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tv   Varney Company  FOX Business  April 17, 2019 9:00am-12:00pm EDT

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way. >> the trading in the secondary market for lyft has been abysmal. the stock is below $60 a share. went public at $72. it's been a disaster. maria: is that going to be a negative? >> two ipos tomorrow, pinterest, which will probably be lower than its last private round. zoom could be $10 billion, a $1 billion from its last private round. maria: great show, everybody. we will see you tomorrow. "varney & company" begins now. stuart, over to you. stuart: good morning, maria. good morning, everyone. president trump going after bernie sanders again. the socialist millionaire is the democrats' front-runner and the president evidently relishes the fight. quote, tweet, bernie sanders and wife should pay the pre-trump taxes on their almost $600,000 in income. he's always complaining about these big tax cuts, except when it benefits him. they made a fortune off trump but so did everyone else and that's a good thing, not a bad thing, end quote. mr. trump. all right. let's get straight to your
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money, shall we? a good opening to the show, i'd say. global rebound, question mark. well, maybe. china reporting strong growth in the first three months of the year, 6.4%. that's strong. $2 trillion worth of tax cuts, more credit for small business, and the likelihood of a trade deal all combining for what looks like a china recovery. the market likes it. are we going to see a gain? it's a small gain at the opening bell, up maybe 50 odd points. but we're still just a couple hundred points away from the all-time high on the dow. earnings reports out this morning already, also coming in strong. that always helps. stock of the day, my opinion, and stock of the week, qualcomm. they settled all lawsuits with apple, very much to their advantage. apple pays them an unspecified amount and apple will use their chips in some products in the future. qualcomm, up 20% yesterday, and up another 11% this morning, premarket, that is. so a gain of, what, 31% for a
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company this size? in two days? that makes it the stock of the week so far. a bold pledge from the president of france, we will rebuild notre dame in five years, says president macron. wealthy french families have pledged the best part of $1 billion toward the rebuilding effort. we are about to begin. let me tell you, wait until you hear what aoc has got to say about immigration. yeah. "varney & company" is about to begin. [ inaudible ] call to action which i support. [ inaudible ]. stuart: if you didn't quite
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catch that, abolish i.c.e., they're guilty of human rights violations. she went right after i.c.e. she wants to get rid of them, meanwhile, the crisis on the border continues. thousands more migrants are headed this way. liz peek with us this morning. i can't believe that even the extreme left of the democrat party goes to the extreme of trying to abolish i.c.e. in an election -- >> it's just another talking point. it has nothing to do with the crisis at the border which don't forget, for months, they denied. they denied there was a crisis at the border. now even the "new york times" has talked about our border situation being at the breaking point and you know what? it is. we have now a backlog of 800,000 people waiting for asylum hearings, 100,000 people are coming across the border every day. if aoc and her colleagues in the democratic party are worried about human rights violations, the human rights violation is not solving this problem at the border. there is rampant infection in some of these facilities which are holding these people.
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all these kids are subject to terrible conditions while they're waiting and then, i mean, of course the most ironic thing that's happening is president trump has talked about taking some of these people to sanctuary cities and those people more or less are in horror that they might actually have to deal with this surge of people who are in the country illegally. this is ridiculous, stuart. the good news is the american people know it, to the extent they actually see the pictures which by the way, they probably only see on fox news, i think people are horrified. stuart: we are. >> yeah. stuart: stay right there, liz. i've lot more for you. don't go away. let's turn to your money. i will focus on china, because that is the focus of the market this morning. annualized growth, economic growth in china, 6.4%. that's strong. michael o'keefe is with us from steeple financial. is china leading the worldwide rebound? >> china is very strong. i find it interesting when you say that they're recovering. they're not recovering. they're just slowing down a
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little slower, meaning that their growth is very strong. stuart: they have a terrible -- not terrible, but they had a real slowdown at the end of last year. >> but if you -- stuart: now they are back up again. >> 6% plus, beating consensus, things like industrial production beating, retail sales beating, so again -- but again, against the context of what is already very strong growth. stuart: now, we are going to be up again when the market opens, maybe 50 points on the dow, close to 26,500. is that the china growth rate and/or earnings coming in strong? >> you know, i do think both earnings and china are going to have an influence. what's interesting to me about china, just to stay with that for a minute, we are looking at a trade deal, we think it's going to happen, we saw sort of exports, imports, net exports come in positive today, little signals that china is stepping up and basically buying some of our products and services, but to me, the real story is longer
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term. they have a long-term strategy to just continue to grow their economy and become more dominant on the world stage. i think what we'll do in turn is wake up and look to compete with them even more. stuart: i'm going to go out on a limb later in the program and say although it's 20 months away to the election, i think trump wins. i think he wins on the strength of the economy and i suggest that there will be no recession before at the election. that's very important for mr. trump. will there be a recession before the election? >> we don't think so. again, we are tracking lots of data. when you look again at employment and you look at all kinds of other pieces of data, sometimes things turn down a little bit but against strength. the one thing we will watch for is inflation. so with wage growth up, you know, normally what happens is inflation kicks up a little bit and it gets to a point where the fed has to act. that hasn't been happening. there's no indication that it will happen. but it's something we're watching. stuart: at this moment, the stock market wants to go up.
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>> yes. stuart: it does. all right, sir. michael o'keefe, thank you for joining us. i want to get back to president trump. he's taking aim directly at socialist rival, maybe, bernie sanders. he's focusing on taxes. can we put that trump tweet up again, please, so our audience can see it while i talk to liz. i think it's right to go after bernie sanders. he's on solid ground. >> what we know is bernie sanders didn't pay a great deal in taxes last year, mainly thanks to president trump's and the gop tax cuts. so president trump is sort of saying wait a minute, if you really think taxes should be higher, why don't you just write a check. of course, other people have said that, too. look, the main thing here is bernie sanders has been very successful, he's written two or three books, made a million books, and guess what? i think that's great. he should be grateful to this system that he lives in, he's part of the capitalist system that he denounces at every turn for creating millionaires and billionaires who of course are rigging the system. it is a little ironic. the truth is, bernie sanders is
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paying taxes as he should, along the way that the tax code is written now. if he wants to change it, he's had a gazillion years in the senate to advocate for changes. why hasn't he. you know what? i mean, i think it's a ridiculous kind of tit for tat, frankly, but i'm thrilled that bernie sanders is making lots of money and it's good for america. stuart: i'm told the democrats are very worried that bernie sanders will be the candidate, and they've got all kinds of secret meetings to keep him out again. >> he is definitely the front-runner except for the undeclared joe biden. he's raised much more money than anybody else. he has an enormous network. i think the thing that they're worried about is he's going to do very well in iowa and new hampshire, we know that, probably winning both of those states. if california is now part of super tuesday, the next, you know, it could be over in a matter of a few weeks and the california thing is particularly interesting because that of course is kamala harris's backyard, beto o'rourke should be doing very well there.
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with the money he's raised, bernie can put in place a big operation in california. he could win. no one believes it. that's the amazing thing. stuart: all in agreement on this one? i see vigorous nodding. ashley: oh, yes. stuart: all right. let's get to morgan stanley. better profit this morning, big bank earnings out before the market opened. they are up nearly 2%. that helps. pepsi reports higher demand for snacks and low sugar soda. look at it go. 2% higher on pepsi. however, ibm came in with their third consecutive quarter of declining revenue and the stock is down 3.5% this morning. that's ibm for you. netflix, they lowered their forecast for subscriber growth, i think in the united states, but the stock is up this morning. susan: it plunged 9% after hours so you know a lot of volatility at play. netflix is probably a victim of their own success, when you have
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gotten as big as netflix, people want more. they are still looking at record subscriber growth for this year, for the first quarter, they beat expectations, most of that international. so there's a saturation in the u.s. domestic market. for the second quarter, they are still forecasting to add around five million subscribers. there is churn because of higher subscription fees, they raised the price to $13, you want to watch on multi screens. also, the coming summer months so people maybe not subscribing to netflix as much as well. still, the stock is up 30% on the year, bit of volatility after hours but can't stop -- stuart: that's a turn-around. it was down, now it's up $9. susan: there is also a lot of competition. disney is launching $6.99 and apple, which isn't apple being smart, they will wait until everybody prices their model and streaming service until they come up with their dollar plan. stuart: who is the $6.99 a
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month? susan: disney. stuart: that's right. 13 bucks for netflix. ashley: correct. stuart: guess where i'm going? to futures, please. we will be up not that much at the opening bell, maybe 40 points up for the dow, but a nice strong gain for the nasdaq. looks like tech is doing well, up 45 points there. you might call these negative headlines for apple, at least one negative headline. its flagship store in new york city reportedly crawling with bedbugs. ashley: that's a negative headline. stuart: that's a negative headline. stock's not going to be affected. the redacted mueller report comes out tomorrow, likely during our show. the mainstream media already working overtime to spin the findings. media watcher brent bozell on that one this morning. lyft stock hammered since going public last month. up next, we have a guest who says the stock is even more room to fall. $56 this morning.
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stuart: we have been looking at lyft stock every day since the ipo about two, three weeks ago. it opened at $72 -- started at $72, i should say. keeps on going down. $56 this morning. joining us the author of the book "the hidden dna of apple, amazon, facebook and google." he's scott galloway. you think lyft has a ways to go down. why? >> i think lyft will hit another all-time low today but today will be its all-time high moving forward. i don't think it will ever see this number again. this is a company that achieved a record in the history of ipos, that is lost more money in the 12 months previous to its ipo of any company that was able to go public. it lost $900 million in the 12 months leading up to the ipo. in the prospectus, and i search
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for words, you know what term they use 12 times? network effects. but here's the thing. there are no network effects with ride hailing. you and i could start a ride hailing company here in new york and manage to lose negative 40% even to margins. there is nothing sustainable about this company other than the consensual hallucination that ride hailing is anything but a horrible business. look out below. stuart: whoa! how about uber? uber is coming up. are they a different kettle of fish entirely? >> uber does have a flywheel effect and that is its platform is so big and so powerful it's been able to go into adjacent businesses. uber eats, where they bring you your food, has much higher margins and is actually a profitable business. in addition, it's a global brand. it's dominant. a lot of us, the first and last brand we interact with when we get off a plane in another country is uber. unbelievable brand. the leader in the space,
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opportunities to have a platform where you spin off other businesses. is it worth the valuation of boeing? probably not. but it is -- there is a business there. lyft, lyft literally could be the pets.com of this generation. stuart: your big point has always been going after the amazon, facebook, googles of this world. i just want you to listen to what jerry nadler had to say, house judiciary chair, on this subject. roll that tape, please. >> i think we are going to have to do something to increase [ inaudible ] big companies, whether breaking them up or something, i'm not sure yet. but yes, the current fact that you've got three major companies and no one can compete with them, really, and anyone who tries to will get bought, is not a good model. it stifles innovation. stuart: do you see any regulation on the horizon which is likely to be imposed that will significantly change the business model of facebook, google or amazon?
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>> we talk about this. i think it will take awhile but you will see, for the first time, i believe doj or ftc action perhaps supported by attorney generals in states, maybe even red states, that file antitrust action against -- stuart: antitrust is the methodology of going after them? >> i believe so. i think antitrust has gone back and forth. right now, the last 30 years it's mostly based on bourke. they claim if it's free how can there be consumer harm. the consumer is the advertiser and the advertiser doesn't have many choices here. to representative nadler's comments, small great companies are being prematurely euthanized in the crib and when they can't kill them, they buy them. probably the greatest failure in antitrust in history was the approval of facebook's acquisition of instagram. it should have never happened. stuart: if and when they launch an antitrust investigation or charge, it takes years and years and years. however, just the launching of an antitrust investigation clobbers the company. >> okay. but on the whole, you want to keep this party going, you want to see those numbers on that
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screen go up, break up these guys. the fastest growing parts of our economy have no startups right now. let's you and i try to start a search company, try to start a social company, try to start an e-commerce company. you can't. in the short term these companies are losers. in the long term, just with every antitrust action, ten years down the company is broken up and more valuable than the original company and we are going to see a torrent of venture capital activity, m & a, new job growth. you want to oxygenate the economy, keep those numbers ahead of grain, break these companies up. best thing for the economy, best thing for the middle class. we need you on this. come to the light. stuart: whoa! ashley: go to the light. stuart: you're good, you know? >> i could do this for a living. stuart: scott, thank you very much. >> good to see you. stuart: professor, you're all right. all right. take a look at futures. here's how we open this morning, 50 or 60 bucks higher but nice gain for the nasdaq, look at
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that. two-thirst two-thirds of 1% on the upside. felicity huffman could be in jail for her role in the college admissions scandal. wait until you hear how much time prosecutors want her to spend in prison. [ sigh ] not gonna happen. that's it. i'm calling kohler about their walk-in bath. my name is ken. how may i help you?
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comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems.
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to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. stuart: ah, the college
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admissions scandal. prosecutors recommending jail time for actor felicity huffman. how much jail time? susan: four to ten months because she pled out on this guilty plea in operation varsity blues. she had probably one of the lowest spends in this bribery case at $15,000. so she pled out. we have four to ten months. in fact, her lawyers could even negotiate that down to just a few months, maybe she will get a few weeks but it looks like jail time might be on the cards. compared to lori loughlin which she has basically a money laundering charge, 20 to 40 years, four years and nine months even if you plead out. stuart: next case. unwanted visitors at the glass cube, that's the apple store on new york's fifth avenue. who? ashley: this is a real head-scratcher. talking about bedbugs. okay, this is a story we normally associate with hotels, hence the name bedbugs, but this is in the apple store, the iconic one on fifth avenue. apparently employees have been complaining for weeks that there
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were bedbugs around. one took a video of it and posted it on social media crawling on their sweater. eventually management supporting a, believe it or not, bedbug sniffing beagle. they finally said yes, we have a problem. they have had exterminators in but one table upstairs was apparently a central point for bedbugs. susan: eww. ashley: no impact on the stock but it's kind of weird. makes your skin crawl. stuart: by the way, we have crept up. the futures have crept up in the last few minutes. now we are looking at a gain on the market of nearly 70 points, and 51 points for the nasdaq. looks like a rally at the opening bell. we will take you there. just a couple minutes.
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stuart: you're looking at the state department where secretary of state pompeo is getting ready to speak. ashley: he's going to be talking about cuba, putting pressure on cuba, and the trump administration is going to declare, we understand, for the first time lawsuits can be filed in the united states against all foreign companies in cuba using properties confiscated from american citizens in the 1960s led by cuba's government at the time, fidel castro. this is a big development. stuart: a squeeze on venezuela. ashley: a big squeeze on venezuela. john bolton will be speaking
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later today in miami. he will talk about cuba, too, as a way to get to maduro by putting the squeeze on cuba. stuart: almost 9:30 and right there, mike pompeo takes to the podium. right-hand side of your screen. there you have it. they are clapping, they are cheering. trading is about to begin. it is wednesday morning. the dow, i predict, confidently, will go up a couple points at the opening bell. there you go. we're off. we will take it. the dow has opened with a very slight gain. now we're up 40, 45, 43. okay. leave it at that. a small gain for the dow industrials in the early going. check the s&p. same story there. yes, pretty much so. a third of 1%. now look at the nasdaq. i'm expecting a better gain and we got it. 45 points higher, well above 8,000. that is a gain of a half percentage point. we are going to be checking those tech stocks this morning. joining us, joel shulman, jack hough, susan li and ashley webster. i will start with qualcomm. i call it the stock of the week, because it's gone straight up. they've got a deal with apple.
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apple gives them a lot of money. apple uses their chips in the future. joel, this is a big deal. this stock has gone up 31%. >> $80 billion company going up 31% in two days, that's a big jump. stuart: two days. 33%. extraordinary. >> yeah, they certainly had a big win there, prices are going up. they settled with aupple. huge deal. susan: the stock went down 22% when they engaged in legal battles around the world. this is about survival for them. it's about getting money back for their licenses and patents. apple and the rest of the compilers stopped paying royalties two years ago. they were engaged in this -- stuart: apple gave them a new lease on life. susan: pretty much. >> intel also just bailed out of this business, as soon as apple and qualcomm got back together. susan: just because they have inferior technology, they are a year behind when it comes to 5g chips. stuart: they went all the way to the day of the trial that begins before they finally say all
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right, you get royalty money, let's move on. stuart: wait a minute, wait a minute, why is intel up if their technology is years behind? susan: because they are bailing out of spending any more on developing 5g chips. the thinking was, the reason why they even had this lawsuit is apple is going to use intel instead of qualcomm even though intel is behind. the settlement actually helps both because you have newer technology in apple smartphones and qualcomm gets a lease on life. stuart: okay. what else have we got for you? i believe we have some earnings reports out this morning. let's go with netflix to start with. when they announced their earnings late yesterday, the stock went down significantly. now when the market opens this morning, it's gone back up six bucks, 1.7%. why the rebound, jack? >> there's really no competition out there for netflix. i say that knowing that there are hundreds of streaming services out there. disney is coming. but disney is not a netflix competitor. there are two options with this kind of scale. there's your cable bundle and netflix.
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look at your cable bundle. it looks terrible. the software looks like it's made by amtrak compared with what's going on on netflix. so netflix still has a tremendous advantage of two main broad sources available to viewers today. stuart: i made my entire career -- >> i'm talking about the service providers. susan: i'm going to disagree. 60 to 90 million users, that's what disney is forecasting for subscribers over the next five years. by the way, people like disney, like cbs, like at & t that owns warner. they will take their material off of netflix or charge more for it so netflix will have to, a, spend more or find new material and original content to put on. stuart: someone has been doing their homework, have they not? susan: at least one of us has, yes. stuart: okay. ibm, revenue fell short, i believe it's the third consecutive quarter where revenue was struggling, to say the least. their mainframe computer business not doing very well. it's old tech. you wouldn't touch it with a
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ten-foot pole. >> 20-foot pole. stay far away from this thing. it's a bureaucratic company. they are out of technology. we generally see it with younger companies like the netflixes of the world that have considerable organic growth. stuart: has -- susan: ramedi. ashley: there are questions being asked, all this money going into artificial intelligence and cloud computing, it's a bit like turning ibm is like turning an oil tanker around. it's taking a long time to do it. susan: that's what i wanted to ask joel. do you think she will be around? she's only overseen a few quarters of revenue growth under her tenure. >> generally, corporate ceos for large companies are three to five years. so it's like an nfl running back. they are there for a short period of time. ashley: she has been there since 2012. this is about the time of reckoning. stuart: strong stuff this morning. now we have turned the market around. we opened with a gain. now we've got a small loss, down six points at 26,400.
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that's where we are. let's get to morgan stanley. their profit was up, the stock is up a little bit, 40 cents higher. that's about 1% for morgan stanley. pepsico, better demand for their stocks and low sugar sewoda. stock up 1.5%. boeing, the software fix for the 737 max has been okay'ed. how about cvs? have a look at that one. jack hough produced this cover, you can't see it, but it's got cvs all over the front of it. you wrote the article. when it came out, the stock was up 3.5%, right? 3%? why is it down now? >> well, we are bullish on cvs. it's a stock that's trading at eight times earnings. it has a unique set of assets that prepare it for a world where health care prices no longer rise endlessly. they want to deliver more health care through stores. they are testing a new format out in houston where they say they can deliver 80% of the
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services of a primary care doctor at much lower cost with higher convenience. i think it's a potential game changer. stuart: i got a vaccination at a rite-aid just the other day. how about that? not going to tell you what it was for. okay? >> we don't want to know. stuart: i'm not going to tell you. all right. you wouldn't touch cvs? with a 30-foot pole? thank you very much indeed. china's economy growing 6.4% on an annualized basis the first three months of the year. i think that's good for the market. >> it absolutely is. china is up 24% year to date. last year it got hammered and is coming back. ashley: even if you don't believe it, it sounds good. stuart: you don't believe it? >> no. ashley: what's the old joke, divide it by two and then kind of consider it? do you believe the numbers of china? stuart: i have made no comment on the validity of china's numbers. you think it's a good thing for the market? >> i do, and just before the china/u.s. deal. it's going to continue to boost prices overseas and it's going
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to help it a little over here, too. stuart: china is leading a rebound from the slowdown in the last three months of last year? >> absolutely. growth looks better than we thought it looked a few months ago. people say china is slowing, it's only 6% growth. it's a $13 trillion economy. how fast were we growing when this economy was $13 trillion? it's not terrible growth. susan: i think stock markets are looking for justification because there is a global slowdown taking place in china and europe, yet you saw the best quarter since almost the 1990s. i think stock markets are looking for some reason as to why they are priced the way they are, why we have seen market gains so far the first quarter of the year. stuart: one of the problems late last year is the world is slowing down. susan: no, federal reserve interest rate hikes as well. that was probably the main driver of the decline. now the fed is on board, we see small growth elsewhere. that's probably why you are looking at some stock gains. stuart: okay. check the market. now we are down 28 points. we started higher, now we are on the down side. maybe there's one or two dow
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stocks which are really falling sharply this morning. maybe that's the case. i have to check for you. but we're down 23 as we speak. how about amazon. fake five-star reviews reportedly flooding the site. makes no difference to the stock whatsoever. it keeps on going up, $1870 right now. >> it's not going to move the stock but it's not a tiny deal, either. those user reviews are actually a pretty big innovation for amazon that we don't even think about anymore. it's taking away some of the branding power of consumer products. you can go on amazon, just say what do other people say about this product so they really do want to get on top of that. stuart: amazon is your kind of -- >> absolutely. i don't think this is going to move the stock price at all. stuart: you are invested in it? >> absolutely. from the very beginning. stuart: from the very beginning. susan: wow. at $18? >> yeah. susan: wow! in the 1990s. stuart: that beats my return on microsoft by a long way. well done. well done indeed. i'm interested in this one.
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martha stewart's brand has been sold for $140 million less than what it was bought for just in 2015. would anyone like to explain the decline in value in martha stewart's brand? how about you, joel? >> back when she first got into kmart when kmart and sears were viable companies, this is a tired brand. stuart: any other explanation? >> i haven't heard that name in about three years. that's probably one of the reasons why the brand isn't gaining in value. where is the traction on the martha stewart brand? stuart: come on, susan. you have done your homework. susan: she has this great show with snoop dogg now. she's still in the news. if you want to look for home brands, there are other options out there. stuart: so you wouldn't touch martha stewart with a 40-foot pole? susan: i like martha stewart, but. stuart: okay. look, it's that time of day when
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i've got to say thank you to joel, thank you to jack. gentlemen, fine performance today. you, too, susan. good stuff. susan: thank you. stuart: you stay, okay? check the big board. we are down now 34 points, 26,400 is where we are. now this. the prime minister of poland meeting with elon musk this week. he's trying to increase america's investment in poland. our next hour, the prime minister will join us here in the studio. michelle obama getting some flack for her latest comments about president trump. wait until you hear what she said about the state of america under our current president. mainstream media ready to go on the attack ahead of the release of the mueller report. next, we are going to talk to someone who says the liberal media is doing anything it can to keep their collusion delusion alive.
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stuart: all right. we turned south, now we're down about 50 points. why is that? largely it's because of ibm and united health care, both are dow stocks and both are down very sharply. look at ibm, down 5%. united health down another 4% there. that's taking a lot of points off the dow. the mueller report's going to be released tomorrow and as you can imagine, the mainstream media is in a feeding frenzy. roll that tape. >> democrats in congress are on guard after today, because the top lawyer in our land sounded like he was protecting the boss. >> he's acting in bad faith fundamentally. he's acting as an agent of the president. >> it's almost impossible not to see him as a political actor. >> he's looking more partisan. >> barr cherry-picking particular words and phrases. >> this is the guy donald trump chose. there's a reason. >> plenty of reason for democrats to be suspicious.
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>> suspicious, right? >> barr will do trump's dirty work. stuart: isn't that great. brent mozell is with us, media research guy and he compiled that montage. well done. >> it goes on and on. stuart: unbelievable. look, i think they are digging their own grave. they just won't let this thing go. i don't think your mic is on. okay. there you go. >> keep on talking. stuart: live tv. okay. they are digging their own grave. >> they are. they are. look, listen to these people. there's not one scintilla of evidence, let me repeat that, folks, not one scintilla of evidence that the attorney general has done a thing wrong, yet you've got one reporter after another and they are bringing guests on, don't forget that one, they are bringing guests on, all of them to talk
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about corruption. they are both corrupt now. anybody who is within five light-years of this administration is corrupt. they can't get over the fact that mueller vindicated trump. they can't get over it. stuart: what's their future? the media has joined that train and for two years they have been pushing the collusion narrative. there is no conclusion. what are they going to do, try to invent it in some way or just find some dirt of any kind that they can throw at this president? >> i think two points here. one, a comment on what's going to happen tomorrow. what you are going to find is that trump is vindicated because trump was vindicated. there's nothing mueller would have liked more than to get donald trump, i believe, and the fact of the matter, after two years and gazillions of dollars spent, he didn't find anything. this report tomorrow is going to say that. however, it's also going to say donald trump didn't tie his shoe logical la shoelaces one day and for that,
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the media will say we told you he needed to be removed from office. second point, for years and years and years, the media argued that they weren't biased. you notice nobody is arguing that anymore? nobody in the press is pretending to be objective. they are 100% vested in the democratic party. stuart: do you think there will be any media figure who turns around and says frankly, we were wrong and we apologize? will anyone do that? >> do you know, after the mueller report came out, know what the objective report was? president trump has been vindicated for two years, democrats and many in the press believed he was guilty, he is now vindicated, the story's over. that was an objective news story. didn't hear a single person say that. no, you're not going to hear a single person ever, ever acknowledge that donald trump was vindicated, end of story. stuart: will they ever, talking about the media now, let it go? >> oh, no, no. this is going to continue through the election, if trump is re-elected it will be for the
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next four years. they will not stop. you know the next one. the next one is his taxes and after that will be this impeachment, he will be impeached by the congress in order to have a weapon to weaponize an attack on him in the elections, and the media will be at the forefront reporting just the opposite of bill clinton, reporting that here it is, an impeachment and america needs to take this seriously. with bill clinton it was all about moving on. with donald trump, it's going to be come on back. stuart: if they do that, they will look like fools. >> i think they already do. stuart: america will -- >> look at their numbers. why do you think donald trump attacks them all the time? it's just low-hanging fruit. stuart: he goes after that. brent, that was fun. thanks for being with us in new york. >> any time. thank you for having me. stuart: watch our live coverage of the release of the mueller report. we start at 9:00 eastern tomorrow morning. big day. jack dorsey looking to change twitter. change twitter.
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what does he want to do? susan: well, he was asked in vancouver if he had to redo twitter all over again, how would he change it. he said well, look, there are a lot of things he would change. he wants to make it more meaningful, he wants to fight abuse, he says twitter is filled with harassment. instead of following specific individuals, why not follow topics of interest instead. if he had to redesign it in 2019, you know, he probably wouldn't put the number of followers that you have, put a like button. sounds very similar to themes we have been hearing across silicon valley, facebook also, talking about the like buttons and making their site more meaningful and privacy-focused. it's been a 180 turn-around for a lot of social media sites. stuart: you've got $34 a share on twitter as of right now. check the dow 30. that's important, because there are two big losers on the dow. that is ibm and united health. bottom right-hand corner of the screen, ibm, united health, way, way down. both dow stocks.
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they account for the entirety of the dow's 50-point loss and then some. the tax season is over. some people not too happy with their refunds. now, the one percenters, those who live in high tax states, are likely to be extremely disappointed. told you. coming up at 11:00, we will talk to someone who's got the hard numbers on how big their tax hit was this year. speaking of taxes, new york passed a budget that included more tax increases. next, we will talk to the head of the state's republican party. does he have any prayer of ever lowering taxes in new york state? in my opinion, not a prayer. but we will ask him. oh, that's great sarah. let's talk about this when we meet next week. how did edward jones come to manage a trillion dollars in assets under care?
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stuart: tax-happy blue states, desperately need revenue and now new york state, their budget recently passed includes more tax increases. ed cox is with us, chair of the new york state republican party. now, ed, i know what you're going to say. new york state needs to lower taxes, we've got to get the economy back working again. but you know as well as i do, new york state will never, ever lower any tax. >> the democrats control albany. what do they do? they raise taxes. you get in your car, it's going to get taxed.
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congestion pricing, just another commuter tax. stuart: do you think donald trump in 2020 will win new york state? >> yes. he can. it's going to be a great economy, from economists i talk to, in 2020. '84 was the last time we won new york. it could be another 1984. stuart: wait a second. 1984, that was 30 odd years ago. >> 30 odd years ago. stuart: that was the last time a republican presidential candidate won new york state? >> that's right. that's right. stuart: ronald reagan. >> that's right. stuart: second term. >> that's right. stuart: why do you think he's got such a good shot at winning in 2020? >> because first of all, it's the economy, stupid. i think we will have a booming economy in 2020, at least that's what i learned from the economists who i follow. stuart: okay. is the upstate economy, that's where the trump voters are, not new york city. it's not long island. it's not westchester county. >> they are going to be very unhappy here and that's going to be at mayor cuomo. it's a double whammy, voting against cuomo, whose job approval is now in the low 30s. it's not coming up. stuart: low 30s?
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>> yes. stuart: governor cuomo? >> yes. stuart: i didn't know that. that's interesting. >> that's kind of hidden in the polls. you take a look, that's where it is. most recent poll. stuart: in new york city, mayor de blasio, when told about president trump's plan to send illegals to this sanctuary city, he said oh -- >> no, no, before he was saying we love illegals, bring them all here. now he doesn't want them. what a hypocrite. stuart: what do you make of that? will he be able to force them out? what's the public's reaction to that? >> here in new york, the public, in new york city, eh. no reaction, really. but generally, just shows you, remember, he's on the national stage now. he wants to be president of the united states. it's not going to fly. stuart: okay. you think that the democrat candidate, no matter who it is, will win hands down new york city, long island, westchester county? >> not the suburbs. not the suburbs.
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new york city. no, the suburbs are swing areas, and given what's happening with the new taxes, with the commuter tax, they forgot ten years ago in the -- because of what they did in 2009, the commuter tax, we won back the state senate in 2010. the congestion pricing is just another commuter tax. they forgot in albany. they are making the same mistake they made ten years ago. stuart: fascinating. ed cox, let's see if you're right. come back in 2021. come back before then. thank you, ed. appreciate it. thank you very much. students and alumni at a christian college, outraged that vice president pence will be the commencement speaker. they say his policies are not consistent with theirs. we will surely tackle that one. chicago prosecutor kim foxx called disgraced actor jussie smollett a washed-up celebrity and that he had been charged with too many crimes. now, that's the prosecutor who
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is supposed to have recused herself. the mueller report released tomorrow morning. expect the democrats to cry coverup. we'll have my take on that coming up for you, next. i didn't really know anything about my family history. went to ancestry, i put in the names of my grandparents first. i got a leaf right away. a leaf is a hint that is connected to each person in your family tree. i learned that my ten times great grandmother is george washington's aunt. within a few days i went from knowing almost nothing to holy crow, i'm related to george washington. this is my cousin george. discover your story. start searching for free now at ancestry.com
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stuart: are you ready for the firestorm. it is about to break. the mueller report will be released tomorrow. i should say the redacted, that is partially blacked out mueller report is released tomorrow. now the reaction from the left is entirely predictable. first, they will object to the redactions. they will shout, coverup. then they will pick through the details searching desperately for the slightest hint of bad behavior or bad language. then they will say, questions remain. they won't accept no collusion. they have invested two years in mueller as their savior from trump. they can't let it go. this is actually a crisis for the democrats. for two years their leading lights have suggested that our president was an agent of
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russia. that put tin helped put him in the white house. that argument has collapsed. what is their main anti-trump argument now? well they will have a hard time with trump's highly successful policy they will have a hard time arguing that trump created the border crisis. they will have a very hard time arguing against his america first foreign policy that has realigned the world in our favor. here is their even bigger problem. representative devin nunez and senator lindsey graham want to know exactly what the fbi, and the doj and hillary clinton was up to in the 2016 election. they have the clout to find out. what about the spying on the trump campaign? who authorized that that? did president obama know about it? oh, the tables are about to turn from russia, russia, russia, to perhaps hillary, comey, struck and mccabe. there is some explaining to be done here and it will be the left that has to do it. so this time tomorrow, watch for
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apoplectic democrats desperately searching for something, anything they can salvage from mueller. this time next month, watch for apoplectic democrats, anything which to defend littlery -- hillary and barack. the second hour of "varney & company" is about to begin. ♪ >> you know it is not in the report, collusion, no criminal conspiracy, no indictment coming. it has to be a little bit disappointing for those who wasted 22 months, 25 million plus looking for it. i'm sure people will cherry-pick, try to find something. if you can't indict maybe you try to embarass, harass. that will never equal collusion, that will never equal indictment, or conspiracy. >> is there anything considering embarrassing to the president, people might try to embarass or harass him. will there be embarrassing
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information in there. >> i'm sure it will be played that way. you have to salvage something out of charade. it is easier doing that than covering policy. stuart: kellyanne conway talking about what she call as charade and expected reaction to the mueller report. as we said due out tomorrow morning. come on in charles hurt, with us now, "washington times" opinion editor. what are you expecting from the democrats tomorrow? >> oh i think there will be a lot of parsing of this. they will do everything they can to complain about the redactions and to claim that there was some sort of obstruction of justice even though the obstruction of justice, even if, you know, you can make such a claim it is obstructing justice to what end? at the end of the day the bottom line is, if you know, there was -- collusion was not found, there are no charges against the president, and therefore, you know, obviously the president will talk about a full
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exoneration. the problem for democrats though is, that they have lost a lot of credibility over the past two years and i think they have run this chicken little game to its very end. stuart: i think, what i think they're going to try to center on is some kind of embarrassing material. bad language, for example or the president said this, did that, which doesn't quite meet their expectations of presidential behavior. i think they will look for that, and make a big deal out of it. what do you say? >> i think you're probably right but the problem with that is, that they have been talking about how president trump isn't presidential for even longer than they have been talking about russia collusion. it just doesn't stick. it doesn't matter to people. and i think you're right. as long as the economy is humming along, people are going to give the president the benefit of the doubt. at the end of the day the fact remains there was no indictment here. the entire russia collusion
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kinard turned out to be a complete fantasy. as long as, as long as that's the top line i think the president is in pretty good -- you know will love talking about this, if no other reason the other thing you mentioned it allows him to talk about how this whole thing got started in the first place and it got started because democrats shouldn't have, feel like they shouldn't have lost the race. still can't comprehend how they lost it. so they launched this investigation. and that, to me, that is always been the most alarming part of all of this. stuart: do you sense, as i do, a shifting of the tide, a turning of the tables? really was for two years, however long it was, russia, russia, russia. that was everything. now i suspect it is as you say, it's turning towards what did barack and hillary, strzok comey and mccabe, what did they do? how did this get started in? if that get to the bottom of that that might be incredibly
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embarrassing for the democrats. >> incredibly embarrassing and potentially criminal. the reason i got into the news business to hold powerful officials accountable for, for going outside, for excessive use of power. the idea that a sitting president's administration would have launched a huge spying operation into political opponents at the height of a presidential election from day one, you know, the russia collusion thing, i was willing to hear them out, and hear the case for that. but at, no matter what, the most alarming think about this is the idea that doj would have launched a spying operation into political opponents at the height of a presidential campaign. that is, that is blockbuster. that is, it is worse than watergate. that is on par with the pentagon papers. that is a huge scandal. like you hear not a word of that
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in "the new york times" or "washington post." stuart: just fascinating isn't it? terribles are turning. charles hurt, always a pleasure. thank you for joining us. see you soon. we don't know exactly the mueller report will be released. it is sometime tomorrow morning. we're ready. live coverage begins on "varney" 9:00 a.m. eastern sharp. check the big board. we're down 30 points. the let's of the market is up by the way. couple dow stocks, ibm, united health, they are truly hurting the dow, taking much more than 30 points off the dow, 100 or 80. ibm is down. united health is down for second day in a row. big losses on those two stocks really hurt the dow. how about qualcomm? it and apple agreed to dismiss all patent disputes between them. qualcomm getting money from apple, their chips, qualcomm chips used by apple in the future.
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look at them go. qualcomm up 20%. up another 12%. qualcomm, i'm calling it the stock of the week. netflix reported slower growth of subscribers that is in the second quarter. they were down when that report came out. bounced up at the opening of the market today and they're now down 1 1/2%. five dollars for lower for netflix at 353. mark douglas with us, steel house ceo. a frequent guest on the program. lots to talk about with netflix. that's his subject. mark, you say the netflix will become the biggest media company i guess in the world in all time? make your case. don't they have a challenge from disney? >> well, look, the score right now in subscribers is, let's remind everyone, 147 million to zero. so they are already the biggest but disney, announcing 6.9 the pricing last week just took the wind out of netflix sales. it is reflected in the stock
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price. netflix is now just viewed in the context of disney going forward. so it is a big change for them. stuart: well, would you, could you, i characterize it like this. netflix has quantity, disney has quality, would you characterize the two like that? >> i think disney has family quality and, netflix has a different type of quality. they obviously do have the quantity. just this morning i was reading just a minute ago that netflix released a beyonce documentary. beyonce released a few hours ago a new album to coincide with that documentary. you're just not getting that on disney. families with wind up with both offerings at different price points. disney at 6.99, that includes ads, includes commercials. netflix is ad-free. there are two different offerings that will coexist in the market.
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not as much compete with each other. stuart: there is room for both. there is not a competition between the two. are you still convinced netflix surges ahead more in the future? >> i think the stock growth will continue to happen. they will continue to add subscribers but you know the interesting thing i'm hearing about disney? i know some people who run hedge funds and things like that, moving forward the common view is becoming disney is valued based on subscriber growth. so 233 billion now, and then by the time they add 90 million subscribers, they essentially are doubled in value. so its almost like they're going to take netflix market cap, stack it on top of disney's market cap, become worth almost $500 billion. stuart: whoa. >> that is kind of what i'm hearing from hedge funds, people placing bets on this. stuart: in this case disney is winner here as well as perhaps netflix, but disney is the supercharged winner. >> yeah. stuart: yeah? >> exactly. those are basically the two
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leaders, everyone including apple are fating for scraps at the table after that. stuart: apple fighting for scraps. now there's a statement. mark, thank you very much for joining us, as always, see you again soon. now this, vice president pence invited to speak at the commencement speaker at a christian university. the students are in revolt. they don't want him. we'll have the story for you. we also have this. the prime minister of poland will be with us here on the set in new york. he has been called the trump of eastern europe. he is trying to make a deal with elon musk. he is on the show. he is next by the way. the mayor of yuma, arizona, declaring a state of the emergency because of the migrant crisis. we'll take you live to the border to speak ahead of the border patrol union. that is in our next hour.
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stuart: we're still looking at a 40 point loss for the dow industrials but i'll tell you now two stocks in the dow account for that entire drop in the dow, ibm, unitedhealth, both on the downside. were it not for those two socks the dow would be in positive territory. ashley: 120 points at one point. stuart: we got that. good deal. morgan stanley coming in with better profit that is a dow stock and that is up 1.6%. mixed bag for the dow stocks this morning. our next guest says he recently spoke with tesla's elon musk about doing business in his country. joining us now is the prime minister of poland. mateusz morawiecki. i hope i got that right. will you give me that? welcome to the program. >> thank you. stuart: honor to have you with us. that's a fact.
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>> thank you. stuart: you spoke with elon musk, you wan him to invest in poland, build a factory this, what tax breaks are you offering with him? he has done well with tax breaks in america? >> we have good environment for business in poland. we recently upgraded to developed economy and at the same time many features of our economy are still like in developing economies like very vibrant shumper type labor force. stuart: you're offering him an economy primed for that kind of -- >> yes. stuart: are you offering more on top of that, tax breaks? are you giving him a tax holiday, for example? >> first of all within the european union we have quite a harmonized policy what we can offer to investors, but on top of this we can offer a little bit more. why we're so successful eliminating unemployment in the poland over the last four years.
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stuart: what extra, over and above what the eu will allow? what extra are you offering to him? >> offering money to retrain people, to employ people, some tax relief in terms of property tax and also we're offering very good environment. we have invested a lot in electric mobility, electric cars, clean buses, clean trains, artificial intelligence. this is all what such an industry needs. this is why lots of investors from all over the world like -- are very much interested in electric mobility. stuart: what you're talking about is largely manufacturing companies going to poland. >> software development. we're becoming a silicon valley of the european union. stuart: are you? >> recent world cup in group programing in top six there were two polish universities. stuart: really? >> yeah. ahead of many american
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universities. stuart: we always thought the hungarians next door were the greatest software programmers in europe. >> they envy us. stuart: they envy you? >> absolutely. stuart: a top hungarian diplomat, that he, hungary, very confident, very happen with president trump and his demand europe spend a lot more on defense. he said that. are you comfortable with that statement? do you want -- >> we are more than comfortable because we are one of the very few countries of nato which already spent 2%, percentage points of gdp on military equipment. stuart: germans won't. the germans will not spent money. >> germans spent 1 to .23. by the way they want to buy russian gas and paying for russian gas is like paying for mr. putin's weapons. stuart: you're very much at odds with the germans. >> we are very much at odds with
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regard to in terms of trade, our trade with germany is very, we have lots of joint ventures. stuart: you want to buy our natural gas, don't you? >> we have started, we have started to have some long term agreements, 20 years plus, agreements with american companies on lng gas. we have built very big terminal in -- difficult to pronounce this. stuart: wait a second. >> we are importing american gas through this terminal. stuart: the russians are not going to be happy with that. >> they're not going to be happy. stuart: are the germans happy with that? >> germans should be happy with this but, they are building this north sea, 55 billion cubic meters of capacity of importing gas from russia. we don't like it. we, we are emphasizing that buying gas from mr. putin is paying for his weapons. so they should contribute more
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to nato as a whole and they should not be buying so much gas from russia. stuart: last one, some people have said that you are the trump of eastern europe or one of the trumps of eastern europe. are you comfortable with that? >> i don't think i -- there is such a notion is appropriate but on the other hand i value a lot that somebody is actually doing what he believes in, like president trump and this is not only in the context of nato and compensatetures on military which we spoke about, but also for instance the trade deficits, trade surpluses with china. the jobs around us. so i think we have a very good -- stuart: mr. prime minister, real pleasure. thank you so much for coming on our program today. >> thank you. stuart: all right. change of subject, president trump says it will come down to bernie sanders and joe biden on the democrats side. i say that the economy, that and
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the, his opponents, the economy, i think that's good news for the president. i will deploy more on that in the top of the hour, my take. michelle obama taking what some are calling a cheap shot at president trump, may have insulted a group of people in the process. we'll tell you what she said. whatever happened to they go low, we go high? hi i'm joan lunden.
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stuart: let me remind you of something that michelle obama said during the 2016 campaign. do you remember this? >> our motto is, when they go low we go high. we go high, when they go low. stuart: fast forward to her appearance at an event with stephen colbert this week. now listen to this. >> we come from a broken family
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where teenagers, we're a little unsettled and you know, you know, having good parents is you know, is tough. sometimes you spend weekend with divorced dads. that feels like it is fun, but then you get sick. that is what america is going through, we're living with a divorced dad. stuart: if you didn't hear that correctly it, was michelle obama said having trump as president is a bit like visiting your divorced dad. your divorced dads are usually grumpy. ashley: children visiting -- stuart: not a very nice thing to say. charles hurt is back with us. you know, charles, that sounds to me like a dig at divorced dads. what say you? >> it certainly, to compare anybody to donald trump in eyes of michelle obama would be worst insult you could possibly level. what this really reveals, it reveals how lost, i think in particular the obamas are, michelle obama is. they don't know what to make of donald trump. they don't understand
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donald trump. what that tells me is, they don't understand donald trump's supporters and his voters. and of course it is exactly because people like president obama and michelle obama, who had, who ignored those people and did not understand those people, it, why donald trump got elected. stuart: i think you're right. i wonder if she will run? i don't know. don't answer the question. charles hurt, thank you very much. see you soon, promise. remember the robot news anchor, remember him? ashley: yes. stuart: we showed you on this program a couple months ago. delivers the news clearly, accurately. here is the question, are robots coming for our really well-paid jobs? we have someone who has an answer for that one. massive investment to rebuild noter day. a report that says a video game to help recreate the interior? ashley: yes. stuart: i'm a skeptic. ashley: you know. stuart: moi?
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♪ stuart: we are familiar with this song. sung it many times. that is all you need to know. [laughter]. despite two dow stocks which are really a huge drag on the dow, that is ibm, united health, we're almost going positive. the dow at the moment is only down seven points. the price of crude oil, as of right now, $64 per barrel. we're just getting the latest
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read on how much oil we're using in america, how much we've got in storage. give me the number. ashley: using more than we expected a build of 1.7 million barrels of oil, but down, the stocks are down by 1.4 million. that should push pressure upwards on oil. that, demand is going up. stuart: along with the rebound in china's economy, another positive, on upside. we have 64 bucks a barrel on oil as we speak. let's check lyft, the ride-hailing company that went public a couple weeks ago at 72. this morning it is down to 56. there you have it. tomorrow, two more tech companies to public. that's pinterest and zoom. susan: lyft having impact on pricing of the ipos, because lyft is down 22% from their offer price. zoom, pinterest, i'm sure uber is paying a lot of interest on this.
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pinterest valuing itself less than it did in the private rounds. valued at 12 billion. going public at 10 billion valuation. that is unusual. stuart: that is because of lyft? susan: because of lyft. you don't want to get punished as you see. zoom, the company is valuing itself in 10 billion in private rounds in 2017. it was worth one billion. the difference with zoom, a lot of people are very interested in this, one of those rare unicorns actually making money. so it is profitable. growing at rates of 100%, doubling revenue. ashley: what a concept. susan: same thing with pinterest. they have high revenue growth. still not making money. stuart: in one line, tell me what zoom does. susan: videoconferencing. you don't have to talk face-to-face. high technology, crystal clear. a lot of people in silicon valley, around the world, corporations use it. we don't have to talk to each other, stu, in the future. ashley: just zoom in.
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stuart: good stuff, thank you. to the federal reserve, a couple of items. reports say the white house is talking about other potential candidates for replacements of herman cain and stephen moore as mr. trump's picks for federal reserve. other candidates are talked about. marc chandler, chief market strategist is with us. does it worry you that the federal reserve would become overtly political if herman cain and stephen moore were on the board? >> we don't want politicians to be talking about monetary policy want them to influence the board by their nominations. stuart: so you don't want politicians on the federal reserve board or political influence on the federal reserve board? >> precisely. the key thing to keep in mind, moore and cain have not been formally appointed yet. of course they have a wide selection of candidates to choose from. i would be critical of some other nominees for the other
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offices not being highly qualified. i think there is time for someone to be on wrong on federal reserve just like other people have been wrong in the past. stuart: you hear demand by the president and stephen moore and some others who are saying look what we need now is a rate cut. we need rate cuts this year. would that be a good thing for the market and the economy. >> i don't think so. i think the economy is growing strongly compared to we had been compared to in the past. with the real interest rates are very low. the economy, either the economy, having economic renaissance or we're not. if, we talked about this other day, goldman sachs saying because of the strength of economy trump would likely get reelected. doesn't sound like we need a 50 basis point cut in rates or beginning of qe all over again. stuart: the president will move heaven and earth to stop any hint of a slowdown before the 2020 election. >> exactly. stuart: cutting rate is what that would be all about. >> i think there will be a rate cut but no time soon.
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stuart: look you've been on the show many times in the past year or so. you've always been positive. you've always been bullish. occasionally you said, wait a second a little bit of caution. where are you now? bullish? >> i'm still bullish i think we make new highs in the s&p 500. that is 2941 from back in last september. the composition how we will get there might be different. but we're still very well bid, despite 20 basis point rise in 10-year yields the stock market is pretty strong. stuart: don't sell whatever stock you got, keep it rolling. >> maintain. stuart: mr. bannockburn, you're mr. chandler. bannockburn is your company. i forget these things. thank you, marc. >> thank you. stuart: back on this show we showed you a robot news anchor, we'll show you him again or it again. roll tape. >> hello, everyone. i'm english artificial intelligence anchor. this is my very first day at the agency. my voice and appearance are
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modeled on a real anchor development of the media industries calls for continuous innovation and deep integration with advanced personalities. stuart: limited personality. susan: i'm offended if that is what they think we do. stuart: i don't know what the ratings are like for a robot. we have robert moran, with brunswick insight. robert is an expert on all things robotic. so. i'm used to the idea that robots could replace as assembly line jobs. >> right. stuart: blue-collar, labor jobs i got that. are there other jobs, like news anchors, for example, somewhere down the road robots could replace? >> the short answer is yes. many jobs are automatable. some jobs will never be automated. stuart: okay. >> there is a famous -- stuart: tell me right now, what jobs could be robotized if you
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want automated. >> robots and algorithms. stuart: tell us. >> telemarketing, tax preparers, people doing mortgage application processing any linear intellectual task requires a rote utilization of process can be algorithmed away. automation is both robots and algorithms. stuart: okay. do you think we'll reach the point, i don't mean to be facetious and silly, do you think we'll reach the point humans on tv or a screen, some sort are replaced by robotic animated -- >> i find it somewhat unlikely. we still have a human economy. the humans will be making purchases. there are some things where people want a high touch element, right? they want consumer service. they want empathy. there are a lot of things robots and algorithms can do well following a rote process. they can't do empathy or
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customer service and. stuart: they are working on that. >> they are. stuart: the empathy, the conversation. >> right. stuart: you almost got that with the amazon alexa thing. >> right. there are two different views. you're focusing on job automation. that is what most of the discussion has been about however there is another view which is task automation. all jobs have multiple tasks layered on top of them. you can automate tasks but not automate the job. that is what folks in london at the royal society have been looking at. and oecd has done a study where only 14% of the jobs can be automatable because you will automate tasks but not the job itself. stuart: i'm listening carefully to what you're saying and as an investor i would look to invest in companies which lead in artificial intelligence. because that is the nitty-gritty of the process you're talking about. >> correct. you want to look at companies that will automate a very specific task and eliminate that
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task. the employee will still have a job but they will become much more powerful because they will be using that automation at their disposal. stuart: are you in a position to tell us if there is a leader in artificial intelligence? could you say the name of that company? are you in a position to say it? >> not at the moment. stuart: you're not. you can or you don't know? okay. come back, tell us what you think. >> that sounds good. stuart: robert moran. thank you, appreciate it. thank you very much. it is the smile. now this, new study found that 23andme, the dna testing kit, not reliable for detecting breast cancer. wait a second, susan. i didn't know that if you took the 23andme thing it told you anybody about -- susan: lots of health questions, that includes parkinson's, whether you're at risk, some of these other diseases. 23andme has 10 million customers. they have the opt in test for
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brca, which is the gene mutation whether or not you're at higher risk are of breast cancer, something angelina jolie made famous. the american college of medical genetics and genomics, tested 100,000 that took the test, 23andme, 93% of them carried the mutation was missed by 23andme. not very accurate comes to the testing. one of the professors at bcra research, three genetic variants 23andme tests for are most prevalent among ashanzi jews. like offering a pregnancy tests but only for jewish women that it would turn positive on. stuart: fascinating, somewhat troubling. thank you, susan. new revelations from the embattled prosecutor in chicago who dropped charges against jussie smollett. a news text message reveals what
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she was thinking before she dropped the charges. state and local tax deductions in the high-taxed blue states, 1%s getting hit and hard. told you. we'll break it down for you next hour. ♪ so, jardiance asks... when it comes to type 2 diabetes, are you thinking about your heart? well, i'm managing my a1c, so i should be all set. right. actually, you're still at risk for a fatal heart attack or stroke. even if i'm taking heart medicine, like statins or blood thinners? yep! that's why i asked my doctor what else i could do... she told me about jardiance.
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stuart: as we keep saying it is is a very small loss for the dow. that loss is entirely accounted for by ibm and unitedhealth, big dragses on the dow. if it wasn't for those two stocks the dow would be very much in positive territory. how about dominoes? that stock is up 5%, got an upgrade from morgan stanley. $12 higher there. united airlines, the ceo says it is on track to meet or exceed its 2019 profit target. united first quarter profit
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doubled. look at the stock. it is an airline. 88 bucks a share on united. to the jussie smollett case. text messages from the cook count prosecutor kim foxx are emerging. look at this, ped files with four victims gets 10 counts. washed up celeb, that is jussie smollett, who lied to cops, that is jussie smollett, gets 16, on a case eligible for deferred prosecution. this is indicative of something we should be looking at generally. just because we can charge something down mean we should. lawrence jones, fox news contributor, editor-in-chief of campusreform.org joins us now. what do you make of all this? go right at it, please. >> i think this highlights the corruption problem that is in chicago. one thing to believe in criminal justtic reform and treating non-violent offenders one way. that is not the standard in chicago. the standard is the rich,
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powerful, well-connected play by different rules. they have a corruption problem in chicago from the mayor's office, the prosecutor's office, even go to the governor's office, there has been issues with the police department in the past. this is indicative of a chicago corruption problem. stuart: here is the way i see it. i think that jussie smollett tried to frame president trump with that fake attack, making out that it was guys in maga hats who did it to him and shouted racial and homophobic epithets. i think he was trying to frame president trump, when he was caught doing it, the hate trumpers united around jussie smollett got him off. what do you say to that? >> i don't think it is just framing the president in that way. it is the trump supporters. to say that they said maga -- there were discrepancies in this case from the very beginning. people on the trump said say maga. i have never heard of maga country. you don't see a lot of maga hats
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in chicago in that part of town at night. it was freezing cold. there were some things inaccurate about it. but you're right, it was a frame of the president but not just the president. his supporters as well, to say that his supporters are racist and they don't like black folks, all that good stuff. stuart: yeah, you're a campus reform guy. you know this story. staff and alumni at taylor university, indiana, christian university, not happy that vice president pence will be this year's commencement speaker. they say pence is not in line with the school's christian values. what is going on? >> stuart, we've been reporting on this ad leadership institute at campus reform, indoctrination on campuses and anti-conservative rhetoric. the president this is a christian school. this should be a no-brainer. vice president pence's views are in the mainstream of what most christians believe. and so, to go against not only
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the vice president but an up standing man is concerning to me. these kids have an opportunity to witness the vice president of the united states. and i think it just shows you that it is not just liberal campuses that are under attack. it is christian churches now that are buckling to what they consider the mainstream point of view. stuart: it is about time these folks, administrators got a backbone. that would be my opinion. >> exactly right. only will take parents and grandparents who pay for the tuition to change this. stuart: precisely, if i'm paying i want to know what i'm paying for. >> that is exactly right. stuart: lawrence jones. >> thanks, brother. stuart: see you again, property. >> yes, sir. stuart: "assassin's creed," a popular videogame could be use to help rebuild notre dame cathedral. really? i am a skeptic. but we'll deal with it next.
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stuart: the gaming revolution, all right, good graphic. the effort under way shortly that is to restore note every dame cathedral in paris after a
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devastating fire. one videogame, a source says, assassins creed could help in that effort to rebuild notre dame. i'm skeptical. rob stein is with us. is this serious. i can't see is, but rob, you straighten me out. >> it is serious. i know it is hard to believe but the game "assassin's creed" unity is going to help influence the construction of notre dame. specifically all of the pieces that were destroyed in the travesty that happened earlier this week. unfortunately we did lose a lot of history and a lot of culture but they have captured a one-to-one replica of notre dame in "assassin's creed" unity, the centerpiece of most of the game. one of the interesting things about the replica they created the spire is actually from the modern age, it is the spire that we know that collapsed not too long ago. by utilizing the technology and
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the design that they put together, this will help to influence the reconstruction of that spire back to what we are aware of. stuart: okay. sounds like good marketing to me from "assassin's creed" people. let's dismiss that. more importantly, sony just revealed details about its playstation 5, the big one to come. now is this a total game-changer? from what you know so far, playstation 5, game changer? >> i would say that the playstation 5 is, well, i actually shouldn't call it the may station 5. it actually doesn't have a name yet. sony released they are coming out with a brand new console, and the console will be released in 2020. we know for a fact it will not come out in 2019. we speculate it will cost around $499. we know for a fact it will be play in 8-k resolution, something most people don't have. but it will future proof yourself in the future. with i will utilize ray tracing
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technology, basically understanding how a light ray interacts with 3 d objects in a space. it will help to create more in depth visuals as well as better sound quality. you can tell in three d, 3 sound is, where enemies are in reaction to you. how you interact with the environment. things like that. it is very interesting. stuart: that sounds like a real step forward for gaming because i'm always interested in those graphics. they seem so realistic, so adjustable. they really are compared to my day playing pong in a bar 30 years ago is a big difference. they're all laughing at me. rob, they're laughing at me, i'm totally out of touch. i can see your point. when the graphics improve exponentially like that, that is a big draw. last word to you. >> absolutely. and not only that, one of the biggest things that i really enjoy that i learned from watching, from reading the wired article is that this system is
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going to be backwards compatible. it will play everything on the playstation 4 system. not only that it is also going to take physical media. that doesn't mean it will be just streaming system. can still go to the store, buy your games. plug them into the console, own them, play them the way you always did. stuart: rob steinberg, thanks for filling me in on this i appreciate it. mr. steinberg, we'll see you again soon. you're done. president trump looking at the democrat field. he is liking his chances at re-election. i'm looking at the market and the economy and i like his chances in 2020 as well. that will be the subject of my take coming up right ahead. a lot happening at the border including the mayor of yuma, arizona, declaring a state of emergency because of the migrant crisis. we'll take you there live. we'll ask a republican member of congress how he thinks the democrats will react to the mueller report tomorrow. big hour ahead. we like to call it the power
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hour. ashley: oh, i look that. 2,000 fence posts. 900 acres. 48 bales. all before lunch, which we caught last saturday. we earn our scars. we wear our work ethic. we work until the work's done. and when it is, a few hours of shuteye to rest up for tomorrow, the day we'll finally get something done. ( ♪ )
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stuart: 20 months to the 2020 election. president trump is looking good. i know it's a long way off but as things stand now, i think he wins. okay, now that's my opinion, but i'm saying this for two reasons. number one, the booming economy. the booming stock market, and the extraordinary gains in your 401(k). now, money's important in elections and your money is doing very well. number two, the president's likely opponent, bernie sanders or joe biden. at least that's how the race is shaping up now. both have big problems. let's put some meat on these bones. 55 million people have a 401(k). that's a pension plan offered by most corporations. 401(k) money is most often invested in stocks and stocks in the trump era have done very well. since he was elected, the dow
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has gone up 44%. that is huge. the value of all stocks has gone up by $9.1 trillion. middle america has a big slice of that. this stock rally is based on the booming economy. remember the expression, it's the economy, stupid? that still holds true. of course, a recession before the election could upset the whole apple cart but this president is going to move heaven and earth to stop that from happening. then there's the president's likely opponent. bernie sanders or joe biden. i know mr. biden has yet to declare his candidacy, but he has made a campaign ad in spanish. i'm discounting the rest of the vast field, although of course, there's 20 months for surprises, upsets and revelations. start with bernie sanders. he will be 79 on election day. will millenials support a white male as an 80-something president? not sure about that. and he's a millionaire socialist who gives little to charity and won't give back his gains from
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the trump tax cut, and he won't say how to pay for his $30 trillion medicare for all plan. i don't see how a tax and spend, tax the rich millionaire socialist can win. joe biden, he will turn 78 right after the 2020 election. again, will millenials, the largest voting bloc, support an aging white male, again, i'm not sure about that. i'm not sure what damage has been done to his candidacy with his history of unwelcome touching but i am sure that america will not look kindly on his grovelling apology for saying mike pence is a decent guy. get a backbone. you can't go round apologizing to everyone you may have offended. presidential apology tours do not go down well. president trump has already fired an opening salvo. as usual, he pulls no punches. look at this. i believe it will be crazy bernie sanders versus sleepy joe biden as the two finalists to run against the best economy in the history of our country and
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many other great things. i look forward to facing whoever it may be. may god rest their soul. i think i'll leave it at that. the third hour of "varney & company" is about to begin. stuart: we will get back to my little editorial there in just a moment but first, check the big board. ibm and united health dragging on the dow. without those two stocks, the dow would be up maybe 70 or 80 points. right now it's down just four. ryan payne is with us, president of payne capital management. okay, first off, the economy and the markets, i think, give the president a nice leg up for 2020. what say you? >> yeah. i think it's just pragmatic. if he is still keeping the economy afloat, the economy is staying afloat, he will take credit for it either way, probably stay in office. definitely it's about the
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economy. stuart: you see him winning in 2020, the economy is the reason? >> if the economy stays strong. stuart: what about his likely opponents, either sleepy joe or crazy bernie? what do you say to his opponents? >> that, i don't know. they are both very, very -- well, bernie is very far to the left. i just think an extreme candidate doesn't resonate with the american people as a whole. i think the democratic party, again, i'm pretty apolitical but i would say probably someone near the center would be your best bet because i think that's where most americans are today. stuart: in this day and age, you manage money, you give advice to people who are investors. you've got to take politics into consideration. you've got to have a view on the economy and on the presidential election. you've got to, because it matters to the markets. >> you would think that but statistically, it doesn't. warren buffett said it best. he would never delay a business deal because of what's happening on capitol hill. most important thing you can do is focus on the economy, not politics to make investment decisions. stuart: fair point. fair point. >> yeah.
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stuart: the president is already on the attack at bernie sanders. i want to show you this tweet, it came from the president and here's the quote. bernie sanders and wife should pay the pre-trump taxes on their almost $600,000 in income. he's always complaining about these big tax cuts except when it benefits him. they made a fortune off of trump but so did everyone else and that's a good thing, not a bad thing. i mean, where do you go with that? man's on the attack. >> not only on the attack, he's always on the attack. stuart: but it's effective, isn't it? i say it's effective. >> maybe yes or no, depending what side of the aisle you stand on. i don't know. i don't know if it does make a difference or not. at the end of the day, look, the economy is strong, it has a lot more to do with american business doing well right now. you have a strong dollar right now. i think for all those reasons, that's the real reason we are doing well right now, aside from politics. stuart: i kind of misspoke. president trump is always under
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attack. he also responds with an attack of his own forcefully. that's what he does. let's talk china. we've got news this morning that their economy is growing and i think at a pretty strong rate. 6 p 6.4% annualized. is china leading a rebound for the global economy? >> absolutely. absolutely. yeah. think about it this way. the chinese economy is one of the only ones that's being stimulated in the whole world right now. last month, they had exports go up 14% so if their economy is doing well, that means they will be importing more commodities, more goods and services and the whole global economy benefits from that, because there's a lot of things that get imported into china. if that happens, the chinese economy continues to strengthen here, that's great for everybody. stuart: now, apart from the dow industrials, almost the entire stock market is up this morning, s&p, nasdaq. >> yes. stuart: most of the dow 30. is that because of the china news, or the earnings reports, have they got something to do with it? >> right now earnings are driving the u.s. market because
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they are coming in better than expected, which i predicted earlier on one of your shows. everyone got a little too -- a little self-promotion once in awhile. i think that has more to do with earnings. i think we would be remiss not to talk about the global economy is doing really well this year. emerging markets are up over 15%, developed markets including uk is up closer to 13%. their markets are a lot cheaper than u.s. right now. i think it's foolish not to think about putting money globally as opposed to just the u.s., because that china deal is really going to matter to the rest of the world. that's looking very good right now. stuart: i've got to go back to this 401(k) story. >> yes. stuart: 55 million americans have a 401(k). something like 30 million have an i.r.a. most of that money is invested in stocks and it's done incredibly well since trump was elected president. i've got to believe that -- you're laughing. i've got to believe that's a shot in the arm for the president. >> can i play devil's advocate? it's been going up before that.
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since 2009, the markets. stuart: okay. okay. but that's a rebound from the low of march 2009. it really took off on november 8th and 9th when trump was elected. you don't give him credit for that? >> i never want to give a politician credit for the market. i would be amiss to do so. stuart: okay. that's the way you feel, time's up. ryan, thank you very much for being with us. thank you very much. i want to get some big news from the border. got it for you. the mayor of yuma, arizona has declared a state of emergency. their shelters just can't handle the migrant inflow. he wants the government to step in. president trump weighing in on twitter. here it is. democrats in congress must return from their vacations and change the immigration laws or the border, despite the great job being done by border patrol, will only get worse. big sections are now being built. big sections of wall, that is. later this hour, we will have brandon judd on the show,
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our border guy. i want to know what mexico is doing to stop these migrants from getting to our border. quick stock check. start off with netflix. they turned positive again. they have been up and down all morning, ever since they have reported their earnings late yesterday. u.s. subscriber growth slowed for this -- compared to this time last year, 1.7 million new customers. the stock right now up just two bucks, $361 on netflix. lyft up today, a little, but well below the $72 ipo price. they are shelving their electric bike sharing division. riders complained of braking problems leading to a few injuries. lyft at $57 a share. the dow has now turned positive. there you go, it's up eight points. okay. ashley: now we're cooking. stuart: we're cooking. okay. we'll take it. here's what's coming up for you. we have a unicorn on the set.
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a conservative hollywood producer. i call that a unicorn. he says hollywood is becoming less liberally dominated. really? even he works with many secret republicans in hollywood. i said this before. the top 1% in high tax states are getting the short end of the stick when it comes to tax cuts, and now we've got the numbers to back it up. we'll break it down for you. president trump countering the white house correspondents dinner with a rally. is that a good idea? we talk with the rnc about that. you wouldn't accept an incomplete job
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stuart: want to give you an update on notre dame. lasting damage from monday's fire, it's an 850-year-old landmark as we said, lasting
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damage. donations being made from all around the world. now they total $990 million. just a tad shy of $1 billion collected already. notre dame's director says the cathedral will be closed for more than six years, but france's president macron holding a special cabinet meeting and he says he wants the cathedral rebuilt within five years. there's an architectural contest now being held for the cathedral, the design of the cathedral's new spire. the mueller report will come out tomorrow, late probably tomorrow morning. congress sees it for the first time as well. come in, congressman bill johnson, republican from ohio. congressman, what do you think? have at it, please. what do you think the democrats are going to do in their reaction tomorrow? >> well, i think they are going to continue to do what they've done since 2016, stuart. they're going about the mueller report just exactly the way they did about that election. they can't accept the results of the mueller report, the summary
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that attorney general barr gave, and they are going to dig into this thing and they are going to try to find anything and everything that they can to continue the attack on the president. here's what we know. there was no collusion and no obstruction, and the american people are wanting us to move on from this. stuart: tomorrow, it's going to be the redacted version. some of it's going to be blacked out, redacted, okay. surely the democrats will say we want to see the whole thing, we want to see all the details. we want to see it all. what would be your response to a democrat demand to see the unredacted report? >> well, first of all, i think attorney general is going to do what he is bound by law to do. he's going to protect intelligence sources, he's going to protect classified information. i think it's very interesting that jerry nadler during the bill clinton trial, during the bill clinton investigation, he didn't want the ken starr report released in its entirety but now, all of a sudden in this case, he does.
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so i think they are going to do what they're going to do. but again, the american people are going to want us to get on with life, start addressing the issues that they are concerned about, the economy, energy production, the opioid crisis, infrastructure, you name it. stuart: as you know, bernie sanders was in your state sunday, part of his midwest tour over the weekend. now, your state went for mr. trump by a solid margin in 2016. do you think that ohio is back in play? >> not for bernie sanders. the people that i talk to in ohio, they understand what socialism is and they don't want any part of it. they understand that our system was built upon the concept that everybody helps pull the wagon, nobody rides in the wagon. if everybody is riding in the wagon, who's going to pay for
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it? that's what bernie's problem is. he gives no indication how he's going to pay for all of these great free and glorious things. stuart: okay. mr. congressman, thanks very much for joining us, sir. you look like a happy guy in ohio. you really do. >> i'm always happy when i'm on your program. stuart: you know, flattery as i say constantly, is the mother's milk of television. i think you're doing a great job. thanks for joining us, sir. appreciate it. see you soon. don't forget, keep it on "varney & company" first thing tomorrow morning, 9:00 a.m. eastern sharp. we are expecting the mueller report to be released at some point in the morning, maybe even during our show or before it. we are going to break it down for you and that is a promise. ashley: oh, yes. stuart: we will go right at it. stock check. amazon, new report out of britain says thousands of fake five-star reviews are on amazon. no named companies, faking reviews to get their products noticed. no impact on the stock
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whatsoever. it's up five bucks at $1,868. look at big tech. apple up 201, amazon up, facebook, 179, alphabet is up, microsoft, solidly above 121 as we speak. check this out. the world's largest passenger plane has finally landed in scotland. it's a super-jumbo a-380, flew from dubai. first time scotland has been able to accommodate this giant plane. susan: okay. ashley: i don't have a bagpipe. stuart: please, no. look at this. that's video. susan: wow. stuart: boston dynamics. strong enough to pull a big truck across the company's parking lot. the 60-pound spot-mini robots are coming off the production line now. susan: mush, robot, mush. stuart: they will work rescue
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missions. ashley: isn't that fantastic? liz: looks like something out of an anxiety dream. stuart: planes, trucks and electric hypercars? this is going to cost you more than $2 million. faster acceleration than any ferrari. that's what electric cars do. the pickup is fantastic, so i am told. hey, flock's in it. we are going to get a close look at this thing in a moment. stay there, please. what if numbers tell only half the story?
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stuart: we showed you the pininfarina $2 million car. jeff flock was in one. now he's not. what's the deal? reporter: i said i want to show stuart varney the most powerful car at the shoechw. simple thing. it's actually not at the show. not only that, the most powerful car that's ever been built in the world is actually about ten blocks from here. we came over here in a cab, not
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this, to show you exactly the pininfarina battista. if you have heard that before, this is the guy who designed some of the most iconic ferraris in the world. this, though, is all electric. that's what makes it the most powerful car ever built. our good friends here, go ahead, open it so stuart can see it, 1,900 horsepower, 1,900 horsepower. remember we talked about the dodge charger that goes 700 horsepower, oh, that's big? this is the most powerful street-legal car that's ever been built. carbon fiber. there are four electric motors that drive each of the tires. i tell you, pininfarina, you have heard of tesla -- hey, frank, come over here. i want to show you something. these folks have designs on becoming the high end tesla.
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something more high end than tesla. this is their logo. they, in addition to making these super cars which will sell for between $2 million and $2.5 million, you have to put a $200,000 deposit down, they would like to also make cars that maybe even, well, you could afford. i don't know that i could. stuart: very funny. if you can hear me, real fast, what's the acceleration like on that car? reporter: 0 to 60 in less than two seconds. ashley: wow! reporter: i will give you a week's pay if you could actually get into this car. stuart: i'm sure you will be showing the entire network that for the rest of the day. glad you were with us this morning. 0 to 60 in less than two seconds. liz: rocket ship. stuart: next, we have new numbers on how the cap on state and local tax deductions, you know, salt, how it hit the 1% in
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high tax blue states. we will break it down for you. it hurts. told you. president trump skipping the white house correspondents dinner again, this time heading to wisconsin for a rally. i wonder how that goes over with voters. we are talking strategy with the rnc next. what do you look for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better,
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stuart: all right. we've got a 16-point loss for the dow industrials. ibm and united health are still bringing the whole dow down. without those two stocks, we will be up significantly. staying on your money, specifically your tax refund. you know, i have been saying for a long time now that one percenters who live in high tax states, new york, new jersey, connecticut, illinois, california, those one percenters are getting hit in their refund, and their taxes have actually gone up. i want to bring in our tax guy, brandon arnold, executive vice president of the national taxpayers union. all right, you've got the numbers. back me up. again, my premise is one percenters in high tax states
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are being clobbered by salt. tell me. >> i'm not sure i would go so far as to say they're getting clobbered. let's be honest, every income group in every state is getting a tax reduction on net thanks to this tax bill, but the people that are most likely to get a tax increase are certainly wealthier folks, people in the top 1% in high tax states like those you mentioned, new york, california, connecticut, so forth. so if you are in that category, it's about 30% of folks that are top one percenters in high tax states will see a tax increase or just saw a tax increase in 2018. stuart: 30% of one percenters, okay, that's the top income earners, 30% of them who live in these high tax states, they are paying more in tax. that was my original premise. i kept saying that because that's why there is an exodus of people and it will continue, from new york, new jersey, et cetera, et cetera. are you with me on that? >> yeah, i think we have already seen a lot of wealthy people leaving those states thanks to the high taxes.
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what the salt deduction did, the state and local tax deduction did, is shield these wealthier taxpayers from their state tax burden by allowing them essentially to shift that on to the federal government and federal taxpayers. the cap on the salt deduction at $10,000 that was just instituted reduces that ability for wealthier taxpayers to shield their tax liability and so, yes, quite likely they will seek out lower tax jurisdictions. stuart: what you are going to do is go to nevada, florida, texas. you're not exactly home-free but you gain a great deal of money. brandon, the 1% aside, put that aside for a second, the "new york times," even the "new york times" admits that trump's tax plan is making waves. that counters the argument that it didn't do any good in the first place. what do you say? >> yeah, the "new york times" article was pretty shocking, i have to be honest with you. it said that in fact, 80% of taxpayers are getting a tax cut under this law. i think they tried to use a slightly lower number but the vast majority of people are getting a tax cut, yet only
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about 40% of americans believe that's the case. the reason is quite simply because there's been so much disinformation, misinformation in the media, there's been all this confusion about what tax refunds are looking like. so a lot of people are very confused. if they look at their tax return in 2018, the one they hopefully just finished up, and compare that to 2017 and previous years, they will see a tax reduction and that tax reduction is quite likely in the four if not five digits. it's a significant tax reduction. stuart: one more thing. i have been saying consistently the amount of money which will flow out of the treasury this year in tax refunds will be less than it was in previous years because of salt. am i right? >> tax refunds, absolutely, because a lot of people saw their income adjusted at the beginning of 2018, we had new withholding tables so people were getting more paycheck to paycheck. that's why there was a little bit of confusion, that's why people didn't necessarily get
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the refunds they were expecting because they were getting more money over the course of the year. so absolutely, we are looking at tax refunds probably being a little bit down. we will see those numbers pretty soon. but my expectation is you are absolutely right there. stuart: i was right, i was right, thank you very much. thank you very much for joining us. you can come again, i'm telling you. thanks very much. >> my pleasure. thank you. stuart: speaking of the president, he's going to skip out on the white house correspondents dinner again. it's being held next weekend. instead, he's going to wisconsin and holding a campaign rally. come in, kathy smedley, deputy communications director for the rnc. what's the strategy here? ditch the dinner and go to the midwest, why? >> that's right. the president is going exactly where he loves to go, out into real america and talk directly with real americans about the results of this administration and the promises he still has yet to fulfill, if he should be re-elected which we feel confident he will. it's only fitting that he gets to be out in real america where he prefers to be, and the
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washington press corps is in a ballroom in washington, d.c. patting each other on the back which i think is where they prefer to be. they should spend more time in real america. stuart: i think that dinner might fall flat because the president's not going and i understand they are not even going to have a comedian this year. >> that's right. stuart: it falls flat. >> i would agree with you. after last year's embarrassment with that comedian, i think they are trying to turn a corner and make it into something else, but the truth of the matter is, this has become a joke because the press has been roasting the president every single day. i love that the president is saying you know what, you have an event without me, i'm having an event without you. i'm talking to the american people, this is where i love to be and he's great at it and the people love having him out there. stuart: in the next 20 months, there is 20 months until the election in 2020, is the president going to make a determined effort to hit the midwest, the heartland of the country? is that where he's going to focus his campaign? >> absolutely. because he never stopped
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focusing his campaign in the heartland of america. this is a president that unlike the democrats, unlike the media, he knows where the important voices are. they're not in washington, not in new york, not in l.a. they are in all of the states in between that encompass our great country. so he's going to go out and barnstorm the country just as he's been doing since he announced his candidacy. stuart: what do you make of this tweet where he's talking about joe biden and bernie sanders and he said, i think he concluded with god rest their souls, something like that. sleepy joe and crazy bernie. ashley: yes, yes, yes. stuart: may god rest their souls. may god rest their soul. would you like to comment? >> i think he's saying give me your best shot but i'm going -- i've got a record of results to run on. i can't wait to get on that debate stage with whomever you can muster to run against me and talk about the record of results versus your record of just trying to fight me while i'm out there fighting for the american people. stuart: i think you are very lucky.
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you have the most entertaining president in american history to look out for. you've got a great job there. >> yeah, i appreciate it. he's also a president who delivers results. i get a double win. stuart: nicely done. thank you for joining us. we appreciate it. thanks a lot. now this. spring is here in the northeast. warmer weather, we can finally see the sun even in new york city. however, down in florida, high temperatures are having quite the effect on wildlife. look at this. the sunshine state dealing with a gator problem. warmer temperatures bring out these guys into residential areas, they are wandering under parked cars like that fellow right there, looking for food and love. check this out right on the shoulder of the local highway. wildlife experts say not only do warmer temperatures boost their metabolism making them hungrier, quicker, their mating season is just starting. take a look at this. his quest for a spouse ended abruptly when he broke into a
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home in ft. myers 2:00 in the morning. the police were called, eight-foot gator had torn through the home's screened-in porch looking for love in all the wrong places. whoever did that, well wrote. check on individual stocks. look at domino's pizza. morgan stanley analyst hot on the stock, saying it's a buy. it's been up all morning. almost ten bucks higher. united, the airline, up almost 4%. their ceo says their boeing woes won't last past this year. they are bullish on trans-atlantic travel and their profit doubled in the latest quarter. the mayor of yuma, arizona declared a state of emergency because of the migrant crisis. we will take you to the border and speak with the head of the border patrol union, next. did you know there are secret republicans hiding out in hollywood? so says our conservative hollywood producer. he says tinsel town is less
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liberal. i'm a skeptic. we will be back.
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stuart: to the border. we told you earlier about the mayor of yuma, arizona, declaring a state of emergency because the city just can't handle the number of migrants pouring over the border. william la jeuness is in yuma. set the scene. what's it like down there? reporter: many central americans arriving from central america are headed around the united states to large sanctuary cities where they have sponsors, relatives or a job, but their journey begins in border towns like this, relatively small. well, the border patrol as we know is overwhelmed. the processing center here is
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designed for 420 and it has 950, so they are overwhelmed. they don't want to put people on the street. by law they have to release people within three days so the salvation army converted this store into a shelter about three weeks ago. they started with 60 migrants. last night, 215. another 100 on the way. that prompted the mayor to declare an emergency which allows the city to appeal for federal or state aid. stuart: sorry, i lost you there. so the state of emergency is not to keep them out, it's to get federal money to pay for them when they arrive? that's the nature of the emergency, right? reporter: right. so stuart, yuma has got 100,000 people. they can't afford this. they went through 19,000 pounds of food in the first three weeks, right, so this is a small community. they have their own problems.
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they have their own homeless issues. they have people in need. and the community supports itself. suddenly, you've got an influx of people from central america. they can't handle that. there's a town just east of here that yesterday, they saw the largest number of migrants ever apprehended by the border patrol. it was 399, including 284 children, right. they arrived by three buses from guatemala, these express buses where the cartels are running people. the bus pulls up on highway 2 which is right along the mexican/u.s. border. they walk across about 150 feet, then they go through an area where there's no pedestrian fence at all, then they turn themselves into the border patrol. so now what are you going to do with 400 people, right? so all the i.c.e. facilities in arizona are full. the border patrol processing facilities are full. both of those are under mandate, court order, to release people or else they get sued by the
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aclu so do you put them on the street or take them to the greyhound station? this is kind of a processing center which allows them to get a bus ticket to head off to new york or chicago or l.a., where because they are asylum seekers, they will be able to work within 150 days and they will live there until they have that notice to appear in court which as we both know, 9 out of 10 don't show up for. so that's the problem. honestly, i'm going to take this somewhere else very quickly. basically the question is what are democrats going to get from republicans and republicans have to give up to get some kind of a deal here, because everyone knows you have to close that asylum loophole, right, so is it going to be comprehensive immigration reform, citizenship for 11 million people or just daca people, legalization? what's it going to be? republicans have to bring democrats to the table and have to give up something to get some kind of solution because towns like this can't handle it. stuart: it's a mess and that's a fact. william, thank you very much indeed. i will stay on the border here. officials in mexico tried to
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block a new migrant caravan from getting into southern mexico. they say, the mexicans say they are a threat to mexican security but the caravan broke through anyway. that's got to be a disappointment for mexico and for president trump. brandon judd is with us, national border patrol council. what a mess. they tried to stop the caravan but they break through anyway. what's going on here? >> this shows you that these individuals have no regard for the laws of other sovereign nations. that's very disappointing to see. stuart, i was on the border last night in yuma, arizona with a contingent of congressmen led by andy biggs. we saw exactly how much stress the city of yuma is under. they were able to see how many individuals we had in custody, how many people we're releasing. the night before i was on the border in el paso with senator johnson. one of the main take-aways he saw was the number of cubans
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that were coming in in our custody. we drove along a seven-mile stretch of border and i asked him, i said count how many number of border patrol agents you're going to see. we did not see one border patrol agent in that seven-mile stretch. in a normal period of time, we would have seen seven to eight border patrol agents. that's because we are so stressed right now with the numbers that we're dealing with, we are having a hard time operating as an agency under this current crisis and to see that the democrats are not stepping up and they're not giving us the relief we need or not putting in place the fixes we have to have is completely disconcerting and i hope that the american public is taking notice of that. stuart: we just heard a report, last night they intercepted a party of 399 people which included 284 children. are we to believe that the actual crush of people coming across is now speeding up? >> it is. it is.
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in fact, what we're seeing is we're not seeing -- in certain places, let me take a step back. in certain places we are seeing a slowdown so what we are seeing president trump's threat to close down borders, we are seeing a certain slowdown in certain places because those cartels are being hit. but we're seeing an increase in other places such as tucson, arizona, we saw a drop in 18% in the first 15 days of this month, but we're seeing increases in other places and that's because those caravans are simply breaking through mexico's southern border and they just have no regard for the laws. stuart: brandon judd on the spot again, thank you very much indeed. we will talk to you very soon and that's a promise. thank you, sir. >> thank you very much. stuart: i guess you could say this is more bad news out of california. we ought to make this a recurring segment of the program. know the tiny bottles of shampoo hotels give you when you stay? remember those? california wants to ban them. state lawmakers want to cut down on the state's plastic use.
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any small plastic bottle used for personal care, the law says, will be illegal. that's if it's passed. if it is passed, it goes into effect 2023. now you know. next, we are talking to a conservative hollywood producer. that's right, they do exist. he says tinsel town is less liberal and there are secret republicans. i want names. i doubt he's going to tell me but i'll ask anyway. ♪ when heartburn hits, fight back fast with tums smoothies. it neutralizes stomach acid at the source.
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stuart: ah, i can see it now. the mueller report being made public tomorrow, liberal hollywood superstars taking to twitter immediately, symbolically indicting president trump on charges that don't exist. however, where are the conservative voices in tinsel town? our next guest has that answer. he's the executive producer of the new film "the public." by the way, we have a clip from it. let's roll that now. roll it, please. >> identified homeless man was found dead just outside the doors of the public library. >> i heard two more people froze to death. when it gets this cold, i don't know why they don't just let us stay here. >> in ten minutes, the main library will be closing for the night. >> i got to talk to you.
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>> there's not enough shelter for us people on the street. >> there are a lot of cop cars here. is everything all right? >> they're just staging an action. stuart: that's the movie "the public" and it is not a political movie. it tells a very good story. the gentleman on your screen, ray boudreau, is the producer of that movie and is a hollywood conservative. you exist. >> i do. stuart: here you are. wait a second. wait a second. you say, you were at president trump's inauguration. >> i was. stuart: you are saying tinsel town, hollywood, is not so liberal as we might think. >> you know, i think we are all americans. i think we all have different views. i think that to paint hollywood as all liberals, i think is wrong. stuart: can you name a star, someone that i would recognize,
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as a star, who is a conservative? >> bruce willis, steven baldwin. i know steven personally. i don't know bruce. stuart: you said some of them are secret, closet conservatives? if you expose them now, they would never work again, would they? >> i don't know if they would or wouldn't. you know, it's tough to say. i think that a lot of liberals in hollywood speak loudly and they speak often. and they air their views which is their, you know, god-given right, and i think conservatives are more, not closeted, but not out there preaching it from the street corners. stuart: is it becoming less liberal? can i put it like that? >> i would say that, you know, it's a business. in any business, it's show business so you know, creatives are lot of free thinkers, tend to be more liberals, where the busy think are more moderates
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and conservatives, and it is that marriage of both. stuart: that movie, we just showed the clip, that's not a political movie, is it? >> no. stuart: you were telling a story about homelessness, was it? >> correct. emilio estevez wrote it. i guess he would be referred to as liberal. stuart: didn't you have alec baldwin in it or collaborating on it? >> he co-stars. he did a great job. i had a scene with him. stuart: he's a conservative kind of guy -- sorry, he's a liberal kind of guy, doesn't like president trump at all. >> no. but i mean, it doesn't hurt my feelings. stuart: he didn't have any problem working with you? >> i don't believe so. stuart: did you tell him you're a conservative? >> i don't think it came up in conversation in the ten minutes i worked with him. stuart: it will now. >> it might. but i mean, my views are mine. you know, if anybody disagrees with them, happy to. stuart: do you talk politics on the set when filming that movie? >> no. stuart: you don't? >> no. at least i didn't.
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stuart: would that be true of most movies? >> i imagine. yeah. nobody's really out there talking politics. maybe amongst friends in a trailer, but you know, we're there to work. it's ten different trades working together to build a project on time on budget. stuart: very interesting. i'm going to see your movie. thanks for doing this this morning. >> thank you for having me. stuart: good stuff. see you later. more after this. i can't tell you who i am or what i witnessed, but i can tell you liberty mutual customized my car insurance so i only pay for what i need. oh no, no, no, no, no, no, no... only pay for what you need. . .
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stuart: been like this all morning. a modest loss for the dow industrials. as we keep saying that loss is the result of just two dow stocks, ibm and unitedhealth. both of them are down sharply. that drags the overall dow down. if it weren't for those two stocks we would be up about 50 points. don't forget, ladies and gentlemen, keep it on "varney"
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tomorrow morning, 9:00 eastern sharp. the mueller report will be released at some point tomorrow morning. not sure exactly when. when it appears we'll break it down. you will see a lot of coverage of this. see it from us. see it from our point of view. more interesting. neil, it's yours. neil: stuart, thank you very, very much. take a peek at the corner of wall and broad. the dow jones industrials down 33 points. market weighing better-than-expected earnings, some worse than expected earnings and strength out of china. we'll pet to all of that. first to the border what is happening there. the acting homeland security secretary kevin mack kev mack. edward lawrence at the white house with more on that. hey, ed. reporter: acting homeland security secretary wants to see the crisis himself. president trump wants to stop

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