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tv   Varney Company  FOX Business  May 7, 2018 9:00am-12:00pm EDT

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my thanks to our fantastic panel and charles payne in for stuart this morning. charles take it away. >> thank you very much i'm charles payne but stewart is off and we have a lot for you particularly this morning president trump continues to go on the offensive. against the muller probe new tweets this morning about the witch hunt. but what is rudy giuliani's role in this new questions today about what rudy said again in his sunday show appearances as a deadline looms for president trump to make a decision on the iranian deal. we have reports that john kerry is working the other side. he wantses to keep the bill in place and as we await news from the iranian deal oil trading about $70 that's highest level in nearly four years it is a big day many politicses bigger day for your money that's what we do here on "varney & company" and
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it's about to begin right now. ♪ >> pointing to panel has destroyed more homes ashley how many? >> 26 homes at last count. more than 2,000 people have been forced from their homes. some were allowed to go back to save their pets. i can't imagine running without taking my pet with me but didn't have time so allowed to rescue their pets. as you can see it is quite spectacular devastating at the same time most active volcano and constant eruption for 35 years. and this again, is is another major eruption 26 homes charles, more could be destroyed. >> remarkable footage. run back to get my pets and mothers passport from 1964. [laughter] folks let's take a quick look at the piewches market has been up all day, of course, remember we have a huge reversal on friday
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market at a very pivotal point right now future up 8 means open probably over 100 points. one of the key movers today is oil. west texas intermediate i want to bring in watcher bill phillips 70 that's a big number and it was not long ago they were talking ab two handle in the west. >> oil and any time there's conflict in the middle east you typically see oil begin to rally and we have good production numbers so that's something we're watching and run up on that so staying equal weight on energy. >> cost on production number it is gets better and better. and dramatic decline in inventory a build recently but does it feel to you that perhaps the american producers understand that they were getting caught in this sort of opec trap as it goes higher they started to produce more and shoot themselves in the foot. do you think the industry has a discipline because saudi arabia is has made it known at this new opec meeting to get to 80 a
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barrel. ferlg weal see the wild card and u.s. producer i think my view is when they see the price go up they start turning on it and producing more. but no discipline there. not much discipline and a lot of former wild caters so they have it in their blood to produce when it is high. >> iranian nuclear teal, of course, a lot of chatter that we're going to tear it up. rudy actually might be weighing in on the oil market this is morning because he said recently trump will rip up this deal that means reduce for production from iran. you add into that venezuela capacity is just about done. i mean they've boxed themselveses into a quarter kicking down all of these western countries. i mean we could see maybe a -- a serious issue with respect to supply. >> yeah. you know, that's the side that's tough it to gather right like we're looking at these commodity markets they're tough really to call and tough to call on soybean and oil side so you know, i think our view is
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production will continue to be strong. we see a lot of production coming out of the u.s. and we think we're going to see a continued strong production from the u.s. >> adding that copper has been linger more for the industrialized world which one is the real story here. all of the other comomty or copper? >> we think copper is a good indicator like we're looking at commodities saying there's not a huge inflation risk near term so we think market is kind of talking a little and inflation a little too much. we think it is more of a slower inflation for the next year or two. >> thanks for having me. well nestlé signed a huge deal to sell starbucks products worldwide suzanne lee is here with the latest details. sudan. a rich licensing deal so nestlé is paying $7 billion up front and they have reoccurring royalties for each years after that that's it for the right to license. that means to sell and district some of these starbucks brands that includes the seattle best
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coffee. starbucks refer, and tea vana tea and hanging out for this and analysts say because they have failed to grab a foothold had it comes to the u.s. market. they do have a calf day losing market share for out of the past five years, their e high espresso brand endorsed by george clooney and bought up a coffee brangd just last year. but this is a shift away you know from their traditional candy or bar business. >> the pots for those machines that starbucks -- all about pods. yep, yep that's the new trend right, and they're trying to compete with keurig, of course, here in the u.s. green mountain, and starbucks and might as well buy-in to get a foothold in the u.s. market. for starbucks, i mean, they're getting a lot of money upfront. they have to focus on their u.s. instore sales had is slowing for past few years an try to come back from a pr debacle in philadelphia where they ask to african men to leave -- >> the stock is up nicely here
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before the open this is a big move for starbucks the -- >> underperforming this year. sure what could they do with this money, though, to kind of change? we've seen other restaurants come back big time. mcdonald's come back big time. chipotle up 25% at two weeks ago because the new ceo and what can they do? because they feel like initiatives and coffee have failed. >> starbucks said to use this money to pay back shareholders which is financial engineering for companies hello apple have been doing toes boost up their share prices. >> not so much for ibm. thank you appreciate it. seems like trump or rudy giuliani is running wild trump tweeting, quote, this morning russian hitch sungt is losing credibility and found in collusion coordination or anything else. so now, they say okay what else is there? how about obstruction for phony crime there's no oh, it is called fighting back.
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all rise judge nan is here with us. where is this right now because i've lost track a long time ago. >> since rudy entered the picture with his interview with sean hannity wepgdz night rudy has become the subject of scrutiny because of thing he's said. he has either violated the attorney client privilege by repeating confidential communications to him made by his clients or done so with his clients consent in which case, it's not a violation. but he's given -- he's given new steam to additional allegations against the president. particularly with respect to this campaign violation, which is a criminal violation by the way. potentially a criminal violation. correct and argument is -- this, this is what he said yesterday. why didn't the president know that 130,000 was paid on his behalf to silence stormy
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daniels, answer, well the president paid a lot of money to a lot of women at that time period because it was the campaign. wow -- if is the president paying money to silence people because it's the campaign if so that's a campaign debt. which was not listed on -- on staments signed under oath as to what campaign debts were and did president pay other people whose names are not known to the public? so there's no reason you asked me rudy involvement and no reason to add that parenthetical in there which to not to my hiepgd but to the prosecute mind gets the wheel answer gears turning is there another avenue to examine here? >> rudy -- when rudy came onboard the idea that that he would expedite this and push it forward, of course, they were talking to wrap it up in two weeks no one believed that. but do you feel like what he's getting now are things that were laying in the weeds that we would have had to wait months to hear about trying to get heated of this? >> no. i don't think he's expediting
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but giving the prosecutors more material with which to work, and i think he's not necessarily -- serving his client well for example, he said -- well we may have a release of three americans from north korea. that is top secret information. now, if the president told him that, and the president wanted hill to release that, that's the president's prerogative but that's not what rudy was hired to do unless rudy's idea to throw so many stones in the water to create chaos rather than having his client, the president, create the chaos that somehow that will help his client i don't think. this taunting much bob mueller this taunting of his witnesses -- is going to enhance the prosecute not push them back. >> where does this stand because a lot of people are saying hey, we have a good, donald trump, who put perhaps 100 million into the campaign. his own money -- >> right. we have a guy who had maybe --
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you know, over dozen women create allegation it is that he pushed back against. why would he have to hide 130,000 against potentially invested 100 million into his own campaign? >> i wish i knew the answer to that but if 130,000 was a debt, he would have to have reported that on the ethic and government act and certainly wasn't incorporated act. >> he wouldn't be the first president and even president obama had to pay a fine for something -- >> correct. correct. but president obama wasn't under the microscope of a special counsel who was determined to find something to justify his existence. >> judge thank you very much. appreciate it. >> you're welcome. >> facebook says you're sick and tired of ads you may be able to get rid are of them all you have to do that's right fork over cash. we have details on that next. also former secretary of state john kerry engaging in shadow diplomacy to save his iranian deal and he's doing it all on his own.
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>> profit hurts by rising cost to earnings and sales falling short of expectations and meanwhile facebook way subscription with no ads so exactly ash how does this work? >> kind of like streaming companies do today if you want to put up with ads you get it for free but if you want straight programming you have to pay a subscription fee. we've talked about about this on varney show chals would people pay for facebook if they didn't have to be inundated with adds and not have their information shared facebook apparently is looked a the this reare peteedly over the past, and has found that generally people who use facebook qowld not be happy to pay a subscription. but things have changed in the wake of the scandal in fact that we know that our -- you know details are being used far and wide by many people. they're not --
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pifing and could attract new people who would be more comfortable knowing that their information is not being shared. >> also if it is offered and you decline then it wases offered. right and in other words, so you know, ds a another purpose in that sense. >> because i believe for all of the anxiety out there the majority overwhelming of folks on facebook and instagram would say you know what let's keep the relationship the way it is. >> so i agree so would you pay for facebook, no she use it does now i think those who use it a lot probably depends on how much they're going to charge. but if it says nominal amount people may pony up. a bigger risk for these guys still -- particularly in europe right regulations, more taxes those kind of things and then individual user revolt i don't think we're going see that. but it does affect their business model how does this impact it going forward and getting that revenue that you may lose through a new business model an how many would subscribe. dges thanks a lot. now to iran, a former secretary
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of state john kerry reportedly negotiating behind the scenes. joining us now is christian white and tomorrower senior advisor and bush 43 administrations all right christian. i guess they call this shadow diplomacy i was blown away that individual american citizen trying to keep the iranian nuclear deal alive. >> it is pretty appalling conduct for former secretary of state one thing in john kerry were asked at a public venue if he should stay in the deal which he orchestrated bad deal or not. but to actually go and do what kerry did to meet with the iranian foreign minister this was chief diplomat from biggest adversary in the middle east he wet with with german and french as well to lobby against the position that -- is the united states position. >> so -- so where do we go from here an initially when this news broke saw a lot of reports that perhaps a violation of the logan act is, you know, term that comes up from time to time. what exactly -- what it is to john kerry or is he allowed to freelance like
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this? >> he'll probably get away with it unfortunately and prosecuted under the logan act that it is 218 years old no one has been qcted of it. but they threw this at mike flynn as effort of the justice department to take down new administration implying that because he hadn't quite entered office yet that his interactions with foreign no mats violated this law, john adams signed into law and you know what's good for the goose is good for the gangedder if law applies to republicans it ought to democrats as well. meanwhile we're seeing within iran itself a lot of upheaval right you have that real big attempt earlier in the year -- you know, there's a tremendous amount of social unrest, and i think this puts the iranian government in heads of the -- in a seriously awkward position because people aren't chaptering necessarily death to america. they're changting death to the itola. >> it's amazing and bloom is off the rose with metaphor from that 1979 revolution, the people in
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iran want they do not want clerical rule and donald trump was very quick out of the gate to support the people in iran who were challenginger that government. president obama didn't really do that. and that's an important part of the president's iran policy the strategy which we may see change come the 12th we'll get out of the iran deal or issue another extension. what about european partners we know that both angela merkel and macron they left came to washington. they made their pitch and both left and like maybe this deal would look different but negotiate organize at least asking the white house to make changes to it rather than dump it completely. >> right. it is sort of unclear what the iranians have already said they're going reject any change to it. so the seems it be a paper shuffling effort so they want extension and more time not sure what they can accomplish but equities with the europeans on how little they spend on defense and ore trade problems. so he had may choose to throw
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him a bone here and apply pressure somewhere else. i put my money on him getting out of the deal but no one knows until it is done. >> so let's say we get out of the deal ultimately back into a new deal create bid president trump. what would it look like? >> you know, it would getting out of the deal would remove the straight jacket put on us. we were applying very, very successful effective financial sanctions on iran before john kerry came and dialed that back for this terrible deal so going back to that and continuing to give voice to the people in iran. who want change, put iran put the regime on the defensive instead of being on the offensive against israel and against us frankly if you cause problems for them home that would be eater better policy. >> appreciate it. another self-driving car gets into an accident but this time it wasn't asson $fault equity have said higher the way the market looks up 85 equates to
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100 point gain and we have a huge session on friday would be interesting to see the market can pick up that momentum today. more varney, next. insurance that won't replace the full value of your new car? you're better off throwing your money right into the harbor. i'm gonna regret that. with new car replacement, if your brand new car gets totaled, liberty mutual will pay the entire value plus depreciation. liberty stands with you. liberty mutual insurance. touch shows how we really feel. but does psoriasis ever get in the way? embrace the chance of 100% clear skin with taltz. up to 90% of those with moderate to severe psoriasis had a significant improvement of their psoriasis plaques. most people were still clearer after one year. with taltz, 4 out of 10 even achieved completely clear skin. don't use if you're allergic to taltz. before starting, you should be checked for tuberculosis. taltz may increase risk of infections and lower your ability to fight them.
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phenomenal rebound since its earning report. meanwhile wamo self-driving minivan involved in a crash in arizona. ashley has details. >> in chandler a suburb of phoenix this was not the autonomist vehicles foment. there was a human driver behind the wamo vehicle but in automatic mode. what happened was a vehicle traveling in the opposite direction swerved to miss a collision and then create this side one by hitting the wamo vehicle as you can see significantly thankfully only minor injuries for both drivers. the question is what steps did the autonomist take prior to the collision to see how it reacted it happened quickly welcome amo parent company alphabet will look at data to see how the -- car responded but bottom line was it was not the fault of the -- autonomist vehicle at all little chance of getting of the way. >> so jim, you know, investment
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in the talk was for a while that hey, you know we have this -- stuff a year from now two years from now. all that has been pushed become and although accidents are part of this right, you kind of always know it is gipping to happen yet when they do they get big headlines. you don't wish for accidents but might be a helpful remindinger that -- autonomist vehicles software driven cars will be safer than human driven cars. there's, obviously, a lot of attention whenever there's a tragedy in the test phase here. but the software doesn't drink. it doesn't get in arguments with passengers, it doesn't stare at its phone when it ought to be driving so -- safer if. >> so i'm predicting that very soon in the near future in large city like new york, washington with d.c. it will be illegal for humans to drive. could you conceive of something like that? >> i think you could get there because it does -- i wouldn't be root aring for that but i can see that whatting because of a certain point one challenge that -- computer has is trying to guess
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what it rational is going to do. they don't act logically. >> i left the stove on. [laughter] no algorithm for that. hard to predict. so -- if you were designing perfect system you would say you want it all soft square driven but maybe -- ability for human it is to take over. >> problem is what if someone hacks into the system, chaos. another one thank you all very much. opening bell is going to ring are shortly the market is looking strong all morning long. and by the way, got a couple of potential takeovers we'll talk about when we come back.
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[applause] here it has you're listening to the opening bell the start the session may 7th, 2018 aside they populate the board led by caterpillar a nice move last week and stock which was downgraded after, of course, that bedak l of conference call during when they reported earnings two weeks ago riding wave above 70, disney another mega hit on their hands apple continues to serge after their earnings reports so we're watching -- an all time high for apple computer -- which, of course, just a couple of weeks ago everyone on wall street was negative on. i want to take a look at the s&p mow, the s&p 500, like to dow
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jones industrial average dipped below on inner is session move but rebounded strongly some people think that's the ultimate bisignal and nasdaq riding wave of technology stock, that has held up very well. the big news a big deal of the morning although there's several won nestlé signed a deal that sell worldwide and wall street like this is deal and now a report that investment firm management making it all cash offer for 155, 160 dollar range that's a 22% mover here. right at the open. joining us now ashley webster is jeff seeger james freeman earning season, has been strong stocks have been -- jeff what do you make of it? >> revenue has been strongest we've seen in seven years but here's what i see these -- we were in a high stakes gain before these earnings came out market priced to perfection and have been is great but they have not been great enough.
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to be the catalyst of the next -- >> even though the beats were bigger than everyone thought, on both top and bottom lines, it was relatively strong that wasn't goods enough? >> no, i don't think so, and the reason for that is when you have a market up 200% and all of these expectations, expectations need to be exceeded monoutility tally not just -- exceeded in a small fraction and that's what happened. >> i can understand that argument in january, late january even market peak but as these evaluations came down you know you have over 18 forward times to about 16 then i don't know where the pest white had to be so perfect all of a sudden. >> also keep in mind there's geopolitical things gong on which are confusing market and then you have the issue with the five biggest technology stocks which have -- dominated the market for these months now you're beginning to see some flaws in probable
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upward momentum of stocks has gotten -- >> because apple about $10 a share away from being a trillion dollar company -- does it get -- does it get there before memorial someday? >> before memorial someday is this i don't know if i want to say that but i think -- if you're looking at what the enthusiasm here is certainly you get a vote of confidence for brook shire hathaway and warren buffett company and they'll help you. they bought 75 million additional shares on the quarter. right, and you look at that had earnings announce the i think there was a fear coming into this earning season that maybe -- iphone sales requester going to disappoint an they basically expectation they also had good news for people on buybacks dividends and stock buybacks both they haves nice reports on their services, business, on wearable devices so -- not a lot of problems to see -- >> iphones decline wasn't as bad as everyone -- >> report on friday that iphone x is still most popular smart phone in the world the
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best selling smart phone in the world. and you know, listen 100 billion buyback that's unheard of. >> i have the unpopular when it comes to apple i know that and i'm taking a lot of heat but the bottom line is, i don't think apple has been particularly happy about the -- app and how it is performed i think that fact that they cut production in half, says that maybe, in fact, innovation as i've been saying all along needs to either pick up because rolling out these new versions of old products is eventually going to not bring them to where they need to be. >> like a train on the market cap in about two weeks. >> well -- let's talk about another tech controversial tech name right tesla shares now right below 300 and now remember it wasn't long ago close to 400 a share back in september, jeff are you a fan of tesla? >> no, and a i've called tesla a dumpster fire, a sham, for years now. and what i see with this elon
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musk has officially wandered off reservation with a lot of things he's saying now they're not going to meet production goals and they're going to need to go back to wall street and ask wall street for money and he has done this before. said they wouldn't need money and went back. >> $4 today what that news being public knowledge so as wall street upset about that? let me ask you this, with when elon muck gave that conference call and complained about these analysts who work for shorts in his miepghtd do you see in any validity i see like apple computer he was negative on apple had a couple of downgrades everyone went on tv said apple will miss. the stock dropped dramatically, a lot of people in the stocks sold even though it is now all time high. short position from 33 million to 43 million. wall street made a big app and you can make bet any way you want but they have voices on wall street in terms of analysis and in the media to talk
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these -- they do. and elon musk has right in the rights in the world to defend his and, and to defend against the short sellers and a lot of this momentum we're getting up is there's been a tremendous amount of short selling of -- of tesla, but the fact is still with the perception is, if he's not paying attention to his investors the way he should be. the fact is she should have addressed it on the conference call and not just discontinued those calls. >> jim -- well look when you're -- the price of your bonds is sinking you're going to have a harder time borrowing money i think that's just a basic fact that -- fact when you get a ceo on earnings call who doesn't want to talk about the numbers, with negative free cash flow, the, you know, this idea that they're now reducing investment i think that's -- if you've bought the blue sky vision. because it suggest that money is not going to be there -- >> we have to keep it moving because there's a bank of
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america now prepared to provide critical financing to remington outdoor, of course, they make what people call assault style rifles. just the week after bank the same banks that finance ifing, quote, military style firearm for civilian what's going on the optic zone is this bad or for bank of america or them saying you know what it's business an maybe they were overzealous? >> probably find out in the weeks to come. i would guess that possibly after their announcement which got a lot of praise in the media maybe they said you know we are bank of america. we are a national bank. we have if you look at their branch network you see a lot of dots in the midwest. a lot of place where is people probably think that -- financing a manufacture, firearm should not be looked at -- a lot of place in the country with people think the second amendment you know something that should be cherished. to get themselves into a corn or, though, because they agreed to deal prior to announcing that they would not provide --
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funding to gun makers so the problem is, that you start pulling out of deals you've agreed to and reputation in that market goes downhill very quickly. so they're saying we want to 7 banks giving remington 193 whatever it is million dollars to get out of bankruptcy. if we pull out, yes we can try to help them find someone else but we don't want to do that. >> my problem is not them legending to gun makers but my problem is them coming out and getting on bandwagon and pulling in all of that positive press, and then in typical big bank fashion, they go back on what they said and -- that's a problem. >> all right guys g.e. as reportedly warn withed that it could pull dormant sub prime business into bankruptcy protection. how big of a deal is this right now at this stage is? >> this -- has been seen by investors over the last few months it was a big surprise when people realized you still have -- this overhang from a financial crisis.
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>> surprise they couldn't get the fed to buy from from them. buying every one else's toxic death. odd at looking at them preparing for possible settlement and suggest that -- it that trump justice department has maybe not pulled back on the effort to shoot the wounded after the mortgage crisis that occurred during the obama administration so i think that's something to watch here. maybe, maybe still waiting for a turn in federal approach to this market. >> yeah. quell i think the fact that flannery is doing what he's doing but made major mistakes with g.e. but flannery is shedding bad businesses that -- got into at the very worst time so she's doing the right they think but there's going to be pain before turn. smtion well you know to your point they've made a lot of big mistakes all of a sudden oil is really taking off. i mean, it has been going up quietly but now 70 bucks barrel
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we're talking what will this do for underlying oil stocks? >> it will move up again a reflection on what's happening in israel and what's happening in iran. and the fact that there is geopolitical pension to move oil stocks up, i don't think it is over. the fact that that -- that saudi arabia is continuing to say that they're going to keep supply very tight. we're going to see further upside momentum. >> all right. let's leave it there. meanwhile another check on a big board again we open solid here dow up 140 points this is the way you want to see a market follow another big update particularly a 500 point reversal to the upside, of course, going to be a long session. and with a lot of moving parts including a let's take a quick look at apple very near all time high but getting near that 1 trillion market cap absolutely remark able massive short squeeze there, of course, wall street analysts being caught offguard. and then signed a deal to sell
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starbucks products worldwide. shares of starbucks looking strong all morning now starting to give some of that back. also i want to take a look at shareses of nestlé that actually going better on the news. i want to say thanks to jeff and james great stuff guys. really appreciate it. again, go to break one more quick look here, the dow up 144 points meanwhile, president trump's trade trip to china -- how it could hurt our farmer here and here also the question now is ultimately can this thing be fixed because any war has casualties i think, maybe even america farmers understand that. more varney, next. so lionel, what does being able to trade 24/5 mean to you? well, it means i can trade after the market closes. it's true. so all... evening long.
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ooh, so close. yes, but also all... night through its entirety. come on, all... the time from sunset to sunrise. right. but you can trade... from, from... from darkness to light. ♪ you're not gonna say it are you? a trip back to the dthe doctor's office, mean just for a shot. but why go back there, when you can stay home, with neulasta onpro? strong chemo can put you at risk of serious infection,
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hathaway in omaha, nebraska talked to warren buffett about his big bet on apple hit time high able to catch up with him before he went on stage and we were in this big crush. of shareholders and press, because he walks the floor for just a few minutes to see all of his businesses and he vowntded surrounded by security and media and he said look let's talk about apple here you tack huge physician 75 million shares add ad to what he already had, he absolutely loves tim cook called hill everything he does liz makes sense but i pushed him. you know i have to right. charles i pushed him on what some share hold reverse concerned about and that is that these products, the iphone, iphone 8, 9, iphone x, they tengd to be more evolutionary versus revolutionary, and here's what warren said about that.
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and every now and then there's another big change than the one before. he has an echois that's been world has never seen anything like this. >> who is to say, though, that some type of new communication comes through that doesn't involve a phone? it could happen. and then where are you left without any shares? >> you get on it call me. >> well he's a big believer, obviously, and apple. but -- e jeff earlier warren doesn't understand how to use an iphone he does have an iphone x he said that shareholder bought him one but it is kind of interesting to see that he now looks at it as a consumer products company not a technology company. 3 p.m. eastern, i've got them on so much more of warren buffett and vice chair charlie on what's going to happen with the iran deal would a bad headline about that because warren owns israeli company. it is metal working what will
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happen there and see with inflation and the succession plan he's 87 charlie is 94. they're two people he's just name to the board a runs insurance and greg able -- who runs the noninsurance and energy products -- he does not talk on camera are. we caught up with him over the weekend share is hold reverse dieing to hear from this guy charles they'll hear from him 3 p.m. eastern only on the fox business network. version those are best conversations again just so audience knows, that big sitsdown interview coming later on today from omaha on fox business. meanwhile american farm reverse concerned after china scales back orders for soybean and pork joining us now bruce with the investment purple so bruce ultimately -- we know that this high staked game of chess if you will. this probably was not unexpected. how does it play out from here and what is the ultimate end ghaim >> hey, charles it is
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great to be with you. i think that clearly there's anxiety, in the corn belt in the midwest. but clearly it just isn't about tariffs it's about regulation, it's about the changing efnghts it's about the products. when you're shing to china suddenly the s and a l price changes so it goes down so about fairness and trade and it revolves around a variety of those issues. >> and bruce ultimately these farmers understanding that president trump was elected to do exactly what he's doing right now in china thing gets lost in the conversation this is not something on a whim this is something he talked about about over and over and over again and got a rousing reception in the heartland got a rousing reception in iowa, and other places. so -- effort among china and media to change or give farmers to push back and become almost a de facto ally of china on this. is that going to scwork? >> yorng i don't think that's going to work because farmers
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realize and we all live in communities hit hard by trade every rural community in iowa manufacturing jobs we've seen arbitrary tariffs put in place. year before trump got elected, they put a 35% tariff on to grain while the cargo shipments were in route to china. you know, that's a great deal to talk to your banker about that the world court is going to solve that problem, right so we need to deal with this about and we need to deal with it long-term so it is understandable so people can count on real trade regulation and lack of tariffs coming into place that hit you hard when you least expect it. >> what's the low hanging fruit for president shi to keep the ball rolling because i think anyone watching this understands that any major deals would take a long time and crafting and even a long time longer time executing but few it is to be something to offer safe face with this country because any
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strong man wants to look like to their own people but also that create a major hiccup in our trade relationship. >> yeah. i think talking about the long-term opportunities to work with the u.s.. don't institute the tariff on u.s. soybeans, u.s. beef was announced with fanfare a year ago that they were accepting. you know, tiewk people this morning actually early there's a little beef going china today because of the -- speck changes, that happened and the challenge with bureaucracy actually getting cargoshipses into china. so free up those things actually accept u.s. beef. don't put the tariff on soybeans enaccept u.s. ethanol and open that up as degree of fairness on how you do business is a good faith effort. >> bruce thank you very much appreciate your expertise on this. great to have a conversation like this with strictly on facts. meanwhile let's check on the market you can see the majority now of the dow 30 stocks are much higher.
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led by caterpillar if you want to talk proxies for the so-called trade war caterpillar and boeing are the two names and both among the top five movers right now on the dow jones industrial average. and then there's this, a former "sex and the city" actress cynthia nixon gaining ground on governor of new york we have the latest on her story, next. this is no ordinary coffee. it's single-origin kenyan coffee from the nyeri highlands, 6,000 feet above sea level. but how do you really know that the beans journeyed to the port of mombasa and across the pacific? that you can trust they're 100% authentic? ibm blockchain. a smart way to track every step, ensuring this coffee did indeed come from 6,000 feet above sea level. and not a foot lower. ♪ ♪
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with td ameritrade®. >> investment firm elliot management makes all cash center and 160 range stocks up 24%. and then there's this, actor cynthia nixon seems to be getting momentum in new york and governor's race you have the details. account all relative first poll has cynthia nixon up against cuomo she was down 47%. now, the latest within has cuomo at 50%. cynthia nixon at 28%. still down 22%. but she's cut the deficit in half. they say that she's going after minority vote in particular african-american women. which is interesting because normally progressive do much better with white liberals than they do going after the minority vote. however, she seems to be gaining some traction although generally considered she'll be to cuomo perhaps not a -- >> 2810 black women vote will be
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the story already has been in alabama, in a couple of other places thanks a lot. connecticut businessman says conserve teff views got him uninvited from speaking at the high school veteran memorial joining us now is silent parter in ceo kyle. kyle, tell us exactly what happened here. >> sure, so the vfw invited me to be the keynote speaker in the emcee at upk078ing ceremony dedicating new foyer to three veterans who had died in the line of combat, and the -- my agent was doing all of the presentations for him and putting and content and then i got a phone call saying we are so sorry we don't know how to tell you this but we have to uninvite you because the superintendent said that students would not feel safe around you because you're a conservative. >> no way -- like you can't make this stuff up. i don't understand this is a school -- right that -- that are teaching -- the first amendment we would hope in inclusion and, i mean, i
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thought this was the theme of the day in the country. >> saturday irony in event that was never going to be political has been turned into something so controversial because the very men that were being honored for paying ultimate sacrifice to our country this flies in face of what they fought for. >> so -- did they provide did they say, you know, a student several students or -- in your miepghtd mind is this a faculty using students as a cover? >> faculty using students as a cover because i've had countless students e-mail me thanking me and school did say if the vfwments separate ceremony after school where students want to be around that i was invited to meet with the community so they turned around and said that's unacceptable we don't do participation trophy so doing a special award and i'll be speaking at that. >> classes on that at least man thanks a lot this is a shame. appreciate it. thank you for everything. hey, guys again we're open now for about half an hour trade. the market has been strong throughout. about are, huge 500 point
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reversal carries over today that's huge. more varney, next. . . they appear out of nowhere.
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charles: 10:00 a.m. here on the east coast. 7:00 a.m. on the west. you're watching "varney & company." i'm charles payne in for stuart. here is what we got for you this hour. white house dream team left china with no public signs of agreement. coming up the man who wrote the book, china's secret strategy to replace america as the global superpower. he will tell us what happens next. starting today, more restaurant chains have to post calorie counts in their food. one of the last obama rules. could this be a good thing for business. jon taffer joins us later this hour. we're watching this story very closely on "varney & company." the great tax exodus, moving from high-taxed states like california and new york to low ones like tennessee. we have new dramatic numbers.
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pc police on college campus. george washington university saying nickname colonials is offensive. there is a petition to change it. the next hour of "varney & company" starts right now. ♪ first a check on the big board. a big week, dow up 208 points. remember from friday's low, we're up 700 points right now. big tech helping. of course "varney & company" checks it every day. all green arrows there. apple hitting an all-time high. amazon on track to close above its record. caterpillar is your biggest gainer on the dow jones industrial average. the stock is starting to regain ground lost after that disasterous earnings call. aig falling after reports that activist investor carl icahn sold his stake in the company. there is the big deal of the morning. niece le sign as huge deal to
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sell starbucks product the around the world. let's bring in keith fitz-gerald, money map chief strategist. despite all the headwinds, all the worries de jure, we have a 200 point rally. what is going on? >> great follow-through from friday. money begets profits. for investors this is great stuff. charles: what is going on here? in the last two or three weeks, recession was a concern, inflation was a concern. stagflation was a concern. the strong dollar was a concern. the yield at 3% was a concern. the aggressive fed was a concern. headlines in washington, d.c. are a concern. none of those necessarily gone away. the concern de jure seems to fade. are we seeing fundamentals take center stage? >> i think you're spot on. this is all about psychology, charles. if those things are on the front page, you have to look to what is on the back page. the back page where ceo's are looking. they have profits, growth,
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expectations. all of which they're moving towards, not against. if you want to drive down the road looking through the rear view mirror, go forward, pick strong companies based on ceos in the forecast. charles: keith, i'm not sure how much technical work you do, one thing we've seen with the market since it peaked in january a series of lower highs. we're on cusp of turning around that would be a massive breakout through a downward barrier. the dow and s&p for a moment dipped under the 200 day moving average and came back. a lot of folks are saying from a technical point of view which also incorporates psychology maybe a sign we hit bottom for now. >> i buy that. the 200-day moving average the fact we dipped under it, bounced back up telling me there is lot of capital that wants to go forward and grow. this is all about computerized arbitrage. if they stick with the strong
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companies and fundamentals we talked about, that will be mostly noise. charles: caterpillar up four bucks, a huge percentage gain. major wall street firm downgraded them on friday. what is the disconnect? they downgraded apple and caterpillar. these names telling the public to sell are ones leading the charge? >> two things, charles. wall street says one thing, does another. they are actively trading against their clients. not uncommon for one side to say sell while the other side are buying. never do what a wall street analyst says. do what they do. if they're buying that is where you want to be concentrating. charles: talk about leadership. apple hitting all time high. very close to crossing a one trillion market cap. it is parlor game, people debate hoyle will be the first company to hit a trillion dollars. a week ago everybody gave up an apple. now it is leading the way. which one? >> i'm between apple and
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microsoft. apple is clearly winning the race. traders will push it over. if we get good earnings out of nvidia and 10 bucks is not that far to go. charles: 10 bucks is not that far to go in a name like this, we're seeing a bit of a short squeeze as well. we're more than halfway through earnings. they have been phenomenal, axe slautly phenomenal but we're almost done. you mention ad couple quick names set to report. when those names are done, a handful left, we have the jobs report in our rear view mirror, what could be the possible catalyst for the market the next month? >> i think worries go back to the fed. go back to the trade war with china is a possibility. i don't know what the dream team women come back whether empty hands or empty problems misses i don't know. it is about headline risk. people stay focused on earnings even behind the scenes that will beget more capital and higher prices. i'm a little skittish we're
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bouncing so much. we used have this volatility back in the day and not bling twice. charles: like we used to have to walk five miles to go to school. people don't remember the tough days, keith. big summit in china wrapped you. no apparent deal. thanks a lot, keith. i will bring in michael pillsbury, the 100 year marathon, china's secret strategy to replace america as the global superpower. michael, this is the perfect book for this time. i'm telling you absolutely the perfect book. i'm telling you a lot of people are focused on nuances of fair trade that they're missing the bigger picture and that's china appetite and ambition. >> well of course i agree with you. that is what was at stake on thursday in beijing at this first round of talks. looks like the outcome is pretty good for president trump so far. charles: so the administration says they want to tackle china on advanced technologies. this is what people don't understand. last year china says they will start working on a $12 billion
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complex to build the next generation of computers. apparently they have got one that will be able to break all of our military encryption, that will let their nuclear subs stay submerged three months without detection. that would be a game-changer. they're also funding these big companies like buy due and tencent to help them along with this. these kind of game-changers don't get talked about a lot. ultimately play a role what you talk about in your book? >> what i try to expose in my book is the dirty legal secret the foundation for all this progress in chinese science and technology is in fact the united states. a number of decisions were secret at the time, i got permission to declassify to put in the book, it began with jimmy carter with massive technology transfers, welcoming chinese scientists. president reagan of all people expanded greater. even under president trump we're exchanging these massive technology transfers with china.
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that is why the public opinion is so divided. frond page story in china they're calling upon our think tanks and corporations to weigh into this debate and shackle president trump and his initiative. so the chinese know who has been helping them. they want to continue this process. charles: that was my point i was going to say. to be quite frank with you, intellectual elites in the large corporations seem to be selling america's future down to make a few extra bucks. i say shame on a lot of them if they will not be straightforward. this went totally unreported, arm holdings, one of the biggest semiconductor companies in the world was forced in a joint venture to give 51% ownership to their chinese partner. these companies are still being strong-armed into forced joint ventures. if you give your partner 51% control that means they have access to all of your technology. >> what president trump is trying to do, the hero with me is ambassador bob lighthizer.
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i worked with him in the reagan administration 30 years ago. he has been one of the strongest critics of china. he put out this 250 page report, with details, charles, just what you're talking about. ripping off individual american companies, forcing these join ventures, all for the sake of technology transfer. some of which is legal. some of which is our own fault. we need to harden up our economy to make sure these investments in hard tech are harder to do for china but a lot of it is frankly not legal. it is in violation of the world trade organization. charles: of course i do want to point out arm holdings is a british company bought by softbank for $30 billion. that is not a u.s. phenomenon. >> that is a good point. we're not china's only victim. we're the main enabler of china. charles: it has to stop. no one pushes back. quickly on the north korean talks, how do you see it going to far? >> president trump's idea which i strongly support, link the north korean situation to chinese trade talks. these are really two parts of
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the same puzzle. so far it's going to be the month of june that we find out that both on progress in north korea and on the china trade talks. as you know, we don't really know how many chinese, how many north korean nucleares weapons there are, where they are located, how long they have been there. so a crucial thing for chairman kim to list, is it 10 weapons? is it 40? where are they? can inspectors go from the u.n. peacekeeping nyunts? this kind of thing. we don't know any of this yet. it will come out one way or another i think, charles, in the next month. charles: thank you. michael, thank you very much. congratulations on the book. >> thanks a lot. charles: check this out. nasa launching a spacecraft to mars this weekend. it took off from vandenberg air force base in california. this is the first interplanetary mission to depart from the west coast. it will reach mars in november. it will study the plan net's interior.
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scientists hoping what they find what mars was in the past and hopefully accommodate human life. president trump tweeting this morning that the russian witch-hunt losing credibility. if that is the case why is the media so obsessed with it? we're asking that question. starting today restaurants have to post calorie counts on men use but could that be a good thing for business? jon taffer is with us later this hour. you're watching second hour of "varney & company." ♪ your company is constantly evolving. and the decisions you make have far reaching implications. the right relationship with a corporate bank who understands your industry and your world can help you make well informed choices and stay ahead of opportunities. pnc brings you the resources of one of the
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nation's largest banks, and a local approach with a focus on customized insights. so you and your company are ready for today.
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charles: all right. let's check on the big board. the dow up 182 points. we crossed the plus 200 barrier a couple times. pretty strong start to the week after a remarkable session on friday. i also want to check on the
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price of oil. west texas intermead yacht well over $70 a barrel. obviously will have a impact on gas prices very shortly. also on gold, a lot of speculation about inflation and whether or not it exists. and now this. president trump tweeting this this morning, this one on iran and john kerry, quoting, the united states does not need john kerry's possibly illegal shadow diplomacy on very badly-negotiated iran deal. he was the one created this mess in the first place. ashley. >> that says it all. we know now that john kerry who was responsible for this deal in the first place last couple weeks has been talking to foreign minister of iran. he also met with the foreign minister of germany. he has been on the phone with leaders of eu, all discussing how can we salvage this deal. awful. it was a bad deal to begin with, here he is going behind the back of the white house, trying to weaken our position basically in an evident to find a way to save this deal because as we know, there is a may 12th deadline
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the president said he will decide whether or not to stay in. charles: absolutely remarkable. ashley: it is incredible. charles: does he see its it as his baby. ashley: i have no idea. charles: france, germany, like to keep the deal in place acknowledge there must be major tweaks. ashley: there has to be. there is no access. no way of verifying what iran is doing. how this was ever done in the first place, i don't know. charles: wow. ashley: to your point, maybe it is salvageable if they make major concessions. iran says they will not do that. why john kerry is trying to save this really bad deal i have no idea. charles: shadow diplomacy. there are other names for it, by the way. ashley: yes. charles: now there is this. president trump tweeting a lot this morning about the mueller probe. here is one of them. the russian witch-hunt is rapidly losing credibility. house intelligence committee found no collusion, coordination or anything else with russia. now the probe says okay, what else is there? how about obstruction for a made-up phony crime? there is no o. it is called fighting back.
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joining us, host of the "mediabuzz," howard kurtz. why is the media so focused on the mueller probe? >> absolutely no question journalists are more fixated on this than average american. take the michael cohen, $130,000 payment. if the white house doesn't want media talking about it, don't put rudy giuliani, on "hannity," "fox & friends," judge jeanine, to confirm that the president personally reimbursed michael cohen for the statement and bunch of other things and issuing clarification, he guaranteed with that move that that would be a big story last couple days. charles: if rudy was not assigned to the team, you think this story would have gone away? i don't think so. all some newsom networks talk
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about. president trump is fighting back. in his mind the only thing he can do, if the media will find him guilty of some crime they can't even pinpoint, maybe time for him to fight back? >> i'm not saying the stormy story would have vanished we're all sick of seeing michael avenatti on the news. there haven't been any major developments lately. you have giuliani talking about it. and you have that leak by people close to the trump legal team, not the special counsel's office, 49 questions, notes they took they think mueller will ask. that set off media debate will there be a sit-down. president seems to send signals while he wants to sit down he doesn't think he will get a fair shake from mueller. that is story as well. i will agree totally this has gone on a very long time. there is almost no evidence of collusion. mueller apparently is
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concentrating on obstruction. that the press, many elements of the press are clinging to this, because they think it will be the thing that will take donald trump down and damage his presidency and so far it hasn't. charles: on friday, you have one judge in the paul manafort case who really sort of gave a serious public rebuke of mueller and trying to say are you guys seeking some form of justice or are you going specifically after president trump? i thought that was remarkable. >> i have almost never seen anything like it. i thought that story was somewhat overplayed. here a federal judge, leave aside the intricacies of kind of bank fraud or money laundering which paul manafort is charged, basically telling mueller people, you don't really care about the bank fraud. you're using it to squeeze manafort to get him to turn against a president he once worked for. that kind of, we'll see what happens in that case but that kind of criticism really does back up what the white house has been saying about the special
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counsel being a little out of control. so i thought that was reported. it was legitimate news story but i thought it would have gotten a lot more emphasis were the press not so dug in against trump on this entire mueller investigation. charles: yeah. howard kurtz, thank you very much. we always appreciate it. >> good to see you. charles: another benefit from the president's tax plan? state has were struggling to raise money now seeing more revenue even with lower taxes. there is name for that phenomenon and i will tell you what it is next. ♪ i am an independent financial advisor. for our firm, it's all about trust and transparency. trust that we do what's right for our clients,
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charles: online pet pharmacy reporting higher profits. the stock is taking off on the news. now this. another beneficiary of president trump's tax plan, state budgets. deirdre bolton joins us with more. >> yes, some states, believe it or not are going to have a surplus. minnesota is one. utah is another. they talk about the strengthening job market. the fact that more people are working. so more people are paying taxes and more people are working for higher wages. therefore more taxable income. connecticut as well. connecticut is little tricky. it may give money back to state residents. connecticut says even though we're running $1.3 billion surplus looks like for the fiscal year. we're also concerned some are one-off instances. a lot of hedge fund managers, who along with the trump administration tax plan signed into effect, 2017 in december, brought back money from funds overseas. charles: right. >> that was one time.
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capital gains taxes a lot of people in connecticut sold stocks purposefully before the end of 2017 to take advantage what became a capped level. some are one-off. at least in utah, minnesota's case, they're not too worried. connecticut is worried. charles: connecticut should be worried. they have very high taxes to begin with. i find it phenomenal. this is sort of in my mind the essence of supply-side econmics. >> it does seem to be working although, yes, in these states, there are a lot of people saying okay, people doing well and investing, this goes back to the capital feigns focus, there is a little bit of concern, hey, we're in a nine-year bull market. what if the stock market becomes more volatile, do some of the gains last? honestly budget directors from minnesota and utah -- charles: that is minnesota and utah. >> that's right. in middle of country you're seeing to your point it is working. charles: thank you very much. appreciate it. >> sure thing. charles: check this out.
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these passengers didn't sign up for this for sure. water flowing down the walls and pooling in the hallways of a carnival cruise ship. ashley: great. charles: more cruise horrors. we'll tell you more what happened next. ♪
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♪ ashley: it's getting better. charles: yeah, absolutely. ashley: that one is for stu.
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charles: we play our beatles music whether stuart is here or not. we'll get earth wind and fire interjected here as well, especially today. we're up nicely so far. quick check of the big board. dow up 200 points, near the high of the session being powered in part by the big tech names. take a look at apple, folks, approaching that one trillion dollar market cap there. disney, its of the of "the aven" fastest moving film to billion dollars. one of the last obama care rules is in effect. our next guest says it is good for your health and business competition. come on in, dr. marc siegel, medical news correspondent.
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will that help business? >> i know that is counter intuitive, to you, one of the best business people i know, smartest. here is why. i will go into the bar anyway. you will have jon taffer on after this from "bar rescue." i will go into the bar anyway. why shouldn't the bar have kale chips or carrots instead of potato chips. why shouldn't choices include salad? when you go into starbucks or dunkin' donuts, you don't see the calorie count, let me have no sugar latte. let me have a blueberry muffin low in calories. the choices you make are bert. more competition for more people to bring healthy choices to the menu. i think this works. we have an obesity epidemic in the united states. 40% of us are obese. that leads to medical complications like heart attack and stroke. charles: do you really believe it will change? if i walk into dunkin' donuts, you don't have to give me a calorie count, i know what i'm in for.
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>> i don't think so. i think you think you know what it is for. every time i look at it is more than i expected to be. if i was in the gym, maybe i want something else. the other thing dr. gottlieb who i interviewed from fda is pointing out, charles, just small changes matter. even if you save 40-calories a day, six pounds a year saved which could be the reason you don't become obese in the first place. i think this works. i think it has worked already. we need to extend it more. i think you saw it with mcdonald's. mcdonald's put salads on the menu. people actually ate them. charles: i will say, going back to the first company did this on their own without being forced by the government was panera bread the stock went up significantly in the couple years afterwards. it may not necessarily curb things, it may give us more choices but ultimately i'm not sure, for the smaller restaurants, i know that was something of a pain to redo all of their men use. >> so here is the point. fda will use low-cost menu
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options. b, i want to use your lingo. i think the demand is already there. americans are health-conscious. give us demand and cite the supply they want which is healthier options. i don't think it will be a big costly item. there is the point about piecesa. pisa is a huge problem. 20% of americans having a piece of pizza every day. pizza it is hidden. loaded with fat. loaded with carbohydrates. pizza makers say every different topping i have on there, every different topping will have to have a different menu? no. you will be able to have a range of menu options. charles: calorie onerous than initially thought? >> exactly. there will be different menu options. you could say, here's the rage, two mushrooms all the way up to five mushrooms. it will not be that many men use. charles: all right, dr. siegel. >> i'm all for it. i'm 100% for it. i think it is big public health initiative. good to see you, charles. charles: bring in jon taffer, the "bar rescue" host.
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sir, you heard what dr. siegel had to say. what exactly does this mean for business, particularly the ones you're involved with? >> i think there are two things to consider, charles. one is the competitive advantage. i was in a vegan restaurant in las vegas the other day has other items. vegan accounts for 20% of their menu. in theory, if restaurants post this information and do provide some healthy options, their market share of those seeking healthy options would just increase. so there is a competitive advantage because you're following the trend of the marketplace. the cost isn't that high. and statistically i agree with what marc was saying. the average person seeing it in writing in front of them will gain 30 to 40 calorieses a day. that is pretty significant, charles. i don't see it hurting the industry. i see it creating more transactions if we do it well. i see us creating an environment where people feel better what they're doing. charles: to be clear the v on your hat isn't for vegan, right?
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>> no. the v on my hat is for the vegas golden knights off to the stanley cut. i'm not taking this off until they win, charles. charles: got one more. listen to the heartland brewer ceo, john had to say on the show last week. >> a bomb fell on this city in 2015 because the state imposed six minimum wage increases in a three-year period. we absorb that they have taken control of our payroll. in the restaurant business we have a lot of employees. our biggest controllable expense has been payroll. and now it's not. >> the issue here, john, in new york city, a lot of restaurants are starting to go out of business. new york, connecticut, tri-state area, it is maddening because they are been forced to increase minimum wage, and push a surcharge to stay in business.
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what is your reaction. >> i don't know any business that can sustain a 50% increase in the labor costs. that's huge. in some cases it is greater than that when you sustain an economic impact that significant, either you will go out of business or you will have to take the risk to pass it to your customers. passing it to your customers is a heck of a risk. we're seeing the impact. customers and restaurants are going down. we have lost many in the state of washington. we lost i believe about 1000 in manhattan. this is not smart. this is not good for the economy. when those restaurants close those people lose their jobs. charles: it is interesting, too, all of these places, these jurisdictions where they do things like this, they all have highest income inequality. some are suffering massive, massive boughts of whomlessness. it seems to backfiring big time. perhaps at some point they will have a ephiphany, there will better way to help people. >> i agree with you.
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help them with dignity where they don't lose their jobs as the end result. charles: keep rooting for the team. keep that hat on. >> will do. ashley: go predators. charles: a nightmare for passengers on board a carnival dream cruise ship when water begins flooding in the halls. kristina partsinevelos with us. what happened? >> looked like a scene from the titanic but sprinkler pipe broke. it was one part of the deck. 100 passengers were affected. when you see a video, with a passenger writing please pray for our lives under the video there is fear going on. this happened 6:00 p.m. on thursday. carnival cruise going around the caribbean. they worked to clean it up. it took six hours. by 12, some carpets were removed. they cleaned everything up. this is a company that really turn ad pr disaster around. they reacted immediately. they didn't push everybody out
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of the way. they were smiling for the camera. they within 24 hours they refunded everybody on the floor. they didn't discount the fear factor even a small portion of the ship. they made this pretty much a big deal. get 50% off the next cruise. there is a perk there. charles: they deal with a lot of bad publicity, food-borne illnesses putting out larger ships all the time. ships the size of -- ashley: cities. charles: yeah, cities. you're feeling they get the pr aspect of these disasters right? >> that's correct. they have to move quickly. not only pertaining to them. absolutely every single company out there. they need to move within 24 hours. if they don't, passengers take online and show the complaints, you could risk losing millions and millions of dollars. that is part of the reason. they praised customer reaction of the carnival is taking a little bit of a change. even if we bring up the stock,
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it hasn't been doing as well. coming closer to an 11-year, 11-month low for the company. that is partly because of pressures from oil prices. long term gain could be china as well as baby boomers retiring. charles: baby boomers, they love their cruises. >> they do. charles: i met people been on like70 cruises. ashley: insane. have you been on a cruise. charles: i've been on two. ashley: do you like it? charles: i like it. i don't like big ships. smaller boutique size. >> norwegian is competitor. charles: norwegian's stock has done really well compared to the rest. >> they're cheaper booking on it from earnings perspective. charles: no one wants to feel like you're in the poseidon adventure. you don't know that but it was a scary movie for me and ashley. coming up, thousands of workers at university of california hospitals are on strike. they want more money. we'll head there in the next hour. first we've been covering this story closely here on "varney," the tax exodus.
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people picking up and moving from high-taxed states like california and new york to low ones like texas and tennessee. find out how many people are making the move. it will boggle the mind next. ♪ we had long deployments in iraq. i'm really grateful that usaa was able to take care of my family while i was overseas serving. it was my very first car accident. we were hit from behind. i called usaa and the first thing they asked was 'are you ok?' they always thank you for your service, which is nice because as a spouse you serve too. we're the hayles and we're usaa members for life. see how much you could save with usaa by bundling your auto and home insurance. get a quote today.
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♪ ashley: former trump advisor christian whiten says there is revolt brewing in iran and president trump can tap into that as he negotiates a nuke deal. take a listen. >> it's amazing. the bloom is off the rose, metaphor from that 1979 revolution. the people in iran do not want theocracy and clerical rule. donald trump was very quick out of the gate to support people in iran who are challenging their government. president trump didn't really do that. that is an important part of the president's iran policy, strategy, we may see change come the 12th. we'll get out of the iran deal or issue another extension. into retirement... and a little nervous. but not so much about what market volatility may do
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to their retirement savings. that's because they have a shield annuity from brighthouse financial, which allows them to take advantage of growth opportunities in up markets, while maintaining a level of protection in down markets. so they can focus on new things like exotic snacks. talk with your advisor about shield annuities from brighthouse financial- established by metlife.
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charles: research firm telsey advisory group setting a price target of $1900 a share for amazon. that might be the biggest on the street, highest on the street. people are leaving high-taxed blue states for low red states. economist art laffer says in the next three years 800,000 people will leave california and new york. another 500,000 will leave connecticut and new jersey and minnesota. ashley: wow. charles: come on in paul chabot.
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music to your ears. we've seen the exodus over the last decade or so, still implementing these same policies. >> it is. it's absolutely insane but it is great for our business. last 10 years 3.5 million people have left these blue states for red states. our business has been around now for about a year at conservative we can not keep up with the demand. going to your point, looking at states like california, new york, what they're doing to their people is absolutely astonishing. my mother retired as public school teacher. moved from california to arizona. by the way happy mother's day, mom, charles, thanks for letting me throw that in. what we're seeing a dramatic shift in california and other blue states. california you have largely two classes of people now. coastal liberal elite and inland region working poor. the middle class and small businesses are vanquished and moving to red states. charles: i think homelessness crisis in california, washington state, new york, underscore that sort of dickens-like tale of two
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worlds, right? the ultrawealthy and ultrapoor all living in the same confines. paul, talk to us a little bit, you saw this happening, people talked about it for a long time, but are you surprised where people want the help of your company to make this move. >> you know, i am. my wife and i started this business out of our home. moved into an office now with over 100 agents across the country. we can't keep up with the demand. not just simply word-of-mouth, charles. many people, families felt this they have looked for the mechanism to help them. that is what we do. we help them sell their home, sell hair house in a blue state, buy in a red state. we also help them find ememployment. the other key part, we want them to get engaged in the states they move to. when they move, realize, understand the policy implications of those blue states and, hopefully make sure those same consequences don't happen in these red states. charles: you know it is
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interesting you bring that because you have got states like georgia, for instance, who are benefiting from reverse migration. people leaving cities like detroit and philadelphia. they're fleeing these cities for the reasons that you just point out but they go to georgia, vote the same policies that created unhealthy living environment for them in the first place. >> yeah. that has been concerning i think. however, i will say about 90% of the folks that are moving from us are middle-class families with very young children. a segment that has children in high school, waiting for their kids to graduate. but then you have a huge segment of retirees. they're not just moving to southern states like texas, tennessee, south carolina, florida. they're moving to idaho. they're moving to arizona. they're moving to a lot of different places. tell you what. here is how they feel. i can sum it up like this. because they all feel the same. it is like leaving a bad relationship, charles. and that bad relationship is that blue state. when you get out of that relationship and move into a
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better one you realize how bad that previous relationship was. you're so glad you're out of it. so people are making the move. they're excited. they're happy. quite honestly their quality of life is amazing. schools are better. lower crime. great-paying jobs. the american dream how it should be. charles: paul chabot. congratulations, happy mothers day to your mom. >> thank you, charles. charles: a petition at george washington university to change its nickname trot colonials, because apparently that is now offensive. we're all over that one. ♪
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not the other way around.
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charles: now this. online petition george washington university to change the school's mascot name from colonials. students are saying it is offensive, and quotes, glorifies the act of systemic repression. cabot phillips. campus cabot, they get crazier and crazier. >> anyone who think the
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politically correct police would stop at current culture. they are going back through history and through time. charles: they have been doing that some time, the colonies, how could you find fault there? >> when you apply the same standard of today throughout history of course you will find things you're eve fended by. universities removing statues of thomas jefferson they had flaws. these are flawed men and women who did incredible things. learn about them. rather than reof mooing them entirely, analyze the facts? this is nothing new. we covered at leadership institute how students are consistently freaking out over anything. we saw at holy cross university, they removed the mascotte the crusaders because it was too offensive and islamophobic. it invoked imagery of the crusades. this is not the last. the petition has a few hundred signatures from students offended by the idea of the colonies. charles: you said flawed men and women. that is redundant. if you're human being you are flawed. if we go back and examine
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everybody's heroes, we'll find certain flaws that you know, history is judged at the things that they achieve for the overall good though, superseded their own personal flaws. >> right. charles: and you know, at some point this starts to backfire i guess on themselves. who would they replace these names with? >> there is no one to replace them with, if you have the standard only examine people that we deem to be acceptable. we saw an english course at yale recently where they are removing certain white male authors from history because there are too many white male authors from the renaissance era. replacing them with women and people of color. if you look, how about you judge people based on body of work, not just on the color of their skin. ashley: you're rewriting history. >> this is rewriting history when you move or replace people based on things beyond their control or flawed acts. charles: the goal is to have meritocracy based on abilities and achievement which brings me to another one. this is the third year in a row
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apparently ivy league schools have not scheduled a conservative keynote speaker at commencement ceremonies. six prominent liberals are scheduled to speak. how do they justify this? talk about a world of collusion? >> well the universities, they look what happens whenever a conservative speaker comes to campus. there is riots, protests. people are offended. they shout and scream. look what happened to mike pence after he spoke at university commencement. we don't want to do this we'll continue to bring the same status quo liberal speakers, they know conservative students will never protest. conservatives are respectful when they come and disagree with. universities keep this trend up. it is doing disservice to the students when you continue to push the same ideas, the same people from the same perspective, you never grow. you don't have your world you expanded. they're doing a disservice to the students. ashley: what is so falling is the fact that -- galling this is the supposed to be the bastion of free speech and exchange of
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ideas. what are they show frightened about another point of view? charles: universities were the at forefront of corageous moves that pushed against the norm. ashley: sure. charles: went up against popular opinion. and now just feels like to your., that their conduct is sort of just saying, pigeon holing our nation and youngest minds out there. >> what it does, it inhibits students learning to process things they disagree with you. largest voting block in america, generation, v, they are only presented with one side. they are convinced that is the only way you can think if you're a young person the we're trying to break the mold. shine a light on it. let people what is going on. let taxpayers -- charles: any ivy league school that will buck this trend. >> last one was dartmouth three years ago. people will not buck the trend until they see public pressure going on them. charles: terrible stories, but good you're inforring us. all right, folks, more "varney" after this.
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charles: it's eight a.m. in california, eleven a.m. in new york. here's what's new this hour. california's attorney general xavier becerra trying to dismiss the lawsuit challenging the sanctuary state law. can he dismiss the revolt that's happening there? be also president trump wants our border protected. he is demanding congress to secure the border in an upcoming continuing resolution to fund the overall government. can it get it done? also, a cool new technology is doing something mark zuckerberg told politicians wasn't possible. we have the company that allows you to not only own your own data, but also get paid for it. sounds great? you'll get it this hour on "varney & company." of course, the biggest story always is your money, so get ready for the third hour of "varney." ♪ ♪
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charles: all right. check on the big board as we always do, the majority of the dow stocks higher. the overall index up 182 points. stocks up triple digits on the dow this morning. this, of course, after that big gain on friday where we saw a 500-point reversal off the bottom. want to bring in fox news contributor scott martin. scott, have we hit some sort of inflection point, because, you know, there was a lot of chatter friday morning about going under that 200-day moving average, the bottom falling out, that this was the collapse, and all of a sudden here we are. >> yeah. we've heard that a lot of times, charles, in the last several years, right? this is it, the bull market's over. and every time the market comes back. and, you know, i'm not one to get fooled over and over again. i have been fooled a few times in my career, but i'll tell you, there are some flags that the market's putting in the ground that i believe are worth taking. and i think too, to your point about the data on friday, this
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is kind of that number that was good for everybody. there were enough jobs created to make sure the economy is still growing at that pace we've seen since trump took office, but also the inflation numbers as far as wage growth weren't too bad. we have this growth, but it's not a big inflation worry and, therefore, rates probably won't continue to go to the sky and, therefore, you can continue to buy stocks. charles: yeah, it's interesting because i guess, you know, in hindsight we could call it a goldilocks summer, but when the numbers came out, 164,000, less than expected. 2.6 year-over-year wage gain, you know, ironically not enough for some although if the number was 2.8, for instance, or 2.9%, we would have heard that it was inflation and that the fed would be aggressive. and we certainly, i think, would have had an uglier session. >> yeah. and i think that's really the key player here, what's the fed going to do with some of these numbers. and, you know, you too, we talked about gdp numbers have come in softer than we thought they would be at this point of
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the year so far. the fed can play their cards a little easier, and that's really what the market's keen on here. the fed is not going to be this hawkish take on things as maybe it was looking like they were going to be at the start of the year with jay powell coming in. hey, rates can stay around here, 3 or so percent on the ten-year, but that means earnings growth in the s&p is going to continue, and that's why you need to own the s&p stocks. charles charles more specifically, you've been bullish on big tech. are you still that bullish? >> yeah. charles, you know, we're continuing to add on tech where we can, you know, with cash that we have available here for our clients. admittedly, we've added a lot this year as the pullbacks have happened because, to me, that's where all the earnings growth is, man. that's where the cash flow is, that's where a lot of the exciting businesses, entities are. for us when we look forward 6, 12, 18 months, that's where you want to be, in tech land. those are great areas to be, and if you expect, as we do, the
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economy to keep growing and these entities to keep dominating. charles: what do you make of warren buffett buying 75 million shares and probably buying more as we speak of apple? what does that say about someone like that who always avoided technology? >> i'd say it's about time, warren, which i guess we're on a first-name basis now. [laughter] i'll tell you what's interesting, lee coming to the table, which is -- he's coming to the table, which is good. he's been focused on consumer names, which i guess apple is. it's good to see warren in the car on that one. but me, yes, i think that's a great name to keep accruing because we just saw the earnings report, it looks good. charles: all of them are more consumer discretionary names than tech names perhaps. hey, i've got one for you real quick. oil now, west texas intermediary, up $70 a barrel, the highest level in nearly four years. is this going to be a threat to the market? >> you know, at some point it will be. we've seen the comments out of
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opec, they want higher oil prices. production numbers are up in the u.s., so is demand. we haven't been playing directly except through mlp, 1099 income, that's a naming to look at. but it's not all about commodities. copper, dr. copper needs some serious medical attention because copper's been very weak. if you're looking at the commodity space in general, i'd look at oil aside from some of those other ones that are out there. charles: scott martin, you're the best. thank you very much, buddy, appreciate it. >> see ya. charles: high housing costs are driving people out of california. in fact, in the last two years one million people left california than moved in there from other states. joining us now, larry elder, syndicated talk show host with salem radio. larry, people just can't afford to live in california unless you're super duper rich and have a very successful radio show, you can't afford to live there.
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[laughter] >> well, there is, as you pointed out, a net outmigration of native-born californians to lower cost states like nevada, texas, florida. you're also seeing the same thing with connecticut and other states like illinois that are badly run. here in california there isn't a single republican elected statewide in the entire state, nowhere. and in the senate there are supermajority democrats, in the assembly democrats have a supermajority. 13.3% is our tax, the highest tax in the nation. you add it all up with the housing prices, and people are leaving dodge. charles: the highest tax, the highest gasoline, you know, a homelessness crisis that's growing by leaps and bounds, and, you know, it's -- even here in new york, larry, when i walk in the morning, i'm looking at buildings being built where apartments will sell for a million dollars in front of a construction site i'm looking at people living in cardboard boxes.
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and you're wondering how does this continue? is there a psychology to the people who eventually have to move out of california, why do they keep voting in the same people? >> that's a very good question. the state is, the latino population is growing. and if you poll the latino population in california, they are okay with the sanctuary state laws. they absolutely hate the wall, and i don't think there's any californian, mix figure who's less popular than donald trump except maybe charlie manson. this is how this place is run. a lot of people are leaving and taking their money with them. 600,000 households account for 50% of the state income taxes. and many of these people are saying to hell with this, especially since the last tax cut bill won't allow you to deduct state and local taxes. charles: right. i've got another one for you, president trump says kanye
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west's support is making a big difference. >> kanye west i must have some power, because you probably saw i doubled my african-american poll numbers. we went from 11 to 22 in one week. thank you, kanye, thank you. [cheers and applause] when i saw the numbers, i said that must be a mistake, how can that happen? even the pollsters thought there must be a mistake. [laughter] no, we've come a long way. charles: all right. [laughter] larry, your reaction. >> well, what he's talking about is a reuters poll, and he sort of misstated it. among black men it's doubled, among blacks altogether, it's increased about 50%. but that's still tremendous in just one week with people like candace owens, a young lady who chastised black hecklers and told them you guys are losers. listen to me, work hard, stay focused, you'll be just fine in 20 years. kanye west then said something about her, that also went viral.
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and what's happened is the stranglehold, psychological stranglehold the democratic party has on the mindset of young blacks, i think, has been brokennen. now you can publicly say i support president trump and not have the same kind of social wrapt that you might have had a couple of weeks before kanye west and candace owens came out. charles: right. larry elder, thanks so much. >> you got it. charles: facebook is reportedly looking at unveiling an ad-free subscription option for its site. no word yet on what it would cost. also want to check on starbucks this morning, nestle paying more than $7 billion to sell starbucks products around the world. by the way, starbucks barely up, but nestle's shares have been higher all morning long. also coming up, former health and human services secretary tom price says people on obamacare will likely have to pay higher premiums because the individual mandate was repealed without a full overhaul of the system. betsy mccaughey will help us break it all own down. -- all
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down. thousands of workers at the university of california hospital, they're on strike. they want more money. we're on top of that story as well. and it's the revolt against the revolt. california attorney general xavier becerra trying to dismiss the trump administration's lawsuit challenging their sanctuary city laws. it's a jam-packed hour. stay with us, the third hour of "varney" continues. ♪ ♪ ♪ most people come to la with big dreams. ♪ we came with big appetites. with expedia, you could book a flight, hotel, car, and activity all in one place. ♪
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charles: thousands of workers at universf california hospitals are on strike right now. they want more money. hillary vaughn is live at ucla with the details. hillary, now, who's taking care of the patients during the strike? >> they had to outsource, charles, so they're bringing people from outside the hospital system into the uc hospital system to coffer the people -- to cover the people who aren't
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showing up to work today. well, they're showing up, they just are on strike. over 50,000 hospital workers are not showing up. five university of california hospitals up and down this state to send a message they don't want their jobs being outsourced, and they also want more money in their paycheck. most people here today are are hospital service workers, cooks, custodians, technical workers. while they are out here the uc hospitals have been forced to reschedule some surgeries and bring in outside workers to fill in. now, i'm here with reyna, you are a nurse assistant and also a monitor tech. how many shifts have you skipped to go on strike? >> three shifts, 12-hour shifts. >> is and what do you want out of all of this? >> well, we want our uc system to have the equality for every worker, every single worker or and also to stop outsourcing our jobs. >> by you not showing up today, there's someone filling in for you.
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they had to outsource. do you think that you're kind of forcing the situation to happen that you're fighting against? >> actually, we have given the uc ample time so that they can do safe staffing as well. >> and there are surgeries that have to be rescheduled and people inside this hospital that showed up for a surgery today that aren't getting it. are you worried that lives could be lost because you're out here, not inside at work? >> not at all. that's why we have given the uc system ample time so that they can do safe staffing. >> so, charles, the bottom line here is that a lot of these people aren't at work today, but there are people who showed up for surgery that aren't getting it. charles? charles: wow. thank you very much, hillary. want to stay on this story now, bring in betsy mccaughey, author of the book "beating obamacare." betsy, your take on this strike. i mean, it gets a little worrisome when you say, hey, we're bringing in the scabs to do medical work. >> well, that's right. and for a long time there was a
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principle that public employees should not be able to strike, because they do put the public at risk. charles: and of course, though, that's the only bastion of union sport that's left out there -- support that's left out there. >> that's right. it does imperil patients because continuity is so key in providing medical care. the same staff every day, knowledgeable about the conditions of the patients, knowledgeable about the conditions within the hospital. so bringing in outsiders makes it very risky for patients. charles: you know, i see news like this almost all the time out of the u.k., particularly more recently. i mean, it's an unmitigated disaster, what's happening there with surgeries being put off, lives in jeopardy. there's been some apologies, but i don't think people here understand that this whole idea of this universallal medicine that it's some great way of going about things, it doesn't work anywhere else in the world. >> well, the u.k. system is really in collapse. if you want to see a system with the lowest breast cancer survival rates in europe, go to
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england. women aren't getting ma'am frames, people aren't getting -- mammograms, people aren't getting treated. it is not a place to emulate. charles: who knows where we'll be in the future because there's still parts of this obamacare that are in law. in fact, former health and human services secretary tom price is warning people on obamacare are likely going to have to pay higher premiums because the individual mandate was repealed. do you believe that is going to be the case? >> that is really -- [laughter] such a minor point. because let's look at it, charles. between 2013 and 2016, health insurance premiums in the individual market increased 100% because of obamacare. then in 2017 they went up another 38% for silver plans, 19% for gold plans, and they're predicted to go up another 19% this year. so we have consumers in that market facing premiums that have almost tripled, almost tripled because of obamacare.
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and tom price is saying, well, eliminating the mandate? that is such a tiny part of it. of course, it might inch it up a little, tiny bit. but the fact is the so-called affordable care act wasn't affordable. charles: right. >> taxpayers have shoveled billions in the back door to supplement the insurance companies, they've lost $3 billion a year trying to sell these unpopular plans, and consumers say we can't afford it anymore. the deductibles are so high that even if we paid the premium, we never get anything back when we have to go to the doctor. charles: real quick, is there still an opportunity, do you think, to completely repeal obamacare and replace it with a more reasonable plan? >> absolutely. and in the fall congress will be looking, as they technically approach the time for another, quote, reconciliation bill where they need simply a bare majority in each house to pass it. they'll be attempting it again. take that to the bank. charles: i will. thanks a lot, betsy mccaughey. real quick, a check on the
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price of gold. it's relatively unchanged. want to look also at bitcoin, having some success here in the last couple of days but negative comments by warren buffett and charlie munger, of course, didn't help. but it's made a big move off the recent lows. also we've got to look at gas prices nationwide. average right now, $2.81 a gallon. that was the same as yesterday but, obviously, inching higher and higher. i also want to update you on the situation in hawaii. 26 homes have been destroyed, this as lava flows from the volcano, kilauea. 1700 people have been evacuated. this video is just absolutely remarkable. that's molten rock spewing into the air. by the way, it also gives off poisonous gas. i also want to show you this, nasa launching a spacecraft headed for mars this weekend from vandenberg air force base in california. that's their first interplanetary mission ever to depart from the west coast. scientists are hoping to find
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out if mars has life, what could have existed in the past. it's a joint effort between the united states, france and germany. more "varney" next. ♪ ♪ we use our phones and computers
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charles: all right, check this out. that's a duplex penthouse in hell's kitchen right here in manhattan listed for $85 million. now, check this out, along with the penthouse you get two seats on virgin galactic space flight, but that's at all, there's more! two rolls royces, a lamborghini, a yacht, weekly dinners at a steakhouse, a pair of courtside season tickets to the brooklyn nets, a live-in butler and a private chef. [laughter] and there's more! kidding, that's indiana amazing deal. -- an amazing deal. hell's kitchen is not as bad as the name applies. george harrison's first electric guitar will be auctioned off later this month. he played the guitar when the beatles were performing in liverpool back in the day as a
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quarry men. >> that's right. charles: the guitar's expected to sell for as much as $300,000. i thought it would get more, we'll see. disney partnered with mit and carnegie mellon to create a jacket, it's called the force. it's lined with airbags that are controlled by a computer. the airbags have sensors that send vibrations to specific locations in your body. it's designed to be used with virtual reality headsets. so it can simulate a hug or being punched, even give you the sensation of a snake slithering across your body. quell, house intelligence -- well, house intelligence committee chairman devin nuñes says jeff sessions should be held in contempt of congress, judge napolitano on that. also part of the upcoming resolution to fund the government, is it going to happen? we're all over it next. ♪ ♪ nah. not gonna happen.
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charles: check on the big board, we're hg tough. we had a nice start. for the most part, we're hanging in there. this market does this, right?
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it pops sometimes, moves sideways, and that last hour of trading can be crazy. right now it's crazy good. hey, also want to talk about this, the exodus out of these high blue states to predominantly red state. a great example, a big wall street firm is now moving from new york to nashville, and part of the reason, a big part, high taxes in new york. joining us now, congresswoman marsha blackburn who's a republican from tennessee. congressman, just another example of why folks have been flocking to your state. >> you're exactly right. and it's one of the reasons i'm so pleased we were successful when i led that fight against imposition of a state income tax in tennessee. this was backing in the late '90s, early 2s. seth bernstein said one of the main reasons they came to tennessee, low taxes, good culture, they could increase their employee benefits. those are all winners. it is what americans want to see more of. and it's certainly what
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tennessee, tennesseeans are enjoying the benefit of right now. just look at it, this is another example in a long list of companies who have chosen to come to states that have pro-business, pro-family, low taxes, that right type environment for business success to take place. charles: absolutely. and there's so many of them. i have another one for you, congressman. president trump demanding that congress secure the borders in the upcoming continuing resolution. of course, that's needed to fund the government. are you going to support that or would you support it? >> oh, absolutely. i have supported it. here's the reason why. tennesseans tell me every single day, charles, what they want to see is a border that is secure because they are tired of illegal entry. you look at the drug trafficking, the human trafficking, sex trafficking, and they want this to stop. they want the border to be secured, they want to make certain that the legal
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immigration pathways are secured, our h-1b, h2a workers that are so needed. people that have been in the ewe for a very -- if the ewe for a -- queue for a very long time. they want that to be honored. we're a nation of laws, we respect the rule of law. people want the law to be enforced and to be recognized, and they want to have the border secured. charles: absolutely. congressman blackburn, thank you very much and look forward to seeing you again real soon. >> always good to see you. thanks so much. charles: now this, house intelligence committee chairman devin nuñes is saying attorney general jeff sessions should be held in contempt of congress. all rise, judge andrew napolitano's here. judge, what's the basis for the argument? >> well, we don't exactly know what congressman nuñes has subpoenaed from the justice department, but apparently it is something that the justice
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department believes under the law it may not reveal. now, what laws allow the justice department to hold back information even from congress? if it is about an ongoing criminal investigation, the justice department may not release it because it would tip the hands of where the investigators are going, and it may cause witnesses to flee, evidence to be destroyed, defendants to leave the country. if it is about an intelligence investigation and it reveals sources, it may jeopardize the sources. now, where do those rules come from? congress wrote them. charles: right. >> so if congress doesn't want to be bound by the rules it wrote to restrain its, it can write new ones. on the other hand, i can understand congressman nuñes' frustration. sometimes the justice department treats the house intelligence committee dismissively as if the committee were just an annoyance rather than their regulator -- charles: well, we've seen numerous examples of this throughout this process. >> yes, we have. now, the proper procedure is what congressman nuñes is
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suggesting. two weeks ago some of his colleagues said we're going to impeach rod rosenstein. that's absurd. impeachment is limited to treason, bribery, other high crimes and misdemeanors, same standards as for the presidency. charles: right. >> but eric holder, attorney general holder, was held in contempt by a republican house of representatives for refusing to surrender documents on the fast and furious fiasco at the texas/mexico border. we have never had an attorney general held in contempt by a congress of the same party. because the president doesn't want to get involved because he is under investigation, he's said this publicly, and he doesn't want to give the impression that he's tinkering with the justice department while a portion of it is investigating him. charles: we've witnessed, as american citizens, from the last administration into this new one this sort of, i would call it almost belligerence when it's
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come to agencies within our federal government being called before congress or being asked to cooperate with congress. i mean, you just started this off by saying congress writes these rules. do we need to revisit these rules? because almost every one of these sort of hearings became a joking, they wore their disdain on their sleeves, and it feels like, you know, the sort of personal animosities that we're hearing about that have seeped into this investigation are superseding just the ultimate objection or at least the objective that was told to the american public. >> here's another objection that the justice department has which you will never articulate publicly. republicans on the house intelligence committee want to see what evidence bob mueller has so they can share it with the white house. that is a below the radar screen fear that the doj has which is the very same reason that if they were investigating a bank robbery and congress wanted to subpoena the documents as to who they thought the bank robberrers
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were and where they are and how close -- charles: right. >> they would never give it to congress for perfectly understandable reasons. but this is, very, very, very combative. i do not remember combat this aggressive between congress and the doj when they're in the same party. i mean, in the old days -- which was just a few years ago -- [laughter] the president would call the attorney general and say take care of this, make it go away. charles: yeah. >> doesn't happen. charles: all right. of judge, thank you very much, really appreciate it. well, it's not even summer yet, but phoenix is in the midst of a record-breaking heat wave. fox news senior meteorologist janice dean joins us. all right, janice, how hot are we talking? >> it's going to be hot. i mean, we set a record yesterday in phoenix of 106 degrees. now, they're used to this type of weather, this heat. unfortunately, it's a little, tiny bit early for this time of year. april 10th this year we had our first 100-degree day in 2018.
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we've had four 100-degree days so far in 2018, and may 12th is the average when we see the first or feel the first 100 degrees. and 110 days is the annual average that you see 100 degrees plus. so there's a little bit of climatology for the phoenix area. yes, a little early for this type of heat, and it's going to remain hot, at least 100 degrees or more, for the next five days. we have heat advisories in effect not only for phoenix, but the southwest. so we're into a deep heat here that's going to last for many days. again, not only for phoenix, but parts of california as well, 103 in palm springs, 106 in death valley, 98 in phoenix and 75 in flag staff. a little bit cooler as you head northward. here's your five-day forecast for phoenix, arizona, again, well over 100 degrees for the next five days. and the average high around this
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time of year is 92. now taking a look at the rest of the country, charles, we have high heat across portions of the southern plains, a little bit cooler as you head northward over the great lakes, even the northeast and the northern plains. here in new york a really refreshing 74 degrees, and we're going to see in the upper 60s for thursday. so the real hot spot again, charles, for the next couple of days is the southwest. phoenix, arizona. i know they call it a dry heat but that's still darn hot in terms of, you know, 1015, close to 110 degrees for them this week. charles: yeah. it's hard to make that sound comfortable. janis dean, thanks. >> you got it, charles. charles: something mark zuckerberg told politicians was not possible, we've got the company that i allows you to own your own data and also get paid for it. and california's attorney general trying to dismiss the trump administration's lawsuit
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challenging sanctuary city laws there. the mayor of los alamitos is up next. more "varney" next. ♪ ♪ [ telephone rings ] [ client ] - hey maya. hey! you still thinking about opening your own shop? every day. i think there are some ways to help keep you on track. and closer to home. edward jones grew to a trillion dollars in assets under care, by thinking about your goals as much as you do. moderate to severe rheumatoid arthritis was intense. my mom's pain from
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♪ ♪ >> i'm nicole petallides with your fox business brief. a feature on apple, itself hitting a new record all-time high this moment, it's at $187.12. apple a has been soaring for a couple of reasons. first of all, after its quarterly report which was a beat, but also the endorsement of warren buffett and charlie munger over at berkshire hathaway, scooping up another 75 million shares where buffett's even been quoted as saying i'd love to own 100% of it. a little too restraint strained in -- restrained in buying apple stock. compare it against the nasdaq this year with the dow, you can see the nasdaq is up 5.5%, apple up 10.5% to new record highs. ♪ ♪ mgx minerals' disruptive technology can extract lithium -
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used for batteries from expired oil wells. mgx's new pilot plant aims to produce lithium-carbonate one hundred times faster than from conventional lithium brine. mgx minerals
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charles: california's expected to approvw energy standards that would require solar panels to be installed on nearly all new homes. the requirements would take effect in 2020, would also affect condos and apartment buildings. the new standards are expected to add about $30,000 to construction costs, but the state says the energy produced by the solar panels will save owners about $50,000 over 25 years. so just hang in there, it pays off. and now this, california attorney general xavier becerra
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is trying to dismiss a lawsuit filed by -- against that state by the trump administration. the administration wants to block california's sanctuary state laws. joining us now, troy edgar, mayor of los alamitos. your city, of course, siding with the trump administration in this fight. what do you make of the latest move from the california a.g.'s office? >> yeah, good morning there. you know, we've been expecting this type of action. we're waiting on two actions, this action against the u.s. and potentially an action against our city. so wasn't surprised. but, you know, it's interesting in his focus what he's been looking at is saying that from his perspective, you know, he's still operating within the confines of the constitution, within the tenth amendment, he feeled that he has the jurisdiction to govern by the state of california. within los alamitos, you know, the hard part for us is he isn't speaking for the entire state of california. as a charter city in the state of california, we have express powers as a charter city to,
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basically, have the direction a priority of our police department, and is if we follow the u.s. constitution, that should be something within our choice. charles: and overall even irrespective of your specific case in this whole thing, does california, does the a.g. there and the governor miss -- and you brought up the constitution -- the separation of powers and what powers the executive branch has with respect to immigration policies? >> no, i don't think they understand that. that's really what's been at the crux of this within the state is, you know, governor brown and becerra both feel that they are in complete control of that situation and really putting our residents at risk and our county at risk. and, you know, this is just another action. you know, he'll go through the procedural action to dismiss, and this will eventually be heard in june. we don't really think that the court's going to consider this. charles: it's really amazing, actually, to be quite frank, it's been remarkably shocking in
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a good way, i think, for the rest of the nation to see cities like yours rise up and revolt against the massive power of california and also the overarching belief that everyone in california felt this way. it's sort of refreshing it feels to understand that there are people inside the state who see the fallacy with this sort of red carpet treatment and sort of enticing or even seducing illegal immigration. >> yeah. you know what's hard is that at the city council level, you're bipartisan. you've got to get stuff done, but you're really connected to the residents and what's going on in the state. again, i think what you're starting to see, we have over 35 cities now within the state of california, three counties that have taken action that are really trying to send a message back to california. i'm to the point where i'm going outside the state to try and look for other partners, maybe other governors of other states to help us, because i feel as a city within the state of california, we have no one looking out for us. charles: these are large counties, by the way. i think the second and third
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largest counties have pushed back against this. >> yeah. charles: it's going to be, perhaps, a long, arduous journey if this were to help, are you getting any support from the federal government? or should i say the white house? >> yeah. last week we actually sent direct letters to the attorney general and president trump, the administration just basically asking for direct and indirect support. but, you know, i think that some of the tweets that the president has sent out to say, hey, look, orange county, we're behind you, you know, again, it's pretty bad when as a resident of the state of california you've got to depend on tweets to kind of think that somebody's out there looking out for you. you know, i just hope that attorney general sessions continues to press with the state's case and appreciate the administration getting behind him. and, again, as the only city that took a action on the ordinance, any support that we can get within our city would be appreciated. charles: mayor troy edgar, thank you very much, really appreciate it. >> thanks for having me on.
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charles: vice president pence will announce new sanctions on venezuela. in a speech this afternoon he's also calling for a delay in the venezuelan election. the election scheduled for may 20th. you can see on your screen there also oil, which has been benefiting from venezuela's inability now to fund itself. it's oil -- its oil and infrastructure. meantime, big news from elliot management, reportedly making an all-cash offer for athena health. the news is it's going to be 155-160 per share, that stock is up although it's come down from some of the high points of the day. an investment research firm sets a price target of $1900 a share for amazon. that's about an 18% pop from what the stock is changing hands -- where the stock is changing hands right now. would you let a company use your personal data if they paid you? how about that? you owning your data. we've got a company that says they do just that, next. ♪ ♪
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charles: take a look at tesla shares, upg but still about $85 away from
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their all-time high. you've got a lot going on there. then, of course, today the big winner in the dow is caterpillar which makes it even more striking as they got a major downgrade last week. stock came back last week and builds up momentum into today. i've got some breaking news for you, the trump administration will introduce step up prosecution of parents crossing the border illegally. the policy will allow the adults to be more easily detained. 56789g. sessions will -- a.g. sessions will announce more later today. our next guest lets consumers get paid for their online data. joining us now, chris mclena, ceo of shlex digital. you've got to explain. when the facebook stuff was going down, one of the things people kept saying was how come i don't own a piece of the action? it's my data. >> right. yeah, consumers are becoming much more aware about the value
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of their own data. it started with the data breaches, and then it went into facebook's ownership. people are starting to recognize the value of their own data. we've been in the data business for ten years now. we've been aggregating data sets around specific customers, and we buy a lot of data from experian, all these sellers of data. and we said, look, it's time now that consumers get to own their own information, sign up, put their information into a platform that then pays them every time somebody accesses it. why should somebody else get paid? charles: so how would it work then? you know, someone is mining information on a consumer, they want to use it so they understand how to market to that consumer. >> yeah. so the way the business works now, it's around $130 billion is in the consumer data marketing business. big aggregators of data take that information, and then they sell it to marketers in the digital advertising landscape. they sell it to the people that
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are buying advertising in realtime. charles: sure. so the viewer though, okay, my information, i put out it there, i poured many i soul into the internet, and now everybody's taking advantage of it. how do i get a piece of the action? >> you go to, you sign up for the beta, you put in your information, we'll sign you up for the platform. then we'll ask you a bunch of questions about yourself, and we'll take that data and sell access to it. not the data itself, but access to the data to different marketers. when that happens, we pay you for access to that information. charles: do i know who you sell it to? do i have a say in that as well? >> yeah. it's all out on the block chain. we put all the information out there so you know exactly who's getting your data, and if you don't like somebody you say i don't want this person to have it, and you opt out of that particular person. so you can, you can define the people that you want -- charles: how long you been doing this? >> we've been in the data business around ten years -- charles: i know, but you just started -- >> we've been working on this
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around a year. charles: right. >> when the congressional hearings came up, it was like a two-day commercial for everything we've been working on for around a year. now we're ready, we're in the -- the product is out there, people are signing up for it at every day and, you know, it's ready to go. charles: what do you make of the idea that facebook and some of these others, i mean, they're not going to really ever change their business model. in effect, the user is the product. >> it's going to take the consumer to make, to force them to make a change, because the consumer is becoming aware of it, and the consumers have the wool pulled over their eyes for the last x number of years, forever. nobody has ever thought about the value of their own data. now people are realizing it, and companies like us, we're building the best, the biggest platform for this, and consumers are going to say, wow, i'm really making money on a daily basis here. why wouldn't i do this? charles charles sounds like a no-brainer. >> thank you very much.
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charles: all right are, folks, more "varney" right after this. ♪
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. . . . charles: want to repeat that breaking news. the trump administration will introduce, quote, stepped up prosecution of crossing the u.s. border illegally. the policy will separate children from parents. so the adults can be more easily detained. ag sessions expected to announce more on this later on today. ashley. >> this new policy has the children go to separate refugee facility while the parents go into another facility. i assuming they are crossing the border illegally, as opposed to applying for asylum. if they apply asylum the family will be kept together. if they bustedded border they are bused back to mexico.
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they will be detained and -- charles: that was catch-and-release. >> no more. charles: no more. parents will pay a heavy price. >> yes, they are. charles: and children. this is huge. this is really huge. neil cavuto. take it away, sir. neil: thank you very much, we're follow following a couple more developments. three-year highs on iran, no matter what happens with the iran deal or nix this one and or start from scratch, this will lead to higher energy prices. that is helping components within the dow. certainly helping the s&p 500. normally the drill, is when that happens it is a drag on stocks. not a drag today. i want to stress that. a lot could be markets buoyed by better than expected news. we're following a couple other developments here. this mueller probe and where it is going. charlie gasparino has some ideas. along with charlie along with noelle nikpour, last but not least, market watcher extraordinaire mike


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