to come to point where the data is a property right. individual properties protected
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under patents. your personal data has to be owned by you and at some point there's a value exchange and people have to explicitly pay you for that. when we get to that point, i think the regulatory overhang will go away. but we're not there. we're not there for another five years. charles: wow. you know, i brought that up in a meeting recently with my team and almost all the young folks on our team feels like they get enough benefit from these products that they don't mind the privacy issue. i think at some point there will be a push for us to get more for the data we generate for these companies. >> we need to fight for the privacy rights or they will go away. we don't want to live in a state like china where they don't even know about the freedoms or privacy they lost. there's something important that we need to keep the internet free and personal data and privacy free. charles: amazon the best performing stock in the market yesterday. heavily weighted stock in several exchanges including nasdaq. you see it going to 2050 which doesn't sound like a major move in my opinion. i don't even know if that takes out the old high. >> you know, it might not.
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here's why. there's still a lot of investment going on in the back and infrastructure. they are taking out ups and taking out fedex at the same time on the back end for logistics. they are buying warehouse space. warehouse space is getting more expensive. a lot of build out that still needs to happen. they will be adding more groceries and more retail store operations in play, that plus the investment that's going on the cloud side. they were still investing. while we see those growth numbers that are going on, they are still reinvesting at a huge clip, they will pull a big gap against the competition. a long play in my mind. i think 2050 is reasonable for the year. after that, they will pull further ahead of the competition in the next two years. charles: keep it right there. there's a lawsuit now on the ring device. >> yeah, lawsuit filed by a plaintiff who argues that amazon did not do enough or was negligent and did not have robust security to stop hackers
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from hacking these ring security camera, amazon owns this company. hackers told his children who were playing basketball in front of the house commenting on the game and to come closer to the camera. and this isn't the first example. there's one that was trending very recently where a mom in mississippi, she shared that her 8-year-old was in the bedroom. you see this bedroom. it is an incredible video, and a hacker says i'm santa claus. don't you want to be my best friend? this lawsuit that's being filed right now says there's six other cases across the country, and amazon hasn't been doing enough to stop these hackers from getting into the security cameras. charles: i saw a survey and people are very concerned about this. they don't mind when law enforcement uses the ring, you know, as a device and a tool, a great acceptance of that in america, but people are definitely concerned about the idea that a hacker has this kind of ability to tap into their home and have this much knowledge about their families. how is this going to impact the
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company? >> i think it's going to be a blip for a little bit. that type of security -- i mean when you have access to -- you know, be able to see it yourself, and someone else can hack it. there's a little bit of security level that on all devices that will get upgraded over the next two to three years not just on the ring cameras but almost every device you are using, any kind of door cam, any kind of security cam that can see into your house, i think most of the friends that i do know can probably hack those in less than an hour. enterprise security is not there for consumer devices in most cases. i think that's what they are going up against. but the packaged stuff, the amount of crime and petty crime that's gone on, where i live in california, where you can't get prosecuted for that, that's why there's a lot of these cameras at play. there's a balance, okay am i going to get hacked or do i want to see who is stealing a package or someone about to break into my house? i think people are weighing those trade offs right now. charles: when it comes to this technology stuff, you know it so well. we appreciate you sharing it. thank you very much.
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>> thanks. i'm here with the hardest-working man on fox business. charles: thanks. let's check on the big board. all the major indices off the highs of the session. the dow back up to 29. nasdaq and s&p just fractionally lower. check tesla, a monster, monster story. it's a big-time name hitting another high. they have confirmed that factory in china. you can see the stock. it's giving back a little bit, but it's been a monster high. apple at an all-time high also. we're going to bring on a guest who is going to make the case for apple going to $400 a share. that's a big move from where it is now, 291. now to the 2020 race. elizabeth warren blasted pete buttigieg at that democratic debate, for holding a high priced fundraiser in a wine cave, but apparently she has her own, just a couple years ago, in san francisco. i want to bring in daily caller editor-in-chief. chris, golly, i mean does she know people are going to check into this and say hey, maybe she
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had her own little, you know, little fun at the raising money from billionaires in a wine cave? i guess it's a wine vault. might be a difference. >> she seemed like she was caught flat footed right off the bat when she attacked pete buttigieg. and he told her that her net worth was hundred times his and he was the only on the page not a millionaire or billionaire. she did come back and say people didn't buy her time. she's an interesting person to play as a class warrior, which she's played what. she has a 3 million dollars house, 7 minute walk from harvard university, $800,000 condo in washington, d.c. she and her husband are worth an estimated 12 million dollars. all of that, by the way, they earned. she came from a poor background. she didn't grow up with any money. it wasn't gifted to her. she earned it in academics on the coast. now she's turning around and trying to use that academia to
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attack people who maybe earned it in the heartland. it is a hard one to pass. she's guilty of all these things. it is difficult to have a purity test when you can't pass it. charles: if she would have stayed maybe focused on the fact that it wasn't transparent, she might have gotten some wiggle room there. the e-mail that was sent out, the invite, hinted at a quid pro quo. so there were other things that she could have done, but, you know, i think you are right. just the idea that every day on that stage, all of these candidates have to find a way to bring in politics of envy, to bring in politics of class, and to suggest that most americans can't make it in this country, and i find that to be very disappointing. >> she does have one point here, and that's pete buttigieg is absolutely a huge -- the new york finance class are huge fans of pete buttigieg. they like him. they think he's an alternative to warren or sanders. somehow they think he's moderate. he's certainly to the left of president obama on healthcare. even if he's to the right of
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warren and sander who want to eliminate private insurers right now. he's a favorite of finance. that bugs her. that entire stage is the politics of envy up and down. charles: chris, great seeing you, we will talk to you soon. >> thank you. charles: more massive protests expected in hong kong on new year's day. what will that mean for u.s. relations with china and that phase one trade deal? we will break it all down for you later in the hour. but first, a former goldman sachs executive is spearheading a push to use psychotic drugs to treat alzheimer's disease. he is on the show next, and he's going to explain exactly how it works. a powerful winter storm is shaping up in the midwest for this weekend. up next we will tell you what to expect on the last weekend of 2019. i recently spoke to a group of students about being a scientist at 3m. i wanted them to know that innovation is not just about that one 'a-ha' moment.
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country. fox news meteorologist adam klotz has the details. adam? adam: hey there, charles. this is a storm that's currently spinning off the west coast. we have seen it kind of run over portions of southern california. there it is. it will lift to the north, eventually running into the plain states and midwest. no surprise here, really covering a very large area. we have got winter storm watches and warnings from southern california running all the way through the plains and then into the upper midwest. winter storm watches and warnings that will linger all the way into the weekend. here's your future radar. you can pay attention the time stamp up in the corner. as this lifts, everything off to the east is actually going to be very heavy rain, but on the back side of this system, that's where temperatures are cold enough, we will see snow coming down at times. fairly rapid rates. our forecast of precipitation with this entire system. again, if you are out in front of it, no snow whatsoever. it's been too warm. very mild across the midwest. but here we are looking at spots getting anywhere from 6 to 12 inches. charles, i think there's going to be isolated areas that get up to 18 inches, maybe 2 feet of snow. this is going to be a big one. it is happening really on saturday and sunday across the
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plains and upper midwest. charles: thank you very much. meanwhile, folks, the united autoworkers union boss has been exposed for lavish spending on the union's dime. kristina, what do prosecutors say he did? >> there are details -- some of the details are -- this is part of a larger investigation into the uaw and fiat chrysler. prosecutors are alleging that union bosses really misused 1.5 million dollars of funds. what were they spending it on? let's just see, $60,000 on cigar and tobacco related purchases. $40,000 on training. what about 6,500 at a steakhouse. or you could see $25,000 just on meals in palm springs. that's not including money that was spent on san diego zoo safari park, horseback riding on the beach because they did these excursions for their family members, and then also another 80,000 -- the list goes on -- on
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golf. a lot f it has to do with palm springs. but they took advantage of the money. charles: timing couldn't be worse. according to gallup, unions were enjoying a comeback at least in public opinion, the best ratings in 50 years. not when these kind of stories come out. big news here, a possible breakthrough in treating alzheimer's. clinical trials have shown that the psychotic drug lsd could be used in treatment for this disease. we know it impacts millions of americans. former goldman sachs banker is the founder, who has spearheaded this research. he is in studio now and will tell us about this. this is an amazing story because we know that this is one of the big areas that biotech, the big medical companies have been trying to focus on plaque for a while. i'm not sure where that is right now. how did the idea of lsd come about? >> well, clinical trials for psychedelics have revealed that they have powerful and long lasting anti-depressant effects.
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researchers at john hopkins are now evaluated whether they can successfully treat depression specifically arising from alzheimer's disease. however, the full therapeutic potential of psychedelics extends far beyond psychiatry. for 6,000 years, native americans use psychedelics as an anti-inflammatory medicine and our research has revealed that psychedelics -- some psychedelics at very low doses are potently anti-inflammatory. our recent clinical trial of lsd, very low dose in healthy older adults demonstrated the safety and tolerability of lsd, and it provides a foundation for the development of low dose lsd and a new class of not so psychedelic psychedelics for the treatment of -- charles: it would still be phase one, the toxicity part of it make sure it is not going to kill people. >> that's right. charles: you get into the efficacy and other things after this; right? >> that's right.
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these compounds address the inflammation associated with aging, sometimes termed inflamaging. charles: let's bring in fox news medical correspondent marc siegel. biogen has been a big name in this space. the stock took a big hit on a study. they said we broadened it out, it may work. the idea for them is plaque buildup on the brain. what do you think about lsd perhaps being able to do something here? >> charles, actually we haven't left the plaque yet because that would be a cure, to prevent that plaque from building up called beta amyloid. shifting gears to what you are talking about here, this is pretty exciting. it turns out that alzheimer's disease is also associated with inflammation. and you know, when inflammation starts to build up in the brain, the first place it goes are these receptors that produce
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serotonin or happy hormone in the brain. early on with alzheimer's you see depression, anxiety, problems processing thoughts. if you can get rid some of that inflammation early on, you may see a slower progression of the disease. he's right. that lsd and other psychedelics have been shown in micro doses to decrease some of this inflammation. as you pointed out, charles, early trials shows that it's safe. now we're moving on to see how effective it is, and i think it's promising. it's promising to decrease some of the symptoms of depression and anxiety associated with early alzheimer's. remember, lsd got a bad name in the 60s because it was used for different purposes, illicitly. now we're starting to look at the therapeutic value. charles: that's back in the day when people were tuning out and dropping out. this is fantastic news. thank you very much. appreciate it. dr. siegel, i want you to stick around. i have another topic i want to
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yesterday i felt bold with boundless energy. this morning i woke up calm and unbreakable. tomorrow? who knows. age is just an illusion. how you show up for the world, that's what's real. what's your idea? i put it out there with a godaddy website. make the world you want. charles: the fda approving a new drug to treat migraines. dr. siegel is still with us. tell us about this. >> this is a breakthrough drug. this has reached the end of the line. it's now approved. it's a drug coming from allergen. i will tell you why i'm excited about it. we have drugs to prevent migraines. we have 37 million migraine sufferers in the u.s. a lot of people get stuck having a migraine. what do we do then? we use drugs called triptans.
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the problem is not everybody can tolerate them. they are a risk for heart attack and heart problems. we can't use them in everybody. along comes this new drug that goes by a totally different mechanism. it looks at what causes you to get the arteries in the brain constricted, during a migraine, these arteries get overly dilated during a migraine and this drug constricts the arteries. do you know what happens? the migraine goes away by constricting the arteries. they tested this drug on a ton of migraine sufferers and found that almost 100% of the time it relieves the migraine. charles: wow. >> this is going to be extremely well utilized in people that can't tolerate the other drugs. the best thing you can do charles is prevent the migraine in the first place. a lot of drugs do that. magnesium, vitamin b, lifestyle changes does that. charles: dr. siegel, thank you very much. let's check on the markets here.
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we have been range bound all session. we gave some of it back. we're reigniting again, if you will. there's a lot of money on the side lines. used to buy deep dips. now you buy the shallows of dips. again, we had at some point today all-time highs across the board, all the major indices. more varney right after this. to the outside world, you look good, but you don't feel good. with polycythemia vera, pv, symptoms can change so slowly over time you might not notice. but new or changing symptoms can mean your pv is changing. let's change the way we see pv. you track and discuss blood counts with your doctor. but it's just as vital to discuss
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>> you know stuart always does that, that was a horrible accent. charles: we're going to stay -- [laughter] charles: we're going to stay in the u.k., in the british invasion. netflix they've got this huge series, the crowning, it's been controversial and it is sparking controversy yet again, but this time, it is comments made by one of the stars. kristina, what's the issue here? >> it is about a line in the show. based off queen elizabeth ii's the life. the actress who plays princess margaret. she says and i quote i think we stumbled across an experiment in inbreeding. you had a politician -- a scottish politician was upset about this comment saying it misportrays the people of scotland and you had -- this is part of the script; right? she could have pushed back. she didn't. it seems like the royal family in general hasn't been paying attention to another star too in the show. she asked prince william if he
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had seen the show and he said no firmly and that was it. charles: what's interesting, though, is in this last election, you know, while brexit got the headlines, scottish national party surged, right? so you've got this nationalism budding up in scotland, just in time for a comment like this. it helps them, without a doubt. they could actually be looking for their own exit. thank you very much. folks, let's check on the markets here. been a remarkable year and weekend. two major indices down. the s&p higher. nasdaq fractionally lower. let's take restoration hardwares one of my favorite stocks, been a pure juggernaut. it's been so so high. this company, the stock down 9 bucks. they are joining the s&p 400 from the s&p 600 index. by the way, warren buffett now an investor in restoration hardware. now while phase one of the china trade deal has been completed, there's still a lot to do. let's bring in blake burman at the white house with the latest.
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>> we heard from officials in china earlier this week who say right now who is happening with the u.s. and the china is they are translating the text. they are proofreading the text. they are in close communication to try to get it to the finish line so that both sides can eventually sign off on the text that has been agreed to. we heard from president trump within the last few days, handful of days here as well, as the operating belief is that this will get signed at some point in january, between president trump and president xi, potentially though, it remains a question as to where that could happen. we're hearing the chinese president xi jinping may not go to davos for the world economic forum. it is possible that president trump could head there at the end of january. it still remains a big tbd when this proofreading and translation gets don't, where this will be signed and exactly by whom this will be signed. here's the analogy i have for you, charles, you know, like in horse racing, when the race is finished, you've got the winning
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ticket in your hand, but you need the results to be official and there's kind of that lag time in between? charles: yeah. >> it seems like that's where we are right now. they've crossed the finish line. you've got the ticket, but you can't quite cash it in just yet. charles: we thought we were going to cash it in may and a few things went wrong with the translation; right? >> exactly. charles: blake, thank you very much. >> see ya. charles: the video game grand theft auto five has become the latest front for the hong kong protesters. how is this working? >> it is a virtual game. it is the most successful game in video game history. players can commit crimes in the game in an open world, and what players have soon come to realize in hong kong is they can also dress their avatar as a protester literally wearing very similar clothes and then some of them are acting like the protesters by throwing bombs, vandalizing train stations, attacking police. all of this within the open world of grand theft auto five, and you're seeing sparring happening between hong kong
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players and mainland china players so people have taken to social media over there to comment on this. one player did say the reason why he's dressed up as a protester is to raise awareness of the situation in hong kong, within the video game world, which we know is a huge, huge world, and financially very very successful. charles: absolutely. thank you very much. i want to stay on hong kong. we could see major protests there on new year's day. want to bring in james carafano of the heritage foundation. what impact would this have on our relationship with china particularly at this very delicate moment? >> well, i think one of the things that the administration has done really smart is they have kind of flipped the script. before it was let's look for ways not to antagonize china. this administration says no, let's do the opposite. let's find the push point between us and china so they know where they are pushing against our interests. they have done that across the board. where i think they have been smart is they have a practice what we call linkage.
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they have kind of kept everything in the same lane. i think the trade negotiations, they are in a lane all their own. what happens in hong kong and the u.s. observances and comments and criticism of that, both sides are going to keep those separate. charles: although president trump did sign the sort of resolution that angered china. the administration's been more vocal with respect to support for the protesters in hong kong. there have been more than one occasion when president trump has mentioned the protests with regard to trade negotiations. but i think the overarching theme tell me if i have got this right, the administration believes by just by virtue of coming up with a better relationship overall, they will be able to persuade china more with respect to hong kong. >> well, look, i think the trade deal is important to the united states. it is important to reset that relationship. it is important to the global economy. hong kong let's be honest right now the chinese are destroying their own brand. i mean, they have done more
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damage to their brand by what's happening in hong kong, essentially reneging on the deal of one country, two systems, why not let the chinese double down on the damage they are doing to their own credibility. charles: to your point, james, the situation, even in hong kong earlier this week, there was a massive protest over that issue, and china's really just ignored all of it. they spent a bunch of time in macau, another area where you have two systems and one government; right? you wonder how much this will ever change, but they know the world is watching, don't they? >> absolutely. internally the chinese don't have much to worry about. you commented about the video game where the people in mainland are fighting with the people of hong cob congress -- hong kong. the people in mainland are not obsessed about hong kong. that's calmed the chinese down a bit.
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if it had, that would be an issue for them, but it is not. where it is impacting them on the other hand is taiwan. charles: yeah. >> i think the taiwan is becoming much more antichinese in part because of what they have seen and going on in hong kong. we have taiwan elections coming up. they are going to go very badly for the pro chinese factions. charles: james, appreciate it. >> thank you. charles: remember when president trump made the cameo appearance in home alone 2. the scene was removed by a canadian broadcaster. the president of course tweeted about it. we will tell you what he had to say. plus, far left democrats running for president in 2020, pushing socialism and it seems to be resonating big-time with young voters. we will have a guest to join us next, why do young folks that he knows, why are they rejecting capitalism? more varney after this. ♪
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charles: all right, folks, check the big board. we're holding in there pretty steady. right now dow up 39 points. i want to check on tesla. earlier in the show, one of my favorite market guests said he wanted to short the stock. i hope he got a short in, because citron putting out a cautious note. talking about trump's cameo in home alone 2 was edited out from some canadian broadcasts of the movie. kristina knows a few things about canada. she happens to be here. >> this is the cbc, it seems to be making the rounds because president trump was edited out of the movie. it was a 7 second cameo which we have on the screen right there. this was filmed back in 1992. somebody noticed that it was chopped out of the canadian version, and so they tweeted, and the president has weighed in too, and i quote, i guess justin
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doesn't much like my making him pay up to nato or trade. he continues on to say the movie will never be the same. just kidding. but i would like to press it, though. i know there's a narrative that could be with this. this was edited out in 2014, five years ago. they took -- charles: they had trump derangement syndrome before everyone else. >> that's the narrative. that's unfortunately not the case. when you are making a movie, and you're putting it on tv, it says modify for television. you need to add advertisements in and need to have it within a one, one and a half or two-hour period. this movie was a little too long. they chopped off eight minutes. this is seriously the case. i'm not trying to spin it or anything. this is the story here. 8 minutes were chopped out. he among other people were part of it. he's well known. "the apprentice" was popular in canada. charles: the movie will never be the same. capitalism on the ballot in 2020, far left democrats like
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warren and sanders pushing socialist platforms. she calls it something different. but they are successful with this. i want to bring in turning point usa founder charlie kirk. i have to tell you, these polls from a variety of sources, they show a couple things, right? it is not just young people embracing socialism. i think the bigger narrative is how many of them are rejecting capitalism. why is this happening? >> well, unfortunately, it's because of our school system. things are getting better. they are finally seeing a vibrant economy and revitalized country thanked to president donald trump. -- thanks to president donald trump. the schools are not teaching basic economics or finance. it is not that even students are opposed to capitalistic free market ideas, it is not that they are exposed to them at all in the first place. they think that their idea of diversity of opinion is choosing between elizabeth warren and bernie sanders for president. like that's their idea of diversity of opinion. here's the optimistic part, charles, the campuses i visit, the schools i go to, i see students that are more curious than combative.
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the democrats are making a huge bet going into 2020 that they will be have a landslide on college campuses. my experience over the last seven and half years show it is not going to be that easy. in fact i think president trump will surprise a lot of people with younger voters. charles: you mentioned free markets. i saw something i want to say it was from pew that actually polled the term free markets and polled the term capitalism. capitalism amongst millennials cratered. free markets actually rocketed higher. could there be something said, though, about what people are seeing with a lot of these corporations, where they think the ceos are overpaid, where they think they do things to harm the economy, harm society, where they see crony capitalism which by the way people on both sides of the aisle seem to recoil, could that have something to do with it, just how it's being termed? >> absolutely. two quick thoughts on that, number one, we as true free market believers should speak against cronyism in every sense. in fact, young people, they say they don't like capitalism. they really don't like cronyism.
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number two, that just shows we have a messaging problem, charles. it doesn't necessarily show that young people are philosophically opposed to it. look, when you go to students and you say hey, do you trust the government? they say i don't trust the government. then why would you want that government to run our healthcare or to confiscate guns or to be in charge of so many different parts of our economy? the truth is this, is that young people, they say that oh, some of them i want socialism, they are living in an iphone generation, now advocating for a post office party. it makes no sense whatsoever. that's where those of us that believe in markets, believe in entrepreneurship, have to continue to convince and persuade students that our way and our value system is the greatest wealth-creating engine in the history of the world. charles: which it is. i have less than a minute. i want to squeeze this virginia school story. apparently they are allowing students to take time off to protest. what are your thoughts on that? >> i mean, this is stunning. just so that your audience realizes, fairfax, virginia, is one of the wealthiest counties in america. and so this is a very up -- i
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mean, only in the upper middle class of liberal counties would they even have the time or the interest to take students out of a classroom to go protest things. i think it is outrageous. this goes to show one of my guiding thesises, schools in particular are about training activists not educating minds. this only goes to further show that. it is evidenced by this ridiculous school system saying they will give students time off to protest. charles: charlie kirk, thank you very much my friend. >> thank you. charles: guess what? a few days away from 2020, the nation's biggest party in new york city. they are getting prepared and prepped for it. the ball is going to be doused with crystals. we will give you a close-up look at it when we come back. also speaking of 2020, this year we saw the rise of meatless burgers, beyond meat, impossible burger, what will the trends be in 2020? and in this decade? a chef is here next.
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charles: you know resolve could be one of the really characteristics of this 2019 market. we're seeing it again today. building the momentum back up. the dow back up to 55 points higher. meanwhile, folks, people love having stuff delivered to their front door. we all know that. well, now you can get fresh fish from alaska. kristina? >> this st the wild alaskan company. for 12 pieces of fresh fish, fresh meaning it is frozen immediately after it is caught, you can pay $132 and you can get alaskan rock fish, halibut, pacific cod and others. they are focusing on sustainability, 24 pieces of fish $240 a month, you can also get it. coming from the wild alaskan company. charles: sounds great.
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>> imagine fresh fish to your door. charles: let's stay with food. consumers want their food fresher and healthier than ever. let's bring in the owner of boston chops, named one of the top 25 steakhouses in the country. chris, you know, a lot of exciting food trends. what should we be looking for in 2020? >> well, the one thing we know on food is that the ball is always moving. i think right now what we're seeing is we're sort of seeing a refocusing on how people getting their food at their homes. i think the last decade we saw the trend of overanticipated market of perhaps some meal delivery companies, like blue apron, we've seen how that's blown up, market share is shrinking. i think people are focused on healthy, fresh, affordable, local. that's what i think we're going to continue to see. charles: yeah. it is a huge challenge, though. i mean listen, when you think you have figured it out, one of the complaints again some of these food delivery companies, too much packaging, too much
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plastic, too many containers. to really get to that place that i guess people want to be, it's still something of an ongoing experiment, isn't it? >> sure, i think the total addressable market is the consumer that cares about minimizing single use plastics; right? if you are trying to sell through to a group of people that do not want to waste single use plastics, you are fighting an uphill battle. their consumer base, you can give them all the coupons in the world that you want to try and acquire new customers or to keep existing customers, but t a the end of the day, i'm a balance sheet guy. when i look at blue apron right now, it looks like a disaster. charles: the stock is reflective of that. right out the gate it's been something of a disaster. i have another thing for you, chris. you say that the novelty is wearing off? >> i do. i think the novelty in these items is wearing off. i think one of the biggest reasons for that is amazon's acquisition of whole foods. that's one of the most positive
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things that's ever happened for whole foods. you know i live here in boston, massachusetts. i see consumers bringing their own bags to the supermarkets, recycling, being mindful of their plastic usage. also the prices are so competitive now, that even with the plethora of coupons offered by companies like hello fresh and blue apron, fiscally it doesn't make that much sense,s and once you have their recipes, it is actually cheaper to take a blue apron recipe, buy the stuff from whole foods, have way less plastic, waste, or even have whole foods deliver it to your house. there's a lot of great options out there for healthy food right now. charles: congratulations on your success. glad to see people are eating out too, always fun to do especially at a great steakhouse. >> thank you. charles: in the next hour we have the top ranked -- on this show. also brought some celebrity dogs. look at those dogs. apple and tesla hitting new all-time highs. a few minutes from now, a tech watcher is going to join us.
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he's been bullish, been right, defied wall street, and he continues because he's got some major targets for this stock and others. we will also talk to the white house, domestic policy director as we close out 2019, we're going to ask him, what were the president's biggest accomplishments for this year and what can we expect in 2020? we have a lot for you. stay with us. the third hour of "varney & company" coming right up. ♪ this piece is talking to me. yeah? so what do you see? i see an unbelievable opportunity. i see best-in-class platforms and education. i see award-winning service, and a trade desk full of experts, available to answer your toughest questions. and i see it with zero commissions on online trades. i like what you're seeing. it's beautiful, isn't it? yeah. td ameritrade now offers zero commissions on online trades. ♪
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charles: 11:00 a.m. in new york, 8:00 a.m. out in california. i'm charles payne in for stuart. i want to get a quick check of these markets. again, all the major indices on your screen at all-time highs and they have had a shallow dip. could be another gangbuster day for your money. i do want to focus, however, on the nasdaq because this 9,000 mark is huge. absolutely huge.
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it's a big milestone for the index. it's been climbing and just goes to show you, by the way, you know, tech is absolutely phenomenal, it's on fire, it's part of our everyday lives and it's powering the stock market much higher. i also want to highlight a couple stocks that led the nasdaq from 8,000 to 9,000 that most folks don't think about. you don't know these chip makers even though they have been around for awhile, amd, nxpi. lululemon has come back and are selling to men now, so you might know them but lam research, you may not have heard of. these are names that have been around and are powering the next not only nasdaq but also our daily lives. also hitting highs today, these four stocks. you might have heard of them. apple, microsoft, google and even tesla earlier in the session, hitting an all-time high as they break new ground this morning. also want to get to the latest read on just how much oil we have. this is the weekly number, came out friday because of the holidays. you've got the number? kristina: 5.47 million barrels
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lower this time around. that's a little bit of a surprise, because we have seen a wave of optimism when it comes to oil. part of the reason is the rising demand from china and india. russian production cuts, flawed predictions when it comes to the recession over the entire 2019, now the dollar weakening. that would strengthen the oil. now we are seeing supply a little lower, so further could add to what you are seeing on the screen. $61.74. charles: back-to-back declines in inventory. thank you very much. i want to get back to apple and bring in gene munster. gene, first of all, i will say congratulations. number one, you got to give props and kudos up front. you were serious about this. you were determined, when everyone else said no, you said yes. now you are even going to be a little more bold because you say apple could go to 400. over what time frame and what gets it there? >> i think we are a year, year and a half away from the $400 mark. really, this is all about going forward. where is the stock going to go in the next call it year to two
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years. so today we came out with our predictions for 2020. we have apple as our top performing fang stock. i think the road of least resistance would be to say things were good last year, unlikely that that continues. but i think that that will not reflect the truth. i think ultimately, there is a big disconnect between apple's fundamentals and the stock. despite its recent move and just to try to put some definition around that, if you just simply apply a facebook-like multiple to current apple shares, that takes you to about $400. the reason why facebook trades at a higher multiple than apple is investors for a long time have valued advertising business and services related businesses with higher multiples because hardware businesses were long time thought to be less predictable. what apple has shown over the last decade is their combination of hardware, services and software is creating essentially an earnings stream that i think
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is much more superior to the higher multiple stocks. if you put it all together, i think that this story still has a long way to go. charles: you know, this underscored the last earnings report, when iphone sales were down, but i think really a lot of folks started to take a closer look at the service side of the business. i got to tell you, i'm in it for a long time. it's in my retirement account. i actually started pounding the table on it earlier this year. i was in a store and there were four women working at the register and they all had on their iphone watch and they all were in a competition every single day to see who can get those circles. my wife does it also every day. i'm thinking you know what, they've got a generation of folks who are coming up on these products that wall street was ignoring but it feels like this could really be something special for this company. >> yeah, that wearables segment, just to focus in on that for a moment, that's 8% of their revenue, that was up about 65% in the last quarter.
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in the next few quarters, this will exceed the mac. think about apple and its history around the mac. now the watch and airpods are going to exceed the size of the mac business. we have also looked at the size of the watch opportunity so right now, at the end of the december quarter, about 9% of apple iphone owners will use apple watch. you have to have an iphone to use apple watch. so that's kind of one way to think about the addressable market. in other words, we're not even close and as you think about technology, consumer technology over the next decade, hearables, wearables, watches, potentially glasses, all those will be part of our future and apple is the company that's doing the best job at basically creating products that tie together. charles: absolutely phenomenal. i do want to jump in, because tesla shares, they are pulling back a little bit but they opened much higher in the session. i do want to note citron moments ago came out with a cautious view on it. it gave up five points. where are you with tesla? i know you did like the stock. you still like it?
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>> we are still -- we still like it. we are still believers here. this is still going to be a lumpy story. a lot of the move more recently has been that short position which was 22% of shares outstanding. if you think about a typical large tech company, it's anywhere between 1% and 5% of the shares short. that now has declined to somewhere between 10% and 13% short. that's the big move recently. so the move in the stock has been about shorts, essentially saying that tesla is not going to go away. one thing that's encouraging, as someone who believes in the long term, when you hear people are still negative on the tesla story, i think that they are missing what is an undeniable truth. setting aside elon musk and all his failures, a truth is the future of cars are going to be electric and they are going to be autonomous. tesla is a great play within that. charles: i have to ask you about another company that's become somewhat controversial since it's gone public, peloton. the shares are down again. is there a place where you start to look at this as a buy?
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i do want to let the audience know, over the last two months, three months, most wall street firms that follow it have a buy recommendation on it. >> yeah. i think that this is fairly valued. we don't see this as a buying opportunity. the stock is essentially where it's at since it went public a few months ago. at the end of the day, they have a very powerful, committed user base, a million people that spend about $500 a year. the fundamental issue here is the addressable market. it's expensive, $2,000 bikes, you have to have a place where your bike -- at home where your bike can fit. a lot of younger people live in very small homes. i think for this really to go to the next level, for me to get more excited about it, i think they need to crack that $1,000 starting price point for the bike and i don't see that in the near term. charles: gene munster, congratulations again. you have been on the money. you have made people a lot of money. >> appreciate that very much. charles: thank you. switching now to the amazon effect, where online sales were
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up almost 19%. the stock up again today. it was the biggest winner yesterday. give us more of the numbers. kristina: absolutely incredible what amazon shared with us yesterday. they said they added five million new prime trial members. of course, it's just a trial right now but if you are talking about five million, if they take the membership, that could be a reoccurring $119 per year for every single one of those five million people. that's something you want to hear, this reoccurring stream of revenue. last saturday which is the super blowout, the biggest day in retail history. this is a factor given the holiday sales but with amazon, they also highlighted the number of prime one-day deliveries as well as same day quadrupled. imagine that. quadrupled. this comes as we have had guests on earlier talking about the efficiency of the company overall in terms of delivery. so that's being reflected in the numbers and overall online sales up almost 19%. charles: earlier this year, i think it was, the mercedes plant in south carolina that makes the vans, i think they either opened
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a new plant and every single van is designed just to be sold to amazon. kristina: to that story, i wish i -- we were talking about it, the sales for pickup vans, the cargo vans, has jumped over, if i remember correctly, above 15% primarily because amazon is now hiring individuals to start delivering their goods. yeah, that's an excellent example. charles: thank you very much. you thought you heard the end of the whole wine cave battle between elizabeth warren and pete buttigieg. it's just heating up again. warren reportedly held her own high-priced fundraiser at a wine vault. we are all over that. president trump slamming canada not over trade, but, well, because he was edited out of his appearance in "home alone 2." you can't make this up. we are less than a week away from 2020 and we are talking to the white house about the president's accomplishments in the past year and with impeachment dominating the house, what can he get done in 2020? our third hour of "varney & company" just getting started. ♪
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charles: lavish spending by union boss gary jones who resigned last month as president of the uaw now being exposed in a new report. his predecessor, dennis williams, also accused of extravagant spending. folks, this stuff is crazy. kristina will walk us through it. kristina: several people, officials named in this case right now but the details are coming out. what are we talking about? we are first talking about a measly $60,000 over a four-year period, or how about $25,000 on meals? this is just within one year at palm springs. gosh, i really need to step it up when it comes to my dinners, my $30 dinners. last but not least, $80,000 solely on golf-related material like greens fees, shoes, golf bags, even, i quote, fashion shorts. most of this stuff was shipped
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back to the homes, their homes in michigan. there has been other cases, prime steak house, they spent over $6500, specific cigar boxes, maybe you know this, the ashton double magnum cigars, $268 a pop. we are talking the real deal. they are being accused, a total misuse of $1.5 million. this is an ongoing investigation that's been going on for awhile now. charles: someone let martin scorsese know. he may have a followup to "the irishman." next case, 2020 hopeful elizabeth warren being called out yet again after slamming pete buttigieg's fancy wind cave fu fund-raiser. reports she held a 2017 luncheon for senate campaign reporters in washington, d.c. customers can enjoy their meals with a bottle of wine that costs $3800. i want to bring in town hall editor and fox news contributor, katie pavlich.
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the pot calling the kettle. it's so weird to me that she doesn't think any of this would come up when she brought up the topic. >> she has a tendency to bring things up and not think that accountability for her past actions are going to matter, whether it's saying -- charles: this is a couple years ago. >> right. saying she's cherokee or that she was fired because she got pregnant, which was not true. now she brings up this line which is clearly rehearsed at the debate, she wanted to go after pete buttigieg who is gaining on her in iowa ahead of the caucuses, wants to get that momentum. she kind of pulls away that midwestern vote, he's more on the left side than people think and she accuses him of, you know, palling around with millionaires and balance naillin the wine cave, yet she's done it and look, there's hundreds of dollars worth of wine they are drinking, yet here we are, she was hosting fundraisers for her senate campaign which she rolled into her presidential campaign,
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at one point a bottle of wine cost $3800. i think wine caves have been given a bad name throughout this whole process. if you have the money to spend $3800 on a bottle of wine, more power to you. i hope i can get there some day. charles: i think you will. by the way, people in the wine cave business say business is booming. i do want to get your reaction on this. president trump is reacting to a cameo that he had in "home alone 2." apparently it's been cut out of showings of the movie. the president didn't take it too lightly. he chimed in on twitter. he said i guess justin t doesn't much like me making him pay up on nato or trade. the president, though, his response, i mean, it's a joke because he says the movie won't be the same and he actually has emphasized in the tweet that it's a joke because he knows the mainstream media -- >> yeah. we're not sure if justin trudeau, the prime minister, actually was responsible. maybe the canadian movie company taking it out. however, it's just ridiculous
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they did. donald trump was a staple in american culture before he ran for president as a republican, he was all over hollywood, he's in a bunch of music and lyrics for a bunch of songs. he was in a bunch of movies. for them to take this out because they are somehow triggered that he's the president and at the disagree with him now, it's funny but also pretty creepy and much like censorship. charles: let me ask you, it feels like president trump, whenever he can, will remind justin trudeau and macron that the world, they are upset with him because, you know, listen, he's been tough with them. he's been tough with these folks in saying step up to the plate. i think that's really the story is that people whined about him the most, they've got some serious issues. last month, canada lost 71,000 jobs. you know, president trump is saying you know, you guys shouldn't be so upset with me because you are only doing what you promised you would do. >> the canadian government has been calling the united states senate asking for some advice on immigration related issues because they have those problems there. on the front of it, they tried
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to be very public and open in their opposition to president trump. behind the scenes, we are very good partners and it is true that president trump has issued some tough love for the benefit of everybody. you hear a whole lot about you need nato to be strong. nato can't be strong if just one company is paying their dues. we are stronger together as long as everyone is pulling their weight. a little tough love is not being mean. it's simply wanting you to hold up your own accountability and be accountable to your own rules. charles: the operative word there is love. >> lots of love for our canadian partners to the north. charles: thank you very much. appreciate it. "star wars" still dominating at the box office but according to a new report, box office revenue overall expected to be off 4% this year, which would actually be the sharpest decline in five years. you know, listen, what's going on with the movies? i don't go nearly as much as i used to go. kristina: which is why a lot of movie theaters are trying to create these experiences where you have to pay a little more -- charles: $3800 wine? kristina: no. not the ones i know about.
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maybe in the near future. we don't know exactly the pinpoint reason. is it people like you that aren't going or is it streaming. there are some good movies out there, including "star wars." they had a great christmas time. "the rise of skywalker" made $32 million just alone on that ninth movie for the saga. then the mandalorian. you like this show. this is a "star wars" based disney show. charles: it's been a huge success for disney plus. in part because of the baby yoda. folks, spoiler alert, you may not want to hear this for several reasons, but baby yoda apparently gets beat up in the mandalorian. that's not good. kristina: no. no. charles: look how cute he is. kristina: to that point, people love this character which is why finally, disney announced they are going to create this and you can buy the plush doll, 11 inches, a little jacket, it will sell for $24.99 but only be available the earliest, march
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2020. you did preface the spoiler alert. charles: i did. i did. kristina: you will watch it, too. charles: of course. we will all watch it. thanks a lot. hey, here's a question for you. which city do you think has the rudest residents in the entire country? miami? no. los angeles? new york? chicago? tweet me. i want your answer. i'm rooting for new york. take that guess. we are just four days away from new year's eve. up next, we've got a behind the scenes look at that iconic ball as they prepare for that big night. imagine traveling hassle-free with your golf clubs. 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.
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charles: all right, folks. we teased you about which american city has the biggest jerks. kristina has the official list, the top five. kristina: i will start with number five. number five is boston. this is according to business insider, they surveyed 2,000 americans earlier in the fall. boston. then chicago. oh, we revealed it right away. washington, d.c. is number three. los angeles, 20% of those that were surveyed thought los angeles was the rudest. literally double, no surprise there, when it comes to new york, 34.3% of the people thought new yorkers suck, they
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are just such jerks here in this city. i overheard people yesterday literally saying i have only lived here almost two years and i act like that, like i walk so fast, get out of my way, you're too slow, need to get to work. charles: we are number one! we're number one! on twitter, several people said new york, one la, one dallas, one tampa, one san francisco. new year's eve just around the corner and so is the nation's biggest party right here in new york. rude new york, times square. today's stunning swarovski crystals are being attached to the ball as they get the dress rehearsals. jackie deangelis will give us a sneak peek. jackie: good morning. the sneak peek is right behind me. you can see 2,668 waterford crystals, 192 are going to be added this year to celebrate the gift of good will and actually, it's the design of three pineapples. this ball is 12 feet in diameter, almost 12,000 pounds and it's got more than 32,000l.e.d.s.
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now, we are on the roof of one times square, this is where it happens every year. the first time it happened actually was 1907. this is a storied new york tradition. tomorrow, there will be a ball drop test, a confetti test as well, and this is expected to be well attended. times square says about one million attendees. millions will be watching the broadcast nationwide. billions will be watching worldwide. but of course, there are a lot of security concerns as there always are. the nypd is going to be working with new york state police, the mta police, the fbi and many others to make sure that people are safe when they come out to watch the ball. remember, no backpacks, no big bags, no alcoholic beverages, no umbrellas but it's certainly going to be a lot of fun. remember, this is not just the changing of the calendar year. this is the start of a new decade. and my producer, shout out to dan hilton, he got me my glasses. i'm all ready to go. i mean, i definitely got a good
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straw with this assignment. charles: bring me a pair, too. thank you very, very much. folks, now we are also a couple days removed from christmas. a lot of people are taking a break and taking the gift cards out to compensate for the less appreciated gifts. listen up. today, december 27th, is the best day to go out and grab you some electronics, big tech. we will break that down for you also, where the deals are. and more trouble for netflix. earlier this week, the show "messiah" stirred up a lot of controversy. not surprisingly, [ inaudible ] is turning some heads also. we will keep you up to date on all of it when "varney & company" returns. ♪
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charles: check on that big board. we are back up near session highs. all major indices, as you can see, are much higher. the nasdaq is the story this week, folks. cracking above 9,000 for the first time in history. it's on a record kind of breaking run. got a ways to go, 19 days in a row but we are doing extraordinarily well. you got to look at some of these names. lululemon was a hot stock, then faded. now it's back.
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advanced micro devices never lived up to the hype, now it does. some of my favorite picks, the stocks i have been in, also helping. semiconductors, nxp, also lam research, great names. they continue to move much higher. i weant to bring in market watcher danielle dimartino booth. consumers are very strong, we are at record highs, you are very cautious. what are you concerned about here as you rain on our parade? >> i don't want to look at it as raining on our parade but 9,000 feels like it could be 10,000 tomorrow. we have seen momentum really pick up here. if you aggregate the market value of the fang stocks, facebook, apple, netflix, google, amazon and nvidia, i don't think i forgot any, but if you aggregate that, it's 5.249 trillion, higher, bigger than the gdp of the united kingdom and france combined, and you were around in 1998, 1999, you
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know what this feels like. this feels like 9,000 could be a quick pause on the way to 10,000. it bothers me, though, when economic fundamentals do not line up with the momentum in the stock market. charles: you know, i have always been worried even more than that about people picking tops. it's tough, it's a tough game to -- >> it's a fool's game, charles. charles: pawhat part of the fundamentals don't you like? let me share part of my investment thesis for 2020. i think a couple head winds this year will be tail winds, namely i think we will see a pickup in business investment, across the board except for structures. maybe the oil industry has some issues it's got to work out. but i.p. investments, equipment investment, residential investments which for the third quarter gdp, first time they were up in many years. we see a boom there. i think household formation is going to help that. i think again, the consumer who by the way, strong as heck, wages are going up, but still, danielle, 8% savings rate.
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we're not getting over our skis like we did before the great recession. >> actually, i'm writing about that savings rate being where it is. i think consumers are more circumspect than they used to be. but to your point about wage inflation, i think that we actually see that pick up going into 2020 and that is going to act as a damper on business investment. there's a reason that we have seen three months running now of the number of americans collecting unemployment insurance increasing. we have seen 12 consecutive weeks of that. i think that right now, profit margins are becoming an issue. you mentioned housing, residential investment. we have heard from some home builders that it's so difficult to secure labor at a reasonable price that they have not been able to make a profit in building a home and selling a new home. so again, you can have wage inflation rising and rising joblessness at the same time at the end of an economic cycle and that's exactly what we are seeing. we haven't seen an increase in
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the number of americans collecting unemployment insurance since 2009. but we have seen it for 12 weeks running now. charles: we are still at unemployment levels that take us back to the 1969 -- i think when the archies had the number one hit in the country. you wouldn't know about the archies. i will e-mail you. >> no, but i have heard of them. i have heard of them. charles: fun times. just like we're having now. always great talking to you about this stuff. see you soon. folks, did you not get the tv or laptop for christmas this year? you're in luck because today is reportedly the best day of the entire year to buy electronics. jeff flock is in illinois. tell us about the deals you're seeing. reporter: i tell you, charles, the reason is, i've got the co-president, this place is an electronics mecca. they have everything here. it's the single largest store, electronics and appliance store in the world, 37 acres of stuff. why is today a good day to buy?
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>> well, there are a bunch of rebates going on with a lot of product. reporter: that are going to expire soon, right? >> a lot of tv rebates expire on sunday. reporter: so good time to buy then. also because a lot of retailers, not just here, have bought too much of something, and they need to kind of discount it to get rid of it. like you somehow, are you the guy that bought too many ear pods? >> no, the guy's not working anymore but we did buy 8,000 of one model of airpods. right now i know we have -- reporter: the white one there, huh? >> yes. right now we have a few thousand left. they are on a great sale. reporter: that's the lowest price in the country right now? >> that is. reporter: lower than at apple? >> the lowest price in the country today. reporter: you don't get in trouble by undercutting apple. charles, also, tvs, big for tvs. some of these discounts go away and then they have discounts again before the super bowl. right now, these are floor models. lot of people saying floor models that people returned,
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right? >> yeah, today and yesterday are two of the greatest floor model days. lot of product comes back, lot of people didn't like their gift. reporter: got you. we will be here all day. if you need something, let me know. we will see if we can find it for you. charles: hook me up. i will take anything you give me. i appreciate the kind gesture. i really would. thank you. all right, folks. netflix facing a backlash again. this time, the controversy is from a comment made by one of its main stars. kristina: yes. helena bonham carter. the show is about queen elizabeth ii's life. she's in a store in this show in scotland and she says, i quote, i think we've stumbled across an experiment in in-breeding. you had a politician, labour politician member, upset about this because it paints a negative picture of scottish people by using the term in-breeding and they commented on it being offensive overall.
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but the show seems to do very very very well despite the fact the royals don't watch it. charles: okay. thank you very much. the scottish national party won overwhelmingly. maybe they will go their own way anyway. comcast looking to get into streaming. that business is huge. they are in talks to buy free tv service. you've got how this could impact, this whole deal could impact everything. kristina: this is credit to the "wall street journal" talking about the two companies, comcast buying it. it's a free ad-supported platform. that's the difference. we know comcast will be launching peacock. that will be free for their subscribers in april. you talk about the saturation in the market and why comcast would be doing that. we are cutting cords left and right. to have a free platform for the average person, then have another platform for your subscribers, then eventually other people will join on and pay. the peacock one is the one we know "the office" is moving to. you talk about the big well-known tv shows that are leaving. but this is in talks right now.
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we don't know any of the monetary amounts just yet in terms of how much. charles: the wild, wild west. kristina: think of the saturation, comcast, fox nation, netflix, disney plus, roku, how can we all keep up with this? charles: we can't. kristina: i don't have that much free time. i have four subscriptions. hbo max, throw that in there. amazon prime. charles: go from toggling 500 channels to 500 apps. kristina: it will add up to be the same amount you are paying for a cable subscription. charles: thank you. i want to check on google, where youtube is considering screening all children's videos. google unchanged for the most part today. check on gold. gold rose for the fourth straight session, on course now for its best annual gain since 2010. lot of people buying this for a lot of reasons going into next year. then there's bitcoin, which had its moments in 2019. pulled back more recently, back well under $8,000, $7,188.
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we've got new numbers that president trump says the market is leaving past president ins t in the dust. wait until you see the numbers that compare to the past. can he get anything done in 2020 with impeachment on the minds of most democrats? we are asking the white house next. ♪ to the outside world, you look good, but you don't feel good. with polycythemia vera, pv, symptoms can change so slowly over time you might not notice. but new or changing symptoms can mean your pv is changing. let's change the way we see pv. you track and discuss blood counts with your doctor. but it's just as vital to discuss changing symptoms as well. take notice and take action. discuss counts and symptoms with your doctor.
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500. they are saying the average president -- i'm talking about the third year because that's where we are right now. within the first year you saw the president have almost returns of 20%. so historically he's just been doing very very very well. you can account that to deregulation, tax cut. you also have very very accommodating central banks and deescalation of trade as well. charles: now they are accommodative. one thing i want to point out before we bring in our next guest, folks, tariffs are in place, forget about the talk, they are in place, $360 billion have been in place. we were told two years ago this would be smoot-hawley and it would destroy our economy and the stock market. that hasn't happened. remember that every time you hear these experts. i want to also bring in white house domestic policy director joe grogan. first let's start with the stock market. president trump obviously loves the action in the stock market. he talks about it a lot. it's had an amazing year this year, particularly nasdaq but
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all major indices. where do you rank that amongst his accomplishments? >> you see the policies from his first couple years really coming into fruition with the way the economy is doing and the stock market at record highs across the board. as was just mentioned, deregulation, tax reform, having a pro-business climate in the white house, resolving some of these trade fears and some of the uncertainty has american consumers feeling more confident, american businesses feeling more confident. it's a great measure of optimism for the future and a great sign for things to come. charles: and can we be honest about the pressure, maybe, he's put on the federal reserve? last year there were four rate hikes, the market was down despite all-time record corporate earnings. it should have probably been up otherwise. this year the fed has cut rates three times. that's certainly helped to play a role to allow the other things to work out better. >> well, you may know better than me what to tease out the most and how each positive
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development is playing, but we have a president who wants americans to do well, wants american business and american workers to do well -- charles: he does, but he does tough things, right? the trade war is a tough thing. to implement tariffs a year and a half ago, two years ago, everyone brought up smoot-hawley. no, really. everyone said this was going to be smoot-hawley, that we were going to go from $90 billion economy to $50 billion economy and essentially that's what happened back then, that unemployment back in smoot-hawley went from 6% to 25%. we were promised that and he still didn't blink. those are the kind of things that i would think, you know, people wonder what makes him tick because he knew the market could get hit. he knew the economy could take a hit. but he knew the greater issue was securing america's jobs and fair trade to make it free trade. >> well, the president's got guts and he's willing to stand up and fight for the american workers and american business. i think that's why he took the stand that he took. i would even go further. when he ran for president, there were so many economists who were
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saying if president trump wins we would be in a depression, we are going to have record unemployment and look it, we've got more americans, there's more job openings than americans looking for work. 3.5% unemployment. record unemployment among african-americans, hispanic americans, women. americans with disabilities. female entrepreneurship is through the roof. the economy is -- charles: wages are through the roof and people are coming back to the labor force. i do want to ask you looking ahead, because capitol hill busy with impeachment. we know the presidential election is coming up. in most elections, you brace yourself for the october surprise. i think we will have a january, february, march, april, may, june, i think there's going to be all kinds of stuff out there, because most of this year was negative speculation, not even news events. how is the white house prepared to deal with all that? >> well, the president fights through and makes sure his team fights through. look at the spending bill that we just signed had a tremendous amount of achievements. we repealed three major obamacare taxes to the tune of $500 billion worth of savings, the cadillac tax, health
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insurers tax, medical device tax, on top of the individual mandate getting repealed and a woel bunch of efforts to get veterans better care in there, improve mental health. even in the context of impeachment, this president is hitting the ball out of the park. charles: you have to let us know when you come back what the white house is going to do about our debt. all right? some great things but that is the sword of damocles. we want to know about that next. thank you very much. appreciate it. all right, folks. another executive departing boeing. who is leaving this time? kristina: the top lawyer at boeing. he's been at the company since 2006. he's also now or was the senior adviser, he was made the senior adviser back in may, once the drama just continued with the 737 max jets. 346 people perished. the plane has been grounded. the company claims that this has been in the works for awhile. he is stepping down, michael luttig, to retire this summer. he's stepping down --
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charles: spend more time with his family. kristina: that's usually what they say. this will be the fourth executive departure from the company since the 737 drama. you had the vp of communications, the commercial airplanes chief, kevin mcallister. we also know the ceo was fired, david calhoun is taking over effective january 13th. it seems like they are getting rid of some of the people that were involved with this. there you can see all three on your screen, the executives that have stepped down and of course, the vp of communications as well. charles: i think wall street wants to see more, in fact. kristina: the stock has been climbing. right now we are seeing it at $332.62, up little less than a percentage point. charles: next case, another wags to riches story. we have been showing pampered pets all morning and i suppose i get a little excited, because we have some yorkies. look at this tweet. charles payne, baby talking. look at those doggies. possibly the cutest thing i have
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charles: now to our pet thing, wags to riches. today we are featuring the bark shoppe here in new york city. they lavish pet care, it's a facility that specializes in boarding, grooming, day care, dogwalking service. they do it all. joining me, the owner melissa michenor. tell me what inspired you to start this business. >> i was watching a reality show, actually. within 90 days i opened the bark shoppe and we specialize in grooming initially, then i couldn't take any more dogs home so we started doing boarding and day care. now we do grooming, boarding, day care, dogwalking and self-service and cats. charles: were you the first groomer? >> we were not the first groomer -- charles: i mean you yourself when you opened the shop. you had never done this before. i mean, this is serious skill set to do on this. >> yes. i did go to grooming school but
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i was not the first groomer. i started with one groomer. we were open five days a week, then opened seven days a week. now i have four groomers, three dog handlers and ten interns. charles: wow. you know, we had three yorkies, we are down to one, but i love when it come home, sonny's got his haircut and everything, it's so amazing. are you shocked at just how much money people are prepared to spend on their pets? >> i'm not shocked. charles: not anymore. you had to be at first. >> in the beginning i was like oh, wow, because i never grew up with any pets. charles: really. >> i was afraid of dogs. i literally, everybody said i was crazy. within 90 days opening the business, then now, it's like they get treated better than me. like we have so much fun and now we just want to get more people, they are members of the family. charles: they are members of the family. it's over a $70 billion industry around this country. so what are your plans? it sounds like you are bulging everywhere. it sounds like you might have to expand. >> yes, so definitely expansion.
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we are actually going into education. we teach workshops now so actually getting more certified groomers to protect dogs from getting hurt during grooming, and mobile grooming and more convenience. charles: let's talk about prices here, cost, because you know, i know it's not inexpensive, particularly, you have different levels as well, right? >> um-hum. we have different price points, for different breeds. our grooming is based on the weight and condition of the dog. we start at $65 and go up to $125. that's for grooming. then we have day care, monthly passes, weekly passes and our own pet shampoo and body fragrance. charles: you designed this? >> yes. charles: really? >> it's available online at our website. charles: what is your website? >> the barkshoppe.com. charles: i was told you also have some celebrity -- >> yes. so this is link. she's a celebrity dog client that we have. we have a lot of celebrity dog clients. she has tons of followers on instagram.
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she is super-sweet. kristina: she's a celebrity? >> yes, she's a celebrity. charles: there you go. link is like listen, i'm in charge, okay? well, congratulations, melissa. this is really phenomenal. you saw something, you took your opportunity. you are the american dream. i think your business is going to keep growing. thank you so much. next case, i want to talk about reddit. every year, users do a secret santa. they got one of the world's richest people. i will tell you what it was and what she got, next. ♪
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... (thud) (crash) (grunting) (whistle) play it cool and escape heartburn fast with tums chewy bites cooling sensation. ♪ tum tu-tu-tum tums cooling sensation. going back to the doctor just for a shot. with neulasta onpro... ...patients get their day back... ...to be with... ... family... ...or just to sleep in. strong chemo can put you at risk of serious infection. in a key study... ...neulasta reduced the risk of infection from 17%... ...to 1%... ...a 94% decrease. neulasta onpro is designed to deliver... ...neulasta the day after chemo... ...and is used by most patients today. neulasta is for certain cancer patients receiving strong chemotherapy.
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do not take neulasta if you're allergic to it or neupogen (filgrastim). an incomplete dose could increase infection risk. ruptured spleen, sometimes fatal as well as serious lung problems, allergic reactions, kidney injuries and capillary leak syndrome... ...have occurred. report abdominal or shoulder tip pain, trouble breathing... ... or allergic reactions to your doctor right away in patients with sickle cell disorders, serious, sometimes... ...fatal crises can occur. the most common side effect... is bone and muscle ache. ask your doctor... ...about neulasta onpro. pay no more than $5 per dose with copay card. charles: a woman received the christmas surprise of a lifetime after learning who was behind her secret santa gift. christina tell us more. kristina: i guess that i have to
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reveal there is this platform and you can participate in a secret santa with strangers and the person that this woman got was bill gates, he fedex an 81- pound box to this woman and in that box there you can see pictures she got, legos, a harry potter santa hat, a bunch of sweets including seven packages of oreos, and gates also sent her, he does this he creates his favorite book so he sent her a handful of favorite books plus a manuscript copy of her, the all-time favorite, the great gat sby. charles: that's her favorite book? kristina: yeah, it's her favorite book. charles: oh, okay i've got you. kristina: he's been participat ing since 2,013. charles: that is so cool. i didn't know bill gates was that hip. kristina: he is versed in the online platform. charles: wall street has been looking to go public one day we'll see. kristina: i want to get involved with this next year.
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let's do it next year. charles: i think someone else would be good at this, with connell mcshane. he's got a loving heart. >> how many people, how many billionaires go like that? >> it's a story and we need more and you guys give us the best ever between that and the dogs, which is great, thank you, charles. charles: you got it. connell: welcome everybody to cavuto coast to coast. i'm connell mcshane filling in for neil and boy, we start off here, where its been some run for tech stocks and the nasdac is on pace for its longest string of records since february of 1986. $0.86 and the chicago bears
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