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tv   Varney Company  FOX Business  October 20, 2022 10:00am-11:00am EDT

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stuart: i can't get no go reaction. you can't say that. good morning, everyone. it is 10:00 eastern, straight to the money. where are we now? the dow is up one hundred 46, the nasdaq is up 33 points. that is something of a reversal, we have a mixed picture at "the opening bell" and we are pretty positive with green across the screen. the 10 year treasuries a key indicator that has gone up to 4.16%. big tech, show me that, that, with the 10-year treasury at 416 i thought big tech might take it, alphabet, meta, amazon, microsoft up. oil $88 a barrel despite the president releasing his 15 million barrels of oil from the reserve, $88 a barrel.
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mortgage rates at 10:01 on a thursday. lauren: 6. 92% up two basis points but some of the commentary his home builder confidence is down and shy of 7%, demand close to a 20 year low. stuart: more important than the real estate market is the focus on existing home sales. lauren: 4. 70 one million but from what i see slightly better than anticipated but the decline is accelerating in august and home prices go up by 8% so you're looking at $384,000 on average selling price. stuart: but 4.7 million existing homes sold on an annualized basis. that is a low number. in the goal days you are well above 5. thanks a lot.
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now this. j the prittska vehemently opposed school choice and he received overwhelming support from the teachers union. public schools can't have competition but right before the election he is coming out in favor of school choice. he said -- sent his own children to private school and condemns public school children to failure and right before the election has done a 180. we've seen this across the country and at the last minute facing imminent defeat scrambling. speaker pelosi says we must secure the border. where have you been the last two years, the president releases oil from the reserve two weeks after the white house says he wouldn't do it, he says it is not politically motivated but he does it right before the elections, democrat candidate john fetterman now says he never wanted to empty the
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prisons but he did. he said it 14 times on tape. democrat candidate texas governor beddoe o'rourke says he never advocated defunding the police but he did. karl rove points out these reversals in a wall street journal op-ed title democrats -- run for the merrick paul. you can't walk away from 2 years a failed policy, you've got to stand on what you have done. second hour of varney just starting. been dominic is with me. i'm not ignoring you. you are a welcome guest. do you think these reversals, last-minute policy reversals will make a difference? >> i don't think any of these last-minute reversals will make a difference, you can't shift
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people's minds at this point on the fundamentals of the midterm election. we know that historically, there is voting going on in georgia, you don't have a situation where anything democrats throw at the wall, the spaghetti isn't sticking. the situation they find themselves in is exacerbated by the fact they have gone so public with so many extreme statements over the past few years they really can't walk away from them overnight, can't sweep them under the rug and voters have made up their minds about which party is more interested in fixing the economy, securing the border and addressing crime in a serious way as opposed to farcical suggestions like emptying prisons and defunding the police. stuart: president biden will hold a private fundraiser for senate candidate john fetterman. no big rally. i find that interesting.
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>> no big rallies and that has been a trend over the past couple of months. you saw that approach used by former president obama and major democratic figures over the years but president biden isn't doing it and the truth is democrats don't want him to do it. he is such a drag, such an anchor on their hopes of having any ability to hang onto power that they don't want to be in the public scenarios with him and who knows how he will perform or what he will say on the stump. they don't have confidence in him and after the kind of wave we are going to see in just a couple of weeks, the questions about whether he should run for reelection are going to reach a fever pitch among even the most dedicated person democrats. stuart: always straight at it, see you again soon. on a similar note, senator sanders just announced a 19 stop campaign blitz, he wants to rev up young voters ahead of
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them in terms making stops in key battleground states, nevada, florida, wisconsin and he will end up in pennsylvania on november 6th just 2 days before the elections, socialism all over america. let's get back to the market. gary, have we seen bottom yet? >> i thought last thursday's big reversal, i compare it to the june lows, we will rally up some more. i don't know if we finished up the bear market but we have a leg or two to go. oil is higher, earnings are not that good. enjoy this rally up, it probably lasts a few weeks if not longer. after that i'm not so sure. stuart: which stocks do you have your eye on right now. >> oil right now looks really good especially big oils. they been in range of the last few months, looks like they are
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breaking out and i will give you one area that has been absolutely blasted that i think is washed out for now and that is the semi conductors. i think they are in for a short-term move higher are not great news but sometimes if you get washed out by higher prices, the market is near-term but i must repeat there is a lot going on fundamentally that is wrong and yesterday there were 600 yearly lows in so many consumer areas like autos and housing related so enjoy this rally, i think it continues. stuart: it looks like we are going to get a republican win in the house and senate. is that positive factor to you. >> republican zara lock for the house, more than people expect and i wasn't so sure about 3
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weeks ago, it is a lot closer for the senate. i believe a lot of that may be in the market already but if they take over and have a pro growth, low tax, pro-people, pro-business, proconsumer policies, they yell and scream them i think that helps the market and it helps the psyche versus what we've been seeing out of this administration which basically stomps on people's heads and the economy regardless of what they tell you. stuart: i will leave it right there. thanks very much. i know we will see you soon. big-name ceos like jeff bezos, jamie diamond may be warning the recession is near. i take at the white house does not agree. lauren: apparently not. let's listen to this exchange. >> the president. there's not going to be a recession, growing number of businesses, jeff pazo's yesterday, jamie diamond, goldman sachs's ceo, why are they wrong?
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>> he wants the american people to know because of the resilience of the economy, because of our economic plan we are in a better place to deal with these global challenges. the president was very clear he doesn't anticipate there being a recession. >> wall street as i mentioned to you are convinced there will be one so you have to remember these individuals, the richest on the planet probably have the best access to information so jeff pazo's worth $100 billion, third richest person on the planet agree with goldman ceo david solomon on cautious times ahead. predicting a recession, upcoming and jamie diamond says 6 to 9 months and the best trader ever on wall street, he says there's going to be a hard landing in 2,023. bloomberg says it is a 100% probably. stuart: is pazo's down to a mere one hundred billion? i thought it was worth 200 billion.
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lauren: he was but there has been a selloff in amazon shares. stuart: sorry to interrupt but inflation is chipping away at our standard of living. people are worse off now than they were a year ago. ashley: according to a report from salary finance, one in 3 workers including those earning 100 grand a year run out of money before payday and 3 quarters, 72% of consumers have less in savings than they did last year, that number up from february. more concerning is the survey found 29% of respondents have seen their savings wiped out entirely. a separate report by lending tree found 40% of adults said they are less able to afford their bills compared to a year ago. bottom line, are you better off
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than you were this time last year, the answer is a resounding no. stuart: thanks. looking at the movers, travel stocks moving nicely. >> american airlines joining united, delta talking about a travel boom in the summertime as we head into the end of this year and the holidays. they did indicate they are starting to reopen and the cow is getting better. stands is a pure macau play, they don't have any properties on the vegas strip left, change of the times, sign of the times and we have carnival signing a training deal with the marine school and marriott acquired a mexican hotel chain. blue 1 t and e thes. lauren: elon musk could possibly have $10 billion more in tesla stock for that twitter acquisition especially if the
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funding partners opt out of extending financing for the deal. as for the quarter itself, had a near -- you had a record sales quarter, on your profit record in the summertime, wall street was disappointed more with the fact they had to cut their production figures which was anticipated but can you imagine tesla being bigger than apple in saudi arabia. stuart: i can't imagine that. lauren: he said that very soberly on the earnings call. stuart: how about the chipsmaker, lam research. susan: it is a top performer on the s&p 500, fantastic earnings quarter for the chipsmaking services provider, 6 wall street banks hiking their price targets, online research, the indicate the us china tensions limit china exports, could hit their bottom line by $2 billion but it is lifting all these chip stocks. stuart: significant gains, thank you.
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tiktok users still at risk of having their personal data hacked by china. even if the administration inks the security deal. many families across the country having trouble finding baby formula so what is being done to fix that shortage? we are on it. black farmers suing the administration. they say the white house failed to deliver its promise on debt relief, now thousands are at risk of foreclosure. the president of the national black farmers association is on the show next. ♪ ♪
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stuart: president biden was asked to name his to optimistic issue, inflation or abortion. jackie heinrich joins me. which was it? abortion or inflation? >> reporter: he said both. we will get into that in a second but yesterday's news was the president was defending his decision to lean on the emergency oil stockpile, not only blaming russia's war in ukraine but went after the oil company saying prices at the pump should be lower but they are raking in the profits. the ftc to date has not found evidence to support the president's claims and price gouging but deflecting criticism from the industry saying he is not slowed us production even though his administration is leasing federal land to energy companies at a slower pace than the last four administrations and encountering criticism over the stockpile releases claiming
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there's plenty left, necessary to stabilize prices and a plan to buy it back when prices fall but could ask are not moved. >> the strategic petroleum reserve exists for national security. the idea of using the strategic petroleum reserve to respond to their failed energy policies is antithetical to our interest. we deplete of the strategic petroleum reserve 50%, the 50 million barrels he approved today will worsen that. >> reporter: the oil industry responded. us oil and gas association president tim stewart saying remind the white house they have taken dozens of actions that will make it harder to produce us barrels they intend to eventually buyback. fixing those prior mistakes will have greater impact than anything announced today but no sign of the white house course correction ahead over here even though they focus recently split between two issues. >> to optimistic issues, inflation or abortion?
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>> all-important. and like you there is no one thing, it crosses the board, domestic, ask me about foreign policy too. there's multiple issues. they are all-important. we ought to be able to walk and chew gum at the same time. >> reporter: the white house said this week the president has done the work to halt inflation even though it is still sitting at a 40 year high. stuart: thank you very much indeed. the national black farmers association is suing the administration saying the white house failed to deliver on its promise of debt relief. now thousands of black farmers risk foreclosure. john boy junior is president of the national black farmers association and joined me now. is it possible this delay in the payout is because white farmers don't get anymore, don't get anything and it looks bad right before the election. is that possible reason for the delay?
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disappointed in the president they repealed debt relief for 16,000 black and other farmers of color. it is a broken promise and a broken contract. black farmers signed the contract, send it back in in good faith thinking the administration was going to deliver on 120% debt relief. 100% of total loans written off in 20% of taxes and now the president is proposing some sort of partial payment or loan modification, that is not what we were promised, the president also promised me a sitdown meeting at the white house when i saw him last july. that meeting hasn't happened. we have 116,000 members in 46 states and the administration courted my support, the president did and now he is in the white house and there to deliver on facetime, that's not the way you treat the people that support you.
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my father taught me you have to be a man of your word. look the person in the eye and give your word you should stand up and make sure that promise happens and the president and this administration and the agriculture secretary broke a promise to america's black farmers and farmers of color. >> are you satisfied with the 2-year performance, where you vote democrat this november? >> i'm very disappointed in the fact we did not receive $4 billion in debt relief and i have been trying to get that relief for black farmers of color for over three decades. it was in the bill and now this administration repealed it which means it is no longer there and now the language reads for farmers -- things of this nature, the people who are hurting are the black farmers
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and farmers of color, millions of acres in this country while we have been waiting for debt relief and that is why i filed my complaint last week along with my attorney in washington dc. i bought my news there. this movement again is a broken promise just like 40 acres and a mule. i want to the administration to know god is still in charge. stuart: thanks for being on the show today. abbott labs changing their leadership, this is at the troubled baby formula plant in michigan. any other kind of changes? ashley: yes they are. abbott says it plans to spend $500 million to build a new baby formula plant in the us saying the market needs more capacity. we don't know where the facility will be but the company reportedly in the final stages of choosing that location which will make
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specialty and metabolic formula. in february abbott shut down one of its plants in sturgis to fix unsanitary conditions flagged by federal regulators. that led to a severe shortage of baby formula in the us. the company started production in july after making upgrades but us sales of certain baby for the products fell by one hundred 2 million in the third quarter from 332 million just a year earlier. it is not fixed yet but they are working on it and that is the message. stuart: thanks very much indeed. we told how empty new york city is on mondays and fridays because people work from home on those days. now cities want to turn all that empty office space into housing. madison allworth will have the story, ceo of united airlines says migrant workers changed havel demand, cripe crowded airports are the new normal. we got the story and by the way
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the market is up nicely, up nearly 400 on the dow as we've got week real estate numbers. we will be back. ♪ ♪ ♪ ♪ mercedes-benz is turning electric... completely on its head. bringing legendary design... and state-of-the-art technology... to a fully-electric suv.
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stuart: look at the markets go, th the dow was up 355 points, nasdaq up 140. this move up started big time at 10:00 with the news of a big slowdown in existing home sales, the housing industry is having trouble in the market likes it. what do you think is behind it? lauren: the reason is it came out better than anticipated for assisted home sales, the lowest in 10 years. the deceleration was slower than anticipated. the number was 4.71 million, higher than anticipated as well. stuart: i don't care about expectations. it is a rotten performance. lauren: the stock market tries to look at 6 to 9 months. it is telling you right now
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that things are getting better. stuart: mitch rochelle, real estate guy joins me now. existing home sales $4.71 million on an annualized basis, lowest level in 10 years. that tells me housing is in trouble. >> housing is in trouble. it is not dead. it took a body blow but not a knockout punch. that's why is my boxing reference for the day but it is slowing down and slowing down dramatically so who is going to get hurt by this? realtors are going to get hurt by that. many people as a side hustle were realtors and that was an extra source of income so they are not going to have that, mortgage brokers, there's a lot of effect of industries that are going to get impacted and the use are industries that really boomed over the last 4 or 5 years so i'm worried about the economic -- stuart: does the slowdown continue? >> i think the slowdown right now people are holding off because they don't know what's going to happen with mortgage rates and so you had a lot of volume because rates are going up and people were jumping and
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because they locked in and want to close. right now we are pretty high so people are holding off. i don't think there's a rational person thinking they should wait because rates are going to go down because i don't see them going down anytime soon so what people are doing is figuring out how to afford it, all of the power is in the hands of the sellers, the power has shifted to buyers in the market is trying to figure out how to cross this thing. stuart: i look at zeal low --zillow and get constant asking price being cut. the alerts keep going up. >> i was going to send them over the course of the week. here's the most common thing i hear from sellers. i'm putting the house on the market and will sell it, quote, if i get my price and i think
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what sellers need to do is recalibrate what their price is because you can't look at the last year and see those crazy prices and think that's going to repeat. what they are doing is sliding back to 2021 prices or 2020 prices which were still up considerably. stuart: if you held the house for 3 or 4 years. the yield on on the 10 year treasury is going up $4.16 which implies mortgage rates are going up from the 6.94% level we had this morning. >> i think you will see something within -- with an 8 in front of it but you brought this up a few times a lot of people borrowed against their fridge account because a lot of big brokerage firms are getting out of that business and those loans aren't as readily available and that is an interesting thing for a cash buyer because they paid cash because they didn't need a
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conventional mortgage, that is a hard piece of paper. stuart: i did that three years ago, paid 1.8%, try to do it now looking at finders. or don't make a lot. good stuff. thanks very much. take a look at 6th ave. midtown new york city, live shot. we are telling you how empty it is on mondays and fridays because people tend to work from home those days. now cities are looking to turn unused office space into housing. madison allworth, you are in an office building. tell me more. >> reporter: it is. we are in one of the officers here which is completely empty as you can see. what is amazing is this space is rented out so you can tell the business clearly has their workers at home. that is why this floor 55 and every floor in this building is going to be converted to rental spaces so it was purchased for
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$170 million, they are the latest in this trend, because of the change from -- i want to bring in the principle of developers, you have been doing this since 1996, did you see an increase in requests after the pandemic and this change in remote work? >> 10fold given the current interest rate environment, they can see in the commercial market 16% to 20% pushing a lot these properties into we refer to as financially underwater, one of the few -- we are not seeing any signs the next 3 to 5 years will be better for the
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commercial market, conversion repurposed thing is the only viable alternative. >> you been doing this for a while, the first conversion, you are working on 3 currently. seems like based on everything you said there is a real appetite for conversion so why are there not more? what are the restrictions that prevent more buildings from being eligible for something like this? >> the current zoning regulations have two days to meet eligibility viable, the 1961 midtown in 1977 downtown, the dates that control convergence. anything built prior to 1961 or 1977 downtown you can convert buildings above, below, in the same quarter, buildings built close to 1961 or 77 downtown
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can only be converted partially, with one big caveat, you can't have can have any commercial tenant above residential so a single commercial tenant at the top of the building built in 1965, building not convertible. >> reporter: even the change of the year open up more buildings that are sitting empty, eligible for that conversion. stuart: thank you very much, chief executive officer of united airlines sounding off on how hybrid work is changing travel demand. what exactly is he saying? ashley: scott kirby says hybrid work is caused structural change in leisure travel demand saying people want to travel and have experiences and hybrid work environments untethered them from the office and give them new conflicts ability to travel far more often than normal. this is not pent-up demand, he
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says it is the new normal. hybrid work makes it so that every weekend could be a holiday weekend. the airline expects fourth-quarter operating margin to be above 2019 for the first time and planning to hire 15,000 new employees in 2023. very upbeat outlook from united airlines's ceo. stuart: good stuff. thanks. next case. a self driving truck company just landed a deal with ikea. you can find a truck driving across texas, the company's founder and ceo will join me next. ♪
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stuart: the price of gas in california $5.88 a gallon,
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$2.05 higher than the national average. lahren seminary joins us now. do the environmentalists have anything to do with these high gas prices in the formerly golden state? lauren: i rented a tesla. i would say almost everything to do with super high gas prices that i can't even imagine paying get. they demonized the industry, trying to push them out of business-oriented new business like this philip 66 refiner behind me, they currently refine fuel oil but next year they shut down leaving just 8 refineries in the state. they shut down to transition to producing and processing renewables. 66 was one of 5 refiners that gavin newsom accused of price gouging recently. phillips response to those charges was measured, that is a good word for it, but valeros
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was anything but. valero's in california is the most expensive operating environment in the country and very hostile regulatory environment for refining. california policymakers have knowingly adopted policies with the express intent of illuminating the refinery sector and essentially turning california into this fuel island, no permits, 0 have been granted for any type of oil infrastructure whether there is a pipeline or storage. >> made it virtually impossible to bring on new fossil fuel production in california or to increase refinery capacity in the state, the issues today are because of public policy in california and that public policy is spreading across the west and across the country. >> reporter: you philip a gallon of gas in california which for every gallon one dollar and $0.25 goes to taxes whether that is federal, state
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or environmental taxes and the governor is not done, he wants to add one more. a windfall profit tax on the same exact companies he has accused of price gouging and he actually called the special legislative session to summer 50 figure out a way to do it. it has never been done on a state level before so i was asking around, is it all bark and no bite? some people are saying there is bite behind the speakers any climate agenda he has wanted to push through he has gotten through. stuart: he wants to be the president of the united states, good luck with that in my personal opinion. when are you coming back to new york? we miss you? lauren: tonight. i will see you on monday. stuart: got you. see you later. i think we missed her. the robotics company kodiak landed a deal with ikea, they are going to pilot their new
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self driving truck deliveries in texas, dan burnett is the founder and ceo of kodiak robotics. are you telling me there are self driving trucks making deliveries in texas right now with no driver, is that accurate? >> that is right. if you have a driver behind the wheel, the system is operating in economist mode carrying freight from baytown distribution center for ikea to the frisco ikea store. if you shop at the frisco ikea store the last couple months there is a good chance it was delivered by an economist. stuart: when do you plan or hope to go completely driverless? i see where the big savings are. if you don't have a driver when do you go driverless? >> planning to do the first
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driver out test in 2024 and then looking to expand our customers in 2,025 so just around the corner. we are not only going to save money from driver cost, there's also environmental benefits, fuel savings and other benefits for utilization from this technology. stuart: how many states do you plan on going to? >> up eventually will we plan to operate in all 50 states and around the world, we are focused on the southern portion of the united states. we have been operating across i 10, i 20 on the way from florida to california and we are pretty much all over the southern united states, gradually expanding the next couple years. stuart: you don't take those trucks driverless through big cities do you? >> we typically stick to interstate highways. we drive through major metropolitan areas but we drive on the highways. stuart: got it, nice, thanks for joining us, see you again
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soon. next case. america's favorite dynasty trading and hunting boots for metal detectors. watch this. >> where you at? >> harlem. >> the water is getting restless. >> there is no water here. what is he talking about? >> the clouds are forming. >> what does that mean? >> not quite sure i understand all of that but the robertsons are here and will share their big announcement and explain what is going on too. next to me in new york, all kinds of stuff, they are investors. where do you put your money? you making any money? welcome? we will be back. omizes your cae so you only pay for what you need! (limu squawks) he's a natural. only pay for what you need. ♪liberty. liberty. liberty. liberty.♪ your shipping manager left to “find themself.”
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tell lawmakers critical currencies are decentralized ponzi schemes. ironically levine left celsius in september 2nd months after the crypto currency in london platform filed for bankruptcy in new york. diamond is a self-described major skeptic of crypto but his bank is reported looking to build out its policy ranks with regular tory scrutiny increasing into the digital asset space. stuart: last time the stars of duck family treasure joined this program they told me about their stock market investments. watch this. >> when fear and panic happen that is when we move in and by. i'm really liking the selloff because you start seeing things that don't make sense. all of a sudden amazon has a 1-day quarter and they forgot how to make money? it is over? let's sell it off? i am buying. stuart: he should come back to new york, said on the set with me and give advice to the common man or woman.
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you would like to do that? >> i like that. stuart: he said he wanted to come back and they are back, jeff and jace robertson. are you buying or selling anything right now? >> i'm buying. i actually bought tesla in the green room. stuart: you sitting in our green room, got on your phone and bought just like that? >> all of a sudden i guess elon forgot what he was doing. i looked at the numbers and thought what is everybody panicking for? stuart: before we move on i want to ask about politics because you've been interested in politics in the past, what will happen in the midterms? >> i did watch hannity last night, you are in pennsylvania, something is wrong with you. is that other guy, something is wrong with him. stuart: i will leave it right there.
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tonight you have an all new episode of duck family treasure on fox business prime. tell me about tonight's episode. >> are you sure we are ready for this? we are on the same network together, they are launching season one, and there's more to come, you get the first season on fox business and there's more to come. stuart: i don't get it, >> kind of like the stock market, hear me out, i was in a traffic accident digging up trash from 150 years ago so all you need is time, trash has become valuable. every time something has gone up it is like a $20 bill. stuart: are you serious, whatever there is to it?
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>> give it time i guess whether it is valuable again. blue one what is the big treasure you come up with? >> my favorite one was we found the thousand-year-old -- deep in the ground, that was really good. say 50. $50,000. we gave half to the landowner and we all took the order. stuart: how did you know it was a meteor right? >> we have an expert. that's why you've got to watch the show. i believe that rock is a meteor right. it is called a parasite. it is the rarest metal on earth because it is from outer space. stuart: a very good story. >> 7 feet deep in the ground. of the one that's a good story too. we are watching duck family treasures tonight on 8:00 pm only on fox business prime. thanks for being with us. still had, jason chaffetz, adam
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