dagen: here's a morning mover, the stock soaring on acquisition news, the biotech company focusing on treatments for food allergies, that's a $2.6 billion valuations. a giant thank you to lee carter and cabot phillips. that does it for us, "varney & company" is up right now. stuart, go. stuart: yes, ma'am. [laughter] and good morning, everyone. all right. monday, august 31st. ooh ooh, what a month it has been. for stocks it's the best in over three decades, but we're going to go out this month in style too. the dow jones average is going to be up just a little bit at the opening bell. they've got three new stocks on the dow, but we've also got wal-mart and microsoft, and they are down. that is hurting the dow's performance at this moment. as for the s&p, frankly i've lost track of the number of new highs. it's going up again at the opening bell today. don't know how it's going to close. same story with the nasdaq, constant new highs, up again at the opening bell this morning.

why? well, look, there are a lot of positives there today. another virus drug goes into final clinical trials, and the fda gives fast track authority to vaccines. any good vaccine news, market likes it. the stock splits of apple and tesla producing more gains for those two key stocks. more on that in a moment. and the administration appears to want a $1.3 trillion virus aid package. that's helping. and maybe this too helping stocks, what's that? the democrats getting nervous about joe biden's chances. the polls are tightening in some key states. joe has been reluck about thely pushed out of his house to campaign. democrats are very worried about his performance on the road. and two prominent leftists -- michael moore and bill maher -- both acknowledge their anxiety. monday morning, last day of august and, yes, there is a chill in the air. "varney & company" is about to begin. ♪ ♪

[background sounds] >> out of the homes and into the streets! stuart: chaos in d.c. rioters hit the streets overnight, disturbing residents as much as they could see. they were screaming get in the streets and shining lights into people's homes. police have had had to clear out so-called black lives matter plaza as the scene intensified. we'll be covering this and other chaotic scenes throughout our show. this is now a political issue. let's get to the markets though, first and foremost. big news on apple and tesla. their stock splits take effected today. you can see the results on the air right now. susan, it's helping. let's start with apple, it's really helping the price. >> yeah, good morning to you, stu. welcome to stock split monday. apple trading around $125 and

change after a closing above $500 on friday, so to splitting those stocks four for one. six years after the seven for one split, it really doesn't change much though except for apple's influence on the dow which goes from the most influential to middle of the pack at 17. but as a result, we have apple's stock split. we're looking at only the third dow shake-up this millenium and the second in this decade. out goes exxon, salesforce, honeywell and touch more on tesla also splitting five for one, trading at 450 instead of 2,000 at the end of friday. stock splits are rare in this modern age, in 2020, and fractional shares available, so there's a lot of motivation to split their stock. but this might be a good thing for the stocks themselves since we have tesla up some 60% since the announcement and apple's up 30%. stuart: that is an extraordinary move for tesla just since they

announced -- >> august 11th. stuart: 54, 55 -- 60%? >> yeah. stuart: i'll take that. keith fitzgerald, that is extraordinary. what a result. let's start with tesla are. up nearly 60% since they say we're going to split. i mean, is the split responsible for that gigantic increase? >> well, you know, to susan's point, is the split responsible, that's hard to say, but it certainly is a major, major factor because people are suffering from this fear of missing out. wall street, for the most part, has missed this, stu. they have simply not gotten onboard, they've never believed a new high until it's bit 'em in the you know what, and here we go. i love it. i'm going after both stocks this week personally. stuart: say that again, you're going after -- that means you're going to buy more apple? i know you own it already. you're buying more apple? >> believe it or not. >> stuart: you're going to -- >> and tesla, you bet. stuart: okay. whatever you say.

[laughter] i would have thought it would take a strong stomach to buy into a stock that has gone from very lower to very, very high, but that's your business, it's your money. tell me about the big changes that are happening in the dow, salesforce, amgen, honeywell in, exxon, pfizer out. is the dow now a different indicator to you? >> well, the tough part, right? i don't fully understand the rationale behind it. it's a cap-weighted index, and you're taking three grand-added companies ostensibly to reflect the more modern economy. i don't necessarily buy that logic or argument. technical stuff, but history suggests the companies that you booted actually do better than the companies that stay in. now why that is, i don't have any idea, so is i'm not letting go of my pfizer or raytheon, for example. but it's not going to cause me to buy into the dow any more than i already have, let's put it that way.

stuart: your bottom line is this is a modern economy, this is a technology-driven economy, fully so, and you don't think that the dow quite reflects that at this point, right? >> i think the dow is beginning to reflect it. the psychology used to review the dow is still grounded in manufacturing. stuart: all right, we'll leave it at that. keith fifths is buying apple, buying tech this week. how about that? let's get to tiktok, we've got soars news there. china is putting a roadblock in the purchase of tiktok by wal-mart and microsoft. big story. >> yeah. look at the stock reaction this morning, both microsoft and wal-mart are down on this complication because china announced new rules on friday evening, and now it requires chinese companies to get approval from the chinese government before transferring over any technology and, yes, that does include technology that tiktok uses. this doesn't really derail the talks, but it does slow them

down, and tiktok had intended the -- to sit down in exclusive final talks. but it really is a signal from the chinese government that they want greater say over this forced tiktok sale too. president trump has said he wants a cut of i any deal with proceeds going to u.s. treasury, but price that year for geographies could see somewhere between 20-40 billion. microsoft said we'll get a deal by september 15th, we know the executive ban goes into effect somewhere in the middle of september. stuart: china just threw a monkey wrench right in the middle of it. >> it does, obviously, make things a little more difficult. stuart: okay. now what have we got next? fda commissioner stephen hahn, he says, yeah, he's willing to grant emergency authorization for a vaccine before phase three trials end. doc siegel's with us this morning.

doctor, will the public trust a vaccine that's not been fully and conventionally tested? >> actually, stuart, i don't really believe that an emergency use authorization will occur before the vaccine phase three trials have occurred. i don't think that's going to happen, but i'll tell you what i think will happen, i spoke to robert redfield on friday, and he said the vaccines look more likely every day, quote. very excited about this. we have six in the united states in the final stages of trials, nine around the world. we're looking at being done with phase three trials sometime in late fall, and we're already showing safety. so the question is how effective are the vaccines. and really he might issue an emergency use authorization when the vaccine trials are done before the red tape. so we might cut through the red tape. but in the united states, we're not going to do this, i do not believe, until the trials are done. but in late fall i think you're going to see vaccines.

stuart: well, here's the key question: by november the 3rd, election day, will someone, anyone in the united states of america, have been vaccinated against the virus? >> very close, stuart. i can't say november 3rd, but i think november's very reasonable. i don't know about election day, but right around that time. stuart: okay. now deal with this one -- >> it'll be emerging. stuart: okay, i got it. look, doctors in nevada say they found evidence of the first person reinfected by the virus. there are reports that a 25-year-old man appears to have contracted two different types of the virus five months apart. doc siegel, i thought you could not get it twice. >> well, stuart, it's -- the virus is migrating a little bit, or slight changes. but i want everyone out there to know with 25 million people having had this around the world and 6 million in the united states, this is an extremely rare event, stuart. if you get this virus and you recover from it, you're almost definitely like 99.99% no chance

you're going to get it again. there's one prevailing strain we haven't seen a major mutation. this is a huge outlier. i do not want people afraid of this, it is not common by any stretch of the imagination. very, very, very unlikely. stuart: doctor, stay there for a second. come in, christina kristina par, joining us this morning, we appreciate you being here. talk to me about the fda expanding the use of remdesivir. >> reporter: yes, exactly. so you have american biopharmaceutical firm gilead sciences got the green light from the food and drug administration to expand the emergency use of its antiviral covid-19 treatment, that would be remdesivir that you mentioned. previously, patients needed to have severe covid-19 and be hospitalized. now hospitals can use this treatment on everyone that is hospitalized regardless if they have severe or less severe symptoms. they have a 5 and 10-day trial.

patients did recover faster than the placeboment we take a look at the share price, we saw it relatively flat at the moment. there was excitement about this antiviral covid-19 treatment, however, the stock did drop once the fda rejected the blockbuster arthritis drug. but regarding this one, i'll just end with this because i know dr. seeing ising can weigh in, gilead admits the benefits of this drug is still uncertain, but the fda believes that the risks outweigh any type -- sorry, the benefits outweigh the risks, so so they're moving forward. as of now, everyone can use it. stuart: back to you, doc siegel. the benefits outweigh the risks. what say you? >> that's right. and, you know, people out there need to understand that an emergency use authorization is not fully licensing a drug. it's saying, hey, we've got a problem, this drug helps, let's get it into the hospitals, thousands and thousands of doses

because, stuart, we're seeing a shortage of remdesivir. and the study in the new england journal of medicine showed that for anyone that required oxygen or had lung issues with covid-19, this had a big impact in terms of getting better and getting out of the hospital. i'm all for this. i think it's very smart science, and it should happen. stuart: got it. doc siegel, thanks very much for joining us. fox business alert, governor phil murphy from new jersey giving indoor dining the green light. they can open at 25% capacity, mandatory social distancing between tables and all of this happens come friday this week. check futures, we're going to be down for the dow. looks like down, slightly down for the s&p, modest gape. tiny gain, actually, for the nasdaq. elon musk at it again with his latest technology. new kind of implantable chip for your brain. he says it's like a fitbit for your skull. [laughter] we'll try and explain how that one works.

joe biden getting out of the basement, he's heading to pennsylvania today to ask voters, quote, are you safe in donald trump's america? he's finally addressing urban violence. top white house officials file the first direct israel to uae commercial flight. morgan ortegas on the new mideast peace after this. ♪ i had shingles. horrible. a young thing like me? [camera man] actually anyone 50 or over is at increased risk for shingles. the pain, the burning! my husband had to do everything for weeks.

and the thing is, there's nothing you can do about it! [camera man] well, shingles can be prevented. shingles can be whaaat? [camera man] prevented. you can get vaccinated. frank! they have shingles vaccines! -whaaat? -that's what i said. we're taking you to the doctor. not going through that again. [camera man] you can also get it from your pharmacist! talk to your doctor or pharmacist about getting vaccinated.

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israel. that makes it an historic flight. the first commercial israeli flight to an arab gulf country. here's what kushner had to say about it. roll tape. >> we are about to board an historic flight, the first commercial flight in history between us israel to a gulf arab country. while this is a historic flight, or we hope that this will start an even more historic journey for the middle east and beyond. stuart: well, an historic flight, for sure. let's bring in morgan ortegas, spokesperson for the state department. one thing that surprises me, mayor dance you're getting virtually no publicity for this. i can see how it's a breakthrough, no publicity. why not? >> i guess probably because it's election system, we should, you're right, stuart. that is el al flight 971 that went from israel to abu dhabi. also notably flew over saudi

arabia as well. i believe that's the first time an el al flight has flown over saudi arabia. it was actually just last week that mike pompeo, secretary of state, and i were in the middle east as well, and we were able to fly on the first official nonstop flight from israel to khartoum. we had the first recognition of israel between an arab state in 25 years between uae and israel. so this just shows that ronald reagan was right, peace through strength is what works. stuart: where do you want to take it? how do you build on this deal between israel and the u or ae? where more can you get beyond it? >> well, i think it's incredibly important. one of the most beautiful things that i saw of all the pictures last night on social media were some young emirati children that were holding, they had a flag behind them, and they were holding an israeli flag, and i believe there was a united states flag too. it's fundamentally important to

know that the israeli and emirati children are going to grow up in a world where they're allowed to inter9 act with each other, go to each other's countries, so that's incredibly positive. we also hope, of course, that more states in the middle east will follow, and we think this is a direct result not only of president trump's vision for peace, but of the fact that we have empowered our gulf arab allies against a nefarious regime in tehran which is the world's largest state sponsor of terror. the previous administration, the obama administration, chose to give our enemies billions of dollars. this administration has chosen to strangle them financially, has chosen to take out the head of their terror network, qassem soleimani, and we have chosen to embolden the gulf arab states and israel and we're seeing peace through strength and not by abdi abdicating to our enemies. stuart: morgan to morgan ortugai wish we could get more must puby

to this breakthrough. >> well, thank you. stuart: come back and see us. delta, the first airline to put hand sanitizing stations on their planes. i get they're saying it's safe depending on the size of the plane, there might be up to five sanitizers onboard. they're also installing more hands-free fee etures, touchless faucets, garbage lids, etc., etc. i think want you back. now, the big news in the airlines comes to us from united. they're making significant changes to penalties you pay for changing planes or changing flights. what have we got, kristina? >> yeah. this is, i guess, a win for a lot of us that are so annoyed about that $200 fee that united charges people when they change flights. they're saying, hey, we're getting rid of the change fee. you no longer have to pay $200. but, of course, stu, there's a catch, and what's that catch?

it on the applies, ands this is the important part, to standard tickets, standard economy as well as premium ticketholders. if you buy the cheapest ones which is the basic economy tickets, those are not included. and so you will still have to pay the difference in the actual original price and the old price. so if it's $20, you still have to pay that. stuart: i did not know about that caveat, and that is, as you say, that's important, kristina. by the way, they took in $625 million in these change fees, so they're giving up quite a lot. >> exactly, yes. stuart: tell me about american airlines cutting flights, more flights this fall. >> yeah, it's unfortunate, but they've announced that they're going to be cutting capacity by 55% in october, and this continues as the pandemic gets the best of the travel industry. you also have the fact that vacations are starting to slow, so it's relatively a slow period for all of the airlines.

but they did say that they're going to be slowing down services to 16 cities across the united states. and this comes too as the tsa and the latest numbers, the tsa travel, what we're seeing travel screenings down 72% compared to last years at this time. so that's a drastic number. and the good news though, the airlines more specifically are adding about 20 seasonal routes for customers to warmer destinations, but that's only really on saturdays. stuart: but otherwise it's a very slow comeback for the airlines, that's what it looks like. and, by the way, kristina, thanks for joining us this morning. thanks very much. >> thank you. stuart: ash and lauren out, kristina is in. take a look at the futures, please. it's kind of a go nowhere market early anyway. fractional gain for the nasdaq. check out times square. there is a chill in the air, but that's not what's making the place look like a desert. new york is still not back in

business. we'll be back. ♪ ♪ hi, this is margaret your dell technologies advisor there's an art to listening. it's the ability to hear more than what's being said. to understand the meaning in every pause. and to be able to offer the answers that make someone feel truly heard. i understand, let's get started. that's what you get when you talk to a dell technologies advisor.

find a stock basedtech. on your interests that's what you get or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. ♪ ♪ stuart: well, look at tesla's stock price having undergone the five for one stock split, it's

now 440 per share, down ever so slightly this morning. now, let's bring in the managing partner of new street research. pierre, you have downgraded tesla. i read your notes. you expect it to go to -- your target price is $1500 a share post-split, that's $300 a share. you're expecting this thing to go down. explain why. >> thanks for having me. so starting in late july with a neutral rating, so what does that price target mean? it means i recommend investors to look at add adding to their position to tesla below $1500. why is that? i'm stilling looking, you know, at the company five years out, 2025. i think the stock is worth

$2,500. so if you buy the stock today at $1500,, that gives you less than 15%. so it's not an active investment. that doesn't mean i expect the stock to fall, i'm just telling investors when the stocks do that -- for now it's -- [inaudible] stuart: okay. but whatever price an investor chooses to get in, you're saying that long term, over a few years, it is a very solid, good investment, that's what you're saying, right? >> absolutely. five years from now this stock is going to be at least $2,500 because this is really valuing the business of tesla. you know tesla is looking at insurance policy for that car, so so that's a very significant upside to profits. tesla is trying to make ergonomic driving, it's a very

significant way. and last but not least, remember tesla wants to do solar energy, and that business could be as large in the long run. stuart: all right, pierre. we do hear you, and we'll be checking that stock. thanks for joining us. here we go. it's 9:30 eastern on a monday morning, and this market just opened, and we'll tell you how it's doing. bottom right-hand corner of your screen, we're off of 50 points in the very early seconds, it's not a huge decline by any means. the s&p 500 coming off a series of record highs, down this morning but only a -- out just moved to the upside, up about a point. got that. the nasdaq composite, same story. off a series of record highs, up again this morning, 22 points higher, 11,700. the s&p 500 just notched up to the upside, that's a new all-time high. i'm going to show you the

vaccine makers. the fda said they are open, the fda is open to fast-tracking a covid-19 vaccine. there's the vaccine makers. another one, novavax, they've just reached a deal with canada providing them with, what, 76 million doses of the vaccine. the stock is up 8%. good vaccine news there. all of that tends to help the airlines which are mostly higher -- it's a mixed bag. usually good news on viruses helps the airlines. today not so much. however, we've got a big impact on wal-mart or and microsoft, both of them are down this morning. china has new rules which will hurt their joint bid for tiktok. got that too. all right, here's the newest members of the dow, salesforce, honeywell and am general. honeywell is down a fraction. today is their first day of trading inside the dow average. big stock, the one we always concentrate on, is apple. they've, after going through the

four for one stock split this morning they're at 126. what many do we have? >> apple stock calls this morning in reaction, so the most bullish webb bush now going from a $600 price target down to 150, so still a lot of upside. finish apple, 70% rally this year, it's made the stock the single biggest points contributor to the dow before the stock split. it account for 1400 points of the dow's gains this year. if it wasn't for apple, can you imagine where the dow would be since we're looking at the widest gap between the s&p and the dow in decades? one of apple's biggest investors, warren buffett, celebrating 90 years old over the weekend. he invested $36 billion into apple. now worth $130 billion. and remember buffett said he was, he said he doesn't understand it? the now it's the single largest stock holding, represents 25% of his portfolio. stuart: he made a good move,

department he? [laughter] he talked about bill gates -- talked to bill gates about getting into technology. >> happy 90th. stuart: tesla, they're trading with their new stock split 440 a share. >> investors have been scooping up call actions betting that the stock will go up ahead of this stock split. we know a record low number of investors betting against the stock. and some of the most actively traded options contracts have been bullish calls tied to these shares jumping to maybe 2400 or 2500 ahead of the stock split. now, it's highly unusual, by the way, in options markets where bullish calls are more exebb pensive than bearish because people pay more to protect as insurance against their portfolios. but tesla is just, you know, it seems like a one-way train. however it's till the number one shorted stock in america, betting against tesla.

second highestest shortage stock. stuart: just think of it like that. >> no, apple. apple and tesla. these two have run up so much that -- stuart: apple is the second most shorted stock? >> [inaudible] stuart: somebody's going the lose their e shirts if they keep going up like that. >> i think this is a great example of free markets, right? stuart: yes. one second. you've got one more story. big tech collectively, take 'em all together, those fife stocks -- five stocks, their value is now more than whole countries. >> european market according to bank of america. yeah. so these five big tech stocks are worth more than the u.k. and switzerland and everything else thrown in. in fact, the european market was four times larger than u.s. tech back in 2007, but things have obviously changed in 12 year' time. by the way, if you look at it, amazon's market value and its, i

guess, share of the 9 trillion plus has gaped 20% since -- gained 20% since 2010 whereas apple is worth more than russia, canada and the spanish economy on its own. [laughter] stuart: it's hard to wrap your arms around this stuff. who saw this coming? other than warren buffett? dow is down 30 points, we've come out of the box on a monday morning on the downside, although the s&p and the nasdaq earlier hit all-time highs. let's talk about zoom. they report this afternoon. kristina, come back in please because we're looking for some big numbers today, i guess? >> oh, yeah, definitely. this is a household name that's even become a verb. i'll zoom you later. what we know is the earnings are coming out after the bell. right now the stock is trading higher, up over 3%. this is a 52-week high. we're talking about how it's done compared to broader markets, up over 340% compared to broader markets only up 10%. to answer your question what are we expecting out of the earnings

report, the guidance came out from the company, so usually that's pretty conservative, but the company believes revenue is going to climb 241% compared to last year at this time. they're adjusting earnings, they're expecting that anywhere from 44-46 cents a share. also a huge, over 463% increase compared to last year at this time. the big question is can zoom continue this drive up. analysts are relatively bullish. rbc capital markets had a report about two weeks ago, and they believe the number of app downloads that you're seeing with zoom will continue to rise and the fact that people are a paying for zoom. because i don't know about you, stu, on thursdays i have a zoom drink session, and we always get timed out after the one hour mark because none of us have the account. that's why some people are paying into it. [laughter] stuart: you're honest about the way you spend your thursdays. my, kristina -- >> i know! stuart: disney plus subscribers

an additional $30 to watch mulan. it's out friday. kristina, there may be a way to avoid that charge if you're really desperate to avoid it? how do you do it? >> that means you've got to wait. there was a screen shot that was taken from a news entertainment site, and they found out that, yes, september 4th you have to pay $30, but if you wait until december, according to the screen shot, a all of disney plus subscribers will get access to the new america -- mulan movie. we reached out to get an answer, we haven't heard back from disney just yet. but that movie cost $200 million to make, so it's understandable maybe why they want to charge extra. stuart: understandable entirely. thanks, kristina. we've got the dow down triple digits in the early going this monday morning. and there's this too, tv host bill maher, no fan of the president, now he admits he is, quote, very nervous about joe

biden's chances in november. watch this, please. >> maybe it's just their convention bump got to me -- >> yeah. >> but i'm feeling less confident than i was a month ago. i feel very nervous. >> yeah. >> same way i did four years ago at this time. stuart: all right. well, we -- what is it now? 64 days until the election. you need to know that. kentucky senator rand paul wasn't the only person harassed by protesters after the president's rnc speech thursday. economist stephen moore says a protester spit on him after he left the white house. what's going on in america today? steve will join us in our 11:00 hour. wal-mart could turn into a leader in the appetizing world if tiktok succeeds. we will explain that. wal-mart down this morning. we'll be back. ♪ ♪

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♪ ♪ stuart: we've still got a triple-digit decline in if the w industrials. here are the three stocks dragging the dow to the downside, they are boeing, wal-mart, goldman sachs. boeing is down a couple of bucks, wal-mart down nearly $3, goldman sachs down $1.26. that means about 50 points shead off the dow because of those -- shaved off the dow because of those three stocks. let's talk about the tiktok and microsoft/wal-mart deal. looks like it's a lot more complicated, looks like beijing is throwing a roadblock in the path of that kind of merger and purchase of tiktok. kristin is with us, kb advisory group. the way i see it, china has changed the rules, and they're making it more difficult for a chinese company to ebb port its technology -- export its technology. that's a roadblock for the wal-mart/tiktok/microsoft deal.

do you think it's a roadblock that stops the deal complete arely? >> i don't think so. i really don't think that any of these chinese implications or trade implications really has much leverage over microsoft and wal-mart. i really don't see it as ad roadblock atal all. stuart: but they want the technology which beijing is not prepared to export. >> they're not prepared to export it yet, but this could just be a tempest in a teapot because november 12th if trump continues increasing in the polls, he could shut it down completely. think it's a fantastic acquisition for wal-mart, i think it makes sense. i think a lot of this is the, you know, saber rattling, if you will. stuart: okay. you say it's a fantastic deal for wal-mart if it goes through. fantastic is a very strong word. lay it out for us. how good is it for wal-mart is if it went through i? >> with well, when you consider that instagram is valued at $200 billion, picking up tiktok for

$30 billion would be a massive coup for wal-mart. and what people don't know is that wal-mart is actually a top 25 brand for ggen-z. they like it. they're shopping there. they're not these individual consumers that fears wal-mart. they love it. they seek it out. and wal-mart is extremely aggressive here trying to target gen-z, and they're not afraid to fail. they bought several, you know, different online brands that have worked out and have not worked out, so they know that their consumer in the is g e n- future is gen-z. stuart: what's the anal group? >> generation z? probably around my kids' age, 15, 12, 17, that very minimal target market that is excited about watching their friends do dance competitions on tiktok. and that is a huge audience for wal-mart to grasp and put in the

advertising relationships are completely mind-boggling for them. it's just completely amazing what they can do with this data they can grab and grasp. stuart no problem with the price tag? if it's a joint bid, you're looking maybe 30, maybe $40 billion. that's not a problem for these two companies at all? >> wal-mart's got money to burn here, they're extremely aggressive, they're not afraid to -- especially with microsoft on the back end, it's a slam dunk. stuart: it's a slam dunk if it gets through. all right, kristin, we'll see if this goes through. thank you. all right. let's get back to susan. elon musk -- [laughter] this is an interesting story. typical, a brain chip implant. tell me more. [laughter] >> that's right. so a live demonstration on friday. but think of it as a fitbit for your brain, that's how elon musk wants to describe it, tracking your.

brain activity, and it's picking up what's missing. so a chip implant can help with brain muscles, can help fight blindness in the future, memory loss, insomnia, and they're hoping for a simple procedure to just sew the chip into your brain with robots, kind of like a routine lasik eye surgery. friday's demonstration was in a big named ger trialed, i don't know if we have that, but she was petted and fed and then a dismay showed off her brain activity through the neuralink. he's invested $150 million into neuralink himself. spacex, tesla la, musk is a futurist you don't want to bet against. spacex worth 40 billion -- stuart: it's called neurolink. >> neuralink. stuart: the big deal is getting

a link between the brain and the computer. if you can get that link together -- >> yeah. stuart: -- an interface, i think it's called. >> yes, that's right. stuart: if you do that, you can put all kinds of things -- >> and help but brain conditions like quadriplegic. stuart: that man never ceases to amaze. >> that's why we call him tony stark. you know who that is now. stuart: who? >> tony stark. "iron man". >> i got it. [laughter] michael moore says enthusiasm from president trump's base is, quote, off the charts. he's warning fellow democrats why another trump victory is possible in november. democrats are nervous about this. sales of large are homes up 21% on your screen. you can see it. ain't that different? i thought we were going towards smaller homes but not now. post-virus we're going for space and size. we'll detail that after this. ♪

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stuart: big theme on this program, the y exodus.

people are flocking out to suburbs and beyond. they're looking for more space. that's one of the reasons why they're leaving the cities. look at this number. sales of large homes up more than 21% compared to july of last year. interesting. finish mitch roschelle is with us, partner and business development guy at wc. look, mitch, first of all, define larger home. >> to make it simple, stu, it's an extra bedroom. so if you look at searches, people are basically clicking one more bedroom versus what they'd clicked last year. so that translates to a larger home. could be as little as 20 square feet, could be as many as a few hundred square feet on average, but the fact of the matter is just one more bedroom. stuart: but what they want is that extra bedroom, that extra space because they're moving out of the city and maybe working from how many. that's what's fueling this

thing, is it? >> yeah. there's two things, stu. there's folks or that are leaving the city, and generally when you move to the suburbs, you can get more space. but there's also folks who live in the suburbs or living in the rural america, and the fact of the matter is they need more space. and the reason is that's either a home office, you have a working couple, they both need a place to work, or it's even a classroom. there's the actually no space in the house in many cases for a classroom. so whether it be work or schoolwork, the fact of the matter is they need that extra space, and that's why they're clicking for that extra bedroom. stuart: herself something that i don't -- here's something that i don't understand. we're told it is a seller's market. after all, prices are rising, you can sell more easily. very strong demand for lots of different kinds of houses. mortgage rates around 3% or below. why aren't there more sellers emerging if it's such a seller's market? why not more sellers? >> because there is such little

supply. if you sell, where are you going to buy, where are you going to go? so if you look at the tradition aal stereotypical mold of baby -- model of baby boomers sell their home in the northeast and buy a home in florida, the fact of the matter is that market is even tight right now. so it's really sort of a game of musical chairs a bit. people aren't selling their homes because they don't know where to buy. i have neighbors that sold their home, don't have a place to buy, sold it in a couple of days, actually, to a couple from seattle moves all the way to the east coast, and now they're scrambling trying to figure out where to go. so i think it's really a supply and demand problem on both is ends. stuart: i've heard about bidding wars in this real estate boom. very interesting. not seen that before. all right, mitch, thanks for joining us, as always. keep us in touch with real estate, please. first of all, microsoft, it's down this morning. there's a snag developing with any potential purchase by microsoft and wal-mart of

tiktok. microsoft is a dow stock, it's down exercising a little bit of a drag on the dow industrials. and so is wal-mart, morgan, boeing, chevron, disney. they're all down stocks, they're all -- dow stocks, they're all down. that's why we have the dow down on a monday morning 150 points, that's about a half a percentage point. still to come, here's what we've got for you. larry elder on president trump's trip tomorrow to kenosha despite the governor of wisconsin telling him, please, don't come. katie pavlich on the left's fear of another trump win. and georgia governor brian kent on what some are calling his state's successful pandemic progress. we'll do the usual thing, we'll show you fifth avenue right in the middle of new york city, deserted again on this monday, august 31st. ♪

♪ ♪ . . . .

stuart: seeing a fair amount of red ink on the markets. we do have a modest gain for the nasdaq. the dow is is down 160 points. let's start there. look at stocks that are dragging the dow down. we got boeing, we to the walmart. we got goldman sachs. they're all down for different reasons, hurting with the dow industrials. microsoft there is a problem with the joint bid for tiktok along with walmart. the china are putting roadblocks with that possible deal.

the dow which is off 173 points as we speak. now this. i spend most weekends outside the city. since of the beginning of pandemic i headed to upstate new york and i have noticed something. i'm not alone. my fellow exiles though are not just visiting. many of them are staying and they brought the kids. one school district near me reports a sharp rise in enrollment, the first in decades. this is a microcosm of the new demographic trend, the move out of cities. very few big cities offer for a single day let alone the whole week. parents with the money will move in the interests of their children. they're doing it because they can. in the new economy many well-paid people can work from home. they can't go to their office in the city but they can work from

anywhere with a decent internet connection and zoom. plus, it is a affordable. get out of town and check out the cost after home with a couple of acres. i repeat a couple of acres. surely that is attractive to apartment owners with children, especially when the joys of city living have all but disappeared. i hate to burst the liberals bubble but out in the country it is much safer. gun ownership is very common. mugging, murder, and mayhem are not. the suburbs are getting a big share of the exodus from the cities. "the new york times" reports a 44% increase in home sales in july in the suburbs right outside of the city and a 56% drop in sales in manhattan. "the times" cites one house in new jersey offered at 285,000 bucks. it got 97 showings, 25 offers. the house sold for 21% above the

offering price, extraordinary. it is not just new york. a recent pew research study found one in five of u.s., of us, one in five of us relocated this year or we know someone who has. it is under 45s who are doing most of the moving. that is a significant demographic shift. truth is the virus is reshaping our society. at this moment, our biggest cities are taking an enormous hit. people are leaving. i will leave you with the money shot. sixth avenue, center of new york city, still close to empty. all right. let's get straight into it, bring in market watcher jeff sica. he is with us. let's get back to the stock market and away from the city exodus. this is the best august since what, 1984 and we had a stunning july and august rally on the markets. now all of the years that you have been on the show, you've been pretty cautious, consistently cautious. what are you saying now?

>> well i mean, i'm cautious. i'm invested in this market, stuart. i think i have spoken of some of the stocks i like but i don't get much sleep holding these stocks and the reason why is, and everybody knows this now, the market has been driven by these six stocks. they have been the catalysts behind the movement in the s&p 500 yet these six stocks are only a small percentage, less than 30% of the economy in the technology stocks. so my certain is that you have an economy that's struggling, that's sluggish and you have a stock market that is booming and sooner or later you're going to get a day of reckoning and that is what concerns me most. stuart: hasn't come yet though, has it? >> no. you know, i'm not going to be the one to say, to name the date and the time that this happens but what i am going to say is

that the consumer is a major concern for me. the consumer, the covid stimulus ended at the end of july. now the consumer has to deal with life outside of the stimulus, which you're talking about tens of billions of dollars that were coming into the economy through the covid stimulus. that ended. we're going to see the health of the consumer in august and i think that is going to be very telling in earlies of it the short-term direction of the market. stuart: i've got to say i think you're ignoring the extraordinary money printing by the federal reserve which jay powell says is going to go on and on and on. traditionally that always, i think has always been a stimulus for the stock market. >> oh, yeah, that is exactly correct, stuart, and you can't fight that, the fact that the fed is printing massive amounts, oceans of liquidity coming into

the stock market. you can't ignore that but you have to look at the effects of this liquidity. the liquidity has inflated the market to such an extent but if you really look at it the economy worldwide is still very sluggish. so are they pushing on a string? that's the question but you're right, jerome powell, he is the best friend of the market. everybody owes jerome powell a standing ovation. the reality is, can he keep this up and will it accomplish what he is trying to accomplish which is a level of inflation that justifies the growth numbers that we're projecting. stuart: jeff, i've known you for a long time and you've always been involved in the hotel business which has been utterly slammed by the virus and shutdown. do you think the hotel business has a growing role when we get past the virus and if so what

role does it have? >> i mean in the hotel business it's a very hard business to be in right now and the motto and motto that i'm using is that it is either you adapt or you die. i mean travel in 2020 was down 80%. that is a mind blowing number, and that number is not going to come back too soon. so hotels need to find new ways, not just cleanliness, not just social distancing but new ways to bring in customers. what i see, where i see the hope of the hotel industry is creating satellite offices for businesses that have to maintain social distancing criteria in order to function because i think what we all have to face is that the hotel industry will come back. we are social animals. we need engagement. we need connection. and only way to have that is to be aggregated together, not

huddled up in our homes on our computers and trying to connect through zoom. those things are great but those things have a limit. we need to get together and the hotels with all this space, with all this:liness with great food, the hotels can provide that for people. stuart: i take your point, jeff. i think it is a long way away. but they have to alter their way of business i think. jeff sica, thanks for joining us. see you real soon. i will go back to microsoft. a probable deal, suspected deal with walmart to buy tiktok. we have new rules from beijing which might interfere with that purchase of tiktok. microsoft is down two bucks on the news. walmart is lower, any interruption of the deal with tiktok is not good news for walmart. of course we're watching apple and tesla. officially they have begun the

split stock trading as of right now but susan, you have news on both apple and tesla. susan: how apple does after the previous four stock splits. stuart: tell me. susan: four for one in history, historical trade after apple splits they're usually down 5 1/2%. so you don't have not to rush in according to historical data with apple trading cheaper. ipo'd in 2010, at 17 bucks, guess how much you would have made on tesla shares. stuart: tell me. susan: $17 if you had bought it. stuart: just tell me. susan: tell you because it hurts. 5000 times your money. that is how much you're paying, you would have gotten back. some people say that tesla is crazy expensive at these levels, right? it is quintupled this year. we look at value and expensiveness, something called price to earnings. what is the price you're paying for future profits for the company. in tesla's case it is 1100 times

the price. price you're paying now, you're expecting profits to go up 1000 plus in the future. is that necessarily going to happen? you might. never count out elon musk and million mile battery day and china. stuart: living through the 1990s and the dot-com bubble, i'm real shy about jumping into a stock like tesla what -- susan: 1100 times. amazon at one point was trading at a few hundred. stuart: i missed that one too. you know. susan: you have a lot. it is the amazon world that we live in right? people gotten used to paying for growth without making money and profits that is what investors pay for. stuart: you're right. got it, thank you, susan. show me the discount retailers. dollar tree, dollar general. both of them will report earnings sometime this week. christina part kristina partsinevelos welcome to the show. good to see you in the

10:00 hour. i would thought that they would give dollar tree and door general a big boost. am i wrong? >> cost-conscious shop remembers looking to stretch budgets. people not getting stimulus checks or people being furloughed or massive pay cuts across the board. why the seeing a boost in same-store sales let's say for family dollar which saw an actual boost of 11.6% in the second quarter. dollar general, almost 19% higher. we have company reporting wednesday, that would be five below. that is considered a discount store this is geared toward tweens and teens. they're offering work at home stuff, they're trying to cater to the new trend. the big question, will people keep shopping at these stores,

dollar general, dollar tree? the answer is yes. five below acquired a company called holler.com, in order to deliver, you can purchase goods on there, pick up in store. this will be across the board as we see more and more people shift to discount shopping. with those earnings that is five below coming out on wednesday. stuart: watch for that. thank you, kristina. tv host bill maher, admitting quote he is very nervous about joe biden's answers in november. roll tape. >> maybe it's just their convention bump got to me but i'm feeling less confident than i was a month ago. i feel very nervous. the same way i did four years ago at this time. stuart: oh. then there is filmmaker michael moore who says the president is on track to repeat his 2016 win. enthusiasm for trump, from his base at least is off the charts. we'll get into that. president plans to visit ken scioscia, wisconsin, tomorrow, but wisconsin's democrat

governor says stay away. another development in the postal service. vanishing mailboxes but it might not be as usual as you think it is. we'll explain after this. ♪ - the world is in turmoil. been turned on it's head. of a possible recession..

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coming to the green flag, racing at daytona. they're off... in the kentucky derby. rory mcllroy is a two time champion at east lake. he scores! stanley cup champions. touchdown! only mahomes. expect anything different? the big events are back and xfinity is your home for the return of live sports. stuart: the mayor of chicago is set to unveil the city's budget forecast today. could show a shortfall of maybe a billion dollars. grady trimble is with us. seems like a perfect storm. protests, pandemic, taxes, you name it, awful. what have you got. reporter: make as bleak financial situation for the city even bleaker. past few months on the magnificent mile has been tough. it there was a protest over the

weekend that made things more difficult. businesses still boarded up after the weekend protests and looting of late. there was no looting over the weekend t was a peaceful protest. they still hit -- here in a -- protest goal was to shut down the magnificent mile and in a way they were able to do that, even though police kept the protesters off of. point out as you mentioned, stuart, the unrest has led people to leave the city on consider leaving the city including many of the businesses here. the mayor -- [inaudible] potentially you know what she might have to do. nothing is off the table. you raise taxes more. people start to leave. then the sigh chem repeats. stuart: we do apologize for the sound quality. grady, you're coming in and going out but we get the gist.

per perfect storm for chicago. what will they do any don't know. probably appeal to the president or congress for money. not sure they will get it. grady. thank you. president trump is visiting kenosha tomorrow in wisconsin, the governor, tony evers, says stay out. in a letter he writes, that is a quote, i'm concerned your presence will only hinder our healing. i'm concerned your presence will only delay our work to overcome division and move forward together. there you go. larry elder is with us, salem radio talk show host. you heard the story. what's your take on it, larry? >> well, if the president were to ignore kenosha, wisconsin, and not go there he would be accused of being indifferent about issue of police brutality against brac people. if he goes he is accused of provoking and being a distraction. so it is a no-win situation for president trump. i put it under the category,

stu, of trump derangement syndrome. let's remember after the gulf war, the war in iraq, rather, george w. bush was disinvite ad number of places there is a great deal of hostility on part of republican presidents when they're in office if they make a decision democrats don't like this. is par for the course. very unfair to president trump of course. stuart: what do you say about the narrative we have surrounding kenosha which is it is about police brutality and shooting of that man? are you in agreement with the narrative? >> no, i'm not. what really bothers me, stuart, i look at bestket ball player like lebron james, coaches like doc rivers, who i have a great deal of respect. i love sports. i watch games. when they go into the detailednal skis using facts, data, stats. where is the mind sight that notion that police killing black people because they're black. the data do not support that if

anything, the police are more heavies tant to pull data on a black suspect than white suspect. 25 unarmed people with killed by police. number of black people killed by police unarmed, recently perceived not dangerous, talking about a tiny, tiny fraction. at least as many unarmed whites are killed as unarmed blacks. last year 50 americans killed by lightning. 25 black americans killed unarmed by the police. more americans are killed every year by lightning than unarmed black men killed bit police officers. no one cares about people being killed by lightning. but we care about unarmed black person killed by the police. unarmed white people, completely unfair. if using the same logic, well there are 50 million interactions every year with the police and civilians. out of interactions there are 11 million arrests. out of 11 million arrests 60,000 officers, assaulted, 1000 people killed, 250 black, twice as many as white.

very, very rare unarmed person to be killed. let alone unarmed black person who is perceived as non-threatening. it is very, very rare. athletes use the same logic when they evaluate themselves and opposing teams for this issue? stuart: give me 20 seconds whether or not the new pom ticks in sports hurts the sports? >> oh, i think it definitely does. i have seen polls that suggest a lot of people now are less interested in going to an nba game, for example, than they were last year because of all these protests. nba is allowing players to put messages on the uniforms for crying out loud. i go to sports to get away from politics. i think a lot of people do. i think ultimately it will backfire. stuart: larry elder, good to see you again. you've not been around for a while. don't be a stranger lad. see you soon. >> thank you. stuart: i got your number. put it like that. staying on the protests, kristina, come in please. kristina: new bill in congress

blames to cut unemployment benefit for violent demonstrators. tell me more about that, please? >> a bill by representative from indiana, jim banks. that means if you are a protester and you get caught vandalizing, destroying property and you are taken in by the police, this bill means you no longer get access to any type of federal assistance including the stimulus checks. in a press release representative jim banks did say thugs, that is quote from him were descending into communities, disrupting peaceful protests while leaving violence and looting in their wake. he called seattle, portland, milwaukee all war zones. stuart, like to end with this, the bill also will include, if it passes a financial penalty. that means that if you get taken in by the police you also pay an additional fee for that federal policing which will be determined by the courts.

kristina. thanks. that is in the indiana legislature, not in congress that bill. thanks, kristina. the postal service. some people are up in arm on the removal of thousands of mailboxes. however, susan, you're telling me it is not out of the ordinary? susan: no, in fact in line with historical averages we've seen. "usa today" did a close study of number of mailboxes across several states, what they found from 2010 to 2019 on average the postal service removed 3200 box as year were removed, right? 3258. now from september last year to september this year 4200 mailboxes have been removed. so that is you have arely, in line with 10-year average, right? not the blanket countrywide removal of mailboxes some democrats have worried with the depress mail-in voting. post office has been slowly removing mailboxes since the 1970s. that to save on money.

one less stop, to actually save on amount of work that a postal worker does, means you don't have to have that many postal workers. the postal service has not made money since 2006. they lost $83 billion. most of that loss comes from underfunded liabilities of pension funds that would be natural for you to jump in there, but no, okay. stuart: you're quite right. unfunded liabilities for the pension fund. susan: that's right. stuart: mailbox removal is not voter suppression. par for the course on a 10-year average. susan: right. stuart: thanks. kentucky senator rand paul not only person confronted by a angry mob as he left the white house on thursday. economist stephen moore was spat on. he is on the show. he will tell us all about it in the next hour. sports betting companies banking on the nfl to kick off the 2020 season without a hitch. what happens if games are suspended because of the virus or anything else? i'm asking the question after this. ♪

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stuart: i'm showing you the markets because it's a monday morning, last day of trading for august. it has been a terrific month for stocks but we've got the dow at

this moment down 200. look at tesla and apple both on the stock split today, tesla up 5.6%. another huge rally for that stock. look at apple, up 2.6%, another huge rally for that stock. i'll tell you, split the stock, look at them go. vaccine makers, we heard from the fda commissioner stephen hahn, willing to approve the top candidates for national use before the phase three trials are over. get them out quicker. most vaccine makers are up. look at gill idea, the fda expanded use of virus treatment, remdesivir. now allowing all hospital virus patients access to it. stocks are up. here is what doc siegel said about it. roll tape. >> vaccines look more likely every day, quote. very excited about this. we have six in the united states in the final stages of trials. nine around the world. we're looking at being done with phase three trials sometime in

late fall. he might issue an emergency use authorization when the vaccine trials are done before the red tape. so we might cut through the red tape. in the united states we're not going to do this, i do not believe until the trials are done. stuart: we shall see. right now gilead sigh science ia little bit. take a look at nestle. a biotech company called aimmune, they make only fda drug for treatment of peanut allergy. they work on other allergy drugs. nestle just bought them. what is the price, kristina? kristina: two billion dollars. nestle is moving away from focusing on kitkat bars and instant coffee moving into health sciences. this is not anything new. they have been working on health sciences or have a department

over last nine years. they had a stake in aimmune technologies which is a california company. it was not cheap. they paid roughly 174% higher than friday's closing price for the shares. the stock has been climbing higher for the last little while. this biotech firm has only one approved product thus far and no sales yet. nestle estimates 240 million people around the globe do face some type of allergy, peanut allergy one of the most popular ones. they have an approved allergan available for children use. the conclusion, nestle provides product with traces of peanuts, potentially being the problem, now also there is a solution giving you the allergy for it or medicine we should say. stuart: kristina, when i was a lad nestle was all about chocolate and coffee. my, how times have changed.

kristina thank you very much. kristina: adapt. stuart: nfl season begins 10 days from now. will be a big business for download gambling sights. they make gambling software for casinos. dermot, you need the nfl season to go without a hitch, you're banking on this thing to work? >> stuart, hough times have changed. we believe nfl season will be reach business nearly as usual and gambling of all kinds. stuart: you hope. >> casino gaming. stuart: you hope that is the case. you're banking on this? >> well, it is a reasonable expectation based on all the information out there and we're aligned with industry consensus that nfl will -- see through the season through some degree of normalcy. stuart: will it make any difference if there is lots of social justice protests and a

black national anthem played before the nfl games? that doesn't make any difference to gambling on the games, does it? >> it does not. obviously heightened awareness of a whole raft of political aspects to the nfl this year however we do believe nfl will commence and through the season with some degree business as usual. stuart: how about the college football suspensions and postponements, did that affect business? >> it did not. we saw internet sports betting continue to go you there through months of july. stuart: transferred to different sports? >> we saw huge increase in betting activity, mixed marshal arts events. anything on friday or the weekends attracted a significant degree of activity. stuart: are you worried that you may be a business for gambling addicts? >> not at all. here in the united states unlike

europe and asia, regulation and player protection is put at the heart of everything we do from a technical standpoint for all the major clients now including churchhill downs. stuart: dermot, we hear you. i'm not so sure about the nfl going off without a hitch. that is what you're banking on. we'll see how it works out. dermot smurfit from gan. >> thank you. stuart: gamestop soaring today, 19% higher. would you like to explain that one to me? susan: up 20%. hedge fund rc ventures bought 9% stake in struggling bricks and mortar retailer. gamestop seems down on its last legs, up 11% in a up market during a pandemic, down over the past decade as gamers more and more go online. another positive for the stock, covid lockdowns mean record gaming, record spending. 70 billion spent in 2020. according to bloomberg analysis. another positive for gamestop,

they will sell the nintendo switch bundle. the nintendo switch, i will explain it to you, is the best-selling game console this year. sells more than xbox and playstation. this owes mostly to the phenomenal, i mean phenomenal success of animal crossing. i don't know if you ever heard of that game. animal cross something one of the most played games. doing so well during the covid lockdowns that is helping nintendo. gamestop will start the boost and bundle and promotions for it this month in september. stuart: "animal crossing" is a big help for gamestop? susan: and nintendo. i love it when you talk gaming. it is he nouveau. stuart: have you played "animal crossing." susan: i haven't yet. you keep ask me if i play video games. i do. stuart: what do you play? susan: "fortnite," cash of the clans and other stuff. tell you more about it. stuart: thank you very much

indeed. mma fighter fighter blasted nba and baseball players for boycotting games to protest the jacob blake shooting. he is on our show next hour. coming up georgia governor brian kemp. he got a lot of flak when he opened up the state. now some are praising his successful pandemic progress. there is a turnaround. more "varney" after this. ♪. ♪

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stuart: we've got some red ink there especially for the dow, off 176. a nice 50 point gain for the nasdaq. got some airline stories for you. delta, they really want you on board, they want you to feel safe, they're the first airline to offer and install hand sanitizer stations on the planes, up to five stations depending on the size of the plane that you're on. the stock still languishing,

down 2% today, at 31. american airlines they announced they are cutting flying capacity more than in half in october. low demand because of the virus. american airlines back to $13 a share. finally good news from united. ditching flight change fees. yes, there is a catch. it is only if you're flying within the united states, puerto rico, virgin islands. the stock is down 2% at 36. interesting. check those lech thick carmakers. what is the news from the electric carmakers? susan: you have to look at tesla's stock up 6%. battery day is coming up in september. that is a big deal when it comes to electric cars. if you look at the research being done by carnegie, which is innovator of electric cars, most of the cost of electric car comes from the battery, how far it goes with one single charge. which is on average 450 to 500 f you get a million mile battery

that is game-changer how much you pay for gasoline cars versus electric cars. the premium is 25%. stuart: pay more for the electric car? that is the price tag difference. susan: up 20, 25%. however, if you get a battery that can charge longer that means that price comes down a lot. right now it come down a lot over past 10 years. that is over 156 per kilowatt-hour. stuart: cost of the electric vehicle should be more competitive, can you put it like that? >> they say about 223 maybe. 2025 definitely, that electric cars will cost the same as gasoline cars. which would you opt for when it comes to that point? stuart: depends on charging stations for me. susan: depends on the price of gas too. stuart: i assume. tesla, 5.3% higher on the day it split? susan: incredible, isn't it. five for one. this stock is unstoppable. they have been doing very well in china.

we'll see what happens on battery day which is key. stuart: september 22nd. can't wait. susan: fingers crossed. stuart: elon musk is an interesting guy. susan: he is worth a lot of money. stuart: he sure is. that is not his only source of interest. the man is everywhere. from golf fans. this is john rahm. bmw championship in illinois. 66-foot putt, clinched playoff win over dustin johnson. 66 feet, put it right down in the hole. hope you didn't miss that one. quite something. still no clear indication when indoor dining will return to new york city. restaurant owners fed up, and there is a chill in the air already this morning. you can feel it. a reminder the cold weather not far off. what does that do to outdoor dining? we'll be back. ♪ i like liberty mutual.

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stuart: we still got a nasty lows for the dow industrials. we're down 184 points but, please, look at tesla and apple. at the risk of sounding like a broken record, these are the two most important stocks of the day if not the year. tesla coming off of a five for

one stock split is up another $25. that is 5.6%. apple coming off a four for one stock split is up nearly 3%. both going straight up right after the stock split. amazing. amc entertainment are was seeing a slight boost. it is down three bucks, 3%, i'm sorry to say. they're selling theaters in the baltic region which brings them $77 million. a shrug from investors. so what. the cinema business is in deep trouble anyway. the virus slammed the restaurant industry. one saving grace has been take-out and delivery. kristina, is back to tell us, friday night is a big night for order in? kristina: fridays and saturday. i asked you if you do take-out, you said you never ordered it. across the board a lot of people through the pandemic has been doing so.

that is a saving grace for a lot of hard-hit restaurants. the industry is ravaged by the pandemic. many, many closing their doors for good across the country but new report by "the washington post" say fridays and saturday nightses have come to the rescue. another market firm, tecnomic, surveyed 27,000 restaurants across the country. they said friday and saturday sales account for 24% of overall sales for a lot of restaurants. much has to do with delivery. why you're seeing grubhub guys drive bicycles across cities as well as postmates, uber eats. even grub hub, sales up 59% in the second quarter. intel market research, for month of july, they surveyed a bunch of americans, the vast majority of americans still don't feel

comfortable eating inside. probably why we see uptick in take-out sales across the board. stuart: kristina, i'm dying to eat inside. since i live in new jersey, i now will have, very soon the possibility of easting inside. yeah, i live in new jersey. and the governor, mr. murphy, he has said now that as of friday of this week you can have indoor dining at 25% capacity. you got to keep the social distancing, kristina. we understand all of that. kristina: always. stuart: always. we'll do it. but i'm very happy to be going back if they open on friday in new jersey. still no clear indication when indoor dining comes back to new york city. look who is here. bobby morici, owner of vincent's clam bar on long island. bobby, welcome back to the show. good to see you, sir. >> thank you, stuart. a pleasure to be with you. stuart: as i hear it, you're doing just fine. you have a great takeaway business, curbside business,

outdoor dining business. you're almost back to normal, aren't you? >> we're actually ahead of last year's numbers, stuart, whichever is amazing, which is amazing. we had a take-out component already built into the business. all we needed to do was pivot to full take-out. so we didn't have to reeducate our guests what take-out meant for our restaurant. they already understood that. stuart: however the cold weather coming. i don't know if you felt it this morning. but i did. there is a chill in the air. i don't want to be eating outside in long island. you want some indoor space opened up, don't you? when do you think that might happen? >> well, you know, we've been functioning very well at 50% indoor. i'm hoping powers can be realize that, kick us up to 75%. or god willing 100%. because a lot of restaurants cannot function at 50%, stuart. you can't bring in enough dollars, enough revenue to make it work. you can't pay the rent at old numbers.

the rent is set up on the old format. so in a new format a new revenue stream it doesn't work. so you will lose a lot of restaurants if we don't correct this soon. stuart: i think that message has really gotten out there. people understand this you can't make money operating a restaurant at 25 or 50% capacity and if this goes on very long they're out of business. i think 1600 restaurants in new york city have closed for good. you guys are really putting pressure on. do you think you will get some real action from the mayor and the governor soon? >> i truly hope so. you know, there are some, so many, so many lives at stake. people's, people's livelihoods in the balance. i hope they understand this. a lot of people especially in the middle, the middle class relies on the hospitality industry. there is some people involved in it. you know, i think they realize that. i know they know it is guessing colder. they have to come up with some type of an option to keep everyone satisfied. what that will be i'm not sure.

i hope they work on it soon. stuart: bobby, i missed out one thing you've got going for you, that is clam sauce. >> oh, yeah. stuart: you got, what you say is very, very good clam sauce. you're selling a lot of it, are you? >> we sell a ton of it. we go through about 10,000 clams a week. so we're actually involved, yeah, we actually started donating our shells to the billion oyster project to restart all the harbors and create new reefs, artificial reefs with the new shells of seedling oysters and clams. we're putting back as we're taking. our clam sauce is considered the best on long island. stuart: give you that. thanks for being on the show. >> stuart, really enjoy it. really enjoy what you do. thank you very much. stuart: bobby morici, thank you very much. i like some of the clam sauce. check this out, spacex

launching the first southbound rocket from florida since 19689. it is the falcon 9 rocket, it goes into orbit around the north and south polls. often goes around the the equator. this time it is going around. got that, everyone? market shows a nasty loss,down 182 points. turns out kentucky rand paul was not only one confronted by an angry mob after he left the white house and the president's speech. economist steve moore faced protesters. he said he was spat on. he is on the show. katie pavlich, on biden leaving the basement, heading out on the campaign trail. georgia governor, brian kemp, one of very first to open his state. now he is being praised for it. a you can is es is. why the democrats are nervous about the possibility of a trump re-election. nervous they are.

third hour of "varney" right after this. ♪. introducing stocks by the slice from fidelity. now you can trade stocks and etfs for any amount you choose instead of buying by the share. all with no commissions. stocks by the slice from fidelity. get your slice today.

it's made for him a veteran who honorably served and it's made for her she's serving now we also made usaa for military spouses and their kids become a member. get an insurance quote today. stuart: at this time in the 2016 campaign, hillary clintoned had a 7-point lead in the polls.

surely she would be president. surely she would beat donald trump. right now joe biden has a 7-point lead in the polls, but the democrats are nervous. perhaps they remember how wrong they were about hillary. they're nervous for many reasons. the biden campaign has failed to deal with the urban violence that we all wake up to seemingly every day. it wasn't even mentioned in the four-day democrat convention, but suddenly -- after he was called out for his silence -- joe turns around and says, okay, violence is bad. where's he been all this time? by the e way, he's going to talk about kenosha tomorrow, but he's doing it from pennsylvania. the president will be in kenosha tomorrow. biden is only leaving his basement because the basement strategy just isn't working. but getting him out and about is has only encouraged the democrats' anxiety. don't debate trump, says speaker pelosi. they don't want a senior moment in a presidential debate.

they'd love to keep him under wraps, but they can't. some of the more honest democrats acknowledge their concern. michael moore said this over the weekend, and i'm quoting now, the biden campaign just announced he'll be visiting a number of states but not michigan. sound familiar? that's a reference to hillary's campaign mistakes. moore again, i'm warning you almost 10 weeks in advance, the enthusiasm level for the 60 million in trump's base is off the charts. the polls are tightening too. biden's big lead in michigan has been cut dramatically, and in minnesota it's a tie. by the way, five democrat mayors in minnesota is have publicly endorsed trump. if you want any more evidence of the democrat nail biting, here's bill maher. roll tape. >> i am feeling less confident about this. maybe it's just their convention bump got to me -- >> yeah. >> but i'm feeling less confident than i was a monthing

ago. i feel very nervous. >> yeah. >> the same way i did four years ago at this time. stuart: all right, you heard it. that's my opinion, that the democrats are nervous, and rightfully so. that is my opinion. katie pavlich is with us, fox news contributor to boot. all right, katie -- >> morning, stuart. stuart: -- are my politics getting in the way of solid judgment here? is this bushful thinking on my part -- wishful thinking on my part? >> no. it's very clear that they are nervous about repeating the same mistakes of 2016. you can't be a man of the people without going out and campaigning with people you're trying to earn votes from. this idea that joe biden was going to stay in his basement as the campaign was saying over the summer and successfully win the white house was really never going to work out when you look at the rnc's grassroots campaign and what the trump campaign has been doing. the polling is tightening now,

more people start paying attention to presidential elections after labor e day. two months away after labor i day. for joe biden to not go to michigan where in the spring when he was there he had that confrontation with the detroit auto worker who questioned him about his second amendment stance shows that joe biden wasn't so interested in actually earning the votes of the people who voted for trump in 2016 over president obama, the presidential cycle before. so if you look at what they're looking at, the rnc has been knocking on a million dollars a week. the biden campaign has been knocking on zero doors per week. you can't win elections digitally. you have to get on the ground and actually talk to these people. president trump has been campaigning for months. mike pence, the vice president, has been in battleground states for weeks on end. he just did a bus tour of pennsylvania. you have to have a ground game. hillary clinton was dependent on

polling, they didn't visit with the very people they claimed to be standing up for, there was no interaction, and certainly that's what they're trying to recuperate in the next couple weeks by getting biden on the campaign trail. stuart: but that's fraught with danger. >> of course. stuart: the danger is a senior moment, a lack of focus, forgetful or an insult. what was that about the dog-faced pony or something like that. >> yeah. stuart: there's real danger here. democrats, i don't think, really want him to get out. they realize he's got to because trump's out and about everywhere. it's fraught with danger. >> you know, stuart, you can look at their strategy -- keep an eye on kamala harris because last week during the rnc she was the one sent out there on thursday to give a pre-rebuttal to president trump's speech. i bet they'll be sending her out more on the campaign trail than joe biden. he will be giving a speech in pennsylvania today. i'll be curious to see if he

takes any questions from the press. he's been hiding from the press. you're absolutely right, every time joe biden has gone out on the trail, he makes these big gaffes, these big mistakes, and he insults the voters they're trying to court not only to get them to vote for biden, but to prevent them from voting for president trump. so this is a risk for them, why joe biden is conveniently in the basement. they really are nervous about what he's going to say, and this is also why he got such rave reviews for his convention speech, because he didn't do any of those things for the first time in a long time. whether he can consistently maintain that is another question. stuart: 64 days to the election, it seems to me there's a shift in terms of momentum and sentiment, and i think it's shifting in the president's favor. i'll leave it at that. that is my opinion. maybe that gets in the way of objective judgment, i don't know. welcome back to you, katie. >> the numbers back it up. yeah, good to see you. see you soon. stuart: see you soon. all right, back to your money.

lots going on today. look, you can see it on the screen this, we've got an up move for the nasdaq, up move for the s&p, but we're down 150 on the dow can. look at this, apple and tesla. both of them hitting new all-time highs. man, that's real momentum there. tesla's up 8.9%. good lord, 8.9%some. >> incredible. stuart: and apple up nearly 4%? that's extraordinary. that's the dominance of market story of the day, apple and tesla. the biotech company novavax getting a boost after making a deal with the canadian government. their going to supply 76 million doses of the coronavirus vaccine. gilead expanding treatment of remdesivir. kristina, wrap this up and tell us what that means. >> that means that previously it was only the successest patients that could get -- sickest

patients that could get remdesivir, and now anyone that has covid-19 and enters the hospital could get access to this treatment. they know it's in initial trial. they found that the patients recovered faster than with a placebo. the stock from gilead sciences has climbed higher in excitement of this treatment, however the fda blocked the application of another drug, it was an arthritis drug. that didn't go through, but it's very important to point out that it's still not clear about the full benefits of using this treatment. gilead sciences even admits that the benefits are still uncertain, but the fda believes the benefits outweigh the risks. stuart: that's the whole equation, the been fits outweigh the risks. good stuff. kristina, or thank you very much. check other companies efforting, as they say, a vaccine. never liked the word effort becoming a verb, but they are efforting a vaccine. johnson and johnson, pfizer, moderna.

two of them up, one of them down. noer the no -- moderna down 7%. okay, the other big stock story of the day, apple and tesla's stock have split, now they're hitting all-time highs. you got anything more? >> tesla up a ridiculous 8.5%, but take a look at the options market. we know that calls, which is basically these option tools that investors use to, when they believe that the stock price will go up, they're already predicting $500 a share for the stock after the stock split, the five for one, and that's pretty much where we are at this point. in fact, it's been a record low for those betting against the stock price, those that continue to think the stock will go up for tesla. don't forget, tesla are, despite the fact that you have these record high valuations levels, it's still the most shorted stock in america. $25 billion worth of wall street is betting that tesla will fall from these levels whereas the

second most shorted stock is apple at $14 billion. now, i was looking at some of the analyst calls on apple given that we have a four for one stock split on apple, the fifth in its history, six years after the last one in 2014, and webb bush, of course, the analysts have been trying to -- they're still calling it a bull case here of 175 for the stock, 150 is where he expects apple to start trading at some point. stuart: so you've got all these people betting that apple and tesla is going down -- >> yeah. stuart: and suddenly it goes up. >> it's called a short squeeze. stuart: it's a short squeeze. those people who bet it's going down, they've got to buy the stock to cover the loss. limit the loss. >> but also, you can also say that the shorts are ahead, an insurance policy against the betting that the stock will go up. because what happens if something happens? let's say the iphone's delayed. i'm not saying that'll happen, but they need to cover their

basis for insurance policies, and that's why they buy these short positions just in case. stuart: ap awful lot of people having to buy long -- look at it now. okay. you've got more here. what about wal-mart and microsoft, they want to acquire tiktok. >> yeah. stuart: both stocks are down. i think the chinese government is chucking in some roadblocks. >> yeah, and that's a concern. look, this deal isn't off, but there are complications for wal-mart and microsoft, and that's why they're down today. china announced new rules on friday evening that requires chinese companies to get approval before transferring over any technology which, yes, does include technology that tiktok uses. it doesn't derail it. "the wall street journal" reporting that tiktok had intended to sit down in exclusive final talks with either the microsoft/wal-mart group or the oracle-like consortium, but it's also a signal from the chai i news government that we want in as well. why should the u.s. president and the white house dictate

everything, and given that this is a forced tiktok sale because of a president trump ban, now trump has said in the past that he wantses a cut of any deal, and that flow into the u.s. treasury. but we're not sure what that looks like, does he get a percentage, a fee e? we do know that the price should be around $20-40 billion for those four renales, but when we get a deal, hopefully before september 15th, because that is the deadline. stuart: you think it'll be wal-mart/microsoft probably taking tiktok. >> i say there will be a deal probably in the middle of this month which is when the executive ban goes into effect. stuart: at the moment i think the market disagrees with you. >> disagrees that there will be a deal? stuart: yeah. >> i wouldn't say that. it's run up so much, microsoft and wal-mart run up 6, 7%. microsoft was believed bitter but, no, i wouldn't say that. stuart okay. [laughter] only time will tell. >> can we talk more about

options in the future? that was fun. stuart: no. [laughter] talk about shorts and short covering. >> yeah. stuart: take a look at the rest of big tech just for the fun of it. amazon just hitting another all-time high. very close now to 3,500 on amazon. and facebook getting closer again to back to $300 a share. doing welled today. pop on microsoft. let's see how the dow's newest additions are doing, salesforce, amgen, honeywell. they went into the dow today and all of them are on the downside. not much, but they're down. in sports, the nba reassumed this weekend after a brief pause. remember, the milwaukee e bucks refused to play, protested the shooting of jacob blake. other teams followed. but now one athlete is blasting the nba, that's ufc champion colby coveringtop. he says the players should quit their multimillion dollar jobs and try being a police officer. colby is on the show today.

senator rand paula rahed after he left the white house thursday night and so, too, was economist stephen moore. we've said this frequently throughout the show, he was spat on. well, he's on the show and going to explain exactly what happened. he's next, by the way. we'll also ask hum about nancy pelosi rejecting the latest $1.3 trillion stimulus package. she wants the gop to agree to much more than that. it's east all or nothing for the -- either all or nothing for the speaker. third hour of "varney" just got started. mug. ♪ ♪

♪ ♪ you can go your own way ♪ go your own way

your wireless. your rules. only xfinity mobile lets you choose shared data, unlimited or a mix of each. and switch anytime so you only pay for the data you need. switch and save $400 a year on your wireless bill. plus, get $400 off when you buy the new samsung galaxy note20 ultra 5g. >> he's willing to turn down $1.3 trillion of help that goes to

the american people because she would rather them have nothing than to give way on what her fantasy -- >> that can't be. >> she said 2.2. she said don't do anything at all, chuck. i said, what does the 2.2 represent? you know what her response was? i'm not going to tell you. let me fill in the blanks. that's not a proper negotiation. stuart: okay. this is all -- that's mark meadows, president trump's chief of staff. he said, look, nancy pelosi rejects everything. it's all or nothing. it's either my 2.2 trillion deal or nothing. stephen moore is with us. he's a member of the president's council -- economic recovery task force, i should say. stephen, good to see you again. >> it's good to be with you. stuart: now, you don't think that the $1.3 trillion is -- you don't want to see anything, do you? >> well, $1.3 trillion, that's a lot of money, and it is true that, you know, the white house

and the democrats have agreement on a number of things. they want more money for hospitals and coronavirus expenses for states, they want -- both the president and pelosi want these additional $1200 payments per person. they want to get that money out quickly. the big holdup right now, stuart, is the blue state bailout. and that's the issue where, you know, the white house and the democrats are not even close. the republicans have offered somewhere in the neighborhood of $150-200 billion which is a lot of money given that the states still have money from the last round, the cares package, that they still haven't spent. pelosi wants closer to $900 billion for states and cities. and that's, i think, the real standoff right now. by the way, republicans would be crazy to give $900 billion to illinois and new york and crag and new jersey and these blue states that have acted so

fiscally irresponsibly. but i don't think there's a lot of public support for pelosi's position which is give me everything i want or i'm going to walk away from the table. that's not a negotiation, that's a -- what she wants is a surrender from the white house. stuart: do you think they'll -- at the end of the day, whenever that is, do you think there's any kind of stimulus package coming down the pike at all? >> i do. i do. i think they will reach an agreement somewhere in the neighborhood of $1.5 trillion. by the way, don't forget, stuart, that's on top of the $2.5-3 trillion we've already spent. so we're talking about enormous sums. and i think it will involve individual payments. i hope it includes the payroll tax cut which, as you know, is something that aye been a big advocate for as well as art laffer. so i think in the next few weeks you'll see sounder minds prevail because, look, those democrats in those districts, remember, democrats won about 20 seats

that are republican districts where those voters want to see a deal, and pelosi's basically stonewalling. so i do think there will be a deal, and i think that must mony will be flowing sometime by early october. stuart: you bet your life -- >> not a lot of time. stuart: now, here's what i reallyre waltalan tan talboutut. uyo hads tsideo, reoanandaul p t attkettacdacfter aft aft lvie itewh hitouseitnd andnd pdent's spee ochnchnyrsrsight n. you' trengng us uyout youert e e atsedsell. i w way thwarowahh it, be tuseusoo mo this iha amer hicasericasom to t t, and i th k it'sppalling. .e meour story. >> s i whiteouseou on thudayight figorhtighe ee stu stu d, by thy thay, thi, a a casualty, i guess, of coming on the stuart or varney show, because what happened is as i -- i left a little bit early because i had to do a bunch of media including fox the next morning. so i e beat the crowd out, and as i exited the white house, the security person who opened the gate for me said, hey, be

careful out there. and i was kind of taken back by that. i didn't know quite what i -- what he moment. i hadn't realized that there were these protests going on. i parked about a eight blocks away from the white house, and after i got outside that three or four block perimeter where the police had, you know, a lot of patrols and a lot of law enforcement people, as soon as i got out of that area, i -- and i was by myself. i probably wasn't very smart, stuart. i walked into a black lives matter rally. i didn't even realize what i was getting into. and instantly a couple people, i i think, recognized me probably from your show, stuart. and they came up to me and in a very menacing way -- now, stuart, i want to be clear, i was not assaulted. i was afraid. they kind of surrounded me, and they were, you know, shouting obscenities, you f-ing pig and that kind of thing. and they were, you know, they

had a kind of deranged look on their face. and by the way, the interesting thing, stuart, these weren't blacks, they were whites, the ones who came up to me, young people in their 20s and 30s. and finally -- and there's a happy ending to the story for me which is that a police officer was down the street about a block away came and kind of escorted me out of there. so, stuart, i do believe blue lives matter because those police do an amazing job. but it's not just me, stuart. i have four or five other friends -- stuart: oh, yeah, yep. >> -- who have very similar stories. it was escalating. stuart: were you spat on, steve? >> sorry? stuart: were you spat on? >> yeah. you know, and just -- and they were following me in a very menacing way. i kept kind of looking over my shoulder. you know, if you've ever had that experience if you're walking down a dark street, somebody's standing right behind you. i was very worried. it didn't take much for somebody to start throwing a punch and, of course, i was completely

outnumber. but you've got to be safe out there. it's a very dangerous situation, and i'm still waiting, you know, for a lot of these democratic leaders to start denounceing -- stuart: yeah. this is happening on our streets, gross political intimidation and violence. it's outrageous. it should be a political issue, and i hope it is one day. stephen, we're sorry about what happened to you. i hope it wasn't because you appear on this show and everyone knows who you are, but thanks anyway. we appreciate it. >> thanks. i survived and, you know, it only hurts the liberal cause. i mean, you know, i am the biggest advocate, stuart, of first amendment rights to file your grievances and have peaceful protests, but i want to see liberals and democrats condemn the violence in a much, much more effective way because it's getting out of hand. stuart: you're right. steven moore, hope you don't mind, but come back next week. [laughter] >> take care, stuart. stuart: president trump heads to

kenosha tomorrow, wisconsin, of course. the white house says members of the community there are welcoming him, but the governor says, no way, stay away. tell me more about what the governor's saying, kristina. >> that's exactly it, you're not welcome here, that's the message from tony evers, the wisconsin governor to president trump. he's urging him not to visit kenosha. that's because it's at the center of racial unrest this moment after the august 22nd shooting of jacob blake in front of his three children. in a letter from governor tony evers to the president he wrote, and i quote, i am concerned your presence will only hinder our healing. i am concerned your presence will only delay our work to overcomedy vision and move -- overcome division and move forward to work together. joe biden accused president trump of recklessly encouraging violation. he said that in a statement on sunday. so as you mentioned, the president still plans to head over to kenosha tomorrow,

tuesday, and this coming from the white house, quote: to help the great city heal and rebuild. and this comes as businesses have been vandalized across the board in that city. back to you. stuart: we hear you, kristina. thanks very much, indeed. show me amazon, please, because i think they're doing well. yes, they are. up $55, 1.6%, and here's one reason why. they got the green light from the faa for their prime drone delivery fleet to take action. it clears amazon to begin its first commercial delivery trials in america. maybe that's one of the reasons why the stock hit the all-time high. amazon is the third company to win faa approval for drone delivery operations joining alphabet-owned wing and ups. the drones are coming, looks like. coming up, georgia governor brian kemp, he took an awful lot of heat when he was one of the first to truly reopen his state. now georgia's looked at as a

major success. maybe the governor can give some advice to new york, to new jersey, to illinois, to california, to connecticut. [laughter] i'm sure that advice will not be well received. america's big tech companies now worth combined more than the entire european stock market. five companies worth more than all of that one. how is it -- how come it's doing so well? i'm asking jason kent next. ♪ ♪ ♪

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♪ stuart: uh-oh, look out below, we're now down almost 30 points on the dow -- 30 points. there's some big losers among the dow 30, microsoft, boeing, wal-mart, morgan, goldman sachs, they are down stocks, and they are down sharply. in contrast, look at apple and tesla. they're both split their stocks effect i as of today, and both are zooming. tesla's up 8%, apple's up 2.8%. both record highs. which can out, quickly, the new members of the dow 30, salesforce, honeywell, amgen. all of them are down. they went into the dow as of today, first trading day inside the dow industrial average.

back to the markets. we have a guest with us who says investors are betting on an economic recovery. that's why we've gone up so much in august. jason katz is back with us. managing director at ubs. seems to me, jason, that this economic recovery is fueled by federal reserve money. where am i going wrong? >> i'm going to call you captain obvious. [laughter] yes. stuart: okay. >> we all overcomplicate this issue. the fed has always been and always will be the most important driver for risk as assets. powell made it abundantly clear the other day that we're staying low for long. think about the historic shift from targeting inflation to averaging inflation. that means by definition the fed's going to keep rates low, and inflation could very well run a little bit high. monetary stimulus here in the u.s. is 40% of u.s. gdp and over

60% of global gdp. the path of least resistance, the money has found its way into equities because in a low rate environment, you have a greater support for valuations. a low discount rate, stuart, basically translates into a higher premium for future earnings in equities. stuart: so if the fed keeps on printing, there's not much danger of a huge long-term pullback, is that right? >> i'm not going to suggest that because, of course, you can create asset bubbles. i think what you can create in an environment where rates stay too low for too long is complacency. that all being said, i do think you're going to see some of that money that's found its way into tech to find its way into cyclicality, to areas of the economy that will, in fact, improve as we get through covid and come to the orr side of it. stuart: we're just astonished that the five big u.s. tech

companies are worth more than the entire european stock market. is that a bubble? real fast, jason, is that a bubble? >> for those names, perhaps. but i'll do you one better. the 495 ore names, stuart -- other names are actually down. so right-size those positions, don't get rid of them. they've revolutionized the way we work and play, but you want to find places where there's a little more cyclicality to your investing. stuart: this is captain obvious saying good-bye. kind of like that, captain obvious. let's go down south to georgia, why not? the peach state. they were the first state to reopen during the pandemic, as the pandemic was beginning to wind down. at the time they were harshly criticized. people were saying, hey, governor, that's a reckless thing to do. now, they've got one of the best recoveries in the country, and joining us on the phone, brian kemp, the governor of georgia

himself. governor, do you feel vindicated? >> well, stuart, look, i'm not too worried about them. i've been working hard to save lives and livelihoods down here in the great state of georgia. thankfully, trends are looking great. our case level's down, hospitalizations are down, our percent positive continues to decline and, thankfully, we're seeing, you know, for this time and this pandemic the economy here, we had the third largest july revenue numbers in the history of the state. we've had a great month of july and august with new investments, aaa bond rating. so we're fighting two battles right now here. stuart: would you say that new york, new jersey, connecticut, illinois, california, do you think they should do the same thing, just bite the bullet and open up? >> well, i believe we can do both. i know that's what we've been doing, protect -- as i said, lives and livelihoods but not

just that. protect people but also their a paychecks. i believe that we do that by empowering people. we've worked with our business community and our public health folks to make sure that when we opened, we dud it safely -- we did it safely. we've had great public health guidance. we've asked people fob part of the -- to be part of the solution, not part of the problem, and georgians stood up and did that. i don't think you can do that with big government mandates. so that's what we're continuing to do here in georgia. stuart: governor, congratulations. you've clearly broken out, broken free, and that's a wonderful thing. thanks for being on the show, sir, and we will see you again real soon. thank you, sir. >> have a great day. stuart: got a big change at united. i've got airline news. the stock is down, or but they've made a major change in their fees, change fee. what's the story, kristineing that? >> the change fee is worth $200. so normally when you switch your

ticket, you have to pay that $200, plus the difference between the old and new price. they're getting rid of that $200. so what's the catch? this is applicable to domestic flights only, it is applicable to ticketholders in either premium or you have standard economy, but it is not applicable to anyone who goes for the cheapest ticket price which is basic economy. you do not get this $200 waived. and this means, too, that united will be saying good-bye to at least $625 million, that's how much they a made last year in those change fees. delta is considering this as well. i'd like to out that -- point out that southwest never charges a change fee. stuart: when you take $600 million out of your revenue stream, your stock goes down. that's exactly what's happening. >> exactly. stuart: last week i'm sure you knew this, the milwaukee bucks decideed they're not going to come out of the locker room to play the orlando magic. got it. the nba officially returned this

weekend after agreeing, the league and players, will continue to work on social change. however, the one athlete who's really blasting the nba, that's ufc champ colby coveringtop. he says these players should try being a police officer. colby makes his case on this show next. ♪ ♪ it's easy to get lost in the economic uncertainty. the volatility. the ambiguity. the moment calls for more. and northern trust delivers more. with specialized expertise. proven strategies rooted in data and analytics...

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stuart: i want to get straight at this. ufc fighter colby covington ripping the nba for protesting the police. colby says they should quit, the nba players, they should quit their multimillion dollar privilege jobs and try being a police officer. radical stuff. colby is with us. colby covington is with us in the flesh. there he is, right-hand side of the screen. do you have any sympathy at all for the social justice movement

in sports? >> no, i have no sympathy for them, you know? guys like lee -- lee bronx they're just looking for woke points. they're not looking to really make change for america, looking to really come out and put their lives on the line and make a better america, they're just looking to get woke points and have china, you know, give 'em a pat on the back. finish. stuart: what was the response when you came out with that statement? what kind of response did you get? >> yeah, the response was overly positive, you know? a lot of first responders were coming out and giving me support. so, you know, i'm very thankful and appreciative of that because those are the people who uphold law and order every single day and make sure we have a safe country, you know, and protect us from criminals. i was very appreciative to all the leos out there. stuart: but the whole idea of politics in sport whether it's baseball, whether it's basketball, whether it's the

nfl, wherever it is, do you want to get politics completely out of sport period? is that what you want? >> no, i'm not saying that because i think that there can be some good things in political points. but there's also a point where it's good versussed bad and right versus wrong. and what these players are standing for right now, they're standing for wrong things, you know? they're not standing for america. they're standing for a communist movement. they're not standing for a capitalist movement. these are all overprivileged athletes like lebron who are protected every single day and his family's protected every single day under police enforcement, but now all of a sudden he wants to paint a target on their a back? it's hypocritical. i'm going to call out the hypocrites like lebron. stuart: okay. look, separate from that dispute, how's your sport doing? mma, how's it going in the era of the virus lockdown? no crowds, that kind of thing. how you doing?

>> yeah. the ufc's doing really good right now. the ratings are up, and, you know, nba ratings are down, and mlb ratings are down, and i think there's a reason for that. i think that people are seeing that, you know, ufc, you know, we're not getting too much into politics, and we're not making this about one life matters versus another. we're out here, we're putting on entertainment for the fans consistently, and we're trying to deliver for the fans during this pandemic and tough time and trying to give people, you know, real sporting vents instead of making it all politicized. stuart: okay. have you been in a fight, a ufc fight, since the pandemic broke on us in march? >> i have not, but i will get to get back into a fight september 19th live in las vegas on espn, and i'll be fighting for america. it'll be capitalism, me, versus tyrone woodley, communism. stuart: that sounds interesting. will you have a live audience? >> unfortunately, there won't be a life audience. a live audience. you know, we have to adhere to

the new protocols and guidelines in america and respect social distancing and, you know, and have masks at all times when we're weighing in in front to have each other. but i promise you, the show's still going to be good. stuart: what was that again, september the 19th in vegas? >> september the 19th, las vegas, nevada. maga v. us maggot. [laughter] stuart: say it how you see it, young man. [laughter] colby, look, thanks very much for being on the show. we appreciate it. forthright, blunt, to the point. we like it. thanks for being here, sir. appreciate it. >> thanks for having me. stuart: you got it. now, show me that graphic. fox business alert, it's worth it. jpmorgan now telling investors they should expect a trump victory in november. are thaw saying it like that? >> they're saying that trump he reelection chances are on the rise, and this is owing to two factors here, that's the impact

of the degree of violence and protests on public opinion and also on voting patterns and, two, the defiance in polls due to trump voters being more likely to decline or mislead polls. we saw that in 2016 as well. stuart: yep. >> but i was looking at the trend lines in this jpmorgan report, and this is a man who's worth listening to. what he's saying and the trend lines are saying it's not that trump's chances are rising for re-election, it's that biden's betting odds of winning are going down. stuart: that's truement i follow the betting markets, and that's exactly what's happening there. biden's chances of winning are going doing. >> right. stuart: jpmorgan's pointing it out. >> that also means president trump is closing the gap, right? >> stuart: yes, yes. >> he has momentum on his side. stuart: sure looks like it. it does. thanks, susan.

all right, two big names, we watch them all the time, you have to. elon musk, working on a computer chip that could be um planted in your brain. that's very interesting at the very least. warren buffett, he's putting his money into japan. susan is here to tell us why we should care. let's take another look at empty sixth avenue. we do it every day. this is our signal of when and if new york's going to come back like it's old self. right now it's not. we'll be back. ♪ give you my world ♪

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what do you think? i don't see it. only pay for what you need. liberty. liberty. liberty. liberty. ♪ stuart: warren buff dependent, 90 years, he celebrated his birthday over the weekend, and he's investing in one country. now, we've already told you that it's japan. so why don't you lay it on thick, susan. [laughter] >> it also shows maybe there aren't that many opportunities here in the u.s. for the oracle. japanese trading companies 5% in five different names, mitsubishi -- [inaudible] you will pronounce those later as well. buffett berkshire says it's holding these investments for the long term and may be up to maximum 10%. this is contrarian given that

global investors have been doing the opposite which is pulling $43 billion from japanese stocks to invest in high-flying u.s. tech stocks here instead. but berkshire has underperforms the s&p 500 over the past decade, i can't believe that from the oracle of omaha, but this eau owes to the fact that companies like kraft hinds have not grown as much as the broader markets especially when it comes to tech names, and that has left buffett with a lot of cash $146 billion, so the japanese investments under exposure to commodities as well. dominion oil, he needs to find growth somewhere, maybe outside the u.s., and it's been well saturated and we've seen a lot of performance, right? maybe he's not finding value here anymore. but why doesn't he use that, cash pile, i mean, dare i say it, to give back to shareholders? stuart: oh! >> like he has an issue in dividends, but i think he can learn from apple which finish.

stuart: i wouldn't invest in berkshire hathaway to get the dividend, i'd look for the capital gain, and if they haven't got the one a i'd like to see, okay, i'm pleased to see him investing in a whole new area -- >> what do you think is buffett's number one holding? >> i've no idea -- apple. >> 140 billion. stuart: oh, good lord. i've got one more for you. elon musk working on that chip to put in your brain. >> think of it as a fitbit for your brain. it tracks what your brain does and figures i out what's missing. it could help with the brain's signal. musk has a computer chimp that could help, say, fight blindness in the future, memory loss and other medical conditions, and they're hoping for a simple proceed your to just sew it in with robots, think of it as a routine lasik eye surgery -- stuart: that's way down the road, obviously, but elon musk has such a track record with looking way out there in the future, identifying something that's really going to to be --

>> futurist in. stuart: -- and getting into it himself. >> way ahead of the rest of the market. spacex was done in 2002, and tesla was done in 2003. spacex is now worth $40 billion, and tesla is $400 billion and counted today with an 8% rally. stuart: there was a pig on the show. >> gertrude. stuart: it was a demonstration. >> that's right. people thought of a live demonstration, okay, it's going to go into a human brain, not gertrude -- stuart: all right. more "varney" after this, and that's a promise. or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. i'm a delivery operations manager in san diego, california. we were one of the first stations to pilot a fleet of electric vehicles.

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stuart: as we close out i got to tell you that the dow is down 216 points but even with that loss if it closes with that loss, it is still the dow's best august since 1984. that tells you a lot i believe. here are susan's two favorite stocks, apple and tesla. what an extraordinary performance. amazing, isn't it. susan: stock split monday. look at performance after the fact it got cheaper. stuart: apple obviously got cheaper from 500 to 128. do you think making it cheaper brings the small investor? doesn't change the value of company. susan: most of gains since announcement in july. tesla is up 60% since the august 11 announcement. stuart: that blows me away, on

august 11, ladies and gentlemen, tesla announced five for one stock split. the stock went up 60% since then. it is up again today. i never seen anything like that. i've been around a long time. susan: yes, you have. stuart: coming up that time. three seconds left. my time is up. neil, it's yours. neil: stuart, thank you very, very much. we're watching a whole new dow doing a whole new thing. we would have a very different do you, my friends, down 220 points if we kept things exactly as they were on friday that was before the apple split which made it obviously as a price weighted index much more reliable on apple last friday than it is today. our charlie brady our stocks editor, he is wicked smart on this very subject, was reminding me that alone is making a big difference. apple is 2.9% of the dow today, versus 12.3% of