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tv   Varney Company  FOX Business  October 6, 2023 10:00am-11:00am EDT

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♪ i feel good ♪ i knew that i would ♪ i feel good ♪ stuart: good song to sing along with on a friday. friday morning in manhattan. it is 10:00, straight to the money. all over the place, can't make up its mind which way to go, strong jobs report, 336,000 created last month. the markets go up and down as it tries to digest the strong report. it is down, dollars up 173, nasdaq is down 92. had been worse earlier. the 10 year treasury yield, 4.84%. that is what is upsetting big tech and the nasdaq. the price of oil is edging up, $82 a barrel. worst week -- thanks for barreling me out. that's the markets.
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britain's prime minister jumped into the transgender debate. rishi sunak said this. >> for parents to know what their children are being taught in school, a man is a man and a woman is a woman, that is common sense. stuart: did you hear that. he went further, said we shouldn't be bullied into believing people can be any sex they want, they can't. those are his words. he make his opinion clear. trans activists want to shut the debate down. to them free-speech is dangerous. india will be is a well-known trans journalist who says the prime minister is putting people in danger and inciting threats to their lives. that's consistent theme. are dangerous if you say a man as a manager woman is a woman, keep quiet, you are putting lives at at risk.
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josh holly --howlaey was asked if a biological male can have a baby, just asking that question is inciting violence, that's not debate, that's shutting it down. what rishi sunak did was he said what you are not supposed to say. it is called free-speech. can you see president biden saying a man is a man and a woman is a woman? probably not. second hour of varney just getting started. ♪ it is friday morning. tammy bruce sitting right there. i was surprised to hear the prime minister said that so straightforwardly. >> there's there is a stage where everyone recognizes every
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civil rights fighting this country was never reliant on limiting common sense or the existence of people or condemnation of a nation or of other people. it was about being recognized for who you are, minorities, i am a sexual minority, there are racial minorities and that is real life. you've got transgender people, that's what's difficult for the extremists who are the activists, that's not a representation of the trans community. i know many transgender people, we know caitlin jenner. there's a recognition from trans people that they are a trans person, there is no debate or confusion about biological women versus trans women or trans men. there are differences. the harm that is done to the trans community is when the extremists try to make the entire community a part of this
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kind of strange approach of wanting no one to discuss things, the only way minorities are able to move through so side and achieve what we want to achieve is when we have open conversation, open ideas. that is what is required for us to be embraced. stuart: another one for you. hillary clinton calling for back lash against the extremists who voted to remove mccarthy. >> do not represent a majority of even the republican party. when you look at the extremists in the house, they don't represent a majority of the country. somebody has to stand up and say enough. at some point there needs to be a backlash against the control that this small group of extremists have. and i don't know who will lead that, but let's hope whoever becomes the new speaker will.
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stuart: do the democrats want hillary clinton making statements like this? >> her statement about the basket of deplorables was scripted. she said it in israel and another private fundraiser in the public event. this was something that was planned. what you didn't hear is where she said because at some point there needs to be a formal deprogramming of the cult members, but something needs to happen. the same iteration, a different framework whereas you get people, she is suggesting, what does she mean, does she mean a camp? does she mean deprogramming, some kind of thing, don't agree with her point of view that we need to be changed in some fashion. people in the house of representatives represent the majority of the american people, they were elected by
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the american people, she was not, she was rejected, she never held the kind of position you have to get elected every two years and face the voters again and again. 70 million people voted for donald trump. this is the reason for the support, not because it is a cult but hillary clinton at the democrats suggest that people who disagree with them should be controlled, deprogrammed. that is the dangerous point of view, not someone who made their lives better. neil: stuart: tammy bruce working up the fire. >> i'm going to blame you. stuart: you are all right. >> should not be swept under the rug. check this out. 336,000 jobs created last month, the unemployment rate stayed at 3.8%. edward lawrence, take us through it. >> the federal reserve will
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look at this and say it's too hot. this is a huge blowout report. it stayed at 3.8%, the federal reserve believes it should be just over 4%, we are not there yet but look at where the jobs are, retail 20,000 jobs, these are hospitality created 96,000 jobs, healthcare about 41,000 jobs, now the president pushing manufacturing today, the labor secretary defending bidenomics. listen. >> manufacturing was 8600 per month but under the former administration it was 41,000, something to celebrate. 's each >> since president biden came into office, there have been more manufacturing jobs, this is unprecedented and a direct
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result of specific investments. infrastructure, manufacturing. >> last weekend, austan goolsbee says he will watch how strong the jobs report needs to be to make a decision on one more rate hike because of sticky inflation. >> are you okay with around 3% inflation? through the presidential election? >> no. i'm not okay with 3% inflation. that's not a target, inflation needs to get to 2%. we are on the way and don't have to have a major recession to keep getting inflation down. >> might be in the minority as we start to hear what could be a mild recession because the federal reserve could be forced to raise rates again.
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stuart: luke lloyd is with us. what is your take away, the market can't figure out what to do with it. >> my reaction, a more socialistic, they were added last month. creating them in the public sector. who is financing those jobs? me, you and inflation. the government is on track to add one trillion dollars in debt in a month in government spending, keeping inflation and again. we saw $275 billion added to government debt in one day. a record. the federal reserve is fighting a losing battle against the federal government have spending addiction. the best boxing match since ali and frazier. stuart: you are predicting a market selloff big time.
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>> there will be rough road ahead. it was not built for higher interest rates. doesn't mean the higher interest rate but bankruptcies. they were false for consumers and businesses as interest rates at the margins. companies and people overleveraged themselves for years but $2 trillion in corporate debt, 20% of corporate debt over the next two years, 50% of government debt means refinance for the list two years. the higher narrative will turn into a credit conversation. that is a snowball effect, i don't think equity markets were priced into potential credit risk. they are overleveraged today. stuart: that is a negative outlook.
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>> it is not all negative. >> the s&p, it is down negative 83%. outside of the top stocks, never thought i would say this but we picked a target because all the crap we had to go through with target and the thefts going on at our get brother her listed pretty low. under the surface. stuart: we appreciate that and will see you again soon. we've got the dow down 230 points. we have some winners and losers, verizon not exactly a winner. >> they are both dow components and a big reason the dow is down 235 points. look at verizon shares, 30 and
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change. stuart: i would love to look up the dividend yields, they always pay a strong dividends. tesla price stocks for model 3. lauren: a prominent analyst says it is promotional narcotics to pool sales forward and that he roads margins, tesla is looking at their goal to deliver 1.8 million vehicles this year. a few months left, they have to do that. the stock has doubled this year. stuart: elf beauty. lauren: affordable lipstick, affordable makeup. stocks up 2.5%, the price target 115. demand remains robust and that it is expanding overseas. stuart: president biden kicking off his third investing in america tour today.
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34% of americans say they are worse off financially. brian brenberg deals with that in the next hour. customers getting fed up with extra charges at restaurants. >> showed me the money! >> show me the money! stuart: i wish we hadn't chosen that screamer. many restaurants say they do the fees to keep up with inflation. chicago wants to force restaurants to pay workers minimum wage even if they make money from tips. john tapper next. ♪ ♪ ...before you even step inside? ♪ discover the magnolia home james hardie collection.
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stuart: markets all over the place, 222 points, dow stocks, the big losers taking thou off, record highs this year and i bet we prepare chicken over beef or pork. lauren: still, we are eating more of it. the usda says each american is expected to lead a hundred pounds of chicken this year. a hundred pounds for me, hundred pounds for you. as we back off beef and pork. the problem is the producers to save money and be profitable, they cut down on their chicken production, closing 6 production plants recently. i'm saying the chicken has flown the coop, those prices
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are going back up and you might have seen it already. this story yesterday on the s&p 500 after they reported higher prices and higher sales for rosen potatoes. the ceo said customers are not cutting back so at a fast food restaurant, they order the fried chicken but also the french fries or combo meal. they are not cutting back with the french fries. analysts say that is a good sign for the consumer. maybe not healthy but the health of the consumer's wallet. stuart: they are tasty and attractive. lauren: to save money i would think you would only order the fries. stuart: moving on. chicago plans to elevate the tips as wage system, restaurants will for before to pay workers minimum wage even if they get tips. john tapper joins me now. what does this do to the
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restaurant business in chicago and other places that do the same thing? >> this is the continuing -- if i look at the uaw strike, they talk about the impact of inflation, beating their income levels. the cost of inflation is causing them to take a different approach with their employers. in the restaurant business, i get it, the employees are killed by governmental policies, they need greater income. the restaurants are getting killed by the cost side as we just saw with french fries as examples, a crunch on the energy side, the labor side, i get it, restaurants are struggling, we are trying to find the dollars that pass through to keep our teams intact. i don't argue with anyone's posture in this but this is the result of the inflationary impact of our businesses.
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stuart: here is something else that might be hit on bars and restaurants. we are seeing more skip out on happy hour, they head straight out, that's another hit. >> of course it is. a lot are not consuming product at the level we used to. all of these have a depression every impact on the business, trying to pay employees well and provide the experience we want to. it is a battle to accomplish that in today's environment. it goes to the environmental policies that are putting this pressure on us all. stuart: to relieve the pressure there's been a steady increase in extra fees added to restaurant bills, restaurant folks say got to keep up with inflation, add it to the bill. is this the new normal? how is the public reacting? >> as an industry spokesperson, we've got to find the money somewhere or we can't continue to operate. our margins are being crushed by these inflationary factors.
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some restaurants are raising menu prices. others are saying i would rather not raise the menu price but put an extra charge on to illuminate that charge. if the inflation reverses itself to some level. people are taking different approaches but we are fighting for the dollars we need to survive in this compression we are living in. stuart: hate to see guys go out of business but i presume if you do you would be the smaller guys, not the chains but the smaller guys are going out. is that accurate? is that what is happening? >> yes it is. that is why sky and i did the rescue mission. a complete sky tear but business management poa system. and using this as case studies. what can independent business do with a few dollars, an
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accounting system and a good knowledge system, to reverse changing in the business model. we are very excited about helping what they do. in chicago, talking about chicago and ralph's sports bar. it gives me an opportunity to dive into the economics and find corrective strategies to create a better business model in the compressed environment we are in. blue one what was so special about the two restaurants? >> we wanted to choose people who had part of their communities. ralph is on -- very act of supporting is the stuff. they suffered in the middle of the chicago community. very active in supporting her local community, both had a certain community spirit that said they should continue to be
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part of the community. as most should. stuart: always a pleasure, don't be a stranger, tell us how the food business is going. >> i miss you, buddy. stuart: try this one. teachers union in california wants to let homeless families live in school parking lots. the low says more active home listings are popping up and some home prices are being cut. is it therefore good time to purchase? mitch rachelle after this. ♪ ♪
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stuart: the dow is down 165, the nasdaq is down 30 points, seesawing up and down.
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a strong jobs report, in the 10 year treasury and two year treasury starting with the 10 year up to 4.82%. doesn't sound like much of a move. in the bond market, that is huge. the two year, 506, all over the place. now it is 5:06, extraordinary volatility in bond prices. the market tried to to digest a strong jobs report. we start with palo alto. >> reporter: they are cybersecurity companies, they are doing well. mgm said likely scattered spider cost 100 million and clorox settable hit sales i 28% in the quarter. cybersecurity is the place to be. on the cybersecurity stocks doing quite well.
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lauren: other snack makers down sharply, not just today but the second day in a row. go to the food store, $7, used to be 450, then remember the ozempic story, more americans on weight loss drugs making the shopping basket smaller. stuart: i don't believe that. lauren: is brought to our attention yesterday and it came from one of our executives that walmart. stuart: mitch rachelle -- >> not by swimming. the demand disruption when you try to slow down the economy the first to go is discretionary ends. has nothing to do with weight loss drugs. stuart: moving on, costco, walmart, down big.
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>> organized retail crime, problem for all these companies particularly target, losses, theft, $112 million and target, violent theft, 120% in the first five months. lauren: the snack makers are down, retailers are down, americans are cutting back. stuart:zillow says this fall could be a sweet spot for homebuyers. mitch rachelle is back. >> it is down 970. stuart: there are more active listings now and some home prices are being cut. therefore, look for a buying opportunity this fall. >> they are self-interested
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because they make money when there is real estate activity. that said, i do believe it is true. rising interest rates are starting to scare home sellers, feeling like if they don't sell now interest rates get too high and buyers will disappear. we talked about sellers being trapped by a low mortgage rate but they don't want to blow market timing so we are seeing an uptick in listings during the period of the year generally six months earlier or later. stuart: doesn't amount to a hill of beans or an uptick? >> when we see existing home sales later this month, we see record low inventory but on the margin we see people put their homes on the market and asking prices that are frothy and sellers getting more realistic. that is why they are dropping asking prices.
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whether it's a good time to buy, absolutely. that's what you see the treasury market doing, interest rates likely to go up rather than come down. if you need to purchase a house, do it now. stuart: mortgage rate, 30 year fixed. >> 7.5 on 8. blue one yield on the 10 year treasury goes to 5%, probably looking at 8% 30 year fixed mortgage. >> the yield curve is inverted because the fact is the market prices, mortgages at the 7 year mark, how long mortgages are jumping off. the 50 basis point in the overall curve is a lot more money in payment for the average. stuart: do you expect to see rents come down anytime soon?
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>> some markets are a lot of building like austin, texas, seeing rents go a little bit because of the excess but across the country i don't see rents falling, builders costing them more to build apartments, they have access demand over supply. there's upward pressure, just talking to parents thinking about their kids moving into the city. they had another high watermark. $1000 a month. stuart: the average for every day. that includes small apartments. think about what you need to make on an after-tax basis. stuart: that is stunning. >> my children are living at home. stuart: nothing wrong with
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that. the teachers union in california wants to let homeless families live in school parking lots. come on in and explain. ashley: teachers union in fresno pushing to allow homeless families to park their cars in high school lots as part of the latest contract offer, this proposal also asks for $500,000 for security in those huts. the school district says we have experts on housing, not going to happen. it's open to better ideas, the district having the conversation. why are they pushing this, the union says the plan is to address a major problem in the area. this district had 496 homeless students in the last school year, that's a 30% increase from the previous school year putting them in high school parking lots. probably not the right idea. stuart: a sad story.
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back to you later. regular gasoline across the country average is $3.74 a gallon. with oil prices falling we could see a significant drop in gas prices by halloween. the economic logic for you. 3 weeks into the autoworkers strike, the layoffs continue and uaw president shawn fain will give an update whether the strike will expand. grady trumbull has the report from michigan next. ♪ ♪ known as a passionate artist.
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the yield on the 10 year treasury went straight up, that hurts the nasdaq. at first the nasdaq was down 200 points. now it has turned around. the yield on the 10 year is still up there but the nasdaq is gaining a little ground, parent losses across the board. the autoworkers strike has entered its third week. grady trumbull, union president shawn fain will make an announcement about extending the strike. do you know what he is expected to stay? >> reporter: hard to say, they remaining tightlipped whether it is going to expand the strike to include more factories or whether he will spare one of the big 3 automakers but i can tell you shawn fain tweeted this, by depicting the mask contestants on the bachelorette, the caption tells me tuning into
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his lifestream this afternoon, to see who gets the ropes. workers have walked out on plants that make midsized suvs and smaller pickup trucks but depending how talks are going the union could hit plants that make larger, more profitable pickups and suvs next. >> it would definitely be. you've got engine plants, transmission plants, everything is on the table. >> reporter: right now the ball is in the unions court, all 3 automakers are waiting for the uaw's response to the latest proposals. latest offer since they started earlier this week, a source close to those says the two sides have made progress in key areas so we will see what comes of that. we told you how big 3 automakers laid off thousands
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of workers, several suppliers to the auto industry, many of the mom and pop shops, laid off hundreds if not thousands of workers, some are worried if the strike continues to drag on they will face bankruptcy so it is serious especially for smaller suppliers. stuart: thanks very much. florida that accuses the administration of retaliation against the state over florida's approach to handling unions. explain this to me. ashley: florida's ag ashley moody accusing the biden demonstration of accusing -- holding millions of dollars in federal funding in retaliation for a new state law involving unions. florida pass legislation that allows union members to revoke their membership at any time, requires unions to summit the number of dues paying members and bands public employers from deducting union fees from
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employee paychecks, the law does not apply to police officers or firefighters but it will have the biggest impact on teachers unions. the biden administration is now holding hundreds of millions in transportation infrastructure funding, florida is violating collective-bargaining rights. so far there has been no response from the administration. stuart: the average price for a gallon of regular gas is $3.74 a few a few cents from last month. do analysts expect prices to continue to decline? ashley: they do. rising inventories and concerns that peak demand has come and gone even though opec is continuing to keep its cuts in its output. the price of crude has fallen to a 5 week low. this is briefly touching $95 a barrel, lastly, $82, gas prices
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have started to retreat, national average $3.74 a gallon but analysts say these prices could drop to $3.50 by halloween. they do point out things could change quickly in the volatile oil market. the national average for diesel has dropped to $4.54 a gallon. analysts say these prices could spike on high demand if we have a harsh winter. stuart: don't forget to sending your friday feedback, email any questions or comments to varneyviewers@fox.com. donald trump endorsed house judiciary chair jim jordan for speaker. can jordan unite the party? troy nels deals with that next.
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and there's no catch. it's free. we make money from ads, but they don't follow you around. join the millions of people taking back their privacy by downloading duckduckgo on mobile and desktop today. i suffer with psoriatic arthritis and psoriasis. i was on a journey for a really long time to find some relief. cosentyx works for me. cosentyx helps real people get real relief from the symptoms of psoriatic arthritis or psoriasis. serious allergic reactions, severe skin reactions that look like eczema, and an increased risk of infections, some fatal, have occurred. tell your doctor if you have an infection or symptoms, had a vaccine or plan to or if ibd symptoms develop or worsen. i move so much better because of cosentyx. ask your rheumatologist about cosentyx. stuart: the market action has been all over the place, the dow is down 45, had been down 200, the nasdaq up as of 11,
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the s&p is down 5 points. trying to assess the strong labor market for the federal reserve. the administration reversing course, build a stretch of border wall. he had to build, is that accurate? >> exactly right. the president saying the border wall walked back is not, they think they are crossing into the united states. the money set aside for this border wall could not be spent on anything else. >> they want to reappropriate the redirected money and wouldn't. i can't stop that. >> reporter: wasteful spending
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has not bothered the biden administration before. dod has spent $300 million on unused order wall panel spending $130,000 a day to store them. the first year of president biden's term when he passed construction the costs were much higher, spending at its peak $6 million for contractors to babysit border wall parks. >> selling the components of the border wall and now they've decided they need a border wall, and they will build 20 miles of it and going buy items to build this wall. >> reporter: the parts that have been sitting still on the border not being watched by people are not going to be used to build this 20 mile stretch they are building. the white house yesterday was asked by one of our colleagues if they don't believe a border wall works, are they going to build and tear down.
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he will not get into hypotheticals which is not a no. stuart: go figure it out. hillary vaughan, thank you very much. donald trump says jim jordan has his endorsement for house speaker. i believe you wanted to nominate trump and now you support jordan. why the switch? >> thank you for having me. that was my intent, to nominate donald trump as speaker of the house. having in-depth conversation with donald trump over the last few days, he said i think jim jordan is the answer. i think he is the individual within the conference that can bring the conference together, walk out of the conference meeting with 218 votes which i said if that is what you think, that is what you believe, you
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are the leader of our party, i will support that. i had conversations with jim jordan and steve scalise. if that is what the leader of the party thinks i will support that. that is why i am behind jim jordan. stuart: is donald trump a kindle maker? he has endorsed jim jordan and some of the votes are swinging towards jordan and he will go down to washington dc next tuesday to the candidates forum, really grabbing all the headlines from the speakers vote, isn't he? >> i'm okay with that. he's the leader of our party. he is crushing all the candidates, he is crushing the florida governor and everybody else in the race. the american people, the republican party have made it clear in polling that donald trump will be our republican nominee, every decision we make within the republican
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conference should make sure that we get the white house back in 2,024. we had the majority. when you don't have the white house you are not getting a lot done. our focus should be 2024. you say kingmaker, when you look at the midterms, there's 150, 160 members of the house in the republican conference the perceived donald trump's endorsement. the bottom, the floor in my opinion would be 150, 160 republicans supporting donald trump. eventually he could get there. let's unite behind jim jordan but i hope -- stuart: will they unite? >> we can't delay this. blue when you have to unite around one of these two candidates. if you unite around jim jordan, you are uniting against a more conservative slant.
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>> again. i hope jim can get there. we had a conversation yesterday. you can only have four, you can't lose more than four. if you can't get there after a few days, maybe a week, look at something outside the conference. stuart: i am short of time but thanks for being on the show today. coming up, brian brenberg on biden struggling to finish his sentences. todd beensman will tell us about the cartel island he saw between the us and mexico. tomi lahren on college students and how they dip into their fun budgets to repay their student loans. the 11:00 hour of "varney and company" next. ♪
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>> key is, look at by any measure, the polls, the thurm

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