probably most important me is the commentary were to be hawkish or dovish? are they going to signal they will cause and see how things shake out or is it sound like there might be future hikes in the cars? >> interesting the three and a half% yields going down even as the fed is raising rates. >> my final thought is fascinated by the fact that so many americans are concerned with government and poor leadership is the number one priority over the economy, that's telling the feelings towards existing administration and was to come. >> it sure is as we danced on default with the debt ceiling raise of president biden setting a meeting up with congressional leaders for may 9. mark tupper, lee carter, great to be with you both. have a great day. varney and co. dow. stuart: good morning. seems like a i is taking over.

alarm bells ringing and getting danger warnings. the man considered to be the godfather of a i has left his job at google as a leader in their ai of her. he says it's hard to prevent bad actors from using a i for bad things. big deal. my opinion? don't pause ai development because you don't know what the bad guys are up to in secret. ai is a race. our guys should win. stocks floor this morning. order points they did. dow down 90. nasdaq done about a points. this could be the start of the day, a huge jump in revenue over the last 12 months and the stock is up 8.98% as we speak. interest rates are higher, janet yellen says treasury runs out of money earlier than thought, maybe trying to influence debt

ceiling negotiations. ten year treasury yield of 3.54%. two year treasury from the above 4%, 14 as we speak. going, not that much movement although we are down 127. bitcoin at 287. hunter biden in court trying to cut child support payments to his daughter. he says he can't afford it. the judge wants to see his income. that spells trouble that could reveal the money that came from china. the sub headline, president biden refusing to acknowledge his granddaughter. there may be a political price to be paid for that. hollywood writers on strike, three late-night comedy shows will revert to reruns. the met gala in new york city, my interpretation? superrich virtual's, virtue signaling. we cover it all. tuesday may 2, 2023. varney & co. is about to begin.

♪ ♪ stuart: miley cyrus. ai artificial intelligence can't be tamed. well done, producers. you've done quite well. ai is getting attention on wall street making a lot of money for a lot of people. how does the average person feel about this big new thing? a fox poll tells the story on lawrence got it. >> 38% say it's a good thing for society but when 6% say it's bad. while most think regulate it, 39% of voters, look at this,

have confidence the government can regulate it property. ai is new and polarizing, some think it will help them do more important work, free them up. others think it's destructive and that includes the godfather of ai, doctor jeffrey hinton, he just clicked his job at google and he told the new york times he regressed the work he's done developing the technology. it's hard to see how you can prevent bad actors from using it for bad things and i'm sitting here saying what do they know that i don't? i'm not scared of artificial intelligence. the open letter and marsha called for the six-month pause, 27000 people signed the letter, 27000 people who know about this stuff in there saying slowdown. stuart: later in the show, only to editorialize about the causing of ai development, i said it's about thing because you don't know what the bad guys are doing in secret. >> you don't know what china is

doing because they are not pausing. stuart: arrays on ai and i want our guys to win. look who's here to cover the market for us, i want to know if you got any idea what ai will do for apple's earnings thursday is it effective for apple? >> the report this week, they would love to see what apples big move will be but i don't think we will see it. apple has been cautious when it comes to ai. a prime technology that could be ai driven, siri is still human written responses was one area to improve and they said there will be ai responses. we gotta virtual reality coming out later this year. the goggles could be priced around $3000 which is a steep price so they are slow because they want to see how it plays out. apple has really meant never been first. they've never had the first phone but they make things

better. stuart: the fed meeting starts today will likely jack up rates and that will put the interest rate that 16 year high. the market doesn't seem concerned about that. >> the fight against inflation is not done so i don't think you'll declare victory yet which is why i think we see 25 basis points hike but the bank failures we've seen, it's a direct result of the federal reserve's policy so every rate hike the fed does, it puts more pressure on banks, the duration of rates matter because depositors are just going to walk their money sitting in things that are barely paying 1%, they are moving money out into treasury so the fed keeps it up if they continue, i think we'll see more trouble out of the banking system. stuart: and then troubles with the overall stock market. >> short-term yes but i think is limited to the banking sector, there's other economies that

look good but still trouble the banking sector going forward. stuart: on the left-hand side of the screen, the six-month treasury security yielding 5. 5.05%. that's not bad in troubled ti times, is it? >> that's where investors are going, we have a treasury fund, that's what investors want and i think they will wait to see how this plays out. that's where money is going, leaving things and going to treasuries paying five and a half%. stuart: david nicholas, thank you so much. got a lot of warnings, warnings on ai and now treasury secretary yellen has a new warning about the debt ceiling. >> a i just figured this one o out, wouldn't that be nice? the new x day is june 1. treasury department has been moving money to continue to pay our bills but janet yellen warned lawmakers the cash is running out early next month so sooner than a lot of people

thought and that's due in part to a drop in irs tax receipts so the president joe biden is calling on the top two leaders in the house and the senate to may 9 meeting at the white house to sort it out. how frustrating. why are we waiting eight days to sit down and negotiate? it's been over 80. i'm also frustrated because democrats are digging in and there are reports they will put a clean debt ceiling bill for a vote on the senate. that's not negotiating and then i want to know is what number? what number can they get behind be for they start negotiations? repugnance want to cut by $3 trillion, what the democrats number? 500 billion? stuart: no number at all. >> that can't be possible. stuart: that's right. [laughter] >> it could be but doesn't seem likely. stuart: it seems like that every year or two years. government shutdown, suddenly they agree and somehow you ag

agree. >> you seem hopeful. stuart: i'm just tired of it. it's exhausting. hunter biden appeared in court for child support hearing monday and ignore questions on why his father the president won't acknowledge the child. watch this. >> hunter, not recognizing his child. stuart: guy benson with us this money. the president of the united states would not acknowledge his own granddaughter. will that be an election issue? >> i'd be surprised, i think it might rub some voters the wrong way especially because the biden likes to talk about the history of the family and his word is a biden and he's a family man, family oriented person and to not acknowledge a member of the family, your own flesh and blood because that's a child whose

inconvenient to the family im image, i think is unseemly. i think to the extent american care about the hunter biden story, it's much more of the alleged crimes, the money has flowed into hunter's coffers because of his overseas business dealings and how it plays with his father, i think as we often say when we discussed this, it's not about the personal failings of hunter biden, is joe biden in the family enriching themselves off of a shady dodgy foreign entanglements but there are probably certain voters who might look at if they know it all, this idea where biden talks about his grandchildren he loves and says a certain number in that excludes one of them. that might not feel great to some voters. stuart: i think so, too. cold this morning, we've got a new one that shows nearly three quarters of adults leave the media is increasing the political divide in our country.

i'm surprised, you're not surprised by that are you? >> how can you argue with that? i understand certain people want to tune into certain media outlets because they tend to agree with the opinion, editorial or whatever but overall the biggest problem with this is the media for the most part and there are exceptions but broadly speaking corporate media is on one side of the ideological spectrum and partisan spectrum and what they do is deny it. if you are on the left in your loud and proud democrat you have progressive values and put your cards on the table and fine, we can listen to what you say and take it with a grain of salt and consider that opinion. what bothers so many americans is gas lighting from the rest, they are down the middle calling affair came when that some or a few fingers on the scale constantly they pretend that's not the case and that's a eroded

trust over and over again. stuart: well done, sir. see you again soon i do hope. check those futures. i see red ink but dow is down 100. coming up, sean pr slammed republicans. >> as we've seen, republicans continued to use this as a political stunt, a political tool and not actually come to the table to have a conversation on how to protect dreamers and farmworkers. stuart: a political stunt. now look at this, a child left alone at the border crying. is that a political stunt? the military tracking another balloon, it flew over parts of hawaii but not clear who it belongs to. ashley hinson joins me live in the studio next. ♪

♪ in

in

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♪ stuart: go big or go home. yes, that is american. it is out of band? >> i used to have go big or go home under my name. stuart: look at that. houston by the way, looks like a nice day. perfect weather in houston. president biden kicked off his reelection campaign that is done little actual campaigning since he made the announcement. jacqui heinrich of the white house. the president is facing low approval rating and we are

concerned about his age. how's he going to address those issues? >> the president hasn't held a single campaign event since declaring reelection and despite growing pressure including voices on the left to get in front of voters and demonstrate his age is not an issue, all he's done so far is joke about it. this was saturday at the white house correspondents dinner. >> call me old. [laughter] i call it being seasoned. you say i'm ancient. i say i'm wise. some of you saw that and austin the video you thought in my heart i blurted out, didn't you? [laughter] >> we are told the plan is to have voters just watch biden being president, they figure here at the white house with trump on the ballot this coming election is about margaret

republican extremism, a democracy under threat, abortion, all the issues democrats here at home in 2020 and 2022 midterms and they think they don't need anything else right now. >> more people voted for this president with his agenda and how he saw moving the country forward than any other president and the president is going to continue to be focused on the job set forth on behalf of the american people and call out the contrast we see from republicans in congress. >> here's one thing we know they are working on, a source tells fox visit effort right now to rehab the vice president's image, they want to put her out in front were often as we saw her featured prominently in the president reelection video, she was there 70 something times i think i read, you're not going to sign her assignments that are winnable rather than issues tough to win like the border and apparently this effort began

with her africa speech so that was the relaunch of vp 2.0. stuart: all right, thank you very much. take a look at this op-ed and i'll quote, biden's acquired attack on role america spells just as bad as manure. ashley hinson republican from iowa, very much a farm state with us this morning. in what way is biden hurting rural america? >> the list is long. thank you for having me on. stuart: go ahead. >> you look at the overstep of this administration, every step of the way whether it's a plan to get rid of stepped-up basis, holdback farmers from being able to invest and pass on their l land. stuart: state tax. >> they proposed that last congress. stuart: the passing family is much more different. >> you look at my colleague with the manure, it smells worse than

manure, epa trying to regulate every ounce of farmland under the u.s. proposal. it is back and congress tried to override president biden and repass into the house and se senate, he vetoed it but the epa if you look at the state of iowa, they want to regulate every pond, ditch, water and stream possible under the guise of conservation but we know it's about control. stuart: sorry to interrupt you but i've got a bee in my bonnet, i've got a farm, if the waters of the united states goes through, i will have to submit environmental protection agency report if i wish to move a rock which is maybe 20 feet from a stream. i've got to do that. >> you talk about the administrative burden it puts on, should not be focused on pulling out paperwork, we want to be the best stewards of the land and we know they are in

this is about someone sitting at a desk in washington d.c., who's never set foot on a family farm making those decisions. stuart: caught dead with mud on their boots. with got a box full, 46% ai technology is a bad idea. that's the pole. there are calls for ai development, i think it's a bad idea because you don't know what the bad guys are doing in beijing and moscow in secret. >> we know china will use this against us as a weapon and a member of the select committee we are doing everything we can to get it right so what it calls for in the united states knowing china will westernize this against us for cultural purposes in our elections, we need to make sure we get it right so it's a will of society approach, government, defense sector, our private sector, tech companies to engage with us at the table and that's where the conversations should happen. stuart: i want competition, microsoft and google to go at

it. no pause in development, i want our guys, the good guys to win. >> that's where we should be headed because we know it's a new frontier and it is scary and faces down just to our country in terms of culture and i guess the unknowns that go along with it and we should be concerned about that but ultimately we need to unleash the private sector but in a responsible way so it's not westernized against us because the chinese will use it against our military and society every step of the way. stuart: before you got into politics, i believe you are in tv and music. >> i know a thing or two about studio. stuart: do you miss tv? >> i miss the people i worked with but i'm pretty happy where i am, i got tired of talking about it and i wanted to do something about it. the 2:00 a.m. alarm clock, not great. [laughter] stuart: thank you for being h here. check those futures. i see red ink as i often say not

that much. dow is down 90, nasdaq down five. back in a moment. ♪

27 minutes past the hour the market open. we got reading but not much. lou, rates are probably going to go up tomorrow to 16 year high but the market doesn't seem to be that concerned is and that a bullish signal? >> very bullish. we should forget that this week, so much oxygen place to talk about what we already know is going to happen. what we need to focus on is earnings, a trump dump truck load of earnings, a mixed bag. the reason to break out silly string brightly but we can celebrate big tech. we talked about microsoft feeding the way, now the speak it apples turned to show why it matters how well consumers are doing. we got an opportunity, analysts on one side like dan warning investors get hammered in apple

and i laughed because i can't think of a better stockton apple. look at the stock and how it's performed since tim cook has taken over and iphone is proliferated, it's a great buying opportunity anytime it's sold off the key to the report coming up the slower order is chinese demand and what the average selling price is, those are the two that will matter thursday and determine where the market goes next. stuart: i've been looking at chipmakers especially nvidia and they seem to be doing extremely well recently. have they taken over leadership to the market from big tech? >> i think they are the underpinning, best the foundation, big tech runs on trips, it's my favorite sector in the market today and forever to be honest because if you look at every tech trend, ai, whether we talk about robotics, automation, electric vehicles, everything wearables, it goes on

and on, consumer electronics, everything has chips and there's only one time in the history of semiconductors with year over year decline and that was back in the financial crisis so if you get a pullback in chip demand, it's momentary because tech proliferates everywhere so easy way to gain exposure, etf gives exposure to the entire semiconductor space as opposed to overexposed to nvidia which you know i hate that because it's expensive but the stocks, etf is a great way. there are other names like a technology company that provides an improved process that makes chips faster and perform better. i do personally own that but it's a company that will win no matter what area the sector takes off. stuart: thank you very much. just in time to see the market open and it's 9:30 a.m. eastern in the market is officially o open. tiny gloss on the downside, 50 points lower at the moment.

we can show it to you, a lot of the dow not yet open, more than half on the downside and seminary on the upside, the dow is down 60 points, very early going. s&p 500 down almost a quarter percentage. nasdaq composite is down .14%. look at big tech with been showing all money, the market opened, microsoft up. apple 170. the other three, meta, athletic, amazon down. as you look at individual st stocks, i will start with ibm because they are planning to pause hiring and i think it's got nothing to do with ai. >> that's what the ceo told bloomberg 7800 jobs could be placed by ai, big office positions in human resources, non- customer say facing roles replaced by machines and five years. i think five years sounds far away.

look at the advancements we are making. i'm choosing to think of ai as not replacing my job but certain tasks at my job so the job will still be here, it would just look different. stuart: with got another one on ai, a negative for the company, online tutoring and this is because of ai. >> since march so recently they saw significant spike in student interest named check gpt. that's an impact on the new customer approach. losing customers, chat gpt gaining customers so what to college campuses do? you writing essays, the equations with it. stuart: i have no answers. >> personal experiences to be written about on essays, don't ask the mass questions, i startle as it is.

stuart: , to show the stock of the day, we were up 6.7% that's a big deal. >> the cfo said record profitability record free cash flow in the ceo said good times will continue. the consumers strong, bookings up 20% on the year. they are using ai. how to more accurately predict arrival time and on board to hire drivers faster, background checks and the like. stuart: everybody is using it. >> they are scared not to, they will fall behind because the best company be the company with the best ai system. stuart: we are used to hearing about tesla cutting prices on some models, are they now hi hiking? >> yes, small increases, think to $50 on the model i and model three so they start about $40000 each so first we are cutting and

now hiking and then cutting and now hiking. i think the hike might signal elon musk is done cutting prices so if you're waiting to purchase model three, by one now because you saw small increase. maybe. stuart: i think we got a loser, isaac. i think it's down, i think it's -- no. sorry. i thought this had something to do with the drop in vaccines. >> covid vaccine sales are down 75% versus a year ago. stuart: why is it up? >> overall numbers were better than expected and pfizer recently told us they expect to launch 19 vaccines in the next 18 months. i can update that, they plan to start late stage study of their rsv vaccine in certain adults in the coming months. stuart: using expectations have gone flat. >> i had to bring it in. stuart: restaurant, burger king and a bunch of others.

>> popeyes. stuart: to naprosyn. >> both change up double digits. they are citing tik tok, a popular jingle but the whopper that helped drive sales and expect to close between 30400 burger king restaurants this year that just came in from the conference call. stuart: if they band tik tok. >> it's amazing because whopper has been a long how long? all of a sudden is cool again because of tik tok. stuart: foreign a half minutes in and show me the big board. i'm afraid we've taken down half a percentage points, the dow is up 160 points. for the dow, merck at the top. microsoft doing well. apple open, j.p. morgan chase and intel. is it time to buy intel? don't know much but top of the list, the s&p. heisey marriott, bookings very

strong. the revenue has gone straight up. we had him on yesterday. nasdaq composite, whose winning? semiconductor, marriott on that list. analog devices. i know some of them. the ten year treasury yield, where are we this morning? around three and a half%, 355 is where we are. the price of gold just around little shy of $2000, 1994. it quenches over 28000 earlier, it's still there. oil $74. gas around $2, 223 and the average price for a gallon of regular on the downside, 359 is the price down to sense. for california to play -- paying an average of 486.

coming up, do you remember gas from president biden? >> we will seize luxury homes and putin's -- yeah. kleptocracy. >> repeat the line. stuart: nikki haley says it's time for competency tests for politicians. treasury secretary yellen said the u.s. could hit the debt ceiling by june 1. sooner than expected. how many times has very larry kudlow seen this? happens every year. larry is next. ♪

the dow is now down 137 points. the nasdaq is down 40 and s&p 60. reading this morning. president biden says we are in the strongest economic recovery on record. his words. edward lawrence had the white house. you voters see it that way? >> not at all. the latest poll that came out, 56% of people believe we are going in the wrong direction, 39% say it's the right direction. the latest economic task can be shown in the bank failures that just happened. president biden brushing off yesterday saying administration has the situation under control. >> these actions will make sure the banking system is safe and sound. that includes protecting small businesses across the country who need to make payroll for

workers and small businesses so let me be very clear, depositors are being protected, shareholders are losing their investments. critically, taxpayers are not the ones on the hook. >> critics say he's making missing the points, three banks failed this year. senator roger marshall and senate and its committee adding nothing is free, fdic's says is in the process of reassessing the increased fees to the banks and to make up losses from failed banks but the senator says the cost has always been passed on to customers. >> management should recognize that, the board should recognize that. more regulations will not ask incompetence but the president is being deceitful, somebody has to pay for this and it's going to be hard-working americans. >> the president playing debt ceiling chicken as early as june 1. the president finally calling

house speaker and other leadership asking for a meeting on the debt ceiling. the house passed a bill that would raise the debt ceiling, the president doesn't like the spending cuts in the bill. stuart: i'm sure he doesn't. thank you. larry kudlow with us this tuesday morning. every year it's down to the wire. every year last-minute solution. i know the stakes are high but why does it always go down to the last possible second? >> it's a game of political chicken that's just the way it works. i want to say right now, the guy who has the wood panel is kevin mccarthy because he's got the only debt ceiling increase budget and i don't think the white house expected this to happen but it did. mccarthy is completely outwitted biden and also chuck schumer

because the democrats run the senate allegedly, they don't have a budget. they have never put a budget together so they are going to have to deal with kevin mccarthy as a leader of the house republicans. i do think the x date is going to come sooner, i don't particularly believe the treasury but the congressional budget office is saying that and i noticed the brookings institute tax policy center saying dan clifton, the peterson foundation for whatever it's called, revenue, tax revenues have come in lower-tha lower-than-expected. maybe as much as 25, 30% lower mostly as capital gains because you have a sloppy stock market last year and lower corporate tax receipts and also more spending. spending is coming in much higher than they thought so they

are borrowing from different funds, from thrift savings plan, borrowing from post office retirement, firing from civil service retirement. it may come in june, that's what it looks like. stuart: a pain in the neck trying to cover something and make it interesting. a difficult task. anyway. i'm desperate to move on as you may have guessed. are you scared of ai? very much in the news these days, warnings we are getting about ai under development. are you scared? >> no, i'm not scared. i'm not an expert in a i did i know there are some issues related to it but i'm a great believer that technology such as always, new technology nonetheless always turns out to

be very good thing. it makes me scramble, it may change a lot of things in the economy. one hundred years ago or more automobiles came into play, a very disruptive thing. you and i have lived through the information revolution in our lifetime. that was very disruptive. many companies went down, many new companies. i think ai is going to prove to be a valuable tool. they are going to be issues that have to be resolved. let me just say this, i don't want to see government regulation right now. i just don't believe government regulation is going to be helpful. artificial intelligence. stuart: i don't want to see a pause. >> in the end is going to prove to be a fabulous thing. >> i went to see microsoft and google go out, our guys compete to get the best product out there and be the bad guys. that's what i want to see.

>> one 100%, yes. this is creative destruction. the new replaced deal and i'm with you, i want to see competition, i want to see as much technology regular as possible. i want to see entrepreneurs, show us how to channel these new technologies and make the economy better and create millions and millions and millions of new jobs. it's right out of cash is creative destruction and i love it and always helps the economy and the naysayers are always wrong. free-market capitalism. stuart: i hope you pound the table at 4:00 p.m. free-market capitalism. competition works. kudlow 4:00 p.m. today on foxbusiness. if elon musk is worried about

artificial intelligence, why is he getting into it? >> he can do a better. he's maybe selling his own stuff, his true gpt is more ethical and can course correct where we are but he says ai is dangerous, he says it threatens civilization. he calls it the ninth dependency on automation, dangerous to civilization if taken so far we eventually forget how the machines work so basically it takes over our lives that we are dependent on. stuart: during the warnings but also getting into ai. okay, got it. good friend of the show, considering a run for office perhaps in florida. he's on the show. education is a top issue for voters, what do parents want from their children's schools? we asked them and we found out and we got the answers after this. ♪

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campaign season in full swing,

so the top issue. madison on the street asking parents, what you want from education? what did they tell you? >> we've heard from people here in chicago and los angeles is pretty consistent coast-to-coast. people are very concerned about teachers leaving and lack of quality in the classroom and concerned about learning losses experienced during the pandemic, that still persists. we've talked about many different issues, education system, need need it to be strong, they feel it's not the case right now. >> more needs to be done and should this happen again we should reconsider closing schools completely. >> we don't have the same quality of teachers in the classroom and it's due to money. >> a loss of teachers during this time so hard to come back from the loss. >> it wasn't ideal especially for younger children not the education system in general steps behind.

>> no no different so is our responsibly to make sure kids get caught up. >> students are falling behind academically at record levels. according to the latest reading, test scores and fast in reading fell 3% during the pandemic. the national assessment of education progress says students on average for a quarter of the school year behind compared to 2019. when you look at the political side, teachers union president randi weingarten testifying on capitol hill worked early 2021 to get goes back open but we are getting an different narrative from a holder local leaders. even lori lightfoot disputing those claims but here's the thing. when you talk to voters, they are not focused on the politics and we asked about school closures and one that said he doesn't want to play monday morning quarterback because it's easy to see now what went wrong. what he wants is his kids and he wants people in power that will make this happen.

stuart: school choice would be a wonderful thing but that's just me. see you again soon. check the markets, 25 minutes, the dow is down 160. nasdaq down 30 points. still ahead, what happens when title 42 is lifted at the border? a search perhaps? had wolf covers it for us. brian kilmeade, why doesn't the president acknowledge his granddaughter? kevin o'leary, as the oil refinery doing? may be running for office. 10:00 hour of bernie and company is next. ♪

♪ ♪ ♪ ♪ sue and good morning everyone and is 10:00 o'clock eastern going to get straight to the money because money is moving this morning, the dow industrial average in the of businesses down 150-point, that is just