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tv   Varney Company  FOX Business  June 21, 2019 9:00am-12:00pm EDT

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make sure you do not miss "making money with charles payne." that does it for us. great honor to fill in for maria the last two days. it's also a great honor to hand it over to stuart varney. stu, take it away. stuart: the honor is mine, son. thank you very much, charles. good morning to you. good morning, everyone. what a story. we launched the planes, we put the ships in position, we were about to strike the iranians, then comes the order to stand down, no strike. we went to the brink. don't know why we stood down. it is now a tense standoff. several airlines have extended a no-fly zone around iran and the gulf. how about this. security adviser john bolton heads to israel. that may be all about iran's decision to expand uranium enrichment. israel has said iran must not get a nuclear bomb. despite all of this, the price of oil holding pretty steady at $57 a barrel. it's up just a fraction, 14
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cents. the price of gold holding steady. it's up just a little. have we got a price there? okay. we will get to it later. it's $1300 an ounce. what did you say? 14? gold is $1400 an ounce this morning. big gain yesterday, a fractional gain this morning. got that. investors do not know what to make of this. china's leader goes to north korea. interesting that right after that visit was announced, president trump called xi jinping and worked out an extended meeting. so it's a three-way dance and no one knows whether it helps the trade talks or not. look at this, too. after a big rally yesterday, no significant pullback this morning. yes, the dow, the s&p, the nasdaq, they will all open lower but all three are still at or very close to their all-time highs, despite what's going on around the world. go figure, maybe. friday morning. "varney & company" about to begin.
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stuart: want you to see the video. look at it. it's cooling down a little bit now but that was a massive explosion at an oil refinery in philadelphia early this morning. can you go through what happened? deirdre: yeah. it is the biggest one, i want to point this out, on the eastern seaboard. at 4:00 a.m. this morning, you had a huge fireball reaching to the sky, huge flames. commuters taking photos of this. it was really a frightening sight. this is a 150-year-old refinery and you are seeing futures for gas prices, even natural gas prices, move higher off the back of this. it is the largest one on the east coast, so 4:00 this morning, no injuries, cause unclear but it is affecting -- stuart: the picture on your screen is the damping down after the fire. there was a fireball literally in the middle of the night. deirdre: going from that refinery to the sky. stuart: extraordinary stuff.
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we are trying to get that video a little later on. it is dramatic indeed. now, back to iran. we have new video from the defense department. you can just make it out. that shows the trail of smoke after the drone was shot down. fox news has confirmed that a strike was in motion overnight in retaliation for the drone attack. then it was called off. joining us, general jack keane. sir, welcome back to the program. any idea why there was a stand-down, calling them back? >> yeah. i have more than an idea. i know what happened. the president planned to conduct a strike, directed that strike and it was largely against the means that delivered the blow to knock down our drone. in other words, radar, missile command and control, et cetera, but they received additional information that followed the president's instincts. if you remember, when he was in
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the oval office, he said my instincts tell me this could have been a mistake possibly, but later, they got information that confirmed just that, that the iranian national leadership was furious with the tactical commander who shot down the drone, because they clearly did not want that provocation to take place. based on those facts, new information to the president, he called off the strike. and i don't think there will be a reattack based on now the conclusion by the intelligence community that this was not the national leadership's intention to conduct this provocation. stuart: whoa. now, that is fascinating. to get to that late stage where the planes are in the air, then you get new information and you call it off. general, that's very interesting. i'm glad you found out for us exactly what happened in the middle of the night. but i do want to turn to john bolton. as you know, sir, he's headed to israel next week. my question is, is this all
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about iran's nuclear program, uranium enrichment? because israel said many, many times iran must not get a nuclear bomb. >> yeah. there are two things in front of us now with this crisis. obviously the crisis has escalated because of the impact of the crippling sanctions on iran, and iran is trying to get international community support, particularly from our allies, to put pressure on the trump administration to back off the sanctions. so that is really their main objective. they are also using the threat of busting the jcpoa or the nuclear deal's restriction on uranium enrichment which sits at 3.67%, and threatening to go to 20%. that is alarming. because to go from the restriction of 3.6 to 20 is a major, major progress forward and to go from there to
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weaponization can be done very quickly. so that is the central issue that's on the table. if the iranians carry that out, right now what they're trying to do is use that as a threat to leverage the international community, create alarm, put pressure on the united states, back off on the sanctions. ambassador bolton is clearly going there to talk to bibi netanyahu about this incident. clearly netanyahu cannot accept 20% enriched uranium because they can move very quickly to a weapon. so that is the most dangerous thing in front of us on the table that the iranians are threatening. secretary pompeo is also going to go to the middle east and he's going to shore up a coalition to actually -- stuart: i'm just interrupting, forgive me, sir, but president trump has just said he stopped the attack because the response would not have been proportional and he is in no hurry on iran.
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he literally just said that, sir. your comment, please. >> well, i don't know what the details of that are in terms of what it means by proportional. clearly, i believe he was going against the means that destroyed the drone. i think the trade-off in his mind also is one, they took out a drone asset that clearly is worth multi millions of dollars, as we know. the trade-off in taking out missile batteries, radar sites and command and control would be loss of life. the second issue is the escalation itself. when you step on that ladder of escalation to do whatever the planned strike was, the iranians have to respond to that. they will not accept it. then you begin the ladder of
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escalation. so all of those are in the factor of the president's mind, i think plus the information that the tactical commander was not operating in concert with the national authority. so yeah. we are where we are. i don't think we'll see a reattack of that mission. based on this decision. stuart: as the president says, he's in no hurry on iran. interesting. general, i'm so glad you could lead our show this morning, because obviously, you know what you're talking about. right in the middle of this i'm not going to call it a crisis, but this standoff with iran. general jack keane, a valued guest on this program. thank you, sir. appreciate it. >> great talking to you. stuart: yes, sir. we better get back to your money. take a look at futures. we are down about 60 on the dow. down about 30 on the nasdaq. that's nearly a half percentage point. not that much of a pullback despite what's going on all round the world. joining us, market watcher john layfield. john, let me bore you with my
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theory. in my opinion, profits rule wall street and at this point, the iran standoff does not hurt profits. that's why there is no huge pullback. what do you say? >> i completely agree. it also shows the fundamental strength of this economy. corporate profits are still coming in around the mid teens so we have a really good economy, we have low historic unemployment, we have wage growth. this is not something that forbodes a recession like some have predicted. we do have what appears to be a slowdown but we're not falling off a cliff. you have three political events that seemingly could derail the economy from the iran standoff to brexit to the trade war, but these things have not really affected this market because this economy is so strong. stuart: okay. i'm just going to read the president's tweet that we received moments ago. here it is. it's in four parts but i'm going to go through them. president obama made a desperate and terrible deal with iran, gave them $150 billion plus $1.8
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billion cash. iran was in big trouble and he bailed them out. gave them a free pass to nuclear weapons and soon. instead of saying thank you, iran yelled death to america. i terminated deal which was not even ratified by congress and imposed strong sanctions. they are a much weakened nation today than at -- than at the beginning of my presidency, where they were causing major problems throughout the mideast. now they will bust. on monday they shot down an unmanned drone flying in international waters. we were cocked and loaded to retaliate last night on three different sites when i asked how many will die. 150 people, sir, was the answer from a general. ten minutes before the strike i stopped it. not proportionate to shooting down an unmanned drone. i'm in no hurry. our military is rebuilt, new and ready to go, by far the best in the world. sanctions are biting and more
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added last night. iran can never have nuclear weapons, not against the usa and not against the world. all right, john. how do you think that's likely to affect the market? i know you are just hearing this for the first time but i don't see that as a negative for stocks. do you? >> i love it. i love the measured response by the president. i was worried this thing would escalate very quickly. i still worry that it's going to escalate. there have been six tankers that have been mined or torpedoed in the strait of hormuz, from norwegian tankers to marshall islands to uae to saudi arabia. for some reason, everybody looks to us to defend the waterways of the world, especially when oil transport is involved, and now the president is showing some restraint. i think that an autocratic regime that when they get into a corner and i agree with what the president is doing here but i think iran, the chance of them doing something stupid here is slightly better than 50/50. i'm proud that the president showed some measured response so
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far. stuart: john layfield, thanks for joining us. an important day. appreciate it. check futures. any movement there in light of the president's tweets moments ago. no. we are still down just a little, 50 down on the dow, 28 down on the nasdaq. take a look at amazon. wants to use its delivery drones for surveillance. says they can be used to protect you by spotting intruders and other criminals. quite a story. we're on it. give it to you. the border patrol chief going after aoc for comparing migrant detention facilities to concentration camps. you hear what she had to say. we are just getting started on "varney." carvana is six years old this year
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this is something bigger.. [ "movin on up" by primal scream ] that is big. not as big as that. sure that's big. that's bigger. big. bigger. big. bigger. big. but that's bigger. wow, big.
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so much bigger. this is big. but that's...well, you got this. stuart: border patrol chief taking aoc to task for comparing detention facilities to concentration camps. watch this. >> recently a member of congress has referred to those detention centers as concentration camps.
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would you care to comment on that? >> i personally find them offensive. my men and women as well as the men and women in i.c.e. are doing the best that they can with the limited resources that they have. stuart: i think we need a more significant response. here is fox news contributor tammy bruce. >> good morning. stuart: your response, please. >> well, this is -- what i like about alexandria ocasio-cortez is that we don't have to wonder about how ignorant she is. we know. this is the issue. and it's not just her. we have now at least one generation, close to two, where in schools there's no history taught. there is no context taught about world events. unless you're watching -- and at least maybe you get some on the history channel but she clearly doesn't watch that, either. so you are looking at the use of words for shock effect. she knows it's a phrase that's important. she's clearly using it in a context to imply a seriously bad situation but she's also
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incurious. she's not asking well, what does that really mean because the concentration camps were a factory to use slave labor to abuse people to death, to also then accomplish the mass extermination, the mass murder of a group of people because of who they are, and then to say that for those who do know what this means and i'm giving her the benefit of the doubt that she really didn't know. if she does, it's even worse. that for the world listening, it then implies to people who don't know and then learn that we are like the nazis. this is a theme. and the problem for the left is when you're relying on manipulating people's emotions, you must always up the ante. so now americans are not just nazis, we've got concentration camps and i guess that means we are using them for slave labor and then we are interested somehow in mass murdering people. this of course harms national security, it harms our relationship with our allies, it sends a message to people around the world maybe that's true and
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we don't know. it is a remarkably ignorant thing to say but also dangerous thing to say. stuart: did you also see this about the border. 1,500 migrants who came across in just two of these caravans, 1500 of them have prior convictions in the united states. >> those are the ones we captured. this has been the argument all along. not just when it comes to crime and the impact. remember, these individuals then go into the communities of other undocumented people, of the hispanic communities who are then victimized first again by this movement of criminals into the arena, then you've got the same people on the left saying we should abolish i.c.e. which then tracks down these people in the interior to get them out again. the problem here of course is the introduction of crime into those communities that the left says that they care particularly about, into the american scene in general, but then also there's the issue of infectious diseases, about what we know, what they have done, what we are
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able to track. this is for again, the first communities hurt are the immigrant communities. illegal and legal, because those are the communities that these people are being moved into. if the democrats are serious about being concerned about them, then don't lie about how we are trying to handle this influx with the detention centers and how we are holding people, and also be honest about the dangerous environment that the democrats are helping to create in the immigrant communities themselves. stuart: tammy bruce, thank you for bringing back the border on to the front burner. where it should be. thank you. check futures again. we've got a couple of tweets from the president this morning explaining why he stood down the attack on tiran overnight. the market has come back a little. we will be down about 40 on the dow. a florida city making headlines after it agreed to pay hundreds of thousands of dollars in ransom to hackers who had taken over its computer system. big story. we've got it for you. an fbn programming note. charles payne will interview
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president's instincts. if you remember, when he was in the oval office he said my instincts told me this could have been a mistake possibly. but later, they got information that confirmed just that. that the iranian national leadership was furious with the tactical commander who shot down the drone, because they clearly did not want that provocation to take place. stuart: that was general jack keane moments ago on the program saying why we stood down in the attack on iran. moments after the general said that, president trump came in with a series of tweets. i've got a couple of them for you. here we go. on monday, iran shot down an unmanned drone flying in international waters. we were cocked and loaded to retaliate last night on three separate sites. when i asked how many will die, 150 people, sir, was the answer from a general. ten minutes before the strike, i stopped it. not proportionate to shooting down an unmanned drone. i'm in no hurry. our military is rebuilt, new and ready to go. by far the best in the world.
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sanctions are biting, more added last night. iran can never have nuclear weapons, not against the usa and not against the world. so that's what we have just been dealing with in the first 20 minutes of this show. we have to take a short break. we will get back to the markets after this. i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪
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stuart: you are looking at the aftermath of a huge fire at one of the biggest refineries on the east coast. that was a big fire overnight in philadelphia. carl lowry is with us, an oil market analyst. has this had any effect on gas prices on the east coast? >> you know, it will. it doesn't right now. we can see futures prices are a little higher right now. but it eventually will trickle down to the consumer, down to the pump. it's not a great time. it's summer driving season. it's an interesting play. we will see what happens. stuart: now, am i right in saying it's the largest refinery on the eastern seaboard? is that accurate? >> that's right. that's correct. so the eastern seaboard does rely on this refinery for a lot of gasoline, jet fuel and diesel fuel. a lot of the other stuff comes from europe. that's going to be an issue going forward, especially if we see these tensions in iran really rachet up. stuart: you have ten seconds to
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tell me whether or not you think oil is going to go up from here bearing in mind what's happening in iran. >> yeah. lot of tension, lot of higher prices. we will see it higher. stuart: going to go above $60 a barrel? >> you know, i think we will get to 80. we will. stuart: oh, don't save the best until last. >> it will be there. give it time. stuart: thank you very much. i know it was very short. >> thank you. stuart: $80 a barrel is where he thinks it's going. all right. the market's open, friday morning. we have opened with a fractional gain. look at that. we are up three points, five points. 26, -- six points, we'll take it. this follows yesterday's very big rally. look at the s&p. that's a tiny fraction, .01%. i'm going to call that flat. how about the nasdaq? that's been doing well recently but today, it's down a quarter percent. so the losses are on the nasdaq, not so much the s&p and the dow. 2.03%, that is the yield this morning on the ten-year treasury. friday morning.
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that means david dietze is with us, so too jonathan hoenig, susan li, deirdre bolton. jonathan, you first. explain it to me. the market's at or near all-time highs and you've got all, forgive the language, all hell breaking loose all around the world. why are we still near highs? >> i mean, where would you rather put your money, in a government bond that is a negative yield, look throughout europe, look throughout japan, we have swaths of the government bond market now at negative yield, so people have a question, they want the put their money in what are oftentimes very expensive but still profitable u.s. corporations, or government bonds with negative yields. add to that, i will just add the u.s. dollar has been dropping. it actually boosts the shares of so many of the stocks in the s&p 500 and the dow because they earn in foreign currencies. that's what's helping push the market up. the fed ain't hurting either. stuart: you know, you and i agree. money is flooding into the united states because we offer an interest rate positive and we
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offer safety. good heavens, hoenig, better be careful agreeing with me. all right. big tech names, check them, please. we do it all the time because this is where the money's going. all of them opening lower. ever so slightly lower this morning. apple, alphabet, amazon, facebook, microsoft, all of them on the downside. good buying opportunity, david? any of them? what do you say? >> certainly there are many that are good buys. for example, some of the semiconductors including intel offer dividends and growth. what we really like is the secular growth trends. fact of the matter is people are not going to start looking at their smart phone no matter what's hammippening in the stra of hormuz. people want to incorporate tech in their life and i think that offers growth we are not seeing in other areas of the economy. stuart: so there is room for more upside move in those stocks on the screen? >> absolutely. absolutely. stuart: really. >> yes. stuart: one extraordinary run already. susan li raises her hand. wants to make a point. susan: i just want to make sure we understand this is the best june so far for the s&p 500 since 1955.
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on average, you know, the s&p up above 4%, 4.5. so far this month, we are trending higher by over 7%. you can thank the federal reserve for that because nearly 100% believe there will be at least one cut, two, maybe three this year. stuart: other than the weather, june was great. deirdre: futures options indices, individual stocks expiring all today that normally increases volatility. stuart: okay. hoenig, i know you wanted to get in. i heard your raised voice all the way out there in chicago. what have you got? >> you know, investing is like barhopping. you have to go where the action is. look, the action is just not in big tech anymore. these are yesterday's winners. yes, some have persevered. microsoft and oracle are doing really well but i just don't think you can say buy big cap tech. look at tesla, at a lot of these other names. these are the names that are at the centerpiece of the federal government's ire right now. the justice department. that's going to hinder the big tech names.
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i don't think you can buy big cap tech, certainly not fang, and make money in the rest of 2019. stuart: david buys big tech. jonathan does not. moving on. yesterday, we brought you those two big ipos. the message company, slack, the working messaging company. susan: corporate. stuart: heaven's sake. susan: whatsapp for business. stuart: i'm talking slack, okay? slack went up yesterday when the ipo came out and it's up a little more this morning. it's at $39. how about the grocery outlet? can you show me that right now? it had a nice day yesterday. i think it's up a little bit more this morning. yes, it is. $29. jonathan, is this the kind of company you like? >> i don't think people in general should buy ipos. here's the game that oftentimes goes on. ipos come out with very visible companies, a lot of media hype, and very low floats.
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there quite simply aren't a lot of shares available for trading and they become almost day trading vehicles. i think these are going to be good stocks in the long term. you wait and buy them three months, even six months down the line. trying to buy a stock on the first day i think is untested and generally bad way to try to make money in the market. stuart: david? >> i take it a step further. slack was not even an ipo. it was a direct listing which meant of course, there's no road show, there's a paucity of knowledge. the company isn't getting the money itself. these are insiders unloading the shares. the reference price to start at, it wasn't a negotiated type of price, less than 1% of all the users of the slack communications are actually paying users. $750 million in revenue, $25 billion market cap. it does not make sense. deirdre: there's a question of what else can they do. you can collaborate via e-mail but what else? the company has to keep innovating. stuart: but it's new technology. america rules technology. this is a new way of using that technology.
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susan: it doesn't make money at this point. with a direct listing like this, it's basically early investors trying to get out with 38% of the shares pretty much sold yesterday so they can get their money back. stuart: i have been shot down on uber and lyft and slack and a lot of other stuff. susan: it's a growth stock. stuart: i did not buy beyond meat either. susan: you really missed out on that one. i'm just saying, let me just finish my thought on tech unicorns. you are buying into growth. ten million users, looking at still some pretty astronomical double digit growth returns, where do you see that and say an at & t, perhaps? stuart: go ahead, jonathan. >> to echo the point, even microsoft, a growth company, but if you bought it in that 1990s growth period, you had to wait a decade for it to come back to its current high. that's the problem i think with buying growth stocks at growth multiples, when the multiple goes away, so does the stock
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price oftentimes for decades. for my money, i would rather buy gold, for example. i would rather buy commodities, something that's just starting a bull market rather than growth tech stocks which are probably towards the end. stuart: let's be clear. i waited several decades for microsoft to come back to a profitable position. i probably don't have decades left so i won't be making any other kind of investment. okay. i'm getting comments in my ear. look at the big board, please. we are dead flat. ever so slightly lower. big rally yesterday. down two points this morning. got it. walmart, they are going to pay $282 million to settle claims of bribery overseas. market doesn't care. not a new high but that's $110 a share on walmart. beyond meat coming down by just eight bucks this morning. that is 5%. they are still at $156. susan: down for four straight sessions. stuart: thank you very much indeed. you are telling me, the producer is telling me down four days in
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a row. okay. got that. bitcoin, $9,700 per share. holding above the $9,000 level. a new amazon patent shows tech to the rescue. amazon wants to watch over your home to protect you and maybe spot intruders. lauren simonetti, got her two cents' worth in earlier, will now get in her ten cents' worth. lauren: i was just trying to help you with what slack was. you know, we try to frame tech or they try to frame themselves lately as a do-good company but there's a flipside of that, where it's such an invasion. they want to use the drones that are soon going to deliver you your items to look around your house, your property, did anybody break in, is a car not in the right spot, is a window broken, is there a fire. they will alert you and they are going to alert the local police department that this happened where you live. hi, i'm your neighbor. i don't want that to happen because you could be looking at my property, too.
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let's say something nefarious goes on, you want to get away with doing something bad, you can't do that anymore because not only do we have security cameras, now we will have drones with footage of everything. this is privacy invasion times ten. stuart: i think we have to make the judgment that a car out of place or a door open is a security risk. lauren: it will alert you. >> let the free market decide that. but this is why we have -- people are actually looking into the house. is this any different than driving through the neighborhood and taking pictures so they can create maps? deirdre: google cannot function like that. >> who doesn't use google maps. it's a great service. stuart: i want to make time for jonathan who i believe is a libertarian. what do you think? >> we should be building a statue to jeff bezos right now and thanking him for these amazing innovations. lauren, what you are basically saying is this is going to make it more difficult for people to burglarize homes.
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that's a good thing. growing up, we were on vacation as a family, my parents would often call the cops and say hey, take a ride by the house, make sure everything -- so this is exactly what they're doing. they will provide it in an accessible and benevolent way. people are always scared and it always helps us in the long term. lauren: what if someone can get into amazon's system and get footage of what your property looks like? >> you know, security has been a question since the early days of the internet, but that's why they invest zillions of dollars and that's why these companies make security a priority and do a good job. lauren: i don't want people looking at what i do in my backyard. i will just leave it there. >> what are you doing in your backyard? what are you doing? lauren: exactly. my privacy. stuart: hoenig, what kind of libertarian are you? we will answer it later. thanks very much, gentlemen. thanks very much for joining us. lauren, thank you very much. the dow industrials, we are now ten minutes in. no pullback from yesterday.
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in fact, in the very early going we are up 11 points on the dow. now this. president trump getting ready to issue a new executive order on drug price transparency. health and human services secretary alex azar joins us in our 11:00 hour. i want to know, is this a back doorway for the president to get some kind of health care done and passed? the executive order? google, new report claims millions of business listings on google maps are simply fake and the company is making money out of it. we've got that story for you. maxine waters isn't the only lawmaker who wants to put the brakes on facebook's new digital currency. next we talk to a republican congressman who says it could cause a lot of damage. he's on the show.
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stuart: go nowhere market this friday morning, down just ten points on the dow. democrat maxine waters is not the only member of congress who just does not like facebook's new digital currency. here's a tweet from republican lance gooden of texas. quote, facebook's impact on social interactions went far beyond what its creators anticipated. if their crypto project were to impact our financial lives similarly, the damage would be irreperable. the congressman joins us now, he's a member of the house financial services committee. reading between the lines, it seems like you just don't like the idea of facebook getting financial information out of us. >> they have got so much on us already and have shown they have been unable to properly protect data and integrate our lives. i don't like shopping for something, then two seconds later i'm seeing a facebook ad about it. my constituents don't like it either. the last thing i think we want is facebook to be in charge of
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banking. with that said, i like the idea that's come out. it's intriguing, it could be good for the world. i just don't know if facebook's the one to be in charge of it. stuart: so it's facebook you object to, not the concept of an easy payment system using a digital currency. because that really would help all of those people that don't have a bank account or -- >> sure. stuart: they've got some money or no bank account. >> that's right. i think the actual concept of an innovative currency like this is great but it needs to be vetted. normally i don't say we are the government, we are here to help, but in this particular case because this is facebook and silicon valley has shown us they don't necessarily know what's best for americans, we need to have some here to discuss in more detail just what it is they want to do. stuart: you would call them in, you would question them and meantime, you put the brakes on it. just like maxine waters would, i think. >> i think we are all in agreement on that, yes. stuart: before you go, i've got to talk to you about the border. we had a report late yesterday, early this morning, that about
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1500 migrants who came into america in just two of those caravans, they had prior criminal convictions here in america. you are from a border state. what do you make of that? 1500. >> par for the course. we have heard this nonstop since day one. we have been talking about this since the government shutdown. president trump wanted a wall. republicans wanted a wall. we want meaningful border security. democrats continue to not even admit that we have a problem. this story doesn't surprise me at all. stuart: you are from a border state. >> yes. stuart: you've got to deal with this firsthand. what do the communities, the local communities in texas, what do they feel about criminals walking in the door? >> they are outraged, they are upset about it, they are fed up. that's why donald trump got elected the last time. that's why i think he will get re-elected this next time. that's why i think republicans will take the house back over because democrats campaigned on doing something and since they have taken office, they won't even acknowledge that we have a crisis at the border. people are fed up across this country and something has got to be done.
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stuart: that's not showing up in the polls. in texas, democrats still lead president trump in head-to-head matchups. >> you know what, these are the same wonderful polls that told us hillary clinton would be our next president. so polls are what they are. just that. stuart: what do you think, what's the proportion of hispanic voters in texas who will vote for president trump? have you any idea? >> you know, i don't know, but i know that the hispanic vote is not necessarily a non-republican vote. the hispanics that i talk to in my district, they agree that laws should be followed, that border security's important. many that i talk to that i represent say we followed proper legal channels and we believe that others should as well. and i think that you are hearing a story from the left fake news media, some might call them, that we are not doing well in texas, i think you will be pleasantly surprised in the next election that texas is solidly red. stuart: got it. congressman lance gooden, thank you very much for joining us. we appreciate it. thank you.
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check the market. the dow 30, where are we? pretty even split, i think. no, predominance of red. and the dow at this point is down just nine points so far. basketball's kobe bryant making a big investment in a fast-growing artificial intelligence company. some of its clients include amazon, lyft, hp. the ceo of the company joins us in a moment. he's trying to fight what he calls the demonization of artificial intelligence. the latest innovation from xfinity
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stuart: you got to say that is a very modest pullback after the 200 point rally yesterday, and a terrific month of june. this friday morning we are down just 25 points. got that. now this. artificial intelligence demonized in parts of the media. yes, it is. we have a guest who is going to defend artificial intelligence. his company uses it to make sales calls more effective. howard brown is with us, founder of ring dna. before we get to your defense of artificial intelligence, how are you using ai to make sales calls more effective? how do you do it? >> well, we analyze sales conversations and sales activity to make sure they're doing the right thing at the right time.
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artificial intelligence allows us to analyze hundreds of millions of conversations and their outcomes to make sure reps are performing at their top. stuart: okay. now extend that to say surveillance, facial recognition. you are walking down the street. artificial intelligence allows anybody to know everything about everybody on the street. defend that. >> well, certainly you could use artificial intelligence in a security -- in a security manner to make certain that terrorists or suspects that you could be concerned about aren't violating citizens' rights and aren't going to create a dangerous situation for those of us that are walking down the street just trying to get to work. stuart: i see your point. i really do. i'm not taking sides here. i just see a lot of demonization of ai in the media and also in tv news. i see it. i want you to defend it.
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i mean, what's wrong with this hostile approach to ai? >> well, i have a far more optimistic view of ai. i see ai as a way to enhance performance. we look at ai in a sense and think about how the work force is really changing, right. if you think about athletes like kobe bryant or their teams, they have always used game film. they have always studied the performance of their athletes to help them do better. and we look at, there's not a boardroom, there's not a ceo anywhere that doesn't want better performance from their reps, better performance from their sales teams, and we look at ways to harness the analytics, the intelligence, to make businesses do better. perform better. stuart: can you definitively say objectively that the use of artificial intelligence in your
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company, ringdna, does improve results? can you say that for sure? >> 100%. companies that utilize our application see not only better performance in terms of sales, but better retention. what we're doing is we're helping -- we're helping businesses truly be more human through the application of artificial intelligence. it's like anything. if i can learn how to study my behavior, if i can learn what impacts change in a positive way, and what is impacting me in a negative way, i can do more of what's positive and less of what's negative. rather than being afraid of artificial intelligence, let's look at it as a way to empower human behavior. stuart: very interesting. howard, look, thanks very much for being on the show. it's a very interesting subject and you handled it right at it. we appreciate that. howard brown, ringdna. thank you, sir. now, here's a question.
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is this good news or not for the apple ipad? the news is that google says they're done with making tablets. is that good for apple? susan: that's a good question because are people still buying tablets. don't forget, google has had a really checkered history of trying to sell hardware. for instance, the first tablet, consumers didn't love it. it was released in 2015. now google has confirmed that they are no longer making tablets. in fact, they are going to not release those unreleased tablets they had planned for this year and they're not going to have a runup to the pixel book that was set to be released in october. i guess what google is trying to do here is they are going to still get into laptops, not tablets which i found interesting, because for awhile we were seeing the pc sales were dead, laptops were dead, it was more to the mobile and movable devices. i guess not the case for google itself. stuart: no more tablets from google. got that one right. check the big board, please. now we are up about, what, five
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points. that's what we've got. in a moment, a very important report coming your way for realtors. could move the market. it certainly affects realtors. we've got the numbers on existing home sales. very important stuff. we've got it for you after this. is where people first gathered to form the stock exchangeee, which brought people together to invest in all the things that move us forward. every day, invesco combines ideas with technology, data with inspiration, investors with solutions. because the possibilities of life and investing are greater when we come together. ♪ who used expedia to book the vacation rental that led to the ride ♪ which took them to the place
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but that's...well, you got this.
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stuart: friday morning. we have latest numbers on existing home sales. realtors, pay attention, susan? susan: positive number in the month of may. existing home sales make up 90% of the market, 5.34 million by the way. stuart: annualized basis. susan: month on month. year to year is up 4.8%. on top of that, let's look at, home sales up 2 1/2%, month on month sequentially. we're looking at 14 straight months of declines. this is a turn around for month of may. you know why? mortgage rates, 30 year fixed at
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3.84 this week. it has been hovering 3.8, below 4%, something like that. that draws in buyers when paying less in mortgage payments. this is positive number for the u.s. housing market which makes up 20% of u.s. gdp. stuart: i think it is positive numbers for all realtors who watch this program. they are legion, so i'm told. that is the latest on housing. susan: strong, very strong. stuart: 4.8% year on year. let's have a look at the market. we're still down just a tiny fraction, big rally yesterday, we're down 10 on the dow, down 25 on the nasdaq, that is 1/3 of 1%. there is losses in technology this morning but the rest pretty much flat to slightly lower. now this. joe biden's campaign it is in trouble. that means the democrats are in trouble. if his problems take him out of
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the race, who is left to run against the president? just the socialists. no wonder is there is internal dissent among democrats. after all if it is not biden, can bernie or elizabeth warren win? put me in the skeptical column for that one. i don't care what the polls say today. what is joe's problem? answer, his past. and his attempts to reverse, explain or reengineer all of the things he has done and said in the last 46 years in politics. this week, his problem is his association with segregationists in the 1970s. back then he sought their help in opposing busing to achieve racial integration in schools. on wednesday biden said i, it was just relationship, he had to put up with it. back then he written letters saying he was flattered and grateful to the segregationists for their help. those letters now emerged, joe has a problem. in today's democrat party hard
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to be moderate on the issue of race. you cannot be moderate on abortion either. that is why biden had to reverse his position. for 40 years he supported the ban on taxpayer funding. he is now withdrawn that support. a few months ago he said vice president pence was a decent guy. he had to apologize. no democrat is now allowed to say anything nice about anyone in the trump team. he supported the 1994 crime bill. so did bill clinton. 25 years later that bill gets blame for mass incarceration of african-americans. now he says, i haven't always been right. and then this climate change, uh-oh. joe biden wanted a middle of the road policy that didn't last long. bernie sanders said, there is no middle ground. joe caved, and signed on to the fantasyland of the "green new deal." next week the democrat debates begin. joe biden will have a tough time of it. he is the front-runner. he will be attacked and his
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opponents have plenty of ammunition. then it will be on to the primaries, he will have to run the gauntlet all over again. you think activists who dominate primary voting will give him an easy time? there is no way. the democrats seem to believe, if they push biden out, a far left candidate can win. i don't believe it. if he is out, do not assume that another democrat gets in. trump's prosperity beats socialism, period. we usually go to animation then, no, not this man is on the show. he is the doug schoen, fox news contributor and a democrat. we are paying this man. >> virtually, 99 to 100% agree with you. what is happening to biden is devastating for the democratic party, stuart. stuart: really? spell it out. >> look this is center-right country. this is not a far left country. we're not socialists.
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swing voters are the no socialists. if we knock out only guy who set look donald trump by double digits, elizabeth warren, bernie sanders, mayor pete, they're not going to be able, in my judgment to beat donald trump. stuart: i just, i don't think, former vice president is a bad guy. >> i'm supporting him now. of course he is isn't a racist. he was working with them on things like voting rights act, civil rights act, what he said mall adroitly certainly, i needed to work with these guys to get positive change. that is what he was trying to say. but for cory booker and kamala harris, the rest of them to jump on him. they know he is a good guy. i know he is a good guy. you would think he is a good man. stuart: i agree. >> we would have a great election between he and jump. it would be a godgood debate, solid debate, one i could go either way. this is only hurting democrats. stuart: without a lot of people on the program saying joe biden
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not make it all the way through, all the way through the debates and nominating process, that he is not going make it all the way through, in part it is a energy problem. now he appears to have policy problem and historical problem as well. do you think he makes it all the way through? >> i hope he dues but i fear the left as you correctly said which votes in primaries will try to knock him out. since he is maladroit with his language and raising issues don't need to be raised, talking about segregationists he is hastening that possibility. so something two weeks ago i would have said was virtually impossible i now say is within the realm of reason. stuart: if it is not joe biden, is there any other democrat who is in the race who you would consider a moderate, i mean middle of the road person, who could actually win the nomination? is there such a person exists? >> as i look today the answer is no. stuart: are you still a democrat? >> i'm still a democrat but i
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want somebody to vote for. i can be enthusiastic about joe biden. i was enthusiastic about mike bloomberg who chose not to run. candidly we need, moderate pro-growth democrats who are inclusive and want a social safety net. we're not getting that. stuart: bernie sanders or elizabeth warren would you vote for trump? >> not sure i would vote for trump but sure wouldn't vote for them. stuart: that is honest answer. that is the on back to private jet to florida. >> absolutely. stuart: i want to talk about china trade. president trump and china's xi xinping will meet at next week's g20 summit. it is in japan. joining us cathy entwhistle. welcome back. >> thanks for having me. stuart: we get a smile for the camera, hand sheikh deal, something is going on. >> next week at g20? stuart: next week at g20. suppose we get that. i think market would react very
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well but i think the economy would react real well. >> i agree with you. stuart: but do you think the fed would have to raise rates? >> i think as you heard from susan, housing starts and home sales positive and gdp and growing economy we might not see that. normally would see them about raising rates, but inflation where it is today, at 1.6, not 2% target, i think they would wait for that. i do not see them raising rates until the enof the year. stuart: goldilocks environment, handshake deal and that seems positive to me. >> if we get handshake deal and rate cuts considered for mex month, i think we would see the market get excited. stuart: get excited. >> go up. stuart: we are already at or near all-time record highs. >> absolutely. stuart: you think we bo higher from there? i'm sounding skeptical because, i have been doing this a long time and i -- >> all about the numbers. when you're cutting rate, you
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will get easier rates, lower rates for borrowing, for investing, long-term capital expenditures for companies, i think that could drive the market up little bit higher if it happens. if we have an agreement and we have rate cuts and if we have inflation sort of staying where it is i think we could see something positive in the markets. stuart: now you have to have an outlook on this meeting the meeting is going to take place? >> yeah. stuart: you think there will be some kind of a deal? >> i think they will have a cease-fire. stuart: what does that mean? >> they will stay where they are, not add anything to it, maybe roll back some tariffs. stuart: that would be a big deal, if tariffs are rolled back. >> reduced a little bit. stuart: china buy as couple hundred billion dollars worth of stuff from us, that would be a handshake deal, that is what you think might happen? >> i think that if it does happen it will be very positive for the markets. stuart: got it.
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kathy, sorry to put you in a corner, you handle i had very well. thank you for being with us. president trump says, yes he ordered military strikes on iran but then called them off. he says the response was not proportional. we'll spell it out all for you. new york state, passes a law allowing illegal immigrants to get drivers licenses, doesn't that mean they will vote, backdoor voting. some county clerks are refusing to issue licenses to illegals. former senator al d'amato coming up on this program shortly. a city in florida agreed to pay a bitcoin ransom to hackers who wiped out the city's computer sim. there is no guarranty it will even work. what a story. ♪
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stuart: dead flat to ever so slightly higher. the dow jones average after 43 minutes of business is up one, no it's not, up a half-point. we'll take it. how about walmart? look at that. $111 a share, they agreed to pay $282 million to settle bribery claims overseas. the stock doesn't care. i think that is all-time high actually, pretty close. check disney, "toy story" four hits theaters this weekend. might bring $200 million in the opening weekend. disney holding well above $140 per share. there is controversial law in new york state which allows illegal immigrants to get drivers licenses. i got to tell you some county clerks are refusing to issue those licenses to some illegals. joining us now, al d'amato, former new york senator, a republican. mr. senator, great to have you
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back again. >> good to be with you. stuart: isn't the real issue here, if you give driver licenses to illegals r opening the doors to illegal voting, that is what is going on? >> it will absolutely take place. because one of the prime identifiers to give you the ability to vote, gives you residence, et cetera, has been and is a drivers's license. what do you think a clerk is going to do? someone comes in. gives them a driver's license. they can't ask for anymore under the law, that exists today. that is bonafide of proof, that you are a legal voter. a voter. stuart: but you can do that. >> oh, yeah. stuart: it would be illegal, it would be illegal if an illegal did that in the voting booth. >> yeah. stuart: there is virtually no check to stop them. >> how will you stop it? you can't stop it. just no way, they have provided no way to check on this. they haven't said it cannot be used, be punished if you violate
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the law. the law as it is now provides that if you show that license, you're bonafide. stuart: we have some county clerks who are saying no, we're not going to do this. >> right. stuart: what happens to them? >> they will wind up in court and the chances are, i would say, the chances are that the judiciary will say this is the law, you have got to issue the license. so you are opening the door. but that is not the least of it, right here in new york city. you know what they did, they passed a rent control law which is going to create the abandonment of apartments because now, if somebody wants to repair, owner wants to fix up the building, he can only get 2% for the money he invests in the improvement. there will not be any improvements. what you will do is create slum situations. you are going to have people losing housing instead of gaining it. that is the kind of stupidity
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that the legislature engaged in. stuart: that is what happens when a state is run entirely by the democrats. new york state is entirely democrat state. i'm inclined to ask you, senator, what happened to the republican party in new york? it doesn't exist any longer? >> let me tell you, you're right. essentially this last election wiped out the last vestige of some control. that was the republicans who had come along with the democrats, a number of democrats to form a coalition. that coalition doesn't exist. the democrats control the senate and the assembly by large margins. it is not just that they're democrats who have a left-wing. stuart: right. >> that doesn't think, because if they were thinking about protecting renters, they wouldn't pass this law, which makes it impossible for investors to invest in good housing. stuart: do you still live in new york or have you gone to
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florida, yet? >> i live in new york. my two babies are here. i am here as long as i got them here. stuart: senator, great to see you fenn. >> look forward to it. stuart: don't be a stranger. thank you. how about this one from google maps. millions of fake businesses are listed on google maps. see it all the time. they make money out of that. we're going to tell you how that works in a moment. ♪ when i got my dna results,
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stuart: returned to the upside, only just. the dow right now is up 12 points. carnival cruise lines, the trump administration has banned cruises to cuba.
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that could hurt their bottom line. they came out with a rather dull outlook yesterday. that took them down yesterday. they're down another 4 1/2% today. carnival is all the way back at 46. crocs, on their way for the best day in six months, look at them go, 6% higher. got an upgrade on its quote, robust clog lineup. there is a recommendation. don't you love them clogs? a lot of misinformation on google maps. that is not stopping google from making money out of this misinformation. susan, let's define what is misinformation? susan: "the wall street journal" did an investigative report on google maps, they found, for instance, if you have a repair shot list at 11 wall street on google maps, if they find out difficult repair shop than actually listed. now in the "wall street journal" report they found that in mountain view, california, the hometown of google out of 12 addresses for personal injury attorneys, only one was actually
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correct. phone listings as well, they have the wrong phone numbers to actual competitors livessed on google maps instead. so a lot of these companies have complained in the past, a lot of these listing companies, including yelp, this is anti-competitive from google. people are complaining, in some cities 11 million of these fake addresses or fake phone numbers popping up each and every day, you make money from advertising you have to pay in order to list numbers and addresses, should google have this advantage, especially when they control 37% of the online ad market? $116 billion a year that they make in revenue when they're not doing it accurately? stuart: i agree with you entirely. you have to be accurate on this stuff. no excuse for that kind of inaccuracy. susan: when it leans towards the other competitors, right? i mean, not good for consumers. stuart: i wouldn't be happy. all right. susan, how about this one a city
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in florida paid $600,000 in bitcoins to hackers who breached the computer system. >> the hackers paralyzed this network. it's a small suburb, palm beach, 80 miles from miami. you mentioned the price, $600,000 will be there. takes 65 bitcoins to be precise. the police and fire department were handwriting on paper and pen 911 calls. to the extent of municipal system completely frozen, so the hackers target their small municipalities, because they don't have resources of bigger cities. it has proven profitable for them. department of homeland security, ransomware is now the fastest growing malware threat. we think of big breaches, sony, ones grab all the headlines, but these smaller, small targeted ones perhaps employees may be less informed how to protect themselves. one employee clicked on a email link. that is what set off the whole malware system.
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they have been wrestling for three weeks, do we pay, not pay. at the end of the day they will pay. they need it. municipality functions are frozen. stuart: with bitcoin you can't trace where money went. >> hackers one and poor little city zero. stuart: that is problem for bitcoin. susan: money laundering. >> there is a lot of negative publicity. to your point no way to track it, if you want to trade arms, people, drugs, it is very easy way to do it. stuart: i have got a problem with that. deirdre, thank you. president trump said he is ready to retaliate against iran but he called off the mission he received last minute intelligence that the iranian leadership did not authorize the drowning of one of our unmanned drones. quite a story. usa beat sweden 2 nil.
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that they are the clear front-runner. brian is with us. we'll be right back.
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♪ ♪ sgt. pepper's lonely hearts club band ♪ stuart: i like it. play it super loud volume on this thing. the base is terrific. susan: has a lot of base, right? stuart: you are mocking me, and i know it. susan: [laughter] stuart: great song. we have to move on, however. the dow industrials are up, not much but we're up again. up 200 yesterday. up 200 now. look at level of 26,774. not that far from all-time closing high.
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president trump is tweeting this morning about how he called off that retaliatory strike against iran, called it off at the last minute because the response, our response to the attack on the drone was not proportional. general jack keane had some insight on that last hour. listen to this. >> they received additional information that followed the president's instincts. if you remember, when he was in the oval office, you know, my instings tell me this could have been a mistake possibly. but, later, they got information that confirmed just that. that the iranian national leadership was furious with the tactical commander who shot down the drone because they clearly did not want that provocation to take place. stuart: fascinating insight from a man who knows. this man is steven rogers, former senior military intelligence officer on the fbi joint terrorism task force. welcome to the program. >> my pleasure to be here. it may be raining outside but sun is always shining on
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"varney & company." always. stuart: you practiced that last night sitting on my right side. let's get right at it. >> yes, sir. stuart: seems to me the president does not want to attack iran, that his preferred policy is containment, am i right? >> you're absolutely right. varney, the president has been very consistent letting the world know he is not interested in going to war with anyone. he has demonstrated extraordinary leadership in addressing this issue. when the news broke that the president stopped the military operations going into iran as general keane, myself, my instincts said, wow, he got intelligence overnight. he got intelligence that allowed him to say hey look, we're not going to do this. stuart: he found out that the senior iranians were really angry at the local commander who fired off the shot that brought the drone down. he found out also that the three targets he was about to attack would have killed a lot of people. he didn't want that. >> that is right, varney. he went back to military 101.
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they say he is not a military guy but military 101, give the opposition the opportunity to bow out gracefully. when he stated, probably a rogue general on the ground, i was sending a signal to iran. here is your chance. you made a mistake, a chance to back out saving some face. in addition to that, we have a president who is not interested in killing people. he is interested in diplomacy. interested in fighting a war across the table. he is very concerned about the collateral damage. to his credit he put a stop to that. stuart: i think perhaps a more pressing and urgent issue is john bolton, next week, going to israel. i think this is all about iran's plan to keep, to enrich uranium over and above the limits set in the deal with on iran nukes. i think john bolton is either going there to say to israel, we got your back, if you attack iran, or he is going to say don't attack iran because the
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president doesn't want it. which is it? >> i believe he is going to israel to confirm to them that we're going to watch their backs. look, israel -- stuart: that's a big deal, mr. rogers. that is a big deal. >> it is. stuart: because if we say we got your back, they will attack because they don't ever want iran to get a nuke. >> look it. the survival of their nation is at stake here. iran gets a nuke, they're committed to destroying israel. keep in mind that, you know, for the president to do what he did, let's make sure, and he is going to make sure that north korea and other nations don't understand that as a signal of being weak. we are a strong country. we will use our military when necessary, but with regard to israel look, our best ally, our most coveted friendship, i'm sure we're going there to say if you do what you have to do you can count on us. stuart: do you think the israelis say we got to do what we got to do? >> if they feel their nation is imminent danger, yes, they will not hesitate.
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stuart: that is the real crisis here? >> yes it is. my opinion based on the history of israel and their relationship with our nation but i got to tell you it's a different story, their nation, entire nation is at stake with regard to iran. stuart: sir, it was a pleasure having you on the show and in new york city. >> i love the sunshine here. [laughter] stuart: thank you very much. >> thank you. stuart: i will interrupt here with breaking news. apple has filed to be exempt from the next round of tariffs on china. do have anything more? >> we certainly do. apple is the largest u.s. corporate taxpayer to the u.s. treasury. pays billions in state, local, federal taxes, employee taxes. they say the tariffs would reduce apple's contribution to the u.s. economy. i will quote here this letter from apple, we announced our intention to make a total direct contribution to the u.s. economy of $350 billion over five years. we're on track to achieve this contribution. we are creating new jobs in the u.s. we are opening several new
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sites in the u.s. so essentially they're saying we deserve to be spared. stuart: by the way, i think it was 10 days ago tim cook was in the oval office speaking with president trump. i have to think that this was part of the backstory here? >> i think this is the result of that conversation. stuart: very positive for apple, for the whole idea of tariffs and china trade. >> very practical, saying tariffs will hurt our ability to contribute to the u.s. economy as we do. stuart: apple's stock has not ticked up that much, up 40-cents but pretty close up to $200 a share. the dow industrials ticked up a fraction. we're up 32 points for the dow. maybe that apple story has something to do with it. now this, amazon, wait a minute, wait a minute, amazon is getting into the travel business? how are they doing that? susan: wow. in india they quietly launched a test service happening in india as we speak. airlines are concerned that amazon's quiet launch selling
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domestic plane tickets that they're encroaching businesses possibly in the future of expedia or other online travel companies like priceline this goes under the category should you be worried if amazon getting into your industry, kind pharmaceuticals and grocer with the whole foods purchase. we're saying amazon selling discounted flights right now in partnership with clear trip in india. this offers discounts, deep discounts to prime members. stuart: they're doing it. >> amazon has bonn into travel before, remember in 2015 when they were offering destinations, that is when they were selling hotel rooms, say napa valley or high-end hamptons resorts that didn't work because they shut that down in 2015. not everything amazon gets into works all the time but should you be worried when 1000-pound gorilla gets in? yes. stuart: that is good. a good last line, susan.
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we'll tell you which universities are changing the the admissions process to stop the gaming the system with the college scandal. that is the story. we got it. ♪ this is something big.
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this is something bigger. [ "movin on up" by primal scream ] that is big. not as big as that. sure that's big. that's bigger. big. bigger. big. bigger. big. but that's bigger. wow, big.
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so much bigger. this is big. but that's...well, you got this.
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stuart: nowhere market for the moment. we're up to 26,780. show me big tech, please. look at this. all are on the upside. i will concentrate on apple for a moment. that is moving a little higher, awfully close to $200 a share. as we reported moments ago, they filed for an exemption from the tariffs on china trade. that is helping them. the stock again right at $200 a share. look at microsoft, now it is above $137 a share.
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that has been the best former of the big techs i believe in the month of june. they performed very well. i'm happy. the university of california changing its admissions process in the wake of the admissions scandal. what are they doing, deirdre? >> they went through the internal audit saying we need to change a few things, ucla, uc berkeley were directly affected. they will have better policing of fraud, conflicts of interest. if you apply, conflict of interest, you will be flagged. basically they're looking for stronger verification of claims on applications, potential lines between donors and applicants, stricter scrutiny of those admitted for special talents which of course include artists and athletes. as we know some families were literally photoshopping their children's heads on athletes and sending them in. numerous people were charged with several felonies over this. stuart: i don't think this is over. this is not the only. >> this is not the only school system.
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they're targeting them saying what they were doing about it but they are not only ones. stuart: i want to say, this person a bribe facilitator, don't get me wrong, he was helping in the scandal, he handled 741 or 748. a massive numbers. >> these college consultants charge as much as $1000 an hour or flat payments we since learned -- stuart: it's a bribe. >> add up to millions of dollars and other perks. stuart: that was the worst publicity for elite universities. >> certainly was. stuart: elite applicants that you can possibly imagine. >> people always knew if your family donated money then your family name would be on a library wing, love it or hate it, at least other kids bet to use the library, all unfair but all transparent. this where you had people actually taking an s.a.t. or act for the child or going back in changing that child's result, that was a level that nobody could even imagine was happening. stuart: no. bad for the kids. bad for the school.
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bad for the parents. bad image, you name it all across the board. it was just bad news. okay, on your screens the big winners on the nasdaq. this is quite a day we're having here. netflix reached 368. i see dollar tree up again, intel up, facebook, reached 190. been much higher than that in the past. cisco systems, that is up as well. now these are the winners on s&p 500. i don't know what that stock is. darden did restaurant is parent company of -- >> olive garden. great italian according to our producer. stuart: we have a bone to pick with them about italian food. keycorp, chevron, goldman, jpmorgan, walmart, can't read -- exxon mobile. oil doing well. finance ago doing well. across the board stock prices are holding at or near record levels. ain't that something when you got something all this stuff going on in the background in
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iran and china and north korea? it is up there, 26,787 for the dow as we speak. an e-cigarette reportedly exploded in a teen's mouth. >> horrible story. stuart: damaged his jaw? >> certainly did. this teen and his family happened to live in rural area in nevada. the parents drove him 200 miles to a trauma center hoping it would live. they literally heard a pop in another room. he phrasally fractured his job. blood everywhere. pediatric surgeon said looked if he had a hole in his jaw. people not talking about the products. they can burn you, explode in your pocket. some with lithium batteries mix poorly with couldn'ts can explode in your face. some with lighter fluid are unstable. we welcome the movement as people try to quit smoking which by the way larger context for this story. the mom bought this e-cigarette
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device for her son hoping he would quit smoking cigarettes. however it did not end well. stuart: what a dreadful story that is. do we have mr. dehaan on the phone. do this first. we have important item to bring to you. first this. mcdonald's testing robot fryers and voice activated drive-throughs. i can see this. susan: it is important from a labor perspective, right? we talk about automation, oozing jobs as you push for $15 an hour, there are stats out there we could lose a third of low income, low-skilled workers. right now mcdonald's. stuart: more technology coming to replace workers who will make 15 bucks an hour. they can't bring in a profit. >> also speed of service, drive-throughs, things fairly easy to make robot can do it. susan: streamlining men use to
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today that. stuart: let me get to this real fast. extraordinary video overnight of a massive explosion of oil refinery in texas. that is video. a fireball going straight up in the air. it could affect gas prices on the east coast that is the biggest refinery on eastern seaboard. patrick dehaan from gas buddy. he has more. will we see any kind of increase prices on gasoline in the east because of that fire? >> we certainly could, stuart. this changes everything. we talked about less than a week ago prices look like they would go down. we have a tanker attack last week a drone shot down this week. now spectacular explosion we saw overnight. we certainly could see the national average start to move up just in time for when most motorists hitting the road, that is july 4th. stuart: any kind of estimate how much per gallon prices will rise on the eastern seaboard because of this fire?
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>> i must caution you it is a little bit early but we could see prices drift up by maybe five to tencent but stuart, this is so early on, could get much worse, depending how much damage there is and how long the refinery is down. 30% of east coast capacity comes from one refinery. stuart: that is enormous number. patrick, thanks very much for jumping in real fast. we appreciate it. what you have to say is very important. got it. thank you patrick dehaan. completely different story now. joe biden i think the man's in trouble, his campaign i think is in trouble. he is spending a lot of his campaign time putting out fires. i will get into all of this with brian kilmeade. he is next. ♪ experience the style, craftsmanship and technology
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at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary.
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take your business beyond.
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stuart: the market is picking up a little ground despite all that is happening around the world. we're up 52 points at 26,800. brian kilmeade joins me now. he is the host of the brian kilmeade radio show. before we get going in our discussion, i want to show you and our viewers what president trump said about joe biden.
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roll tape. >> joe biden, he looks like he is just exhausted. i don't know what happened to him, but he is exhausted. he doesn't do any work. he is not working. stuart: brian, a lot of people say he will not make it all the way through, doesn't have the energy to make it through to the nomination. what say you? >> i'm one of them. forget age, bernie sanders you have great energy. you could run for president four years or eight years from now. stuart varney comes here in jeans, you're like shot out african none. at end of the day you're still going. i look at bernie sanders, president trump, they don't stop. but joe biden doesn't have the energy. number two is, his handlers don't want him to have that engine. he makes so many mistakes. already the touchy-feely explanation, joking about it next day on stage off script. what he said about china, not really a competitor. come on, man, remember that? now you have him going to a fund-raiser, going back to the days of segregation using something as analogy which is
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obviously a huge mistake. he is not a racist but his opponents have a clear shot at his jaw. stuart: but look, if biden is out, if it at some point he is out of the race, what are the democrats legitimate with? they're left with the far left, they're left with socialism. that is all they got. i maintain biden's problems are really problems for the democrat party in the forthcoming election. what do you say to that? >> yes. and alexandria ocasio-cortez interview with jonathan karl on this week with george stephanopoulos. he had so much reluctance, if he gets the nomination, i guess i will support him. she represents, whether you love her or not, a lot of people on the left. bernie sanders never got on the hillary clinton train. this guy, when bernie sanders loses, it is inevitable, i don't see him rally. when, if joe biden wins, i see no reason for anybody else to go with him unless they want to be
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vice president. so they're in a huge school of hurt. people say it is like the tea party? not really. this segment on the left is a lot bigger than what is in the middle. stuart: you got it. brian, talk to but the u.s. women's soccer team. as you obviously know they beat sweden 2-0 yesterday. they will play spain monday in the round of 16. i'm following this closely. i know you do too. team usa looks strong. they have a real shot taking it all. do you agree? >> especially against sweden. fitness was evident. depth on the roster is so great. carley lloyd, who has been with the team longer than anybody else, tied with mia hamm for scoring record or abby wombach. she said this is tight as unified team i ever been on, she is coming off the bench. they look lethal. know how quick in soccer that can again.
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we know about 13-0. i thought never should do it, disgraceful. winning 3-0, 2-0. set up to play spain on monday. spain is 1-1-1 coming in. this looks like the deepest, moat athletic, most determined squad to date but we'll see what has to be done yet. i love the fact that they already had seven new starters in game 2. that almost never happens. stuart: bench strength. one last one, i'm all in favor the women's team getting equal pay, getting money out of this, because they're performing so well and revenues are great. 10 seconds to agree with me? >> if the revenue, if the revenues is equal, yes. but if the revenue and sponsorship and tv rights isn't, how can you do it? i can't force, mls soccer to give same payout as football, even though same athletes. all i say, adidas, puma, pony up the same money you pay for the men, distribute it the same way. should be percentage of what is earned but, man, all for what
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they accomplished. stuart: got to go. you know how hard it is hard break. >> i have no idea what you're talking about. stuart: hard break. world's largest pot, as in marijuana company, canopy growth, the sales went down in canada? what is going on? we'll ask the ceo what's going on. we'll be back in a moment. at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys.
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there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond.
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stuart: when you're on tv, three hours live, doing a financial show, five days a week, a lot of people want to talk to you about their money. recently, the questions have a common theme. what's with this market? why does it keep going up? i try to avoid direct answers, because i don't want to try my hand at stock market forecasting, thank you. but i understand where the questions are coming from. thursday morning, for example, headline news, an american drone shot down by the iranians.
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technically an act of war. the price of gold shoots up, a sure sign of anxiety. money pours into treasury bonds. another anxiety signal, but stocks straight up, right from the opening bell. okay, that was motivated by a soft line from the fed about interest rates, but the way the mideast news was ignored, that was striking. same again today. we woke up to news that our planes were in the air, our ships were at sea heading for a strike against iran. then came the order to stand down. clearly it's a face-off with the enemy and that's something that investors might be expected to react against, but no. there has been no significant pullback for stocks. they remain at or very near to their record levels. what's with this market indeed? may i try to explain without issuing a stock market forecast? the bottom line to me is this. the market moves in line with the profits that corporations are expected to make. investors look to the future.
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is this company going to make money or not. profit is everything. so long as iran, impeachment, investigations, the crisis at the border and all the other troubles of the day, so long as they don't hurt profits down the road, investors will largely ignore them. when china trade or mexican tariffs look likely to hurt us, the market went down. if and when those problems go away, the market keeps going north. so long as the fed encourages growth, the market keeps on going north. you see my point? investors judge all news events by their likely impact on profits. what's with this market? i hope i've kind of answered the question. we are, after all, a financial program. stuart: following on my theme from that little editorial
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there, look at this. now we're up 73 points, despite iran, despite all the rest of it that's going on. 26,826. that's where the dow jones average is now. we were up 200 yesterday. look at this. we are watching interest rates very closely. the yield on the ten-year treasury is now at 2.05%. the money is still coming into it. how about oil? up a few bucks overnight, $57 a barrel, that's because of iran but that's by no means a spike in the price of oil. $57.49 right now. take a look at the marijuana stocks. sales of cannabis around the world could reach $15 billion this year, maybe $45 billion in five years. big market. take a look at canopy growth. earnings came out yesterday and their sales of recreational marijuana actually came down in canada. the stock's up 8% this morning.
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bruce linton is with us, canopy growth ceo and frequent guest on the program. great to have you back. what happened in canada? sales of recreational weed down? what happened? >> so a couple things. we basically sell, if we grow it in this quarter, two-thirds of what we sold in the next quarter and the ramp-up was a combination of the stores getting ready and us having the product people wanted. it's kind of down but it's basically flat. what's coming through right now is the demand is increasing as the stores open up and as we get to q4, rather than selling dried cannabis or oils in the gel cap form, we start being able to sell beverages, vape pens and edibles. it's a layering on of new products, more growth, so i would say the market's reacted more like retail markets. who's selling today is mom and pop and who's probably buying is institutional. because if you look at our sector, it's just growing and getting bigger globally and it's just starting. stuart: do you think maybe
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there's some pushback against recreational marijuana? i notice that new york just tabled legal pot until next year. legalization efforts seem to be slowing. there's a lot of pushback coming here. you've got to be looking at that. you've got to be thinking i don't like this. >> yeah, i would say the pushback should only come from people who are making a lot of money by operating illegally. we're not introducing cannabis, right. this exists. what governments are trying to do is regulate it. in canada, they have actually pushed through the next wave of topics which are going to be the beverages i described and other formats. we are seeing globally medical research is a big deal. we don't need the world to turn into a party. when you look at, we've got 60 clinical trials we have either started or are about to start. so we can try to figure out how do we make people sleep better, how do we make adults in long-term care, you know, be less anxious, things like that. so i think, you know, this is just a flow of growth but it's a lot of capital we put out. we had a business in q3, 2018,
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that was running about 600,000 square feet and had about 55% gross margin so good business. what we did is got $5 billion from constellation, began spending it and are now turning that up. it takes money but also dilutes your margins. now we can think they will come back to where they were so this is short-term selling. we're not the stock you buy in the morning and sell in the afternoon. it's the sort of thing you say i think this is a big topic for the next ten years. stuart: i introduced you as you are the biggest marijuana company in the world. is that accurate? i guess i should refine my terms. are you the biggest growers of legal weed in the world? you are? >> correct. we are the biggest legal marijuana producer, when you measure by total amount produced, market cap, head count, all the functional things, clinical trials. and we're just using this window, i'm not saying we are amazon, but amazon spent a lost time creating a lot of value and
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rewards came as they now turn up amazing systems and offerings people can't live without. what we are trying to do is use this window of time which is a once in a lifetime for this type of topic to create something that is very durable, and durable means intellectual property. we've got 90 plus patents issued now. it means spending. stuart: big company. bruce linton, canopy growth, thank you for joining us. >> thanks, stuart. stuart: couple of quick corporate stories for you. i will start with amazon. i'm intrigued at this. they want to use their drones for something other than deliveries. hold on. they are going to surveil me? deirdre: yes. surveillance as a service. it's the patent they have applied for. the caveat is that amazon has a ton of patents that never see the light of day so this one is going to have to be debated, but the idea is basically they are going to give you an update on everything that's going on on your property. so somebody is graffiti'ing something on your wall or
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there's a fire in a garden shed or somebody is trying to break in, you will know about it from amazon. go ahead. stuart: sorry, i'm just introducing -- interrupting here because i see, left-hand side of the screen, the dow has just passed its all-time closing high. okay. let's not get confused with the intraday high. don't care. it's past the all-time closing high, up 112 points. susan: there are positive comments from the vice president mike pence, who says they are making progress on china trade. that's helping boost all three benchmarks, hence we are up triple digits for the dow. stuart: that's it. it had to have been something. sorry i interrupted you. deirdre: not at all. stuart: there had to be something because all of a sudden i'm looking up, i have a big screen here, there we have it. triple digit gain all of a sudden. it's mike pence, vice president, progress on china. susan: on china trade. deirdre: looking forward to the g20 in japan, where we have of course president xi jinping, president trump meeting. stuart: yeah. look at it go. earlier, we had news that apple
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has asked for an exemption from china tariffs. that was a plus for apple. apple is a dow stock. apple went up a little bit. the dow went up a little bit. now we've got this thing from mike pence and we are up 126 on the dow industrials. surpassing the old closing record high. it's a milestone, folks. you just hit it this friday morning. it's been an extraordinary month. deirdre: extraordinary week. yesterday, s&p 500 new record. we are going up and up. susan: the dow stocks hitting records today, walmart, visa. it's up and up thanks to also indications we are going to get a rate cut pretty soon. stuart: i want an update on the big ipos from yesterday. show me where they are. start with grocery outlet. that went up nicely yesterday, only a 2% pullback this morning. check slack. that was up very nicely yesterday. very slight pullback, just 1% down as of this morning. the overall market, put that back on the screen, please,
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because it's going straight up. now we've got the dow up 153 points. that puts it at 26,900. you are in the middle of a rally. it just started. all of a sudden mike pence says progress with china trade, up she goes. you are very close now -- well, about 100 points away from 27,000. susan: the s&p just hit a new intraday record high. assi stuart: there you go. broad-based rally all across the board. stocks up. 26,951 is the all-time high. that will be the intraday high, if you want to be technical, but 26,951. if we get past that, we have broken another dow record this morning. president trump getting ready to issue a new executive order on drug price transparency, as it's called. we will talk to secretary, hhs secretary alex azar. i want to know, this executive order, is this kind of a back doorway for the president to get something done on health care? we will ask him.
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san diego making real efforts to clean up the homeless problem in that city. they have cleared 3,000 tons of trash off the street and built a shelter. the mayor of san diego is with us this hour. president trump says he has support from the latino community because of his tough stance on immigration. we are talking to daniel garza in a moment. he says president trump is better positioned with latinos than in 2016. he's on the show after this. ♪ your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity. i come face-to-face with a lot of behinds. so i know there's a big need
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stuart: we told you that goldman sachs had lowered their price target for tesla's stock. well, now it seems they are pouring salt into the wound. deirdre: yeah, they are saying second quarter sales for tesla are as good as they are going to
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get, so this is really a backhanded compliment. really not complimentary at all, saying this is the high water mark and they are saying we don't think tesla can really execute from here. we know the model s, the model x, the model 3 and the model y which is a crossover suv, is slated to come out fall 2020, and goldman is raising questions of how much demand there will be and at the same time, as we know, tesla has difficulty with the manufacturing process of actually meeting deadlines, getting the cars where they're supposed to be on time. i want to mention as you highlighted there, we are watching the stock at $220. the $158 per share mark for goldman. stuart: goldman said they will go down to $158. deirdre: 30% off. stuart: got it. next case, the trump campaign will kick off their latinos for trump campaign with a miami rally next week. the president is not going but vice president pence will be there. that said, president trump did play to hispanic voters in an interview on telemundo.
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roll that tape. >> i want to talk to you about the immigrants. you have been very tough on them. one of the things that you did -- >> you know my poll numbers with hispanics? went up 17 points. >> well, okay. explain that. >> i have been tough. yet my poll numbers with hispanics have gone way up. we went up 17 points. you saw that. i went up 17 points because i'm tough at the border. because the hispanics want toughness at the border. they don't want people coming and taking their jobs. they don't want criminals to come because they understand the border better than anybody. stuart: you really didn't want to say that. that man is daniel garza, libra initiative president. welcome back. always good to have you on. i have to ask you, why should hispanics vote for president trump when it's widely assumed that the president had insulted hispanics right from the get-go? >> that was a projection from a lot of folks, when he first launched his campaign that obviously it was inartful, the
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language that he used, the words that he used, but since then, he has positioned himself much better with the latino community. there's more of a relationship now. there's a track record. i think latinos are seeing that he has lessened the burden of taxes and regulations, there's energy production, he has appointed judges that latinos agree with who are going to honor original intent, so i think there's a lot of opportunity here, especially because of the increases in jobs and opportunities. stuart: it seems to me he's not looking at the ethnicity factor here, it's not identity politics, it's voting for prosperity. it's voting for a growing economy. that's the appeal, isn't it? >> that's what americans are seeing. what is an administration doing to create a climate that is pro-growth, that is pro-opportunity, and that everybody is getting a square deal and equal opportunity. i think this president has shown himself to do or to advance a lot of these pro-growth policies and latinos are for that.
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stuart: we assume the latino community is monolithic but it's not. there is a mexican american vote, a puerto rican vote and also a cuban vote. i noticed that rally will take place in miami. that's the center of cuban politics in america. i think the president already has the cuban vote, doesn't he? >> well, he does traditionally, the cuban vote has always voted a bit more gop. there's no question about that. but i think it's also symbolic that he's doing it in miami because it is a gateway for the americas and a lot of folks are fleeing socialist type policies, the conditions that these kind of policies have imposed on them and have wrecked the lives of many latinos who are not coming up to america. honestly, i think that the democrats have a lot of explaining to do in their support of a lot of these sort of socialist type policies that have wrecked the lives of so many people and i think this debate provides an opportunity really for president trump to distance himself from that. stuart: what was that expression? he's got a lot of explaining to
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do? you are so right. thanks for being on the show. see you again real soon. check the -- hold on a second. yeah, look at airline stocks. there's a lot of airlines who are doing re-routes or avoiding flights in the persian gulf or around iran. susan: because of the downing of the drone, especially close to the straits of hormuz. the faa has now warned airlines, talking about all flight operations above the persian gulf and gulf of oman are prohibited until further notice due to what they call heightened military activities and increased political tension. it's not just american airlines. they canceled that flight from newark to mumbai because it has to go through and fly over that air space, but international airlines like australia's qantas and klm and lufthansa all decided to avoid that region as well. this isn't the first time we
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have gotten guidance to avoid that air space. earlier, united suspended flights from newark to new delhi because the pakistanis closing their air space. stuart: got it. look at this, please. the military division of volvo released this concept vehicle but it's for the french army. the front and back wheels can turn independently so it can move sideways like a crab. look at that. that's cool. i want one. boeing joining the push to put american astronauts back in space on american capsules. the starliner mission hopes to transport nasa astronauts to the space station by the end of this year. next we get an exclusive look at the starliner capsule. we get it all on "varney." "curiouser and curiouser,"
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stuart: boeing's starliner project aims to get americans back up to the international space station, wait for it, by the end of this year. going up soon. fox news at cape canaveral in florida. tell me all about it. reporter: stuart, spacex successfully did their first
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test flight in march and now it is boeing's turn. both of the commercial space companies that are in charge of getting american astronauts launching back to space from american soil on american rockets, both companies hoping to do that by the end of the year. boeing gave us great access inside their starliner production facility an enormous building where space shuttles used to be serviced. it's now three starliner capsules in various stages of assembly. you can clearly see the shape of the vehicles that will eventually carry astronauts to space and return to earth with big parachutes and airbags on the bottom to soften the landing on land, not out at sea. all of which boeing has tested. boeing is hoping to launch an empty capsule to the international space station by september and if all proves well, then launch a crude mission on the starliner with three astronauts on board by the end of the year. spacex was planning to launch two astronauts on its second test flight next month but that
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has now slid, possibly all the way to november, after an april explosion of the crew dragon capsule during a test. in fact, the dragon that exploded was this same capsule that successfully flew to the space station with that space mannequin ripley on board in march. boeing's starliner will launch from the united alliances pad atop a big rocket and chris ferguson will be on board the second test flight. u.s. tax payers have invested $6 billion into spacex and boeing's commercial crew programs. it's all about getting off of our reliance on russia which costs us $70 million per astronaut, and getting back to what the space shuttles used to do, launch u.s. astronauts on american-made rockets right here from kennedy space center in cape canaveral. stuart: i like the way you say that, phil keating.
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you're all right. thank you. up next, gene munster, famed technology analyst. he says apple and google are leading the charge when it comes to technology in cars. i want to know, what am i going to see on the dashboard if i get a new car in the next few years? what's in front of me? gene will tell me. hey, who are you? oh, hey jeff, i'm a car thief... what?! i'm here to steal your car because, well, that's my job. what? what?? what?! (laughing) what?? what?! what?! [crash] what?! haha, it happens. and if you've got cut-rate car insurance, paying for this could feel like getting robbed twice. so get allstate... and be better protected
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stuart: modest rally. mike pence, vice president, said talks are going okay on china trade. he was positive about china trade. that put the market up. now we're up 85 points for the dow. now take a look at slack. as you know, that went public yesterday. did very well in the early going. it's only pulled back to, what, 2% today. $37.80 is the price of slack as we speak. tech watcher gene munster's with us. he says, wait for it, slack is redefining the way we communicate at work. so, gene, is it up from here for slack stock? >> yeah, i think it is longer term. we look at this $25 billion, $30 billion type of market cap but i think that the opportunity around transforming work is
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large. today, this market cap is largely based on the ability to change communications work flow. that's what they raised money on. but in the future, the company has an opportunity to use artificial intelligence to help us direct our day. basically you put input the things you want to get done and they help you actually manage the day. for example, that 30-minute call you're doing actually should be 15 minutes and instead of spending 15 minutes on e-mail, you really should be spending 30 minutes. insights like that, nudging you in the right direction is something slack has a profound opportunity on. i think that there is -- stuart: wait a second. i'm not sure i want slack to be telling me how long i should spent writing an editorial or messaging my colleagues on "varney & company." why should i take their word for what's the best use of my time? >> the problem is because humans get easily distracted. at the end of the day, if you ultimately want to get things
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done, you need nudging in the right direction. in the past it's been through supervisors but in the future you could have an ai agent now, you may or may not take recommendations from those nudges but that's the basic concept is to help us just use our time better. that's an opportunity, untapped opportunity for slack in the future of workers. stuart: do you look forward to that, seriously? do you want a machine looking over your shoulder making suggestions about your use of time? do you want that? >> i don't want that. but i do want accountability in terms of making sure that i get my work done. i think that if there's some way that it doesn't feel like someone's looking over my shoulder, but in fact, i'm able to become more focused, that is something i would embrace. stuart: could you tell it to shut up and get off my back, i'll do it my way? can you do that? >> you simply turn it off. i think that would definitely allow you to do that.
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stuart: let's get serious for a second. you are big on apple and google and how they are integrating technology into the cars. so look forward for me, will you. if i buy a new car, say five years down the road, three years down the road, what's the dashboard going to look like? is it loaded up with apple and google technology and screens? is that it? >> yeah, it's pretty exciting. when we think about the future of transportation, this is a big area for disruption from tech. most of that conversation is around autonomy but in fact, there's a lot that's going to be happening in the actual cockpit of the car, the interior of the car. that's what you just described. i want to quickly tell you where we are today is 90% of the cars that are sold in the u.s. have an option to use carplay from apple. you plug with usb your phone into the car, then you would have a single screen. starting next year, that phone will connect to multiple screens and allow app developers to start to build around it so there's going to be some new applications. but what is most exciting over
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the next five years is when we actually have a single operating system between your car and your phone, so google and apple are both pursuing this but the basic idea would be that you enter the car and you don't even think about plugging your phone in. the apps seamlessly work and the beautiful part is when you leave the car, because the car is in fact a shared device, all that information goes, private information goes along with you. so the experience is going to be very customized, very seamless, and the last piece, just to throw out there, there will be a services layer inside of the car. think of examples of on-demand insurance, better pricing on your insurance. you could even have access, allow access of your car to a third party like amazon to deliver packages to it. a lot of exciting things happening in the interior of the car in the next several years. stuart: i'm terribly sorry, but i do not find that exciting. i find it bloody awful, frankly. the idea that i'm going to turn
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over my life and my car and my phone to -- okay. i've said enough. gene, you know what you're talking about. that's what we like about you, actually. >> thank you, stuart. stuart: gene munster, everyone. he's all right. he will be back. thank you, gene. okay. breaking news. here we go. vice president pence is postponing a speech that he was going to make on china on monday. chinese trade sources tells fox business that china was watching that speech closely to see if they will actually meet with the u.s. that's because the last time the vice president spoke about u.s./china relations, he condemned china for the oppression and control of its people. the speech, canceled. i guess that's a positive sign. i think that's a very positive sign. actually, the market's gone back up again on that news, i do believe. susan: no. mike pence also says they are making progress as well on china trade talks. stuart: so just since that bit about the cancellation of the speech came out, that's put it
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back up some more. now we are up 115 and rising. as we told you earlier, we have indeed crossed beyond and gone above the previous record closing high for the dow jones industrial average. there's something. another record. check the price of gold. it is close to a six-year high. investors see it in terms of a flight to safety because of all the problems around iran. the price of gold is pretty close to $1400 an ounce. that's nearly a six-year high. bitcoin, up to $9,800 a coin. it's a little shy of ten grand. i've got to tell you, a town in florida shelled out big bucks in the form of bitcoins to get their computers back from hackers. how much? susan: $600,000. 65 bitcoin. and it is a suburb of palm beach, so 80 miles from miami. but there was an employee who made a mistake, clicked on a link he or she should not have,
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it infested this malware into the system and this little suburb was really held hostage. policemen and firemen were writing down 911 calls with a pen and paper. for three weeks, this small town was trying to decide do we do it, do we not do it. finally they just said we need our systems to work. we are going to pay the money. they are going to be paying it from the city's insurance policy. the department of homeland security is saying this is really a very growing risk, rans rans ransomware. stuart: they hope you pay out 600,000 bucks and get your computers back. deirdre: but there's no guarantee. obviously people who do this are not exactly operating according the a moral code. stuart: the money is gone, you can't trace it. can't get it back. tax analysts are saying you know the exodus from the high tax states is about to get worse. i know it's bad. why is it getting worse? susan: this is one of your
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favorite topics. so high tax states, talking about new york, new jersey and california, looking at a major exodus. where are they going? florida, texas and nevada. if you take a look at the individual one way, it looks like florida, of course, is the most popular place for a lot of these shall we say high tax refugees. last year, florida saw movers of 63,000 coming from new york, believe it or not. that's the biggest one-way shift from new york to florida. new york has the third largest outflow of any state, 450,000 left new york because of the high taxes and a cap on salt. don't forget, california, another high tax state, has the largest outflow of domestic residents. where are they going? texas, arizona, washington. stuart: why am i not surprised? susan: they have no income tax. deirdre: especially when you own your own business and can move. stuart: more news on new york. are you looking for a new brooklyn pad? are you a fan of hip-hop? notorious b.i.g.'s childhood
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apartment is up for rent. $4,000 a month. it's in the clinton hill neighborhood. three bedrooms, one bathroom, hardwood floors, a barbecue area outside. by new york standards, $4,000 a month? that's pretty cool. deirdre: there will be a lot of interest in that. stuart: i think there will be. listen to this. los angeles trying to fight homelessness with more taxes. they want to tax landlords for every vacant room in their buildings. that's one idea. coming up, we are talking to the mayor of san diego. homelessness is actually down in his city. what is he doing? is he taxing landlords? i don't think so. we will ask the mayor. the department of health and human services wrote a letter to congress with the department of homeland security urging them to address the humanitarian crisis at the border. they want money. are they going to get it? we have secretary alex azar next. oh, yeah,
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stuart: yes, there is a crisis on the border and congress has still not approved the administration's $4.5 billion request to address the crisis. well, today secretary of homeland security and health and human services sent a letter to congress saying look, the situation is dire, we want the money and we want it now. alex azar, health and human services secretary, is with us now. can you paint a picture here of how bad this crisis is and explain to us and our viewers why nothing's being done about it, why you can't get the money? >> stuart, it's exactly what you said. it is a dire situation. we have got kids who come unaccompanied across the border and they are coming across this year double what they did last year, and so by july, we are going to be out of money to take care of these kids. we have to shelter them, then we
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have to find them sponsors here in the united states as quickly as possible but we are going to be out of money. congress has got to pass an appropriation immediately to make this work. it is not about politics. it's not about immigration policy. it's not about gamesmanship. they just have to do this. stuart: with respect, mr. secretary, it is about politics. the democrats are unwilling to give this money because they don't want to see a single win for president trump. i think i'm right. >> i don't want to sell this as a win on either side. this is really a humanitarian issue and the senate has been working in a bipartisan way, the house is working, we hope next week. we just hope we will be able to get a single package through next week immediately. we have got to fund these shelters. stuart: you are a diplomat but i will move on. okay. president trump is going to sign an executive order monday. it's about health care price transparency. can you explain what that is? >> well, stuart, i make it my business to not preempt the president of the united states
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but let me just say the president did say recently that something big was coming in the next couple of weeks on health care, and i would take him at his word. stuart: is this the way that the president is kind of doing back door health care because you can't get something through congress, so he uses executive orders? is that the strategy? >> well, as you know, we have been driving through change using our administrative and regulatory powers, we are decreasing drug prices, creating more affordable health insurance options for people, decreasing the cost of health care, and we are doing that using the authorities that i've got in consultation and at the direction of president trump. he's achieving all of those objectives using his powers. now, we would love to work with congress, like on drug pricing. we are working on a bipartisan basis with the house and senate trying to get a package through but we are charging ahead with our own authorities and plans at the same time. two-track approach. stuart: can you tell us definitively that you are making progress getting the cost of
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drugs down? >> absolutely we are. for the first time in 46 years, last year, the official measure of prescription drug pricing went down. we saved tax payers $26 billion just in the first 18 months of this administration from our generic drug approvals. we are charging ahead, we are getting drug prices down and much more is coming. stuart: i wish you could get that out there, mr. secretary, because i don't think many people understand or know what -- how successful you have been. what are you going to do about that? how do you get that out there? >> well, thanks to you, we get a lot of the messaging out about the fact that we are just driving these changes. you know, just this morning you may have noticed in the official regulatory data base here at the white house, we sent over to the white house a notice of proposed rule making to set up an international pricing index regime to decrease the price of drugs here in the united states. now, i can't go into detail on that, that's about all that's known is we sent something over here to the white house for
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review, but president trump you will remember came over to hhs and said we are going to end this foreign free riding. other countries are buying their drugs at terrific discounts and in this one part of our program, we are not getting discounts. we are going to end that foreign free riding and stop having america's seniors propping up the socialist systems abroad at their expense and we are continuing to act. stuart: i think what you are doing will play quite prominently in the 2020 election. alex azar, thank you for being with us this morning. we appreciate it. thank you very much. chief executive at google, sandar pichai, announcing they will be funneling about $1 billion into the bay area over the next ten years. this is to build affordable housing. they are looking to build 200,000 units when all is said and done. that's google on housing. still on the same subject, in california, i'm turning to san diego now, homelessness is down. there's less of it, 6% less of
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it, so to speak, compared to last year. they built shelters, they cleared off the tents from the streets, they reunited nearly 1,000 homeless people with their family members who live outside the city. we are going to talk to the mayor of san diego, next. ♪ the lexus es... ♪ ...every curve, every innovation, every feeling... ...a product of mastery. lease the 2019 es 350 for $379/month for 36 months. experience amazing at your lexus dealer.
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stuart: there is a homeless problem. homelessness problem, in california, los angeles, san francisco. they have seen their homeless population grow exponentially recently. but in san diego, it's a different story. we have the mayor of san diego with us, kevin faulconer. your honor, welcome to the show. good to see you. >> good morning. thank you for having me. stuart: you have been saying, i believe, that the homeless population is down, i think 6% in your city year on year. tell us how you did that. >> well, it's down 6% county-wide. it really is about challenging the bureaucracies that have been entrenched in the status quo and doing things differently. one of the things we're doing in san diego that i think is really having a dramatic effect of getting people off the street is we have established bridge shelters with help and
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wrap-around services, a center that's helping clean up our streets and sidewalks and really, a sense of an overall attitude that says a sidewalk, a tarp or a river bed is no place for a home. stuart: that's what i want to pick up on. i would imagine that the aclu, american civil liberties union, would have given you a very hard time about denying people their right to sleep and stay on the street. did they give you a hard time? >> you are always going to get folks that want to push back but i say to some of those folks, we are giving people help and support. that's what these bridge shelters are all about. we are also going to enforce our quality of life for our houses and our neighborhoods. you want people to get off the street. we need people to get off the street, particularly those that have mental health issues or substance abuse. so providing the help, the wraparound services is incredibly important but also, as i said before, the enforcement that says this is what we are going to accept and this is what we are not going to accept. stuart: how much did it cost? can you give me kind of a
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budgetary number on how much it cost to get your homeless population down? >> well, i tell you, we are spending more money than we ever have because we need to. we still have a lot of work to do in san diego. stuart: are we talking tens of millions, sir? i have to ask. >> yes, we are indeed, stuart. i will tell you, it's money well spent. i just signed our budget yesterday, over $3 billion in san diego, and one line item alone for helping to clean up our sidewalks, remove trash, is $10 million. i feel strongly about this. i feel passionately about this. that's how you have to run a major american city. we care about the cleanliness, we care about our environment and we care about getting people off the street and ensuring that that's happening. stuart: i know san diego very well. it is a beautiful city. it's always 72 degrees and sunny. if i'm going to be homeless i'm coming to you. serious question. california is a sanctuary state. you welcome illegals into the state. how does that -- how do you balance that when you've got a homelessness problem?
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i would have thought illegals add to it. >> well, there's a whole host of policies that unfortunately happened at the state level but what i try to do is focus on what we need to be doing in san diego. again, you have to have political will. you have to say here's what we're going to do. stuart: are you a sanctuary city? >> we never have been. no. stuart: why not? >> we take the balanced approach that i thought was right for san diego and right for the state. stuart: you are off base with the rest of the state. everywhere else is sanctuary city. >> well, i think we're doing the right thing. stuart: are you doing the right thing? >> we are helping people, we are helping our neighbors but most importantly, we are doing the right thing for our entire city. we see the results that it's working. stuart: are you a republican? >> i am indeed. stuart: there you go. why didn't you say that from the get-go? your honor, come on. >> well, look, i appreciate that. but some of these things i think are common sense. it's not about partisanship. i'm trying to do the right thing and show in real results and i think people are realizing that.
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as i said before, we have a lot of work to do but we are headed in the right direction. stuart: you've got a lovely city. i'm glad you're preserving it that way. it was an honor to have you on the show. i hope you will come back, sir. thank you very much indeed. >> look forward to it. thank you. stuart: thank you, sir. all right. by the way, it is the official first day of summer. that means it's the longest day of the year. we marked summer solstice just a few moments ago, at 11:54 eastern time, the moment the sun is at its highest point in the sky. just went past it. it's now summer. we'll be back. ♪
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stuart: the market is modestly higher, 6point up. i got to tell you earlier today, the big question was why did president trump stand down, back
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off from the retaliatory strike against iran, just as that strike had gotten started? general jack keane was on the show earlier this morning. he explained it. his explanation has been picked up by a variety of news sources. now susan, tell me, what did he say? susan: said president trump was told the iranian national leadership was furious with the tactical commander that shot down the drone because they clearly did not want that provocation to take place. so it was untensional as president trump said that yesterday. stuart: jack keane told us, intel from the white house, the iranian high command was furious at the local commander, launched whatever it was that took down the drone. susan: right. stuart: as soon as the p found at that out, pulled planes back, pulled ships back, the strike did not take place. susan: yes. stuart: the president tweeted he didn't want a lot of casualties as well.
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coming up a little later on fox business network, this man, peter navarro, a very important interview. he is a hard-line trade kind of guy. he is on with charles payne this afternoon. my time is up. here is neil. neil: stuart, thank you very much. have a good weekend. we have developments on trade. took one canceled speech from one president of the states got tongues wagging that a deal could be happening with china. we don't know that for sure. dow is in record territory. s&p 500 already is. any gain would be another record. blake burman at white house with more on significance of the vice president canceling this china speech. what do we know, blake? reporter: we know the vice president was supposed to give a speech on china next week but senior administration official told me that speech will no longer happen. here is the significance of


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