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tv   Varney Company  FOX Business  August 31, 2023 9:00am-10:00am EDT

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come down especially given how a.i. driven, people are right now started off with me a while ago we saw this during tech bubble, insanity can go on longer than you emergency eventually catches up i think in q4. >> a do you own energy companies last we spoeb you were plying chevron was it? >> we did own them back then but 82 dollars a barrel, as, going back the prices is high prices, with oil now in 80s, that is we any impact. maria: great conversation we so appreciate time stephanie pomboy joe lavorgna dan niles cheryl casone have a great day will be gone a couple days we will cover jobs tomorrow,
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stuart: we will miss you, good morning, everyone. your money is doing well. stocks again. ai continues to work its magic on big tech. the idea they are done with rate hikes is gaining ground, favorable inflation numbers out a half-hour ago. the dow industrials up one hundred 60 points with "the opening bell," small again for the s&p and nasdaq. salesforce came with strong earnings report, pockets up 78%, from the same quarter last year. they are fed up with san francisco, leaving their office building and relocated, homelessness done them in. salesforce up 6.7%. interest rates are moderating, the 10 year yield at 409, the two year well below 5%, i'm looking at 486 on the 2-year. politics. time for changing of the guard? 80 when-year-old mitch
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mcconnell freezes again, the longest-serving gop senate leader in history. the 80-year-old president is called sleepy and a new book, he spent nearly all of august on vacation. meanwhile the and vigor of vivek ramaswamy make him a standout on the campaign trail, he's 38 years old, ron desantis who managed successfully florida through the hurricane idalia is just 44. re-categorizing marijuana as less risky, is this the end of pot prohibition, pot stocks doing well. will we be an issue in 2024. also on the show today, cleanup from idalia, the storm is now blowing out into the atlantic but look at this carefully. a car flipped by a tornado right there. it flipped. that's a car, south carolina, flipped in a tornado and hit another car.
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thursday, august 31, 2023, "varney and company" is about to begin. ♪ >> they are talking about you, i'm the man. stuart: thank you very much, i'm flattered by that. the news is out. i will be moderating the second republican primary debate alongside dana perino, this is september 27th. fox business will host the debate from the ronald reagan presidential foundation, my thanks to all those who sent in their best wishes. it's an honor for me and for fox business. we look forward to a lively and informative debate. here it comes.
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let's get to the markets and check those futures but for a start the dow is doing nicely on the back of salesforce, the dow stock is straight up. a small loss for the nasdaq was the s&p is up 7 points. adam johnson with me now. wise the market rally in? >> i'm long salesforce enthralled with that action and it is actually a great sort of story for what's happening as a whole. a bunch of activist investors went into salesforce saying you've got to fix this. that was the story of the past year, fixing things, we got through covid. inflation is coming down. we got supply chains back in order, salesforce is one example, one of the reasons it is up, the market is up and i feel quite good about deploying capital. stuart: we been on an upswing for most of the week. >> yes we have but it is very interesting. i had such a fantastic june and
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july, a terrible first three weeks of august. i thought here we go again and the past week we got back on track. blue when you are okay to commit more capital now to stocks. >> yes, more money coming in to the portfolio next week for new clients and we are deploying capital. stuart: i know you're with me for the hour, appreciate that. now, we have president biden just blocked sale of nvidia chips to the middle east. does this have something to do with china? lauren: china has deep economic ties with the middle east, specifically saudi arabia and the uae. nvidia cannot sell its high end ai chips to china and now the white house wants to make sure china doesn't get through offices in the middle east so nvidia will need a license to sell the a100 h 100 gp to certain countries in the middle east. does this hurt nvidia, which closed at a record the past two
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days? potentially. they said china export controls cost 400 million in lost sales. that's what i said. stuart: will anything stop nvidia? >> no and i say that as someone who is long. my original target was 475, my next target is 600. it's always when you purchase stocks you set expectation and when you get to the target it did what it was supposed to and you say to i want to own it? in the case of nvidia absolutely, my next target of 600. i suspect it will get there, then you will say it is the target of 800. i don't want to write the script. that is why. you just never know. it is a powerful story. 30 trillion calculations per second, ten times faster than any other chip out there.
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that's why -- stuart: 30 trillion calculations per second. china does not get that chip but the hottest selling chip made by nvidia is $40,000 chip and by the way you can't get just one, you need several because you need to put them in an ra, lined up and they worked together. stuart: $40,000, need to line them up. >> we are not talking about an nvidia chip in your iphone, we are talking about computers that are very powerful, in air-conditioned rooms et cetera. stuart: 492, nvidia right now you think it is 600. >> i've been long since 175. stuart: congratulations. >> i don't get them all right but i got nvidia right. stuart: well done. that's the market. now look at this. mitch mcconnell freezing up, the priest lasted about 30 seconds. watch this.
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>> what are your thoughts on running for reelection? >> what are my thoughts about what? >> running for reelection? >> did you hear the question, senator, running for reelection in 2026? that's difficult to watch but watch this, from a writer with close access to biden, quote, striking but he took so you morning meetings are presided over so few public events before 10:00 am. 's public this on a reflective physical decline and mental faculties that no pill or exercise regime can resist. in life it he will occasionally admit he felt tired. chris bedford with me this morning. we got leaders showing signs of age and frailty. is it time for a changing of the guard? >> i think it's well past time for changing of the guard.
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american leadership right now is significantly older than we have, the solid bureau is used to make fun of. and showing the signs, this is a new book that is come out the pointed out the majority of democrats and republicans according to recent polling know about president biden, with mitch mcconnell this is the second time he has done this but don't be fooled, there's no chance he will step aside as leader of the senate republicans, number public and is willing to challenge him right now. they've seen this decline in mitch mcconnell in person because they know him and we can recognize these signs can we've seen with our friends and families. they've known this for months and months, maybe years, that mitch mcconnell pushes so much money through the gop conference, anyone knows if they want to go out and be a wildcard like rick scott and challenge him they are going to be cut off from those funds and they don't want to do that yet. stuart: 77% of americans feel biden is too old to govern effectively if he wins a second term in office, do you believe
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anyone thinks that this president can be in office for another 6 years? does anyone believe that? >> i guess 23% of americans, a small remnant still believe that. if it comes down to a rematch in 2020 of joe biden versus donald trump, americans will fall into partisan or tribal lines and even people who think president biden is too old to govern don't like trump and they will choose that vision interesting election to, one that neither side wants. we went it is unique election, no one has seen anything like this before i don't think. look at this. vivek ramaswamy is 38 years old, to santos is 44 years old. are they the new generation? >> i would like to think so. ron desantis, who would have predicted for would be the leading republican state leading texas around the
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country. ron disinterested that but his campaign has struggled, vivek ramaswamy is another person who caught people by surprise. first time i heard about him was my father-in-law saw an interview on fox business a pay attention to this guy but since then since the debate we saw search results across the country absolutely explode because he was someone out there who have energy, fear steve nader, hard worker and he was taking shots at republican orthodoxies that may have been some boops in that room a lot of folks at back in their armchairs and said that guy has got a point. stuart: not just change in personnel but change in policy as well. thanks for being here. it was a pleasure, see you soon. check futures please. i see greentree the dow, modest gain for the s&p, the nasdaq is 10 points lower.
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congresswoman nicole malliotakis call staten island to secede from the big apple over the migrant crisis. does new york regret its sanctuary city status? health officials recommend using restrictions on marijuana. they call to declassify weed as a low risk a drug. doctor marty makary joins us. the devastation in florida, massive cleanup in progress, in a moment we will take you to keaton beach where the hurricane made landfall. watch it right now. we will be right back. ♪ people are excited about what ai will do for them. we're excited about what ai will do for business. introducing watsonx a platform designed to multiply output by tailoring ai to your needs. when you watsonx your business,
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on top of salesforce. lauren: ticker symbol crm, customer relationship management. stuart: keep it up. i need those sentences filled out. florida gold coast has begun cleaning up from hurricane idalia. grady troubling keaton beach where idalia made landfall. what does it look like now? >> reporter: not good. there's a lot of cleanup to do here and some homes have been wiped off the map entirely. we want to get an update florida governor ron desantis in the next few minutes and the fema administrator. they will tour the damage. this is some of what they will see if they come to an area like this. this home you can see the roof, the walls are gone. if you look closely you see the tv on that wall that was knocked over. a mattress propped up against another wall that was knocked over. we spoke with one of the
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neighbors here who told us that the roof of that house and landed all the way over here on another house. they were worried about flooding here but turned out it was the wind that did the most damage. flooding was a big problem in some other communities like cedar key and steinhatchee. we have video of steinhatchee where he saw county sheriff's department officials driving around in high water vehicles, coast guard planes flying overhead, florida fish and wildlife officials on both looking for anyone who might need to be rescued. the good news is officials are not aware of anyone who is missing at this point because of this storm it. today, homeowners are coming back to this neighborhood and others and looking at the damage and starting to file insurance claims. it has been a problem where some companies have considered leaving the state because it
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doesn't make business sense to stay with alma insurance claims people have to make because of these massive storms but governor desantis says he is working on trying to get more companies into florida. take a listen. >> as you know you need to have consumers need to have choices, that's how you keep premium increases in check. we got four in the hopper, one on the way, and when this hurricane season is over we may have more companies in the market. >> reporter: 99% of customers in this county still without power so it is going to be a long road ahead, those helping cleanup and those whose homes are destroyed. stuart: thanks very much indeed. the perfect guess to follow from grady's port, florida chief financial officer jimmy petronas. what are you going to do about insurance, government to bring in more companies, it's going
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to be very hard to get the premiums down, isn't it? >> reporter: thanks for having me. i where a number of hats in the state. i'm also fire marshal, we are doing urban search and rescue searches but there's a silver lining to have went. low density part of the state went through very narrow part of the state, it was a very fast storm, 20 mph so the impact, that county, taylor co. that was hit by this form, has a population of t2000. there's 22,000 living in fort myers beach alone, fortunately for us, the financial impact to those carriers in that area is not going to be nearly the 750,000 claims that her akkadian generated last year. stuart: but you are going to
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face rising premiums. i don't know what you can do about that but the cost of insuring a home in florida especially on the gulf coast, not going to say astronomical but it is going to be way up there, isn't it? >> i tell people all the time if your insurance hasn't got a 50% in the last two years you don't own a home but it's not just unique to florida. rising interest rate environment and rising inflation environment, the fact that your roof is costing 25% more no matter where you live, when capital costs more in these carriers are trying to expand their ability to write risks, the cost of business, cost of money becomes more expensive to the policyholder. the environment of florida is not unique. applicant louisiana, texas, thank god we don't have the mess california has got, the financial markets are adjusting. widgets the cost of business, fixed our litigation problem and that is what the reinsurers
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said, we can model for storms in florida, we cannot model for your litigation environment. stuart: perfect timing today, thanks for being with us. always appreciate it. look at that left-hand side of the screen. a massive oak tree and it fell governor desantis's mentioned. casey to citizen three children were home when this happened. they okay? >> they are okay but that was a close call. this is what casey wrote, 100-year-old oak tree falls on the governor's mentioned in tallahassee. mason, madison, maybe and i home at the time but no one was injured. our prayers with everyone impacted by the storm. the tree was so thick and covered in all that green moss, so it was heavy, it was cleaved right down the middle, perfect split right in half. unbelievable picture. stuart: i've seen a lot of that. is new world state open. they were on the fringe of
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weight times must've been extreme the short. lauren: alone minutes with the average wait time yesterday morning at 11 am normally 37 minutes so yes. disney did opt to stay open. some attractions were closed, to spike the wind and the rain. stuart: i call that an opportunity. >> friends of mine located in tampa to disney last night showed me pictures, here are the grandkids, able to get into the place where they dress up the girls like princesses. it is usually three to four months they walked in. stuart: that is -- >> the boutique -- stuart: someone who has just been there put it well. quickly, sports fans, check futures, you're going to like this, we are up for the dow, per the s&p, the opening balance next.
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stuart: we have the dow industrials going into "the opening bell" up one hundred 30 points. minor loss for the nasdaq, gain for the s&p. mike lee with me this morning, serious question. are you in love with nvidia? >> i just might be. this stock has my head spinning. never seen anything like it. a little over three months ago they gave the largest revenue guidance raised ever until they did it again this quarter and what you are looking at with a i will take several decades to replace one doctor and a year to replace the rest of them. you need to take away from that the x financial growth, not linear growth. nvidia's earnings and revenue the next 12 to 24 months is most likely much higher than
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the street expect because they are the tip of the sphere for ai in that we are about to embark on one of largest check spends the world has ever seen and without nvidia's chips you can't get there and too many people are focused on how ai will affect earnings and do businesses across the rest of the market without looking at the easiest stock to take advantage of this and that nvidia. if they continue on this road it's not outlandish to think they could do $75-$100 billion of revenue next year and earnings are likely to come in between 40 to 50 billion, not where the street estimates right now which is cheaper than people think. stuart: i'm told the best ships to $30 trillion -- 30 trillion calculations per second. does anybody come close to that? any close competitor at all? >> not right now. it will be sometime before this
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revenue growth levels off, it will happen at some point, it could be years away, stock when people look at it, it is so expensive because the pe you look at on your screen is wrong because estimates are far too low. stuart: i don't know anybody who holds nvidia who is selling but i don't know anybody who does not hold it yet and is buying because of that lofty price they are worried, last word to you. stuart: dan ives said it best her over the last 25 years, value driven investors that are bearish on tech have missed every technological advancement, stock price movement thereafter over the same timeframe so what you want to do is to purchase high and sell higher. stuart: that's a good one, well done indeed. purchase high and sell higher. i like this. 9:30 eastern time, the market is now open. we expect solid gain for the
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nasdaq because of the sales force which is a dow stock and really going well this morning. look at the top left-hand corner of your screen, that is salesforce, they are up $13, that 6%, adam johnson rubbing his hands because he knows that. the dow is up one hundred 35 points, close to 0. 40%. how about the s&p 500, i know it's open higher, not much, 6.15%, the nasdaq composite may be dead flat to slightly higher up one. 7%. %. let's look at big tech, meta up. microsoft up. amazon, apple all up, apple at one hundred 87 as of right now. as we told you there is a big big pop in the salesforce this morning, it is up 6% now. what's the story? >> revenue rose double digits, they raised their outlook for the year, benefiting from job
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cuts, cost cutting, price hikes for their customer relations software, artificial intelligence is embedded in the software. is that enough to get the stock which is 5.5% back to the $300 level, where it was at the height of the pandemic? goldman says yes and goldman sachs's price target is $340. salesforce's number one dow stock this europe 62%, more than microsoft or apple. stuart: salesforce is one of those stock picks. >> yes it is an amazing because year ago it was hated and 5 activist investors came in and said the bones here are so good we want to own them and tweak them and build some muscle about it and that's what they've done. stuart: the bones are here. stuart: we had earnings before the bell included from dollar general. my interest there is theft. lauren: they expect it to continue the second half of the year, stock is down 15% of the quarter wasn't good, less foot
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traffic, sales fell down one%, they are selling more bits -- essentials, can't make as much money from that and they cut the earnings outlook for the year. now forecasting a 34% decline in annual profits. stuart: spam, the name of the country that is company, they make spam. >> it is big in your day. never tried it but you grew up on it. we always have this conversation. stuart: i was brought up on it. fried, boiled, whatever. with eggs. with your report. >> stocks down $0.31, they cut their annual targets, these are the reasons, we demand from china and lower prices, competitors cut the price of bacon so they do the same. stuart: got it. campbell soup. campbell soup make little goldfish. lauren: salty snacks are
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booming, welcome to my household, my husband complained yesterday, our kids are eating us out of house and home. campbell's raised prices on their snack category, 13% in the quarter on top of all the other price increases. they increased for your profit targets and stock is 3%. stuart: nice game. stocks rallied yesterday. health officials want to reclassify marijuana as a lower risk drug. that did it. that's why canada's companies went up. lauren: what whatever lower risk classification do? loosen restrictions, grow the market and opened it up to banking. hhs wrote a letter to the dea and said please reclassify marijuana from a schedule one narcotic which is heroin to a schedule 3 so it is less addictive. stuart: looks like we are coming to the end of pot prohibition, gradually winding it down. have you ever made money in part stocks?
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>> no, slap my hands if i ever purchase another part stock again. it just kept going down, really hard to make money in these things, look at stocks on great news just move on. stuart: you got that. >> took my last. stuart: what a guy. is a company i'm really enjoying, costco. they got their sales numbers just released but as i understand it sales in america, the worst performers against sales overseas. lauren: they grew, up 2.8% in the us but internationally it was more than 7%. wire sales at cosco not keeping up in the united states? when costco is addictive, you can go in and purchase everything, planning purchases now. do i need that? no. we are cutting back on the unnecessary food was the strongest category, that essential and the online sales fell 2.5%. online is typically where you
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turn from a discretionary purchase. stuart: my company, microsoft. i don't own all of it, just a tiny sliver. they are unbundling video and chat software. why? lauren: to make concessions to the antitrust authorities in europe to avoid fines. in the 2,010s they paid $2 billion in fines to the eu. they have their chat software which is chat and video and they bundle with office which they are no longer bundling. what does that do? if a company wants video chat but doesn't 20 is micro soft teens, they can use someone else like slap. who owns flak? salesforce. salesforce 3 years ago wrote a complaint to the european union saying microsoft is bundling and we don't like it. so now microsoft is making concessions. don't know if they are enough to appease authorities in europe but it is step in the right direction. blue one they want to take over activevision blizzard, it's
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part of the design which would be i think the largest -- >> microsoft's largest acquisition ever in the distention between the us and europe, in the us, the competition, they try to look out for people, consumers not just in europe but competitors because they want to help their companies because that's the way they do it in europe. that is soft communism. stuart: you knew i would make that comment, you've got stock picks and i want to start with am happy materials. >> stands for mountain pass, the only working rare earth line in the us so this is a way to stick it to china and supply tesla with the rare earth they need for their lecture magnets which lecture magnets are faster. stuart: win resource, the casino you love it. >> for the 29 month in a row, las vegas, nevada, revenues were up $1 billion but when
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will not cover it. you can't get it on weekends. you are not going to get one thursday friday saturday. i own it, leavitt, still trading half of what used to be. stuart: that is true. coming up, dave portnoy making big changes. watch this. change i've been very clear, we are going to have layoffs and cuts they started and it sucks and people who know me, from the beginning, i hate firing people. they are losing a lot. stuart: he has a great way of communicating. we will get more into that later in the show. we are heading into labor day weekend. what is going to cost more at your labor day barbecue? a father and son duo will be here. there's this. the media painting nikki haley as a real threat to donald trump. she attacked trump directly? i'm alaska haley donor after this.
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stuart: a pollster for donald trump warning about nikki haley's rise in i will. what is the poster stay? >> he says desantis is flatlined, haley has surged and vivek ramaswamy is seen as the debate winner. the much hoped-for desantis balance was a dead cat bounce that didn't exist. with haley's surge desantis finds himself with another challenger for distant second place beside vivek ramaswamy, nikki haley. and i will trump's florida whenever one, 44%, desantis distant 18 but nikki haley has inched up to 10%. in my opinion the message is of this. trump might have to switch his
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narrative. it used to be going after desantis because he was the number 2. notice trump versus everybody else. he's positive on vivek ramaswamy, hasn't said much about nikki haley. stuart: these are headlines about nikki haley's momentum. is supreme opportunity, nikki haley starting to look like a real threat to trump et cetera et cetera. come in, bill strong, nikki haley donor. should your candidate attack trump now directly? >> i love seeing those headlines. what we are really focused on our policies that can make life better for americans. we are not attacking, we are going to speak the truth, you saw this in the fox debate last week, nikki is going to tell the truth about issues facing america and putting forward good policies. stuart: she stood out in the
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debate especially on the issue of abortion which many republicans believe they have got to shift their position a little. i think she won the debate on that issue and i'm sure you will agree with that. >> i do agree with that, particularly, she had two difficult pregnancies she mentioned in the debate, her husband could have been aborted. they've been married for many years and coming from a woman it is especially a message, as a person she's lived through, to talk about this issue better than anyone else. stuart: nikki haley is going after, harris, watch this. >> this has nothing to do with her race, this has everything to do with her and compassed. that's what this is about. every american knows that if kamala harris becomes president we are in serious trouble of
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you losing our country. everything she has ever been given she has failed that. that is not an opinion, that's a fact. stuart: i think she's one of the few if not the only candidate to suggest there's a problem for the country of the vice president is kamala harris. she is onto something. >> significant problem. the vice president has failed at every task she has been given. she is responsible for border control. how's that going? she has been responsible for ai, how's that going? to be president of the united states, democrats, ask them, are extremely fearful of her being on the ticket, people feel biden's age, a vote for biden is a vote for president kamala harris. we can't make that happen into nikki haley is the only republican candidate who can win the general election. stuart: nikki haley says she has no interest in the vice
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presidency. are you okay with that? >> i'm okay with that. i'm looking forward to her being president for 8 years. stuart: we will leave it right there, thanks for being on the show. an opportune moment. third-party presidential candidate cornell west slamming the democrat establishment and bernie sanders over what? >> sanders for endorsing biden, the establishment for being dominated by corporate wenger and it is time for an alternative third-party candidate. watch here. >> the argument he is making means there's never any possibility from breaking from the corporate duopoly, and any never any possibility of trying to speak to the needs of poor working people. deep in his heart he knows the democratic party has no fundamental intention of speaking to the needs of poor people and working people, they are dominated by the corporate wing, dominated by the
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militarists when it comes to foreign policy and aoc and the others are going to be in a certain sense windowdressing. >> he's attacking democrats. who does he help? donald trump. stuart: i think so. the third-party candidacy would take votes away from democrats and give them to donald trump or whichever republican is in the lead. >> he would be giving the far left side of the democratic party a place to go. god bless him. he's doing the good lord's work for us. stuart: right. siphon away votes. stuart: i agree with you. coming up, surely there can be no doubt it is time for a changing of the guard. america's political leadership is stuck in the about to retire mode. that's "my take" top of the hour. new york city getting the migrant situation under control, the white house has ignored months of repeated requests. we are live from foley sq. new york city, where mayor adams will lay out his case against biden. how is that? ♪
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stuart: new york city mayor eric adams leading a rally this morning, calling on the federal government to help with an influx of migrants to the city. brian yannis is in foley square. how many are there now? >> reporter: it's not great. 50 people, this rally was supposed to start 7 minutes ago, probably just as many people on stage as there are people here for the rally and this is the first time we've seen something like this. new york city sponsored rally by the mayor calling on new yorkers and business leaders to come out here today to pressure the biden administration to expedite work permits to thousands of migrants who arrived in the city, illegally, overcrowding the city shelters. new york city the faster they can get migrants working illegally, the quicker the 60,000 migrants in the shelter system can get out. more than a hundred business leaders in the city urged president biden to expedite these permits, quote, there is
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a compelling need for expedited processing of asylum applications and work permits for those who meet federal eligible to be standards. there are labor shortages in many us industries where employers are prepared to offer training and jobs to individuals authorized to work in the us, new york governor kathy hochul in the city mayor eric adams have been pointing the finger at one another over the biden crisis, both are blaming the biden administration. hochul met with white house officials who promised they would help identify and reach out to work permit eligible migrants, but ultimately the white house said this is congress's problem. >> the process for applying for asylum, applying for employment authorization based on asylum applications is established under current immigration laws and can only be changed by congress. that's how this process works.
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>> reporter: critics say that ultimately work permits will only encourage more migrants to come to the city which is averaging about 10,000 migrants per month at a cost of $12 billion over the next two years. they might have to start cutting city services. stuart: thank you very much, we hear you loud and clear. adam johnson with me, you live in new york city. >> there are crowds of migrants gathered around all these places like the roosevelt hotel next to grand central station. it is amazing to think we have 6500 people coming over the border every day totally unanswered. if you are a highly trained scientist applying for one of the h one b visas, 65,000 available. we throw in 2.3 million migrants, come on over. but highly trained smart people contributed to the economy, inconsistent, broken, there is no coherent policy of the biden administration. we won the world turned upside down. thanks for being here, quick
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check of the market, dow is up one hundred 20, small gain for the s&p, small gain for the nasdaq. we got the dow winners on the board? yes. salesforce, clear winner today, up to 5. 5%, s&p 500 winners, who talks that list, western digital up 6. 8%. don't know the story. nasdaq, the winners please, right there, we have a, crowd strike, cybersecurity company at the top of the list. still ahead, our political leadership shows signs of aging and cognitive deterioration. that's my opinion. the time for changing of the guard? the california attorney general sues the unified school district over its parental notification policy, they don't want parents to know if their children are transitioning. cory deangelis joins us, will he intervene in that case, marijuana has become a big stink at the u.s. open and players are really noticing it. clay travis response to that, and darrell isa on biden not meeting with goldstar families,
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