Transcripts For FBC Varney Company 20171103

Broken out of the area and expanding faster than any time in the last ten years in my opinion, this is largely as a result of a trump presidency. Got is. Now look at this 900 billion that is how much apple is now worth. It is the most valuable company in the world. And this is how the stock will open today. A new high their profit reports late yesterday blew everybody away. Cant resist one more or very big number. Two p 268. 9 billion dlars how much cash apple has more than any other company and more than most governments. Got it. Stocks across the board theyre going higher this morning but not much but tax plan son the table good for business. Investors like this and they really love a physical profits not a bad way to start a friday. Varney company is about to begin. Big, big day for politics, of course, the money look at this President Trump i think hes if to leave. Joint based andrews hes headed to hawaii first that starts his trip to asia the longest president ial trip to that region since bush 41 back many 1992 hell visit japan, south korea, china, vietnam, and philippines. By the way, lloyd ceo of Goldman Sachs will join the president on this trip along with a whole host of top ceos from a range of companies. More on that later. But apple please stock of the day looks like a record high when trading begins today weve got about 174, 175 roughly. Apple gave a rosy forecast for the holidays and there was a long line at the apple store in new york city this morning. And elsewhere it as the iphone 10 hit the stores. Different story at starbucks sales fell short. Oh, dear not goods. And they are feeling the heat if from boutique coffee sellers and even big guys like mcdonalds. 54 bucks on starbucks. All right the state of the economy this friday morning, john chief of Capital Market economy, first of all 261,000 new jobs the overall jobs report how would you characterize it . Solid you know solid i think it is for the recovery im pleasedlet nots overlook that 4. 1 Unemployment Rate when was last time it was so low better yet we have a low Unemployment Rate with no sign of faster price inflation. We have no monthly increase bit average wage. Some say thats not too good but from the perspective of those that worry about inflation it is good news. Youre way out on a limb. I mean here you are bumped up great economy here question go boys. But solid economy look at first time jobless claims ive never been so wow relative to overall labor market in the history of the United States. Dont let me jump in and spoil this party john. But im going to. Weve gouts 3 growth right now. If we get the tax plan in place, somewhat similar to what weve got for tax plan what growth rate do you get next year . Sm at least 3 if not higher. One of the well that doesnt say much. At least weve got 3 now. All of these years of having groats over 2 will be celebrated you havent you done the math 3. 5 get that number out no im saying one thing we dont want to overlook is for the two first two full quarters of the trump presidency, were looking at productivity greet and excess of 2 annually thats incredible considering the last four years of the Previous Administration productivity growth average less than 1 you get practicivety growth like that chances are they 3. 5 might prove to be on low side and why are we seeing such rapid growth deregulation that was a very is smart thing that trump did and thats costless and thats going to help the economy considerly going forward. What did you have for breakfast. Not coffees or what come on. Thats pretty good. So youre perfectly happy with the state of economy now and in the future. Its good. It looks very good going out one year. Solid default on corporate side is are falling over next 12 months what could go wrong something external. Dont spoil it stay there and well hold you over in the market opens 9 30. Still going gang busters. Okay. Thank you very much john. Ive got to get to apple very strong profits. And sales and by the way the iphone so hit the stores earlier this morning. Joining us now lance chief cor respondent with apple big picture please is thes iphone x a smash success . I think it may be based on line i just saw this morning i was actually at the apple store up town on piflt avenue it is biggest line ive seen in years most excitement yes, there are people on that line who are buying into basically flip the phone. Sell it take it to china, elsewhere. But there was a lot of excitement and also ive been testing this phone or for ten days or 11 days now and people would stop me on the street they saw it and want to touch it and sew it. Theres interest that is at a whole new level despite the price. Yeah. It is really stunning to me that we have such a big price jump and yet people are still going for it. But etch knows you pay most of the people pay monthly i dont know if it cost much as couple of cups of coffee over a month place like cooke said but thats really how you pay. Youve had it it for ten days what single feature which you think retail buyers will like more than anything else. Face id and you know that coming right from the notch here that means that i unlock it with my face and it happens immediately literally time it takes me to do this it is unlocked it is unlocked now it happened it just happens like that. So you put it in front of you you look at it. Honestly it is like i can do it sort of like from here and so to be glancing at it and it has happened so its not like you know it is oh i have to hold it like that but really Good Technology that true depth camera also adds features ability to take Portrait Mode shots with selfies you love selfies. Thats what i thought i live on it. The nerve they have fun peeves like emojis but again this is the disease i think is inspiring people. 5. 8 inch screen and smaller than iphone 8 which has a smaller screen. sold on it . I really like this device i got used to the notch and by the way you may have noticed theres no home button. No rob with the apple brand but king of the hill. Yeah. I think as long as they deliver products that inspire. And you can see what happens when they do. That inspired you . It really did if you read beginning of my review people made fun of me the way i wrote it but i wanted convey emotion t is kind of reads like a steamy novel but it really does but im having fun and post it on our facebook phage. [laughter] youre all right thank you very much indeed sir i have to move quickly to get in tax reform, and wring in congressman tom reid republican from new york. Congressman reid is a member of the tax writing are committee. Congressman, welcome back. You are from a high tax state. Some of your constituents will end pup paying more because they lose the deduction for states and local income taxes. Are you going to support it . J yeah i think were on a path to a compromise thats going to bring are a lot of us especially us in the upstate area the value of homes, income level that were repghtinging in our area much different than inside the city. And so i think theres a compromise here and im comfort where were at and get a better deal. Better dole for state and local income taxes . You have to, maybe if they demonstrate so far is good faith and negotiation trying to protects as much more people as they possibly can. That argument carries sol weight and thats why we did not eliminate entirely. I think thats good and i would have not supported the bill if we would have done that. A shell game its a ponzi scheme and perpetuated by business, and Senate Leader democrat leader Charles Schumer says it is a tax burden placed on the palace whats your response to that . I wouldnt expect anything different from those folks on leadership on the other side of the aisle beholden to their extreme base theyre going to fight it tooth and nail and follow Elizabeth Warren and Bernie Sanders but at the pend of the day if were about getting things done for American Company and 1600 thats a trip to disney world thats a trip to visit their kid in the south that got drove out of new york state because of high tax thats an opportunity to explore its their money stuart and then it is with and big deal for your constituents in your area is this doubling of the standard deduction because thats what injects the most into your constituents pockets am i right . Ame because you look at our district average wage 40 for a family of four. Starngd deduction doubling take it is from 72 people itemizing up to 5 to 97 . That means simplicity that means people know what their tax code will look like and thats what another success of what we put forward here is looking like. Congressman had tom reid thank you so much for joining us. John lon what do you make let me address first of all speaker plon see is shell game. Perpetwaited by business a tax u burden on the middleclass, youre an economist what do you say . Thats gross exaggeration that create jobs in this country and if you lower their tax rate if you make it easier for bidses with a trillion dollars of cash goafs to bring it back to the United States it is going to benefit the average american overtime. One your lefthand side of jr. Screen i believe thats marine one, the president s helicopter landing to joint base andrews hell get out of the koapt and go across to air force one and then take off for the first to hawaii on the first stop first level of his asia trip. By the way, i believe that the president did speak briefly with er earlier and bring that to you momentarily youre going to see it right now marine one with landing there joint base andrews as we look at the dow industrials, weve got what, about 15, 16 minutes to go before we start trading this friday morning. Were going to be up about 30 point and 23,350 not bad would you say. Not bad at all. Under the wood from your morning. Im starting slowly building into this friday stew, in fact, a lot of stuff going on im going through the stories for you theres plenty to talk about in next three hours believe me. Jampacked news day apple had just fascinating me. What 900 billion dollars thats what the company is wot. I believe thats the most valuable xan in the world. Sounds like the gdp of some of these countries. [laughter] yes. Thats right theyve got more. Theyve got 268. 9 billion dollars cash. Lance is still with us to spend 658 billion on. They could buy twitter but they wouldnt. You know what theyll do theyll do what theyve done is buy Small Technology companies and hold on to it and use other products and nay ended up inside here. This is what apple dusts. We have the tape from president speaking to reporters. A long trip imrn some i know inform you are coming with us we look forward to. Were staying an extra day in the philippines with a big conference the second conference, and i think were going to have to Great Success well be talking about trade, well be talking about, obviously, north korea. Enlisting people and countries see what happens but were going to have a successful trip theres aiflt a lot of good will. I dont remember about that meeting it was a very unimportant meeting took place a long time i dont remember much about it. [inaudible conversations] all i can tell you is this there was no collusion. There was no thouing. Its a disgrace frankly that they continue. You ought to look at Hillary Clinton and you ought to look at new book that was just put out by donna brazil she bought the dnc and she sold election from bernie so thats what you ought to take a look at. What were doing is every time were attacked from this point forward and it took place yesterday, we are hitting them ten times harder so when we have an animal do an taig like he did the other day on the west side of manhattan we are hitting them ten times harder they claim to a soldier good luck every time they hit us we know that is we hit them like you folk wont believe thank you i will see you, i will see you in pearl harbor were going to pearl harbor. I dont know im not involved with the Justice Department i would like to let it run itself but, obviously, they should be looking at the democrats. They should be looking at all of that dishonesty. They should be looking at a lot of things and a lot of people are disappointed in the Justice Department including me. Thank you everybody. Thank you. [laughter] never misses chance now does he . Talking about the animal that will be the terrorist who attacked new york city. He says were going to hit them ten times harder and gungt miss an opportunity to have a go at Hillary Clinton. No collusion on my part. According to the president just look at hillary she bought the election. Stole it. Thats the wrord he use stole he gets a lot in a short amount of time do you remember the day of president obama in news conferences five or six and seven minute to be get on marine one free for five or six questions boom, boom, boom hard hit hadding answers. Different kind of president. Are we usedded to it . No but going to air force one and going to hawaii. Now i want to get back to tax reform thats the big, big economic story. Shares of Home Builders were down yesterday. After we all found out that the tax reform plan caps the mortgage Interest Deduction on new mortgages caps it at 500,000. Coming in Michael Bellman is president and ceo of the associated builders and contractors. You i dont think you like that provision in the tax law, do you . Well actually our ,000 members build residential hospitals, you know education and institutions industrials so residential a small slice of our pie and we look at totality we think it is solid. And we like the fact that the work force is going to get a good break and get another dollar in paycheck on friday the 20 corporate in the 25 small tax Small Business taxes is solid. Now youre the ceo of the associated builders and contractors. And thats the group that you represent and you are for this or particular peak, sir, program. Would you want to make any changes in it . Smg well there are some things that were running through in terms of analyzing so ive been tag to a couple of our members yetdz and were working through this past route 25 seeing how it is going to apply. We understand the floor of 7030 but we also understand that theres a Capital Investment formula. For our capital intensive businesses, that can drive that mix even more favorably so were running some numbers in hopefully well have some good scenarios in what will work with the committee to get it right. You must have heard from your members are they planning an expansion here. You know whats coming down the pike roughly speaking at least. Planning to expand in in terms of employment. Absolutely we have 500,000 jobs open right now least time we were employed 1 million more people in the industry and were looking for workers and excited about soflt provision in tax plan 529 are expanding their scope to cover a apprenticeship earned while you learn moldses which are big in our industry something thats really excite. Thats what was the biggest thing that advantage to you and your members in this tax plan . I think the whole totality lower rates for our work force and 20 corporate and 25 Small Business tax as well as the estate tax for our family Family Businesses 99 employ less than 1 million poem and most are family owned businesses so a nice win and good beginning or for us. Perpetrated by business and schumer says tax burden placed on middleclassier response to that . I dont sew that im not sure what theyre looking at. What ive been looking at shows benefit to workers it shows benefits to my member companies. Sir, we appreciate you being with us a very busy day today so i do apologize if i kept it a little short but michael thanks so much for being with us sir, oblige to you. Okay. Thank you very much. If you look at the bottom rngd corner of your screen as youres now soot were going to open 40 point high per on dow industrial first thing this morning moving to another new high. President trumps twitter account offline for 11 minutes because of one rogue employee. Were going to explain that in just a moment. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. We like to bring you the markets down ten cents next case President Trump twitter account well were down last night he tweeted it be this morning here we go many my twitter was taken down for see 11 mirps by a rogue employee and word might be having an impacts. What happened . Down for 11 minutes yesterday evening. Deact vatted by twitter employee twitter saying this, we have learned this was done by a twitter Customer Support employee who did this on the employees last day. We are conducting a full internal review. Of course it raises lots of question about how does twitter secure account like this to have significant political influence around the world. How many people can actually either delete or tamper with someone who doesnt like trump and cut his account. 11 minutes. I have a question, that will be you john, Consumer Confidence highest since 2000 president ial approval level lower than a long time. How do you explain that . Well the answer is right here a lot of young people have been intense dislike for this president no matter how much good he does for the economy or future job opportunities. I dont know how else you do it sort of like in style. Its in fashion to dislike this president if youre one of these younger individual thats all there is to it i dont know what will change you. I think youre right about the twitter about the at the heart of some of the dislike of the president your disapproval of him because he says what are punish things on that. He does not hold back and goes over the head had of the yods and communicates to everybody. Personally i love it. A lot of snowflakes out there what do you expect with a heartened sensitivity no youre no good and youre bad. Like when he tweets about this show. We have a few second minutes to go before we open this market. We will open this market higher this friday morning. The president has departed for his trip to asia tax plan is on the table and weve got according to john lon a solid report on jobs market first thing this morning here we go back in a second with the opening bell. Everyones got to listen to mom. When it comes to reducing the sugar in your familys diet coke, dr. Pepper, and pepsi hear you and were working together to do just that. Bringing you more great tasting beverages with less sugar or no sugar at all. Smaller portion sizes, clear calorie labels, and reminders to think balance. Because we know mom wants whats best. More beverage choices, smaller portions, less sugar. Balanceus. Org betty called me at she thought it was a fire. It was worse. A sinkhole opened up under our museum. Eight priceless corvettes had plunged into it. Chubb was there within hours. They helped make sure it was safe. We had everyone we needed to get our museum back up and running, and we opened the next day. Stuart well, well, it is friday morning, this is going to be a big day on the market especially for apple. The opening bell is about to start ringing, trading will begin in about 5 seconds time. We are expecting the modest gain right at the opening bell. After that, who knows where. We are up, we are running, 9 30 eastern friday mourning, 33, 34 points higher. Yes, the futures were right, the modest upside gain, but that is, by the way, an alltime high for the dow industrials. Never been at 23,555 before but we just made it right there. Friday morning, who is with me, jeff sica, first of all, ashley remember ster, lets not forget the man ashley please dont. Stuart john no, thats jeff sica. Im doing this deliberately to the director. Im really annoying her. Im stuart varney. [laughter] stuart first of all, i want to talk about the apple iphone, sales go on today, iphone 10, that is. The stock just opened, alltime record high, 3 and a half percent gain, so jeff sica, would you buy it no,. [laughter] you know that i thought apple has been overpriced for a while. Stuart overpriced for a while . Its been overprice. Tim cook got himself a free by because this summer does not reflect the slow iphone 8 sales, so for my perspective u apple, yes, this was a big number, its blowing everybody away in terms of the near a trillion dollar number, getting to that level but what people have to be aware of is apples plan of rolling out new versions of old products bolting on gimmicks, this phone the x is about 40 higher than the 8 and my question is, what happened to the 9, we go from the 8 to 10 to 40 higher phone and its going to take a lot of love for apple for people to step up. Ashley perhaps the bigger question is what comes now . How do you improve on this . Do you bolt on new features and charges 1200 bucks. Im not paying 40 more percent for the phones to recognize me. Stuart dont you like the emojis . Its not happening. Stuart as of right now, apple is worth 895. 8 billion. Right. This is a consumer Electronic Company right now. They make all their money selling one product that they put features on, but one product and, you know what, thats fine for apple, but lets not get ahead of ourselves, amazon, google, facebook are innovating, apple is not. Stuart you spent two and a half minutes having a go at the stock of the day. Well done, sica. Welcome to my world. I have to get to starbucks. This is important, the company trimmed profit forecast, by the way, sales fell short. You know, those boutique coffee shops are making interim. Stock is only down a third of a percent. The stock was much more down yesterday. The selling tazo tea. Tazo tea. They are selling it to unilever. Ashley the question why did they bought it in 1989 for 8. 9 billion. Stuart wait, they bought it for 8. 1 billion and they are selling 300 ashley pretty good markup. Pretty good business. Stuart i call that a profit. I would say thats true. What i love about the comments, we want to focus our tea efforts, tea efforts apparently on the tea varner brand. Stuart they made a profit and they are out of it. [laughter] stuart this is a coffeedrinking rightcenter nation. Am i right or am i right . We are not going to go to jeff sica. Weve had enough of this good news of the day. John, repeat your comment about the jobs report and characterize it . I think its a solid number. What i like about it is that it gives no hint of faster price inflation, thats going to keep Interest Rates relatively low which will provide valuable support to the equity market. We say the equity market is overvalued but if you compare some of the earnings to price ratios with Interest Rates, the equity market still looks attractively priced. It could go even higher. Stuart very interesting. When youre tell manager e that the tenyear treasury yield is going to have a hard time making it above 2 and a half percent over next 12 months, equities look fairly pricey. Stuart im going to turn to jeff sica to see if has anything to say about the jobs report. Im not denying that the economy is improving. A lot of optimism. Here is what we have to worry about even with the jobs report. If for some reason we hit a snag with the tax plan, we are going to see a pullback. So i think the market is priced to perfection and, yes, i agree with john, theres not a heck of a lot of other places to go. We have been in this place for nine years. Stuart about to turn negative in the dow industrials, 35 points, down 3 points, 4, points, 5 points. Weve had a turnaround in the couple of minutes of business. Individual stocks making the news and im going to quote them for you. Cvs, less money coming in, lower ad sales, i wonder if thats got something to do with football, im not sure about that, the lower ad sales down. Gamemaker, falling short, but the company today releases a new call of duty game thats usually a huge event, the stock is down a buck. Lets not forget General Electric, the stock closed below 20 bucks a share, first time in five years. Jeff, are you buying below 20 . Last year i said i would pack out and i withheld doing that because theres one major concern i have with ge and thats the 4er dividend. Flannery with a great, great ceo. He is going to cut a minimum of 2 billion, hes going to streamline the company, he has said hes going to protect that dividend but if he opts to cut that dividend, i think the stock is going lower. If i get some support on the dividend, im going to begin pecking at this very hard because its got an upside. Stuart all depends on the dividend to you. Got it. You know the names, animal planet, tlc, discovery channel, parent discovery communications, they reported accelerated decline in subscribers to all those channels. Is that cord cutting . Ashley it is cord cutting, thats a bad sign, down 5 for the quarter. They are losing a lot of the smaller channels that belong to discovery, the big one, discovery of self and the other channels associated with the discovery are losing subscribers, last week comcast reported largest of t subscribers. At t all reporting subscribers losses. Stuart it really has. We are keeping an eye on blue apron stock. Hit a new low yesterday, down again today, that stock is down 60 since its ipo. Jeff, youre not touching this . No, as a matter of fact, i would fire up the organ for this because i think the bottom line with blue apron is ashley there it is. About to force it into extinction because they will offer delivery food and theres a lot of offerings coming online. Blue apron has lost their opportunity. Its over, i see no future for them. Stuart thats tough stuff, jeff dont boss me when i talk about the federal reserve. Looks to me, john, like steady she goes, modest rate increases because of this new guy. Exactly, thats just what the u. S. Economy needs. I think its a very wise choice and will serve u. S. Economy well going forward. As you said, Interest Rates are not about to go through the roof stuart a bit late i thought. You could have buzz me in the beginning. No big deal. No big deal. Also emphasis on deregulation specially for smaller financial institutions, smaller banks, very good idea. Stuart got it. President trump heading to china next week and joined by more than two dozen deal makers, titans of the industry, ceos of Goldman Sachs, qualcomm. Jeff, hes taking Business Leaders with them, over two dozens of the titan of the industry. I will say this is probably one of the most important economic things that trump has ever done. The trade deficit with china is onerous, we need to do something about it. I believe the position hes going to take which i think is very smart is hes going to encourage china to allow us to invest in the in china companies, hes going to encourage us to be more active with china and i think from that perspective, this this conference is crucial. Stuart we all thought that the president was going to asia to put pressure on north korea, but in fact, its a positive opportunity for business and all the Business Leaders hes taking with him. When it comes to china and their policies, i think hes going to blow this up. Hes got to be very specific that, yes, they have to intervene with north korea, but the trade deficit needs to be dealt with. Theres billions of dollars to be made for this country. Stuart stay off twitter, mr. President. A lot of people would be shocked that the number of cars General Motors sells in china. Its almost as many if not greater than the numbers sold in the United States now. Stuart car market in china is the most expanding, biggest car market on the planet at this point. Every industry, every industry relies on china for growth or we wont have growth, so if we get if we make progress and start getting growth every single industry is going to benefit. Stuart we hear you jeff sica, regrettably its 9 40, time to say goodbye. No, are they staying . We are not throwing them out . What a guy. [laughter] stuart check the big board. [laughter] stuart we are down 17 points for dow industrials, just a tad below, 23,500. Gary cohn, would the president s tax plan be retroactive to january 1st of this year. That is a very big deal. Are we looking at a christmas timeline to get this thing done, how would he make sure that Companies Bring cash back from overseas. Gary cohn, we have the questions for him, i think he has some answers. We will be back. On netflix that takes advantage of 1980s nostalgia, Second Season and its a huge hit. Also coming out with numbers, 15. 8 Million People tuned in for it and that really surpasses the other cable walking dead which debuted 15 million. Netflix shares a little down, cinema a weaker open this morning but year to date netflix is up 61 . So this falls into the original programming category, but here is the hitch with these numbers, a spokesman from netflix says, we keep our viewership numbers private. Their mass might be from the upside down which is a direct reference referring to the alternate dimension of the show Stranger Things. Stuart good explanation, lori. I am nostalgic, very true. Ladies and gentlemen, we were expecting to have gary cohn on the program right now but theres a situation at the white house, theres a person in custody after a call was made about an explosive along the outer fence at the white house. The secret service shut everything down, theyre investigating, in all this clear, we do hope to have gary cohn was. Should be about ten minutes away, maybe. But we will get mr. Cohn on the show as soon as he gets to the camera. Now this, the gop tax bill announced yesterday actually kills that 72,500dollar electric vehicle credit, that would seem to me bad news for tesla. Theres a lot of companies that are trying to bring this type of technology to the forefront forward and i dont think it really matters much in a macro sense at all. Stuart what do you mean . First of all, not the greatest idea to have the government try to steer companies into a technology when theres a lot of momentum moving in that direction in the first place. Stuart jeff, go ahead. Im no fan of tesla. Everybody knows that. But here is what i see, is this tax cut put the industry on an onlevel playing field. Now that its going to be potentially be removed. We will see how tesla will do against car makers without tax incentive. Ashley it doesnt remove state tax credits and other incentives provided fbi state. Stuart can california can still go on and on. Ashley tesla uses the credit as part of pricing calculation. It is going to hurt them in that sense. Stuart i wonder about General Motors, they are coming out strong with electric. Ashley bolt. Youre talking about 1 . Theres 1 in electric cars. Electric cars might have a future 20 years down the road, in the immediate future, theyre not as relevant as people are making them out to be. I do think the future is in electric cars, but its certainly not in the near future. Stuart you know, i go back to a review that i read the chevy bolt, in the wall street journal, their reporter had taken this thing out for a ride, he was reviewing the chevy bolt and he really liked the user experience, acceleration was terrific, it was really quiet, he felt like you were in a spaceship, it was futuristic, the guy loved it. That turned the equation around for me for electric cars. Ashley once you try it, you can easily get hooked. Just take a test drive because its a very attractive you do love it until you get to 250 miles and then you to plug it in again. [laughter] stuart they are going to solve that. If the users experience of electric car is so superior from the oldlying gasoline powered car, i really can see that thing being a thing of the future. Could be, are you buying one . Im going to take the test drive of one. Some people like the turn the key and hear something. I like to turn the key and hear something besides of breathing. Stuart i used to drive a porsche and racing tires on the back, when you turned the key on, it felt good. Next case, look at the stock price of chip maker, will legally relocate home address to the United States, they coming back from singapore. What do economists say about that . Lower taxes and businessfriendly environment, of course, you have a lot of innovators, scientists and engineers reporting to the industry. Stuart looks good for pr ashley theyve committed to coming back even if this tax bill doesnt fly. Stuart really . Ashley if it doesnt pass, regardless we are coming back. Stuart they moved two years ago and now they are moving back again. Whats the cost of moving . Ashley thats a very good question. Stuart the stock is up. All right, im going to try gary cohn economic adviser to the president , he will be with us at 10 15 this morning. I believe we are going to take a commercial break. You know we pay the bills here. Back in a second. Who knew that phones would start doing everything . Entertaining us, getting us back on track, and finding us dates. Phones really have changed. So why hasnt the way we pay for them . Introducing Xfinity Mobile. You only pay for data and can easily switch between pay per gig and unlimited. No one else lets you do that. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit or go to xfinitymobile. Com. Stuart Donna Brazile, by the way, the dow industrials are down 23 points, all right, i will repeat this. Donna brazile and her new book says the dnc rigged the election for Hillary Clinton and kept Bernie Sanders out. Matt is with us from the american conservative union. Is this the end of the clintons . Politically . Boy, i mean, clearly half of the party is all done with the clintons, they dont want to see them again but i think the democrats, stuart, i think youre onto something, Donna Brazile and all the insiders of the Democratic Party, Elizabeth Warren, i do think they are done with them, criminal syndicate to go away. Stuart they are escape artists in realistic sense. I get the sense, though, that they cant escape this politically at this point. Yeah, look, they should not have escaped all of the criminal wrong doingings including the criminal wrong doings with the dossier, but you have leading democrats, including Donna Brazile, leaked the question about the flynn water crisis to the clinton camp against Bernie Sanders in the primary, even she as a clinton apologist is turning against them. Stuart why did she do that . Why would Donna Brazile who is a friend of the clintons, the interim chair of the Democrat Party, why did she suddenly admit, yeah, hillary rigged it . Its a great barometer. When she found the smoking gun that the dnc had signed an agreement with Clinton Campaign to allow Hillary Clinton to rig the process so she could get nomination, she thood call Bernie Sanders, she had been part of the problem when she leaked the questions. It tells us all that the Democratic Party is truly changing, in this sense they are shedding themselves with the clintons. Stuart yes, but they are heading left. Surely this gives Bernie Sanders and leftwing of the party a cloud. Thats right. This is the big question that the nation has to face which is we are evenly divided politically, all the antitrump media out there, theyre out to kill him and attack him and stop agenda, you have a big section of america that is increasingly turning toward socialism, they are fine with the topic, they like what europe has done and bring it here and this is the big fight for the future of america and i think our conservative values, they have to win. Stuart i agree with you. I think we face a choice as a nation, are we going to be america unique and different or are we going to become more like europe neosocialist. I keep talking. We are out of time. [laughter] stuart im very sorry. Great to be with you, stuart. Stuart thanks for jumping in the last minute, very much. We have three minutes to go and you will have my take on Donna Brazile and the clintons, back in a second from the market when it might be time to buy or sell . With fidelitys realtime analytics, youll get clear, actionable alerts about potential Investment Opportunities in real time. Fidelity. Open an account today. Fidelity. Our recent online sales success seems a little. Strange . Nk na. Ever since we switched to fedex ground business has been great. Theyre affordable and fast. Maybe too affordable and fast. What if. People arent buying these books online, but they are buying them to protect their secrets . . hi bill. If that is your real name. Its william actually. Hmph . Stuart its over. The political life the clintons is done. It was Donna Brazile who delivered the final straw. Former chair of the Democrat Party reveals that hillary did indeed manipulate the Party Machinery to keep Bernie Sanders out. Stated differently, the fix was in. Hillary made sure bernie couldnt win the nomination. Democrats are not happy. Their own party rigged civil put forward a flawed candidate. Theyre thinking it could be president sanders. Senator Elizabeth Warren, a bernie supporter, we have to hold the party accountable. There will be hell to pay. All coming down on the clintons. Remember there are two two bubbling scandals. Clintons spent millions of dollars funding of the dossier, that is disgrace. The clintons took in tens of millions as hillary as secretary of state okayed sale of american uranium to russia. The clintons are escape artists and lawyer up, and they have plausible denial of any legal wrongdoing. This is politics, very different. They can not escape the political judgment of their own party. That judgment is, you cheated, you lost. Youre done. As we speak, President Trump is on his way to asia. He has a big win under his belt. The tax plan, the economy is growing and jobs are coming back. President trump totally dominates the scene. What a contrast. A year ago hillary thought she was going to be the president. Times change. The second hour of Varney Company is about to begin. Stuart all right, were 31 minutes into the trading session on a friday morning, look at this, were down just 12 points but we just got some numbers released on the Service Sector of the economy. Ash . Ashley talking about the growing economy, stu, you were talking about, the estimate was for 58. 5. Blew away estimates. Very strong number indeed. Excuse me, let us not forget, that im going to cough again. Let us also not forget over 70 of the labor force is Services Related this is a huge number, another indication that the economy is moving very well indeed. Stuart that is a very strong, number. Big, big number. No impact on market. Ashley no. Stuart were at 23,500 as we speak. Were still down 14, 15 points. That is where we are this friday morning. How about the s p 500. Give me apple. That is the stock of the day. It is up four bucks. 2. 3 higher. Iphone x on sale. Long lines where you can get it. The apple is now worth at this price, worth almost 900 billion. Ashley wow. Stuart most valuable company in the world. Ashley that service number, put the cherry on top, strongest number in 12 years. Stuart is that right . Ashley yes. Stuart that is very important. No impact on market. Ashley no. Stuart the economy is still growing and were down 13 points on the dow. How about General Electric. We closed below 20 bucks a share. Struggling back to the tune of three cents, 19. 97. Starbucks, sales fell short. They have a rebound. They were down 5 when numbers came out this morning. Were back up 3 . 56 bucks on starbucks. Got to talk tax reform. Who better to tax tax reform, jim jordan republican from ohio. You have a big smile on your face. I love coming on your show. Stuart i know why youre smiling. You are smiling because all those rich liberals in hightaxed states are about to pay a lot more in tax and you love it, dont you . I am smiling the trend of this plan is to cut taxes, simplify the code and grow our economy. Three principles that matter pose. I think overall there have things have to be worked out as you rightly point out. Stuart sure. Move in the right direction and something we conservatives think node to happen. Stuart youre in the Freedom Caucus . Yes exactly right. Stuart your caucus will say yes on this. We need to work on the Small Business, passthrough rate. Make sure the formula is right. We need to look at the hopefully the issue on, on the salt issue, the state and local issue will get resolved. But overall, i think moving into the right direction, what would you like to see on the salt issue . That is state and local taxes, which at the moment are deductible in the future will not. That means a lot of people pay a whole lot more . I would prefer frankly the deduction wasnt there. Theyre starting to talk about compromises to allow for local property taxes. If there is something worked out to help us get votes, get overall package. Corporate rates going down. Corporate rate going to 20. Getting rid of alternative minimum tax. All things that will lead to better growth and Economic Growth. Stuart have you no heart, jim jordan . All those people that live in new jersey, new york, connecticut, massachusetts illinois, and especially california they will be bled dry by this thing . Have you no heart . I have a big heart. I want to cut rates for families to spend more money to spend on kids and grandkids. Get rid of crazy alternative minimum tax. Simplify the code. We always come back to this, it should be three key principles, will it actually cut taxes, let people keep more of their money . Yes, this plan will do that. Will it simplify the code . Yes, this code is way too complicated. We need to simplify. You talk about this all the time, stuart, will it lead to Economic Growth . Stuart yes. Is it conducive to Economic Growth . Everyone knows the corporate rate is biggest factor. Those are things that we focus on principles that count. Stuart you think will produce more Economic Growth. We have 3 now . You think it is going above that significantly next year . Yes i do. It has to. You know this. To deal with a debt of 20 trillion. You have to grow a lot more than the obama years, bumping along at percent, percent 1 2. Under President Trump, last two quarters hit three. We need 3 growth rate. We know this at some point, conservatives are pushing at this, you have to address the spending problem. Stuart i want to address my editorial at top of the hour. I will say it again, in my opinion the political life of the clintons, both of them is done. Are you going to take issue with that, jim . Doesnt surprise us that they were rigging the game at the dny. These are the same people that you said at opening statement, they paid for Opposition Research dossier. This is the same lady, who when four americans gave their life for their country, i was on the benghazi committee, she issued a statement that night when tyrone woods is still fighting on the roof of the annex, she issued a statement blaming a video while he is fighting to save his life and saved his fellow countrymen, because she is focused on her political career and political future. Shouldnt surprise you lie knit midst after tragedy like benghazi, pay for Opposition Research on opponent, youre rigging the game within the party, making sure they beat Bernie Sanders in democrat nominating process. Stuart jim, when we were talking about obamacare reform. There were no smiles from you. Now were talking about tax reform and Hillary Clinton. All smiles. What a guy. Jim jordan. Thank you, stuart, thank you. Iphone x, you might have to line up for it. It is 1000 bucks. So far it looks likes a big success. Gene munster, loop venture managing partner is here. Gene, welcome to the show. Hello. Thanks for having me. Stuart youre a big supporter of the apple 10 . I really am. Im surprised turnout, quickly put that into perspective. Were expecting the lines to be about double what the iphone 8 lines were back in september. This morning we measured, if you want to get technical, 4. 7 times the size. Stuart you actually did that . You counted the line . Weve done it since the very first iphone. Every year we go to the fifth avenue store and count this. Even though mathematically immaterial to the iphone business looking at those lines, its a pulse in terms how consumers think about it. Year seeing across the globe these lines. Stuart what is biggest single selling point on this 1000dollar phone . Can you put one item. It looks different. First time in three years it is all different. There is all display. There is no wasted room at top and bottom of the phone. Stuart mean muenster, thats it . Consumers like bigger screen and smaller form factor. Stuart what it tells me to total outsider of technology, tells me the apple brand, the cachet of apple x, reins supreme, king of the hill. King of the hill. Apple reported results last night. Results were good. What is most impressive those results didnt have any of this, little of this iphone x supreme brand approximatelythrough. That is still to come through the story. Stuart you have been on the show many times. We always ask you about apple and tesla. I read your tough about tesla. You say tesla will be the Number One Technology stock in five years. Thats true . Thats what you see . I think so. Stuart why . Into weve taken a couple step backs, the stock is down 30 . The reason why, even though they have production issue with the model 3, once it gets on the road it will fundamentally change how consumers think about electric vehicles. Stuart why . It is more simple to use. You dont have to go to the filling station. The interior is is a new paradigm. You dont have all the dials. Very simple interior. More efficient. Cheaper to have. Typical car you have to maintenance. These require almost no maintenance. Cost of ownership is lower. Stuart what about this 7500 tax credit which is being withdrawn under this tax plan . Makes no difference to them . It will be a headwind. It will cause cost of vehicles to go up, at least model 3 by 15 . Would i expect, my bet, that they end up lowering cost over time and probably share some of that burden with the consumer. Stuart i have to ask you this, full disclosure, do you own tesla stock . I do not own tesla stock. Stuart are you going to buy buy it in the near future . I would love to buy it. Since we do research i cants. Stuart you cant. I cant. Stuart you can talk it up but you cant buy the thing . We want to lay out groundwork whats happening. Stuart you said you dont have to spend time in filling stations. I got that. What do you mean . Your car charges at night. You dont have to spring by the gas station anymore. Repairs stuart suppose i go on twoday trip, wherever . You probably do that three times a year. Take another car to do that. Or have a second car thats a gas car. Stuart you still think will be Number One Technology company stock, really just one quick thought here. Stuart go ahead. It is not just about the car. This is a piece that i think sometimes gets overlooked. Their Mission Statement is to, accelerate Global Adoption of renewable energy. Like it or not, this is a growing trend. And i think if they can do that, start displacing power companies, this ends up being much bigger story. Stuart thats fascinating. Gene munster, always original. Love being here. Stuart pity you cant buy the stock. I would love to. Stuart gene, thank you. Coming up, White House National Economic Council director, very important guy, gary cohn. This is the trump economic push in action. This guy pushed for the trump tax plan. Looks like he got it. He is is on the show shortly. Check the big board. We go to the white house after the break. Were down just 21. Think your Large Cap Equity Fund has exposure to Energy Infrastructure mlps . Think again. Its time to shake up your lineup. The alerian mlp etf can diversify your equity portfolio and add potential income. Bring amlp into the game. 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A kohler walkin bath provides independence with peace of mind. I enjoy the fresher things in life. O. Fresh towels. Fresh soaps. And of course, tripadvisors freshest, lowest. Prices. So if youre anything like me. Youll want to check tripadvisor. We now instantly compare prices. From over 200 booking sites. To find you the lowest price. On the hotel you want. Go on, try something fresh. Tripadvisor. The latest reviews. The lowest prices. Stuart look at that level, 23,500. Red and green among the dow 30 stocks. I want to get to the tax plan. Our next guest is a business owner. He will be affected by this plan. He is an old friend of the show, che wong, owner of boxed. On line retailer. Hopefully affected postively bit plan. Stuart but youre not a subchapter scorporation. Youre a limited liability company, property size. Yes. Stuart you will get if the tax deal goes through, maximum tax rate 20 . Exactly. Stuart your taxes will be cut. Are you going to use that money to expand . Absolutely. Were in expansion mode for our company. Doing 40,000 in sales 2013 to 100 million last year. It has been quite an expansion time for us. Stuart okay. Youre expanding anyway. Yep. Stuart will you expand more because of the tax cut . More about folks getting rebates and more money in their pockets. For those folks, they can stock up, save a little bit more and spend a little bit more. Stuart you see it as flatout plus . I see as a plus. There are certain kind of points of debate right now, the main thing everybody one is debating points, whether we should do it or not. Universal everyone believes we should do tax reform in this country. Everyone is debating merit, rather than debating whether we should do it or not. Stuart you are Distribution Center in bulge. Items like toilet paper, oreo cookies, clorox wipes. Living the dream. Stuart so am i, son. You got four Distribution Centers, mostly in the new york area, but you are expanding where . Yeah. Were expanding all over the place. Our business now, not just urban areas. It is in suburban and rural areas across the country. Look at the data, 30 million americans without a costco within a 30 minute drive of them. The brand of costco is ubiquitous but the locations arent. If you dont live within 30 minutes, do you pay retail . We dont think so. Were offering them an alternative. Stuart are you going to the midwest. We are. Midwest is big area. Southwest as well. We ship anywhere to the lower 48 states. Stuart you have to tell me how up your expanding. Your business is growing. I understand that. Distribution centers, jobs, Capital Investment, where in the south and midwest . How many Distribution Centers . You can tell me. With our network we can cover 99 , 94 of the population in two days or less. As we look at the midwest that number goes up. I dont want to tip our hand in terms of local municipality but were definitely kicking few tires. Stuart wait a second, youre kicking few tires. What you are doing is going to local authorities saying how much will you give me if i expand in your town, thats what youre doing . Not only that. How the distribution will work. Stuart yeah, yeah. Also if they think im goodlooking for not. Really scientific factors. Stuart youre just like amazon. You will go where the best tax break is, wont you . No, i think we have, we have done sim is lar things in the past. But what we found is that it is more important than the area has a great work ethic. Folks that really see joining us as a career, rather than 9 00 to 5 00 job. They value the fact that were bringing in jobs that are actually skilled. These folks as we automate more and more centers are working with the stateoftheart Fulfillment Center technology. If there is the match, that is where we go. Stuart i bet wall Street Investment bankers are all over you to do an ipo, havent they . A lot of interesting dinners. Stuart dont hedge. In the back of your mind, isnt it . To a certain extent. You know, at the end of the day we have investor too. You have to provide them with liquidity at some point in time. Stuart yeah. There is still a long way to go. Stuart you could bring in a lot of capital, couldnt you . I think we could especially the bull market. The market goes up and up. Timing might be right. For us there is still way more execution to go. If we press the bell im coming here. You twice can press the bell with me. Stuart youre on. Chieh, boxed. Thank you very much. Item sports interest, Ezekiel Elliot plays for the Dallas Cowboys sunday. Federal Appeals Court grant ad stay on behalf of elliot, once again putting off his sixgame suspension. The case continues to weave through the courts. Meantime elliot will play sunday against kansas city chiefs. Stuart that is a big deal . Ashley that is a big deal. It was consider adlong shot that the federal court would grant a statement he was not charged with Domestic Violence but the league did a yearlong investigation and posed that suspension. Interesting case. He can play against the chiefs this weekend. Stuart he will play. Apple and the iphone. Steve jobs as the dreamer. Tim cook as the mechanic. What a contrast. We will explain and analyze. Well be back. I love to eat. I love hanging out with my friends. I have a great fit with my dentures. I love kiwis. Ive always had that issue with the seeds getting under my denture. Super poligrip free. It creates a seal of the dentures in my mouth. Even well fitting dentures let in food particles just a few dabs of super poligrip free is clinically proven to seal out more food particles so youre more comfortable and confident while you eat. Super poligrip free made even the kiwi an enjoyable experience try super poligrip free. Or a little internet machine . It makes you wonder shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. So all you pay for is data. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit, or go to xfinitymobile. Com. Stuart wow, talk about a sharp edged tweet, look at this. President trump slammed elisabeth warren, pocahontas, just stated that the democrats led by crooked Hillary Clinton rigged primaries. Lets go fbi and Justice Department. Senator warren surprised. Ashley here is what she said. You might think your tweets are cute, real donald trump, it will not stop muellers investigation or keep your people out of jail. He calls her pocahontas because . Because she claimed to be nativeamerican ancestry in order to get a job with harvard law school. She got the job but she was not qualified on the grounds that she did not have sufficient nativeamerican blood with her. She rigged the racial spoils system. Hence the nickname from the president pocahontas. Ashley talking of rigged, you will hear from the president on dnc, the fact that the clintons basically influenced the whole thing, through their money. Stuart senator warren came out, talking yesterday, talking about the hillarys fix of the democrat nomination. Ashley yeah. Stuart she says the party has to be held accountable. In other words, she is firmly on the left and going right against the Hillary Clinton wing, what is left of it of the Democrat Party. Ashley the president commented on that. There you go, she stole the primary from Bernie Sanders. He promptly got on his plane. Stuart nonstop, isnt it . It never stops. The president is always in the news. He has always got a tweet and doing something. Ashley it will never going to change. Stuart that is true. He is 71 years old. Ashley, got it. Gary cohn, we believe is next. Stuart Dow Jones Industrial average is down 12 points. That is surprising. Apple is way up. That will lift the dow. Sharply on the downside, moving lower. Big tech, look at it, facebook down, amazon, microsoft, alphabet also down. Apple huge winner, up three bucks that would be up 2 . Up 2 almost. 171 on apple. Individually now, facebook, never got back to the 180 level after that Earnings Report and the statement they will have to pay out a lot of money to take care of the russian business. Theyre down to 177 as of right now. That is still pretty good. Starbucks way down yesterday after they reported sales had fallen short. Now a complete bounceback. Up 2. 7 at 56. How about General Electric . Ge is below 20 a share. At that level, it yields 4. 5 in dividend yield. Ashley for now. Stuart for now. That is under threat. It could be withdrawn. We have to say that. At 19. 88 it yields 4 1 2 in dividend. Blue apron, this is dreadful story if you ever invested in this thing when they did the ipo this year. It is down 60 from the ipo price. Down 1. 3 right now. Here are two dow stocks which are hurts overall dow average. Goldman sachs is a dow stock, down two bucks. Having some influence on the dow. Look at that, it just turned positive. Im not quite sure where the loss from the dow is coming from. But it is still on the downside. I think weve all got that pretty clear at this moment. Okay what else, have i got to deal with . I got microsoft. I tell you about that. Yes, i do own it, it is 83. 85, down 20 cents. Ashley 83. 85. Stuart that is what i was waiting for. In my ear, we have from the white house, economic director, gary cohn. We got you. I know you have a big smile. You did it. You were pushing hard for the tax plan, you got it. Take a bow, sir, go ahead. No, bow, sir, but thank you. We have a house tax plan out. The house ways and means will work on it next couple weeks. Hopefully well be on the house for the floor. The senate is equally working on their tax plan. Were excited to be working with both the house an senate on a tax plan. We think it will be great for america. Stuart the senate can not change it that much. Because youre locked into 1 1 2 trillion dollars worth of tax cuts over a 10year period. You cant exceed that. So there is a real limit what you can do with a house plan that we saw yesterday. Stuart, youre right. On the reconciliation instructions we have to be within 1 1 2 trillion dollars scoring over the 10year window but that leaves us enormous amount of latitude. The senate will have their own plan. It will have quite a few similarities to the house but it will have some difference and then we will work out those differences. Stuart youre a new yorker and there is a lot of people in new york and new jersey and connecticut, and massachusetts and illinois, california, high incomer earners they will end up paying more on this tax plan. Have you no heart, gary cohn, for these poor people, they will get slaughtered, and you know it can you do anything for them . You have to look at the tax plan in its entirety. That is what were trying to design. Weve been trying to design a tax plan good for 300 million plus americans. The tax plan has a lot of different components to it. Most importantly, were trying to drive Economic Growth and were trying to drive wages for middleclass americans. That is what is really important. When we drive Economic Growth, everyone in the country wins. Stuart i have seen a republican this morning who is saying that youre financing big cut for a business, so the rest of america can pay more. People pay more, some people pay more to finance a big cut for corporate america. That sounds kind of realistic, doesnt it . No, stuart. What worry doing, were making ourselves more competitive. Were lowering our business tax rates here in america, so we can compete with the rest of the world. Today we cant compete. Companies move offshore, they save 15 or 20 on the tax rate. So they domicile offshore, they move jobs offshore. We need the jobs back on who are. We need revenue back onshore so to tax it. We put out a couple economic studies when we move the jobs back onshore well grow wages in this country by 4,000 per family. Growing wages is what is important in this country. Stuart yesterday, we were breaking details of this plan, we heard from a republican who said, if you get it done this year, it will be retroactive to january the 1st of this year. No, you cant do that. It would cost too much, wouldnt isnt. Stuart, were trying to deliver great tax reform to the american public. We cant get it retroactive to this year. Were trying to do a tax plan that starts january 1st of next year. Stuart now you have a low tax rate, 12 for cash coming back to america. 5 for tangible assets coming back to america. You must have done the numbers. How much money do you expect to bring back for that tax holiday for that group . Stuart, it is hundreds of billions of dollars are coming back. That is part of our calculation. Remember, it is deemed, were deeming that money coming back. So companies, the minute we pass this tax law, we get into 2018, they will have to accrue the liability. Once they accrue the liability. They will pay the tax, move money back and invest it back in the u. S. Economy. Stuart were hearing whispers in the senate they would like to move the Corporate Tax rate, maximum tax rate up to 22 . What would gary cohn say to that . Gary cohn would say President Trump will not agree to that. Stuart that is a short answer. You cant do this to me. I require conversation backwards and forward. You want to expound on this . No. Look, stuart, as you and i talked many, many times, we have been very flexible on what were willing to put in the tax reform package. There is really two areas where we have shown no flexibility. Number one is a business tax rate. We need a corporate rate 20 or lower. There is a reason for that. The worldwide oecd rate is 22 or 23 . If we want to be competitive with the rest of the world we need to be below that rate and 20 is the number we need to be at or lower. We have another bright line test, we need to deliver middle class, middle income, hardworking families we need to deliver them a tax cut. Those are two areas where the president wont budge. Everything else were pretty flexible on. Stuart im sure youre working phones with senators from the United States senate. You got to be doing that. What is the sense that youre getting from those conversations . Stuart, look weve been working with the house members. Were working with senators. Were working with everyone. We are all committed with both the house and senate to come up with a tax plan we can deliver to the president s desk this year for him to sign into law to be enacted on january 1st of 2018. Stuart every time weve spoken to you, you expressed confidence that you will get 218 votes in the house. Looks like you have got that and you said we will get 50 votes in the senate. 51, stuart. 51. Stuart 51. You are very confident you will get it . Were confident as weve been. Yesterday was a great step forward, getting the ways and Means Committee to put their plan out. We know the senate is working equally as hard to get their plan out. The process is working through the normal way that we said it would. Everything weve been talking about for the last nine months is literally happening as we speak right now. So were very excited progress were making. The president is off to asia. When he comes back, we said well have enormous amounts of progress. We hope to have bill when he gets back from asia in the house. Stuart nancy pelosi says it is shell game, ponzi scheme, perpetrated by business. Senator schumer says its a tax burden on the middle class. Respond to that please. I dont think they have read the piece of legislation yet. I really dont. If they read it, they wouldnt say that. Look what the Washington Post said yesterday, gave democrats four pinocchios and take down the texts because theyre lying. Stuart great to interview with you. You have short sound bite responses. Im used to conversation. I dont get it to you. Thanks for being on the show. My pleasure. Stuart gary cohn, youre all right. I want to bring in brian wesbury, First Trust Advisors chief economist. Brian, your reaction to what gary cohn was saying. I know youre listening. Your reaction, sir. When you put together deregulation which already happened, a budget that is actually growing spending for the u. S. , slower than gdp and these tax cuts i think u. S. Is going to see growth rates of about 1 higher than what weve been used over the last eight or nine years. Stuart wait a minute. 2 growth over last eight years. Were headed to 3 . Stuart you have roughly 3 now. Last quarter. Growth is picking up a little bit. I think well go to three to 3 1 2 . Net effect of this tax cut and other things that the white house is doing, is going to be boost growth by 1 . One of the reasons that this is important, is that when these, there is these congressional bodies, most people dont even know they exist, joint Tax Committee, and they score these tax cuts how much they cost, we get 1 growth, well get almost 2. 7 trillion more in revenue over the next 10 years. And that is why these tax cuts wont end up costing the u. S. Economy anything, in fact they will make it a bigger place. And it will have more tax revenue 10 years from now, then we would have if we werent growing. Stuart at the moment top 20 of income earners pay 90 of all federal taxes in america. If this tax plan goes through, it may be the top 15 of income earners who pay virtually everything. Yeah. Stuart i put it to, you brian. That is not healthy. When a small number pays for everything else, not good. I totally agree. If i have a complaint where this tax bill is going, it is that our house and Senate Members are trying to fit it into these budget rules that have been put in place. By the way, all these budget rules were handcuffing ourselves with, they havent fixed the deficit. We still have permanent deficits in the United States. So these budget rules have failed. But nonetheless, theyre still in place. And theyre trying to work within them. That is why we have this pretzel logic where in fact you will make the tax code, you just described it, more progressive. So higher end income earners pay even more. And one of the problems with that is that when you do get to a recession, revenues to the government even fall faster, which explodes the deficit. You need a broader tax base. By narrowing the tax base, that is my one complaint about this bill. Every time we go and we try to do this, we try to appease the political arguments and we try to fit it into these rules and, both of those keep making our tax code more progressive, which is dangerous in the long run. Stuart i just like to see those rules gotten rid of. I totally agree. Stuart wouldnt that be good . You know, i was the chief economist of the joint Economic Committee back in 1995 and 96. That is 20 years ago. And we were trying to change the cbo and the joint Tax Committee back then and have them use more dynamic scoring. Get rid of these crazy rules that are in place. And, for 20 years it hasnt happened. I guess you could say am part of the problem. I tried. Stuart it is all your fault, wesbury. It is momentum inside of this body that has these crazy rules that lock in deficits because they really believe that tax cuts hurt the economy and spending helps it. It is crazy, but we that is one of the if we could change those rules, we would have a much better tax package than even this one. Stuart brian wesbury, thanks very much indeed. Appreciate that. Thank you, sir. Details of the gop tax plan, suggest we may see higher taxes on wealthy people. Not wealthy people. But high income earners. That is the correct word to use here. Joining us eric schoenberg, patriotic millionaire, private investor. Welcome back to the program. Good to see you, stuart. Stuart youre a glutton for punishment. I am. Stuart youre one the patriotic millionaires, you believe rich people should pay more. You must be pleased at this tax plan, high income earners will pay more especially if they live in new jersey, new york, connecticut, massachusetts, illinois and california. Well, it is not true. Stuart yes it is. It is not true. I live in new jersey, this will cut my tax bill in half. Stuart wait. No, i do want to hear about that. I brought my taxes with me. Stuart i live in new jersey and i want you to tell me how i cut my taxes in half, please. Bring your tax, sit down what it does. My tax bill will go down in half based on provisions suggested. Stuart how, explain it to me. Simple. First and foremost, when you reduce tax rate on passthrough entities, that is where wealthy people get income from. I own an scorporation. I receive a substantial portion of my income through this scorporation. They will lower the rate on that from basically 40 to 25 . Stuart got it. That is 15 tax cut. That is huge amount much money in my pocket. Stuart youre right. Secondly, it is true they will do away with elimination for state, local property taxes. However that has to be balanced against people in my situation who dont actually get that benefit because i pay alternative minimum tax. Guess what . Theyre also going to do away with the alternative minimum tax. Point out third element. Lets recall, what this bill is borrowing another trillion 1 2 dollars to give it to, in tax cuts to wealthy people. Stuart now that is separate argument. Separate argument. 10 of those benefits, 150 billion is going to the elimination of the estate tax. The estate tax only affects people with more than 5. 5 million in assets or 11 million a couple. 10 of the total, 10 of the total benefit from this tax bill is going to wealthiest, not 1 of the population, but. 1 of the population. Stuart lets not beat about the bush. How much money will save them. It will save President Trump billions of dollars in taxes. It will save gary cohn hundreds of millions of dollars in taxes. That one little piece alone. Stuart lets suppose you live in new york city and you earn five Million Dollars a year. A lot of people in new york who earn five Million Dollars a year. They, despite, they will city pay the high rate, 39. 6 . They dont get cut for that. They have income on the books. Still paying 39. 6 . They do not get reduction in taxes from state and local income taxes. They dont get that they lose that deduction, wait, they will pay a whole lot more, enormous amount more. Talk about one specific example. Somebody who lives in new york city. Donald trump. Stuart no, no. Lets see his taxes and see what impact stuart wait, if your income is on the books like regular income and work for Big Corporation in new york city, five Million Dollars a year you will pay more. I dont care whether trump pays pay more. I dont care whether gary cohn or not. There are hundreds of thousands of very, very wealthy people, new york city, new jersey, new york state, connecticut, massachusetts, illinois, and california, hightaxed states, those people with high incomes on the books, in those areas will pay more. You should be happy. This is claim youre making. And im saying prove it. I dont doubt stuart oh, i can prove it. Some individuals will end up paying tax. Bring me somebody with income of five Million Dollars a year. Lets look at their tax return i will bet you, that 95 of those people, if not more, are going to be saving on taxes. Stuart we have someone on the show yesterday. Youre not happy . Youre not happy. Im not happy at all. Stuart rich which pay more. Ridiculous. Listen to what gary cohn is saying. If this plan did in fact cut taxes on middle class, that is where he focused effort i would have no problem with it. What am i supposed to believe. I look at my own taxes. It will save me 90,000 a year. Stuart that is excellent. How am i supposed to believe this is benefit for middle class . Were out of time, leave that tax return with me. I want to see that. Im thinking very hard about how to present this information. Stuart put it right there. Right there. On this desk. Eric, v. You again soon. Thank you, sir. Thank you. Stuart one year ago a lot of you thought Hillary Clinton would be elected president. I thought she would be actually. One year later, not the case. Instead we have the live action donald trump presidency, taking taxes head on. It is off to asia as of right now, with the countrys leading ceos. Happy friday, everyone. This is Varney Company. Did yon the National Debt . Ssman get elected by talking tough will they stay true to their words . Or did they promise you one thing. Only to do another . Right now, congress is talking about tax cuts that will add trillions to our National Debt and hurt our economy. Its time to tell congress. Dont borrow more money from china. And leave more debt to our kids. Keep your word. Tax cuts shouldnt add to the National Debt. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Whentertaining us,es getting us back on track,hing . And finding us dates. Phones really have changed. So why hasnt the way we pay for them . Introducing Xfinity Mobile. You only pay for data and can easily switch between pay per gig and unlimited. No one else lets you do that. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit or go to xfinitymobile. Com. Stuart former dnc chair, Donna Brazile, that the clintons rigged the nomination process against Bernie Sanders, rigged it that hillary had to win and bernie didnt have a shot. Lawrence jones with us, the host of the blaze . Lawrence, what is with Donna Brazile . I thought she was friend friend Hillary Clinton. She instrumental Running Campaign but now she comes out with this, the nomination process was rigged. Why is she doing this . This is something my mom would say, Donna Brazile spilled all the tea. I dont know if she is capitalist now, but wants to make money off the book deal, this is stuff that has been going on for a long time in the Democratic Party. Donna unfortunately knew about it. In fact she kind of contributed to it, when she leaked the questions to Hillary Clinton from cnn. Stuart yes. And so im really confused about this narrative that she wasnt a part of that type of corruption. Stuart seems to me this action by Donna Brazile, this statement, is going to push, what you might call us the moderate wing of the Democratic Party further and further to the sidelines. It gives Bernie Sanders, the left, a lot of ammunition to say, hey, we are the party now. In other words, it contributes to the long term drift of the party to the left. What do you say, lawrence . Well, you know, im going to push back on this, stuart. I dont think it says that they are the party now. It shows you that although they may have representation, the establishment in the party is still winning. Despite all the support bernie had the establishment was able to block him in the election. What well see is what the republican went through, the establishment had so much control, you will see a candidate like donald trump within the Democratic Party. Eventually they will get that type of nominee. I think republicans should be afraid of that actually because, you know, the democrats are only going to take this for so long before they find someone like donald trump figure to bring people from the right on to their side. Stuart would you sum it up by saying, the clintons, politically are finished . Oh, they have been finished for a while. This is just the cherry on top. I believe right now that this made it very clear that the clintons have no credibility anymore. And youre going to see a lot of speaking fees go down now as a result. You will see a lot of people distance themselves from the clintons as a result of these new developments. Stuart i have to ask you this question. Are you used to President Trump yet . He has a style and a demeanor which is so different from anything weve seen before . Youre in texas. Yeah. Stuart you look at this going on. What do you think . Are we used to him yet . You know, i am used to it now. Some of it is quite comical for me. There are sometimes as i tell all the time i feel like the president steps on his message. I wish he could be a little more disciplined at times. But when you have people like twitter employees trying to ban the president from twitter, i think it only elevates the power that he has as commanderinchief. And so, when you continue to see this type of pushback, i mean, think about this, stuart. A rogue employee on twitter tried to ban the president of the United States from twitter . You dont think that will rally up his base . Stuart yeah, i got you. I think i know where youre coming from, lawrence jones, and i like it. Lawrence jones, everyone. He is a good man. See you soon in new york i hope. Thanks, stuart. Real soon. Stuart yes, sir. Congress has its marching orders, get taxes done by christmas, oh, thanksgiving would be much better. President trump right now though, heading for a 12day trip to asia. It is the live action presidency. Boy, does it roll on and on. So does our third hour coming up next. On and on. Stuart yeah. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. When youre close to the people you love, does psoriasis ever get in the way of a touching moment . If you have moderate to severe psoriasis, you can embrace the chance of completely clear skin with taltz. 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Youre done and now business is booming. Harriet, its a double stitch not a cross stitch build a better website in under an hour. Free to try. No credit card required. Gocentral from godaddy. Stuart we call it the live action presidency, the trump presidency. He doesnt slow down and he doesnt stop. Hard to believe this man is 71 years old. 24 hours ago he announced the most extensive tax changes in a generation surrounded by Republican Leaders he presented his middleclass tax cut. Just getting his divided party on board is a big win, took a lot of energy on his part. Then he introduced his nominee to run the federal reserve, didnt get much publicity but jarome becomes one of the most powerful people, he runs americas money, big deal. After this time to getting rid of diversity visas, the new york terror killer came to america on one of those visas and the president moved very quickly to tackle the issue. Now, hes on air force one heading to japan, south korea, china, vietnam and the philippines and he comes back november 149, long trip. In beijing a state banquet. In south korea close to rocket man. Hes taking the whose who among leaders, look what we have this morning, another win, modest at best. Okay, its a modest win but it is a win. This is the live action presidency at work, dont tell the media that this president is on a roll. The third hour of Varney Company is about to begin. Stuart dead flat market, down 6 points. Look, 23,509. The dow hit an alltime high, it did hit a high earlier this morning, 25,550, 23,550 is where we are. 261,000 new jobs created. Im going to say thats kind of modest, i was hoping for more. Joining us now paul conway, former Labor Department chief of staff. Paul, i think that it could have been better, im a little disappointed, how about you . Well, i tell you what, i think your decryption of it being solid moderate report is accurate, when you have taken a look at the numbers, you have to take a look at the trend, its satisfactory but much more you can do specially if you take a look at lairp force participation, that went down. More people into the labor force. Thats why the other issues like tax policy and the budget matter, but i think its a solid report, stuart, i wasnt overwhelmed by it, i was pleased with some upticks in whitecollar jobs and professional services, manufacturing, oil and gas and some of those things which are consistent where the president s policy will go. But i think theres much more that can be done and we have to get the growth rate up. No doubt about it. Stuart okay, i want to read you part of the statement from the dnc chair thats tom perez, here is what he said, without passing any significant economic legislation, donald trump is once again taking credit for the strength of the economy he inherited from president obama. Go at that one, please. Well, i tell you what, tom perez is an interesting character, hes the current head of the Democratic National committee and he knows darn well that president obama had an agenda, regulation, strangulation on an economy that was trying to get off the mat and fight. What a bunch of gull that the gentleman has to attack progress in america when people are trying to create jobs and take it back to growth under his administration. Stuart we do have 3 growth in the economy right now, how much of that growth you describe to President Trump and his proposals or hangover from president obama . Here is what i describe it to you actually, i ascribe it to the power of entrepreneur and Corporate Executive with a new agenda coming without legislation passed with the anticipation that you can create jobs and not be under the threat of the federal government, president obama, we need to get policies passed. I would give the president a lot of credit for 3 . Stuart if you get this tax plan as is or virtually as is and you pass it this year, how many jobs are we going to be creating next year per month and what kind of growth rate do we get to next year. Well, i think on the margins you will have arguments about different things. You take a look at the solid in this report, look at the tax plan, what youre trying to empower Small Business and repatriate corporate business money to come home. You ought to be averaging, 325,000 jobs per month and then in the years that come after that, you should be able to take it up more. Remember, stuart, a huge number of people in the labor force right now that are not fully employed an those people need to have solid jobs, the only way to get that actually is stimulating private sector specially Small Business but also letting corporation that is have high investment, high cost over time like pharmaceutical Companies Bring their money back on repatriation and put that to work. Stuart all right, paul, gary cohn just told us that hundreds or billions will be coming back with this tax plan. 312 billion, stuart. Stuart thats a lot of money. Paul, thank you very much, indeed. You bet. Stuart big story of the day in corporate terms, stock terms is apple. The stock has gone straight through the roof with the release of iphone 10. Our next guest helped launch steve jobs original mcintosh, shes here to compare jobs versus tim cook. Author of get to okay. Get to aja. Discover your positioning dna. You threw me there with the title. Lets go. Youre saying that steve jobs was the great dreamer and that tim cook is what just a mechanic, rudies are you dismissing tim cook . No. Theres mothers, mechanics and missionaries and tim cook is definitely a mechanic, he launched a great product but its not the next big thing. Steve jobs was a missionary and hes all about the next big thing. Stuart you cant really have a dreamer or missionary as you call him running a company like this forever. So would you extend your analysis to say Mark Zuckerberg who was the dreamer who created facebook and is now still the executive of facebook which is an extremely Power Organization . I think facebook is a Great Organization and continues to move forward as missionary company but when steve died, the missionariness left apple and tim cook who is a great steward is turning it into a mechanic. Stuart you dont seem to approve of that. [laughter] of course, i love dreamers. Amazing time in my life, there are Great Companies stuart i want to talk about that. If you go back, you were there at the launch of apple mcintosh way back when. What was steve jobs like to work with. Im told he was just awful, will you confirm that . He was very, very challenging, but he was also very pure in his agenda to change the world and so you knew when you were working with him that there was nothing else at play there, it was all about the next big thing and if he wanted you on the team and you were there to help him, you knew you were helping him change the world and it was a great experience. Stuart were you there with him when he didnt take a shower for a couple of years and lived exclusively on apple . How would that man sorry vief in the corporate world today, i dont think he would, actually . Steve always had an interesting eating habits so that kind of stuck with him all of his life. [laughter] but i think he would survive because hes all about innovation and the next big thing. He would very much survive and im very sorry to see that he has passed away but apple is doing great under tim cooks leadership, so theyre doing great products and im going to get myself an iphone 10. Stuart do you own the stock . I dont know whether you heard me or not, do you own the stock, do you own apple stock . I think the mic is gone. Pity. Ashley now im on the edge of my seat, i want to know. Theres no guaranty. Stuart i wish the mic hadnt gone out at the moment. I do not own apple stock. My kids told me to buy it when it was 57 a share about 15 years ago and i said, no, its gone as far as it can possibly go. [laughter] ashley there goes the inheritance. Stuart no estate tax, 20 million these days. Later this hour will be joined by the head of the National Association of Home Builders, now, they are not happy with this tax plan, the ceo of that Association Jerry howard is with us very shortly. First, though, we are joined by the rnc, i want to know their role in tax reform, the Republican Party itself. We will get their take on the dnc as well accused by former head of rigging the election for Hillary Clinton, the nomination that would be. More varney coming right up for you. Stuart chair of the dnc Donna Brazile slamming Hillary Clinton in a new book, she say it is dnc and the Clinton Campaigned rigged the primaries to keep Bernie Sanders out. Joining us now rnc spokesperson, your reaction to this latest clinton scandal, please. Its appalling, you know, both the dnc and rnc have neutrality aproclamations but in the dnc apparently its not the case, if youre Hillary Clinton, youre controlling the dnc as she did throughout the election, money being funneled back to her campaign in the dnc, a takedown effort of Bernie Sanders, its appalling and every Bernie Sanders supporter should be enraged right now. Stuart you seem slightly outraged. I would have thought that you would have been jubilent because its the end of the clintons . Im enraged for Bernie Sanders supporters who all throughout the primary i had stuart i know you so well. Youve been on the show so many times, you are not outraged at the defeat of a socialist, are you . Well, no, no, lets be clear. Im not outraged that Bernie Sanders the socialist was defeated but outraged that the democratic process doesnt seem to matter to democrats. I had Bernie Sanders supporters the system was rigged against them, donald trump echoed that and now we know that to be true. Im enraged on the part of democracy and the democratic process and the way things should work. Stuart okay, i want to talk about the tax plan, you represent the Party Machinery, the machinery of the Republican Party, thats who you represent, what is the machinery, the party itself doing about the tax plan, now that its before congress . Well, every morning we meet and the very first question we start with is how can we help the president s agenda, the agenda of the people, so right now we are providing cover for him, we are sending off democratic attacks that this is not for the middle class, it is for the middle class, we are constantly ensuring that reporters around the country are are aware of effects, our job is to make sure that our facts get out there and the president s agenda moves forward. Stuart real tax burden actually shifts to the middle class, i dont know, respond to that, please . Well, four pinocchio is what the washington poat said about those things, the Washington Post is not necessarily a friend of the republicans, are they, they rated those claims as false, those are lies, its not true, this helps middleclass family. A family making 59,000, for example, takeohm pay, theyll see savings about 1,082. Thats lies coming from schumer and pelosi. Stuart can you tell us right now firmly that, yes, theyll be 51 votes for this package, however, this package is put together in the senate come the voting time . 51 votes . My greatest confidence, yes, it will happen, has to happen, relationships have to get behind this, we promised this, has to happen, Obamacare Repeal and replace didnt but now we have President Trump as the tailwin behind this, we are doing the best to help in whatever way ce can. Im very confident with that. Stuart very confident. Thank you very much, we will see you again soon. Thank you, stuart. Stuart sure thing. Two stocks for you, ge as in General Electric, thats a roughly 5year low on the stock, drop below 20 and closed below 20 yesterday. No rebound above 20 so far today, 1993. Starbucks, sales fell short but they are going up 3 higher. Ashley they sold tea brand tazo. 384 million bucks for it. They paid 8 million for it. Thats good business. Stuart they paid ashley they paid over 8 million, they sold it for 384 million. Stuart thats why the stock is up. Thats called a profit. Nothing wrong with a profit. [laughter] stuart you never went broke making a profit. Ashley no. Stuart very soon we will be joined by the ceo of the National Association of Home Builders, they are right in the middle of this thing, they say the tax plan, quote, abandons middleclass taxpayers in favor of wealthy corporations, thats what they say, we are going to joined by the right person at the right time. Also we have an accountant with his take on the tax plan, remember, President Trump said this would not be for them, what are they saying now . First, check this out, the twitlight zone coming back to tv screens, details on that next. Bet you cant wait. Maybe too affordable and fast. What if. People arent buying these books online, but they are buying them to protect their secrets . . hi bill. If that is your real name. Its william actually. Hmph affordable, fast fedex ground. One lock this door with the key of imagination, beyond it is another dimension, dimension of sound. Dimension of sight, a dimension of mind. Youre moving into a land of both shadow and substance of things and ideas, you just crossed over into the twitlight zone. Stuart yes, i remember it well, i watched that black and white 40 years ago, Something Like that. Cbs is bringing it back, they will reboot the show. Started in 1959 hosted by rod sterling, new version debuts next year on cbss streaming service known as all access. I bet you cant wait, can you . Ashley im on the edge of my seat. Stuart i used to watch it, sure did. If you ever wanted to spend the night in a house made entirely of legos ashley not at all. Stuart if you and your family had infinite supply of legos, what would you build . The person with bed answer would sleep with lego bed, cat, you have to be able to travel and the lego house is in denmark. [laughter] stuart ford, this is priceless. Fords developing a new hat that wakes up drivers that fall asleep. Safe cap, senses the drivers Head Movement associated with sleepiness and wakes them up using light and vibration, you have to be prepared to wear the fashion extravaganza. Ashley for the studio crew. Stuart are you prepared to wear that . Ashley thats not bad. Stuart hershey gold, new chocolate flavor. Whats gold chocolate flavor . No clue. Caramel, peanuts and pretzel. Released december 1st, association of Home Builders, they do not like the new tax plan, they hate it. They are going to tell us why later this hour. Look at the markets turnaround, 13 points higher for the dow industrials, 23,530, how about that . Back in a second. [lance] monica, it is absolute chaos out here gale force winds, accumulations up to 8 inches. Dont know if you can hear me, but [monica] whats he doing . [lance] can we get a shot of this cold front, right here. Winter has arrived. Whooo hahaha [vo] progress is an unstoppable force. Brace yourself for the season of audi sales event. Audi will cover your first months lease payment on select models during the season of audi sales event. Approaching medicare eligibility . You may think you can put off checking out your Medicare Options until youre sixtyfive, but now is a good time to get the ball rolling. Keep in mind, medicare only covers about eighty percent of part b medical costs. The rest is up to you. 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These are the only Medicare Supplement insurance plans endorsed by aarp, an Organization Serving the needs of people 50 and over for generations. Plus, nine out of ten plan members surveyed say they would recommend their plan to a friend. Remember, medicare doesnt cover everything. The rest is up to you. Call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. Go long™. Stuart i know that that is paul. Whats the name of the song . I dont know. Lets move on, please. Come on, the dow is up 8 points, even split within winners and losers on the other side of the aisle there. By the way, the dow hit alltime high earlier on this morning around 23,550. Thats the new high. Ashley lasted about 3 seconds. Stuart we have gone back on again. Come on in lenor hopkins with whom i have a bone to pick. Every time you pour cold water in technical terms, you have been cautious about big tech. If we had taken your advice our viewers would have missed out on a wopping great big rally, what do you have to say to yourself . Thats a big word, tech, as you might recall one of the companies that we talked about was universal display. Stuart you were cautious on facebook, microsoft, google and amazon. Yeah, these guys are in some very heavy, heavy pricing. One of the things we did like with apple, we got more bullish because we liked the pullback after last Product Announcement. The Product Announcement was decidedly underwhelming. Stuart lenor, would you tell investors and i know you run a lot of good money, would you tell investors buy apple at 172 . We just actually put up we got bullish on it again back on the 30th of october. Stuart would you tell investors to buy apple at 172 . Yes. Stuart thank you very much. What about amazon, microsoft, alphabet, facebook, the other four of the big five . Wait, wait, would you tell our viewers who may hold some of these stocks, some of these four stocks, would you tell them to sell . No, i wouldnt sell, but what i would do is you have to have a plan on how to get out. Right now the market is in really, really heavy territory. For the most part we are at levels that weve not seen. The only other time was back in 2000. You need to have a plan to get out and you need to know that when you want to get out a lot of people are going to get out at the same time, you need to have a plan in safe to do quickly. Stuart the plan in place is surely a stop loss order. You have to be careful with those stop losses because it can bounce right on through that and you may not want to. You need to have a plan thats a little more than stop losses. Stuart whats the plan . Thats what we do with our clients. [laughter] stuart youre not going to tell me . Well, if you want to pay me. Stuart how about the overall bigtime market, a lot of play tinned exes, they play the dow index, do you see it going up . Right now we are not seeing signs that its topping out any time soon. Its been incredible movement. Momentum is still there, one of the things we will say, the market is getting expensive relatively to other places an investors would be wise to look around the world. In japan, valuations are much more attractive and a lot of tailwins behind the market but you have to protect yourself from depreciating yen. Stocks over in europe that look more attractive. Stuart real fast, i know that you spent a lot of time with europe with wealthy europeans as your clients and i know that you live in san diego, california, so i have to ask you, is highincome person yourself, how do you feel about this tax plan which is going to make you pay for more on your income in taxes . Yeah, what really bothers me about the tax plan and discussion going on about it is how to get more revenue from the government and if we look at how much the federal government spends as a percent of gdp its up where it does not need to be. We were fine back when it was a much smaller amount. All the talks is about more and more spending, not about cutting back that spending and let the economy do what its going to do. Stuart that was a nice deflection. Very good deflection. You did not answer the question about how do you feel about paying more in taxes because you live in california . Nobody likes to pay more in taxes and one thing that really bothers me about it is to see what they are doing with the interest on student loans. Stuart no, thats a minor detail. Get hold of sacramento, state capital of california and tell them you are sick and tired of paying e numberrous amount of you mean the peoples republic of california. Stuart you could have gotten stre five minutes if you said that in the beginning. Lenor hawkins, youre all right. She likes apple. Ashley she does. Stuart joining us now republican from illinois, member of the house and ways committee. Im tempted to go after the state of illinois because a lot of your constituents, sir, are going to end up paying a whole lot more in taxes because illinois is a hightaxed state and how will you make them not true. We are protecting the property Tax Deductions. My constituents are scandalized by the property tax much more so than other types of taxes so we have maintained the property Tax Deduction and weve capped it at 10,000 but any tax plan has to be evaluated and its totality, the notion of looking at one element of the tax code and saying thats going to have impact without looking at the rates in child tax credits and passthroughs, my constituents are going to be paying less in taxes. Stuart okay, okay. Not too sure but we will see. Im sure. [laughter] stuart gary cohn on this program about an hour ago says the plan is not going to be retroactive to january the first, i think you will go along with that, theres no way it could be . Theres not a plan the current thinking is while theres a lot of people like it to do that, its very difficult to accomplish. Theres still voices that are weighing in on it and i think theres a lot under consideration, but its not in the current plan. Stuart now, thats not going to happen. How about we are hearing whispers in the senate that maybe top tax rate for corporations would go to 22 not 20 , gary cohn shot that one down as well. You also . Yeah, its a nonstarter. Part of the bright line that is have come out from the negotiations that was the frame work was 20 corporate rate, no higher, 25 business passthrough rate and no higher and middleincome tax relief. Thats the theme that is driving this altogether. So i dont see the corporate rate going above 20. Stuart gary cohn didnt see many changes from the senate because you have narrow window, 1 and a half trillion dollars worth of cuts to deal with, thats it, you cant go beyond that, you have to go to 1 and a half trillion. The plan that we saw yesterday, would you agree with this, is pretty much going to be very, very similar to the plan that eventually emerges from the senate . Look, its difficult to predict the senate, let me say this, the plan that was rolled out yesterday was well received by House Republicans by in large, the feedback there were comments, suggestions on how to improve it but on balance the feedback was very good. We propose to go to markup next week, fully considered by the ways and Means Committee, all during the week and amendments will be considered and it will be hopefully passed out and then brought up for consideration on the house floor. The Senate Continues to remain a mountain that is smoky and misty and mysterious to me so i am out of the predicting what happens in the United States senate but we are trying to do is give them a very good plan that they can consider. Stuart we will leave it at that, smoky and misty and whatever else. Mysterious. Thanks, stuart. Stuart yes, sir, i was saying yesterday as we got the details see that on the lefthand side of the screen. The president looking at the postcard which some in congress think youre going to do your taxes on. No big long form with page after page, no, a postcard. That would put out of business, would it not some of the professional tax preparers, yesterday i mentioned h r block. The stock went down 2 . This morning we have chief officer of jackson he wit, they do a lot of tax preparing. Your business is going to get screwed . Perhaps. 200 provisions of simplification, sure sounds simple. Stuart no, what im talking about is the likes of myself and our viewers who have to make out a tax return, if i have a doubling of the standard deduction, i dont itemize, going for the very simple form, youre out of business . Well that would discount earned income credit, education credit, Family Flexibility credit and the list goes on and on, i dont think those will go to the postcard. Higherincome taxpayers who get to itemize, they will probably still need to file and i wont go to small selfemployed folks. Postcard is a lot like the 1040ez today which has been popular. We file several thousand stuart people come to you and make 1040ez form. They pay us to find credits, deductions, biggest tax refund they can and in a form like that you might overlook something. Stuart do you give them loans on the basis of tax refund . Its gone away for many years, we do advance refund to them at no fee, no interest, no charge on our card but there are no longer loans generally speaking. Stuart you know what your problem is . I have many problems. Stuart you know too much. You know your stuff. 30 years in the business, 104 years in taxes. Stuart i was prepare today come with you to say your business is screwed, up the creek man. Just like 86 which simplified and the tax revenues for all companies jumped 70 , we are hoping for a similar simplification. Stuart seriously, you dont see much of a downturn . Until our society becomes simple, the price of fairness is complexity. Theres no simple way to have a society as diverse as ours and say, we are all going to be the same because they are not the same and in the new bill, you see it treated that way. The congressman was exactly right. You cant look at a cherrypick item and say you are going to own more, highincome, lowincome, moderateincome, seniors, theyve all got in it good but something to watch out. Until you talk to pro and find out what it means to you, you cant make summary statement. Your high incomeearners, they lose interest, property tax, maybe, but theyve been paying alternative minimum for years, thats going away. So maybe it will, maybe it wont. Moderate and middleincome people, they are the ones to make out in this business. Stuart you have an accent, where are you from . Alabama. I now live in south florida and live up here in new york. Stuart no income tax in florida. State tax but high Property Values and high mortgages so im looking as closely stuart smart guy. Thank you. Breaking news here we go. Bowe bergdahl will avoid prison time, a judge ordered dishonorable discharge in his desertion case. That just came to us. He does not go to prison. Next, we are going to be by jerry howard, they dont like the tax plan, they will tell us why. First, Stranger Things getting millions of viewers in just the first few days of Second Season. We will bring you that story in 90 seconds one more, sorry. Star gazes. [laughter] stuart the moon will be bright, beavers moon, set the traps before the swamps froze. Supply of warm winter furs. You really do get everything in Varney Company. Im lori with fox business brief. Market is a quiet. Lets talk about hit television shows, Stranger Things 2 to be exact, original content series from netflix, netflix shares are up about a buck here but year to date, up 60 , a huge hit, ratings figure, 15. 8 Million People went ahead checked out the new season in the first three days since its been out. Now netflix, however, is saying, their mass might be from the upside down, two upside down, a direct reference to the 80s theme sifi show. Big bang theory, number one. With that, we will send it back to you for more Varney Company o give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. Stuart President Trump now on his way to asia. Hell be in china late next week and he will be joined there by more than two dozen deal makers, among them the ceos of Goldman Sachs, dow chemical and qualcomm. All right, theyre all there going at least. Now, this, i want to look at the share price of the chip maker broadcommu President Trump announced the company will legally relocate headquarters from the u. S. From singapore, apparently the market likes it, up 2 for the stock, 5 higher. Now this u one of the groups in opposition to the tax plan, the Home Builders. Joining us now jerry howard, ceo of the National Association of Home Builders. You are very upset with this tax plan, you put out a statement really going against it, whats the big deal, why are you upset . Well, you to remember we were one of the first groups to come out in favor of the framework for three reasons, we liked what it was going to do for personal income taxes and the way it was going to treat Small Businesses and we liked the commitment to housing. We think that the plan that was released violates all three. Here is why. Number one, while many personal taxpayers may be paying less in taxes, they have to look at their net worth, the houses that they own are going to decline in value, the amount that they are going to pay in rent is going to go up. Its a bait and switch for individual taxpayers. Small businesses, we were in favor of them being treated competitively with large corporate competitors, turns out Small Businesses get a little pat on the head, Corporate Tax breaks far outstrip any incentives for Small Businesses, another bait and switch, what really bothers us more the plan aggregates federal commitment to housing. First lowincome housing, it eliminates taxexempt financing, most successful programs to keep rents low. It effectively kill it is Housing Program which they brag about keeping. On the Home Ownership side, placing 50 milliondollar cap on mortgage Interest Deduction, will in effect mean that those houses are there or above will decline in value. History shows us, stuart, that when one segment of the Housing Market declines in value, the next segment declines, the next segment declines and pretty soon american who is were hoping that their home values, that the equity they build up will fund retirements are in trouble. This is a bad, bad bill. Stuart you make a good point. Thats a pretty good comprehensive case as to why you oppose this, basically youre adding it altogether. Its bad for housing. Let me pick you up on this, theres going to be a now a limit on the mortgage Interest Deduction, you can deduct the interest only up to 50 million worth of mortgages, however, jerry, old mortgages are grandfathered in, so if you got a mortgage now and its up to value, a Million Dollars, you still deduct all of the interests, right . So home sales then, they are about 7 million homes right now on the market that are above that cap, those homeowners, many of whom were counting on the equity for retirement, cant sell because their buyers are going to be capped in mortgage deductions. Stuart you think itll be that bad . I mean, the response to capping of the Mortgage Interest Rate deduction, half a Million Dollars, you think the profound effect will be so bad that it will actually lower the price, lower the value of expensive homes . Not only expensive homes, once one segment of the market starts to decline, history shows us they all do. We think its so bad, stuart, we are worried about another housing recession. Stuart what are you going to do about it . Well u we hope that there are enough responsible members in the house that they wont turn the peoples house into Corporate Headquarters and we are banking on that to try and work with them to make changes to this bill before it gets to the president s desk. Stuart what kind of shot do you think you have at doing that because its a very narrow tight window that they are dealing with here to get it done this year or to get it done with say, 51 votes in the senate, you have to conform to that 1 and a half trillion dollars maximum Tax Deduction tax break, over the next ten years, there isnt much room, is there, for loosening up the deal on housing . There is a room as long as there are members who are responsible and i know that youve heard as we have several members of the republican conference are saying, weve got to make changes to this bill, we are going to work with them. Just as importantly the senate is in play, the senate has always been the body which slows down bad legislation, we are going to work with the senate so they can pass good legislation. Stuart all right, jerry howard, thank you very much for being was. I think you layed out a pretty comprehensive case, that was very interesting. How about this from sears stuart organ music. Announcing its closing, going to close 63 additional kmart and sears locations in january of this next year. This is on top of the more than 350 stores it has already closed this year. Things are getting worse for sears, down another 1 , 5 bucks a share. President trumps twitter account offline for 11 minutes because of one rogue employee. The full story after this zar one of our investors was in his late 50s right in the heart of the financial crisis, and saw his portfolio drop by double digits. It really scared him out of the markets. His advisor ran the numbers and showed that he wouldnt be able to retire until he was 68. The client realized, i need to get back into the markets i need to get back on track with my plan. The Financial Advisor was able to work with this client. Hes now on track to retire when hes 65. Having someone coach you through it is really the value of a Financial Advisor. Or a little internet machine . It makes you wonder shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. So all you pay for is data. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit, or go to xfinitymobile. Com. Stuart yes, earlier we told you about cbs rebootingbooting the twitlight zone and i misspoke. Yes, i did. I totally admit it. I said that Robert Sterling began the original series, serling no t, some people very quick to point out mistake in social media. Ashley dont get away with anything, stuart. [laughter] stuart President Trumps twitter account down last night and he tweeted about it this morning. Here he said this, my twitter account was taken down for 11 minutes by a rogue employee. I guess the word must finally be getting out and having impact. Ashley happened just before 7 00 oclock in the east coast when you went to his page, if you we wanted to look up donald trump during 11minute period said this page is not available, doesnt exist, for 41 million followers is a bit alarming. We dont know whether this was an employee who has gotten fired or whether there was the word disgruntle, an employee that was leaving that day inadvertently deleted the account. What kind of protections do they have at twitter to protect the president of the United States or anyone else who is a highfunctioning, somebody that can have political influence around the world . What kind of safeguards are in place . Stuart thats a good question. Thats a good point, young man. Very good point. 11minute lack of twitter, hes made up for it today. All over the place. Ashley slowed him down a bit. Stuart you would be surprise to know that this show is not yet over. More varney after this. [laughter]. Stuart i have a minute left. I want to talk about apple. Would you look at that. That is a high for the stock. 172 a share. Pat that press, let me fiddle around with this, a the that price, apple is worth 892 billion. Earlier, apple hit 174. Ashley close it. Stuart up to 900 billion. 174. 26 was the high. That is the point where it hit 900 billion. Ashley how much cash do they have . Stuart shall i tell you . Ashley please. Stuart 268. 9 billion. That is in cash, held by apple. Ashley how many countries in europe could you buy with that . Stuart more than most companies and many governments in this world. What youre looking at apple store. Is that the line waiting to get in . They got in and bought out the store. In three seconds neil cavuto will take it over. Stuart thank you very much. We have a lot of jaws dropping in the military community, that Bowe Bergdahl who pled guilty to desertion will not get prison but more appropriately, dis dishonorable discharge a military judge finding that he indeed deserted. Bergdahl never denied that. They asserted that he suffered from mental anguish when he abandoned his post. Some injured and killed in the rescue efforts for him. That is not going