behind and the children who have grown up without parents because of that sacrifice that was made, so i'm really pleased that this was able to return to the national mall. it's just a reminder that we cannot forget those who sacrifice so much everyday. maria: yup and that's right thank you so much to the families of those fallen heros. patrice lee onwuka, mercedes schlapp great to be with you, have a good day, we'll see see you tomorrow "varney" & company begins right now. stuart: good morning, maria, good morning, everyone. we're coming back from a long holiday weekend where inflation was obvious. at the gas station, at the grocery store, at the restaurant , price hikes were staring you in the face, but the president, hold on, he's got a plan, and the wall street journal he outlines three points to tackle inflation. number one, he won't interfere with the fed, number two, he meets with jay powell at the white house, he'll make things more affordable for families and third, he'll tackle inflation by

cutting the deficit. my opinion? it won't work. more on that later. the plan arrives when energy price inflation takes off yet again. gas hits yet another new record high, you're looking at $4.62 that's the average nationwide and look at california, 6.16 per gallon in the golden state and as europe agrees to stop accepting oil tankers from russia, the price of crude goes straight up, $119 a barrel as of right now. that means higher gas prices still to come. not going down well on wall street. nice bounce last week, but a dip this tuesday morning. the dow is going to be off about 200 points at the opening bell a smaller loss for the s&p and the nasdaq but red ink across-the-board, we've got a solid bounce for bitcoin, investors must be breathing a sigh of relief after weeks of losses. bitcoin now firmly back above $31,000 a coin. interest rates are holding well- below the 3% level on the 10 year treasury, 286

although the yield is rising you're still at just 286. next case. top gun, the sequal, it debuted and got good reviews and brought in a ton of money. was it realistic? don't know i didn't see it, but we have a top gun trainer later on the show. a very well-known political report makes nightmare reading for democrats. it predicts 20 to 35 house seats swing to the republicans in the mid-terms which are just five months ago. it is tuesday, may 31, 2022 "varney" & company is about to begin. it's a beautiful day ♪ stuart: yes, it is a beautiful day, you're looking at new york city, where believe it or not it's going to go up to 95 degrees today. lauren: i'm not ready for that. stuart: that's hot. that's summer. just in, the latest read on home

prices, good morning to you, lauren. break it down. lauren: well, they went up by another record amount, 21.2% year-over-year, that is the largest annual gain we've ever seen, so this is backward looking in the fact that it's in the month of march but we did get new home sales and existing home sales and in those reports that was for april so we saw a record high for new home sale prices, the median at 450,000, so point is yes, the housing market was still stronger at the start of the year, but past march we continued to see prices go up, and if you live in tampa, prices are up 35% in the past year. stuart: that's astonishing. lauren: that's the number one most expensive market in the country in terms of the growth of home price acceleration. stuart: now, let's get to the price of oil, because we're really seeing a gain there a few moments ago it was $119 a barrel now it's 118.68. the europeans have officially said look, we're banning a lot

of russian oil. not all of it, but a lot of it. is that correct? >> they're blocking russian oil that arrives by sea, not by pipeline. that was a big deal, it's a concession to hungary which is landlocked so they need the pipeline. no sanctions on russian gas, so russia is aware of the differing of opinions within the eu over what to do with russian energy imports, and they'vevery exploited that. they say fine. we'll find other buyers in asia, for instance and they will but they have to sell it at a discount and they also need to take into account the infrastructures isn't always in place to move their oil to other countries. stuart: okay, so there's a shortage of oil implied, because the europeans are not going to take russian oil. that may mean a shortage, therefore, the price goes up. lauren: and that's wti. if you look at brent it hit the highest level at nearly 130 earlier today, $130 a barrel haven't seen that since 2012. stuart: which means gas prices go up more.

lauren: going to continue. stuart: now, president biden wrote an op-ed in the journal this morning title titled "my plan for fighting inflation." its got three parts. take us through it, please. lauren: point number one the president writes i won't meddle with the fed. okay fine so why are you having a meeting today with jay powell. if you're encouraging independence and say i trust you to combat inflation, why have the meeting? point two. the president calls these practical steps to bring down high prices if congress passes his spending plan, so you could see things like and you're looking at them on the screen, more affordable child care and drug prices and point number three, he wants to cut the deficit and do that by raising taxes. no mention of spending, right? lots of mention of transitioning to a more stable economy, lots of blame on putin and the pandemic. stuart: nothing about energy inflation, energy independence, not a word. lauren: nothing no, but about the transition to a greener future that's what you did hear

a lot about. stuart: let's have a look at futures pointing south especially for the dow up about 200 points this tuesday morning, kenny polcari is with us. look, inflation is obviously running hot. jay powell goes to the white house to meet with the president that's the backdrop to the market action today. what does all this mean for the markets? >> well listen i also think you have to throw in a comment from chris waller who became very very aggressive talking about he doesn't see any pause in rates he sees 50 basis points for every meeting until they get it under control so that's left it wide open bringing the whole conversation back to 3.5% by year-end so that's weigh ing more on the markets in addition to everything you said, but to biden's op-ed in the paper today, you know, i don't know, you can't eat drugs, right? you can't feed your family on drugs, so lower drug prices at the moment doesn't really help what people are feeling everyday when they go to the grocery store and the gas station, it doesn't help, right?

stuart: right. so, you think there's more selling on wall street, still to come. >> so i think there's, these bear market rallies we're going to see them but i think once people refocus again on what valuations are going to mean, where interest rates are going to go they are going to pressure prices. now look, i do think that 3,800 appears to be a place where they are willing to defend it, right? we've tested it twice, we need to test it a third time, three times is always a charm. if it holds the third time, then i would suggest that that's probably a place where we're going to find some, like a floor , where the markets going to try to stay but if we pierce 3,800 then we're going to probably 3,600 but i'm not going there yet. i'm being optimistic at 3,800. stuart: it's now at 4,100. you think it's going to 3,800 and that's the optimistic point of view. we're going to leave it right there, kenny because you answered the question. is the selling over? the answer is no, it's not. all right kenny, thanks very much indeed. see you soon. let's go to politics because the

cook political report revised its forecast for the mid-terms. they now see republicans gaining up to 35 seats this fall. matt schlapp with us this morning. all right, matt. if there was a gain of 35 seats would that be a disappointment to you? >> oh, my god, no. stuart this is being mischaracterized by so many in the media. they are saying well, in the first term for a newly- elected president they always take a hair cut at that first mid-term with these congressional races but remember , stuart, if the republicans have focused on that majority in the house a little bit more, we would have taken it i think we were just six seats short last cycle so we had a huge pick-up even though donald trump didn't get a second term, we had a huge pick-up in the house. this will be two in a row. this is quite an indictment on these woke left wing policies of the democratic party. stuart: there's a couple of issues which have just raised to the surface recently, guns and abortion. are those winning issues for the

democrats in november? >> no. you know, 25 years ago, these hot button issues usually put republicans on defense, because it was all about a scramble for those voters in the middle and of course the politics in america has changed. as the democratic party has latched on to socialism for the very first time in our 240 year history, what you have is sense all people in the middle who might have different opinions on things like gun control and abortion saying you know what? i want to go back to this idea of america's a good place, so what republicans now have to do is solidly stand up for the basic principles that holds their coalition together. two of those are supporting the constitutional principles that hopefully will endure when the supreme court overturns this terrible unconstitutional decision in roe vs. wade and allows states to regulate it where blue states will, you know , mostly have abortion be legal and red states will mostly ban abortion and the second

amendment which is unusual in america. it's in our law and you can't change that second amendment without changing the constitution itself. stuart: so you're going to campaign on the basis of constitutional rights and america being a good place, not a bad place, that's where you're coming from? >> yeah, you have to defy woke politics and number two, republican party needs to finally do the things that' very been promising to do for 50 years and one of those was to make sure that abortion would go back to being regulated by the states. stuart: got it. matt schlapp thanks for being here, interesting stuff indeed and we'll see you again soon. all right prime minister trudeau in canada, he's announced a new crackdown on assault weapons. what's he doing? lauren: he's proposing new rules that would ban the sale and ban the transfer of handguns. it would ban the possession of military-style assault weapons and ask owners to turn them over to the government. trudeau cited mass shootings here in the u.s. for canada's

most ambitious attempt yet to tighten gun control. gun control is not en shrined in the canadian constitution as it is here so there is more of a willingness to do that up north. stuart: now, what did president biden say about .9-millimeter pistols? lauren: this is the most popular handgun in the country and he suggests banning them and he says, "there's no rational basis for them in terms of self- protection and hunting, and he added that the constitution was never absolute when it came to the second amendment." there seems to be a bill to do something now, senator corn an is holding a zoom meeting today, but whatever they come up with a has to pass but b, needs to change the outcome that would have prevented shootings we've seen recently. stuart: fair enough. still ahead, well check the futures the market opening is just ahead down 200 for the dow industrials at 9:30 eastern this morning probably and coming up speaker pelosi's

multi millionaire 82-year-old husband arrested for driving under the influence. we have details on that. it was truly bizarre, a man disguised as an elderly woman in a wheelchair smashes cake on the most famous portrait in the world that be the mona lisa that story is coming up for you as well. hungry eyes, one look at you and i can't disguise ♪ it's easy to think that all money managers are pretty much the same, but at fisher investments we're clearly different. (other money manager) different how? you sell high commission investment products, right? (fisher investments) nope. fisher avoids them. (other money manager) well, you must earn commissions on trades. (fisher investments) never at fisher investments. (other money manager) ok, then you probably sneak in some hidden and layered fees. (fisher investments) no. we structure our fees so we do better when clients do better. that might be why most of our clients come from other money managers. at fisher investments, we're clearly different.

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philadelphia international airport, where it's going to go to 97 degrees today. i mean, super hot. 95 in new york, 97 in philly. listen to this. thousands of travelers face delays, cancellations on their flights this holiday weekend. how many people had to change their flight? lauren: well, yesterday alone, in the u.s. , 422 flights were canceled. 4,000 delayed, just yesterday. if you're looking at the full four-day official memorial day weekend, worldwide we're talking 7,000 cancellations, so stuart it's a lot of people that had to change their plans. delta fared the worst if you're keeping track, why? well, we know the reasons, but the airlines like to blame air traffic control, and the weather stuart: well, i flew back into newark yesterday, bright and early and couldn't go to the gate because they didn't have a guy or a lady to do this. they were short on staff. ten minutes we had to wait. lauren: just 10 minutes? you got off lucky.

stuart: so we could get off the plane. not the end of the world. let's talk about -- lauren: minor inconvenience. stuart: gas prices nothing minor about that. new high today, $4.62 per gallon that's regular across the country. now grady trimble is in illinois , where that state average just topped $5 a gallon, just happened in illinois. take us through the pain, grady. reporter: well, stu, this station is at 5.49 almost 5.50 and patrick dehan with gas buddy called yesterday, the calm before the storm so if that's true then the storm is here today. oil prices climbed on news that the eu will cut most russian oil imports by year's end, of course higher oil prices will translate to prices at the pump increasing. the national average for a gallon of gas you mentioned it 4.62 that's a buck 50 more than we were paying a year ago a 50% increase in just a year's time. experts are now saying the

likelihood of $5 a gallon for a national average this summer is increasing. illinois you mentioned it now the seventh state with an average over $5 joining washington, oregon, nevada, california, alaska, and hawaii. what we are starting to see though, stuart, is what the experts in the industry call demand destruction. that means prices are getting so high that drivers are now saying you know what? i'm going to drive less because i don't want to pay these prices , overtime in theory that should bring prices down but the experts are expecting a big surge before that happens. stu? stuart: looks like we're about to see it. all right, grady thank you very much indeed. look whose with me now, stephen moore. all right, stephen, welcome back , good to see you. look we've got a bad case of energy price inflation. will consumer price inflation, do you think it's going to hit 10% this summer? >> hey, stuart. well first of all, there were some gas stations in the country where you had $7 a gallon.

stuart: yup. >> that's $7 a gallon in some areas. now, that last point that you all were just making about how this is going to reduce demand for gasoline, because obviously, the price goes up, people useless of it. that's exactly what the people want. i said it a hundred times on your show. the biden people want high gas prices, because they are so obsessed with climate change, they think the way to save the planet is to make the gas price higher and higher and higher so nobody can drive their cars. this is orchestrated, this didn't happen by accident. now, a big meeting today as you know, stuart, i believe it's supposed to be today, this afternoon, between jerome powell whose headed to the oval office to talk about how to solve this inflation problem with the president and the president came out with three ideas over the weekend, all of which are lousy ideas. number one he wants more price control, stuart, more price controls we pride that in the 70 s, number two he wants more green energy subsidies which is what created this

crisis in the first place and number three he wants to go after companies for price goug ing. i don't remember all this price gouging when trump was president stuart: right so i'll repeat the question, do you think we're going to get to 10% consumer price inflation this summer? >> no. stuart: not 10%? >> no, i actually think we're going to be somewhere in the 6-7 % range for inflation, which means i think we've plateaued and i think it might actually come down a little bit and the reason is i'm looking at the money supply, stuart, and the amount of money that the fed is flushing into the economy has slowed bit and ultimately i do think that's going to mean a little bit of relief from inflation but i think we're still looking at inflation at, you know, 30 to 40-year highs, and until we get the spending under control in washington, and this debt under control, i think they are going to see another 18 months or so of very high prices but not 10%. i don't think it's there yet but by the way, what did you say the price of oil is now, $110 a

barrel? 120? stuart: no, it's $119 a barrel, 118.89 that's for west texas. >> yeah, stuart that does translate into about $5 to $5.50 a gallon at the pump. stuart: that's why i say energy price inflation is taking off as we speak, and i don't see why that can't translate into a take off for consumer price inflation as well. >> it may, especially, stuart, because look what's happening, the grain prices, wheat prices, fertilizer prices. go to the grocery store, i tell you every week i do the show people are mad at me when i say inflation is seven or 8% and they say no i'm feeling 15-20% inflation because of the essentials people have to buy are rising so quickly. i was in a conference of people who are the auto dealers, and they said, yeah, they can get you a car in three or four months, people are paying five to $10,000 more than sticker price to get a car.

that's inflation. stuart: i've seen it. there's a real shock this past weekend, when you are confronted with the price of gas or the price of bread or whatever it is. you get that shock. you get that unnerving feeling that it's getting out of control that's what gets people worried. stephen, i'm terribly sorry i'm out of time but we'll see you again real soon. that's a fact. check futures please we're still in the red but not as bad as it was a few minutes ago down 170 for the dow, just 18 down for the s&p, 13 for the nasdaq. the opening bell, next. ♪ living with metastatic breast cancer means being relentless. because every day matters. and having more of them is possible with verzenio.

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we need amazon, we need microsoft, we need apple to stabilize and get back to new highs if we're going to hit new highs in the overall market. stuart: would you say they've stabilized at all? >> i would say they have, you know, and apple has really held up very well, but the one i have my eye on stuart is amazon. next week, amazon is going to start trading about 115-120 after a 20-for-1 split so they lost a third of their value in the last month so they rebounded last week, but now, we need amazon to stop this downtrend and start moving higher and i'll argue, stu, that the earnings are there to support these stocks at higher prices. they're just too cheap right now stuart: do you consider things like energy price inflation, or the president's plan to tackle inflation? when you're thinking, when you've got your meetings in the morning figuring out where you put your money does that backdrop influence you at all? >> well, of course, it does, stuart, and you know, you talk about a plan out of washington. you know, we're kind of flying blind here. we don't really have a plan.

you know, i think that wall street is comfortable with the fed, now, and what the fed is doing. we've gotten over that shock of the fed, but really, i think we need leadership out of washington. you know, if the president came out and just talked about the potential for drilling here in the united states, you would see oil come down from 120. oil is the easy one, stu. at $120 a barrel, that's a tax on every american out there, so if we could just address that one part of the economy, i think you'd see a big rebound in the market. stuart: but you know he's not going to do that. there's no way on god's green earth that's going to happen. it's just not going to happen, is it? >> i agree and i heard your last point about the administration wanting to push us into this new green deal , but at some point, i'm hoping that cooler heads prevail , because it's just bad for every black, white, blue, green, it's bad for all americans if oil keeps going higher. stuart: all right, good stuff, mike murphy, i hope to see you again real soon. see you later. >> yes, sir.

stuart: we've got about what, 20 -odd seconds to go before we start market trading this week. it's tuesday morning, may 31, last day of may. >> [opening bell ringing] stuart: whether that means anything for the market you've got the last day of the month i'm not entirely sure but susan li will tell us what's going on in just one moment. let's open the market first, seven, six, fire, here we go. i'm expecting red ink but not a lot of it when we see those numbers pop-up there you go. we're down 200 right from the opening bell, and we're right at the 33,000 level on the dow industrials, and the vast majority of the dow there are in the red i see only four winners and they are probably energy companies too. the s&p 500 down one-third of 1% at the opening bell. the nasdaq composite actually ever so slightly higher, a fractional gain for the nasdaq, .07 up. big tech all on the upside except for meta and microsoft, they are a little bit down this

morning. not a huge move by any of the big tech right there. the price of oil, that's making news, 119 bucks a barrel. the european union announced a ban on a majority of russian oil imports, susan is with us. i presume that energy companies are doing well after this. >> yeah, so of course that's on oil prices we're looking at a 12 -week high for west texas, this morning, if you look at the forward contracts, which is how most of the oil markets trade, july prices are looking at 118 right now for u.s. crude, 123- plus for brent. isn't that, that's pretty high. stuart: that's up there. >> it's still off believe it or not i found this shocking it's still off that 130 that we saw in early march when the ukraine war first broke out 130 is the highest price for a barrel of oil we've seen since 2008 so oil companies leading the way today, the full year and i'd say the past year, and you can see why warren buffett now owns $25 billion in chevron, and also why your airfare is so pricey these days. look at the jet fuel costs,

number one expenditure for airlines for the counter trade as we have oil majors rally airlines, travel stocks down because they have to pay out more to fly those planes. stuart: that makes sense. china stocks, we've got some changes in their restrictions in shanghai that's making a difference. look at them go. >> so shanghai said that all manufacturing can restart on june 1, so that's good news for international companies as well that goes tesla, apple, nike, also local ones, and really it's great news for the global economy when china's reopening, shanghai in particular as it's still the manufacturing capitol and they are trying to stimulate offering tax rebate, subsidies for electric cars, red tape in order to ease up on the supply chain that crunches at the port and to build new projects there, so it's not direct spending, not direct dollars from the government but there are estimates that beijing cutting interest, well they aren't cutting interest rates but doing everything else besides cutting interest rates could stimulate maybe $5 trillion in stimulus. stuart: but they've not stopped

the zero-covid policy. that's still very much in place. >> and but they are arguing because covid numbers have come down, they are able to now lift the restrictions in shanghai and beijing but you can imagine that with xi-jinping, the president there, given this is a very politically-sensitive year for him, where he's going to get a new five-year term, being re-elected as they call it, he wants the economy to be, to do well, right? in this type of political environment. stuart: it'll stimulate it. >> correct, 5 trillion is a lot of money but remember back in 2,008 year and i was there in the asia pacific back then, they spent $600 billion in direct dollars, this time around it's a lot more subtle but probably just as powerful. stuart: okay how about the electric vehicle market, the chinese, i see neo up 7%. >> that's because morgan stanley added tactical playlists but look at tesla as well also benefiting from the shanghai reopening more rebate as i mentioned for electric car buyer s in china, and you have

the chinese ev makers neo, so i think morgan stanley said that in their view, neo hsbc should double from here, $34 is their call that's pretty good upside, you also have mizuho calling rivian and tesla attractive at these levels and both a buy in their view especially with oil prices right? we just talked about that. stuart: sure, after oil goes up gas goes up electric producer vehicles should look pretty good in return. now activist investors nellie nelson peltz joined the board of unilever which is agented consumer products company. >> i don't see it as big as you do. stuart: but it's a dutch company that's why i know it quite well. what's the significance of him being on the board? >> okay, so when you get a board seat and you're an activist investor of course you're angling for some change and then we know triand fund management which is nelson peltz fund has 1.5% in un ilever makes the largest

shareholders and it makes dove soap so what he wants to do and some suspect he wants to maybe push an angle for a split as he thinks there's more value in the consumer goods sector, maybe new leadership since we know that unilever has underperformed competitors like proctor and gamble and now you have to remember that trian also helped a turnaround in p &g. remember when peltz got a board seat back in 2017 and as a result have you looked at p &g numbers this year? stuart: they're good. >> best quarterly sales gain in decades to start this year. stuart: nelson peltz knows what he's been talking about. >> he's also doing activist on wendy's. he upped his stake like we just talked about. he has a lot of companies to oversee. stuart: he's got a lot of money. the movie companies have a look on the left-hand side of the screen. the top gun sequal sold a lot of tickets this weekend. so do you think the summer blockbuster has made a return? >> i think if you look at how

the theatre chains are performing, yes. it's proven also that top gun and depending on the movie, you can bring back fans of all ages back into the theaters, and that's good news. here are the stats and tell me what you think of them because i extrapolated as if the older movie fans were back in the theaters not just the young ones watching spiderman but 29% of tickets sold over the weekend before 3:00 p.m., a third of the screenings were between 3:00 -7:00 p.m. only 11% of the ticket sales were after 9:00 p.m. stuart: the implication is that older people go to the movies early, either in the morning or the early afternoon. that's the implication right? >> do you think that's a wrong extrapolation? well here is what i was thinking too also in high inflationary times do you want to be paying $ 75 for two tickets and popcorn at the theatre? you get cheaper seats and ticket prices, so that's what i was thinking. stuart: and you get a discount for being a senior as well. it's always worthwhile. >> i want to know paramount global, did you see the wall street journal report over the

weekend and the new york times report, $2.6 billion stake that warren buffett owns in paramount because they are going alone and top gun has proved that maybe shari redstone and that city is paying off. stuart: did you see the movie? >> no but i really really want to. i think it's the first time in a long time where we've had a movie attract everybody from all walks of life and ages. stuart: and ages that's important. all right, susan we'll see you again thank you very much, dow winners on your screen, left-hand side. chevron, tops it of course because oil has gone to almost 120 bucks a barrel. the s&p 500 winners dexcom, marathon, apache, energy companies dominate and the nasdaq composite again dexcom what do they do? >> make these devices to track your glucose levels for diabetic s so that's important. stuart: okay nice to see them upfront there and tesla was on the list too but look the dow has opened this tuesday morning with a 400-point loss, 1.25% loss that's quite a reversal from last week. the 10 year treasury yielding 2.84%. gold at 1,856 per ounce, bitcoin

is back above 31,000, 31, 600 to be precise, oil 119.15, nat gas actually down a little it was earlier this morning, but still above $8 per million british thermal units. as for gasoline that's the big story along with oil, 4.62 is the new high for regular nationwide. and in california you'll pay 6.16 how about that? coming up, tom cruise still has the need for speed, watch this. >> combat on a level nobody has ever seen. >> not even him. >> you think up there you're dead, believe me. stuart: okay, so how realistic is the top gun sequal? we'll find out, because we're going to ask a real graduate on the show, next hour. look at this , no, those are not store employees clearing out the shelves they're thieves filling garbage bags with makeup and walking out. that is california.

president biden lays out his three-part plan for fighting inflation in the wall street journal. what will larry kudlow say about it? i'll ask him, he's next. ♪

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♪ i can't get no satisfaction ♪ stuart: clearwater beach, florida 74 and sunny. that's south florida, 74 degrees in new york city it's going to be 95 how about that? and do take a look at the bottom right hand corner of your screen , please. that's the dow industrials. you're down 1.3% in the very early going this morning. that follows a bounce last week, so the dow has now dropped below the 33,000 level, and it's down quite sharply down 1.3%.

now, earlier this morning, president biden unveiled his plan to fight inflation. he authored an op-ed piece in the wall street journal there it is. he laid out three points basically number one, he won't interfere with the fed, number two, he'll make things more affordable for families and three, he will lower the deficit by taxing companies and billionaires. larry kudlow with us this tuesday morning. will that work? is that a real inflation- fighting plan? larry: no, it's not an inflation-fighting plan, although, i'll give some credit. if he leaves the fed alone, the fed has a lot of tough work to do. that's fine. he takes a cheap shot at trump, of course as he always does. trump objected to fed tightening in 2018 for rate hikes when the inflation rate was less than 2%. i mean, i think president trump was right about that, but then, biden goes on to say the

recovery stalled. well the recovery hadn't stalled the recovery was going at 6%, and that's why the stimulus package in march of 2021 was uncalled for and helped launch inflation and here's my biggest critique. there's no effort here, no discussion whatsoever, to freeze federal spending, at least domestic spending, which is something they've got to do if they want to stop inflation. in fact, he talks about, you know, child kara longses, and elderly allowances, he wants more spending which is going to make the problem worse. he takes pride in the deficit reduction. the deficit reduction, um, this year is about running off the emergency programs, high inflated revenues, and by the way, the trump tax cuts have stimulated corporate tax revenues enormously, so that's not going to work either, and then the other stuff is look, spending is a shared gdp

according to the latest cbo report, stu, is above the 50 year average, 20% of gdp, the debt-to-gdp is going to be 110% at the end of the 10 year window, so there's no budget restraint. at the heart of this plan, there's movement towards a green economy. a fossil fuel, fossil-free economy. that's what he's trying to predict. that's his word "transition." we're going to transition to slow growth, he says. well, yeah, we're going to transition to a permanent recession in my view if we have something called a fossil-free economy, he wants his green economy, he wants more subsidies and tax credits for greenies. that's not going to curb inflation, that's going to inflation increase and it's going to slam down growth. stuart: just a couple minutes ago i was talking to our colleague stephen moore. i asked are we going to get 10%

consumer price inflation this summer and he said probably not. it was still at 8%. what do you say? 10% consumer price inflation this summer? larry: well, look, i think the range of inflation is six, seven, or 8%. i think that's about right. sounds like steve got it right. that's three-to-four times the fed's 2% target. i was very interested in what fed governor chris waller had to say, that the fed's going to have to have a much more restrictive policy, that their target rate is going to be, you know, so-called above neutral. i mean, look. the fed' basic measure here looks like it's about six or 7% , so you know, you're talking about a seven or 8% fed funds rate. this is going to take several years. the biden plan does not give any help on producing more oil & gas they want to stop fossil fuels,

that's going to make it worse. stuart: that's at the heart of it. larry: there's no freeze, yes, there's no freeze on federal spending, and that's going to make it worse, so to me, his op-ed piece is just more of the same, and we're going to need to add some point of belt and suspenders approach to the economy and the stock market over the next five, six, seven months but they are coming. stuart: i'll be watching you at 4:00 this afternoon for more analysis of the plan from the president. larry we'll see you later. larry: yes, thanks. stuart: this will blow your mind boston university just made the largest tuition increase in 14 years. okay, just for tuition, how much for one year at that university? lauren: it's $61, 050 a 4.25% increase. i have to confess, i thought that was like the whole thing, the full cost of going there including room and board because $61,000 is a lot of money. it's not!

it's just the tuition, housing is more than $11,000, board more than $6,000 so it's going to cost you almost $83,000 to attend one year at boston university. stuart: that's extraordinary. lauren: i've never seen anything like that. stuart: that's crazy. lauren: you just scratch your head and the president of the school says well we're increasing tuition so much and it's still because inflation is such a problem, that doesn't offset our other costs. not even close. stuart: they got a problem. lauren: big one. stuart: thanks very much, lauren programming note an all new episode of "american built" airs tonight. i've got a sneak preview for you , roll it. >> the trend will choke new york city to death. >> private entrepreneurs. >> it was a huge liam wish us project. >> against a corrupt political machine. >> it's serious. >> they risked everything. >> it led to terrible accidents >> dangerous, noisy, and

destructive. stuart: to build one of the largest rapid transit systems on earth. >> it was complete chaos for four years. stuart: the new york city subway yeah, chaos for four years, that's "american built" for you tonight 8:00 p.m. eastern on fox business prime. and then we have a new study. guess what? it finds more than three-in-four millennials blocked family members on facebook because of politics, what's going on? they want to hear different opinions, why not? america's crime crisis far from over at least 43 people shot just this weekend in chicago alone, we'll take you there for a full report, next. meet jessica moore. jessica was born to care. she always had your back... like the time she spotted the neighbor kid, an approaching car, a puddle, and knew there was going to be a situation. ♪

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chicago, we had two of those including one that took place early sunday morning, outside of an elementary school, where five people were shot including a 16-year-old girl. police say a fight broke out in a crowd that was marking the anniversary of a shooting that killed a teenager there two years ago. another of the weekend's mass shootings took place in chattanooga, tennessee, sixteen agers were shot saturday night in the heart of the city after a fight broke out. police say most of the victims were simply unintended targets and the mayor pointed the finger at illegal guns and parents. >> it's ridiculous that i even need to publicly state that guns have no place in the hands of our kids, and that children shouldn't be wandering around in the middle of the night without supervision. reporter: in new york city, police are searching for this man dressed in all black and wearing a mask who got off a bike, pulled out a knife and chased down a random person thursday afternoon, slashing them multiple times in the back

and on the arm. police say the victim did not know the attacker. so far this year, in chicago, across-the-board, crime is up by almost double-digits; however murders and shootings are actually down slightly from a year ago and city officials are expected to give us an update this afternoon. stu? stuart: all right, garrett thanks very much indeed, we'll wait for that update. next case, still ahead, kellyanne conway, kt mcfarland, lisa booth, joe concha the 10:00 hour of "varney" & company coming up. ♪ if you invest in the s&p 500 your portfolio may be too concentrated in big companies. this can leave it imbalanced and exposed

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stuart: ac/dc shrieking away at 10:00 in the morning? the markets down. good morning, it is 10:00 eastern, 300 on the dow, 120 on the nasdaq composite, last we have to bounce not following through tuesday morning, quite a bit of selling.

the price of oil now at $118 a barrel, oil going straight up, gas prices will rise in the future. the yield is 2. 5%. we have some upside movement for bitcoin, back to $31,400 a coin reversing some of the recent losses. consumer confidence just got the latest numbers. lauren: it was expected to decline for the second month in a row but it rose 6.4 but that is down from april's reading of 108.6. stuart: it came up seconds ago, the markets observing and digesting it. not much change after was released. inflation news is not good.

whether we hit peak inflation, as of this moment we are confronting price hikes covering a shock. sound like we are spiraling up. makes you uneasy. we are not getting much assurance from the white house. in the wall street journal the president offers, quote, my plan for fighting inflation at it has 3 points. number one, leave it to the fed. number 2, make things more affordable. that means big spending. taxing businesses and billionaires, that is the plan. it will do nothing to bring inflation down now or in the future. it does not address the need to raise america's energy production. this president is in the grip of the far left, socialists believe you bring inflation down by spending another trillion and raising taxes on businesses and billionaires. if this is the plan we are all in trouble. we will see people pulling back there spending when they can't

take the price hikes. that will slow the economy. stagflation will not be pretty. this is what you get when the government spends by the trillion, the federal reserve prints money and the greens run energy policy. second hour of varney just getting started. stuart: we need scott schelladdy. what do you make the president's inflation fighting plan? >> it is not a plan. it is not a plan. use that a lot but i will, the consequence you get when you vote against something and not for something. america voted against donald trump and not president biden and they may not like it.

there is no plan about inflation. with energy prices rising with natural gas over $8 approaching 9, the oil up one hundred 20, these have gone up since the last inflation rating. the energy price rise could be canceling out fed rate hikes which might make them do more to get in front of inflation. it is a slow grind higher. there is no plan, there is only one plan. total and utter chaos, a plan to have no energy policy, to not back the police, that lets cities run wild, that is the plan. they are not that stupid. these are all part of the picture. how can you turn your back on immigration. how can you turn your back on energy? they are because they know what they are doing and hiding in plain sight. last week, he said this is going to be a painful

transition. this is what happens when you vote against something and not for something. stuart: if he was a commodity trailer, since then, inflation, when it is speaking or leveling off or coming down. >> we are into way whether market so we will have the swings and roundabouts. this is where the input prices have gone through the roof. think of mandates about going to electric, you have a farm. how are you going to change your tractors to electric tractors? how are you going to charge those implements. when you for something on people and not let them make the sale themselves that is call the revolution. this is an energy revolution and that doesn't work, when you force people into doing something they don't want to do they don't get there in time

and whatever they are leaving like fossil fuels go through the roof in price, we have these revolution, has to be an evolution. make the sale to the american revolution, and not move on their own. stuart: in the future, got to use an electric chainsaw to take down a 200 foot tree. ever tried that? >> try telling a mountain in colorado with an electric truck right now, we are not there and there are wild numbers to transform america into being able to charge the car or truck wherever you want. it will cost tens of trillions of dollars to get that done. to make us go bankrupt and nobody driving in. stuart: we will end it at that point. a hard break, see you later. gold is moving 7% higher.

lauren: and monday on tuesday morning. it is down. stuart: credit suisse down, reuters, for options to strengthen its capital. credit suisse could be trapped in a downward cycle of limited growth so do they need money is the question? stuart: back to speed on retailers specifically american eagle, down 9%. lauren: they cut the price target from 20228, they don't think, this is a team shopper for the most part. >> there's a worker shortage. it will carry on into the summer. what is shutdown?

lauren: feel like the summer is going back to normal but it is not. the restaurants might have shorter hours. in phoenix look at public schools fewer than half are open. even though they offer $2500 bonuses but what about college kids. stuart: i don't get it. lauren: people are not willing and available to work. stuart: consumers could see a lot of discounts because stores have a lot of inventory. lauren: in a way, they spend so much money, making consumer demand to hold up. you heard the conference call after earnings reports, furniture, kitchen appliances,

urban outfitters has more clothing and best buy and walmart, they over order to, now they have access, it is good for us, t.j. maxx and burlington. stuart: i need a dose of politics. the midterms look bleak for house democrats, where biden won by 10 to 15 points those people are in danger of losing their seat, he looked who is here, kelly and conway joins us. the cook political report says republicans could pick up 22 even 35 seats in the house. >> hope they are conservative, limited government. barack obama famously refer to the losses in 2010, 63 seats at the, quote, shellacking. and suffered 52 seats, lost control, lots of governorship and state legislatures.

people closer to home, and regulating me. we are not focused on the quality of the candidates that are running. and not a single incumbent lost his or her seat in the house. stuart: not one? >> not a single incumbent lost and 15 seats went from blue to red. every single one of those seats under leader mccarthy's leadership went to a veteran, female, or minority or both of the above or two of the above. remarkable who is running as a republican and we see that in 2022 already. i was going to say a lot of what rob said. when you don't have an agenda. when you are saying but trump or i am the other guy, nbc news has a great article about a white house adrift.

they are blaming america for america's problems. they want americans to believe what the white house says and not what americans see at the gas pump, sitting in shipping containers in the ocean, what they see with a shortage of infant formula in the country they see putin and ukraine, all the crazy things that have generated chaos and crisis and people know which party is in charge, gallup came out with the account of conference measure, plus 100 does positive 100 and minus 45, keeps going down. what does that measure? gallup measures how you feel about your current economic state and how you project it, keep it quite pessimistic. stuart: your book is called here's the deal. in your book you talk about a reporter contacting your daughter. do you think the media treats the children of republicans, you are a republican, different a the way they treat the children of democrats? >> is the pope catholic?

is your name stuart varney? yes and yes. nothing like this ever happened to a staffer. if you need any evidence riddle me this. in the late summer and early fall of 2,020 my 15-year-old's daughter was trending on social media and 50 one-year-old hunter biden, son of a former vice president who was trying to be and is now president was completely comforted and hidden out of view. what happened to the new york post? they lost twitter privileges for two weeks because they dared run a story about hunter biden's laptop, 50 one intelligence professionals said russian disinformation. without even seeing anything about it. it is a double standard, a quadruple standard because claudia's father is on social media making my work life uncomfortable trying to separate me from my job.

and more prudence than she and her siblings and all teenagers than the adults covering her. there should be standards no one is contacting 15-year-old child who can't go to a movie or drive or vote or get her ears pierced without a parent, without trying to contact her parents if at all. stuart: quite right. congratulations on the book. we appreciate it. congressman adam kinsinger supports raising the minimum age for gun purchases. >> raising the age of gun purchased a 20 what is a no-brainer. we think the human brain develops and matures a lot between 18 to 21. stuart: he is a republican. will more republicans support that idea? we will take that on. the black sea blockade from russia continues to constrain world food supplies. mike tobin will report from ukraine.

without sending long-range rockets, kt mcfarlane weighs in on that one next. ♪♪ leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire for investors who can navigate this landscape, matching your job description. leveraging gold, a strategic and sustainable asset... the path is gilded with the potential for rich returns.

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so you're covered. on-premise and in the cloud. you can run things the way you want —your team, ours or a mix of both. with the nation's largest ip network. from the most innovative company. bring on today with comcast business. powering possibilities.™ stuart: plenty of red ink on the left-hand side of the screen. the nasdaq is down 145. the price of oil at the heart of this has gone up to one hundred $18 a barrel. just like that and that is hurting the airlines because jet fuel prices have gone up. it is a tough holiday weekend for airline passengers. 2500 flights canceled over the holiday weekend and all the airlines dropping in terms of the stock price.

russia's black sea blockade constraining world food supplies. mike tobin is in ukraine. are we on the verge of a humanitarian crisis? >> we are on the verge of a humanitarian crisis, something stressing the ability to provide food to poor countries and that is why you have a lot of people from across the world community looking at what is happening in the black sea realizing it is empowering militants and someone needs to do something about it russia's blockade is threatening the world's food supply and the potential of a broader conflict. >> with russian warships on patrol in the black sea the ports on ukraine's coasts are shut down. that means 1/4 of the world's weed, substantial harvests of corn, barley and rye are stalled and at risk of rotting. poor countries, food supply becomes more insecure with weak

or corrupt government, militants and terrorist groups become more powerful controlling the food. >> reporter: that's why the us general on the fast track to taking over as nato supreme allied commander suggested allied warships secure the root creating the risk of a quick slide to a broader conflict. experts say with the military stretched thin russia would not provoke a larger war. >> the risks should be seen to be low because the consequences for russia crossing that line are so high. >> reporter: aware of the global impact russia has offered to ease the black see blockade in exchange for an ease on sanctions, ukrainians call that food terrorism. >> in good shape. might help us. >> reporter: ukrainian president plummer zelenskyy spoke to his -- about a solution to the black sea blockade.

all shipping from the black see goes to turkey. stuart: thanks so much. i want to bring kt mcfarland, regular commentator. europe, bands most russian oil. will russia now retaliate? >> russia will sell the oil someplace else, they will sell it to india, to china, they will probably sell it at cut rate prices. what does this do? it is great, nobody should be supporting russian oil and buying russian energy. will drive the price up further and simple supply and demand, natural gas and oil out of the european market, american stuff is coming in to replace it so prices will go higher. inflation will get worse because energy is a key component of everything from fertilizer to foodstuff, the price of food goes higher so

this gets worse and worse. we won putin has leverage, leverage on energy prices, leverage on food prices, you don't think there's much we can do about it, suppose america's navy major you could get the wheat out of ukrainian ports? suppose we did that? >> we would do it only if we were sure we could do it. doesn't seem the american military will do under president biden but the biggest game changer would be for president biden to stop the war on fossil fuels america and allow make american energy production. american oil and natural gas will bring the price down, we would be energy dominant and russian resources are broke if they can't sell this at a high price and if it is not at a high price russia is broken. stuart: president biden will not send ukraine long-range rockets that could strike into russia itself.

what do you think of that? >> we will give ukraine what it needs to defend itself by itself. however what we should do, to use whatever leverage we have over russia and ukraine to bring to the negotiating table. as long as they are fighting, russia will slowly grind ukraine into the ground and that is what they are doing. if we had a stop to the fighting even if it is only temporary, what will happen in the world? you talked about the ceos still flooding into ukraine to flood economic relations with ukraine. anybody going to go into russia to improve the russian economy? 5 years down the road after a cease-fire ukraine is thriving, integrated into the western world whereas russia is a pariah, isolated and broke. stuart: that would be a happy ending in my personal opinion. hope to see you again soon.

russia's foreign minister trashing speculation putin is seriously ill. what did lavrov say? lauren: speculation his face looked bloated and shown certain tics recently but lavrov calls it a rumor and says, quote, i don't think same people can see in this person signs of an illness or ailment. listen to his speeches. i leave it to the conscience of those who spread such rumors. there are reports russia uses fake technology to show putin out and about while he reportedly was recovering from cancer. stuart: a lot of propaganda going. attorney general merrick garland wants college graduates to go into public service to defend democracy. roll tape. >> there is one particular reason that makes my call to public service especially urgent for your generation. that is the urgent need to defend democracy. both at home and abroad.

stuart: democracy under threat? from what? we will be dealing with that later. record high prices for gas, for everything. that will not stop democrats are moving forward with the president's big spending agenda. hillary vaughan has that story from capitol hill. next. ♪♪ ♪♪ if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades.

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stuart: if you are just joining us after one hours worth of business the dow was down 260 and the nasdaq is down 100 points. lauren is with me. sherwin-williams the paint people down 3%. >> a warning for housing market, credit suisse initiated covered with underperformed what safe stay, falling pink demand impacting the residential and commercial market because -- >> burkeland, they are home decor, aren't they? >> furniture, i've seen this one recently but loss of three times.

same-store sales down 16%. our shoppers impacted by higher rates, sherwin-williams and higher prices. stuart: at the top, a stellar performance. >> still at the top, glucose monitoring systems, they are t9 reports they are in talks to buy insular corporation which makes insulin pumps. stuart: measure glucose, devices for that. netflix's stocks dropped 75%. what has the ceo said? lauren: he told the new york times that is 75% drop was horrifying, disappointing, embarrassing, we make decisions based on the best information we have at the time. they are not always right but how you navigate the outcomes and urgency you bring to it is

what gets folks through the storms and he expects the storms will continue. this piece, his conversation, three speeches imported to the american culture. we don't make content for everybody. it doesn't happen like that. they stood by dave chapelle. as most comedians do. off the edge that shows you might have impact, people like what you do or not like what you do but free expression is your decision. standing by their decision to support dave chapelle and make other choices based on content that not everybody is okay with because that is free-speech. we will netflix at 194, at one time i rumor at 600, not that long ago. have a look at big tech this morning. i keep waiting for it to rebound really solidly. so far no joy. ray wong is with me. he follows big tech assiduously for us. have we reached the bottom yet

for the fang stocks? >> not what. a bear market bounce but we are close. nasdaq back above 12 k which is an important indicator. we are seeing some tech earnings, through. we saw adobe, workday, salesforce later today and enterprise cloud companies still performing at a good rate plus some of the stocks like apple coming out later, looking at what is going on with microsoft, those cloud companies are doing well. stuart: looking at apple and microsoft. just wondering isn't this the time to jump in? they are thoroughly depressed. >> what i am looking for his next week all the announcement from apple's worldwide developer conference, and china overhang to see production. stuart: to figure out what to invest in when it comes to big tech those inflation play a major role in your decision-making? if you are looking at new

products versus market share, profit and loss, what about inflation? >> inflation plays a big role, a confluence of crises, infection, inventory, interest rights, those have played a huge role. stuart: it does have an impact, negative impact. >> two things, interest rates go 50 to 100 basis points and what does it mean for inflation especially price inflation on wages, we have tech wages, graduates coming out, paying 300 to 350 computer science graduates at top schools, the labor market is really tight, we have an h1b immigration issue. it is all happening at the same time. stuart: you can get 300-$350,000 the day you walk out of college if it is a good college with a computer science degree. >> exact the.

we when you could be 20 one, 22 years old 300 k. >> my first job i made 20,000. stuart: okay. a lot of these jobs are available at that price? >> yes they are. the top graduates are up there. a i will give better phds making 1 million to 1 million and a half. stuart: a phd, this is a good story, a phd in artificial intelligence coming out of graduate school, 25, 26 years of age, $1 million a year. >> mehta, microsoft, amazon paying that much. stuart: they are paying that kind of money. stuart: that is called an eye-opener. so glad you are on the show. redirect my grandchildren to go to computer analysis. see you again soon. senator joe manchin in talks with senator chuck schumer on a slimmed-down version of build back better. hillary vaughan at the white house, what does a slimmed-down

version include? >> reporter: according to discussions between senator manchin and a bipartisan group of senators the package would be focused on paying down the debt which would be a win for people like manchin and republicans because that could bring down inflation but it would increase taxes on the rich to pay for some of these climate goals that president biden wants to pursue which would include saturdays and tax breaks for things like clean energy but manchin has been one of the big opposers of any new government spending when inflation is raging but seems pretty open now to something that would be paid for and help pay down the debt with inflation above 8% right now, that is eating well into wage increases workers are experiencing which are about 5% but the national economic council director says he thinks inflation right now is a sign we are in a transition.

>> where we are is in a transition transitioning from a historically strong economic recovery to what can be more stable and resilient growth, but at this point, the center of that is tackling inflation and bringing down practice and bringing them down as fast as we can. in the meeting the chair powell was all about, the independence to operate. >> the president did preview the plan in a wall street journal op-ed saying, quote, since i took office families increased savings and have less debt, found a higher percentage of americans reported feeling financially comfortable at the end of 2021 than any time since the survey began in 2013. it would be interesting to see what the survey would say. in 2020, for several percentage points.

>> the fda, investigating a possible link between hepatitis a outbreak and strawberries. we will tell you where the strawberries were sold, the ongoing baby formal shortage pushes desperate parents to cross the southern border. they say supplies could be found in mexico. the report next. ♪♪ ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations,

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stuart: down this trail down 200, the nasdaq down 60. still some red ink this tuesday morning. how about snap currently priced at $14 a share, credit suisse just cut their price target from 77 to 59 at the stock is at $14.49.

the baby formula shortage worsening, 70% of stores are now out of it. any idea when things will turn around? >> we could see some improvement in the next couple weeks. i say that because i got an update from nestlé, the makers of gerber baby formula that were flown in last week on two flights from germany on operation fly formula. netflix says the ship and they received on wednesday of gerber baby formula, 40% of that allotment was shipped to retailers over the weekend, you can imagine it will hit shelves in the coming days and weeks. we will see some improvement but we are still months away from seeing this crisis resolved. fda commissioner doctor robert kayla told commissioners it is unlikely we will have fully stocked shelves again until late july. shortages are getting worse, 70% of the country's formula stock is gone. that is up from 45% the week

before and it appears formula it is the hardest declaim in states like arizona where 85% of the stock is out but like we said supply is on the way. the operation formula flights transported enough specialty formula to make 1.5 million bottles and the fda has cleared 1 million cans of formula to be imported from australia, 2 million cans from the united kingdom that should be here by june and our french company will send half a million cans to the us. it should reach distributors the first week of july. stuart: the foreigners will help us out. >> we are a long way from being out of the woods. stuart: thank you. as we just mark the unofficial start of summer, we are seeing uptick in covid cases. tell me more. lauren: they are $0.06 higher than they were this time last year. we are dealing with this so much better but the 7-day

average since saturday, 119,000 cases, this time last year, the job number, 17,000 cases. the death rate is 26% lower so the variants of gotten more mild and most of us have had covid or are vaccinated so we learn to deal with it. stuart: tell me about china because they are seeing a decline in cases. how about the two big cities. >> starting with shanghai, tomorrow is a huge day where things will look like normal for the most part, for tens of millions of people who have been under lockdown for two months, you still have to wear a mask and avoid large gatherings, you cannot eat inside a restaurant or go to the gym but you can go out and about. okay? stuart: that makes a big difference. >> malls are open but schools are closed for young children. you can't eat inside a restaurant and you need a covid test every 48 hours to do certain things. it is a loosening of restrictions.

they are not wide open and will probably never be because i'm not sure you can have 0 covid. stuart: that is the point, 0 covid still in place. good luck with that. the fda is investigating a link between hepatitis a outbreak and fresh organic strawberries. the fda says 17 hepatitis cases are being confirmed in california, minnesota and north dakota which have led to 12 hospitalizations. these strawberries were branded as fresh -- purchased between march 5th, april 25th of a distributed nationwide sold at a number of retailers, the fda says the potentially affected are past their shelf life, people who froze them should not eat them. still had, a preschool in north carolina uses flashcards with a pregnant man to teach kids about color. bill bennett takes that on. speaker pelosi, arrested and charged with a dui over the

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stuart: the down just reels down 200, the nasdaq down 60. we see a little red ink this tuesday morning after last week's nice balance. the casino stocks rally nicely because shanghai is getting ready to reopen. so china money can flow into macau. nancy pelosi's husband paul arrested anna dui charge over the weekend. 's car was allegedly hit in the middle of an intersection after he list -- left a dinner party. what with the coverage be like if this were a republican's spouse? >> you mean like what's with the coverage like if jared kushner gotta dui or donald trump junior? what with that coverage look like? wouldn't be as limited as we are see on other networks. when you are worth more than

$110 million like paul and nancy pelosi you can't call an uber black or lift or have your own driver named jeeves? you are paul pelosi, you are 82 years old, you can't take the money with you to the pearly gates of spent a couple bucks to protect yourself and others, when you have too much at dinner. someone really could have been killed, this was a crash and it was totally preventable. the best line is a quote from nancy pelosi's spokesperson, the speaker will not be commenting on this private matter. that is convenient. stuart: i will leave it right there and move on to this. attorney general merrick garland urged harvard's graduating class go into public service. roll tape. >> there is one particular reason that makes my call to public service especially urgent for your generation. it is an urgent -- should move each of you regardless of the career you choose.

it is the urgent need to defend democracy. both at home and abroad we are seeing the many ways in which democracy is under threat. we want those two words, under threat. what is the threat to our democracy? >> he had before little bit, sounded like jfk in terms of giving back to your country. democracy is in peril and a lot of places these days to answer your question. we were told democracy was under threat after the georgia voting law was passed and voting doubled in the state last week when compared to recent past election so much for democracy in peril but merrick garland is the same guy who wrote the memo saying parents concerned about the child's education showing up at school board meetings were potentially to mystic terrorists. for him to use this sort of fear mongering and hyperbole to graduates is as surprising as the sun rising in the east. stuart: it seems like go into public service because you are

democrats, you will even democrat all the farm always, that is why you go into public service, nothing to do with democracy, just protecting this view of socialism which seems to come out of our leading universities. that is what it is all about. stuart: you are very much on to something. maybe we attach student loan forgiveness if students after they are done with their education may be two years they go into public service to pay that up, could that be a good idea? i would be on board with that but this is merrick garland being the political hack he is. stuart: wait a second, who is a political hack? merrick garland? >> yes absolutely. making statement like that. stuart: he would have been a supreme court justice if mitch mcconnell hadn't stood in the way. he would have been on the supreme court. >> that is correct and i thought he was moderate but more and more when you hear him speak he sounds like a politician than somebody who is supposed to be neutral on the bench and looking at things objectively. he sounds like a mouthpiece for the biden administration

because he is the president's wing man. stuart: well said. thanks for being with us, see you again soon. >> you are all right. stuart: this is true. here is a headline. the mona lisa was attacked in a bizarre demonstration, so it wasn't there is. lauren: a man in a wheelchair wearing away a good and lipstick, i think he was trying to look like an old lady to get to the front of the mona lisa, and through cake at the painting and when he was tackled by security he said think of the earth, that is why i did this. i don't understand the connection to the climate but here is a climate activist, he was ordered by security, because of this bulletproof glass over the mona lisa the painting is still in mint condition, it was not harmed. we when i went to see the mona lisa in rome in 1968, a long time ago. even in those days, 50 years

ago, you couldn't get near the mona lisa. the crowds were stunning. this was 50 years ago, heaven knows what it is these days. lauren: i have seen the mona lisa but i cannot recollect the year the way you can and i remember it was smaller than i imagined. it evoked such brander. stuart: you know what everyone does? they walk past it to see if the mona lisa's eyes always follow you because that is whether a myth or not they do appear, from one side to another. the crowds of 2 million people, couldn't do it. i was in no mood wandering around. lauren: 1968 you remember so sharply. stuart: yesterday is a blair. >> 2015 for me but don't quote me. stuart: i will move on, check the market. in red, dow is down 200. the selling is not as bad as it was at "the opening bell".

some improvement. the price of oil is the headline. $118 a barrel, briefly touched 120 earlier setting off all kinds of energy price inflation fears up and down the line. as for the 10 year treasury yield, 2.86%, that yield is rising but well below 3%. bitcoin, successful return over the weekend getting back to $31,700 a coin. still ahead, bill bennett is going to be with us. lisa booth, and patrick will talk about $5 gas. the pandemic changed a lot of things, work included. when the resurgence came off i assumed we would go back to work and get things moving again. it has not worked out that way. more on that in "my take" which is next.

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>> there is no effort here, no discussion whatsoever to freeze federal spending which is something they've got to do if they want to stop inflation. he wants more spending which will make the problem worse. this is what you get when you vote against something and not for something. america voted against donald trump, now they are uncovering what they got and they may not like it. >> high gas prices, they are so

obsessed with climate change they think the way to save the planet's make gas prices higher and higher, you can't feed your family on drugs so low drug prices at the moment doesn't help what people are feeling every day when they go to the grocery store the gas station. doesn't help. >> with the need leadership in the market to stop the recent pullback and gain high ground so we need big tech, amazon, microsoft, apple, to stabilize and get back to new highs. ♪♪ stuart: you are looking at sixth avenue midtown manhattan. you see how quiet it is. more on how it is so quiet on this tuesday morning. it is 11:00, tuesday, may 30th one all day long. check the markets, the dow industrials down 180, nasdaq down 37. a bit of a comeback after last week's modest bounce.

the price of oil making headlines at one hundred $17 a barrel, earlier it touched one hundred 20, setting off all kinds of alarm bells about energy price inflation. as for the 10 year treasury the yield at 2.86%, creeping up all morning. now this. the pandemic changed a lot of things, work included. when the restrictions came off i assumed we would all go back to work and get things moving again. it hasn't worked out, has it? there are millions of people who work from home and it is probably going to stay that way. a huge change in where you work and how you work. you see the impact in new york where mondays on fridays tend to be quite because people are working 3 days a week in the office, tuesday, wednesday, thursday, mondays and fridays work from home, it is change the feeling in this city. another change, a lot of people don't want to go back to the job they used to haven't a lot of people don't want to go back

to work at all. some of that may be early retirement but some of it is a change in attitude. the american work ethic was always strong. is it now? you may have seen the impact of this over the weekends when labor shortages popped up all over the place. my flight couldn't get to the gate because there was no one to wave the plane in and no 1 to drive the jet bridge to the plane so we couldn't get off. not a big deal but the not going back to work situation is very apparent. this is not a complaint, not a lament. it is an observation, the pandemic changed the way america works and we are not going back to the way we were. third hour of varney starts right now. ♪♪ stuart: lisa booth back with us this tuesday morning. you made a big change during

the pandemic, you move to florida. you work from home now, do you work differently? >> i go in here to a studio in florida and if i was in new york i would go into the studio there, not vaccinated, not sure what that looks like now. there is something to be said for americans going back to work, to a workplace, having those discussions, working together. i don't like the changes we have seen but i moved to florida because there was a lot of freedom i was seeing in new york, wanting to live someplace that values freedom and that is in florida. stuart: do you make the right move? you have to with florida. >> i miss seeing colleagues in new york, people i care about who were awesome people and friends there but i don't miss the city. florida is a beautiful state, we believe in freedom, don't have to worry about the same issues of crime you had in new york city, taxes, all the bad.

in miami we have all the good without the bad. i have been happy here. i love florida. stuart: you have no idea how many people come on this program and say what you said. florida is where it is at. >> not wrong. blue one republican congressman adam kinzer says he supports raising the minimum age for a gun purchase, listen to this. >> i think raising the age of gun purchase to 20 one is on no-brainer. we know the human brain develops and matures a lot between the age of 18 to 21, without so much as a blink, the age of purchasing cigarettes federally to 21, we need to get there eventually. stuart: what do you think of raising the minimum age to 21, what do you think the rest of the republican party would get behind it? >> i say no, adam kinzer your is not much different from

nancy pelosi, why can 18-year-old go and vote or go to war but can't own a firearm when they come home? you look at the left today they believe a 13-year-old can consent and is mature enough to get is almost ectomy. i think an 18-year-old is mature enough to own a firearm and this conversation is not about a specific weapon like the ar 15 but all guns. president biden talking about a handgun, look at what is happening in canada where trudeau is trying to ban the sale of handguns and talk about freedom, our founding fathers set up a system of checks and balances because they believed in freedom, but also gave us the second amendment, a safeguard against tier any even here at home. you can go from cuba to afghanistan with the taliban and authoritarian regimes take guns from their citizens because they disarm population is easier to control and if

anyone was paying attention during covid the left wants to control us. stuart: when europeans come to america they are shocked. when i first arrived many years ago i had never seen a gunshot before. i was amazed to walk into one the way americans can and to buy one if you want to. a very interesting freedom. >> you have to go through a background check, can just walk in and buy a gun. the process in place. stuart: america -- >> america uniquely believes in freedom in ways many other parts of the world does not, look at canada a look at these different countries like australia literally putting people who didn't want to inject their body with something they didn't need that hasn't been studied, in long-term ways with the vaccine, to put them into government camp so in america, we believe in freedom, fighting against people trying to infringe on the second amendment or anyone else, that

is why i love being un-american. stuart: 78% of millennials, because they disagree about politics. half say their family posted toxic or problematic things. have you stepped away from your relatives on facebook talking politics? >> i haven't because i am going to love my family no matter what but the intolerance is coming from the left. actio stood a study talking about college-age kids finding 71% of democrats wouldn't date a republican. it was almost 40% of democrats wouldn't date college-age democrats wouldn't be friends with a republican. if you look at the flipside of that only 30 one% of college-age republicans that wouldn't date a democrat and only 5% that wouldn't be friends with a democrat. the intolerance is a 1-way road here and it is coming from the left. stuart: some of my best friends are democrats, none of them are

socialists, thank you for joining us. we will see you again later. dow down 200, sitting next to me in new york city was a slow day. jason katz is with us. what is the big shift in the narrative, inflation or interest rates. >> the narrative has gone from tightening financial conditions, what we have obsessed about and shifted to price in, growths care and if you think of this looking historically when you have a bear market minus a recession the average drawdown is 20% which is what we saw recently. when you have a bear market

coinciding with the recession, the average drawdown is north of 30%, that is what is behind the last leg of the fertility. stuart: a feeling on wall street that a recession, two back to back corners of negative growth, that that is coming? >> wall street think there's less than 20% chance of a recession coming to pass but the overwhelming consensus, may not be the best sign, if we have a recession perhaps it will be garden-variety. in other words not all recessions are created equal. when you have a labor force that is strong, $2 trillion savings, consumers who want to get out and about, look at the box office this past weekend, it had two sequential quarters of negative gdp, doesn't have to be a financial crisis. stuart: we are looking for bottom and we may be close to a

bottom for stocks. would you go that far? >> like trees don't grow to the sky, stocks don't fall forever. we are trying to find our footing. they have it in the most speculative pockets of the market but not the high quality. until we have that i am not so sure we've found the bottom but we are much closer to it not that it is the most profound statement after we've seen an average drop near 50%. of the when i just wouldn't want to be in your position. advising wealthy people where to put their money in a market like this. you can have that job, keep that one. >> highs are highs but lows are lows. stuart: see you again soon. you've got some movers. marathon oil, a lot of energy stocks. >> energy is the number one performer. marathon is up sharply, 3. 5%, you but he did leaders agreed in principle to spend 90% of oil imports from russia by this meal of the year,

tougher sanction since the invasion of ukraine, three months ago. stuart: show me nova vax, vaccination company. >> there covid shot could be coming to the us soon, fda advisory committee meeting next week to discuss wise this important? there are vaccine hesitants out there. this vaccine is protein based, not based on mrna technology so more americans might be on board. stuart: you know what struck me over the weekend you get the number of people who got pets during the pandemic. that is why i put chewy on the screen. wise it down 3%? lauren: they are down because they have inventory supply chain problems and ubs cut their price target to to a street low which is $23. they are expected to report an adjusted loss from a profit so $0.13, i told you the challenges, inventory supply chain. blue one you certainly did. of the 2 challenges for

everybody out there. of the one you should see how people got pedigree dogs, wall-to-wall. lauren: i had a dog neighborhood, everybody walks their dog, doesn't have any friends, you walk a dog at the same time but during the pandemic extra dogs. charles: single dog of the opposite sex. organizers of the world cup are interesting. they promised the tournament would be carbon neutral. a new study shows the soccer championship will not be very green after all. drivers across 7 states are paying more than $5 for a gallon of regular gas. in california they are paying $6.16. gas buddy guy, thinks prices are going up from here. he is on the show. the top gun sql shattered box office records this memorial day weekend, next we speak to a real live top gun pilot about the movie and the future of flight. ♪♪

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>> you are dead, believe me. >> my dad believed in you. i went make the same mistake. stuart: i am tempted to go see it. haven't seen it yet but that was top gun maverick and it shattered memorial day records taking in $156 million at the box office, the feature sql, tom cruise as pete maverick mitchell, this time around maverick trains the next generation of elite fighter

pilots. our next guest was a graduate of the top gun school, brigadier general brigadier general, got the rank right, jim boots is with me, you saw that movie over the weekend and you are a top gun kind of guy. was it realistic? >> parts of the movie were incredibly real us to, the things i like most about it were the flying scenes, the put the actors through high g forces and the back story about the price our aviators pay in a personal way to live on the edge and fly those high-performance fighters and combat missions. we will not be coming to the end of the days of real human pilots of these fighters or will we go to drones and electronic warfare? >> electronic warfare and drones are thing of the future but i don't think i we as a nation are ready to relinquish authority, that last decision to push the button and turn it over to machine so people will

partner with fighters on the ground and in the air to deliver firepower around the world, the last firefighter epic has not yet been born. i think we have a long future of man fighter aviation before drones completely take over aerial warfare. we want won when you were in the top gun school where you competing with other pilots or were you really competing with yourself? >> it really was more about competing with yourself, the movie plays on the competing against each other but that was not like the reality we had. we did fly against each other and there was a winner and loser even though we were not firing latin missiles but competing against yourself to be the best version of yourself that you could be. stuart: what is it like the going get into how do i express it? the geforce? when you are turning a corner, incredible speed, subject to our geforce, what is it like? >> modern airplanes pool twee 8

or twee 9 ge's, eyewear one hundred 60 pounds sitting here, at 9 ge's, 1600 pounds being squished it down into the ejection seat, hard to talk, hard to breathe, hard to stay conscious but we are trained to survive and thrive in that environment. we what is that still true today? >> it is still true today. dogfighting is an important part of aerial combat both air to air and air to ground and the physical nature is there. stuart: 2,022 you can still see a dog quite literally? >> you could even though the missiles do a lot of the dogfighting these days, every time we write off dogfighting is a viable tactic it comes back and serves us well in current and future combat. stuart: last time they did that movie back in the 80s, there's a 500% increase in fighter pilots trying to get into the school. you think you will see the same thing now? >> i would think so because top gun maverick does a good job

bringing the real challenges of current combat, the excitement of being a fighter pilot and aviator, the lifestyle and contribution you can make to your country in the world of being a fighter aviator. i expect another spike in fighter pilots and i hope so as an american citizen. we won you at the top of the food chain when flying a high-performance fighter loaded with real weapons. stuart: i want to get the story in and save a little time for it. today's the last day of military appreciation month and you are on a mission to get a medal of honor awarded to a pilot killed in desert storm, you got a minute to tell me the story. stuart: top gun maverick does a great job explaining how the sacrifices are made by our combat aviators but since vietnam not a single pilot has earned the medal of honor and i am on a mission to change that. february 15, 1991, captain steve phillips fly his 30th combat mission of desert storm was shot down under heroic

circumstances trying to save his wing commander. he loitered in the target area after his wing man had been shot down for three minutes and 45 seconds which is an absolute eternity in a combat environment trying to do everything he could to bring search and rescue forces and other combat assets overhead. stuart: that is him. >> that photograph we just saw was taken the day before he was shot down on his last mission on february 15th, 1990, one. we when 15, 1991. we when we wish you well with your mission to get him a medal of honor, that gentleman right there. thanks for being on the show. >> appreciate the opportunity to tell the story of captain steve phillips. we went back to the markets, always got to check up on your money, dow down 260 on the dow, down 80 on the nasdaq. a new report claims that the green initiatives at the world cup this year, those initiatives are misleading. what is misleading? what are they saying? lauren: another sporting event that is said to be carbon neutral when it is not. the report comes from carbon

market watch and they say organizers used faulty assumptions like purchasing credits known as obsessed and then only taking into account the stadium, not a lifetime of it, it gets confusing. the event is estimated they say to generate 3.6 million tons of carbon dioxide equivalent which when you look at how you built it, how guests arrive, where they stay, where they are coming in november and december for the world cup, it is a lot more than organizers said. stuart: you can see it coming a mile off. what green is ever going to be satisfied with anything and oil state says ever? they will walk away from that. lauren: they are an oil state but most sporting events get in trouble for this as well even if they are not an oil-rich country. stuart: are you aware of chelsea football? lauren: i'm excited for you to

tell me everything you know. it sold for a record $3.2 billion to a consortium led by one of the owners of the la dodgers. roman abramovich which is sanctioned by the uk forced to sell the team, he's not going to profit, proceeds are going to ukraine and humanitarian efforts. stuart: chelsea, $3 billion worth of soccer. desperate parents crossing our southern border to buy baby formula in mexico. they say the shelves are fool. we have a report. the queen's diamond jubilee still a few days away but the brits are kicking off the big celebrations. we have a preview of them next. ♪♪ ♪♪

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stuart: how do you pronounce that? is it michael -- lauren: it was a commercial, some people not knowing how to

pronounce the surname. stuart: you are looking out salt lake city utah. looking at the mormon tabernacle on american build. divine inspiration. in a devilish location. built an unbelievable structure of the mormon tabernacle. american built heirs tonight at 8:00 pm eastern. back to reality. let's get to the market, some red ink down 300 on the dow. >> it is only fantastic. >> bitcoin is recovering, biggest spike for the crypto

currency since may 15th, a 2 week spike after a 50% drop from bitcoin, 69,000 or so. some covid using means more money is being freed up when it comes to tax rebates and subsidies, so there is more money to go into riskier efforts, the crypto stock, coin base block jack dorsey, with minor trust. stuart: i bought some ethereum for my grandson on the theory he is so young he has many decades. that is the worst performing investment fund. susan: the price you get into ethereum at, that is the peak, you have decades to recover. stuart: my grandson has lost 50% of his college fund already and only been in it for six

weeks. consumer stocks outperforming today. susan: your grandson might be shopping. amazon, shopif gmac, nike, consumer confidence in may coming in stronger than anticipated. you saw the top gun numbers this weekend and a lot of retail names like macy's, dollar general and dollar tree. stuart: a couple hours ago, all the electric vehicle stocks doing very well. susan: evs our outperforming and light double, they are calling neo adding to their tactical ideas list, morgan stanley says it could be worth $34 and that is pretty good upside. it could double. stuart: that would be nice. better than ethereum. susan: for now, you never know.

you are a long-term holder. electric cars are part of the stimulus plan. tesla reiterated as that. a when i might just sell ethereum and take the loss. susan: you can back up against your taxes. stuart: please do that, thank you very much. look who is here to cover the markets, another british accent. and barry is with us, good to see you. i am looking forward, not looking forward but thinking about the jobs report coming out this friday. how important is that the us a market watcher? >> the lead indicator, early signs of what inflation might be looking like this month, so much focus on what the fed is going to do and how inflationary wage pressure is. a big one looking at the jobs report and the unfilled

positions, that is going to be over 11 million. >> the leading estimates over 11 million which is a huge number of open positions driving up wage inflation and the other number is the participation rate. i people getting back into the workforce to fill those open positions? stuart: you have wage inflation, energy price inflation. if that inflation is the backdrop, what is your market outlook? >> as long as we see the inflation rate coming down, prices going up, the rate coming down we see the market come out of this period. perhaps the recession is priced in, aggressive rate raises priced in. even more optimistic. stuart: tell me about the meme stocks, game stop reports tomorrow. i've got a feeling the wind has come out of the meme stock craze.

has it? >> a lot of the capital coming into the market has calmed down, has tempered and what is interesting tomorrow is to see if there is any substance behind what game stop said before about meta verse strategy, having a great strategy, that cause a rally in the stock price but we've not seen what the plan is yet. stuart: big picture, tina. >> there is no alternative. stuart: you and with that? >> not anymore. i was in that camp but the rate came up and we will be more opportunities in the credit products bonds but more structure credits, there's money and credit etfs and they will become more interesting. stuart: i often said if you go out and buy yourself a 10 year treasury, or to year treasury security you will get 2%

interest and if you hold it to maturity you are dead safe. you get your interest, don't lose any money, get out tax break, what is wrong with that? >> with inflation roaring above you are losing value but rates come up as inflation plays down, credible start to become an alternative. stuart: because you have a british accent i will ask about the jubilee celebration because it is a few days away in britain, celebrations have already started, some images of the queen, the queen's image projected onto stonehenge is extraordinary. are you going to see it? >> i'm going to be watching. i'm excited for that. it is wonderful that the queen who has become an icon of stability through times of stress starting from world war ii, she is been through so much and out covid, seems like a reawakening. stuart: how do you explain why

americans are so intrigued by the monarchy? why do you think they are? >> there is something intriguing about the pageantry. very unique, the british sensibility is fascinating. stuart: it is a wonderful thing but i'm staying in new york and so are you. thanks very much. look at this, let's get serious. thieves ransack a store, trash bags full of makeup. how the workers responded. that is california. a preschool in north carolina teaching kids their colors with flashcards featuring a pregnant man. former education secretary bill bennett, what is he going to say about that? bill is next. ♪♪

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stuart: desperate parents looking outside the united states for baby for nila. they are desperate. where are they looking? lauren: they are going to mexico. >> people getting formula. at the pharmacies in the store. >> one of my friends lived in la having problems with that. it is on costco, had no problems with it. >> no problems getting baby formula in mexico. folks in california were driving to tijuana in the nearby areas because it was cheaper. that says it all but go to mexico for your gas and baby formula.

stuart: think about this one. a preschool in north carolina getting a lot of backlash after they used flashcards depicting a pregnant man to teach youngsters about colors. bill bennett is the former education secretary who joins me but now. i don't understand this. what were they trying to do with this pregnant man image? >> confuse people, change roles of gender, this is nonsense, it is quackery, it has no place in our schools. i predict as a result of this, covid, remember the behavior of teachers unions during covid, critical race theory, other things, since columbine, hundreds of school shootings, we will see a dramatic increase

in homeschooling and alternate forms of schooling. stuart: is there any barrier to that? >> there are state barriers, parents are going to push and legislators push. can i say a word about the uvalde thing and some things that are being this? the students can with typical signs. they tend, students like the one in uvalde and in florida, they tend to be cruel to people, cruel to small animals. a lot of torture of small animals, bad relationships, fascination with guns and they are either big-time bullies or have been big time bleed. when this happens, teachers have to be alert, there are other threshold questions like why did teachers leave the door open and what were the police doing but these sign students give us need to be acted upon.

teachers need to be good on this and inform the relevant authorities, but we need to be preemptive in taking action in making kids know they are being watched, kids being arrested for threatening to do this. stuart: the big picture, not ignoring uvalde but trying to get the big picture, the decline of quality in public education and safety will lead to an exodus out of public schools and into homeschooling, voucher systems and anything else other than the failed public school system, that is where we are now you think? >> trickle, stream, and flow unless it is reversed and the wherever you send your child, 60, 70, 80% of america's kids will be educated so it matters

to us what goes on in those schools and all school shootings are. stuart: i wish we could see d unionization of america's public schools, that would make an enormous difference. >> lots of things need to happen. stuart: always a pleasure to have you on the show. look at this. video shows a group of thieves in los angeles emptying the shelves in a high end makeup store. did the workers do anything to stop them? >> everyone watched them load up the trashbags lead the store and that is it, just let them go and you are asking why, if you steal in los angeles, obviously what they stole is hundred $950 is essentially legal, no one will prosecute you for that but at the same mall there was a series of robberies last night, this happened saturday night, a series of robberies, this was just one of the.

stuart: that mall was attacked. by thieves. that is an extraordinary story. just amazing. thank you. let's get back to this. the national average of a price of a gallon of gas $4.62, that is a new record. gas buddy guy says that price, $4.62 could jump as much as $0.15 just this week. you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire another crazy day? matchi of course—you'reiption. a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business.

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powering possibilities.™ ♪ ♪ how's he still playin'? aspercreme arthritis. full prescription-strength. reduces inflammation. don't touch my piano. kick pain in the aspercreme. stuart: he we go again. another record high for the price of gasoline, $4.62, national average for regular up $0.50 in a month. grady trimble at a gas station in chicago. what is this about gas station owners saying credit card companies are the real winners in this? why is that? >> because of credit card fees. the gas station owners make $0.15 a gallon when you fill up your tank and that is whether gas is $3 a gallon or $5.50

like it is here. credit card companies on the other hand make a percentage of the total sale usually to prevent, when prices are higher they making more, gas station owners have no choice but to pay that and it is eating into their profits. stuart: >> credit card companies are laughing all the way, and open intended, to the bank. a year ago a tank of gas cost $30 and the same tank of gas cost $60, the fees paid to the credit card companies, the banks has doubled to. it is an enormous expense on all merchants. >> reporter: national average today is another record high but brace yourself because the experts are saying, might be a good idea to fill up your tank today because by all accounts prices are going to keep rising potentially until we had $5 a

gallon as the national average in june a couple weeks away. stuart: we hear you. now listen to this, 7 states are seeing the average price of regular surge above $5 a gallon, states are on the screen right now. patrick, you are saying gas could go up $0.15 this week, right? >> that is the culmination of the wholesale price of gasoline last week's surging, a lot of talk about how prices go up faster than they come down. we made it through the weekend and prices didn't go up in many cases but that surge what happened energy markets last week about to hit the great wakes, i'm expecting as prices jump $0.20-$0.40 a gallon imminently in michigan, indiana, ohio throughout the great lakes, that will push the national average up, probably going to get worse, formulated gas up another $0.10 a gallon today and this will bring the

national average up to $4.80 and we are at 75% shot hitting the $5 a gallon mark in june. stuart: 75% chance of $5 gas as a national average by did you say mid june or mid july? >> just a couple weeks. by june 17th i would estimate. that could be moved up, might slide back. keep in mind gasoline inventories continue to be tight but i think it is more imminent we could hit the $5 national average at some point very soon. stuart: has there been any sign what the economies call demand destruction? people buying less gas, driving less because they can't take the high prices? >> memorial day weekend was a sign of that, demand is stronger than it was during the winter but is seasonally soft. we are down close if not beyond

double digits compared to 2019 which was the blockbuster summer. we will see gasoline demand probably most weeks under the 9 million barrel mark and it is primarily due to high prices are demand destruction. stuart: i've got diesel at $5.50. it has stabilized at that level, $5.50 a gallon. what is the outlook for diesel? >> diesel ultralow sulfur jumping $0.20 a gallon because of you but he did's official saying it is on russia but diesel has been improving down from last week but i think it will start to go up in the next few days. stuart: okay, you have been right before you are probably right again. see you again soon. here we go. it is the tuesday trivia question. which year did the los angeles fall level highway interchange open? the answer after this.

..

stewart * we did ask what year disthe four-level highway interchange in l.a. happen. >> 1953. stuart: i'm going with 1960. the answer is 1953.

the saturday evening post called it a mad traffic dream. it's still there, by the way. it's a traffic jam. that's the way it is. i shouldn't be nasty about los angeles. cheryl casone is in for neil today. cheryl: i'm in for neil cavuto today. stocks falling as inflation roars. president biden set to meet with fed chair jay powell in the oval office today on a mission to combat inflation. something the president just wrote indicates he thinks the economy is strong. gas prices hitting fresh records.