tv Varney Company FOX Business April 14, 2014 11:00am-1:01pm EDT
please. then we have amazon. they do it again. so does google and so does facebook. new week, same dynamic story. amazon is giving getting a smart phone of its own. facebook try to get into financial services. google has a tracking system. watch out. hey, you, top income earners. the top 20%, did you know you pay everyone else's bills? here is a number coming right at you. four dollars. four dollar gas coming right at you. look at this, bubba watson wins the masters. he carries his young son through the crowd. he is a popular champion. "varney & company" is about to begin. ♪
stuart: it is a big name. you know it. look at the stock. amazon plans to announce a smart phone of its own. come on in, charles payne. you give the razor away. >> amazon still starting to tread into the hardware side of the business. you make a lot more profits on this side. >> topline growth is fantastic. at some point, you have to start making money. a lot of hardware stuff for a company. they do not get the benefit of the dow like they used to. apparently, this smartphone will
be able to project 3d images without those glasses. stuart: oh, really? that i did not know. >> that could be huge. >> it is a platform to sell more stuff. stuart: you stay in touch with friends. that is facebook. would you bank through facebook. in europe, it is getting ready to launch a financial services system. they want to license it. sandra, that is a huge leap for social network. it is logical. >> let's keep in mind the business strategy here. facebook has been looking for a way to get into the emerging markets for quite some time. they are launching this in
ireland first, by the way. this financial services, you know, it may sound like a stretch. it could be effective in some of those developing nations. >> listen, there is a firm that does research. 1% of people trust social networks. 1% versus 43%. facebook had a product called credits. it did not work out. obviously, they have to throw as much as they can against the wall. stuart: it is a work in progress. check the big board. 16,000. that is a rally. up almost 1%. look at the nasdaq. that is dropping very sharply. now, it is back well above 4000.
nicole, higher profit helped the overall market. city is up. nicole: it is up over 4% today. they came out with numbers that surprised wall street. they failed the stress test with the federal reserve pertaining to buyback and dividend and the like. fixed income was one area of weakness for citigroup. >> that is the market. city up. very nice indeed. i have to reveal a negative for you. gas prices. coming a story again. it has gone up 23 days in a row. obvious question.
four dollar gas, here it comes? maria: aaa is ruling it rolling it out saying we will see gas prices peaked around three and a quarter. watch this. a major story for the consumer going forward. it takes away from where they can spend the money elsewhere. you have a weak dollar because of what the fed has been doing.
>> i think americans -- i think we are used to $4. >> retail sales number out today is a remarkable number. people are sort of redirecting. that was our gigantic number. stuart: you mean the weather, don't you. charles: you wanted us to use the polar vortex. adam: do not put words in my mouth. [laughter] how is this for a number. the top 20% of earners pay 90% of all federal income taxes. the top 20% pay for everything.
they pay 90% of all income money that pulls into the fed. do you know this? do you care? >> i do not think that it is the top issue on their radar. a right-leaning think tank said would you prefer reducing spending or raising taxes. meanwhile, they said to you support raising taxes on the rich. they said, yes, i do support that. very different answers depending on how you frame the question. such a narrow group of people pays for everything. the top 20% pays well over 90% of all federal income tax. i just do not think people know that at this point.
>> are you aware of how much they pay. do you know that the top marginal rate is a different percent. he was startled. pre-reagan, that rate was 70%. he did not believe me. this is in fact the number that people are paying. i think you are absolutely right. stuart: young college people who will get out in the world fairly soon, they have to repay their student loans. a lot of people really in the hole without one. they will pay this tax regime. it seems to me that that whole thing, taxing the risk rich has not sunk into millennial's. i do not think that their votes have been converted from the
left to the right. >> that is definitely true. they will be startled when they see the amount of taxes that come out of it. even if you are not making that amount of money, you still feel it. millennial's notice. when they enter the workforce, they will see something and be pretty surprised by it. stuart: you are going to be a lawyer. >> that is right. i am not already. i have submitted some applications. stuart: just out of interest, what area of the law are you going to go into? >> constitutional law. it is my favorite. i love it.
my primary area of interest. stuart: have you been following the nevada rancher story? >> i have. a little bit. it is quite interesting. it is a sad scene. >> you make sure you tell your millennial friends what is going on in america. we have the dow industrials now up 117 points. bubba watson carrying his son to the crowd. this is how he finished off his final hole.
>> watson wins another green jacket at augusta. stuart: i thought it was a great tournament. >> i love it when good guys finish first. charles: she was willing to root for bubba. >> he did well. >> that was a brief by from when i was with i missed last week. you have to admit i was coming close. charles: we will give you credit. the guy did come in second. he had the lead for a brief
moment. i miss said varney got it dead wrong. technically, he is dead right. he did not make him miss tiger off field. i want to see the ratings for that. the feds backing down from that standoff with cattle ranchers in nevada. he has not paid grazing fees in 20 years. why are the fed standing down. judge napolitano is on the case and he is next. ♪ okay
expires. twitter executives say they will not sell. two and a quarter percentage point gain for twitter. the parents of that boy who killed four people while driving drunk will only have to pay a fraction of his rehab bill. he avoided jail time. he did not know better because he is rich. turns out taxpayers will be picking up the majority of the tab for you this rehab. >> apparently, they pay the equivalent of two days a month of treatment. stuart: his parents, the rich parents pick up two days a month. charles: $1100.
stuart: whoa. >> i blame it on the prosecutors. the government did not trust the facility to provide the rehabilitative program to the kid. the government insists his kids go to another facility where the state pays 90%. the government took a losing case and made it worse. the whole thing is the government's fall. stuart: the rehab center was just a rich man's place. >> i do not thank you can say that. a lot of places provide you with a lot of services. remember, he is beyond jail.
he cannot go to jail. he cannot be punished. this is to rehabilitate him. the one he is going to is just as pushy as the ones one his parents wanted to send him to. this prosecutor has taken a losing case and made it worse. >> those cattle are hours. they stole them from us. they have realized it. they are our cows and they get to come home. stuart: judge, why did the feds a sickly back away here?
>> i think the feds were feds were suffered such a terrible pr loss this is fundamentally unfair. this rancher has had his day in court and lost. the issue was who owns this land, you, the state of nevada or the federal government? the federal government should not be decided what land the federal government owns. he lost the case. instead of resolving this in a peaceful way, they swooped in with black helicopters. with assault rifles aimed and ready. stole this guys property, just
as that woman said. they stole the cattle. just as egregious, they establish something. they established a 25-yard by 25-yard squared off area with duct tape in the middle of the desert and said, you want to protest, you can go in the square and protest. the square was 3 miles away from where these events were going. this is the federal government inoculating the first amendment rights. stuart: some of the protesters turned up with guns. >> they have no ability whatsoever. >> the rancher lost the case.
i do not know if it was fair or not you need to take that amount of money that he owes and docket. the same thing you would do if i owed you money and refuse to pay it. when i got her when i sell that property, the money comes off the top to you. the federal government could have done that. instead, they wanted the show of force. the resistance they got made it sound like enough was enough. we are drawing a line in the sand right here. charles: a lot of angles to
this. people were pushed to their limits. this rekindled the spirit. i am glad people stood up for this. stuart: kathleen sibelius doing her first interview since her resignation. wait until you hear what she says about the launch of healthcare.gov. >> it is the president's ultimate responsibility; correct? >> whatever. ♪
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♪ ♪ stuart: her name, her face were stamped on failure. can you imagine the pressure? we've all been in difficult situations in our lyes, but -- lives, but very few have lived through five years of such public humiliation. throughout it all, she retained her come composure, she saw it through. ms. sebelius, is, in fact, a scapegoat when the real fault lies elsewhere. all right, well, that was just part of my take on friday where i called kathleen sebelius is scapegoat for obamacare.
here's what ms. sebelius had to say on "meet the press" yesterday. >> there was a team in place with other people, outside experts coming in, kicking the tires, regular reports, regular dashboards on the tech side. but clearly, the estimate that it was ready to go october 1st was just flat out wrong. stuart: okay, that's an admission, flat out wrong, not ready to go on the rollout day. so was ms. sebelius a scapegoat? here's what you had to say. jan agrees with me: yes, she was. everyone directly involved in obamacare knew the web site was not going to be done on time. it was built without security, not a way to pay for insurance. tom adds: it is called obamacare, not sebeliuscare. they can blame it on anyone, but it has the president's name on it. steve says: i doubt that she had more than a sponsor role in the project. yes, she is a scapegoat. we have clearly very smart viewers.
good stuff, indeed. we're calling them momentum winners. as of right now, the share price of yahoo! is up 2.5%, up 75 cents. we talk about netflix as the momentum stock, talk about it all the time. it was $400, now it's $333, but it is up today, two percentage points higher. we always love showing you these cool go pro videos. the company's latest'd shows a -- ad shows a giraffe walking over, then kicking the camera. this is free, built-in advertising. they just post this stuff online, people watch it and by the way, go pro is going public. there comes that big hoof. watch out, everybody. [laughter] whoa! now, isn't that good video? that's free. they just put it out there on youtube. free commercial for go pro going public this year. 60% of californians say they're paying too much in state taxes. but can you really have any sympathy for them when they keep reelecting tax-happy leftists? the man who wrote the book on california's tax problem coming up next.
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stuart: it's monday morning, check that 401(k), you will smile because the dow is up triple digits. leading the dow, visa, ibm, cisco. they are dow stocks, all of them up about 2% apiece. are you curious about a particular stock? we told you the tweeters using hash tag askpayne, and today charles has been asked about las vegas sands, and he's going the tell us. >> got a lot of them. i tried to answer as many as possible, but las vegas always stands out because it's a stock i've loved for years. they've missed the street in two of the last three quarters, and it won't be the juggernaut that it used to be. last time they reported the ve neeshes and macao was up, the sands was up 61%. heck, even vegas was up 7 the -- 72%. if you own it, i certainly would not sell it. stuart: vegas was up 72%? what do you mean up?
>> casino revenue, 151 million. but to put it in proper context, the venetian did a billion, and the sands did 700 million. the las vegas operation not nearly as important as it used to be. in fact, bethlehem, pennsylvania, did 115 million, so it's right behind the vegas operation. stuart: that's fascinating. thanks, charles. you know the old saying about real estate, i'm sure you do, location, location, location. later this hour, two locations, new york city, charlotte, north carolina. how much do you get for a million bucks in each of those locations? clearly, there is a huge difference, and you will see it a little later in the show. we call california the formerly golden state, and with very good reason. formerly golden state. according to the public policy institute of california, 60% of people there say they pay too much in taxes. remember, please, a large number of californians voted president obama, and they elected jerry brown both of whom just love taxes.
joining us now is author james lacey who says california's taxes are too much. hold on a second, james. earlier in the show we were saying that at the federal level 20%, the top 20% of income earners -- >> that's right. stuart: -- pays 90% of all the tax money that comes in. >> yes. stuart: it's even worse in california. >> it is. stuart: what have you got? >> the top 5% in california pay almost 63% of the income tax for the state, and the income tax for the state is the most important tax collection method for the state. you know, it's just outrageous. 60% of californians feel that they pay too many taxes, and they do, they pay the highest state income tax -- stuart: but they've -- >> the come to binded federal and california -- combined federal and california state tax top marginal rate 52.9%. the highest state sales tax in the nation. the highest gas tax in the pump at the nation. yes, 60% feel that they pay too
much, but sadly, playing into the narrative of the public employee unions and the liberal democrats that are the ones keeping those taxes high, they still think that the wealthy aren't paying enough. that's what the same poll says. and here is the issue: it is becoming too perilous for state tax purposes to rely so much on wealthy people because in a state like california, all you have to do is go across that border to nevada. they have lovely homes in incline village and pay zero income tax. stuart: is there a move to do that? do you have hard evidence that millionaires in california are upping stakes across the state line? >> we know that high profile people are. phil mickelson and tiger woods have discussed leaving, dennis miller and even bill maher has complained. the liberal bill maher has complained that california's taxes are too high. the reality is that we're or in an untenable position created by public employee unions that have caused the economy to rot because of the unfunded public pension liabilities.
stuart: but hold on a second, we've had two republican gubernatorial candidates on this program both of whom say they're going to lower tax rates in california. >> yeah. stuart: neither's got a prayer of being elected. >> well, you're probably right, but i won't say that the republican party in california isn't making strides. jim bruelte has been a great chairman, he's a former state senator, he's well respected. and i think you're going to see some surprises this fall because right now there's something going on that i term a rainbow coalition of corruption. we've had three democrat members of the state senate this year that have either been indicted or that are under investigation by the fbi. they've lost their two-third majority in the state senate which means that they can't raise taxes on their own. they've got to rely on republicans to do so, and if republicans stay united, we can stop new taxes in this session, and we can make strides. and there's one other great thing that's happened. not only has kevin faulkner been
elected the mayor of san diego which is one of the biggest cities in the nation, but just last week damon dunn, an nfl player, an african-american who's a republican, made the primary to be elected mayor of long beach. now, i want to say something. if damon dunn gets elected mayor of long beach, he's going to be running for governor in four years, and that could be a game changer. >> and isn't there some sort of budding rebellion going on in california with the epicenter being san francisco? i mean, okay, if you don't pay any taxes, you're really on the poor side, of course you vote 'em up. and if you're ultra rich like silicon valley, you can handle it. but even with the retroactive tax, the sales taxes went up, isn't there some kind of simmering anger there that could be exploited or tapped? >> there absolutely is after the last bay area rapid transit strike, there were strikers against the strikers saying that the strikers were causing the cost of the transportation to go up. you know, it's self-evident. in san francisco 10,000 public employees for the city makeover
$100,000 a year. stuart: wait, 70,000 of them? >> 70 makeover 200,000 and 20 makeover 300,000. there's a firefighter in 2013 that was paid $348,000 a year. now, when you figure that that firefighter can retire at 50 or 55 and get 90% of their income for retirement, you can understand why california's going to go bankrupt. if the securities and exchange commission regulated california and they put all that unfunded pension liability on the books, we'd be in bankruptcy court. >> you live in california? >> i sure do, i'm a native. and i know you lived in california -- stuart: i did. >> why do you you live there? >> i wrote my book which has many of these facts, and the reason i wrote it was not to encourage people to leave california, but to encourage reform. recall we are the state of proposition 13, we are the state of ronald reagan, we recalled a liberal democratic governor, and
in 2013 the citizens in l.a. pushed back a sales tax increase. if we can get small strides through the republican party to get these people elected at the local levels, people like kevin faulkner and damon dunn can, we have got a shot. unfortunately, jerry brown has $16 million to run for office, the unions are going to spend five, ten million more, and he's going to get elected governor, sadly. stuart: new jersey's a pleasant state, i do recommend you move. [laughter] james lacey, taxafornia. >> that's right. stuart: come see us again. google says it has found the holy grail in ad tracking. new technology lets them not only track what you're buying online, but also what you're buying when you walk into an actual store. we're going to tell you how it works in just a moment. dow's up 130. ♪ ♪ my name is jenny, and i quit smoking with chantix.
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a serious allergic or skin reaction to it. if you develop these, stop chantix and see your doctor right away, as some can be life-threatening. tell your doctor if you have a history of heart or blood-vessel problems or if you develop new or worse symptoms. get medical help rightway if you have symptoms of a heart attack or stroke. use caution when driving or operating machinery. common side effects include nausea, trouble sleeping, and unusual dreams. my quit date was my son's birthday, and that was my gift for him and me. [ male announcer ] ask your door if chantix is right for you. ♪ ♪ >> tame now for a making money with charles payne. hey, take a look at boston scientific. i've talked about this before. you've got two guys, jerry and pete, they met at a kids' soccer game in 1979, two very different guys with one thing in mind, to create a behemoth. it got in other its head over a long period of time, now they're in the right spot. not only doing traditional things in medical supplies but deep brain stimulation. i think they're going to have a
big hit here, implantable defib ril laters, they're doing so many innovative things. take a look at this stock, they've been with executing so well. in fact, for next year, the fiscal '15, street's looking for 88 cents, they were looking for 60 cents. insiders are bin beginning to nibble at this stock, a huge technical breakout, love the risk/reward. think this should be in your 401(k), and for traders, on the verge of a big pop, boston scientific.
stuart: whoa, strong forecast from web m.d.. nicole? >> reporter: take a look at the stock. big move in the stock, it's up almost 20% today, 19.25% right now for web m.d.. you know, they depend so much on advertising, and that's something that is doing so well for them, sponsorship revenue as we continue to see great demand for their products. so they originally gave out some number, and now they've upped those numbers. their earnings outlook, the forecast is even better than what was originally expected, so for everybody who loves to self-dig nose out there, this stop -- diagnose out there, this is doing well. stuart: doctors hate it because you just look up your illness -- >> reporter: i definitely have it, i know i have it, you know? stuart: 20% is 20%. i'm sure they'll take that. thank, nicole. we've got a colorado company debuting the world's first marijuana vending machine over the weekend. it's going to be used as a dispensary in vail, colorado.
it'll even include technology to read someone's driver's license to verify identity. lauren simonetti with us this monday morning. does this -- i guess this eliminates the middleman, otherwise known as a dealer. >> completely. it gets the pot brownie or whatever you're selling at the vending machine, at the dispenser, straight to the customer. but it's not as easy as getting a snicker bar. first of all, your id has to be preverified, lots of cameras to make sure you are who you say you are, and also you need a medical marijuana card. so it's not that easy, but it really should cut down on theft that goes on. people at all levels of the transaction steal weed, obviously. stuart: making it easy to get and consume. that's what this thing does, presumably. >> and the name of the company is american green. stuart: why not? all right, lauren, good story. thanks so much, indeed. then we have google sort of expanding into retail. as in bricks and mortar. they've got a new project, and
it helps bricks and mortar stores identify the online -- just to see if their online ads are working. we want to know more about this. let me see if i've got this right. by the way, welcome to the program here before i launch right in here. >> thank you for having me. stuart: if somebody advertises online, on google, and you click on the ad but then you go to the store to buy it, google's tracking that. >> exactly. stuart: i think i've got this wrong -- do no, you've got it right. what the stores now are doing is using a data company, and it depends on which company they're going to use, but there are several of them out there that are going to be working with offline retailers, so brick and mortar, to then track that information. so when i go in and buy a sweater, a data company anonymously is going to track me, and they're going to be able to work with google to see what i was searching for and to see if there was any sort of correlation. the term cookies is what we
leave on our computer, little tiny data files when we search for things, and google's able to track that. they're going to marry my actions at a store with my actions online, and that's how they're going to hone in on what my demographic and many demographics are buying out there. stuart: we've got people talking this is the holy grail of tracking ad responses. is it? >> in some ways, yes. well, if you think about it, a lot of people use google to search for items and especially on shopping. i mean, that's one of the first things that i go to and i know a lot of people do as well. but this marriage of this data company in order to track that information offline and then marry that with google, yes. i mean, it's a pilot program now. they're going to see if it really works and what the results come out of that. but if the results are positive, i mean, this could be a game changer for offline and online retailers. stuart: now, you're a retail trends watcher -- >> and a retail analyst. stuart: and you say this
victoria's secret is getting it wrong. what are they getting wrong? >> well, they were getting it right for a while. during the recession people kept going there for bras and underwear. right now they're starting to lose market share from these fast fashion retailers. for example, forever 21, h&m, they're getting into the undergarment industry and into that product line and so, therefore, people don't necessarily want to go be to victoria's secret to get those very expensive undergarments, they're just going to go to these fast fashion -- stuart: that is happening, you say that is happening? >> absolutely. and if they can't somehow drop the price on that undergarment or trying to somehow be competitive with these fast fashion retailers, they're going to start losing even more market share. stuart: what's the word on bed bath and beyond? bad sales report. bricks and more daughter -- mortar failure? >> hesitant, i guess i should say. basically, amazon is taking, again, market share away from bed bath and beyond because, let's face it, so many people, they don't just go to amazon for
books anymore, they buy everything else there products wise; detergent, your groceries now. so bed bath and beyond is starting to lose a little bit of that edge to amazon. stuart: all right. retail analyst let's not forget, thanks for joining us. appreciate it. >> thanks for having me. stuart: all right. you've got a million dollars, where are you going to get the best bang for your buck, new york city or charlotte, north carolina? we will show you the difference in a moment. ♪ ♪
stuart: all right, everybody, look at t, please. beach front's candidate in greenwich, connecticut, just sold, $120 million. new record for america. 13,500 square feet, 12 bedrooms, nine bathrooms, ten fireplaces, a wine cellar. the property includes two islands, a tennis court, and it sits on 50 acres, $120 million. nice place. cheryl casone is here thousand to show us what a million dollars can buy you in two very different markets, new york, charlotte, north carolina. >> okay, well, i have to tell you something. let's be clear, i'm not a real estate agent, so i'm going to
give you the real story on what you get from new york. you get a 750 square foot one bedroom, one bath condo for nearly a million dollars. stuart: that's it? >> this is it. this is what we're looking at. this is 555 west 23rd street, kind of a rough area, it's near the meat packing, this is western chelsea in manhattan, it is okay. nothing to really brag about, okay? you're paying 1327 per square foot for this apartment and, again, this is 20% down, $199,000 down on this apartment, and your monthly mortgage is estimated at $3,688 a month but nearly $p -- $700 a month for maintenance. stuart: if you own property in new york city and you live there, you pay new york city tax rates. >> but you can -- of course you pay new york city tax rates on top of what you're paying. stuart: exactly. >> so is it worth it to you, in your opinion? is it worth it to pay that much
money for a one bedroom? stuart: no. now give me charlotte. $1 million. >> wait until you see what you get out of all of this. this is, it's a six bedroom, five bath, 6,000 plus square foot home. the garage itself is nearly a thousand square feet. this is a very beautiful area, actually, of charlotte, north carolina. the wallpaper choices i wasn't really thrilled about, i mean, i'm not going to lie here. [laughter] but, you know, it's been on the market about 40 days, that might be one of the reasons. recessed lighting, they've got a screened-in porch. now, this sold -- i thought charles would find this interesting, this sold for $680,000 back in 1989, so the appreciation really isn't as good as it could have been, in my opinion, on this one. but you're paying $155 a square foot versus $1300 and change per square foot in man a hat tan. and, again, an okay area. stu stuart we're not saying it's better to live here than there, we're simply saying look what you get. >> absolutely.
stuart: cheryl, it's fascinating. very popular segment, thank you very much, indeed. coming up, new at noon, dolly parton joins us. yeah, country music superstar, but she's also a huge success in business generally. she has made herself into a brand. she's on the show. plus, the man who says we should be bracing for a crash all the way down to 6,000 on the dow. really? something like in this? >> a race for hollywood. the hollywood sign is gone. my dad has aor afib.brillation, he has the most common kind...
...it's not caused by a heart valve problem. dad, it says your afib puts you at 5 times greater risk of a stroke. that's why i take my warfarin every day. but it looks like maybe we should ask your doctor about pradaxa. in a clinical trial, pradaxa® (dabigatran etexilate mesylate)... ...was proven superior to warfarin at reducing the risk of stroke. and unlike warfarin, with no regular blood tests or dietary restrictions. hey thanks for calling my doctor. sure. pradaxa is not for people with artificial heart valves. don't stop taking pradaxa without talking to your doctor. stopping increases your risk of stroke. ask your doctor if you need to stop pradaxa before surgery or a medical or dental procedure. pradaxa can cause serious, sometimes fatal, bleeding. don't take pradaxa if you have abnormal bleeding or have had a heart valve replaced. seek immediate medical care for unexpected signs of bleeding, likenusual bruising. pradaxa may increase your bleeding risk if you're 75 or older, have a bleeding condition or stomach ulcer, take aspirin, nsaids, or blood thinners... ...or if you have kidney problems, especially if you take certain medicines. tell your doctors about all medicines you take.
pradaxa side effects include indigestion, stomach pain, upset, or burning. if you or someone you love has afib not caused by a heart valve problem... ...ask your doctor about reducing the risk of stroke with pradaxa. [ cellphones beeping ] ♪ [ cellphone rings ] hello? [ male announcer ] over 12,000 financial advisors. good, good. good over $700 billion dollars in assets under care. let me just put this away. [ male announcer ] how did edward jones get so big? could you teach kids that trick? [ male announcer ] by not acting that way. ok, st quarter... [ male announcer ] it's how edward jones makes sense of investing. ♪ stuart: where watch the market, and so are you. new week, new direction for stocks. and this, dolly parton coming to the show today. why? we are a business show.
she is coming up. harry dent is with us, very precise on the timing of what he says is the market crash. herman cain is with us. it is the most dangerous scandal he says. 20% of you the top income earners pay all the bills for everybody else. did you know that? are you happy about it? and more on amazon, google, facebook all expanding into new areas. here we go. ♪ >> the dow will go to 16,000 roughly by january and will crash the next few years down to 6800, or 6000, gold will go up to 1525 and then it will crash
down to 700, 740. the s&p will go to 1740 going down to about 500-600. stuart: a very bearish prediction from harry dent last summer. today some agreement from bank of america. they say we will see a 10-15% drop by the fall, dow down, that is from merrill lynch bank of america. harry dent is with us joining us from tampa. his book is called "demographic cliff." the sticking with your prediction and the timing of your prediction? >> i am roughly. we're getting a bubblelike move. we have had three bubbles in the last few years. now here in early 2014 moving up in a clear channel. for the s&p 500 the most clear
on april 4 we got near the top of the channel, i was looking at over 1900. here is the key thing, if we break below 1700, a 10% correction, it says this bubble is over and we have a bigger crash starting sooner. the other scenario, if we go down eight or 10%, go back up and test the top of the channel one more time, that would be even more clear cell signal coming at 17,000 on the dow. this market is boxing itself in, and i do believe we will see a crash by the summer. bubbles do not just correct for, that is what a bull market does. stuart: our viewers like you not because you are very bullish or very bearish. what they like he is a precise number and time. you made a prediction late last year that the dow would hit 16,000 in january.
i think you got that right. he went on to say it would tumble down to maybe 605,800 or over the next few years did you say? >> by late 2016. maybe sooner. stuart: it would come all the way down from where we are now. you will lose 10,000 points by the end of next year going into 2015. now we've got that on the table. you say gold will peak when? >> it made a big crash, strong resistance. somewhere between those two points i think gold is going to fizzle again. gold broke out of an extremely strong move and a sideways channel it should not have broke out on the bottom side. gold is realizing not how much money they print we still get
low inflation, deflation. gold was not the place to be in 2008 when things fell apart, definitely will not be the place this time. stuart: you are very precise in terms of price and time. good stuff. we will see if you get this thing right. i am sure you will be back. citigroup reported higher profits, he overall market helped today. we have facebook getting ready to launch financial services in europe. would you bank through facebook? another big winner today. come on in, nicole, what they do, what is the story? nicole: it is a top story. a leader. what do they do? medical devices, heart valves in particular obviously minimally invasive heart surgery is the way to go, they came out with a
heartfelt displacement system that seemed to infringe on the patents they have. a judge ruled if indeed that is the case now looking at the next seven days to stop selling those products. in the meantime they are going to appeal. up 13%. stuart: thank you very much, indeed. now you have to look at amazon. it is going to start shipping its own smartphone by the end of september. jeremy is here, digital trends editor in chief. give me your general opinion of amazon smart phone, what it is going to do and whether it will be a success. >> anything they touch turns to gold, they own internet retail. you have something like the e-book readers they put out. not sure how they are doing what thethey keep on selling them.
the phone will be a reason to go on amazon services and why their products. however it is a busy market already, a lot of big people, can they make a presence? stuart: cap amazon come up with a competitor moving right to the market? really? >> i'm very skeptical they could get something with a real presence in people's minds. what if it is free. you don't pay for the wireless connectivity. what if wireless is free as a way to sell stuff to you. charles: you may get a low-priced amazon smart phone with free hook up to the internet. and no monthly payment to the carrier? >> that would be my guess. stuart: that is a very good scenario, i can see that happening.
what about the microsoft phone? you've got it. you're going to tell the viewers it is a great phone. >> it is a great phone. windows phone 8.1. a beautiful interface. this is a samsung phone for the first time you are getting something equivalent to what you are getting with an iphone. paying a price for getting a microsoft phone. they are like why would you do that. stuart: is is a good reason to buy one? >> for consumers go to a store and play with all of these things. the one i microsoft is finally competitive. stuart: for once microsoft has come up with an offering more comparable with samsung or an iphone. a winner? >> it is a winner. this is $150, has a great court
cortana feature be at stuart: are you going to pay $100 for the iphone 6? lauren, you tell me. >> i think people would be. there is no headline phone people have to have. whenever the iphone 6 comes out, it will be big, whenever it comes out this fall, people will pay for it. people in the u.s. i don't know offhand the size of it, but it will be a larger phone. right now the 5s sold for 199 on contract. this will be $100 more than that. say apple squeezes out of the extra $100 from the carriers and consumersgot would boost the earnings but 24% and revenue by 6%.
if you are an apple shareholder, many of us are, you want this phone to cost that much money. stuart: what you make of the iphone 6 at $300 on contract? >> apple does not need more money. it is a cool product. what we have a with apple is a fascinating look that spurs supply and demand. they're making products comparable and somewhat better and yet people still go to the apple. people still say i want an iphone, it is the iphone. hard to change mentality like that. stuart: still the leader in the field. >> apple tied with the cheaper phone, it did not sell as well. customers want a high end product. stuart: thank you very much, indeed. we covered google every single day. look at the stock right now up 2.5%. google is testing new technology that will tell retailers if
their ad on google is translating into actual purchases in the store. not just online, in the store. how will they do that? jeremy will answer that question. >> that is a darn good question. google has had a lot of things going on. one of the things is the new google glass. they have this plan to sell google glass to everyone. that is tomorrow. available for the entire world. will people bite? will people say i will get google glass because of this? stuart: they want to make a big splash for publicity. kind of prototypical selling for just one day. it is nothing more than that. >> coming up publicity what people are thinking about. when we see it come out tomorrow, lot of consumers buying this thing. i think we are. rather than just geeks like me, consumers will be picking these things up.
charles: they will shell out $1500 for a google glass? >> that is what they charged me. consumers might get it cheaper. would you buy it if it was a slightly cheaper product? stuart: it is just not for me. would you buy one? >> no. stuart: what david were $30 which mark >> i would be confused by it. i am fine living in reality. stuart: you have to work out the legality of driving. >> they're trying to get mainstream will commit and make the product do what mainstream needs it to do. >> and overcome the privacy concerns everybody is freaked out by. ordinary people playing with them maybe overcoming some of that. stuart: walk into a room full of people, it's knows each and every person. >> there is a valid argument to be made in 2014 we have thrown
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stuart: take a look at walgreens stock. there is news on it, influential group of shareholders pressuring the company to consider relocating from illinois to europe. why would you do that? the obvious answer is taxation. elizabeth macdonald has a full swing for us. go. >> tax rates 37.5%, higher than the average corporate rate, which i think is now 35%. you know what we are seeing? i looked into this. stuart: walgreens at the moment pays a tax rate around 37%.
>> 37.5%. stuart: in states like illinois. throw it all together, illinois makes it unattractive. we are thinking of going all the way over to europe? >> likes of goldman sachs is suggesting it. just the headquarters, to lower their tax bill. when we looked into it, using the names of companies i was surprise and alice are surprised at the companies that have already told the headquarters overseas. applied materials is one. you will see on the list the big insurance company. also looking at others. the list goes on and on. activist. they are considering moving to the netherlands. this is so key, you have been talking about this. you want a fixed income inequality, but the jobs go
overseas because of high taxes, right? stuart: that was good stuff. i want to move on to dolly parton. she is business from start to finish. now promoting the release of her new studio album called "smoke." dolly parton joins us. thank you for joining us. >> thank you for having me, nice talking with you. stuart: i give lessons on how to have a british accent if you would like to have it. i understand i know you as a music legend, got it. but you are in all kinds of businesses. just list for us what businesses you are also in. >> i have a theme park in east tennessee, we also have our waterpark. we have some dinner theaters around the country. and of course my own publish
comforting, production company and all sorts of things. i have my hands and everything. stuart: do all the businesses you are in, do they make money? >> yes, they do. i am fortunate with that. very productive with that kind of thing. i have been very blessed. stuart: would you cut it out? get rid of it? >> yes, if i could. kind of revamp it, make it make money. after so much time you have to be smart. get off into something else. stuart: it sounds like you do the management. you are in charge, do you write the checks? spiegel i'm blessed with great people. i go to business, the theme park
i'm in with the family and they have spent their lives during the themepark business so i don't pretend to know everything about all the runnings of it, but i surround myself with people who are smarter than me, so i have been blessed i have had good people, but i am totally hands-on. making a lot of decisions at least i can say no, i don't like that idea, or that is a wonderful idea. we work wonderful together. i do have great people to help me run them. stuart: tell me about qvc. >> what you are doing now, kind of a new them are doing. a one hour special on april 27, we will have the new cd, so people kind of watch and call in
or make orders and all that, so that is just another wonderful new vehicle for selling records. stuart: i did not see you in the forbes billionaire list. will you get there soon? >> i don't care about any of that, i count my blessings more than i count my money. i'm a millionaire times over in clement and fun. i don't boast and brag about those kind of things. i am not opera yet. stuart: you have given us a soundbite that will live forever. i count my blessings, not my money. we should all do that. good stuff. >> we should do that first, at least. stuart: good luck with qvc. >> i love that line.
>> her brand is her image, i hear she never leave the house without hair and makeup. his dedication to your brand. stuart: the richest 20% of the income earners in this country pay 90% of all federal income taxes. if president obama has his way, they will be paying even more. and what margaret thatcher would have said about this. my take on it is next. peace of mind is important when you're running a successful business. so we provide it services you can rely on.
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stuart: herman cain is ready to answer this question. is the irs scandal the worst scandal in american history? his answer coming up 5 minutes from now. bubba watson wins the masters. golf poll pulls in ratings even without tiger woods. got it? income inequality is going to be a theme this election season. you heard the argument, the rich are getting richer, the government needs money so raise taxes, it's only fair. there is another side to this
claim. actually several sites. start with this, upper income earners already pay almost all of the federal income tax. top 20% pace 90% of washington, d.c., income tax revenues. note was a room with 100 people in it, 20 of them pay for everything for the other 80. is that healthy? shouldn't we all share at least part of the bill? if only the rich pay, surely that is not fair. this tax the rich policy has consequences. you don't get economic growth for five years. we have been stuck with 2%. why? clamping down on animal spirits. there are other consequences. walgreens is considering leaving america to go to europe as its home base. why?
taxes. governor quinn wants a minor tax to bailout pension funds but even a democrat is refusing to go along because taxes are high already. tax the rich jihad goes into reverse when reality kicks in. 20% pay 90% of all the federal income tax. only 65% of 1980. single generation paying for the goodies has been turned on its head. a shrinking minority now pays for everything. $20 trillion from that 20%, he wants to cut the tax breaks for wealthier people so they can pay even more. he doesn't care that it doesn't work so long as the people who pay nothing vote for the left. so when crunch time comes tomorrow and you file your tax return, if you are paying uncle sam, you are in a small minority
stuart: i want to bring in the latest on heart bleed, a security flaw that could leave your personal financial information exposed to hackers passwords as well. it could affect about two-thirds of all websites that you use. we're trying to get john mcafee on the phone. he is an expert in this area on security. we will get him and bring him to you when w he is available. at the irs. herman cain is with us. i want first of all for you to listen to what monica crowley said on this program regarding the irs scandal. >> i think actually thought and given the context the obama administration thus far they could do that and get away with it. not true. the irs scandal is most dangerous scandal in u.s. history. stuart: the most dangerous scandal in u.s. history. welcome back the program, do you agree with monica crowley?
>> yes, think monica' exactly right for the following reasons. the irs has 80,000 ways they can intimidate a taxpayer. it is called the $80,000 pages of the tax code. secondly they can ask unlimited information of a taxpayer and you would have no idea whether or not that is legal, legitimate or not. but here is the biggest reasons why does the most dangerous scandal. if a taxpayer decides to challenge the irs, they have to use their individual knowledge whereas the irs has virtually unlimited dollars and unlimited time to drag out any challenge that might come from a taxpayer. i know firsthand from what i went through as the early 1990s, it can impact every
taxpayer in this country. stuart: unions putting pressure on house democrats to pass the keystone pipeline, build it. threatening to punish 27 of these house democrats come november. why are they doing that, why are they doin going after house dems not trying to impact the outcome of senate races? >> democrats already are in a minority in the house, so they don't really give us that much, that is why they are not going after the senate. the big point here is they have finally awakened to the fact jobs are more important than politics and they're simply trying to send a signal by saying they will punish some house democrats when that will not do anything because they already do not control the house.
stuart: i take back the word extreme. with the exception of environment list, seems almost everyone is in favor of building that pipeline and build it now. so at the end of the day do you think the president will submit to that pressure and say yes, build it, or not? what are you say? >> keep the word extreme in their because that is exactly what he is doing, responding to the extremist. this president has demonstrated time and time again that he doesn't necessarily listen to the pressure coming from the people or the constituency or the business people, but he is going to look at it as a political decision first and it depends on how much support he and the other democrats are getting from these extreme environmentalists versus what they're getting from other groups. that is really the bottom line, unfortunately in this administration. stuart: spending $100 million in
electoral support funding if you agree with don't build the pipeline and get on board with climate change. $100 million, that is a lot of money in this coming election. >> isn't it ironic that you have somebody who wants to spend billions, millions of dollars to basically push this phony climate change argument, but you also have many democrats who want to demagogue the coke brothers? harry reid being the lead demagogue or of the coke brothers. harry reid has a coke addiction. that is as in the coke brothers. said nothing about the money that is being put out there to help promote this whole climate change argument, which also at this point is simply bogus.
stuart: that is a good way to end it. , again soon. love it, thank you very much. the dow has taken a nice leg up, up 151 points and climbing as we speak. we have john mcafee on the phone with us now. talking about this heartbleed, i guess that is the security used on many websites, it has been broken and a lot of people's passwords are now out there floating around. it seems to me that my personal information, my passwords, doesn't everybody else seemed to be out there. we seem to have gotten connected to this. we can be hacks at a moments notice but don't see that much care on the part of the general public and that is because if something bad happens, i don't
pay, the bank pays, the retailer pays. do you agree with that? we're getting too complacent? >> we've lost our awareness. the problem with losing our awareness, we will eventually lose our money. the bank pays, credit card company pays. we will start paying. and then we will pay attention. that is the problem. taking a few pennies from the account. this one went on for years. the same thing could be happening now with heartbleed. we have no clue. we are no longer aware of what we have done. technology leading us rather than us leading technology. stuart: but you can't stop it, can you? the only way to stop it, we have
changed all of our passwords when this is fixed. that is about the only thing you can do in the short term, isn't it? >> absolutely. i have been notified by e-mail accounts, yahoo, google, saying you have to change your password. but this is two years, too late. i have developed an app released last week, and awareness app. you run it, it makes you aware of all the things you have done. those that are listening to you, reading your e-mails, reading your messages, even making telephone calls on your behalf. that you simply don't know about because people don't seem to care. the people who have downloaded and installed this app so far, many thousands, are all shocked by what they have done. the game apps that are free, they are free because they are watching, listening and collecting information about where you are, what you are doing, what you are buying.
stuart: i am out of time, but clearly i know what you're talking about and we are not aware of the extent of this penetration. talk to us again soon, please. m is on own smartphone. will it be a hit with investors? and three systems down again because of more negative comments from the man who said this. >> the company makes the machines, little jewelry, usually a glorified play-doh factory. [ chilen yelling ] [ telephone rings ] [ shirley ] edwa jones. this is shirley eaking. how may i help you? oh hey, neill, how areou? how was the trip? [ male announcer ] with nearly 7 million investors... [ shirle] he's right here. hold on one sec. [ malennouncer ] ...you'd expect us to have
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>> first up, facebook social networking getting ready to launch financial services that will let you make payment and store money through facebook. they want a license to do that in ireland. use that as a stepping stone to more of europe. take a look at facebook shares, they are up almost 2%. now to google, the company said they found the holy grail in ad tracking. but in a nut or a track what you are buying online, but also what you are buying when you walk into an actual store. google shares up 2.5%. the colorado company debuts the world's first marijuana vending machine. to be used as a dispensary in colorado. being called the zazz machine.
start with you, we are bouncing back today with the major average mostly down on the year. do you think this is the column before the selling storm hits us? >> that is hard to say, stuart. i'm not seeing the jitteriness out expect if that were the case. this is probably ahead of earnings. they may prove more resilient than people think. in which case this is probably stable, steady as she goes. stuart: your thoughts on the prediction. >> as a farmer once told me, if you bet on the world ending and you win, what do you win? we will go with the fact that we think some of these things are going to gyrate sideways down here, but ultimately we will see some correction. stocks could go lower from here but at the end of the year we will put 10% on the market.
stuart: i think all of us will take that. down year for the market so far. maybe some good companies are on sale right now. what do you say about that? >> i think ultimately i took my stockpicking combine and through some things in there to come up with some things i want to get along. i want to buy it around 23. take a look at night transportation. let's buy that one too. about 22, 21. ibm, i love that one because of what they're doing with the cloud and anyway, go ahead. stuart: you like ibm, you like the cloud, we got you. you have what you call a good company that is cheap. what is it? >> i think it is very
interesting because big defense tech, a dividend play, everybody who has owned this getting a raise. stuart: and we have amazon trying to give apple and samsung a run for the money bringing their own smartphone. can they afford another device? >> that is the debate on wall street given the balance sheet. 12 billion in cash, equivalent on the balance sheet, $7 billion in debt. not just potential smartphone but also we know about the set-top boxes fire and also helping you to buy groceries. spending a lot of money to get prime tv content. that could be a problem for amazon. stuart: bearing that in mind, are you buying amazon $310 per share? >> i am cautiously buying amazon.
i don't know the device is the because a lot of competition. the real value is to get people tied to the merchandising platform which is what amazon continues to be about. stuart: let's go to twitter. i know it is up today, but i want to know why. nicole: highflying stocks doing well. i know tesla has pulled back a little bit. facebook. 3.3%, the insiders have the opportunity to sell on may 5. the ceo, the cofounder as well as evan williams having the opportunity to sell on may 5 say they are not planning to do so, so that is good news for twitter. stuart: would you buy it at 40? >> no, i wouldn't.
they are 100 million, 200 million users, they are in a like market. i'm going to go for something in a like space currently facebook over twitter, for example. stuart: we hear you one and all. that concludes the halftime report for this monday. barron's editor joins us now. he is beating up 3d systems again. you said they were, what was it, a play-doh factory. when you said that, they were $64 per share. now they are down to 47. you are beating them up again. >> what we notice last week is they have no competition, that is something we warned about earlier, competition can come out of left field for this sort of company. it has come out in the form of the company making the same product as there is for a lot less. stuart: that is competition, isn't it? your stock is post, the cereal
company. make the case. >> people are eating less cereal but moving very wisely into energy snacks and shakes. those kind of snack bars people like so much, run by a ceo who has a long history of making money for shareholders. when you invest with him, you tend to make a lot, the stock has dipped. we think it is a good entry point. stuart: upside this time. you don't like that you move the market, do you? thank you very much for joining us. >> thank you. stuart: take a look at facebook stock right now. we are up about $1 last time i saw. just shy of $60 per share on facebook. by the way, they are getting into finance, facebook. deirdre bolton, in. would you bank with facebook? >> you're going to have to call
your cousins, see if they have access to it before us and let us know how it goes. facebook just won't comment, but a lot of sources out there who say this is coming, so instead of just being able to share your photos, videos, stories, postings, your opinions about any and all, quite possibly boring the relatives, sometimes that is how i feel, will be able to do some transactions. that is what they are expecting facebook users to be able to do especially between the uk and europe. this is a big if, if in fact this product or rather this function becomes lives as expected. the interesting thing here is facebook gets another business, so that is not surprising, but what is more surprising is if this happens, they will get even more information about its users. if you will be using e-money, they will be able to tell what
you are buying at what price, and that information gets sold to advertisers and facebook revenue will go up. stuart: got it. we will see you in nine minutes, i believe. it is that time of year, the days are getting longer, the weather getting warmer, gas is getting more expensive. up $0.06 in the past week. is your state a member of the $4 per gallon club? he will tell you in a moment. weekdays are for rising to the challenge.
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stuart: the average price of a gallon of regular nationwide is now $3.64. it has gone up 23 days in a row. lauren simonetti, more on this, please. >> you get a retail sales report this morning in march we were spending money, and then you see gas prices like $4.30 in los angeles, chicago, the list goes on. this can hurt the economy as temperatures get hotter outside, the peak summer driving season comes upon us, these numbers are probably going to go up a little bit more to fill up the gas tank. a tax hike for so many people out there, this could hurt us. stuart: i want everybody to check the price of t-mobile,
doing away with charging penalties if you go over your data limit. encouraging other. carriers to do the same. they will slow your speed down, that is how they are doing it. more next. why relocating manufacturingpany to upstate new york? i tell people it's for the climate. the conditions in new york state are great for business. new york is ranked #2 in the nation for new private sector job creation.
stuart: i did not see you in the forbes billionaire list. are you going to get there soon? >> i do not know. i do not care about any of it. i care about my blessings for them money. i am not oprah winfrey yet. [laughter] stuart: she was great and she is right. next is deidre bolton. >> welcome to risk and reward. thank you for joining me.
we give you more ways to invest your money. our top story is facebook. sources say getting close to and approval for in e-money service in the uk. you may soon be able to share more than just photos and videos and stories. we show you more ways to make money and better ways to keep it. ♪ >> amazon may release a 3d smartphone later this year. one that can be used without special glasses. our guest says amazon will succeed where others have failed because of the ecosystem, because of pri