maria: big thank you to jackie deangelis and lee carter. the market is moving on inflation data, see you again tomorrow. have a great day. the industrials on 101, sending it to "varney and company". ashley webster in first do. can you believe lumber is a 300% year-over-year and corn is up 127%? over to you. ashley: london prices adding 36,$000 for the cost of a new home. thank you, good morning everyone. i am ashley webster in for stuart varney today.

the colonial pipeline delivers 40% of the fuel consumed on the east coast but a cyberattack has shut it down and now we have this, long gas lines, panic buying across the southeast. we have a live report from virginia plus the governor of georgia, brian kemp, declared a state of emergency and temporarily waived the gas tax. he will join us on the show. market futures once again in the red, this follows the dow's worst day since february and new data out this morning showing inflation accelerating at its fastest pace in 12 years for april, the dow, 100 points, the s&p and the nasdaq solidly in the red. take a look at this exclusive video. hundreds of migrants crossing the border over the past two days. someone might want to show that video to alejandro mayorkas who keeps trying to tell us the border is closed. clearly it is not. one high school in san francisco wants kids to return

to the classroom with just one day. the reason so they can collect $12 million in state funds. and a word pathetic but pathetic, the next 3 hours ahead, we have kt mcfarland, bret baer and martha maccallum and so many here. it is wednesday may 12th, "varney and company" is about to begin. ♪♪ just enough ♪♪ for the session ♪♪ ashley: you can't get enough of stevie wonder. one of my favorites, superstition. a beautiful morning in new york city. let's get to the markets. we look at the futures again, more red ink, the dow off 120

point, kobe s&p 100 quarters of a%. the nasdaq down another 100 down one.5% and look at the big tech names, apple down 124 to 123 yesterday. big tech bounced back a little bit at the end of the session yesterday but looks like another leg down to begin this day wednesday. let's bring in chicago lonnie, good friend of the show, always with great advice. is this a buying opportunity? are you looking at big tech? as it heads south again will you take a nibble? >> yes absolutely. not in terms of all-time bargain-basement prices but anytime you see the nasdaq as it was from its week all-time highs to yesterday lows down

7.75%, looking at big tech, i like all of them, some have a little more to go and the market continues to sell, what we are seeing is partly because of the spike in inflation, investors are nervous and we are seeing a liquidation of some large funds. assets under management being shuffled out the door causing a lot of pressure, that is creating opportunity. the next couple days when the settles out there will be tremendous bargains from big tech. ashley: 30 seconds, does inflation and the rapid rise give you pause? will the fed be under more pressure to do something? >> that's the presumption that they will not be under pressure. only what the market expects the fed to do and the fed told everybody what to expect. we are not going to do anything. average inflation a couple years so doesn't matter if we see a spike right now.

they will move the target so there's nothing the fed is going to do that investors need to worry about. ashley: very good, stay right there, shaw gilani, widening across the east coast, people continue to panic by with the colonial pipeline shutdown. edward lawrence is in a gas station in alexandria, virginia. the question is how high could gas prices go? >> reporter: good question. aaa is looking at the price, they jumped almost overnight. this gas station was out of gas yesterday. they got a shipment overnight. a steady flow of cars coming in. there have been lines, every pump is taken up but no line. 50% of the gas stations in virginia are without gas. that is happening from dc to florida and stations that do have gas are seeing lines and the demand spike. video from north myrtle beach, south carolina from yesterday,

this pipeline stretches from texas all the way to new york. it carries 45% of the fuel for the east coast. what happened, people hear about the pipeline being shutdown they are running to the gas station to get as much gas as they can. charlotte, north carolina, 71% of the stations are without gas right now so all of this is because the hacker group that shutdown the colonial pipeline, the senior vice president for the american petroleum institute says cyber security is a top priority for the industry. this is a shot in the gut for every private sector. this is what he had to say. >> the government and the private sector were working very closely to ensure that these type of risks are minimized and these types of events do not repeat themselves.

>> reporter: his work is with the epa to make sure others in the industry supply gas to this area being trucked into these areas. the epa issued waivers, one yesterday and one today for states you see on your screen and those allow them to use any type of gas in this area to get gas so people have -- can get around it and buy it in the station. ashley: what a mess. thank you very much. let's bring in shah gilani, what does the market mean at all? >> it brings core inflation into the headlines. we see gasoline, the average north of $3, the highest we've seen since 2014. that puts the whole rise in expectations of further inflation in front of the public and markets reflect that as they are selling off. that is what higher gas prices mean.

ashley: shah gilani, thank you for joining us, great to see you. staying on the colonial pipeline, that pipeline may have been using an outdated version of microsoft exchange when it was targeted. let's bring in susan lee. is this what made the pipeline vulnerable? >> there were warnings about this during the solar wind hack and warnings last year the pipeline operators like colonial were born to about potential hack attacks. the new york times reporting most likely the darkside ran somewhere attack and attack the vulnerabilities, but there are several other issues at play, overall lack of cyber security precautions according to the expert so wake-up call america needs to protect its critical infrastructure. i include the country's largest pipeline. the colonial pipeline send more oil each year, 105 barrels in

germany's entire fuel consumption so why wouldn't you think about protecting that? ashley: interesting analogy that shows how big the operation is on the colonial pipeline. let's get to inflation. the april cpi up 4.2% year over year. the biggest annual gain since 2008. let's bring in peter morici. i kind of wonder how much is this being inflated because we are using 2020 as a base and we know the economy was almost dormant because of the pandemic. is that a play a little bit here? >> reporter: absolutely. we had low gas prices this month last year but the month over month numbers are very disturbing. we are seeing price increases that cannot be dismissed as transitory because the kind of price increases that will compel people to ask for more money.

compounding that with what is going on in the gasoline market even below colonial shutdown president biden's policies are inflationary, they duped the fed pre-janet yellen into thinking they could print as much money as they like and it won't have consequences. the consequences have arrived. when they talk about averaging inflation over several years they were talking about we will get 2.5% for a wild to average out the one.5% and that kind of thing but what do you do when you get 4% or 5% inflation? consider florida with all those retirees. they get very little interest on their money at the bank and clobbered by inflation on the value of the balances. this is an extraordinary tax on the elderly. they will be hearing about this from a lot of places. also inflation like this is toughest on the board people that are supposed to be mister -- mister biden's principal concern and constituents. good luck on that. what you are about to see is

this printing press economics basically being pushed by a council of economic advisers, this new monetary theory, blow up in the oval office. ashley: i have a minute left and went to pick up on that point. stuart varney has been saying this, you send all this money in the form of stimulus to people who are not working and can't find work and then prices go up. in fact all of that money is creating the inflation that hurts those that can least afford it. >> absolutely. there is enormous demand for things people would not normally buy if it were not for the fact that they have this extra cash. the second thing is what we buy and use has shifted which is creating lots of brittle points in the supply chain. some of that will resolve but this is such a large impulse it is ludicrous to think, and the federal reserve chairman, powell, has offered no evidence

to indicate that he can categorically say this is just a burst. ashley: he is convinced, later in the year, we shall see. peter morici, thanks for joining us. >> take care. ashley: now this. mortgage applications rose 2.one% last week as we saw a brief drop in mortgage interest rates, refi applications were up 3% from the week prior but that is still 12% lower than one year ago. we are dealing with a border crisis, gas shortages, cyber security breaches and rising tensions in the middle east. four months into his presidency joe biden has plenty of problems to handle. meantime joe rogan things covid lockdowns of ruined places like new york city and los angeles beyond repair, take a listen. >> some sections of la, don't know if they will bounce back,

you drive down the street and everything is boarded up. how does this come back? ashley: good question. people are fleeing to read states because of it. more on that angle coming up. one more check of the futures before we head to the break and you can see we are in the red. the nasdaq down one and one third%, the dow up 117 points. more varney right after this. ♪♪ ♪♪ (vo) the rule in business used to be, "location, location, location."

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temperature at 6:17 a.m. 60 degrees. mount hood in the distance. let's look at the 10 year treasury yield, it is up 3.8 basis points to one.65, seven%. >> it when verbal after inflation number 3:30 a.m. 160 at the start of the morning but it looks like inflation expectation means and move up and treasury yields, people anticipate the fed might have to do something to contain the inflation we have seen since 2008. yesterday was a weird session because we did see what we did see, expectations of higher inflation and that usually, that is a weird come back to end flat.

i would say the inflation numbers issue a new generation. the younger millennials, we haven't seen 4% or the volcker days when you were paying 13% on your mortgage rate. ashley: that was a steel. they are like what is that? all right, thank you very much. let's bring in big tech to talk about big tech and bring in dennis scotsman. not always a fan of big tech. he always says i can't drop it on my foot and hurt myself. looks like this is your moment, dennis. what are your thoughts? >> big tech goes lower, the problem is inflation. they made an egregious mistake in being as expansionary as they have been and as chairman of the endowment fund i had to fight with committee members but we took a position in late

february, buying 3% in gold and moving 3% of the fund out for equities that looks like a bad decision but now it looks like i got fortunate, wise and lucky. inflationary pressures are incumbent for a long time as long as the fed remains as expansionary as it is and that is very deleterious and will put pressure on stock prices generally in real pressure on high tech stocks for the foreseeable future. that is a terrible mistake in judgment, the fact they said they were not thinking about thinking about monetary policy for the foreseeable future means they will remain expansionary. you want to avoid equities if you can. ashley: congratulations, you put some in gold and keep the rest in cash or do you put it somewhere else? >> as an endowment we have no choice but to move 3% out of equities is a big move for an endowment to make. that is normally 60% stocks, 40% equity to move 3% into gold

and out of 3% out of stock as far as the endowment is concerned. if you're the public you can do something more dramatic, you want to be in cash, 5% or 10% of your portfolio and you want to -- if you have to own stocks, the same thing i said for a long time, it is incumbent on economic activity. i want it to own railroads, ships, general tires and things like that, god bless those people who had fun with high-tech the last few years but is beyond my ken. ashley: you've been proven right. we have to have the brains behind that. dogecoin coffee cats, - -- the

same thing anyway. all crypto transaction fees are spiking because of dogcoin and the copycat mania. there's only so much bandwidth to trade and sell crypto and when volumes spike because of the demand that jacks up the price that gets that bandwidth, the dogecoin rally, a lot of new instruments looking to get a piece of the action. coins are based on a group of investors getting together to create value in centralized community building. you have the new sheba in you based coins, you have keisha, doge -- the list goes on and on. as a result you have the world's largest crypto, the ceo tweeting money out of state, you have never seen this before and not endorsing the investment. if you play, know the risks.

ashley: it started as a joke and is heading in the same direction. anytime you have accordion there you've got to ask questions. there is a lot of money. that is the limit. we are going to talk to andrew left shortly about all things crypto. he is a well followed gentleman in this world. futures are down as we head to the right, we get to the opening after the break. i want to mention the governor of georgia, brian kemp, is suspending his state's gas tax but he had enough when people are struggling to find gas. look at the lines. we will ask the governor about that in the next hour. we will be back at the opening. ♪♪ the world's first fully autonomous vehicle

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did you know that geico's whole 15 minutes thing... that came from me. really. my first idea was “in one quarter of an hour, your savings will tower... over you. figuratively speaking." but that's not catchy, is it? that's not going to swim about in your brain. so i thought, what about... 15 minutes. 15 percent. serendipity. 15 minutes could save you 15% or more on car insurance. ashley: breaking news. house republicans have voted to oust the presented of liz cheney as conference chair, she says she will do everything she can to ensure trump never again

gets near the oval office. chad program reporting from fox news it happened to the voice vote and chad will becoming up on this show shortly to give us the latest. liz cheney out as the republican conference chair. let's take a look at bitcoin and bring in andrew leavitt. great to see you this morning. what is your take on the crypto craze? do you have a favorite? you've got bitcoin, doge, what do you say? >> can't believe we are having this conversation. i know. bitcoin is the gold standard. the serial to me, people go hysterical over, people are using these platforms. in my opinion, a better version of it could displace -- the program is working on it right now i'm working on it like software. oracle or microsoft just because it is useful doesn't mean it has to go up in value

every day and that is where there is some displacement. as for dogecoin and every other coin, if they are fun why not? go to the racetrack or do that, why not? ashley: do you have any money in this at all? >> there is no entrance, just a matter of perception. if somebody wants to go big, millions of dollars for the nfts you could make the argument the $9 million our intrinsic value. the free money, why not, go ahead. ashley: why not? very quickly, where would you put your money? where are you putting your money right now? >> i own amazon. it is a wonderful company. it is moving along. i understand, i think big tech is a good place to be. ashley: we have to leave it

there. down and dirty, why not crypto, go to the racetrack? thank you for joining us this morning, just a quick look at crypto currency. amazon is everywhere working 24 hours a day, up big in that space. everyone is putting their hands in the air. "the opening bell," up and running. we saw a tough day of trading, the dow having its worst day since february. what are we expecting today? out of the gate we are up 154 points, goldman sachs and jpmorgan, caterpillar on the top, apple, microsoft, those tech stocks are the laggards down 150 points on the dow. the s&p, more broad-based look at stocks down 0.7%, not a huge

move down, the s&p of 29 points, nasdaq, i was going to say unchanged, down 170 points, down one and one 12:45% again, nasdaq at 13,219. big tech money coming out. let's look at those big tech names and see what they are doing in early going, apple done at 123-84, amazon same story for facebook tesla also down one and one quarter% to $609 on tesla. they are trying to get into the renewable fuel credit market. this is a multibillion-dollar market. i had no idea. >> looking to profit from the

biden administration's green energy drive to 0 emissions. i remember they made most of its profit over the past year from selling green credits to other companies to meet those regulatory requirements. they could potentially reshape the renewable credit market which is gutted by biogas reporters so tesla could put a trend other carmakers could get in. this could be an inflection point and could mean more investment in electric car infrastructure like car charging stations across the country. this could be a game changer. ashley: stock itself down 9 points, 608 or thereabouts. thank you. let's look at wendy's, the burger chain raising its annual earnings forecast on confidence in its breakfast menu. i have it for breakfast, lunch, and dinner. they say the menu will bring them in customers as

restaurants fully reopen. investors like the sound of that up 2 and one quarter%, 238 on wendy's. let's look at electronic arts, the videogamemaker reported before the bell, the stock is down. give us the highlights. >> the game maker sold more, if they made a short light up profit but wall street treats future business and electronic arts on 2021. they say the pandemic boom is going to continue even as covid restrictions ease off. we are flat at that point, could see a rotation back with these volatile markets. ashley: okay. madden american football. we looking at other movers including if you bu tv which is associated with soccer. >> we are up 18% for 3 months. if you think of it, the shares

are up close to 17% because they reported record sales doubling in sales in the year's first 3 months, raising before your outlook, 590,000 subscribers, stuart varney streams his free football games. you get rewarded for those types of markets. speaking of growth, unity software makes 3-d software for video games, $125 in their view and could get up 30% or 40% and also stellar first-quarter earnings as well, pretty good 3 months to start the year. ashley: to say the least. when you mention the term 3 how quickly the name stuart varney -- >> and wendy's. ashley: coincidence i think. let's take a look at disney.

morgan stanley raising disney's price target saying it is part recovery, faster than expected. that is pretty good. stock kind of reacting less than 0.one% at 181 for disney. now let's look at amazon. susan, amazon scored a major win which is unusual in european courts. >> wouldn't say it is unusual. for the company to win on the european side, amazon won, $300 million tax case against the eu and they wanted amazon to pay back taxes to luxembourg so the court rejected the argument that amazon received an unfair tax deal so that is two for two for the tech giants, apple, $11 billion tax case so i would say you call a cash grab on the european side but tech names are winning so far. ashley: that is good, glad to

hear that because i'm convinced the big american tech companies are on the budget items of every european country and will find them and find them. that's how they operate. i am sarcastic, very low form of with. take a look at the dow winners in the early goings, goldman sachs up there nearly 2%, caterpillar one.5%, jpmorgan, chevron, things are coming back i guess, up one%, american express up one.5%, the s&p 500 winners if we can norton lifelong up yesterday, some energy plays, diamondback energy, marathon, occidental, wells fargo also one of the top s&p winners of 2.5%, take a look at the nasdaq, there are winners on the nasdaq, intuit,

alexa pharmaceuticals, ea, craft tines and regeneron pharmaceuticals. they are up 3.2%. let's look at the 10 year if we can. it is we are told that a 1-month high up nearly 5 basis points. 6.8%. of that deal goes up we normally see, taking a look at bitcoin, talking about cryptos. 566,$000 and let's look at oil, we've been talking about it all morning and the average price for a gallon of gas at $3, up one dollar and $0.15 from a year ago. talk about inflation. now this story. san francisco schools are set to reopen for just one day. i'm sure you are asking yourself why.

it is so they can qualify for $12 million in state reopening funds. martha maccallum takes that on. did you see this bombshell report from the new york times? they claim the cdc exaggerated the outdoor transmission rate, didn't need to wear masks outside this whole time. it is so misleading and so confusing plus the governor of indiana signing an executive order, word search requirements from people on unemployment. senator mike braun will join me on that next.

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ashley: let's look the markets. the dow having its worth session since february and

again today, 12 minutes underway, we are down 143 points, down half of one%, s&p down one half of one%, the nasdaq close to one%. as businesses struggle to fill open positions from the states are ending their boosted unemployment benefits. alabama, iowa, mississippi, arkansas, montana and south carolina, there they are, all ending their increased benefits. let's get into this. indiana, the governor says people need to show proof they have been searching for work before collecting unemployment benefits. starting in june indiana residents will have to provide weekly job-search reports to qualify for unemployment the seams fair. let's bring in senator mike braun, republican from indiana. do you think this will work and is it the right move? >> hallelujah on the states leading the way to just refuse

the benefits. i traveled the states last week, we are on recess, small, medium, large businesses still check in with my kids, they run the one i was ceo and cfo for 37 years prior to coming here and believe me it is a chorus in unison and i am calling on all governors to make sure they do the same thing the states have led with and even more so than just requiring the effort you are looking for a job. by the way that was in place basically everywhere before and that is going back to what was there before. get rid of the benefits so we can get commerce moving. ashley: the white house, senator, says the correlation between expanded benefits and the struggle to find workers does not match up. they are blaming fear of covid.

the inability of many women to find childcare providers so they can't go back to the workplace. how do you respond to that? >> i would say that marinating in fear that many in the other side have taken during this whole journey. if you want to look at what is really going to work, look at some policies that were in place like in florida where you acknowledge the formidable nature of what we were going through but you didn't hunker down. the most vulnerable population with probably the most viable economy because you straddled it and did it well both ways. until that gets incorporated more into the way things are done you are going to see the dow react the way it has because right now you are throttling down the economy because unemployment and if it's, still being there.

ashley: let's move topics, talk of the pandemic and senator, you confronted doctor fauci on what it will take to reach so-called herd immunity. we have a clip we will play for the audience. role that tape. >> that will be a difficult number to give because herd immunity is a concept, the threshold of herd immunity is a number we don't know yet for this particular virus. we know with the measles but we don't know -- we can guess somewhere -- >> that uncertainty is probably the thing that will be the hardest thing to grapple with to get this in the rearview mirror. ashley: so, senator, he didn't have a clear answer for you. does this affect confidence going forward, what the cdc is recommending and doctor fauci? >> no doubt about it. i was going to use the line of questioning senator paul did.

he does a great job, he precedes me due to seniority but this is the essence. if we can't tell people that by going through all of this, this hunkering down, that we have a clear result that is going to be there that we can get rid of the masks, get back to normal, it is not going to be some type of flu confrontation every year where we've got to get vaccines, people are going to start recalculating. i think so far we've done a pretty good job. i believe when you can't answer simple questions like where is that point in time numerically, natural infection, and vaccinations, you're still wavering, people will start calculating this in a different way. ashley: he didn't know, that is the scary thing. senator mike braun, republican from indiana, thank you so much for taking time out to chat with us. appreciate it.

joe rogan also weighing in on the recovery. what did he say? >> i wouldn't call it a recovery. he's concerned democrat controlled cities like new york and la may not you what they once were. he calls and sinking ships. >> people had faith in the government in the since the worst-case scenario even if incompetent everyone will stay together, now you realize no, doesn't have to stay together. we can be irreversibly [bleep] like some of our cities are. >> you can guess what the bleep word was. rogan says residents are moving out, not sure if they want to stay when they get other states wide open like florida and texas but the location data looking at this migration to new york is going twice as fast

this year compared to 2019. looks like that is 1900 people moved in in january and february of last year in 2019, 7000 leaving, rogan might not be correct but you want the crime rate to go down. ashley: you don't need the bleeps, you get the sense from joe rogan. interesting stat. every day we've been showing you exclusive video of migrants crossing the border. that is del rio, texas, just walking across the rio grande. here is what the biden administration thinks about it. >> dozens or hundreds of migrants walking into the country. i am curious what you meant when you said the border is closed. >> what i meant was precisely that. the border is closed. >> the poor guy. >> that is the same. ashley: i tell you what. as we look at this video, the border is closed? really? it is not. a live report on that coming up. images of long lines and even

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ashley: the colonial pipeline outage could affect air travel. grady trimble is at o'hare airport. could this impact passengers? >> reporter: it could and it already is not to worry at o'hare. they might be worried about finding out where they are going and american airlines is the airline that has seen the biggest impact. they added fuel stops to two daily long-haul flights that would ordinarily be nonstop. the biggest impact is still at gas pumps. people continue to panic by. gas buddy says 3 quarters of stations in the charlotte and raleigh metro areas have no gas, almost 60% of stations in metro atlanta are without fuel. the main problem according to gas buddy is not necessarily a shortage of gas but shortage of tanker trunk drivers to get the

gas to the stations. because of all of this gas prices are skyrocketing along the east coast. we are showing you the amount of increase in the east coast states from $0.07 to $0.08 pretty much everywhere on the east coast and that is not since last week, that is an increase from just yesterday. all of this happening as americans are about to hit the road a few weeks from now for memorial day, 37 million americans expected to travel somehow either by air or by car and the colonial pipeline, they say they expect to have it fixed and operational by the end of this week but you have to remember it will take another 15 to 18 days for that fuel to flow from texas where the pipeline starts all the way to the end of it in new york so we could see impacts for days and weeks ahead. ashley: we certainly could.

grady trimble, thank you very much. the governor of georgia, brian kemp, suspending gas tax sales to level out those surging prices and he will join me next hour to talk about that. governor kemp of georgia. taking a look at big tech before we head to break, the nasdaq down 116 points, not as bad as yesterday and that particular sector came back towards the end of yesterday's session but the big tech names all down one%. apple down 124, down one.5%. still ahead on varney, bob dole, ben dominic, kt mcfarland talking about what is going on between palestine and israel and bret baer as well, the second hour of varney is next. ♪♪

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♪. ashley: on top of the world. the imagine dragons. if you look at the top of the empire state building on a beautiful morning in new york city. good morning to you. i'm ashley webster in for stuart varney today. it is 10:00 on the east coast. let's get straight to your money. you can see a lot of red on your screen, not as drastic as of this time yesterday. nasdaq, big tech index down

1.25% at 13,222 on the nasdaq. look at 10-year treasury yield. been on the rise at 1.68%. that usually spells more money coming out of big tech. in fact we are indeed seeing that this morning. just take a look at some of those big tech names. apple down back to 123.78 for apple. amazon, alphabet, microsoft, all down over 1%. microsoft down four bucks at 241. let's get to inflation. everybody it talking about it today. consumer prices surged at the fastest pace since september of 2008. good time to bring in bob doll. bob, what does this mean for the markets and you as an investor, this very big inflation number. >> well the bulls on the market would say, don't worry about it, it is transitory.

compared to the last year would create this sort of number. the bears are saying not so fast. my view is, you can't fine tune inflation. we've had monitory and fiscal policy pedal to the metal. we have a fed that says give me more inflation. my fear is we're going to get it. the assumption they can fine tune it will not prove out. we'll be stuck with a little inflation. not super high inflation but enough to bother the markets at these elevated valuation levels. ashley: as an investor, how do you play it? >> i think, first of all you have to make sure that your equity position is not a lot higher as a percentage of your portfolio than you wish it to be. so if you need to take a little money off the table, having made some unbelievable gains in the last 12 months, don't hesitate to do that. within the portfolio make sure you have enough inflation or stronger economic growth kinds

of names, some industrials, financials, energy. don't overdo your portfolio with high p-e growth stocks which have done so well in the last 12 months until recently and are still vulnerable if we get upticks in inflation and interest rates. ashley: bob, those, you know those growth stocks, look at the big tech, i mean apple down back to 123. is that something you would take a look at and buy on this big dip? >> apple, microsoft i could throw it in. these are established companies. while their valuations are up, there are a lot of stocks that have valuations much higher with presumably not much higher growth rates. i think higher p-e segments of the market i would worry about more than i'm worried about apple and microsoft. ashley: with regard to inflation, the fed is convinced as you say transitory. i guess that's the bulls version

of it and it will moderate later in the year but how much pressure is the fed going to be fund we continue to see this pace of inflation? there is going to be a lot of calls. even yellen said we may have to raise rates to cool it off. is that something that could very well happen? >> this is a very important question. with the numbers up, whether transitory or not, there will be pressure from the markets on the fed to i this about what it is they need to do to fight this off. now, we won't know for some months if it is transitory tore not. and i think that will create a lot of debate and some volatility in both directions in the markets. the fed is going to have to now thread the needle a bit. when inflation was not an issue, you could talk about it coming, being transitory. now that it poked its ugly head, a lot of people will be saying prove to me it is transitory. only time will tell.

ashley: right. yes indeed, only time will tell. bob doll, thank you so much for joining us this morning. >> thank you, ashley. ashley: great insight. thank you very much. now this, the biden white house dealing with a growing list of problems raging from the border crisis to cybersecurity breaches. oh, yes, let's not forget the rising tensions in the middle east. lots to consider. let's bring in ben domenech. great to see you this morning. do you think the administration is becoming a little overwhelmed? >> i don't think there is any question that they are. they have had to push through a ton of different things in the early going of this administration. that led to a lot of expenditure of taxpayer money, shutting a lot of money out the door, engaging in a lot of culture war issues with the left i think surpised a number of people who found joe biden's appeal to be more as a centrist. there is no question this white house has now got a long list of problems, and not a real

clear direction how they're going to handle it. they can hand wave at some of the things going on around the world today but i think there is really not a clear message being sent to our allies and to those who are concerned eye bought the rising tensions, not just in the middle east but related to china and everything that we see on that front. instead the white house wants to keep having conversations about identity politics and climate agenda, things like that. ashley: right. >> not the issues on the front pages for most americans. ashley: let's pick up on one of those issues, the border crisis. it is a crisis. fox news has been showing every day streams and streams of migrants crossing the rio grande river in broad daylight n one case with an actual smuggler with them with a face mask on. we had the horrible story of five little girls just abandoned in the desert in scorching temperatures. and yet, the vice president who has been made, i guess the

border czar has not given a press conference in now 49 or 50 days. i mean they're paying lip service at the very most to what is a continuing crisis. >> i mean this is a situation where they just don't want to put her out there because they're afraid of the questions that they will get, even from a very compliant media and so many other respects? the fact is that this is a crisis they don't want to pay attention to. i think kamala harris, the feeling internally in the white house she is somewhat set up to fail in this instanes which is one of the reasons why she has gone very quiet on it. she is not addressing it in the way it obviously needs to. not taking it to the degree of seriousness that americans understand that it needs to be met with. ashley: how much is joe biden being influenced by the far left? is he frightened to say anything for fear of upsetting the aocs, of this world, bernie sanderses? >> i think the idea that

ron klain is really running this country, he is running the administration, receives a lot of attention here in washington. i'm not sure that the degree to which it's true by it is true to a degree. i think that joe biden really is not the person who has his hand on the wheel in all of these things. he is more being pushed around by members of his own coalition in terms of the priorities he is setting and i certainly think to your point, that progressives have gotten a lot more out of administration maybe they expected going into it. they're very happy what we've seen, even as we see all the rising crises the white house is not paying attention to. ashley: we'll have to leave it right there. ben, great stuff as always. thanks for being on the show today. we appreciate it. thank you. let's take a look at the markets. let's bring in susan li. the markets obviously heading south again but you're keeping an eye on amazon? susan: yes. because amazon announced a new

alexa powered speakers. upgraded echo show 8 and echo 5 on sale. not helping things today with the fact that we had that inflation, the fastest since 2008. that is spiking treasury yields. wendy's selling more of stu's favorite, jalapeno cheeseburgers. raising full-year forecast. breakfast sales they said on the earnings call should grow by a third this year. electric battery quantumscape as scorpion cap pal as the next theranos, they reported a bigger loss than anticipated in the first quarter. they provided more technical details in the report. this company is more like a show me, you have to prove it solid state battery actually works. ashley: a brutal analogy for sure. one more, susan. what about tesla? we talked about this. explain the renewable fuel credit market it wants to get

into. susan: this could be a game-changer because other car companies could get in. so what tesla is hoping to do, they are hoping to profit from the biden green energy push to zero emissions. for tesla most of their profit over the last year or so is selling green credits to other companies in order to meet regulatory requirements so tesla's entry, actually could potentially reshape the entire renewable credit market according to analysts because it is currently dominated by biogas providers right now. if tesla gets, you can imagine other carmakers will try to get in as well. this could mean more investment, electric car charging stations, other infrastructure investments in the future. we could see money moving to other places. speaking of which, i want to show you what elon musk tweeted this morning and this could be a game-changer here. it looks like tesla's full self-driving subscription model could roll out in a month's time. that is bullish for tesla. instead of paying $10,000 up front for that ad-on, you could

pay for autonomous assisted driving for your cars on a monthly fee. think of the netflix model coming to tesla. ashley: that is fascinating. as you say, not doing much tore the stock price. tesla at 612. down just less than 1%. susan, thank you very much. the biden administration insists i mean insists the border is closed despite all evidence to the contrary. roll this tape. >> we have cameras in texas showing humongous groups of dozens or hundreds of migrants walking right into the country. i'm curious when you meant last week that the border is closed? >> what i meant is precisely that. the border is closed. ashley: it is not closed. take a look at this. we're seeing it every day. that is not a closed border. we will have a live report from the rio grande straight ahead. it's a panic at the pump as

long gas lines stretch across the southeast. the governor of georgia, brian kemp doing something about it. he will be here to explain. but first fears of war breaking out in the middle east as tensions continue to rise between israel and gaza. kt mcfarland says all of this was entirely preventable and she's here next. randdaughter..'s cute like her grandpa. voya doesn't just help me get to retirement... ...they're with me all the way through it. voya. be confident to and through retirement. stay restless with the icon that does the same. the rx, crafted by lexus. lease the 2021 rx 350 for $439 a month for 36 months. experience amazing, at your lexus dealer.

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wanna help kids get their homework done? well, an internet connection's a good start. but kids also need computers. and sometimes the hardest thing about homework is finding a place to do it. so why not hook community centers up with wifi? for kids like us, and all the amazing things we're gonna learn. over the next 10 years, comcast is committing $1 billion to reach 50 million low-income americans with the tools and resources they need to be ready for anything. i hope you're ready. 'cause we are. [explosion] ashley: all right. buildings leveled, rockets lighting up the sky, violence between israelis and palestinians continues to escalate. trey yingst is on the ground in israel. trey, thank you for joining us. what does it look like where you

are today? reporter: ashley, good morning, more than 1000 rockets were fired into the gaza strip since monday night. today the israeli military is responding. according to reuters they have taken out at least 16 hamas military figures. prime minister benjamin netanyahu confirming some of that news. they assassinated the head of operations for the logistics center for hamas. israeli forces targeted three cells of anti-take fighters. one of those cells was hit after it fired at a group israeli soldiers killing one of them. we were the at the hospital when the soldiers arrived, the head of the emergency room, that hamas is getting more advanced weapons and technology they are using against israeli forces n gaza, at least 53 people have been killed in israeli strikes including 14 children. key infrastructure continues to be hit. hamas officials tell fox they have evacuated their homes n the

next few hours the situation will deteriorate more and more. the one of the candidates to be the next prime minister spoke to fox the next 24 hours about hamas take a listen. >> we're not talking about a partner for peace. they don't seek peace. they teach their children to kill israelis and we'll defend ourself. reporter: all over the roads the tanks are preparing for the possibility of a ground operation. israeli military sending them here so they have options on the table. sees fire talks are getting nowhere. each side says they will continue fight. ashley? ashley: trey yingst, thank you very much. trey, stay safe. bring in kt mcfarland, author of revolution, trump, washington, and we the people. kt, good morning to you. you say all of this was very preventable. make your case. >> it's a great tragedy. trump left office, peace was

breaking out in the middle east. the biden administration comes in, they're so nur ral gibbing iran sent missiles to hamas and in the gaza strip. what they are doing? they are using miss sells against israel. there will be another enat that fade dauren. there will be a war. it will be bloody and nasty. israel will win but it didn't have to happen. ashley: you think it will escalate to that point? you don't see any way back? >> no. because iranians, now that they're empowered by the biden administration, the iranians, they have given weapons systems, a lot of weapons, a lot of sophisticated weapons to their allies in the palestinian community. that is, that is what is being fired into israel. i think it has the potential to get even bigger because you now have iran emboldened what is happening on the israeli border. iran is now doing maneuvers

around mill it terri and coast guard vessels in the strait of hormuz. it has the prospect of getting bigger. ashley: with that said if it continues to escalate, kt, what should the biden administration do? >> look, the whole thing, iran is the key to all of this. iran, a powerful iran means that iran with nuclear weapons and iran that is going to support every movement it can, terrorist movement it can throughout the region to chant give death to israel. they're not there to compromise. why there are no peace negotiations. whatever attempts at peace negotiations go nowhere. trump understood the way you get peace in the middle east was to get the countries in the middle east, the rich ones to stop supporting the corrupt aged palestinian leaders who have no interest anything other than war. ashley: he was doing that very successfully. we had a number of agreements

signed. did that literally go down the drain once the biden administration came in? >> well, they haven't -- i mean the whole reason that peace in the middle east has happened is because israel made peace with the arabs. now iran is neither arab or the same kind of muslim. now you know, it may not seem reich a big difference to us, but in the middle east those tribal differences are determinant and iran doesn't want peace with israel. iran doesn't want peace with the arab countries. iran wants to be the major dominant country in the region, when biden comes in, we'll lift all the sanctions, go back to the iran nuclear deal. when the biden administration says you have a grievous rid schuss cause, we'll give help to you and gives israel a the cold showedder. it was totally preventable and totally foreseeable. iran getting exactly what it

wants. kt mcfarland, great stuff as always, thanks for joining us. >> thank you, ash. ashley: thank you. let's check the markets why don't we. we're down across the board. we've been in the same range for a while now. we've been, markets opened up just under an hour. dow down half a percent. s&p up 3/4 of a percent. it is nasdaq with the biggest losses down 1 1/4%. down 172 points on the big techs index. let's look at beyond meat expanding its presence in walmart stores with beyond meatballs, why not, which will be apparently available at walmart for the first time next month. beyond meat down 2%. internet computer cryptocurrency, already one of the biggest in the world. of course it is. come in, susan. what is the valued at? susan: $45 billion in 4hours s

that incredible? the world's 8th largest digital asset. it's a crypto craze. this coin is more like ethereum than dogecoin, or even bitcoin. it's a new blockchain technology, a type of platform you can build services off of. internet computer blockchain can help you avoid corporate walled gardens, reducing the cost. users could potentially build a social media site, other services that compete with facebook and other big megacap companies. this is actually quite exciting. i get it. ashley: kind of takes it to the next degree. very interesting. susan, thank you very much. check out bitcoin, by the way, susan of the softbank founder cautious about the cryptocurrency. what is he saying. >> that is surprising. he is the most single influential investor capitalist in unicorns. invested in wework, uber, pretty much anything else that made a lot of money. he is not a bitcoin believer.

he is not a hater. he says bitcoin is not an established asset like diamonds or bonds but you can't ignore it but he is not sure it is going to the moon. sun is not sure he will buy it like tesla or square has. he prefers buying shares of amazon and facebook. for example, some of the ipos we talked about last quarter he vin esed in, coupon and airbnbs in the world. one of his most famous trades when he invested $20 million in alibaba in early 2000s. that turned into $200 billion. why he is famous as he is and influential. ashley: that is pretty good if you like that kind of thing. pretty darn impressive. interesting he doesn't like bitcoin. susan: yeah. ashley: kind of counter intuitive. susan, thank you very much. san francisco schools are finally reopening but it could be for one day, that's right, one day. outraged parents calling it a cash grab by the school

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♪. ashley: jack johnson said it, sitting, waiting. that is exactly what many drivers are doing in long lines at the pumps across the east coast following the colonial pipeline cyberattack. a wet, miserable day in georgia apparently. jonathan serrie at a gas station in atlanta. turns out the gas station you're at just ran out of gas, right? reporter: it just ran out of gas minutes ago, we were looking at a long line of cars going down this parking lot, going a block behind briarcliff road. then just a few minutes ago, employees here at the quick trip station on briarcliff road, placing yellow bags over the nozzles. they have run out of gas after

doing a solid business all this morning. that is what we're seeing at gas stations throughout the southeast. those gas stations still have gas are attracting very long lines at the pumps. i want to take you to north carolina. take a look at this aerial video showing long lines at a gas station in raleigh, north carolina. scenes like this are unfolding, not just across that state but throughout the entire southeast. >> colleague says there is no gas anywhere. i was planning on a trip tomorrow, you should fill up. is there anywhere between here and central florida where i have to get to? unlikely i will be able to get anything. reporter: alabama governor kay ivey tweeted do not fill up your car unless you need to. do not fill multiple containers, overreacting creates more after shortage. please use common sense and patience. now, stuart, state officials

emphasize this is not a fuel shortage but a distribution problem. nevertheless the economic impact is similar. according to aaa gas prices exceeded three dollars a gallon for regular unleaded. this time last year it was 1 in$85. back to you -- $1.85. ashley: that station running out of gas tells the story. thank you, jonathan. we have governor brian kemp of georgia. you declared a state of emergency. you temporarily suspended the gas tax in your state. what is the latest? >> more of the same. continue to wait for updates from washington, d.c. obviously people made a run on the pumps after the media coverage got so extensive coming out of the weekend which created certainly a supply issue here in the state of georgia.

as you said we suspended the gas tax to try to hold the price down as much as we can for our consumers. we keep being told this is a short-term issue but have no new updates on that. we're working with all of our private sector industry partners, using every tool that we can at the government's disposal from the state level. but as you know this is really a nationwide issue in some ways, affecting states from texas up into the northeast and certainly the southeast so we're continuing to buckle down and follow things. it is tough right now for sure. ashley: yeah. it is very difficult to tell people don't, you know, fill up your car if you don't have to, to try to stop some of this panic buying. people do it. it seems to be human nature. the number of gas stations are running out of gas are starting to grow. how concerns are you? i know you kind of answered, i was asking you how long do you expect it to last, you don't

have any idea. colonial says they should be online the end of the week. here we are on wednesday, are you hoping for some relief in the near term here? >> we've been five days now, not getting a whole lot of information from our federal partners which is frustrating for me. we're continuing to work through the companies that are involved in this. obviously the retailers and supply network. there is a trucking issue which goes back to the whole unemployment issue. that has been something that has plagued industry even before this issue. i think a lot of the southern governors, governors from around the country are starting to move on that issue even if they're not in washington, d.c., which again is fairly, very frustrating not only for me, but for a lot of folks dealing with, not just this issue but many others. we're seeing more and more out ages. it is frustrating that people are panic buying. we tried to ask people to use

common sense. get what they need not more than what they need. that has fallen on deaf ears. some retailers are dealing with that but not all of them. ashley: governor, let's switch topics if we can. several states you mentioned unemployment. they're ending unemployment benefits hopefully encouraging more people to get back out there and get back to work. there is a huge shortage of workers. are you considering doing the same thing. >> absolutely. in georgia we have a statewide elected constitutional officer in our labor commissioner. so the final authority with that lies with him. we've been, working with him for several days, trying to make sure we understand what that would look like but we're definitely moving in that direction. you know we're also again waiting for federal guidance. some of it on the arp funds just came out yesterday but i literally hear this everywhere i go all across the state and all sectors of employment. it is not just service industry and others that were hit very

hard by the pandemic. it is really all industries. our unemployment thankfully because of our measured reopening in georgia, really being ahead of the curve on that is well below the national average. so we're doing well but we need more people in the workforce. literally we have businesses that are having to close because of a lack of people producing their products every single day. that is not good for the economy. i think it is helping drive inflation and that is something the biden administration really needs to take a hard look at as well as the treasury. ashley: yeah. it's, you know, it is a nationwide problem, no doubt. governor, you and 19 other republican governors signed a letter urging president biden, i'm switching to the border crisis now, you're urging the president to put act on the border crisis. what steps do you want him to take? >> well, to me it is really mind-boggling that this person he put in charge of border

security in this crisis down there, our vice president, has not even been down there to talk to the border patrol agents or national guardsmen or women serving down there. we have over 200 georgians supporting the border patrol mission. i was down there in december. made a trip couple weeks ago. drastically different. we saw the figures came out in the last 24 hours. we're seeing record numbers of people coming across the border, record numbers of apprehensions. because of lack of action. something sneads to be done bit. it is certainly straining the border states. it is not good for places like georgia where you know, we're having to send 270 national guards people out there. they're literally working themselves to death to try to support that mission. border security is something that we need to do in our country. there has got to be a change here. obviously the policy this administration has versus president trump's is not working. ashley: yeah.

no it's a complete 180. lack of action i think is the key there. governor kemp of georgia, thank you so much for joining us this morning. we do appreciate it. thank you. >> thank you. ashley: all right. thank you. let's check the markets. stocks hitting session lows, taking another leg down. the dow offer 265. the nasdaq now down 227. all solidly down 1%. the s&p also down 1%. small businesses starting to recover from the pandemic are facing another obstacle. we talked about it with the governor of georgia, no workers. we'll talk to one small business owner struggling to find employees straight ahead. first, congresswoman liz cheney officially booted from republican leadership but she is not going out quietly, that's for sure. we have a live report from capitol hill after this. ♪.

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ashley: let's take a look at these markets. another day of losses. the dow off nearly 300 points. less than 1%. the nasdaq down 1 and 3/4. we're starting to see a little more downward momentum on the markets. >> now to politics, liz cheney has been booted as chair from the house republican conference. chad pergram is on capitol hill. thank for joining us this morning. what will happen next. reporter: at some point it will be a replacement. a voice vote. list cheney from the republican leadership position. she was number three in the. she was highest ranking republican in american government. cheney did not put up a fight.

>> we must go forward based on truth. we cannot both embrace the big lie and embrace the constitution. reporter: republicans did not install new york gop representative elise stefanik as cheney's successor. that may come later this week. some republicans don't think stefanik is not conservative enough. kevin mccarthy did not become speaker because mccarthy lacked votes. now if republicans win the majority next year today's vote could harm mccarthy in a bid for speaker. you need a majority of the entire house. ashley. ashley: interesting stuff. chad, thank you very much. good time to bring in bret baier. bret, good morning to you. this wasn't, this was expected but your reaction? >> it wasn't, yeah, right. it was expected and it was in the cards because the members of the caucus, republican caucus, believe that liz cheney was not

representing them as gop conference chair, battling with the former president. that said, she probably got some supporters based on this move, saying that she stands on principle and, that she is going to continue to. there is about 100 lawmakers apparently actually that will release a letter saying they're going to form a third party if the party does not break formally with former president trump. i think that would be interesting to see how that develops, but in the big picture, this is not going to be a blip on the midterms. no one is voting next year plus, four or five months saying remember that gop conference battle with liz cheney? they're not doing it. i think in the big picture it is not a big deal. ashley: right. certainly does show to your point that the republican party does appear fractured, in the shadow of donald trump hangs heavy over this party. how does this party, you know,

put forth a vision of unity? >> it is going to be a challenge i think. it is going to be fascinating to see the blueprint how they get to 2022. i think a lot of the party, majority of it says, the policies of the trump administration were something they really loved. the person, a lot of them didn't love so much because it caused them heartburn. others full on support for the former president. would like to see him run in 2024. mapping that out is going to be key. their key is really to focus on joe biden and the policies of the biden administration to play off of that. tonight, ashley, we have senator mitch mcconnell, the senate minority leader on "special report." we'll get maybe some indications where their messaging is going forward. ashley: it seems to me though if you criticize donald trump, liz cheney called for his impeachment and everything else, but if you criticized donald trump you're in trouble within the gop. >> for the most part that has

played out. she is testing that. and saying that there is another side to the party that will get too frustrated with some of the things that the president has said, continuing stolen election push, et cetera. ashley: i'm talking about your show, bret. don't you have liz cheney on tomorrow night? >> thursday night. cable news exclusive. liz cheney speaking out tomorrow night. you know i will ask her all kinds of things whether she was poking the bear purposely and whether she wanted this moment to happen. ashley: okay. we'll look forward to that. should be very interesting interview. bret, thank you so much for joining us this morning. we'll be sure to catch the show, that interview tomorrow, 6:00 p.m. on fox news. thanks so much. let's check the markets again and bring in susan as the markets take another leg down. you're watching roku. what is going on? susan: outperformance for set-top box streamer. we're up 1 1/4%.

not a whole lot of stock specific news. fubotv, more streaming subscribers, bullish for streaming plays like roku. we her from billionaire hedge fund manager bill ackman revealing he bought a 6% stake in domino's pizza. he is going long on dominoes. he is selling out of starbucks. that is an interesting rotation and vote of confidence from one of the most influential wall street investors is bullish for domino's pizza. unity, called a buy at stieffle. beg tick, high growth selling off with inflation at the highest since 2008 and yields going up along with it. ashley: i want to mention on roku. i have spectrum as a provider and they're in a huge fight with roku. i can't get my spectrum app on my roku. i'm very upset about it. i want to air it out on this show.

i have to reach someone, come on, get it together. susan: roku has a lot of power, prying power because they're in a fight with youtube. you know when you're the hardware of choice for streamers you have a lot of market say. ashley: get it together, guys. i need my spectrum app. susan, thank you very much. remember cassette players? there are people out there who have no idea what i'm talking about. one teen going viral struggling with the new technology. >> why? [laughter] >> no. [laughter]. >> open this. >> why? >> because that is how it works. ashley: oh, my gosh. give her a 45, one of the old vinyls. use it as a frisbee. kids these days, we have the full video for you straight ahead. makes me very old. first, not just the colonial pipeline. hackers hit a major police

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♪. ashley: all right. let's take a look at these markets for you. had a selloff yesterday. the dow at its worst day since february. now down 323 points, down close to 1%. the big tech nasdaq composite also down nearly 2% now with a loss close to 260 points. the selloff goes on. now this, russian ransomware hackers believe it or not hit the d.c. police department. they are releasing sensitive personnel information. let's bring in susan. how much money are they demanding, susan? susan: they are demanding $4 million. the police department countered $100,000, because their spending is closely control. the hackers are saying that is unacceptable. the differences are pretty wide. this is an entirely different hacking group that targeted the colonial pipeline. both are russian speaking outfits according to nbc news. this hack happened in april. police officers, social security

numbers, dates of birth, financial and social history released on the internet. this is a big deal. ransomware hacks have cost victims $75 billion over the past year. there has to be something done about this, right? ashley: wow. yeah, i mean, apparently the ransoms are being paid. that is a huge amount of money. now this one, susan, republicans doing all they can to step president biden's six trillion dollar spending plans. what are they saying? susan: look at inflation. look at rising prices. we're seeing that with the fastest inflation in 13 years reported this morning, right? that will hurt americans, consumers and the economy if the biden white house continues to print trillions of dollars in spending. so we know that president biden is meeting with five gop senators on thursday to talk about the two trillion dollar infrastructure plan. now these gop senators are offering, a counter offering a smaller 500 billion-dollar infrastructure spending plan that only includes spending for

what they call real infrastructure on roads, airports, tolls and bridges. but you can imagine president biden and the white house will say these inflationary pressures are transitory which is what you have heard from jay powell at the federal reserve. ashley: right. susan: meaning they will not be here, they will not stick, these higher prices. ashley: well there is a huge difference in plans there between the white house and republicans. interesting to see how much of a compromise if any they can achieve. susan: 1 1/2 trillion dollars, right? ashley: very wide. right. let's check the 10-year treasury yield if we can. it is at one-month high. as we see, it has been close to up five basis points. right now at 1.668%. so that is a sign normally that will hurt the growth stocks in particular the nasdaq, and that is playing out. gold meantime down $12. not a safe haven down to $1823 per troy ounce.

bitcoin too, down, $610 to. look at oil, we're talking about it all morning. right now the average price for a gallon of gas is $3 for regular unleaded. as you can see the cost of crude oil up to $66.28 a barrel. that is up another dollar. by the way gas prices up $1.15 from a year ago. that indeed is inflation. we have another big hour coming up for you. we have martha maccallum. rachel campos duffy, texas congressman lance gooden. many many more. san francisco schools are finally reopening but it could be just for one day. you could expect it, parents are furious. that story next. ♪.

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>> some of the big tech names are in bargain-basement territory. when it settles up there will be tremendous bargains in big tech. we are seeing price increases that cannot be dismissed as transitory. inflation like this is focused on the poor people that are supposed to be mister biden's personable constituents. your seeing printing press economics, this new monetary theory blow up in the oval office.

>> an egregious mistake in being as expansionary as they have been. inflationary pressures coming for a long time as long as it remains as expansionary as it is. >> you can't find tune inflation, give me more inflation, my fear is we are going to get it. >> it is porous, get rid of the benefits to get commerce moving. ♪♪ ashley: the party rockets, beautiful day in new york city, the empire state building as a beautiful backdrop. it is 11 am on the east coast on wednesday may 12th. i'm ashley webster in for stuart varney. let's get to your money, not as beautiful as the weather, stocks at session wills, the dow off 300 points, s&p down one%.

the nasdaq continue its losses down 2%. let's look at the 10 year treasury yield that normally has an indication of where the markets are in the yield is up and markets come out, growth stocks like big tech, the treasury yield on the 10 year at one.68%, up 5 basis points. now this. high school seniors in san francisco can go back to school for only one day. why? just so the district can get $12 million in state funding. as you would expect, some parents are furious calling it a ploy to get money rather than addressing the needs of their students. they are right. let's bring in martha maccallum. good morning to you. what is going on here? >> pretty unbelievable. they are offering seniors who have not been in school all year for their senior year, you can come back for one day and

we will bring you in in cohorts and you will have a conversation with a couple teachers about the end of high school or college or career training. it is so salt in the wound. these parents and kids wanting to go back to school all year and there's a loophole in this bill that was put forward by assembling king who wanted to encourage the school to reopen, tie funding to the reopening of schools. they are not sure if this one day pause will get them the $12 million for the district but it is pretty unbelievable when you look at all the time that has passed or the fact that they are not committing, fully vaccinated, the teachers, won't commit in the fall. ashley: one word, pathetic. the next word, earlier this week you spoke to teachers union president randy weingartner about school closings and then former

education secretary betsy divorce --devos responded. >> the opportunity to impact the election. they saw an opportunity to have money grab even more than what they already got and they played hardball in a way that is an absolute travesty for kids. here we are again a year later, the ones that are most vulnerable are the ones that are most hurt and we won't know for years what the long-term impact is. ashley: she's absolutely right, the unions are playing politics with children's lives. what is your take? >> in a way the unions were extraordinarily successful at their mission. they kept the schools closed, got $123 billion out of the covid relief packages.

i interviewed randy weingartner, she said we can't open, we need more resources. we know what resources are, more taxpayer dollars being sent into the schools and we can talk all day about the impact that has on the value of education. a lot of schools that have very little money do a great job with that money and do a great job educating students, then you have the inner city, detroit, los angeles where quality of education has declined dramatically despite the fact they have more money for student so this, randy weingartner has a job, represents the teachers and all these areas through the aft. i'm looking for somebody who represents the children and who represents the families because i do think there is a tragic loss of learning this year and you are going to have kids in some of these areas who drop off the radar and don't come back, eighth-grade, ninth grade, tenth grade, teachers will tell you they had a decent

show up for glass -- class online in the beginning and then lost some kids and never found out where they went after that. they dropped off the radar and disappeared which is really scary. ashley: it is a complete travesty. i want to mention getting back to that interview with randi weingarten, you talked about critical race theory, the 1619 project and how essentially kids are being taught the system of the country was set up to protect white supremacy and she never answered your question. >> she narrowed the entire 1619 project down to the one element that it was the first arrival of a slave ship in the united states which is a significant point in history that should be taught but there is so much more to this curriculum at that. it started as a long piece in the new york times, got a lot of attention and turned into curriculums and teaching materials that have been sent across the country and it does

teach the founding of the country was based in the preservation of slavery, but that was one of the reasons for the founding of the country and don't take it from me, scholars who study this time. go and wrote about what the college's motivations for coming say it simply isn't true. ashley: great stuff as always, thank you for joining us today. we will be watching you on the story every weekday at 3:00 pm eastern on fox news, check it out. let's take a look at the markets, bring in joe durand. you say anxiety around president biden's tax proposals creating volatility but the markets are looking past it. make your case. what is going on? >> a lot going on, in favor of the day's inflation.

[ >> especially in commodities in ways that are rattling the markets now and shifted, the dynamics of where it is going and clearly a shift to the more conservative industrial mains, with a big tex for the year. ashley: where do you stand on inflation, jay powell believes it is transitory and will moderate by the end of the year, there are others who say it is free money being pumped into the system, eventually you have to pay the piper and inflation is a much bigger issue than the fed is anticipating, what do you think. >> inflation once unveiled is

very hard to put away. >> it is a return to the world, and have an expanded capacity, not enough gas, people are driving, new or secondhand, whether -- what we are seeing everywhere is increased surge in demand, what we haven't seen in decades, what you are seeing is a rush. on top of it, the incredible that is flowing and continues to flow. there is pricing pressure, whether the fed throws money at where they have pricing increases stick and keep doing

that and it hurts society in bad ways, people suffer the most with inflation and the challenge is the fed needs to be more vocal about keeping an eye on this to make sure it is transitory. ashley: we will have to leave it there. great stuff, thank you for joining us. let's take a look at the markets again if we can, bring in susan lee, you're watching domino's. >> them the per one of the most influential investors of wall street, billionaire hedge fund manager saying he has built up a 6% stake in domino's pizza, but that is a vote of confidence from one who is deep pocketed. the nfl gamemaker selling more in the first few months of the

year. a bit short when it comes to profits and wall street trades on future business and they are upbeat in $36 billion in federal pandemic aid were approved for students, regardless of immigration status, taking that on and more. the cdc votes whether to

approve the pfizer vaccine. they have big indication for kids heading to camp or back to school but first border patrol reporting 178,000 migrant encounters last month alone, the highest number in history. we are going back to the border for a full report next. ♪♪ ♪ when i was young ♪ no-no-no-no-no please please no. ♪ i never needed anyone. ♪ front desk. yes, hello... i'm so... please hold. ♪ those days are done. ♪

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one of them was dead already, she was all out. one little baby crawling around, couldn't walk, this is bad for everybody, bad for the little kids and it is going to be bad for our country. ashley: absolutely heartbreaking, that was a texas farmer who found 5 migrant girls, just 11 months old, heartbreaking discovery was found as applications rose 944% from april last year, in del rio, thanks for joining us, the biden administration, the border is closed but that is obviously not the case. >> customs and border

protection, brand-new numbers in april, 178,000 encounters with illegal immigrants, that is up over last year as you mentioned, the highest monthly total in the last 20 years, remarkable number and it reflects pretty much exactly what we have been seeing on the ground the past few days, you we can pull of this video, this is what we have been showing live on the air. it distracts them and sucks up their resources and smugglers can get their drugs in elsewhere along the border but this isn't just happening and el rio, all along the border, from roma, texas last night, in the rio grande valley, a group of migrants, dozen or so coming across the river on a raft, walking into the united states

down there, from those triangle countries, el salvador, honduras, guatemala, that is only part of the story. we can talk about what happens when migrants make it inland and get picked up by smugglers and local law enforcement have to chase them. this is from the local constable who was personally pursuing a human smuggler with migrants in the vehicle with him and you see the migrants either getting thrown out of the vehicle, pushed out or bailing out themselves, but they are not wanting to get caught. listen to what regional director in texas had to say about how they were trying to handle all this. >> we are using all our resources, boats, boots on the ground, we are trying to find that balance. >> this is around the time about 10:15 local time where every morning we've witnessed migrants coming across the river behind us but what

changed today was a short time ago we saw a squad of marines pull up on the mexican side of the border and so far we haven't seen any activity yet. there were just a couple cubans who walked up. i've not seen any marines on the hill, there they were 15 minutes ago, no activity to report yet. ashley: that is very interesting but heartbreaking in other ways. let's stay on the border issue, 20 governors urging president biden to act on the border crisis, the governor of georgia brian kemp was on the show the last hour talking about it, roll the tape. >> it is mind-boggling that the person he put in charge of border security in this crisis, the vice president is not there to talk to border patrol agents, border security is something we need to do in the country and there's got to be a change, the policy this administration has versus

donald trump is not working. ashley: it is not working. let's bring in texas congressman lance gooden. what will it take for the biden administration to secure our border? it appears they are doing basically nothing. >> the first step, they've not acknowledged we have a crisis, they refuse to talk about it. they put, larison charge, she refused to visit the border. they have done nothing about the surge, 1000% surge you've reported since last april and we are seeing states like mine and texas struggling dealing with it. my hometown and 8 hour drive from the border, we had truckloads of illegal immigrants let loose and they don't know where to go or what to do. they are being encouraged by this administration to come across the border and make this journey, work with the cartels to get here and nothing has been done. i want to thank you and your network for covering it. the media is helping americans forget the crisis that we have. ashley: the video is remarkable, at times

heartbreaking. the border is wide open. instead of the dead of night we are seeing these migrants, huge columns of people coming across in broad daylight even with a smuggler with them. another one, homeland security is working to fix what it calls a dangerous soil erosion along 14 miles of the border wall to protect the environment but with everything we are seeing with that money be better send rebuilding the wall protecting communities from the cartels and drugs? >> it would. privately i believe the biden officials would admit that but they are not interested in talking about the crisis because they know it is a losing issue, a losing issue with their far left base and a losing issue with the american people who are going to reward republicans with a house majority next year because of it. every day the biden administration can go without us talking about it is a win.

you are seeing so much talk about liz cheney across the rotunda. you see cnn reporter spending their day on liz cheney because they don't want to talk about this crisis and every day we are talking about impeachment or issues of the past or liz cheney who is part of the past we are getting away from tackling the issues the american people care about like securing the border. ashley: once the migrants get on us soil. it seems to me they are gone, dropped off in areas where they are not getting proper supervision. what is the long-term impact? >> the long-term impact is communities of who knows who? we had terrorist watchlist members crossing the border. we have to educate children that are coming across, you are seeing radical policies like educating immigrant children in california, keeping schools closed, teachers unions in

california, there is no plan except to continue this open border policy. ashley: we have to break in, very sorry, breaking news, the president meeting with gop leaders moments ago, let's listen. >> we are mccarthy and speaker pelosi, majority leader schumer, what we will talk about today, when i ran i said i wasn't going to be democratic president, i would be a president for all americans. bottom line is we will see if we can reach consensus on a compromise and talk about infrastructure to see if there is any way to reach a compromise that gets people's work done and in the bounds of everyone agreeing and that is the purpose of this meeting, not much more to say right now but we are going to get going. that is it. >> how do you do that? >> snap my fingers and it will happen. >> thank you.

[questions] >> mister president -- mccarthy and his leader - >> thank you guys. >> come on, guys. >> there you have it. pointing at my microphone, it is the usual mad press scrum as president biden not saying a lot, just that he hopes he can reach a compromise on his spending plan, a huge monetary gap between trillions, and 500 billion which is a lot of money being proposed by the gop. compromise is often a dirty word on capitol hill but we will see what they can accomplish. apologize for texas congressman gooden. i apologize for that, such is

the news. remember tom cruise's meltdown over covid safety on a movie set. let's remind you. >> we are creating thousands of jobs! i don't ever want to see it again. ever! ashley: that is a temper tantrum. tom cruise now explaining that rant and what he is saying, didn't really mean it? starting today, schools no longer require masks in south carolina. rachel campos duffy, a mom of 9, joined me to react next.

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tech also down to prison, the s&p down one%. now this. starting today kids in south carolina no longer need to wear a mask at school. republican governor henry mcmaster said whether a child wears a mask in school his decision that should be left only to a student's parents, the governor of south carolina. let's bring in rachel campos stuff he. great to see you. do you think other governors will follow suit? >> bravo to governor mcmaster. this is a brilliant idea. it is up to the parents to decide and to weigh the benefits between health risks that are virtually no for children and the psychological costs, we are starting to see are more and more, they're

worried about neuroticism, the fear factor not to mention the hygiene, the breaking out of our teenagers. i haven't seen the stocks yet but i venture to say clearasil stocks are up because those kids are getting a lot of acne from so much dirty masks for eight hours a day. ashley: never thought about that angle. the biden administration reversing the trump ban on pandemic aids for undocumented students, $36 billion in federal aid to students, regardless of their immigration status. you can have at that one. >> before we get to immigration status which is another thing let's talk about these universities who have done nothing during the pandemic to reach into their rich

endowments, harvard 40 billion, yale 30 billion, even state schools like the university of wisconsin have $3 billion endowments, we've given parents know break on tuition even though students are getting zoom classes, no gems open, sports canceled. they could have done more. wise the federal government, overcharging parents more money is beyond me. now that the biden administration is saying people who come here illegally can also receive those benefits is not right because we as you know from covering this very well from the border, we have a crisis and we are adding more and more incentives for people to come here illegally as we pile on the government benefits of doing so. ashley: we say it a lot, you are a mother of 9, god bless you. how many of your school-age kids, how many of are doing anecdotally?

>> i have been very fortunate, they go to catholic school. the ones who are in public i moved to catholic school so they are all in catholic school. i've been grateful to the catholic school system that they have been able to attend school but i am fighting with other parents in my to get the mask mandate removed because i think it is just causing emotional and psychological fear and neuroticism and all the things we talked about, we need to set our children free. i love the music you played, the tees on the way in, i want to break free, these children need to break free of these masks, make sure they come out of this pandemic as americans, not as chinese with all this submission and compliance. ashley: we wish you good luck with that. thanks, appreciate it. >> thank you, have a great day. ashley: you too. the cdc is meeting to vote on whether to authorize the pfizer vaccine for kids age 12 to 15.

this comes after the fda expanded its emergency use authorization earlier this week. aishah hasnie is in new york city. how soon could kids be getting the jab? >> reporter: that is a great question. in new york city as early as tomorrow it depends on where you live. right now only two states, delaware and georgia, have authorized use of vaccines on kids 12 and older, states like arkansas reportedly waiting for guidance from the cdc, expected a little later. at a senate committee hearing yesterday, doctor wall in ski was asked about this, what she think the vaccinating kids. listen. >> i am encouraging children to ask for the vaccine. i have a 16-year-old myself and i can tell you he wants to get the vaccine and he wants his life back, kids want to go back to school. >> will in ski was saying cdc guidance in summer camps could change with this new fda

authorization. a lot of folks have been critical of those strict rules like asking kids to wear masks at all times. it is also going to be important getting kids back into the schools. at the same hearing republicans grilled about taking advice from a big teachers union when putting together guidance to reopen schools. they blasted the agency saying it's been too slow and strict issuing guidance in general and americans are losing their trust in patients. >> we have unnecessary barriers to reopening schools, exaggerating the risks of outdoor transmission and unworkable restrictions on summer camps. why does this matter? it matters because it undermines public confidence in your recommendations.

>> back here in new york city mayor bill deblasio urging parents to hurry and sign up their kids to get vaccinated because this is the way to get back to normal. ashley: get them back to school. thank you, appreciate it and now this, we showed you a clip of this earlier, a teen struggle to figure out a cassette player, role tape. >> no. [laughter] >> open this. ashley: that clip now going viral. that makes me feel old. let's show you the rest of that. it is hilarious coming up. one of the hottest real estate markets in the country is a small city in idaho. we have a report next.

♪♪

ashley: a beautiful day in new york city, live look there, one of the many in the city, one of the many high-tech cities seeing a mass exodus. connell mcshane joins us from the other side of the country. it looks beautiful. that city just named the hottest real estate market by the wall street journal. it begs the question why are so many people moving their? >> it is a story about politics

as much as it is economics. going through this absolute boom when it comes to real estate, you start to understand it is a be a part of the country no doubt about it, these lake views that made a popular tourist destination but in speaking to realtors we sense that something has changed over the last year. >> the majority people are moving from california, a lot of us are politically based, idaho as a conservative state, we "quick with a lot of the other states, we've seen a lot of people move here from western washington in the seattle area. >> covid restrictions in places like seattle and los angeles left residents searching for an alternative, the single hottest emerging housing markets in the country, 40, 50% in the past year, the people we spoke to,

they are happy they did. >> they are wonderful and friendly, and we decided to make a change for her as well. >> we moved appear and these are the nicest people i ever met in my life. >> ryan and sarah mcdonald, they love it. kendall, california transplant loves the outdoors and things like that but what tied them together with the politics. they are frustrated in california. they say this is a better match for them. one side effect as prices are up so much affordable housing, people who lived here themselves a long time, something that has turned into a real concern in a small city like this. ashley: that is the problem but

these are the nicest people i ever met. that was heartfelt. great stuff. enjoy the beautiful scenery. connell mcshane in quarter lane, idaho. we have to play it again. tom cruise's a rant about covid safety on a movie set. that the rent roll. >> we are creating thousands of jobs! i don't ever want to see it again! ever! and if you don't do it you are fired! you are gone! anyone on the screw does it, that is it! ashley: that is it! he meant it! come in, susan, tom cruise speaking out about that rent. >> he stand by those comments. he took a lot of heat for the screening and unprofessional behavior at the time. he was speaking to empire

magazine, there was a lot of stuff getting emotional about during filming so he was thinking about the people he was working with and what is next for the movie industry, that is something that got heated. cruise caught a lot of flak from the press but he got a lot of respect and praise from his hollywood peers even if he was vilified by most other people. also making news by returning his 3 golden globes protesting the lack of diversity and the golden globes judges. that is what people sound like if they don't get their morning coffee. ashley: are you suggesting stuart varney perhaps? >> i was not naming names. maybe it is me. ashley: maybe. you've got to learn to treat people with more respect. >> who are we talking about? ashley: susan. tom cruise, not stewart.

youtube spending big bucks for tick-tock, laying out $100 million plan coming up and a small business owner in ohio so she just can't find enough workers, role tape. >> i have four positions that have been open for 6 or 7 months. i have hired two and they have been no-shows. one told me specifically wasn't worth her time. ashley: wasn't worth her time. that woman, laurie watson, will join me next. a lot more varney coming up. t e commercial real estate exchange. you see it. you want it. you ten-x it. it's that fast. if i could, i'd ten-x everything. like... uh... these salads. or these sandwiches... ten-x does the same thing, but with buildings. sweet. oh no, he wasn't...

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ashley: welcome back. let's take another live shot of del rio, texas with migrants making their way apart this part of the rio grande river. it was quite earlier with mexican troops on the other side of the border. they have gone and the latest batch of migrants making their way into the united states. it is remarkable, the number of people who have come through this supposedly closed border. let's look at the markets as well as we can, it has been a down morning no doubt about that. the dow off 340 points, down

for another one%, the nasdaq down 2% and the s&p 500 down one and one third. a selloff again today. the fear of inflation certainly having an impact. small business in columbus ohio that makes themselves american flags struggling to find workers. it is a familiar story. laurie watson joined me now, great to see you. you own the flag lady. tell us your story. >> i'd love to. hi, ashley. the story is, a hungry small business trying to work through a difficult situation. finding my path, my way, how to change my business enough to stay alive. in doing so, i do that with the help of the ppp money and all

that but what has been very difficult is the inability to find employees. i have been looking for four employees who were four months, unable to get the job filled. specifically in my retail shop i didn't expect this because there are people out there who want to work, i offered the job to two folks, one of them was just a no-show and she had been receiving stimulus and those kinds of things. the other specifically told me that by the time she takes my hourly rate which is well above minimum wage, pays taxes, pays for childcare and those kinds of things, she is making less then she is by staying at home. as disconcerting as that is for me i get it.

everybody is trying to do what they need to do in order -- ashley: i hate to interrupt. have you thought about offering incentives to try to get workers which other businesses have done? >> i have. it has been fun to listen to how people are trying to resolve the issue. i have not done it yet. that might be something i will do. stuart: it is something that has been repeated around the country. we wish you the best of luck. hard to compete with free money from the government. thank you very much, we wish you the best of luck. now this. we've been talking about this through the show, bring in susan lee. you have a viral video that will make us all feel very old. >> remember the cassette tapes and walkman from the 1980s? in 2021 it is a relic of history that confuses younger folks these days so check it out. >> there is like a little -- it

has got to go in. see those little things? like that. >> i thought that was pretty intuitive. in this retro era, record players, final, what about the hs? floppy disks, cassette players. flip phones, beta max and others. ashley: i remember my parents with 8 tracks, those huge things. thank you very much, thank you for reminding us how old we are. breaking news out of washington. congresswoman liz cheney reportedly will run for reelection in 2022 in next year's midterm, the only member of congress from wyoming. her announcement comes just hours after republicans removed

cheney from her leadership role over her criticism of donald trump. he will run again next year. she is remaining defiant. it is now time for wednesday's trivia question. what was the first toy to be advertised on television, frisbee, barbie, hula hoops, the answer when we come back. . .

(naj) at fisher investments, our clients know we have their backs. (other money manager) how do your clients know that? (naj) because as a fiduciary, it's our responsibility to always put clients first. (other money manager) so you do it because you have to? (naj) no, we do it because it's the right thing to do. we help clients enjoy a comfortable retirement. (other money manager) sounds like a big responsibility. (naj) one that we don't take lightly. it's why our fees are structured so we do better when our clients do better. fisher investments is clearly different.

♪. ashley: all right. we just asked you what was the first toy to be advertised on television? the answer? mr. potato head.

the commercial aired april 30th, 1952. it originally cost 98 cents. they made four million in the first few months following that ad. i never got that in the uk. i wonder if my parents didn't trust me with all the wood sticks. probably not. checking markets, we are at session lows. the dow off 446 points. kind of a repeat of yesterday. david asman in for neil my apologies again, it's yours. david: mr. potato led was a wonderful toy. just got a potato. easiest toy imaginable for parents. you buy a potato. you stick things in it. it was a wonderful idea. thank you, ashley. welcome to "cavuto: coast to coast." i'm david asman in for neil cavuto. a jam-packed hour ahead as we bring you the headlines coast to coast. consumer prices shocked analysts in the biggest spike in more