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tv Varney Company FOX Business May 22, 2018 9:00am-12:00pm EDT
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tht. maria: great show, everybody, thank you so much, dagen, jon, connell, good to see you. have a great day varney & company begins right now. stuart, take it away. stuart: good morning, maria, good morning, everyone. are you ready for another dose of optimism? here it is. more progress on trade, china lowers tariffs on car parts, the u.s. drops sanctions on zte, phone maker, hard liners will not like this, investors do. you can't use the words trade war if the two sides are talking and making deals. that is progress. item 2, gallup poll with economy strength, 67% believe it's a good time to find a quality job. trump gets the credit for this. throughout the obama years, that number never moved above 50% and all income groups are sharing the optimism on jobs.
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item 3, the market, it's going up again, the dow gained nearly 300 yesterday, it's back above 25,000, it's now only a few percentage points away from all-time closing high of 26,600 and just wait till you see those tech stocks, what they are doing today, apple is very close to that trillion dollar valuation. varney & company beating cnbc every week for a year straight. [cheers and applause] stuart: it was nothing. varney & company is about to begin. [laughter] stuart: all right, settle done, everybody. [laughter] stuart: serious stuff. today president trump meets south south korea's president moon jae-in, south korea's, president, emac, is here here to
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save the summit? liz: yeah, north korea made comments that it could delay the summit after national security adviser john bolton says north korea should live with libya model. you know, threats that they may delay it. but now they are on to the south korean leader with the president to talk about it in three weeks it's happening in three week's time, the summit, here is a thing to watch to see if it is still on, will north korea, this week or next blow up and get rid of it's biggest nuclear testing site, the one that collapsed after multiple nuclear tests, will they do that? they are expecting international observers, journalists, a key signal that it is on, they will go ahead with it if north korea does that, collapses testing site. stuart: now we have mark zuckerberg, he's over at europe, in brussels, over there on what people calling an apology tour.
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ashley: european leg of the apology tour. invited by the eu parliament and what was interesting at first it was announced that that was all going to be behind closed doors, didn't sit well with the europeans and now it's being streamed live so you can actually watch it later on today. we have a little excerpt of what he's going the say and sounds awfully familiar, whether it's fake news, foreign interference in elections or misusing information, we didn't take a broad enough view of our responsibilities that was a mistake, i'm sorry. that's the basis of what he will be saying. he will be adding 3,000 employees across 12 european cities to look to continue to work on privacy and use of data. stuart: stock not affected. ashley: no. stuart: back to 186, record high is 195, no impact. ashley: he dead will in congress, if not robotic and now taking this same message to europe, hasn't hurt the stock at all. stuart: they can self-regulate rather than submit to draw --
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dcaconian regulations. >> you're talking europe, though. [laughter] stuart: overall market, tuesday morning, i believe, we will be up 40 points on the dow, 20 points on the nas darks look at oil, that's an interesting case there. we've got oil at a very close to a 4-year high, well, above $72 a barrel. severe sanctions on iran announced yesterday are moving up the price of oil. now, the big rally yesterday, 300 points almost, the treasury secretary steve mnuchin said the trade war was on hold. that helped yesterday. china is lowering tariffs on imported cars and we are ending sanctions on zte, the chinese phone maker. come on in economist peter mauricie base you think china is winning and you're a hardliner? >> yes, i've became an economist because i'm never happy.
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[laughter] >> really what this comes down to is the middleman of the trade wilbur ross neither, you know, in the navarro camp or kudlow camp is the man they are sending to china to negotiate the deal. the real deal across the broad scope of manufacturing and high-tech which would have really ultimately abate the tariffs and the trade war. we have to see what he brings back. but clearly, mr. trump has got the chinese attention and i think that's a good thing, let's see if wilbur can bring something other than a weak deal. stuart: this is important. china is committing, according to larry kudlow, he will be on fox business later today, he's been saying china is committed to buy 35 to 40% more from farmers, extra $8 billion a year. now, not sure whether to call that a concession or not but they are certainly talking and making deals. >> they are, but not making deals in the places where we really need the most. stuart: not yet, peter.
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>> i understand, that's why we have to see what wilbur brings back. the important thing is that it isn't secretary mnuchin that's doing the negotiating because frankly he just doesn't believe, wilbur ross is a manufacturer, he does, there's a big difference. he also better understanding of how trade policy can be used to manipulate industrial structure. mr. mnuchin is a financial guy, good of foreclosing mortgages, this is not expertise, he should not be the one doing negotiating, so let's see what wilbur brings back to confirm your optimism. stuart: all right, the only person that really counts is president trump and that's a fact. i have to move on, peter, you know how fast we move in this award-winning show. >> by the way, you have kudlow on fox now, don't you. stuart: 4:00 o'clock this afternoon. we are fox business, come on. a new gallup poll, 67% say it's a good time to find quality job, best percentage since gallup
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began asking the question in 2001, what do you say about that, peter? >> just goes to show you when the government gets out of the way, the american ingenuity and sense of enterprise can accomplish great things. basically obama was running a bologna factory, he was giving bologna to workers. what donald trump has managed to do is to get ordinary working people better opportunities in the workplace, it's certainly like the 80's and 90's but it is better than it was. this is like people coming out of a sleep and they feel better. this is not the kind of job market we had in the 20th century but decidedly better and if it's a testimony of if you'll excuse me supply side economics. stuart: we got something positive out of you, peter, out of time, thanks very much,
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indeed. >> take care. [laughter] stuart: see you later. all right, i want to talk about immigration because iowa republican steve king has introduced the libby shaft act, leaders of sanctuary cities could get 5 years of prison time for tipping off illegals for ice raid under the bill. all rise judge andrew napolitano is here. is that constitutional? >> i don't think so and the courts are most reluctant to punish speech. i mean, in order to punish speech you must first exclude all lawful bases speech, if she wanted to keep a family together and made the statement, that will be a lawful basis which i think it's unconstitutional. it even uses the word and this is terrifying, it would pertain to us, broadcast, so if i come on your show and say there's an ice raid going on and i give the neighborhood, i under the statute or you if we engage in
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this or fox which is the actual owner of the broadcast equipment could be prosecuted. i think it's really a political statement that congress is trying to make. i understand the statement, i understand -- i have spoken to these people. i understand the frustration that law enforcement particularly ice feels when the locals can't help them and when a mayor says, hey, is ice is coming in such a street corner and such and such time, if you're not supposed to be there, take a hike. i understand that but this is not the remedy. stuart: if you say the feds are coming, watch out, no problem with that, but if you say the feds are coming, the feds are coming and you go to the home of and illegal and you bar the door and stop the feds coming in, that you cannot do. >> that's already against the law. we don't need the statute for that. this statute does include that, repetitive of what's already the law. the real -- point to my iphone. [laughter] >> this proposal targets speech
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and for that reason i think it's unconstitutional on its face. the court doesn't even have to look to see how it's applied, they can tell it's unconstitutional from reading it. stuart: let's get this straight, you are on the side of the law, i've got that and the constitution, but politically are you on the side which says, hey, ice should be allowed to go and arrest illegals and deport them? >> yes. stuart: okay. >> yes. that's what the law says. can she warn them, as long as she only uses speech, as long as she doesn't use the oakland police to block them, as long as she doesn't hide them in the basement of city hall, if i'm on a street corner and i see ice coming and i warn people up the block, i can be prosecuted for that speech, come on, this is america. stuart: i'm with you. [laughter] stuart: this one i'm with you. see you again soon. >> you've got it. stuart: a headline that you may have missed.
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china lifting the rules on family size, they are considering allowing as many kids as chinese family wants. we will speculate on why they are doing that. more and more local cops want military cars, company ramping up production thereof not without controversy and we will deal with that in just a moment let's begin.
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stuart: look out below, jc penny stock sinking, 8% lower, why? the ceo marvin ellison has left the company, he's going to lowes. penny's low, lowes up. ashley: back in 2015 president obama put ban on access of military grade gear and equipment by local police departments, the trump administration has lifted that, why is it controversial, because it gives the impression that
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it's an occupying force say critics, that it's over the line, hard to get a dialogue between police and the community when you roll out military-type equipment like that, however, on the other side people say, look, we have to do everything we can to keep police safe from violent and very dangerous situations and occasionally situations warrant that kind of military equipment. stuart: nobody wants to see our police officers attacked and killed, nobody, but at the same time i worry when i see the army rolling down the streets. not good. okay. there's something you have not heard about which is very important. china scrapping birth-rate policy, kristin, senior adviser to several republican administrations is with us this morning. what's this about, they don't want more population, do they? >> two things are happening, population has largely stabilized, always happens because of development, they are
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in for real demographic troubles. skew of way too many males, retirement policy is oldest son, women live longer and many decades where you can only have a child, women tended to abort, women babies in order to have that retirement policy, you end up with a lot of them and too few women. stuart: this is a problem worldwide in developed societies, as you get more wealthy, people have far fewer children but you've got an aging population so you don't have enough workers to support retired people who need the health and pensions benefits paid for by workers, china is adjusting to a worldwide problem here. >> it is, the problem is most acute in places like russia and south korea. you want fertility about 2.1 children per woman and to maintain population in south korea you see about half of that. the united states in obama years
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dipped below replacement rate of 2.1 here but we are no where near as dire places like south korea, japan has low rate too. stuart: one of the super tanker kind of policy developments, takes a long time to change the policy. it's true worldwide, demographics are a real problem. do i want you to address this south korea's president moon jae-in who is in washington holding a meeting with the president today, does this summit, i mean, that's what they will talk about, the summit, does it have to be saved, is that what he is here for? >> i think it's more planning. we have actually do a lot of planning with south korea, hostile rough with the center-right government in the u.s., we've gotten through the trade issues with the u.s. agreement, we are sitting pretty there. i think it is just, you know, we finally see the north koreans pushing down, laying down markers of what they will agree to, we have done the same, taking kern -- certain things
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off the table, probably discussing tactics of june 12th summit in singapore. stuart: we hear it will take place if north koreans demolish test site? >> i think it's more complex. one of several good signs that they are serious. ultimately, yes, it's good if they remove the equipment, blow up the tunnels and attics, positive step and continue suspension of testing nuclear weapons and ballistic missiles, all those things add up to positive signs. stuart: bottom line, christian, the meeting, the summit does take place, yes? >> i think so. i think it happens. stuart: got it, thanks for joining us, appreciate it. they are the newest stars for netflix, president obama and michelle. brand-new shows streamed right to your living room, are you ready for that and what does it
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do for netflix stock? more problems for tesla, consumer reports give the thumbs down, the car literally having trouble stopping, there could be a fix, full details next. insurance that won't replace the full value of your new car? you're better off throwing your money right into the harbor. i'm gonna regret that. with new car replacement, if your brand new car gets totaled, liberty mutual will pay the entire value plus depreciation. liberty stands with you. liberty mutual insurance. with dell small businessout your technology advisors you get the one-on-one partnership you need to grow your business. the dell vostro 15 laptop. contact a dell advisor today. same thing with any dent or dings on this truck. they all got a story about what happened to 'em. i could feel the barb wire was just digging into the paint. two bulls were fighting, hit the truck.
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stuart: consumer report says it cannot recommend tesla model 3, why not? liz: worst than any other car when came close to breaking, longer distance for it to come to that full stop than a giant ford f-150 truck. car and drivers separate from consumer reports said they've never seen anything like this, no car sued out, acting like trucks, longer to break the model 3. stuart: it's easy to fix, you need the software. liz: they are going to do a firm software fix over the air beaming it in to tesla model 3's, there's another problem, touch screen according to consumer reports, no gauges in the car, all in touch screen it's distracting consumer reports say, people take one hand off the wheel to deal with the touch screen. stuart: mick murphy who i don't think will touch tesla with a
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ten-foot pole. mike: i believe tesla still have capital issues. they will need to tap the markets to raise more money, elon musk out promoting the company as often as he is and now saying he won't need to raise money kind of -- i don't like those signs. stuart: up 3 bucks. hold on a second. i have to deal with this, netflix, they signed a multiyear with the obamas, ash is this good or bad for netflix? >> personally i think it's good, we don't know how much they are being paid. they created a production company the obamas called higher ground productions, unscripted, scripted mini series, documentaries, won't see anything until the early of next year, but to be honest with you, yes, i do think it's a good thing for netflix, more content. stuart: president obama is popular. liz: i'm wondering what the content is going to be.
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they binge watch entertainment and not going through lectures. maybe he'll do a health show. you can keep your doctor -- [laughter] liz: financial show, you didn't build that. [laughter] stuart: sarcasm -- [laughter] stuart: i don't know whether you ever liked netflix or invested in it? mike: we did when it came under 200 a few months ago. we talked about live on the air, way too soon. we have no position right now in netflix but this is very interesting. i think netflix is getting to the point where, yes, they are spending a ton on content but seems like they are crossing the bridge that i don't think tesla will be able to cross but all the money they are spending is bringing in so much revenue to them they were able to hike prices for everybody and nobody dropped the service or actually still getting more global users, positive -- liz: i don't know. they call themselves higher-ground productions that's pride there. stuart: i have 15 seconds before
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we go to black. [laughter] liz: sorry. stuart: dow will be up 50 points when we open for business today. you know, we are about 1600 points shy of the all-time record high. we will be back. your company is constantly evolving. and the decisions you make have far reaching implications. the right relationship with a corporate bank who understands your industry and your world can help you make well informed choices and stay ahead of opportunities. pnc brings you the resources of one of the nation's largest banks, and a local approach with a focus on customized insights. so you and your company are ready for today. ♪ with expedia you could book a flight, hotel, car and activity all in one place. ♪
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stuart: a pretty good monday morning, pretty good monday afternoon as well. we were up nearly 300 points, the dow closing above 25,000. we'll open this market this tuesday morning, we're expecting a gain of 40, maybe 50 points. so onward and upward, and here we go, we're off, we're running. where are we opening? we're up 29, 32, 33, 34, 34 points up with a majority of the dow, the dow 30 that would be, on the upside. so we've got a gain now of 45 points, almost .2%. how about the s&p 500? where's the opening there? same story, up .2%. nice gain there. how about nasdaq? a stronger rally there, it's up a thursday of 1% at 27 points higher. okay, look at ap apple, please. that's generating a big move for the nasdaq and for the dow too, actually. it's not too far from an all-time high, $188 is where it is now. not too far away from a trillion dollar valuation either.
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you've better check microsoft, it's approaching $100 a share. a little bit shy at the moment, $97.74. as for the rest of the five big techs, let's see where they are this morning. i believe they're all higher, yes, they are. facebook's up. zuckerberg's testifying in brussels, amazon's up, apple's up, microsoft is up. who's joining me this tuesday morning? liz macdonald, ashley webster, yes. d.r. barton is here and the aforementioned mike murphy. d.r., to you first. is this the gunnings or have we -- the beginnings, or have we started to see the second leg up on this market? >> yeah. i can't say this is the start, stuart. we had bottomed out, we talked about hitting a key support level the market loved every little bit of the trade war that goes away propels the market higher. we have so many good things happening globally and locally with earnings. this is the next leg up. stuart: okay. i've got 3.06% on the screen,
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the yield on the ten-year treasury. mike murphy, interest rates no longer a heldwind for the market? >> -- headwind for the market? >> as interest rates are going higher, they're going higher for the right reasons. they're going higher because the economy is performing, the economy is growing. we're seeing stimulation there that's finally coming to the forefront. is so now interest rates can go higher. they can go all the way up to 3.3, 3.5%, and as long as that's supported by growth in the economy, it won't derail the market in any way, shape or form. stuart: both our market guests are saying we're up from here on out. okay, good stuff the. starbucks, well, they say you don't have to buy something to use their bathrooms. some, though, are wondering if that's a good idea. >> yeah, social media's just lit up over this issue. we talked about it yesterday, you know, the starbucks in times square, the bathroom should be declared a superfund site. [laughter] especially in urban areas with a large number of homeless population and the mentally ill,
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the fear is these will become drop-in centers for everybody not only threatening the safety of employees, but customers as well and, ultimately, will force customers to go elsewhere. if you're not going to have any rules in place, it is going to become, some fear, a place where drug activity and everything else will be very common. stuart: have you got an opinion, liz? >> well, a police officer was assaulted in a starbucks here in new york city, so it's a law enforcement issue as well. >> and, ash, to clarify, they did expand on the statement. no drug use and no sleeping in the starbucks. >> right. >> you can go there, you can use the bathrooms, but you can't -- [inaudible conversations] >> and it's tough on the workers to have to police that. >> they do have a code of conduct, but it's tougher for them to get police action if something bad comes along. i think this is an overreaction by the company that will pull back. we're seeing the stock, people are not reacting -- >> just focus on the coffee. >> we don't believe they're going to --
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>> just telling somebody no drug activity doesn't mean there's going to be no drug activity, that's the problem. stuart: vigorously encouraged social policy. come on in, talk about race, talk about this, talk about that. >> right. stuart: well, there's a downside to that. >> yes. stuart: okay. more google fallout. millions of iphone users are suing google for collecting their personal data. is this bad for the stock? it doesn't look like it. the thing is up -- >> iphones are thought to be really secure. so, basically, the algorithm can track your browsing history and your location, circumventing the iphone-secure modus operandi. >> so google's not no right to the information i put on my phone, but they get it anyway. >> but they get it. >> well -- stuart: why isn't the stock down? >> when you sign up to use those google services however, stuart, you have to allow them permission to do that. so that's why there's no big reaction to this.
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this class action suit. i'd be surprised if it's successful. stuart: okay. >> money grab for lawyers. >> there you go. stuart: money grab for lawyers, four words of great importance. thank you very much. [laughter] cole's, now, they -- kohl's gave a rosy outlook, we find this company is partnering with a media and technology company called pop sugar, they're going to create a clothing collection aimed at millennials. make of this what you will. >> yes. so i think i'm going to surprise you here. i think this is a good move for the company, because when you think of kohl's, you think of older women, middle-aged women. pop sugar a company, last valuation was roughly $600 million. it uses technology to go out and get a lifestyle brand for younger consumers. so if this can help them get younger, millennial-type women into their stores, it's a good move. stuart: the stock is actually
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down because they blamed the weather for some problems with sales, so that's separate from the pop sugar story. >> correct. stuart: thank you for that information. [laughter] i'm going to stay on retail because of the parent of tj maxx and home goods reported higher sales today, up 12%, by the way. company's dividend increased by 25%. do you like this tj maxx? >> i really like tj maxx, i've been on the bandwagon for three years now. the well-run discounter, discount retailer. and the big dale here, stuart, was same-store sales numbers were strocker than expected. -- stronger than expected. i think it's a good place to continue to be. stuart: even i recognize bargains. >> and net profit margins are beating walmart and target. stuart: on the other side of the copy, we have sears. 31 sears and 9 kmarts will be reportedly shut down by august. there's not much left. >> well, here's the problem -- >> not much left. >> -- their debt on the balance
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sheet swamps its market value. that's all you need to know about sears. will amazon throw sears a lifeline because they're putting more products on amazon. stuart: we've got a new -- it's not a new technology company, but it's one we don't mention very often. it's the chipmaker, micron. not a stock we talk about, but it is buying back shares bigtime. i think it's buying back $10 billion worth? >> yeah, right. stuart: biggest buyback ever. and this stock this morning is up 7%. it was up bigtime yesterday, i think. >> yes. stuart: one of the -- >> a company to keep your eye on. we've been in it since $16. what they do, they have the two kinds of memory. one, you need power, one you don't. so the ones you put in your cell phone you don't need memory, they're up and comers there. they have the cash cow business of the cloud, the servers. they make 20% of that memory. a company we don't know much, they're the seventh biggest
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company in microchip sales. they are going to continue to be a juggernaut. stuart: say that again. in the cloud business they make 20% of the -- >> of the memory chips that are used in all of those servers around the world. stuart: that's the end of the story. >> and there's a demand for chips and the cryptocurrency market needs more memory chips and the gaming market and the internet of things, the smart home -- >> which are the new, higher margin chips that mike's talking about. stuart: where were you when this stock was rising and rising and rising and we never heard anything about it from you? you let us down. [laughter] i take that back. look at that chart. >> i talked to you about qualcomm. stuart: yes, you did. [laughter] and you like microsoft. >> love microsoft. stuart: all right. we're up 26 points. not exactly a huge move. i do apologize, mike, i'm very sorry. you're a hell of a guy. up 23 now, still above 25,000. better sales at the retailer autozone, it is making money, and it's reflected in the stock.
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it's up $32 right now, closes to a 5% game. cracker barrel -- >> the way you said it. [laughter] whatever that was. stuart: you'd think i've been drinking, right? i've not. looking down the road, it sees higher costs. where was it? up or down? i think it's down, actually. don't ever forget about apple. the stock is at 188 this morning, 188.65, awfully close to an all-time high. is it 195 it becomes a trillion dollar company? >> yeah. stuart: what do you think, just a matter of -- sorry, 205, if it hits 205, it's a trillion dollar company. >> yep. stuart: it gets there? >> for certain. stuart: no question about this. >> first, gets there first. >> much before everyone else, before the end of the summer. stuart: before the end of the summer, okay. it's 9:40 eastern time. you know what that means, i've got to say good-bye. gentlemen, thank you very much, indeed. all right, now the gain, we
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were at 50 plus, now we're at 15 plus. still just above 25,000. we have a problem here at home in america, that would be, a trucker shortage. we can't fill the jobs, and that means goods will get more expensive, and drug testing could be playing a big role in why we don't have enough truck drivers. we're going to discuss that, maybe changing the rules. ♪ ♪ how do you win at business? stay at laquinta. where we're changing with contemporary make-overs.
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used for batteries frome teexpired oil wells. mgx's new - pilot plant aims to produce lithium-carbonate one hundred times faster than from conventional lithium brine. mgx minerals stuart: it is a gain, but it's extremely small this tuesday morning. after, what, 12 minutes' worth of business, we're up just about 10 points on the dow industrials. we have sony now is the world's largest music publisher, the biggest of them all.
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what's going on, nicole? >> that's right. paying out for emi and they'll become the world's largest music publisher with this move, taking over emi. the ceo of sony making this move as a new ceo, a huge acquisition. this gives them content, intellectual property for long-term growth. that's what they're saying and that's what they're going with. you can see the stock is to the downside is today, but it'll give them over two million songs including the beatles, your favorite! over the rainbow, pharrell williams. back to you. stuart: it wasn't just the beatles, it was bob dylan as well, michael jackson in there too, emi, marvin gaye, let's not forget. thank you very much, nicole. you got the beatles in there, well done. hawaii, we have new pictures of the eruption on the big island, and the pictures come from the international space station. ash, take us through it, please. >> yeah, this is day 19 now since the eruption. we have the pictures of -- there
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you go. stuart: that's it. >> i mean, that says it all. you can see it from space. as i say, 19 days and counting. the fear now is that the lava is moving towards a geothermal plot on the big island. that could result in the release of some very dangerous gases, hydrogen sulfide. this hydro geothermal plants operates with heating up water. the steam generates the power. if the lava gets in there, there's a real concern now that will create a large, dangerous gas cloud. up until now i will say that the clouds have been, you know, with sulfur dioxide and glass particles, the winds have been very kind and pushed all of this out to the ocean and generally escaped any population. but they warn that could change very quickly, and the fear now continues to be being cut off, and they have no idea how long this could go. stuart: right. >> it's showing no signs of slowing down. >> ash reported this really striking story about a man on a third floor balcony, got hit
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with a piece of lava. it had the force of a refrigerator, and it shattered his leg. that's how dangerous -- >> lucky to save his foot. stuart: what a dreadful story. all right, okay. here's a theme that we've been running on this show for a long time. we have a trucker shortage in this country because many candidates for trucking jobs can't pass a truck test. the chief executive of a minnesota transportation company says she's warning customers deliveries will take up to two weeks when they used to take only a couple of days. andy puzder is with us with america first policies. andy, should we change the rules on drug tests for truck drivers? after all, marijuana is legal certainly in colorado and several other states. can you tell me that if you smoke some weed on a monday you shouldn't be able to drive a truck on a wednesday because you will be impaired? i don't think you can say that. >> well, you really can't say that, and we don't require that truck drivers abstain from
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alcohol all the time -- stuart: no, i'm talking marijuana. >> yeah. i'm saying -- stuart: can't pass the marijuana test. >> right. but if you want to use the comparison, we don't require that they not drink while they drive. we do require they don't drink while they drive, but not that they don't drink at all. same thing with marijuana. if you've ever been caught smoking marijuana, you never can be a truck driver, i don't know that you can require that. i'm sure glad we're talking about too many jobs and not too many workers. this is a very good problem to have. look, the fact of the matter is there are more truckers, there are more people working in transportation now than have ever worked in transportation, and there's 290,000 job openings. same thing with manufacturing. you've got 390,000ing job openings and more people working than they have since december of 2008. and construction, you've got 250,000 job openings and more people working than they have since june of 2008. so there are a lot of jobs out there, a lot of good working class, high-paying jobs,
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trucking being one of them. but i agree with you that we should look at these drug rules to make sure we're not keeping people out of the labor force who really would want to work and would be qualified to work. stuart: the starting salary for a trucker at a significant transportation company is $125,000 a year. i'd hate to see people kept out of those jobs because a couple of weeks ago they smoked some marijuana legally. anyway, i want to move on because what you were saying about jobs is germane to the next story. it's a gallup poll. 67% of respondents think this is a good time to find a quality job. that's the highest percentage responding like that in 17 years. this is a growing economy with jobs to spare, that's what it looks like. >> well, not only do you have -- for the past three months we've had over 155 million american working. that's the most americans that have been working in the history of the country. we also have 6.6 million job openings. that's the most job openingses in the history of the country,
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and there's only 6.6 million people that are classified as unemployed, in other words, they haven't looked for a job in the last 30 days. so there are a tremendous number of jobs out there. this is really an economic boom that i think is being underreported. meshes -- americans are finding better paying jobs, and there's more of them. stuart: the media has only contempt for the trump administration, but, you know, the good news seems to be penetrating. if you've got 67% of regular folks saying, hey, this is a good time to get a quality job, then the really good news about the economy has penetrated that media blanket that covers it up. >> and if you look, even if you look at the president's approval rating going back to january of this year, or it was down around 37, 38%. now it's 43, 44%. and it's a pretty steady climb. so you're seeing people are realizing that, look, these capitalist, free market policies -- cutting taxes, reducing regulation, focusing on
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domestic energy -- are in everybody's best interests. the socialists, progressive policies that obama and bernie sanders implemented and want to implement don't really help people. they increase income inequality. we're seeing income inequality, it's going to come down because you've got these great paying, working class jobs that people can now take. this is, you know, the economy's booming. this is a very bright future for this country. stuart: what is the name of your new book, the capitalist comeback, was that it? >> thank you, stuart, it was the capitalist comeback, and i do cover this in the book. stuart: yeah, you got it right. [laughter] andy, thanks for joining us, sir. see you again soon. >> thanks, stuart. stuart: market scan, that's where we call it, where you can look at all the dow 30. it's a pretty even split between winners and losers, the dow's up 6. new report from china, it says eating eggs helps your heart. dr. marc siegel on that turn around, because when i was a kid, they were bad for you. [laughter]
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in 24 hours, you'll send him off thinking you've done everything for his well-being. but meningitis b progresses quickly and can be fatal, sometimes within 24 hours. while meningitis b is uncommon, about 1 in 10 infected will die. like millions of others, your teen may not be vaccinated against meningitis b. meningitis b strikes quickly. be quick to talk to your teen's doctor about a meningitis b vaccine. welcome to holiday inn!
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egg a day may lower the risk of heart disease. well, look who's here, dr. marc siegel himself. doctor, just a generation ago, 20, 30 years ago, eggs were bad. they give you heart problems. now they're okay, eat one a day. what's going on? >> that's too simple. [laughter] stuart: no, it's not. we had all this good advice from the foodies -- >> they've got a lot of high protein, they've got too much cholesterol, 200 milligrams per egg. how do you sort that out? well, in china, actually, people are leaner than us, stuart. they're not as obese, they don't have as much high blood pressure, so it may be safer there to eat an egg. and we're talking over 400,000 people were studied over nine years and were found to have 11% less likely of developing heart disease and 18% less like wily to die if they had about three-quarters of an egg a day. stuart: should i eat one egg a day? >> no. first of all, you're american. second -- [laughter]
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well, you're british, but you're american. we want to keep your weight down. i like high fruit, vegetables, i like mediterranean diets. i'll let you have a little bit of wine here and there, nuts, i like the dash diet which keeps your blood pressure down. in america we don't eat enough vegetables and fruits. i'm not going to go on national tv on your esteemed program and tell people to eat eggs, i'm not going to do that. the protein is good, the cholesterol is bad. one thing we found out recently that i like about eggs is they don't do as much bad as we thought. eggs may signal the liver not to make as much bad cholesterol. so eggs may not be as bad as we thought. but they're still not the same as having a banana or having a strawberry. stuart: all that good advice we got all those years ago, oh, don't touch them with a 10-foot pole, that's okay. it's different now. >> it's better than we thought, it's still not great. i still say have yourself an
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avocado. [laughter] stuart: okay. you foodies, i'll tell ya, you've got us all every which way. >> fruit, vegetables, fish, nuts, nuts are great. [laughter] stuart: okay, thank you, doctor. thank you very much, indeed. >> good to see you. [laughter] stuart: nancy pelosi, senator elizabeth warren, nobel economist paul krugman, they all agree our democracy is in danger. what? [laughter] my take on that is next.
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. . i got scar tissue there. same thing with any dent or dings on this truck. they all got a story about what happened to 'em. i could feel the barb wire was just digging into the paint. two bulls were fighting, hit the truck. another ding, another scratch, another chapter in the story. chevy silverado. the most dependable, longest-lasting, full-size pickups on the road. it's the chevy memorial day sales event! get a total value of over $10,000 on this silverado all star when you finance with gm financial. find new roads at your local chevy dealer.
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stuart: who precisely threatens our democracy? really sounds extreme, doesn't it? what we hear from the left all the time. yes, it's trump derangement syndrome. it is based on contempt for our president and it is coming at just about constantly. professor paul krugman writing in today's "new york times" compares europe and america. he says the collapse of freedom, if it comes will probably happen here, in america, first.
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the collapse of freedom? krugman doesn't tell us how freedom is collapsing. he just says it. nancy pelosi says we must save our democracy. she evidently believes it is under threat from what? i'll tell you. secret, dark, big money influence. that is what she says. by the way, hillary holds a fundraiser in new york city thursday night. $2500 a plate. for the multibillion-dollar clinton foundation. senator elizabeth warren says democracy is crumbling around us. how, you may ask? because hillary won the popular vote, not the presidency. that is what senator warren is saying. you get the point. the left spins trump as a threat to democracy. i have another idea. the to our democracy comes from within the government itself. it is motivated by hatred of our president. when the fbi spies on the presidential campaign of
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president donald trump, that is a threat to democracy. when the obama administration uses the irs to beat up its political opponents, that is a threat to democracy. when democrats in california deliberately make it easy for illegals to vote without any penalty at all that is a threat to our constitutional republic. my bottom line is this. the left is drowning in its contempt for president trump. our rough-and-tumble, very sharp-edged president trump is sticking to the constitution and returning our country to prosperity. the second hour of "varney & company" is about to begin. ♪ stuart: this is happening this hour, gop leadership holding its weekly news conference. we'll be listening for hiany headlines coming out of that. treasury secretary steve mnuchin is testifying before the senate. if he makes any comment on a trade deal with china we will
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bring it to you pronto and that's a promise. check the big board, it is go nowhere tuesday morning a slight edge to the upside. we're eight points higher. chipmaker is buying back shares, micron, buying back $10 billion worth of its own stock. it teamed up with intel. they will produce and ship the next generation of chips used in flash drives and digital cameras. the stock is way up all over again. that stock is on a roll. big tech names, check them please. facebook up, amazon down. apple up at 187. microsoft up a fraction at 97.75. jcpenney hit a record low after announcing that its ceo is leaving. he is it going from jcpenney to loews. lowe's up, penny down. oil above $72 a barrel. that by the way is a 3 1/2-year
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high. scott shellady, tjm europe managing director. scott, this high oil price i take it now because we have severe sanctions we want to impose on iran. that is what the oil story is about, right? >> those are the short-term reasons we're kind of propped up here. number two, stuart, we ran into some inventory issues. number three, we have infrastructure issue getting oil where i it is made to where it needs to be. we're somewhere in the happy medium zone but we are approaching the high-end of happy medium if there is such a thing. stuart: you don't think it will hit $80 a barrel? >> oh, it could because it always foes higher than it thinks it will go. we're finding more and more oil fields, west texas, alaska, those type of things at home. we're having a good supply just getting it around. infrastructure issues, short
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term geopolitical issues, it will not run away from us but we could have a short-term spike. stuart: do you share the optimism on trade? we have more progress to report. china will reduce tariffs on imported cars and car parts. we have a deal to take away sanctions from zte, the chinese phone-maker. i will call that progress. but a lot of people are saying we're caving to china. do you think it is progress? >> it is progress, we got them to the table. however we did that we got them to the table. now we raised the issue. now the rest of the world is seeing what chain is doing. a lot of us flewknew what was happening. now the man on the street knows what is happening. that is good issue. do we force their hand a little bit with some the of trade war having them come to the table and we call it off? who cares. at the end of the day it is a good thing, right? however we got there i like what happened, ultimately it will be good going forward. stuart: i take it you are happy,
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in your previous life in america you were a cattle farmer i believe. the chinese will import 35% more of our farm produce, maybe $8 billion extra per year. you have got to be happy? >> you know me, stuart, i'm a common sense-ocrat. one of the largest groups we sell is oil, seeds and drains. oil, seeds and grains, over 2/3 of the state has produce that went for trump. there may be something here that will help him in the long run. that is a good thing. maybe he got the chinese back to the table for that. the american farmer will be happy. ultimately that means donald trump will be happy too. stuart: i think about time you came home and joy the benefits of trump's america. >> i will be. stuart: thank you, scott. i want to get back to the editorial at the top of the hour. the left says our democracy is threatened. doesn't provide any examples how it is being threatened. former arkansas governor mike huckabee is joining us now. i say the threat to our
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democracy comes from within the government itself, spying on your opponents political campaign, being up your opponents with the irs. that is where i think the threat is coming from. what about you? >> absolutely. of course, stuart, i'm not going to come on your show and disagree with you. that is an invitation never to come back. stuart: that is not true. that is not true, governor. we're balanced. >> well, but the trying is you are spot on. we had an election. it was fair and square. the left can't stand the results of the election. the threat to the democracy if we don't have a decent election but really a threat to the democracy when we violate our constitutional form of government and when the people in the government begin to use their supposedly completely balanced and non-partisan power to take a side, try to push toward a particular election result, and then after the election punish the people that won who they did not like that is a true threat to democracy
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and i hope the lights come on and we get to the bottom of this and find out every single person in the federal government that was responsible and their next major color of the season is orange, as in jumpsuit. stuart: whoa, that is strong stuff. i will not disagree with you there, governor, tell you that. the obama as, they signed a deal with netflix and produce tv shows and films. they have their own production company within netflix apparently. what do you make of this? give me your thoughts, please? >> i think it's a wonderful idea. they will create a whole series of fictional content based on all the things that president obama did to earn the nobel peace prize. so it is going to be an extensive series of fiction that he will be able to tout that things that justified his getting a nobel peace prize two weeks into his presidency, because it was based on all the things he was going to do. since he didn't do those things, now we're going to be able to see this series.
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it will be bigger than "house of cards." stuart: come on governor, sarcasm is a low form of wit but you're very good at it. it is very -- >> i am the a lowest form of wit, no down about it constantly. stuart: i think it's a good move for netflix, look at it purely financially, from the company's standpoint, they are a global company. president obama and michelle, very popular around the world. i think this is a good move for netflix. the stock is up four bucks approaching all-time high. >> i don't disagree with that i don't blame the obamas if they can cash in make some dough. they were anti-capitalist during his administration. now they're becoming capitalist. i welcome them to the fold, people who believe making money is not an evil thing. stuart: we'll leave it at that, judge. governor, i'm sorry. you can disagree with me any wii way you like. don't expect to come back. >> next time i will. next time, that's right.
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stuart: oh, there is a threat. governor huck weeks thanks for joining us. much obliged. >> thank you. >> you bet, some amazon customers were banned from the site making too many returns. i know some people in that category. ashley: you do. some customers are not worth keeping even though amazon is cultivated this image of being very customer-friendly. apparently not. if you go beyond a certain point where you what they call, abuse the system, you're essentially shut down. it is interesting. they have over 300 million customers worldwide. we don't have any details on how many have been banned but we have individual stories. but apparently this is a huge problem for all retailers. they lose billions of dollars on people who basically commit fraud. they will want full return on something that was already used. and what have you, you get this, this is kind of note you get from amazon if you try to do these things. it says here, if your behavior
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is, your behavior consistently outside the norm, you can no longer operate this account, nor can you in the future. you can contact amazon, if there is mistaken identity, whatever it is you can appeal your case. in some cases they have overturned it. generally if you're constantly returning stuff and saying you didn't get the right goods or whatever, it becomes an on going thing, they have cut you off. liz: they don't give any parameters for how many returns. ashley: they don't. they said they did in their original work, they have put out what they call a privacy, not a privacy, they put a accepted terms of use but it is buried very, very deep in the agreement which no one has ever read. stuart: thousand they will feed it. >> now they will feed it. they have the right to do it. stuart: fair point. it is interesting. i do know people. ashley: yes. stuart: check this out, u.s. postal service unveiling the second scratch and sniff stamps. i don't get this story.
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illustrations of ice pops. the post office said it will add the sweet scent of summer to your letters. 20 different stamps available june 20th. >> >> coming up nicolas maduro as you know won another presidential term in venezuela. president trump sanctioning the nation hours later but not placing sanctions on their oil. we'll find out what is happening on the ground in venezuela shortly. brian kilmeade, he and i had a disagreement on trade yesterday. he says president trump should hold a much, much stronger line with china. i'm happy there is progress. we'll continue the debate later this hour. the business of esports, wow, this is a new thing to me but it's huge. it's a story we're following. 14 nba teams have either made deals or outright bought professional teams that play video games. we'll talk to the head of one esports franchise. you're watching the second hour of "varney & company."
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stuart: moving up a little bit, i'm sorry, we rear versed course literally. we're down 28. we're down 30. just below 25,000. ge is one of the biggest gainers on the dow. it is up nearly 1 1/2% that is, even though there are reports that they will cut the dividend. ge holding there at is 15.52. better sales, higher sales at retailer autozone. it is up two bucks at 667. i do want to get to venezuela. the monly inflation rate reached a new high. let me explain this, every 17 days, prices double in venezuela. now that's inflation.
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over the weekend president maduro he won an election which received global condemnation. president trump signed an executive order barring purchase of venezuelan debt. but he did not bar the purchase of oil. joining us vanessa neumann, author of "blood profits." thank you for being on the program. >> thank you. always a pleasure to be on with you guys. stuart: why did the president not embragger go venezuela oil? >> it is not necessary. production is nosediving. they can't pay creditors and supplies. they can't play employees stealing bits of infrastructure to sell it. employees have been leaving. if the u.s. sanctions the oil industry, then the humanitarian problem will be pegged to them. they will be like, oh, this humanitarian crisis is caused by the americans. that will be the message, right? stuart: okay. >> so the americans can just kind of let it collapse of its own weight and not own the
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problem and not be paint as the bad guy. stuart: arguably it has collapsed already. >> yeah. stuart: i ask you this every time, when is the endgame? i got to know? >> i don't know. here is the problem. even last night i was getting reports there was another little skirmish within the intelligence services. officially you don't really hear about this, but 28th coup attempt. 28th coup attempt against maduro just put out because cuban intelligence services which has soviet backing, is so strong, the minute they start plotting something they arrest them. hundreds of military commanders in prison. they're trying to get him out, even his own people but they're just too strong, the intelligence. stuart: he will not get out, is he? he will survive, isn't he? >> it is so dark. no, i don't think he can. i really don't think he can. hyperinflation is so bad. we've never seen a regime, beyond zimbabwe.
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heading to weimar republic which set up world war ii. there are just too many schemes against him. the international financial markets i've been told even by bondholders have said, that they have calculated that maduro leaves. that is why they're starting to coalesce into groups to sue the government. they want to be first in the table at the restructuring. that is why they're hiring lawyers. they know the transition is coming. they don't know when, but they know it is already worth getting in line. otherwise they wouldn't pay lawyers. you don't want to pay lawyers too long, do you? stuart: whatever you say, vanessa, whatever you say. separately, hezbollah, terror group. you have written a report. you coauthored a report. >> that's right. stuart: hezbollah, a terror group, is laundering money through brazil, paraguay and argentina. >> absolutely. this has become a nuclear bomb with the paraguay government. i did an hour with paraguayan media. yesterday on sunday they
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announced they would move part of the military because they fear an insurrection because of public reaction to press reports over reports basically saying the triborder is this perfect money laundering, terror finance machine. you have three countries where you can sell your illicit good. three countries you can launder your money or hide its destination and, you can hide. so the borders function for you to hide from law enforcement which purposely don't work together. they don't do any cross-border investigations but you have this heavy lebanese community on both sides, on all sides of the border. there are huge merchant class. some of that money goes to hezbollah. meantime the president paraguay, why i was having a difficult morning this morning, he was producing 20 times the amount of illicit tobacco consumed in this country. most of it goes to contraband
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and a lot is moved by hezbollah, number one terrorist group moving illicit tobacco. stuart: how come you have so much power? you're supposing core hupp shun in paraguay. >> that is what we do. i long time worked security issues. before the collapse of venezuela i worked paramilitary integration in colombia. i spent a lot of time on the ground in colombia. i understand these things of drug trafficking and have lived through them and sort of like, even been in lebanon with hezbollah to research the relationship. so i'm well, i'm well chronicled on this topic. and in, what amazes me is, that they don't want to believe it. of course the government is pushing back saying, you know, what is your credibility? well, here is the 25 publications, the u.n. and yale university. so -- stuart: i'm glad you come on this program. >> thank you. stuart: to report for us. >> this is so much fun. stuart: i still wait for the end
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game and the end date in venezuela. >> tell you what. come down to caracas with plea and we'll celebrate together. i really hope so. we'll broadcast from there. wouldn't that be fun? stuart: i really doubt we're going to do that. thank you for joining us vanessa. come again soon, okay. >> thank you. stuart: by the way, now this, i think we know this already there is repercussions, starbucks opening its bathrooms to the public. not everybody happy about that. we'll tell you what the public reaction is to that move in just a moment. ♪ [fbi agent] you're a brave man, mr. stevens.
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reaction from customers. come on in, kristina, and tell us what that reaction is. reporter: well, stuart, you would think maybe some people would be upset about this new policy starbucks announced yesterday to the "wall street journal" first, that they would be opening up their doors to every one, even if you don't want to buy coffee, you can come out and still go to the starbucks employee to get the code. it means it is open to anybody and everybody. i have one customer larry, who comes here every single day because his office is across the street. we are in downtown manhattan. what do you think about the policy of opening up starbucks to non-customers. >> it is really not an issue. who cares. i mean, i get my coffee. their customers come, they go. it's a non-issue. the country is like, just shows lack of intelligence of the country that people care about who uses the bathroom at a starbucks. >> don't you think that is could possibly get overcrowded and people are hanging out, there is
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not enough room? >> of course not. it is no big deal. it is really a non-issue. i don't understand why you're here or why people even care. no one in america cares about this. reporter: larry i'm here i have to show the viewers maybe people don't care. that is pretty much the overwhelming response of people i spoke to. it also could be the location we are at, you have a lot of people come in and out very quickly. next tuesday though, starbucks will be hosting a racial bias training, 8,000 stores will be closing for half the day. why? because in april there was an employee called the police on two african-american men who were just sitting at the starbucks location and they are arrested. apologies were sent out. that is why the racial bias train something happening. next tuesday, stuart, i will send it back to you. as you can see, not many people care that much over here. stuart: i can see that kristina. morvan any after this. -- more "varney" after this.
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i got scar tissue there. same thing with any dent or dings on this truck. they all got a story about what happened to 'em. i could feel the barb wire was just digging into the paint. two bulls were fighting, hit the truck. another ding, another scratch, another chapter in the story. chevy silverado. the most dependable, longest-lasting, full-size pickups on the road. it's the chevy memorial day sales event! get a total value of over $10,000 on this silverado all star when you finance with gm financial. find new roads at your local chevy dealer.
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♪ stuart: it is about time we got to the all-time favorite classic, "she loves you." not necessarily my favorite but certainly a good one. breaking news, the treasury department announcing new sanctions on iran. what? ashley: in particular five individuals now. these individuals related to the iranian military. they are being charged with providing missiles and other weaponry to the houthi rebels in yemen. as we know, the yemeni rebels there have been firing missiles at oil installations. they fire one at the main airport in riyadh in saudi arabia. five individuals are actually named. anything, all their financial dealings have been shut downpy
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the united states and anyone who does business, or attempts to do business with these five individuals will also be open to sanctions. stuart: okay that is severe. i don't know whether it affected the market because the market took a tick down. liz: the revolutionary guards own 1/5 of the companies on the new york stock exchange so. stuart: our markets are down just in the last few minutes, maybe because of those sanctions. i'm not sure about that but we are now down 48 points, 24,966. check the big tech names, please. only one of them's up and that's facebook. i have got news on that in a moment. facebook is up, amazon, apple, microsoft are down. look at this, tjx, parent company of marshals, tj maxx, home goods, the sales are pretty good. the stock is up a point 1/2. 86 bucks on tjx. still on the markets, our next guest says, whoa, they have not peaked yet. we like the sound of that.
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brian nick, first time on the show. you've got something good to say there. well-donaldson. you say the market has a kay to go, why? >> earnings are growing. we may have seen the price people are paying for earnings. we see interest rates move up and valuations look and doesn't mean stocks can't grind higher f we have a quarter with earnings up 20%, we shouldn't expect the stock market to be up same amount. stuart: we reevaluated companies on first-quarter earnings which were really, really good. you say if we get some better earnings in the next quarter, you think we're likely to, we'll go up some more? >> comparisons won't be as easy as they were in the first quarter but they will be pretty good because we have that tax cut kicked in for corporations. which means on average companies are paying 8% less for taxes than they were in 2017. that comparison remains pretty strong for balance much 2008. we'll continue to seep good
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earnings quarter after quarter. we should make enough to keep the market stable it not push it higher. stuart: that is despite rising interest rates because we are probably going to get moves up by the federal reserve and 10-year treasury up 3%. we still have the market going up even though there are interest rate worries? >> the fed will tell you that they think interest rate policy is getting easy and they're getting back to normal. if you go back to 2004, 5, and 6, med was raising rates but market was climbing. it is bert growth -- better growth and higher inflation and better growth around the world. stuart: do you have have a forecast of second-quarter earnings increases? we were up 20%, huge in the officers quarter, up 20%. what is your idea for the second quarter. >> 20% is aggressive for the second quarter but if we're in the mid-teens -- stuart: that is huge. that is huge.
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another gain in the mid-teens, that is gigantic i think. >> what we're waiting for next quarter earnings season to start, last quarter the gap between the end of the previous earnings season and next one where things went sideways with the markets. stuart: brian, you might become a fixture on the program because we like it. thanks for joining us, sir. thank you, appreciate it. thank you very much. facebook, ceo mark zuckerberg, he is in front of a commission, in front of the european parliament today. he is answering questions. deirdre bolton is with us. he is on an apology tour. >> he is on an apology tour and a i love europe tour. by the way i will be hiring more people in europe. he is on a data clarification tour as well, yes, apology tour. i want to highlight he already said in some comments that we have will be hiring 3,000 more employees in europe. maybe you hate me but i might also be adding jobs to your countries. liz: don't fire me.
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>> having lunch with the french president tomorrow. apology tour. i love europe tour. here is what we're doing tour. and then as we know, these new laws are going into place on friday, which are going to be very strict. if facebook is not in accordance to them, they could be on the hook for as much as 1 1/2 billion, if they mess up per year. stuart: i'm fascinated the stock has not moved down. >> it has not moved down. stuart: from the data scandal. close to all-time high. >> 10 hours of testimony that mark zuckerberg did for two days in april. you saw the stock come down a little bit. year-to-date, your point it is up 25%, if you look at s&p 500, 2.5%. it went down a little bit but this week it is having a really good week. stuart: could i say the market is betting that the europeans won't get him? >> i think so. i think that's a fair bet. he knows what the rules are. stuart: not for lack of trying, well-said indeed. >> europe is clear about the
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guidelines and privacy settings are. the onus is on the tech company. liz: pretty tough. stuart: very interesting. i wonder how he will do. deirdre, appreciate it. it is almost 10:36, that is the moment when i can bring in brian kilmeade, host of the "brian kilmeade show." i think he is there. he is waiting for me. okay, brian, yesterday, let me remind you on fox news you and i had a dispute about china trade. i say we've made some progress. you say that the president is just not tough enough, he's caving. are you going to still keep going with that line today? >> no. a couple of things. it is not the president caving. the president's team is totally letting him down. number one, they're fighting with each other. i have got multiple source, some directly, they basically got in a fight in beijing because steve mnuchin decided to wildcat it on his own. he is least qualified to do international trade out of his entire team.
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robert lighthizer should take the lead. peter navarro has 35 years of books writing about it. steve mnuchin does not know about the chinese culture. does not know about the past history of trade. he is not serving the president's best interests by taking the lead. doing it again yesterday, not being on the same page with larry kudlow or robert lighthizer, i think embarassment to the president. and when your team lets down the president who has to have experts help him out in certain is areas i have a problem with that. stuart: i think you're reading far too much into it. but i will let you get away with it. hold on a second, brian. happening right now treasury secretary mnuchin is testifying in front of a senate panel. he is asking why the administration is backpedaling on zte, the chinese phone-maker. he says we're not backpedaling. national security issues will be enforced even though we dropped the sanctions on zte. we did not want to put them out
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of business. he did not report on a comment on a report that a deal on zte has already been made. i guess you want to say, brian, you don't think mnuchin should be in charge of the trade negotiations. that is your point, right? >> you have no know what you're good at. nobody wants me doing your plumbing. nobody wants me to do your electric. you might want me to host your show. you have to know what you're good at. president needs experts in certain areas. bush 41 didn't love economic issues. loved diplomatic issues. bush 43 felt differently. barack obama has areas of expertise. you count on secretary of state kerry to cut a iranian deal. he did a terrible job. he let down the president first and foremost. steve mnuchin doing a fine job on the economy should not run away from his team. that is my main point. stuart: i do want to make the point that senator schumer is very much with you, brian kilmeade.
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he says that china took america to the cleaners on zte. any comment? >> yes. couple of things. the president also cited chuck schumer's support for his tough line on china. the president actually could get democrats behind him. he is essentially did something i haven't seen much from chuck schumer. he said, mr. president, don't blow it. you have already pushed them harder than any other previous president. giving you the paraphrase. i don't have the tweet in front of me. so don't blow it now. so i know you got june 12th in singapore. i know they're related because that is the north korea situation. but this is our last chance to balance trade between a rising power. we're also on the up swing. but let's balance it out collectively, not sell my soybeans but rebalance our intellectual property. make sure there is no theft there. let's build in sanctions if happens again of the we know their plan, stuart. 2025, they want to surpass us. stuart: i have to want to leave you at this it is past time.
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it is early days. we'll deal with the transfer of intellectual property. i'm sure we are. we'll not leave it hanging that is all to come. it is a negotiating process. it will not be wrapped up tomorrow morning. i have to leave it there, brian. we're coming up on a hard break. >> i'm not really familiar with that at all. stuart: see you later, brian. thank you very. what's next? i'll tell you. the business of esports. it blows me away. it is a story we're following. could be worth well over a billion dollars in a couple years. we'll talk to someone who runs a esports franchise next. ♪ into retirement... and a little nervous. but not so much about what market volatility may do to their retirement savings. that's because they have a shield annuity from brighthouse financial, which allows them to take advantage of growth opportunities in up markets,
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♪ ashley: america first policies advisor andy puzder says job optimism is reaching new highs because president trump's growth agenda is working for the economy. take a listen. >> even if you look at the president's approval rating going back to january of this year, it was down around 37, 38%. now it is 43, 44%. it's a pretty steady climb. you're seeing people are realizing, these capitalist, free market policies, cutting taxes reducing regulation, focusing on domestic energy are in everybody's best interests. the socialist, progressive
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is at 187.59. quick math. it is close. i'm interested in this, the esports industry. our next guest runs one of the oldest e sports leagues. it has been around since 2003. it is eight teams, competing and playing seven is different electronic video games. now this league was bought by the philadelphia 76ers. michael is the team ceo. he run this is thing. michael, welcome to the program. >> pleasure to be here. stuart: i know nothing about this, have got it right so far? >> you have gotten so far. 76 years, own a team called team diginitas. you have. stuart: you have a team of what -- >> we're in different games. almostnal to sports same way we have basketball, soccer.
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this is esports videogame playing it in front ever large crowds. there are different games analogous to different sports. counter strike, league of legends, rocket league, those are all esports in of themselves. stuart: you have teams competing against each other. >> that's right. stuart: in different games in stadiums and theaters? that's right? >> it depends on the size of the e sport. for the biggest ones in the world they can fill stadiums. sometimes they are online or lan, local area network events, crowds of 500, 10,000, it varies. stuart: give us numbers. i want to know how big it is. this is something is completely unfamiliar with. i'm just discovering this. >> the numbers can be staggering, how about this? $100 million, that the lead video game publisher, epic games, who makes the game fortnight putting towards the
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prize pool. stuart: "fortnite" is the biggest game around. makers, publisher,. >> epic,. stuart: they're putting 100 million doll in the prize pool. >> there is entertainment. they're streaming themselves. super entertained by their schtick, right? there is whole competitive aspect comes into the next year. they're putting $100 million towards the prizes go around those tournaments. stuart: i have never been to one of these events, until you invite me. essentially they say you have got a theater. you have a big screen up there. >> sure. stuart: you have a couple of teams down front and they're playing each other and they're surrounded by spectators, is that how it works? >> that is basically how it works biggest one, next chance for you, i will take you with me, barclays center, july, overwatch league, we'll pack it i think they get 10,000 or more. two teams playing in front of a huge screen, that millenial,
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coveted millenial audience rapt with attention. stuart: 10,000 people? >> at least. stuart: how much do they pay to get? >> i don't run the tournament but ticket prices 30, $40. stuart: you're kidding me. maybe gross revenues a quarter of million dollars for one event one night? >> absolutely. big sponsors are getting into the space. they're not just endemic sponsors. at our team, we have buffalo wild wings, mountain dew, state farm going into major tournament and leagues and announcing a big deal with the nba 2 k league. and nhl. stuart: who is the hottest competitive video game player in the united states of america? he may not be on your team. he or she. >> stick with "fortnite," the hottest streamer is tyler before vince, known as ninja. and ninja is a guy who has been
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streaming with drake the famous rapper. streaming with zhu zhu smith shuster with the wide receiver with the pittsburgh steelers. gaming, esports, all wrapped into one at high speed. stuart: come back at future point i will give you a another commercial. >> anytime. happy to come by. stuart: i charge you next time, son. thank you very much for joining us. opened up a new world. what's next? i'll tell you. the hits keep coming on tesla. "consumer reports" says they can't recommend the model 3, the car simply can't stop in time, they say. bad brakes. elon musk, he promises a fix. the stock, actually going up. that's next. ♪
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with a firmware update. i guess that is software. we'll roll that out in a few days with further refinement. we can improve breaking distance beyond original specs. tesla won't stop until model 3 has better breaking than any remotely comparable car. gary, what is "consumer reports" say is problem. >> first time they worked fine. subsequent times it was too long. stuart: too long. >> "consumer reports" anonymously purchases car. they don't receive them. they borrowed another car owner es and found the same results. stuart: there is no dials on the dashboard. there is just a screen isn't it. "consumer reports" says it is difficult to figure it out or concentrate. >> pretty much everything in the card is controlled with very large touch-screen in the center. it is a bit distracting. have to look a way. stuart: distract something word they used. >> that was another problem they
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had. a bit loud and the ride was kind of stiff. stuart: that is a put-down, i have to say. in an electric car it shouldn't be loud, i don't think. it should be silent, shouldn't it? i always thought. >> mostly wind and road noise. musk said that issue has been fixed with newer cars have been built. they say they can update the braking issue they don't know existed in couple hours. said they could fix that no problem. stuart: are you kept al? >> depends. he says anti-lock braking system calibration. if it is, they can do it over the air update. shows you how their streamlined development process is not as robust the major automakers. they have the advantage they can update over the air. something simple as this they should have fixed before put in production and in showrooms. >> the stock is not suffering. in fact tesla's stock went up a little bit this morning. >> "consumer reports" had negative things to say in tesla in the past. it hasn't been a issue.
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early tesla fans don't care about things like this. even though this is pretty major safety issue. stuart: now it is off six bucks. maybe investors watching this program. see what you did, gary. >> short term i don't think it will affect sales. early model 3 buyers, they are expecting, deal with a couple of these tweaks. when you get past the first 100, 200,000 sales, when you get to mainstream buyers, they might be a little shaky hearing about these sort of things. stuart: got it, gary. appreciate it. tesla's stock is down six bucks. who would have thought the economy would be expanding rapidly? who would have thought china gets to the table on trade. who would have thought president would do face-to-face with kim jong-un of north korea. who would have thought this would happen under president trump? not many people. my take on that. top of the hour. here we go. ♪
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stuart: tuesday, may 22nd, 2018, who would have thought? six months ago who would have thought two out of three people would say president trump created our strong economy? that's from a cbs poll, with by the way. and a gallup poll out today shows two out of three people believe now is a good time to get a quality job, best level in 17 years. who would have thought the economy would be expanding rapidly with historic lows for black and hispanic unemployment, rising wages and over three million new jobs created in 15 months? and don't forget, i'm sure you haven't, that your 401(k) is up by about a third since mr. trump won the election. who would have thought china and the united states would be sitting down to discuss a new trading relationship, one that expands trade rather than cuts it? who would have thought that in three weeks president trump will be sitting town face to face with kim jong un to discuss north korea's denuclearization?
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and who would have thought america would again insist that iran get rid of its nuke program and quit threatening the modern world? you get the point. this presidency has been subjected to an unprecedented level of attack from stunned democrats and a hateful media. it has been shoved down your throat, rump is bad, and the world -- trump is bad, and the world is headed for disaster. it became the mindset of the elites. well, now we're returning to prosperity, we are confronting our enemies and standing up to our rivals. that's the way it is on this tuesday, may 22nd, 2018. who would have thought? the third hour of "varney & company" is about to begin. ♪ ♪ stuart: all right. you heard what i just had to say. i think there is growing optimism in our country especially as regards the economy. john lonski is here, moody's
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managing direct every. now, let me give you some kudos right from the get go. for a long, long time, you've been saying the market's going higher, and the economy is strengthening. i take it you agree with what i've just said about the stronger economy and who would have thought. >> exactly. and i am shocked at how well the labor market's doing, by the way. who would have thought? i didn't think that myself, my goodness. we have the fewest jobless claims relative to jobs in history. this goes back years. do you realize right now the number of people unemployed practically equals the number of job openings? stuart: that's a full-employed economy. flat out. >> yeah, it is. and yet inflation's under control. wage growth isn't going through the roof, it's 2.6 percent. ordinarily we'd think it would be 4 percent by now, that core inflation would be with well above 2 percent. that may not be the case. stuart: now, we've got this gallup poll we've been quoting this morning, 67% of the people responded saying now is a good time to find a quality job.
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it's never been that high a percentage since, in all the years that gallup's been asking that question. what does that tell you about the economy? >> that tells me that you're going to have more people that are not in the labor force today coming back into the labor force to take advantage of these prime job opportunities that are out there. stuart: so that means that the labor participation rate -- >> should start heading higher, yeah. stuart: a generation aloe starts to go up. >> i think it does. definitely. when we try to exclude those older americans who are on the verge of retiring and just focus on prime-age americans, 25-54 years of age, that labor force participation rate is two percentage points lower than it ought to be. so that perhaps tells me we could take this unemployment rate down from 3.9% to perhaps the lowest unemployment rate we've seen since the early '50s when it was under 3%. stuart: however, employers cannot find the skilled labor they want. there's a gross shortage of
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people qualifying for the jobs that are on offer. what are you going to do about that. >> well, you know, hopefully we can have training programs of some sort with community colleges, that type of thing. and, of course, if you can't find a qualified laborer, you have a stronger incentive to take advantage of these breaks you're now getting for investment in capital goods, capital equipment and what not. perhaps we're going to see quite an increase by business investment spending in order to compensate for this lack of qualified labor. stuart: now, i think at the moment we're expanding the economy at a roughly 3% growth rate. >> i think you're right. stuart: maybe just a tad above. >> it's about 3%, and i think that's quite fitting. stuart: are we going to go higher than that? >> i'd like to say keep it that way for the next several years, that would be great. that would bring us to full employment without any question, it would bring about an increase in real wages. if we grow much faster, then we're running the risk of overinflating the economy. we're not there yet, and i think
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that's the situation. we're still capable of avoiding it. stuart: what about the stock market? you said consistently that in the long run it goes higher from where it is now. >> correct. i think the dow jones at the end of the year is going to be up by 7.5%. stuart: from where it is now? >> no, no, for the year to date, excuse me. stuart: okay. >> that brings us just above the record high we had on january 26th, and the overall market does better, 7.5-8%. stuart: you know, you've been out on a limb for all these years. have you been ostracized by the economics community? >> well -- stuart: no. [laughter] you've still got a job. >> right. still have a job. stuart: that's a good answer. >> okay. stuart: lonski, you're all right. thanks for joining us. >> my pleasure. stuart: despite all this optimism, the mainstream media will continue to put a negative slant on all things trump. look at this, a difference between headlines today on trade. first of all, "the new york times," very negative. here's the quote: trump team's
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in-fighting thwarts victory on china trade. but the "wall street journal" has this headline: u.s./china agree on outline to settle zte controversy. rnc spokesperson caylee mcinerney is with us. you face an uphill battle because the media will always and forever be be negative on president trump. i'm not sure what you can do about it. >> yes, and historically so. even when you compare bush administration coverage, president trump always gets the more negative coverage, and it's because he fights back and the media hates it. we win in the end, stuart. there's an inverse relationship between the negativity and the press and the positive climbing of president trump's approval ratings. the lower they go, the higher president trump rises, and and we see that each day. stuart: there's an inverse relationship. so the more they pile on the contempt and hatred, the more the reaction against that, and the president's approval ratings
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go up. i think he's about 43, 44% approval right now, correct? >> yes. but in rasmussen daily tracking poll, he's more like 50%. there's a direct correlation, by the way, the negative, salacious, gossipy stormy daniels story, as they descended into that narrative and left russia collusion, his poll numbers were on the rise. we've seen that happen. people don't care about gossip, they care about successes happening in their everyday life. stuart: excuse me. now, there are primaries going on today, georgia, arkansas. and i know you don't get involved in primaries, i know you don't do that, but of those people who are republican candidates, those who have gone out on a limb to be very much pro-trump, you've got to be hoping that they win. you've got to be hoping that they show well, because a bad showing would be a very negative sign for november. >> well, i can tell you this, with each of the candidates the closer you get to president
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trump, the greater success you will likely have in your primary because this base is behind president trump to the tune of 90% or greater. they are behind president trump. stuart: okay, the base is, but is this now trump's republican party? >> oh, for sure. most presidents will hover around 80%, with republicans generally speaking. president trump has hit 90% in some polls. this is a party that's fully behind president trump. stuart: got it. thank you very much for joining us. >> thank you. >> interesting. stuart: very interesting. that's fascinating. check the big board, we're down 24 points. it's a pretty even split between winners and losers. gotta check out apple. it's getting a little closer to -- well, it's back down three cents. look, if apple's stock hits $203.45 per share, apple is worth a trillion dollars. not that far away. microsoft down today, 97.58, is your price. okay. look at the rest of the big tech
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names. they opened higher, and we said that at the beginning of the show. watch those tech stocks go. well, they went up, now they're coming down. all of them except for alphabet, as in google, are down as of right now. gas prices, here we go, up some more. the national average for regular is $2.93 per gallon. that is up one penny from yesterday. and here's the update on the $3 club. new teen states and the district of columbia where the average price is $3 per gallon. but, oh, california again by far and away the most expensive. the average for regular in the golden state is $3.71, a full 78 cents higher than the rest of the nation. by the way, the lowest prices still in the southeast. mississippi has the lowest average for regular at $2.61 per gallon. president trump met with several republican governors at the white house. it was about immigration with president trump calling out weak
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stuart: iowa congressman steve king introduced a new bill that would jail city leaders for tipping off illegals of an impending i.c.e. raid. it's natured after the mayor of oakland who alerted residents to an immigration sweep earlier this year. under the bill leaders who violate the law could go up to prison for -- go to prison for up to five years. he will be on this show tomorrow to talk about it. by the way, judge napolitano says that bill would be uninstitutional. and now this -- unconstitutional. >> and now this, president trump
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hammering congress. roll that tape. >> we're going to be discussing the deadly ravages of drugs, gangs and crime that's pouring across our border. we are stopping it and getting 'em out when they're able to get through, and the only reason they do get through is because of our weak laws that really have been given to us by weak people in congress. the democrats have been horrible on border security. [laughter] stuart: tell us how you really feel, mr. president. joining us now is governor henry mcmaster. governor, you were at the dinner. what does trump want you, as a governor of a state, what does he want you to do about immigration? >> well, one thing, we were all very pleased to be there with the president. he is a great president, and he made it very clear as you just saw from that clip he wants to be sure that we don't have illegals pouring in over the border. and we agree with him 100%.
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of course, some weeks ago he asked for us to send national guard troops. we were proud to do that. south carolina's a very military-oriented state, as you know, with a great tradition, and we sent a group there. nine guardsmen and women and a helicopter, and we're ready to send more. so did the four other governors who were there with us last night. it's a great thing. again, it's a cooperation, the state and federal authorities working together under a great leader who's taking us in the right direction, and that's president donald trump. stuart: okay. i just want to ask you what it's like to sit down in the white house to have dinner with president trump. now, i'm told he's very engaging, a very confident man. how did you take him? [laughter] >> i think that's probably an understatement. [laughter] he's very engaging -- [laughter] stuart: no, he dominates. >> he's an absolute -- yes, and he's an open book. there's no hidden agenda,
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there's no half twisting of anything. i mean, he comes out and says exactly what he wants to say. he says what he means, he means what he says, and it's just a real thrill. he's a gracious host. we enjoyed it very much. but he's standing up for this country. he says if we don't have a border, you don't have a country, and he's exactly right. and we in south carolina are going to do our part to help secure that border. we want to build the wall. in fact, the economic growth that the president is leading is the same thing we're doing in south carolina. i'm doing here what he's doing there, and it is working. and it's great to have a president who understands what it means to have a strong country. stuart: did anybody at the dinner -- i want to go back to that din kerr, because i'm intrigued about sitting down and having dinner with the president in the white house. did anybody argue with him? any of the guests criticize in any way, shape or form? >> no, we were all going in the same direction. we were all of one mind. and secretary of energy rick
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perry was there, chief of staff kelly was there for a little while and the secretary of homeland security, ms. nielsen, was there as well. we're all of one mind. we have to keep the people safe. if you don't have law and order, you don't have anything. if you don't have borders on a country, then you don't have a country. so there was no argument. we are all doing the same thing. we understand it's very important to the people, it's important to the future, and we're with the president 100% and deeply grateful for his leadership. stuart: okay. henry mcmaster, you are the governor of south carolina, and we thank you very much for being on the show today, sir. thank you very much. >> thank you. appreciate it. thank you. stuart: you've got it. look at starbucks' stock, taking just a little heat on the new bathroom policy. not much. we're at $57 a share. kohl's, you know the chain, it says bad weather may have hit foot traffic, the stock is down 6.5%. but the parent company of tj maxx -- also the parent of
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marshalls, i believe, and a couple of over well known names -- they said that foot traffic is pretty good, same-store sales very good, the stock is up. okay. look at this, major league soccer. los angeles galaxy's ibrahimovic, he slapped an opponent in last night's game. the other player seemed to step on his foot. [laughter] that's one of the things americans don't like about soccer, the diving and the -- >> histrionics. stuart: you see what the man did, he touched his back side, for god sakes. >> wah. stuart: get out of here. slap him. you get it all on "varney & company" -- [laughter] "forbes" magazine naming the richest person in every state. we're going to go over some of the big names for you. can you take a guess as to who is the richest person and say
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stuart: before the break we it would you "forbes" is naming the richest person in every state, so here's a look at just a few of them. the richest man in washington state, no question about it, he's the richest man in the country -- in the world, actually -- jeff bezos. net worth, $132 billion. in california who do you think it is? mark zuckerberg. he's got a fortune now at $74 billion. in new york david koch of koch industries, he comes out on top, and his net worth is -- if you can read that, for the benefit of our radio listeners, $51.5 billion for david koch of new york. in texas it's alice walton from the walmart family, $40 billion. the family taken together, it's chose to $200 billion. >> it's not oil anymore in texas. [laughter] stuart: arizona, mark schoen, the vice president of u-haul, he's worth $3 billion. richest guy in arizona.
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got it. now, primary voters are heading to the polls in texas, arkansas, kentucky and georgia today. first of all, georgia. michael williams, he's looking to ride his -- you can see it right there, the deportation bus with. he wants to ride that straight into the republican nomination for governor, but it's a crowded field. he's taking on four others, and that's just in the gop primary in georgia. move to arkansas, the incumbent governor is asa hutchinson. he faces a challenge from jan morgan. president trump tweeting his support for hutchison ahead of today's race. there's the tweet. he, the president, supports asa hutchinson. there's a democrat primary in kentucky's 6th district to take on gop representative andy barr, there's also a runoff election in texas. we will have all the results for you first thing tomorrow morning on "varney & company." up next we have a guy who says the benefits from tax reform are still coming, and we could get a second leg up on the stock market. he's going to make his case
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stuart: a go-nowhere tuesday morning, i've got to say. we're down 10 points as we speak, right there at 25,000, but there are more winners than losers among the dow 30. interest rates? not apparently a problem as of this morning, the yield on the ten-year treasury at 307. last -- 3.07. rates on that aspect are down a little. i want to introduce our next guest who runs a fund that invests in large companies. it's an etf, and it's ranked number one by "the wall street journal" for its performance. this guy's a star. [laughter] and he says, better yet, the man says the new tax law is still going to give this market another leg up. welcome, please, and a round of applause -- [laughter] he's the ceo -- you're the number one ranked, right? >> we're also strong -- by the way, it's not just large cap, it's also global funds and small cap too. stuart: okay.
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if you're number one, it interests me what you've got to say, and what you're saying is that the tax cuts which have bled into the economy to some degree still have more bleeding into the economy to come, correct? >> absolutely right. it's more than just the tax cut. we're talking about entrepreneurial companies. i mean, these are companies that believe in esg. they have small imprint in the environment, they're strong in social, they're growing jobs by quite, 10, 15%, and their governance is very strong. these are companies that are not just acquiring and firing people, i mean, they're growing the economy. stuart: they're american capitalist companies. >> they are. stuart: and they're doing well. >> they're doing fantastic. stuart: and the growth in the economy and the tax cuts are helping them bigtime? >> it's fueling them. there's 17 companies in the s&p 500 that are creating about 300,000 jobs. and if you take those companies out, you've got, you know, 400 and something companies that are basically not growing at all. and these 17 companies are creating lots of jobs, they're
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informing in r&d, and they're fueling the economy. the others are spending close to $1.7 trillion so far in m&a activity, it's 600 billion over last year at this time. they're acquiring companies, and they're firing companies -- firing people. stuart: there's a couple of companies, i know your stuff, and i believe that you like netflix. >> yes. stuart: they've just done a deal with the obamas, president obama and michelle, and the stock is up just a little bit, it's at 333. >> right. stuart: do you think that deal is a good deal for netflix? >> well, netflix anding companies like it, like amazon and square, i mean, these companies are up 30, 40, 5% -- square's up 66%. these are companies that know how to grow, they know how to create jobs for the economy. so these guys are very sharp. i mean, these entrepreneurs who are running it have been doing it for a long time. you remember netflix years ago, people thought they were going the die a decade ago, and they just transformed themselves to something different. stuart: you don't care about the
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obamas, you couldn't care less about that. [laughter] you just look at the company and how it functions, and you say -- would you buy it? >> i own it now. [laughter] stuart: are you going to buy some more? >> we have it in our fund. it's part of our etf -- stuart: you didn't answer the question. are you going to buy more? >> well, sure. it's in our etf, it's a rules-based -- stuart: oh, that's right. you have to buy it. amazon -- >> i've had it for over a decade. stuart: and you're happy -- >> love it. [laughter] i love the stock. stuart: do you think it's going higher? >> i think it's going higher. they're maybe third inning of a nine-inning game. stuart: what's so good about it? [laughter] >> when you think about amazon, again, i'm not doing a commercial for amazon, but they had a 17% growth margin five years ago. they had 155,000 people five years ago. i mean, today their margin's 27%. they've increased it by ten points in the last five years. they've grown jobs from 155,000
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to almost 600,000 jobs. now, part of that was taking on whole foods, but they still have 3-400,000 jobs. so they're growing the margins, they're expanding revenues by 30% per year, and they're creating jobs for americans. i mean, who doesn't love that? stuart: we do love that. we like success on this program. >> yeah, sure. stuart: that's why you're on. you're a successful guy. last question. the dow today is at 25,000. >> yeah. stuart: can it go up significantly from here? give me the big picture. forget your etf for a second. >> okay. so the big picture is up until a few days ago the dow was nothing, right? it was flat. and the s&p is up 2, 3%. our funds are up 14%, small cap and large cap, entrepreneur growth is strong. these big, these large companies aren't doing anything. again, they're just kind of muddling along. when you think about the dow, most of the companies in the s&p, they're not doing much. stuart: you know, this is your first time on this program. i think you've learned how to
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handle -- don't answer the question. >> okay, i think it will go higher. stuart: thank you! you can come back. [laughter] we do appreciate it, thank you very much. good luck, sir. >> thanks. stuart: you've got to stay still. you can't leave the set whilst i'm still talking. just like you can't have the camera on the queen. [laughter] stay there. [laughter] the house is going to vote today on a bill to roll back most of the dodd-frank regulations. it's a key part of president trump's deregulation push. joining us now is congressman patrick mchenry, republican from north carolina. he's the house majority deputy whip. congressman, if you vote -- if the house votes yes on this bill today, am i right in saying that dodd-frank is essentially gutted, correct? is. >> that's right. the key tenets of dodd-frank will be unmoored. it's taken eight years and president trump to make this happen. and i think we're going to have a great, successful vote today, and the president will have a
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great signing ceremony next week. stuart: now, i believe that the community banks are really, really happy about this because they suffered mightily under dodd-frank. they are going to get relief today. we've got a lot of community bankers who watch this program, and they're rooting for in this to go through. they had been in a better position tomorrow if you vote yes today, is that correct? >> oh, for sure. i mean, what -- the worst part of, the worst aspect of dodd-frank was that it put this onerous regulatory burden on small community banks and even, you know, substantial regional banks that were not a part of the financial crisis and did not need the new level of regulation and regulatory costs. i was with a community bank in my district that, in black mountain, texas, they've got fewer than 40 employees, and they're struggling to keep the doors open and keep lending in the community. so our bill today takes a huge whack at dodd-frank, gives
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regulatory relief so community banks can get back to the lending we desperately need to -- stuart: okay. you're the deputy majority whip. it's your job to corral the votes. have you got 'em? >> yeah, absolutely. stuart: okay. >> this is a fantastic vote, good bipartisan vote. stuart: okay. one quick question. speaker ryan wants to stay in the speakership until the end of january. is he going to last that long? >> i think so. i think paul has the support of house republicans to stay and finish out his speakership. i think we've got, you know, corralling house republicans is quite a challenge, always is, always will be. it's in the nature of who we are as independent operators as republicans and conservatives, and house representatives is very active in that accord. so we've got plenty of different preponderances. that hasn't changed under -- opinions, that hasn't changed under this speaker, nor will it ever change. we'll make it through this year, still make progress for the american people. stuart: okay. we wish you well on the vote
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today, congressman mchenry, we appreciate you being here. >> thanks, stuart. stuart: sure thing. coming up next hour, president trump welcomes south korea's president to the white house. they're going to have lunch together, then they'll hold a series of meetings. of course they'll be talking about north korea including the planned summit with kim jong un. that's on the calendar for later today. this week -- i'm sorry, today mark zuckerberg is in brussels. he's meeting with leaders of the european parliament. they're going to ask him some questions about data privacy; specifically, facebook's role in the cambridge analytica scandal. the meeting will be live streamed worldwide, and it's going to start fairly soon. a couple of markets that we always look at on a regular basis. the price of gold, 12 is 91 per ounce -- 1291 per ounce. how about bitcoin? still in the $8,000 range? yes, it is. $8,200 per coin. a theme that we've hammered on this program, the great tax exodus; specifically, high-tax
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states to low-tax states like texas. some real numbers from the man who made the move himself, next. ♪ ♪ how do you gauge the greatness of an suv? is it to carry cargo... or to carry on a legacy? its show of strength... or its sign of intelligence? in crossing harsh terrain... or breaking new ground? this is the mercedes-benz suv family. greatness comes in many forms. lease the glc300 for just $449 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. so, howell...going? we had a vacation early in our marriage that kinda put us in a hole. go someplace exotic? yeah, bermuda. a hospital in bermuda.
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a hospital in bermuda. what? what happened? i got a little over-confident on a moped. even with insurance, we had to dip into our 401(k) so it set us back a little bit. sometimes you don't have a choice. but it doesn't mean you can't get back on track. great. yeah, great. i'd like to go back to bermuda. i hear it's nice. yeah, i'd like to see it. no judgment. just guidance. td ameritrade. ♪ ♪ >> i'm nicole petallides with your fox business brief. i just had the pleasure of speaking to the new incoming
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president of the new york stock exchange, and that is stacy cunningham. she started here on the floor of the new york stock exchange in 1994 as an intern and has worked at the new york stock exchange and the nasdaq and has been the chief operating officer here. now moved up to the top spot on friday as tom farley moves on to another issue s. and we see that she will be the 67th president here. after 226 years, this is the first female president, and she also joins another big female in the trading world, dina friedman of the nasdaq. so, and she has joined the nasdaq in 2017. so she begins on friday, some of the traders had some positive comments, and she did just stop by our fox business booth. ♪ ♪
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stuart: you know, i think we need an upe on the volcano. officials warn that lava is nearing the island's geothermal plant. that could result in the release of some nasty, dangerous gases and, yes, mandatory evacuations. meanwhile, we're getting a whole new look at the volcano. astronauts on the space station taking these photos. is that -- okay. the cloud that you see, i think that's -- >> the plume of ash, yeah. stuart: the plume of ash that's now drifting over the pacific. fortunately, not going over the rest of the hawaiian islands, going out to sea. but, of course, that could
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change. i want to get back to the story we've been covering for many, many months, the exodus of people from high-tax states like california to low-tax states like texas. our next guest use to be a california state assembly member, but he left the formerly golden state. his name is chuck devore, and he's now with the texas public policy foundation. chuck, it's great to have you back. thanks for being here. >> great to be back. stuart: have you got firm numbers on how many people left california and have gone to texas? >> well, sure. in the last five years according to the u.s. census bureau about 114,000 people net have left california and moved to. now, that's out of a little over half a million people that have left california over that same time period from 2012-2016. stuart: and i take it that the people who have left california are often upper income earners who don't like the taxes. is that accurate?
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>> well, it's all kinds of people, but you're absolutely right, stuart. you have a lot of entrepreneurs, a lot of small business owners that, frankly, are just getting sick and tired of california's crushing tax rate. they have a 13.3% top income tax rate and, of course, texas has no state income tax at all. but, stuart, on top of that california imposes crushing regulatory burdens. when i was in the legislature a little over ten years ago, we passed a bill to look at the regulatory compliance costs for small business in california, and the results came back that it's about $134,000 per year to comply with california's myriad regulations. stuart: and that was ten years ago. >> yes, sir. and i'm sure it's a lot more now. the problem with that, stuart, is if you don't comply with all of those different regulations -- labor law, environmental law, you know, all kinds of tax code issues -- if you don't comply with those and they find out, you're subject to huge fines and potentially even
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going to state prison. stuart: no wonder you left. okay. what's this i hear about a jobs boom in texas? have you got some numbers on that? >> yes, i do, institute. so in the -- stuart. so in the last the -- the last 12 months, texas has grown more non non-farm jobs than any state in the country. what's remarkable is california has about 10 million more people than does texas. so even though texas is quite a bit smaller as the number two state than california, we've seen the greatest amount of job growth in the lone star state than in any state including in the last 12 months. stuart: what kind of jobs are we talking about? are they well-paid, middle american jobs? >> stuart, it runs the entire spectrum from high-paid jobs in the financial industry and, of course, oil and gas even though there's not a lot of people directly employed in oil and gas. it does pay well.
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as well as manufacturing jobs and, of course, even service jobs, medical jobs, etc. the thing about texas that is different than california is that in texas you generally see job across the different levels of income more evenly than you do in california where it tends to look a little more like a barbell where you have a concentration of high paying jobs in the bay area and then a lot of jobs at the lower end of the spectrum and not a hot in the middle. which is -- not a lot in the middle. which is why texas has a better income equality level than does california. stuart: given the new tax law, to you expect the exodus -- which you've already described -- out of california into texas, into nevada, etc., do you think that exodus really speeds up? >> well, the preliminary information would indicate that maybe it is. when the u.s. congress passed the tax reform and tax cut signed into law by president trump in late december, because
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of the s.a.l.t. deduction limitation to $10,000 per family as well as other provisions, stuart, it was like changing the tax code in all 50 states at the state level at the same time. and so if you look at the 15 most populace states, ten low-tax states led by texas and florida, five high-tax states led by california and new, what you're seeing is that the job growth in the first four months of the year in the low-tax states is about 55% higher than in the high-tax states. and we just, of course, got the latest data for the april employment numbers last friday, so that trend is very interesting, stuart. and if that continues on, i think there's some serious political ramifications. stuart: indeed. chuck devore, i like it when you come armed with specific numbers that we can confirm our theory on the trend. thanks for joining us. >> thank you.
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stuart: yes, sir. i've got some big names, better look at these. first of all, sears. 31 sears, 9 kmart stores -- locations, i should say -- will reportedly be shut down by august. not much of a turn around, they haven't got much left, quite frankly. micron teaming up with intel, that stock has been on a tear recently. same again today. higher profit at autozone, the stock price has reversed course. it was up, now it's down 7.9%, whopping drop of $52 per share. got that get to the bottom of -- gotta get to the bottom of that one. higher sales at cracker barrel. virtually unchanged, the stock price is down only 15 cents. now this, millions of iphone users in britain are suing google over primary concerns -- privacy concerns. they say google unlawfully collected their personal information. next, judge napolitano.
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could we see a lawsuit like that here in america? ♪ ♪ your company is constantly evolving. and the decisions you make have far reaching implications. the right relationship with a corporate bank who understands your industry and your world can help you make well informed choices and stay ahead of opportunities. pnc brings you the resources of one of the nation's largest banks, and a local approach with a focus on customized insights. so you and your company are ready for today. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets.
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stuart: millions of iphone users are sug google over primary -- privacy concerns. they say google unlawfully collected their personal information by bypassing apple's default privacy settings. apple runs iphone, google runs android, but google's still giving out information. all rise, napolitano -- as in the judge -- is here. now, it's a london court that's hearing this case. >> all right. stuart: transfer it to america, could we see the same suit here? >> we probably could. the advantage of a london court is the definition of privacy in europe is more favorable to the plaintiffs. the disadvantage is, as you know, there is no jury in these cases. this would be resolved by a professional jurist. so the type of appeals to the generosity of a jury that plaintiffs' lawyers are notorious for in america can't
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happen over there. so in europe privacy is defined in such a way that there is no implied giving away of information. in america if i say to iphone, you have collected a record of every phone call i have made on my iphone without my express permission, the courts would laugh at me and say they own -- they sold you the phone. of course there's a record in there of the calls that you've made. in london there is no such implied. without my expressly saying you can make and keep this record, there's a violation of my privacy. so in other words, the case is easier to prove in europe, but because the judge is going to decide damages, the damages will be lesser. the case is more difficult to prove here, but if you can get to a jury, you're going to get more money. six of one, half dozen of another. stuart: it probably will come here. i mean, google's under attack on a variety of fronts at this point. >> yes, yes. but this idea that they can gather information from a device that's not theirs, that's what
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is troubling. i expect and understand that the people who operate this for me have a record of my use of it. i don't expect and understand that some other entity that i didn't choose has a record of it. stuart: right. >> that's the allegation in london. stuart: did you see "60 minutes" on sunday night? did you see that piece on google? >> i did not, but i am familiar with it because the number there was startling even to me who monitors these things if or you and for our colleagues here about the percentage of searches that go through google. stuart: 90%, isn't it? >> i'm sorry to say that, by definition that's a monopoly. stuart: yes. >> i don't know where the number is. the cases are all over the place, but it's certainly lower than 90 before you are a monopoly. stuart: is there access to so much information which allows them to compile an or extraordinary profile of you and i and everybody else, virtually everybody else on this planet?
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>> you know what they're going to say in defense? we are so efficient, nobody could mobility do what we do. you can -- nobody could possibly do what we do. you want to split us up? it'll take you ten times longer to get the information. that's the defense. stuart: one gentleman said if you want to know who are female truck drivers who drink bourbon in kentucky who are single or whatever -- >> google will get it for you in a heartbeat. stuart: in a fraction of a second. you're a civil libertarian. how do you feel about that, judge? >> i think that antitrust is a myth perpetrated by government because it fears businesses being richer and more powerful than government. stuart: or it's totally outdated and was designed for the 19th century and not the 21st century. >> correct. i recognize there are barriers to entry. there's no google that's going to come into existence tomorrow, but there's a lot of wealth in this country and in europe that could decide we want to bill
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some competition. let's see if we can do it. stuart: ah finish. >> don't hold your brent. stuart: dream on. [laughter] thanks, judge. >> you're welcome. stuart: there will be, and i promise you, more "varney" after this. ♪ there's nothing small about your business. with dell small business technology advisors you get the one-on-one partnership you need to grow your business. the dell vostro 15 laptop. contact a dell advisor today. with savings on the new sleep number 360 smart bed. it senses and automatically adjusts . c .
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stuart: moments from now the president of south korea will arrive at the white house for a series of meetings with president trump. we have news, by the way, from the south korean delegation. liz: national security advisor said 99.9% odds the summit will take place june 12th in singapore between north korea and president trump. stuart: from the south korean delegation? liz: that's correct. stuart: next case, what about the reinstruction of that nuclear testing site? liz: north korea is moving forward, two dozen journalists,
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more than that, showing up to watch it from around the world. north korea destroying its biggest nuclear testing site in the northeastern corner of china, or north korea. stuart: who would have thought. who would have thunk. our time is up. neil, it is yours. neil: thank you, very, very much. we're waiting to hear from the south korean president. remember when they used to come through the south entrance. now with this president, every one comes through the north portico. we're waiting from the south korean leader who we're told trying to make sure everything on track for the june 12th talks. blake burman from the white house what we can expect to hear. reporter: we're getting ready for the south korean president moon jae-in, who will be here with president trump, what will be a strategy session for expected summit. 21 days now in singapore between
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