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stuart: shake it out? lauren and the machine. steve hilton is here. i wonder if he has ever heard of shake it out. got to see them live in london. stuart: welcome to the show. we will deal with you later. it is 10:00 eastern. look at the dow industrials up 460 points, one. 3%. the nasdaq up 300, 2.7%. home depot down stocks, leading the dow higher. goldman 2.8%. here's another reason the market is going up apart from the inflation numbers. the yield on the 10 year treasury coming all the way down. 445 at the moment. a couple hours ago it was 464.

that's a huge move. where is bitcoin? any action there? 34, thirty six thousand six hundred twenty eight. a bit above move up. that's the markets rallying this tuesday morning. now this. the president and his party face an internal revolt, congressional staffers want a cease-fire in gaza. the president and most democrats did not. the revolt is growing. more than a hundred staffers wearing masks to conceal their identities, staffers are not supposed to demonstrate publicly against their employer. they are demanding a cease-fire and immediate de-escalation. hundreds of staffers signed open letters pleading for a change of policy for members of congress. one signed on anonymously, 554 said the voices of members of congress hold immense power. we now ask them to use that power to protect civilians in

immediate danger. 400 staff members from 40 government agencies sent a letter to biden protesting his gaza policy, there have been three internal memos to secretary of state blinken, 1000 at the agency for international development signed an open letter calling for a cease-fire. this is politically charged because many staffers are young, under 35. they go to college infected with anti-semitism and are coming out for a cease-fire that will only help hamas. reminding biden that the youth voters slipping away and he had better change course. if they succeed, hamas wins and america will let down our ally, israel, the only democracy in the middle east. second hour of varney just getting started. the aforementioned steve hilton is with us now. is biden losing control of his

own government? >> that question presupposes he ever had control in the first place. the administration is run by people behind the scenes. he's not leaving anything, never been a leader but on this issue a number of things. let's just remind ourselves every time we discussed this how outrageous the calls for a cease-fire are. this is the equivalent of calling for a cease-fire in world war ii before hitler was defeated when jews were being massacred in concentration camps. that's the equivalent of calling for a cease-fire today. that's the substantive point. specifically on these staffers they are supposed to work for members of congress, for their politically collected superiors. that's the way it works. if you want to change your mind you do it privately. that's how it works. you have the conversation, the side the policy and support the policy. if you don't like the policy

resign, you don't go out there, writing letters because you don't like the decisions of your boss. these people are pampered, privileged idiots and if they really feel so strongly about this, get out of their job. stuart: a good last word from you on that subject. stay here because you are here for the our. i want to turn to the process in chicago, locals don't want them there into many migrants are heading back to their home country. scott, you know chicago well. tell us what's going on in chicago? >> i was there last weekend for a wedding where my son was married and i haven't been back in three years. i've been in nashville. that was the first time i have seen the big damage of the last few years the migrant crisis has done. they are on the street corners, they've got children in cardboard boxes, migrant camps

in the lower wacker drive which is more enclosed. it is an absolute travesty. my wife try to go shopping at a couple cvss. everything is locked up. the city has been hollowed out especially where the loop is. i felt sad because there's a black cloud that hangs over the place and they don't have a lot of hope. i was a finance professor in the city in 2015. we did as part of what i was teaching, books on the city of chicago, structurally they were bankrupt. i don't see how they will get out of this. it will be harder to sell real estate. there's been up flight outside the city, like california and new york and to top it off our industry, the cme group in chicago, you've seen the story, threatening to move that exchange to florida, that's how bad it is. stuart: i want to turn to the

inflation news. consumer prices up 3. 2% in the last year. numbers say that inflation has come down but my question is do people actually feel it? >> i use those terms too. inflation is going up but at a slower pace. we went up 3.2% month over month from last year. we have a 25% increase in prices over the last couple years depending what you are talking about, any from 18 to 35. i will average 20% to 25% higher. if anybody out there can take 3. 2% inflation read and go out this afternoon and buy a beer with them good luck. right now the consumer, the citizens are saying show me the money, that doesn't help my $7 box of cereal or my $18 meal. when those prices start to come down we are talking but right

now the consumer has got to be saying show me the money, 3. 2, i don't care. show me a better deal on the things i'm buying every day and we will have something. that cpi number for americans to feel number will be negative. it has to be deflationary, not disinflationary. that just means prices rising at a slower pace. stuart: great stuff, thanks for joining us, see you soon. i want to bring in ashley. good morning, you are looking at the movers. i want you to explain snap which is up 10%. ashley: good morning to you. surging today after reports of a new deal with amazon. they are reportedly starting a collaboration that allows snapchat users to purchase amazon products within the social media apps. also, next up, tesla stock rising today. kathy would called toes look,

quote, the biggest ai play in the world. not a bad title, look at that, stock up 3.5%. next, sally beauty, this company is moving higher and there is, up 15%. it is that despite seeing a drop in comparable sales. inflation is impacting consumer behavior. captain obvious statement. stuart: unionized workers with the largest walkout ever, what do they want? ashley: other than nor money, guaranteed hours, predictable schedules, the union accusing the company of refusing to negotiate for those organized, this thursday thousands of employees are reportedly planning to walk out of locations across the country and the timing is not a coincidence. thursday is red cup a day where

starbucks gives out popular holiday themed reusable cups, the union says starbucks has illegally refused to negotiate in good faith over issues including staffing and scheduling especially for promotions like red cup day. starbucks says it is the union that is refusing to fairly negotiate and has not agreed to meet for months but the stock itself not hurting up 1%. stuart: teachers union president randi weingarten ridiculed on social media after she asked what was behind the rising homeschooling. look at some of the responses. several blame her and her policies. steve hilton, she blamed the pandemic, kids with special needs. she refused to call it ridiculous. >> the shamelessness with which she is pretending we never wanted schools closed and we were the ones fighting to open the school, we all have a tape

of what they said publicly. all those private meetings, union meetings where they were plotting and scheming to keep schools closed, parents waking up to the damage the teachers unions are doing to the opportunities of every american family. no wonder people are homeschooling. stuart: homeschooling doubled, it is extraordinary. >> it's a huge increase showing you the level of dissatisfaction with the teachers union. stuart: really messed up the public school system. that was a terrible thing. thank you. judgment day for mike johnson, the house is expected to bring his stopgap funding bill to the floor today. are we headed for another government shutdown? house ways and means committee chair jason smith will join us at the 11:00 hour to answer the question. .governor gavin newsom cleaned up san francisco's homeless ahead of xi jinping's visit tomorrow but couldn't cleanup the crime. foreign tv crew robbed at

gunpoint. k t mcfarland warned about the optics of biden's high-stakes meeting with xi, she said of biden has one slip up, one senior moment, china will think they have the upper hand. next on that. trading at schwab is now powered by ameritrade, unlocking the power of thinkorswim, the award-winning trading platforms. bring your trades into focus on thinkorswim desktop with robust charting and analysis tools, including over 400 technical studies. tailor the platforms to your unique needs with nearly endless customization. and track market trends with up-to-the-minute news and insights. trade brilliantly with schwab.

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stuart: the rally holds. the dow is up 468 points, one. 3%, nasdaq is up 293, better than 2%. i call that a rally. president biden and china's xi xinping meet tomorrow. edward lawrence is there out of the meeting.

what would be the main focus here? >> reporter: the main focus is to open the lines of communication to manage the competition with china. not to walk away with out anything of the president will announce he's going to lift sanctions on chinese forensics institutes reportedly in order to crackdown and china in turn would crackdown on fentanyl manufacturing and exporting china. the us sanctioned them for human rights violations over the summer when reporting on the administered in working on a deal like this in a letter to president biden foreign affairs committee chairman michael mccall, representative mike gallagher and representative young kim warned the ccp is using americans lives as a bargaining chip to achieve sanctions relief, asian security experts say it is china in the first place that started the whole thing in the united states. >> i wish we would call this

out for what it is. sorry to say we are in a cold war with china. they are mounting full throttle espionage attacks, they are responsible for the fentanyl crisis. they are threatening taiwan daily with military provocative acts. >> reporter: officially the administration sees this as a competition with china as the commonest country moves closer to iran and russia. >> does the president see the new axis of evil, russia, iran and china? with bumper stickers on axes of evil, what he's concerned about is making sure we can protect our national security interests around the world and that includes the indo pacific. >> reporter: no indications from the white house there will be strong pushback in the face-to-face meeting from president biden against

president xi and what china has been doing in the united states. stuart: china policy expert lee steinhauer is with us. k t mcfarland was on our program yesterday and talked about the optics of the biden meeting, the chinese will take any slip up as a sign of weakness. what say you on this? >> i think k t is spot on. optics matter tremendously in this meeting. xi xinping will be signing up president biden, wants to see if biden is all there. what is mental acuity, his physical acuity at this moment and xi xinping will be using that in strategic decisions going forward. i also think xi xinping would like nothing more than to portray himself, strong, vigorous, a declining frail president biden which is symbolic of a strong ascendant china in contrast to a week

declining america. that the image xi xinping and china beloved to portray to the world stage. stuart: biden and xi will sign a new pledge to ban the use of artificial intelligence and nuclear weapons control systems. can we trust him? >> short answer is absolutely not. xi xinping has a long history of not adhering to agreements, you can go back to the agreement with president obama where xi xinping claimed he wasn't going to weapon eyes the south china sea and he weapon eyes to the south china sea. any agreement in terms of ai and defense, i don't trust it and in the coming days, we didn't really agree, we need to talk about it. we've seen that play many times. i don't trust that anything fruitful will come out in that respect. stuart: what is the point of this meeting from america's point of view, just to normalize relations?

>> they will put guardrails and call it competition. it's a new cold war as the other gentlemen noted but they will say we are trying to manage this competition. we can handle china in a responsible way. in terms of normalizing relations and a paradigm shift, it is delusional, and giving xi xinping what he wants. stuart: with improvements on climate. and we give them some trade relief. that wouldn't be a good deal, what it? >> it would be a terrible deal because they would be vague promises around climate change that wouldn't come to fruition anyway. if we gave xi xinping what he

wants which is economic relief from the terrorists, from the export controls around technology and a signal to american businesses to go back into china and invest, we would be strengthening china's economy and creating stronger adversary in the future. it would be a terrible thing. stuart: we might get a fake promise or a promise on fentanyl. that's a possibility. the chinese do nothing. is that likely? >> i would love if china would fulfill their promise around fentanyl. they have been pumping this stuff into our country for a long time and doing tremendous damage but do i think they are going to stop? no. it would be a false promise to elicit economic gains on their end and actually end up doing nothing. i don't believe we will get any relief. stuart: doesn't look like this meeting is up to much.

thanks for joining us this morning. thanks. america's economic powerhouses are shifting from the northeastern core door. come back in here. which cities are the new powerhouses? ashley: cities like dallas, houston, nashville, miami. in the report makes the case the nation's sunbelt releasing those economic powers in the northeast and california. experts say are combination of population spikes, headquarter migrations and sheer size have begun to tip the scale in favor of southern cities. crime is another factor especially in blue run cities where residents are leaving in droves for a better life not to mention taxes, dallas has seen tremendous growth, 300 companies made the move to the

city since 2019 siding pro business climate among other things. case in point caterpillar moved its world headquarters from illinois, blue state, to the dallas area in june of last year. can't say without a doubt that the economic landscape is changing. stuart: it sure is. the landscape is changing. >> gavin newsom is telling everyone california is the model for the nation to follow. people are voting with their feet. hundreds of thousands of individual people leaving, now we see businesses with their location decisions. it's not surprising. the highest taxes in the country in california, the highest housing costs in the country. we have the worst poverty. on and on. and the survey just last week or another one similar, the nikkei, an annual survey of

international business locations. that is a sign of where the global business community is. the top 20 cities in america not a single one, los angeles, san diego, san francisco, san jose, none of them in the top 20 of the top california city number 22. absolute disaster. stuart: it wasn't always. >> that another one, the worst climate for business in the country. stuart: we should stay here in new york. stuart: the bottom right-hand corner of the screen, down 500 points, big tech, all of them up, apple up 187, 370, meta-platforms, move on, alphabet, 134. why?

we've got a more tame inflation rate, 3.2% consumer price over the last year. still ahead, anti-semitic incidents have increased 300% since last year, jewish students don't feel safe on campus. you will hear from a recent graduate of nyu on how she's trying to bring israelis and palestinians together. one hundred thousand people expected to do next to -- attend today's pro-israel rally, america is deploy the national guard. the full report from the national law next. you can't buy great conversations or moments that matter, but you can invest in them. at t. rowe price our strategic investing approach can help you build the future you imagine.

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hive digital technologies. a leading bitcoin miner and gpu cloud operator is building the infrastructure of tomorrow, featuring a robust growth strategy that aims to double its mining capacity while accelerating gpu-on demand business. hive digital technologies. stuart: will you look at this? the rally holds. the nasdaq is up 309. and the carnival cruise lines always get to me. ashley: smooth sailing. they outpaced the wine industry.

90.5%. they are increasing 83.5% to. and this is not looking so pretty. they are pretty wide margin. the revenue for the quarter came in at 97.4 million versus an estimate of $116 billion. it is $1.58. last one, heading in the opposite direction is archer aviation, flying car company. deutsche bank reiterating on the company while maintaining one hundred $25 price target. i'm not going to make a joke about it taking off. stuart: you couldn't resist. ashley: couldn't help it. stuart: many thousands will head to dc for the historic march for israel rally at the national mall.

hillary, same question as before. wise the mayor enlisting the national guard? >> reporter: when you have an event this size they do it. it rises to a level one designation. they do that based on crowd size. we expect one hundred thousand people to rally here today and they also do it based on perceived threat level. there's a big difference from the pro-palestinian anti-israel protests that we've seen in dc around the country. one attendee made the comment that this is the opposite of the protest. this is a show of support, solidarity to israel, a call to bring the hostages home, the -- standing with the jewish people and against terrorism. this is less of a march and more of a gathering. you see the stage set up for me from attendees. we will hear from people including the president of israel, democratic leadership in congress, chuck schumer,

hakeem jeffries and mike johnson. missing from the list is president biden advice president harris. there was a scheduling conflict, the president headed to san francisco today. republicans say he should have made time. >> i can't wait to be out there at the rally today. a very important stance. it is unconscionable to me that members of congress would give political cover to anti-semitism. it would be nice to have the president or the vice president go to this rally. they need to be here. he needs to show his support and we need to project strength on the world stage. the problem with the biden presidency is we are projecting weakness. that is part of the calculation. >> reporter: the event get an official kickoff at one:00 p.m. today but there is already several hundred people gathered for this gathering, this march, this rally today. stuart: i want to bring in catherine risky, a graduate

from nyu. did you personally experience anti-semitism? >> i want to thank you for having the on the show, and i experience anti-semitism, it was in little snippets, wasn't seen. stuart: with a nasty to you? >> when conflicts that occur, israel and palestine, this goes back to 2021. you see classmates not including your own activism in their activism. you see them what they get from influencers like infographics and sharing these ideologies that are anti-semitic and disheartening to see, but it is really just a couple weeks ago going to washington sq.

park, my star of david, a group of people approaching me and they stopped and stared at me, and through buzzwords at me, i am a baby killer, absurd things. i had a couple of options. i could defend myself and not be demonized, fighting for my country, or walk away to avoid any altercation. you see that countless, jews are being targeted for physically being jewish, and can't do that without feeling like someone's going to attack

-- why would you form a group that brings israelis and palestinians together. that's a tough task. can't imagine you get them in the same room. how do you do it? >> 7 my parents always taught me, it sounds, especially nowadays, so many friends are not jewish but pro-life and pro-peace, speak about peace big a subject that matters, completely baffling to say. to bring in people who want to hear both sides, israeli and palestinian communities that want to learn from one another and engage in a respectful dialogue but can better understand each other and outreach programs that will bring and unify as one, it is

so -- stuart: if you bring them together somehow or other, thank you very much for being with us, appreciate it. we would like to know what's going on in our society. changing the subject, internal memo at the state department slams biden's handling with israel, obama administration officials sent a letter supporting biden's israel policy. ♪ (adventurous music)

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stuart: the rally holds. 520 expect as, the nasdaq a 320 points.

a very solid rally because you've got tamed inflation. now this. ahead of the 24 election, what is the problem? ashley: black voters are becoming disillusioned with the economy saying they won't vote for biden again due to inflation, higher rental prices so the feeling of being ignored while others see the president as week and the old. and new siena college poll showed black voters in nevada, georgia, arizona, michigan, and pennsylvania, and wisconsin, are registering 22% support for trump, 8 from -- up from 8% in 2020. the trend has some strategists concerned. biden campaign official recently blamed the financial problems many are facing on, quote, a brick wall of maga

extremism. not sure voters are buying that. stuart: thank you very much. let's get back to the internal memo blasting biden's handling of israel and accusing him of being complicit in genocide and committing more crimes. plenty of people on capitol hill really oppose biden's israel policy. on the other side of the coin. we just got this, 116 biden and obama administration campaign official showing their support to biden's backing up israel. bret baer with us this morning, looks to me like biden's israel policy has split the democrats and the split is getting worse. am i right? >> you are right. there's a real sense the democratic party is splitting on this issue. people on capitol hill are

being very vocal about that, the squad and others but inside the democratic party there is this worry about whether the jewish democratic voter really feels president biden has their back across the board and we see today this massive rally in washington, the president is not speaking they are, speaker johnson is speaking there which is interesting. a missed opportunity. stuart: you could say vice president kamala harris should be there to show support for israel but politically she doesn't want to go. >> that is evidence that the democratic party is truly split on how this is going to happen. stuart: it is important we've got these open letters, the demonstration on the capitol steps earlier today from people who work for congresspeople

saying we've got to cover our faces and we object to biden's israel policy. is biden in control of his own government? >> there is this inside bureaucracy, some call it the deep state. others call it longtime bureaucrat to have been in washington forever. they make their feelings known outside the state department and thinking the president is going too far towards israel and that's an intimate set up in a signed letter. that's why you saw the other officials, the pro-israel statement to try to balance things out but there is this push and pool and this issue will drive a wedge. stuart: credit change biden's policy?

all this pressure could turn him around and say maybe we do need a cease-fire. is that possible? >> it is possible. you've seen sort of an evolution of their talking, a lot more focus on humanitarian pauses, less leash for israel continuing to talk civilian casualties and that's a concern for any administration to see is these images come out of gaza but no one stopping the us, even though we did kill a lot of civilians. stuart: a new book out today, the history club, dual across time, graphic novel for teenagers. you are branching out. >> each one of these books, tried to do a kids book and

this time we did something different. this graphic novel is about middle schoolers in its history club tapped to go back in time and try to fight this villain called history twister who's trying to change elements of history. it's fun, it is cool, you get some real history infused at the same time. that's the main purpose, this is a little different. stuart: you are prolific and that's a good thing. we are watching you tonight on special report, 6:00 eastern. the washington post says biden should not run because the democrat field is stronger, in the washington post. brian kilmeade on growing tensions of the democrat party next. ♪

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through power outages with unlimited cellular data and up to 4 hours of battery back-up to keep you online. only from xfinity. home of the xfinity 10g network. stuart: before mr. kilmeade arrives, the rally continues, it's in very strong shape up 5 points for the dow, 300 for the nasdaq, 10:51.

kilmeade time. look at this op-ed in the washington post. biden shouldn't run, the democratic field is stronger than you think. i can't imagine what's going on behind closed doors, that's what they want to do. brian: of this is what people on the outside are watching in a wreath ceremony or to call the vice president the president yesterday during a hockey ceremony. you see the president fall, they are seeing him have trouble getting out a sentence, don't know if his thoughts are clear. he is not allowed to speak to the press it seems. 's own staff does not trust him to deal with an scripted situation. not even in presentations. is campaign will be about staying at the white house and letting people like rahm

emanuel come back from japan and campaign for him. the congressional black caucus trying to reconvene the black vote and take on trump and have her everybody, to rip apart and make donald trump unacceptable. unelectable. we have seen it already. last week hillary clinton called him hitler. he was called hitler 13 times because of two lines from a speech that lasted over an hour in front of 30,000 people and then they come in and are doing it again. they do it with the court cases, trying to stop his opponent while acknowledging they've got a bad client. stuart: john kirby was asked why america is not escalating the conflict with iran. watch this. >> what is president biden waiting for? is he waiting for americans to be killed before he take substantive action that will give iran pause? >> we are willing to take those

strikes to protect our troops and facilities. we are looking to escalate but if they continue to attack our troops they continue to put their lives in danger and do what we have to do, nobody is looking for another war with iran but we have a viable mission in iraq and syria to go after isis. stuart: should we be taking a more aggressive stance with iran? brian: success -- has always been strength. strength and willingness to use our muscle. you notice every time we hit back we give a statement that we will pick a time to choose. 54 times to choose against us. four time since we hit them on sunday in those two locations in syria. most of our hits are going in from iraq, we've not hit their. there is concern about destabilizing the iraqi government but you've got to stick up for your men and women. 50 have some type of tbi

because of the explosion and concussion even when missile defense does their job. of course we should show strength. we always end of the qualifier we are not looking for conflict. i have news for you, your opponent is. we've given this defense department $900 billion, use it. to defend us. because they are coming here. that is pretty clear. i don't understand what this administration is thinking. you brought the muscle there. stuart: thank you for joining us. i turned to steve hilton, glutton for punishment at the end of the hour. do you think we should be more aggressive with iran? what that risk and escalation? >> the opposite. that's what we saw during the trump administration. you are taking aggressive action to a minute threats, de-escalated the situation, things calmed down after that because they realized we were serious. what you see playing out, the

consequences of this ideology of appeasement that infected the left, they believe if you are nice to bad people they will be good. what we see is the opposite. be nice to bad people, they grow worse. stuart: thanks for being with us for the hour. still ahead. house ways and means committee chair jason smith on speaker johnson's funding bill. will he need democrat votes to get it to pass? gordon chang working to keep them out of nuclear weapons. illegal migrants heading back home. after complaining about their accommodations. 11:00 hours next. ♪

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>> another bed target is 2% inflation rate. if they did this right to help consumers and working folks, they would lower the price level for a year or so and try to get back to where we