Transcripts For FBC Varney Company 20180205

Rates and when rates go up, stock investors get nervous. Some will take their money off the table. Cash in profits and head for safety. Also, this has been such an explosive rally since the election of donald trump that some kind of pause is inevitable. It goes without saying that no market goes straight up forever. Call it what you like. Pause, correction, pull back, as of right now the sellers appear to be running this show. How far down do we go . Dont know. Buy this dip . How strong is your stomach. And rush for the door . Thats your call, and its a tough call. Previous dips, remember, have bounced right back. Throughout the program, well be following the ups and downs of what will be a nailbiting day. Stay there, please. Varney company is about to begin. And for the Philadelphia Eagles, the long drought is over. Last championship 1950, presuper bowl era. The dreamers finally come through. Neil there you had it. Final four of a thrilling and bowl. Beat the patriots 4133. Nick foals throwing the goahead touchdown to zack with just over two minutes remaining in the game. Then the big defensive play. Tom brady sacked. He fumbles. Eagles recovery. That set up a field goal to put them up eight. Bradys final desperation toss fell incomplete and the celebration was underway. What a celebration it was. They went really wild in philadelphia. Ashley yeah, i was just looking at the latest numbers in city hall. They said three arrested. Tens of thousands of people poured into the streets last night. Theyre blaming a few bad actors. A car was overturned. About six traffic lights pulled down in the city center. A macys got attack. A verizon store. But, again, only three arrests. You know they actually greased the light poles before the game so that they could get ahead. But some people managed to beat on the poles. Neil . Stuart is that a constitutional a wrong constitutional move to deny the freedom of speech to people to climb the lamp pole . I dont think thats right stuart did you stay up until the end . Ashley i did. Liz i went to bed. Stuart did you stay up to the end . I did but i was motivated. Stuart all right. Well get to the judge shortly. Did you stay up all the way to the end . I was motivated that the same thing the judge was motivated for. Stuart get to the market, please. This is an important day. We are going to be down today. This monday morning. Were opening down about 170, 180 on the dow. Down 11 on the s p. Maybe 31, 30 on the nasdaq. Charles payne is with us. All right. Charles, obvious question. This is a dip. I will be an aggressive buyer at some point this week stuart why . Charles because the overall thing that moves the market are the sellings and earnings. And the thing that was overshadowed last week particularly on friday is were perhaps one of the best he didnt seasons ive seen in my life. 50 of the s p 500 companies have reported. 80 beat on sales. 75 beat on earnings. And were seeing much better guidance. Go to 5 gdp growth. They are in remarkable economic recovery and they havent seen in a long time. And i think the fed will take care not to snuff it out. Yeah, they want to be ahead of the curve. But they understand whats at stake here because a lot of americans have given up on hope of true growth ever happening again. Were in the midst of it. I think. Stuart you have to say after a 40 runup of the dow. No market goes straight up. Ashley like the department has these things called prescribed burns. They blow out the cobwebs and then the forest comes back stronger. I think thats what were seeing here. Let the people take the profits, move on put. But the economy points that the earnings, the expansion is going on. I think it will come back strong. So the question is when do you buy back in . And people like charles said maybe this week. Has it reached the bottom . Maybe well see. Stuart what about today . Charles today could be a good time. As a matter of fact, i have some key numbers. I put them on my website but that most important thing is were almost at the 5 pull back. It has been 410 trading days since a 5 pull back. If its not today, its very, very soon. The thing of investors should make a list of things i want to own. Again, 50 of companies have reported. So ive seen Companies Report numbers and their actions on the stock. Stocks have surged and guidance pulling back for the rest of the market for me are easy pickings. Stuart ive done a prelist of premarket stock prices. Apple has dropped below 160. So that means semidown 10 or 11 . Liz in correction territory. Stuart when it drops below a certain level, you can see maybe thats interesting. Microsoft is close to dropping below 90 a share. Its almost down there. Amazon is close to dropping below 1400. I think weve got it on the screen at 1406 and facebook is below is 190. When it drops below those key levels, is it a signal for you. Ashley yeah, but you have to check the fundamental. Google and alphabet is not the one i would not buy right now. But i would say amazon obviously the easiest one to buy there. In fact, they got another target upgrade this morning. My target is 1800. Amazon, facebook, in order what i would buy. Stuart well discuss this later. Now im going to turn to politics. This has no impact on the market. I dont think it does. The memo has been released. It alleges abuse by the fbi and the Justice Department when requesting that surveillance warrant on the Trump Campaign. One president ial campaign spied on another president ial campaign. Got it . Democrats and the media responding furiously. They say its an attempt to undermine the fbi and the mueller investigation. So now what . Axeios, thats a news website says five more memos are coming. Devon nunez suggests another memo about the state department. Judge napolitano is here. Carry it forward. Where to from here . Well, the democratic memo, which has already been prepared and which reports to examine the same intelligence as the republican memo but comes dramatically different conclusions will be voted on by the committee today. The speaker of the house, republican paul ryan is in favor of it. Four republican members of the Committee Said theyre in favor of it. They need one more. So the need the majority of the committee. Then it has to go to the white house. If the president does nothing, it comes in five days. If the president modifies it, whites things out, redacts things, says forget about it, he is the ultimate decider on declassifying, so he can stop it from coming out. I think there would be a political firestorm there. Stuart so its memo week. Exactly right. Congressman nunez denies that theres any more memos coming out about this. There are memos coming out about other things that the state department did in the obama era that the Justice Department did in the obama era. And there may be a memo coming out from this is almost inconceivable. The fbi, which will defy the committee that is its regulator and defy the president. But from the committee, theres only one more memo coming out. What have we learned . Weve learned that the cavalier attitude about spying on american citizens, which youve heard me complain about for years now, in fact, is prevalent. Not only in the fbi and in the Justice Department, but on the part of the judges who authorize these things. Stuart, it is inconceivable that one court grants 99. 9 of all warrants requested of it. This is the court. Because it lowers the constitutional standard and makes it very easy for the judges to grant with these warrants. Stuart question about the memo that may or may not come out about the state department. Nothing to do with the surveillance warrant but about the state department. The secretary of state during that time was Hillary Clinton. Yes. So this is very tantalizing that congress nunez said this. He just said it ten minutes ago. The state department and Hillary Clinton. Not john kerry. Stuart but totally separate from the surveillance warrant and russia, russia, russia, this is separate. Yes. I do think that congressman gowdy is correct. All the ruckus that was caused on friday, this does not affect bob muellers investigation one bit. As much as i like the president and want him to succeed, i do think he is a little incorrect or putting a trumpian spin on it when he says im vindicated. I dont think this slows down mueller or impedes him at all stuart im waiting for that state department memo. When it comes, youll have it. Stuart thank you, judge. Quick check of futures again. This is going to be a down day. The dows been really all over the place. At one point this morning, it was down about 300 points. Now its down 180. We will be lower at the opening bell. Look at the tenyear treasury yield currently at 2. 84 . Now, the big tech names. Get back to them because theres serious losses there. Theyre all way down from their highs and this morning, facebook, amazon, microsoft, alphabet, and apple will all open lower. The chip maker broadcom is making its best and final offer to buy its rival qualcomm for 82 per share. I believe this adds up to about 100 billiondollar deal if im not mistaken. Liz 121 billion. Yeah, isnt that . Stuart thats money. Back to sports for a second. Joe name on it says Justin Timberlake is right to not let his son play football. What we know about brain injuries, the visc too great. Legend reacts to that one. And despite a very political season of anthem protest, every Single Player stood for the anthem during the super bowl. Heres the question. Has football redeemed itself of the kneeling controversy . Were dealing with that after this break 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. Before investing, consider the Funds Investment objectives, risks, charges, and expenses. Read the prospectus carefully at alpsfunds. Com amlp neil no sign of any players kneeling during the super bowl. Super bowl 52. What youre looking at is members of the eagles. This after the event. Members of the eagles, they praised god after beating the patriots. Roll that tape. I can only give the praise to my lord in savior jesus christ. Unbelievable. All glory to god, my teammates, this city. Were very blessed. Stuart very overt display of religion bringing super bowl 15 champion and liberalism author burgess owens. Has football by last nights performance kind of redeemed itself . Good morning, stuart. Well, first of all, i what a great experience it was. Not only to watch a great game but watch the true pro american and, unfortunately, has nothing to do with leadership. It has the focus to do with two teams and all the things about the players. Theres players on the teams that are very pro american flag. And to get to the big game, you have to put all of that aside. And then do nfl leadership. And the leadership, the commissioner, they would have had those great war heroes on the field and the kneeling team kneeling at the same time. So it was great to see it, and i hope a good lesson comes out of this. Stuart but do you think were going to pull together next season . I mean, this is going to be behind us. Improving its ratings and the game and all the rest of it . Ill say this. Weve been here before. Abc at the end of 9 11 decided were going to look at a neutralizing their brand by not having flag. I think the nfl is doing the same thing. Theyre looking at the global market. So when it comes to nfl leadership, i dont trust them, to be honest with you. I think the players have a chance to get their act together. Focus on whats right and come back and win the game. Of course, America Needs to help these young people understand this country is the greatest in the history of mankind and help them understand this process. Stuart okay. On this subject, to listen espns hills latest attack. Low hanging fruit is what i like to call racial pornography because its a way to stoke his base. I think its kind of weirdly brilliant because he has been able to hijack the entire conversation and to make this about patriotism. Stuart i caught that, burgess. Racial pornography. What do you say . This is what happens with socialists and marxists. They dont have the intellectual honesty to talk about policies. They take cheap shots. They call white conservatives races, and they call black conservatives uncle toms. Where was this lady when 75 black boys in the state of california not passing reading and writing tests. Where was she when 80 of black teen boys could not get jobs the last ten years . What about the black babies aborted by white abortionists . Is what we right now is pro jobs, pro education, pro flag, and it scares the left to death. So im very excited about whats happening in our country and america ought to feel good about it. These races, these black races and elitists like this young lady will be shown she doesnt know what shes talking about. Were going to move forward because thats what we do as a country. We move Forward Together and to get all of this division stuff. Stuart burgess owen be good to see you again. Im glad you enjoyed the game last night. I stayed up for the first ten minutes. Judge, youre all right. Well see you again soon. Lets get to your money. Were down this morning. We are going to open this market lower in about 12 minutes time. The dow should be down close to 200 points. And an amtrak train involved in a deadly collision over the weekend. The third fatal amtrak accident since december. 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Were going to be challenging 25,000. Okay . Down across the board. Amtrak. It is the second deadly crash in less than a week. Liz, what have you got to say about this . Liz well, this is about the government culture of safety and the private sector culture of safety. And the federal Train Administration is now run by richard anderson. He ran delta, and he ran northwest. Hes saying it has to be about the private sector approach to safety. Two average derailments a month on a amtrak train. Thats in recent years. So how do you if you want to do infrastructure, its safety first and how does the private sector approach safety . Ashley so what happens saturday in South Carolina the signal had the amtrak train go straight down the track occupied by another train. How does that happen . Well, the head of amtrak says it was completely csxs fault but also the federal government by not putting this public system in place which is supposed to be across the country by the end of this year. Liz and now csx, the private freight operator saying, no, we did everything correctly. We did everything right. And so, you know, same culture of safety in animals new head of the stuart its worth pointing out that Amtrak Service is run by the government. Freight lines are run by private enterprise and theres a huge difference in performance. Liz yes, there is. Stuart quick look at the market. Were going to open in a couple of minutes, and we will be down over 200 points. 1600 on the s p and down on the nasdaq. How far down . Well find out in a couple of minutes. Shes nationally recognized for her compassion and care. He spent decades fighting to give families a second chance. But to help others, they first had to protect themselves. I have afib. Even for a nurse, its complicated. And it puts me at higher risk of stroke. That would be devastating. I had to learn all i could to help protect myself. Once i got the facts, my doctor and i chose xarelto®. Xarelto®. To help keep me protected. Oncedaily xarelto®, a latestgeneration blood thinner. Significantly lowers the risk of stroke in people with afib not caused by a heart valve problem. It has similar effectiveness to warfarin. Xarelto® works differently. Warfarin interferes with at least 6 bloodclotting factors. Xarelto® is selective, targeting just one critical factor interacting with less of your bodys natural bloodclotting function. For afib patients wellmanaged on warfarin, there is limited information on how xarelto® compares in reducing the risk of stroke. Stuart right. This is going to be a very important monday morning because last week in the previous friday in total the dow dropped over a thousand points. That was a 4 drop. That was the biggest drop that weve seen since the election of donald trump back in november of 2016. The obvious question is, its monday morning, are we going to continue that heavyduty selling . Ashley yes. Stuart if you look at the futures market as ashley just said, the answer is question. Rightbottomhand corner. After ten consecutive months of jobs. [laughter] ashley thank you very much. Charles its been my experience that the futures were the lowest point of the morning. We may test that. Whatever the worst we were down 300, we test that. If we hold it and come back, thats when you start to sit up. I want to put one thing in perspective. 3 yield to push the market down, the last time we corrected yield 4 and a half percent, the before time 6 percent and 9 and 12 . Stuart 15 seconds to go and we will open the market. You can see them applauding and we will hear it any second now. There you go. When the bell starts ringing, the trading session will begin. We will find out whether or not we will get a continuation of very heavy selling we saw last week. Here we go. First reading in the dow we are down 250 points right from the getgo, 260, 263, 277 we are down. 25,248, down 268. Thats where we are at this moment in time. Thats over 1 . That means the total loss since a week ago friday is now over 5 and we are pretty close to a 300point drop for the dow industrials. We havent seen since brexit. That is true. We are down less than 1 on the s p 500. Ashley i dont want to get technical. The 50day moving average, 2017 on s p, that will be a test point there. We may see money come back in. Stuart ashley webster. [laughter] stuart now check nasdaq. Thats down about the same percentage amount as the dow industrials. Quickly, back to the dow, we are now down 322 points on Dow Jones Industrial average this morning. That follows better than 1,000 point loss. Down 324. Why is this happening . Jitters about Interest Rates and right now weve got the yield on the 10year treasury at 2. 84 . As charles said its not a lofty level but the spike recently has upset people. Looking at the s p 500 in midterm years pointing out entry year, middle of the year, itll drop nearly 17 but then bounce back up 32 in 12 months. Midterm election year. Stuart i have to check the big techs, because thats where a lot of money went in the past few years, i should say and this is its coming out of them again this morning. Facebook at 187, amazon right at, just dropped below 1,400 a share. Microsoft holding right at 90. Alphabet is 1,095, dropped below 1100 and apple has dropped below 160. We have now tempered the loss. Down 278 points in dow industrials. Go, charles. Charles here is the road map, worst level, we hit that already. Thats now our point to start watching this market. You think about the best levels that we had, if we get above dow minus 160, 170, you may see buy programs kick in and we might have a good day. Stuart very interesting. We are down 250, having been down 300 350 at one stage, literally a minute ago, ash. Ashley bottom line i dont think its unexpected and i think its healthy, the combination of those two. Stuart obvious question, charles, same one that i asked you at the top of the hour, is it type to buy the dip and previously you said yes, im sure you will say it again. Im looking at parameters, what we are looking at, the reason technicals are great in this environment, you throw fundamentals out the window, we see where the down level was down for the day, we are going up, thats when you start to nibble. We are now down 5 from the high, i believe, the high of last month. We are down 5 . Charles 410 trading days since we had done that before. Keep in mind, last time we did that we had the big rebound for brexit. Thats very interesting because a pullback is officially defined as 5 drop, i think im right in technical terms. We have a pullback, we have a pullback in place and actually we are coming back a little bit. Now we are down 230 and charles, you are right, we were down 350 literally two minutes ago, so somebody is buying and bringing us back a bit. Maria bartiromo scrambling on to the set. Maria thanks so much. Stuart the big question for investors right now is buy the dip yes or no . Maria yeah, people really like to see a washout when you have something going on like this, they want to feel like the heavy selling is done before, shark the gone before i get back in the water. I almost hope that the market does not close off of lows tonight. I would like to see the market wash out to feel like people have gotten enough of a break to get back in and buy the dip. I do think this is ultimately going to be buy the dip, dont get me wrong. If it closes near flat, people are going to be like, its not done yet. Stuart maria, its my retirement being washed out. Be careful what you say. [laughter] maria good point. Stuart 213, 140 points better off than we were 3, 4 minutes ago. Lets talk about apple. Theres a stock thats officially in correction territory, its down more than 10 . The chief Financial Officer says apple is gearing up to spend all of its cash on hand, now this is unspecified period, okay. That surely means its good for the stock, isnt it . Absolutely. Stuart buy back some stock. Charles apple has bought a hundred 140 billion of stock they bought back over the last years. Liz whats the strategy, shouldnt they buy a company . Charles there are two ways management pays you back, dividend or buying back stock, when you buy back stock makes the pool smaller and ownership greater. Stuart i would have thought when all the money comes back to america and big techs bringing it all back, some of it has to go to stocks. Maria i think so. You are seeing foreign money come to the u. S. There are also looking at market that has been pricing that. Liz Global Equity has taken hits. Maria across the board. People are saying is this the right place right now as Interest Rates go higher. Stuart dow is down 185. Show me amazon, please. Its still fairly close to alltime record highs. Its pulled back and bounced off the 1,400dollar level. The expansion of amazon into every aspect of life. Maria they do it better, stu, youre right actually right about this. It is expensive. Apple is a lot cheaper and facebook is a lot cheaper. Stuart very expensive stock at these prices. Facebook, do you know he turns 14 years of age today, it used to be called the facebook, now the is gone and its facebook, okay, employs 23,000 people, touches nearly every aspect of our modern life and charles you will buy it . I will buy it, amazon and i will tell you, the only thing that stops them really honestly, i dont know that its competition, i think government will step in and hurt growth. Its starting with europeans and at our government at some point. Right now they have amazing lead to competitors. Maria i agree. Stuart top European Bank chiefs want big tech bound by financial rules. Reading sideways here, thats the europeans, they really want to get a handle on the apples and microsofts and googles and facebooks. Liz they feel like its infringing on banking sector. The tech sectors, apple pay or google pay, its a bank credit card. It is back i dont know what the banks in new york are upset about. Stuart because our Tech Companies control all this data. Make a tech company that can control data. Maria i think its going to go beyond europe. I think the u. S. Is also going to get tough on tech because the companies are not what they were five years ago, they have incredible amount of power and regulators across the pond are looking at it. [laughter] it makes europeans upset. Stuart we were talking about apple, maybe some money back into the stock and the thing is at 160. The dow has come back, we are down 198. 25,300. Check the price of oil. I dont think its really relevant to todays action unless you have energy stock, 65 a barrel. Charles one more thing, most of the institutions are going to buy before 10 00 oclock. They want to get a feel, how much buying comes in. Sort of like first round of boxing match. You are feeling each other out and youre seeing with the bottom is and the top is, as the day goes on we will know a lot more after 10 00 oclock. Stuart ultimate fighting. They go for the throat as soon as the ring the bell. Stuart down 211. Ladies and gentlemen, the chip maker makes best and final offer to buy qualcomm, i think its a 100 billiondollar deal. Maria 100 billiondollar deal. This is it and now they are raising the bid. Stuart take it or leave it. Look at Olive Gardens parent, its selling italianstyled nachos. [laughter] maria what . Stuart quiet on the set. Youre choking. Maria mama bartiromo wouldnt like that. Stuart made from fried lus averaga noodles and meat sauce and alfredo sauce. Liz what a time to be alive. Stuart no further discussion to be required. Lets talk about the fed. [laughter] cracking down on wells fargo and im not surprised. Liz you cant grow until you clean up your act, you cant grow and taking deposits, they had to dial back on other businesses, maybe their trading. This is a shot across, the entire banking sector. The first time Federal Reserve came in you have to limit your growth. 3 and a half customer accounts, so the aftermath of that. Maria you basically we can grow and keep assets under management under 2. 9 trillion but the fact is that the rest to have industry is going to be growing, stu and wont be able to come up. They will probably shrink the trading business. Thatll be one place that takes a hit. They will have to make room for more loan growth. Stuart stock is down 8 . Liz they are ordering balance and trading activity in wells fargo right now. This is taking a hit this morning. Charles i agreed with elizabeth warren, they needed to send a message. This was nefarious action against regular folks and hurt a lot of regular people who were barely making it month to month. I wouldnt buy the stock here though. Liz 550 customers got charged. Stuart this bonus list. It keeps on growing. Maria going into the Midterm Elections the democrats will have to answer two questions, why did you vote for the tax bill and why did you allow the government a shutdown. This is actually 5 growth in the economy that we are talking about right now. Stuart yeah, stand up a responsible democrat and say, come on, we like this whether its trump organized or not. Stuart not one voted for it. Stuart we have to talk bitcoin, dropped below 8,000 after after Banking Group latest to ban buying with bitcoin. Youre not a bitcoin guy. Charles whats hurting them more than that is china overnight. They have cut access to overseas websites where chinese citizens could have traded bitcoin or liz china, south korea, india cracking down. Stuart is there any connection between the sharp selloff in bitcoin down a thousand 1300 bucks, any selloff . No, two entirely demographics theyre not holding the other stocks right now. Stuart would you like to expand on the marijuana stuff . The demographic, the younger folks are investing in marijuana stocks and bitcoin and they have done very well until the last two weeks. Stuart youngsters think in term of investing as doubling money in a week. Maria a lot of people in wall street have not seen a massive selloff. Stuart the youngsters, maria, i tell you. I have to say thank you very much to maria and to charles, great performance on monday morning. Where are we . Okay, now we are down 260 points, we are going all over the place today. We opened with a loss of 350, paired that to a loss of 180, now we are down 260, almost exactly 1 down. Lets go to nicole on the floor of the new york stock exchange, whats the mood down there . First of all, you have to like that we started off and came off the lows right away. Last week we had such a tough week but as maria said earlier, the traders dont mind a bit of a washing out. Whats interesting is some people stepped in and buy on friday. Last week we dropped over 4 , nearly nearly 1100 points in the week. So the feeling here is that they are focusing on rates, highest since 2014. Rising rates is not reason to sell out everything in equities, in fact, they are just saying that some people are selling and taking profits and the lowhanging fruits, the easiest buys have been taken. They want to continue to be in there and be discipline and continue to buy equities, because rates are rising, you dont jump out of entire portfolio. That would be extreme move. We are off the lows of the day, and now we have a new week ahead, weve had great earnings, we have obviously a good economy and good tax plan thats helping people, so the feeling is that you dont feel bad of equities here. Stuart okay, nicole, thank you very much, indeed. Politics, lets get to that why dont we . Midterm elections right around the corner, President Trump is going after red state democrats and really pushing the economy and its performance, bill is with us, hes with the wall street journal editorial board. Now, President Trump seems to be going after Senate Democrats from vulnerable states, Vice President pence chased down joe manchi, in the other day and today the president is going to ohio, no vulnerable democrats that i know of but nonetheless thats a swing state. Brown is running for reelection. Stuart hes way in the left. Stuart hes vulnerable . In the senate the map really favors republicans, Something Like 26 Senate Democrats running for reelection, 10 of them in states that donald trump won. And here is where, i think, we are seeing the resistance, people are going to pay a price for the resistance because the democrats had the resistance on the tax bill, not a single one voted for it and it was very unpopular when it passed and now the popularity is rising and people see the results in the real economy and democrats cannot cheer the economy now. They have a vested interest in bad economy and if it gets better which i think is the president s bet, itll be harder and harder for them to repay. Thats a real price of the resistance that we never talked about. Stuart its the economy, stupid . A big way, it doesnt mean that people are materialistic, we have forgotten what 3 growth is like. We had that for most of post war period, since then 2 . It means your kids are getting out of college, have a job, youre not stuck in your job, you see a new factory going up, the crumbs that nancy pelosi talks about a thousand dollars which is for a lot lot of people, anyone making 50,000 a year thats a weak salary. Stuart i think republicans are going to run on that. They have ads prepared to go about crumbs. Yes, look, they have a big advantage because democrats so attacked the tax bill when they came out. A lot of people had misimpression. A lot of people thought they were going to get tax increase. One of the most unpopular bills when it was passed but now people are seeing the effects, right . Stuart nancy pelosi on our screens right now three times she has said to my knowledge publicly she has said 86 million middleclass American Families face a tax increase because of this bill. Right. Stuart right at the moment when 86 million families were getting a pay increase because of the tax cut. Donald trump is very polarizing but so is mrs. Pelosi, i think mrs. Pelosi is going to be the head of a lot of republican ads as you mentioned. They dont have a choice, what else do they say . Thank god for the tax bill that none of us voted for. Stuart tax cuts and the bonuses, do you think thats the beginning of turning point in electoral politics in november . I hope so. I think again as i said, we havent we havent had this kind of growing economy for a long time, basically since 2000, its been stuck in this 2 which the obama people tried to tell us was the new normal and theres a huge increase for people between 2 and 3 . Thats what people dont realize. Theres nothing you could do even give away money that would put more money into peoples pockets, working families than this because its not just the money they save on the taxes as you see, its from the growing economy, bonuses and opportunity. Stuart feeling of prosperity. It has to be real. Stuart and it is real. Exactly, it is real. Stuart youve been on the program twice for the last week, if youre not careful, you become a regular. Watch out, bill mcgurn, everyone. Thank you, sir. Thank you. Stuart far from it, we have been up and down all morning, 25,260 is where we are. Democrats outraged over the release of the memo, they are calling an attempt to undermine the fbi and mueller investigation. We are on that one after this. Feel a cold coming on . Zicam cold remedy nasal swabs shorten colds with a snap, and reduce symptom severity by 45 . Shorten your cold with a snap, with zicam. Looking for a hotel that fits. Whoooo. Your budget . Tripadvisor now searches over. 200 sites to find you the. Hotel you want at the lowest price. Grazi, gino find a price that fits. Tripadvisor. 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. Stuart President Trump just tweeting about immigration. Here we go. Any deal on daca that does not include Strong Border security and the desperately needed wall is a total waste of time. March fifth is rapidly approaching and the dems seem not to care about daca, make a deal. Father or mother news contributor lisa boothe is with me now. This is coming out. What do you make of it . Look, President Trump put out a deal that was actually very middle down the road and Nancy Pelosis response to giving a pathway to citizenship for 1. 8 million Illegal Immigrants was that he was making America White again, personally, i dont know where you go from there in trying to come together for a deal. I dont have a ton of faith that this is going to get done. Stuart they are miles apart at the moment and the president is keeping a strong line. Do daca by all means but we will have a wall no matter what. I think the democratic shot themes in the foot, shutting down the government over daca, 58 of americans disagreed with that approach and so i think they actually weakened their hand by doing that and what ended up happening, stuart, they ended up going back to original deal that was on the table and there was virtually no gains for democrats in that process, i really think that they ended up hurting themselves and weakened their hand after doing that. Stuart tell me more about the dnc being broke. Not good, stuart. Especially on your show we know this. It hurts the democrats because it cost money to win elections and they are trying to win back the house and the senate after suffering historic losses over the past eight years so this does not help them and also you coupled this with the fact that just back in december republicans were losing by 15 points in the generic ballot, the lead has shrunk to only 2 points and you look at President Trumps Approval Ratings and gained 10 points in Approval Rating, at least according to mammoth polling, i think that democrats really thought that they were going to be in a strong position heading into the Midterm Election, right now i think some of those hopes have drained. That being said, we are so far out from the Midterm Election that is quite literally anything can happen between now and then so just an important caveat with that. Stuart with all they have going for them, unpopular president in many parts of the president , they are broke. Can i be honest . Please. I think tom perez is a complete joke. He has done nothing and incapable of raising money and tried to put a litmus test on Democratic Candidates regarding abortion when democrats are trying to win back some of the red states and congressional districts where that stance is not going to fly. I think hes a pleat joke and, i hope the democrats keep him around, keep him around, hes great. Stuart lisa boothe, thanks for being with us today. Thank you, lisa. The polls as we just heard the polls are shifting in President Trumps favor, his approval rate asking on the rise, by the way, the latest polls on approval were taken before the increase in your paycheck, we will be back with that in a moment. With fidelitys realtime analytics, youll get clear, actionable alerts about potential Investment Opportunities in real time. Fidelity. Open an account today. Building a website in under an hour is easy with gocentral. From godaddy in fact, 68 of people who have built their. Website using gocentral, did it in under an hour, and you can too. Build a better website in under an hour. With gocentral from godaddy. Sometimes, they just drop in. Obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Stuart the polls are beginning to shift in President Trumps favor. His Approval Rating is 42 . That is not a good number be sure of that but its a whole lot better than the low 30s he was hitting two months ago. What changed . The economy changed. November threw december, Holiday Spending was robust. The money was flowing. As the year turned the president signed on to tax cuts, in january, the bonuses started to flow. There is nothing like 1000 check to gladden the heart. That is when these approval polls were taken. That is when his rating started to move up. Now were in february. Most paychecks have gone up as tax cuts take effect. Bonuses are flowing. Theyre contributing, an additional, anthem is contributing an additional 1000 to employee 401 k s. Best buy gave 1000 to over 100,000 fulltime employees. Who would have thought we would see businesses compete to offer more to their workers. That is whats happening. The money is flowing. When the polls come in for february, i think you can expect the president s Approval Rating to go up a little bit are movement the democrats response, really misses the mark. Nancy pelosis crumbs comment sounds out of touch and her statement Middle America will pay more in taxes is, shall we say wildly inaccurate. Now the democrats attacks on the president ignore the economy and focus instead on the memo. Thats tough going. They thought russia, russia, russia would burr i are the president. Instead it is the Clinton Campaign and the fbi are at the center of a main scandal. It was generation ago that bill clinton swept into the white house with the slogan, it is the economy, stupid. True then, true now. The president goes to ohio on tuesday and he will pound on the economys success. Nine months to the elections. Watch the approval polls. The second hour of Varney Company is about to begin. Stuart we are 31 minutes into the monday morning trading session, were down 220 points. We were down 250. Come back a little. Numbers released on the Service Sectors performance. Ash . Ashley used word surging. 59. 9. Any above 50 is were expanding. This is real estate, finance, insurance, so on, 59. 9 is a blowout number. But, that begs the question, that good news for the market or bad news . If everything is humming along nicely, the fed starting to raise Interest Rates. That is very good number. Stuart it had a modest mine more effect on market. No it is not. They heard your last sentence, good news on the economy may mean higher Interest Rates, which is bad news for the markets. Were tweeting down a little more. Down 207 as we speak. Always check the big names. So important, as of right now, theyre all down except apple which is actually is up. Look at that apple is up 2. 87 a share. I dont think we influenced the market, we did say when apple brings all the cash some will go into the stock or dividends. Apple is now up 2. 80, 163. 30. Intel, there is a stock bucking the downtrend. It is up but not much. 43 cents on intel. Attempted merger, Chipmaker Broadcom made its best and final offer to buy its rival qualcomm. Theyre offering 82 a share. That is 100 billiondollar get together. Broad up is up, qualcomm is down. Bit coin, wait for it, it is down to 7275 per coin. Off 4188 today. 7200, bit down. Its a dip, dr, are you buying it . I am buying it, stuart. As a matter of fact, we bought some more. Apple on friday, just because they were they were beaten down more than they should have been for really good earnings and forward guidance. When you get something stretched to extreme i like to play the rebounds. I think that will play out over this next week, throughout the big names we always follow, stuart. Stuart dr barton, brave guy. Youre stepping into a 200 point loss. Im buying. Confident sort of fellow. Interest rates are rising. What do you buy on the stock market when Interest Rates are going up . Yeah, you know, you and i talked about this last tuesday, stupider, in the studio. This is one the one fly in the ownment with global strength and earnings strength, tax reform. It is this one thing. Ash hit it really well, good news starts to be seen as bad about it markets, that tells us were in the rising Interest Rate environments. I like banks, particularly regional banks. Right now i like pnc, which we dont own. I like suntrust which we do. Regional banks get all of their income in the u. S. , so they bet the full force of this u. S. Tax reform to their bottom line. Stuart i want to go back to apple the turn around is so spectacular. Apple such three bucks to 163 is there something you can point to other than you buying it that has apple going to 163 . I dont believe i moved apple, stuart with my purchases. I dont think there is any specific news. I think this will be a leading rebounder just showing the way. This stock as you pointed out at top of the hour, at top of the last hour was the first of the big techs to get fully into correction territory. I think that people saw the good earnings, what the services are doing in the stock. All the things that theyre doing with the app store, music and other services. That this is, that this is a positive thing for the stock, and that is going to bring it up some more from here. Stuart two more stocks, very popular stocks that run up bigtime, i want your comment. First of all, amazon, it dropped below 1400 a share earlier. Now all the way back up to 1423. You buying it . Im buying it, stuart. Every pullback at amazon. Amazon is legacy stock. Its a stock that you have to have in your portfolio. We own it. I think alibaba is like that in china. That as long as there is chinese economy stays robust its a legacy stock. It is very sim pat cowith amazon in the very similar businesses. Another legacy stock we own in the company as well. So i really like amazon. Stuart gotcha, dr. Thank you for joining us on a very important day. Food luck with your apple stock, young man. I think its a good deal. I want to get back to the memo. The memo was released on friday as we were ending our show. We had media response to it, i describe it as apoplectic, frankly. We have author after great book, media madness. He is sitting next to me in new york city. I say it is apoplectic. What do you they have the memo . This memo got more pregame hype than the super bowl. People on the rate say it is bombshell. Consensus on mainstream media, it was incomplete, it is flawed. Who cares about carter page. All the business about surveillance warrant for Trump Campaign carter page. But more important, stuart, the media moved on to, not the memo by devin nunez, the war between the president and fbi. The president is mounting unprecedented assault on Law Enforcement. That is many abouting a dominant theme on coverage. Stuart i am not sure what i would pick on if im comment tating on the memo. I would pick up on the idea that the fbi ganged up on the Trump Campaign and used a bogus russian surveilance memo. That to me what happened as opposed to a war between the president and fbi. This memo practically sledded credibility of Christopher Steele that wrote the dossier. At same time that episode with carter page was one part. We have mueller who was a private citizen at the time of this warrant business, with a much broader investigation that is now swinging from the alleged collusion to supposed obstruction. Also the fact that the fbi director, trump appointee, strenuously objected to release of memo, fueled this narrative about trump versus Law Enforcement. Stuart let me briefly segue for one moment, howard. This market is coming back. Look at bottom righthand corner of your screen. Were down 145. When the market opened we were down 350. Looking for a bottom maybe . Maybe some people buying the dip. But that market came back a bit. Howard, sorry to interrupt. I feel wealthier already. Stuart now you have a story in your book and the takeaway from it, that former, mr. Mccabe, fbi guy, he betrayed Reince Priebus who at time was chief of staff to President Trump. Tell me the story. Right. Certainly Reince Priebus has asked that question. Early in the administration andrew mccabe, number two at fbi at routine meeting. Reince doesnt really know who he is. Mccabe takes priebus aside, we want you to know that New York Times story is bs cleaning it up. One of the first stories about senior trump associates. Priebus is saying were getting killed on this 24 7. Can you say it publicly. Mccabe says, we cant. Priebus calls the head of fbi. Can you say this story is not true. We cant get into the business of say this is true. Few days later, leak to cnn, that white house chief of staff was pressuring fbi to discredit story in major newspaper. Preen bus was stunned. Comey told him he had nothing wrong. He was wondering if he set up. He didnt initiate the conversation. There were stories saying Reince Priebus should resign. Reince priebus is a liar. Quite an episode. Stuart you really is and describe that full in the book. Reince priebus was on television he confirmed this on the record. I confirmed it based on my reporting in media madness. Stuart if you would have given me a copy i would produce it. I sent it to your produce. Stuart media madness from howard kurtz. Thank you, howard. The market has come back but were still down 144. Bank of americas chief strategist says bigger drop still to come. Liz for s p. Stuart for s p. Does that mean it is time to buy it . I dont know. That is the good question, should you be buying it, yes or no. Well be back. Ll night long . All night long. Is that Lionel Richie . Lets reopen the market. Mr. Richie, would you ring the 24 5 bell . Sure can, jim. Trade 24 5, only with Td Ameritrade. Stuart evidently some people are buying the dip. Many commentators said buy the dip. A lot of people apparently are doing it. Now were down 99 points. We had been down 350. That means weve come back to the tune of 200 points from the low of this monday morning. We have kroger, theyre selling Convenience Store business to a british Convenience Store retailer. Theyre getting 2. 1 billion for it. Dicks Sporting Goods is down. A top official is stepping down. Barclays says sell that thing. It is down 2 1 2 . Now this. Bitcoin. Whoa, look at this. I think were down to 7300. What is the problem, liz . Liz china, Charles Payne launched a great firewall to block websites that trade bitcoin. As lloyds joined citigroup, jpmorgan chase, bank of america, you know what . You cant buy bitcoin with your credit cards. With this washout, people are seeing big balances on their credit cards. Remember it lost last week, thursday through friday, 125 billion in value. That is equivalent to losing entire honwell. We have china, india, south korea tracking down. G20 may come out with statement on bitcoin. Theyre taking a pasting. It was trading 19,000 in december. Well more cut in half. Stuart six weeks ago it was touching 20,000. Nancy pelosi was indeed called out for the crumbs comment in an ad put out by a group aligned with the house gop leadership. Jason chaffetz, former utah congressman is with us now. I think well see a lot of this. That crumbs comment was so extreme, outrageous, out of touch. Im sure you republicans, you are going to focus on this, arent you . Well, look the fundamental question going into november, is going to be do you want to vote for your local democrat because if you do, you want to make nancy pelosi the speaker of the house. She thought that these tax plan was armageddon. She has been opposed to deregulating on businesses. She basically wants the democratic agenda of higher taxes and more government. Stuart that would be a good tactic, wouldnt it. If ms. Pelosi sun popular with the base, conservative republican base, then focus on her and focus on what she said about crumbs. Its a pretty strong tactic. I suspect the president will do that today . I think, i think you will hear a drumbeat time and time again. The first newly elected Member Congress and who will you vote for speaker . The democrats will vote for nancy pelosi. And in the senate it is Chuck Schumer. The democrats are void of a message. They dont have any national leadership. There is no vision. If you ask yourself, what is their agenda, proactive way to grow the economy, make America Great again, they dont have one. Donald trump answers that question. But nancy pelosi and Chuck Schumer dont. Stuart get more on taxes. Jason, listen to what National Economic counsel director gary cohn said on this show. Roll tape. The president is rawls trying to deliver for the American Workers, the american public. We would really like to make the individual side of tax reform permanent. That is one thing that we didnt get done. We would love to go back and make it permanent as soon as possible. The president is really, driving to get that done. He wants to make sure that every hardworking american gets a permanent tax cut. Stuart jason, do you think that can be accomplished in this congress, the tax cuts permanent for individuals . I do because as you move into a new budget season, remember the senate and the house put an artificial cap of 1. 5 trillion. That is how much they can cut. Why in the outlying years they had to make that adjustment. That is just paperwork. They can make that adjustment. Nobody believes they will raise tax as few years from now. But as you go into the new budget, the budget is due february 15, as you move into the process there is a new number and maybe the adjustment and make it permanent. Stuart very interesting. Jason, thanks for joining us. Much obliged as usual. Thanks, stuart. Stuart earlier ratings for super bowl are in. Nbc says, 47 of all tvs turned on were turned on to the game last night. That is by the way a 3 drop from last year. Im surprised. Liz im surprised. Stuart Justin Timberlake, his perform wants was not got what people talking. When timberlake is going into the crowd, the youngster seemed distracted by the phone, taking a selfie with the singer. People were wondering is he googling Justin Timberlake. He was recording a video of the performance and trying to get to that selfie. Market coming back very nicely. We will be back too. Nah. Not gonna happen. Thats it. Im calling kohler about their walkin bath. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] hmm. The kohler walkin bath features an extrawide opening and a low stepin at three inches, which is 25 to 60 lower than some leading competitors. The bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. Kohler is an expert in bathing, so you can count on a deep soaking experience. Are you seeing this . The kohler walkin bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. Everything is installed in as little as a day by a kohlercertified installer. And its made by kohler americas leading plumbing brand. We need this bath. Yes. Yes you do. A kohler walkin bath provides independence with peace of mind. Call and ask about saving 1000 on your walkin bath, or visit kohlerwalkinbath. Com for more info. Stuart have we come back or what . The dow is now down a mere 52 points. We had been down 350 points. Were coming back more as we speak. Now were down 46. 45, 44. Okay, well keep you in touch with this one. President trump is going to a manufacturing facility in ohio today. Jeff flock is there. I think youre in blue ash ohio . I think the president is going to be talking about tax cuts and bonuses. Is he . Its a great place to do it, stuart. That behind me is the shefer corporation. They make hydraulic cylinders used in heavy equipment. This is small company, 130 people. They all got a bonus, 1,000 bonus because of the tax cuts a lot of folks will listen to the president. He will push that narrative. Speaker ryan tweeted about a secretary who tweeted got 1. 50 in her paycheck that could be arguably called crumbs but thousand dollar bonuses not so much. This is bit of unity today, rob portman, republican senator from ohio, who withdrew his support over the president because of access hollywood tape. He. I dont know if the president will talk about the market. If you keep talking it up maybe he wont have to. The president did say at some point we would get tired of winning. We would be winning so much. Maybe it is possible that the guys on wall street are tired of winning . I dont know, what do you think . Stuart never, never. Jeff, when it comes to money, nobody ever gets tired of making more, winning by making more, ever, got that son . I guess i got that. Stuart all right. Come back to see us real soon, jeff flock. Good stuff indeed. Bottom right happened corner of your screen, look at it. Were coming all the way back. Were down 17 points. We down 350. Liz interesting. Stuart next case, Mercedes Schlap White House Senior Communications advisor, will join us on the president s midterm strategy. The democrats are pushing to publish their own memo but are we the people ever going to see it . Well get an answer to that. Stuart twist and shout, oh, yes. As youngster you were embarrassed when the beatles sang that. Look at this. We came all the way back from minus 350. We were up three or four points. Now were down 28. I call that a comeback. How about the s p . That was down sharply. It is still down but hardly at all. It is down only. 56. Thats it i would say thats a comeback. Now the nasdaq has come all the way back into positive territory. It is now up 28 points. That tells you that the big techs are doing very well this morning. Check them out please. Look at this list. Facebook is only down 18 pence. Cents. Apple recovered all the way back to 163. That is a comeback. Jack hough, barrons senior editor, is with us now. Looks to me, you tell me whether im right or now, looks like investors bought the dip . I think so. Why wouldnt you . We only had a little come down relative to the huge rise. Look at 2018 expects earnings, were 16 times earnings of the s p 500. That is not even pricey. The best growth we have had since we stepped out of recession. I see no reason not to keep putting money into stocks. Stuart really . Now were down 71. 76. Ashley here we go. Stuart stuart 350 down. Four up. Look what you did, barrons. Ashley oh, the power. Stuart am i right in saying barrons called, apple and facebook the teflon twins . That is what you call them, isnt it . Yeah. Stuart what do you mean by that . Our tech columnist, you have this news for apple where the iphone x looks disappointing in sales. Im not sure it is such a big deal for the stock. What we see is do you on poly at highend Smartphone Market where all the profits are. There is very little switching. 85 of iphone customers stick. The ones who stick, apple gains more than it loses. It is stable market. People not buying iphone x, will quite likely buy next med doll. You want to settle stock down, 10 bucks, 15 bucks, apple will buy it cheaper. Stuart they bought the dip. Now it is five dollars higher at 1453. The other teflon twin is facebook. You cant go wrong with facebook. People were nervous initially amount of time people spend on facebook. It is not growth. It is quality. It will happily trade the amount of time people spend watching the site. Higher quality relationships and less intense criticism over some of the garbage floating around facebook. Stuart is facebook a buy at 189 . That is a great buy. This is duopoly market, Online Advertising between alphabet and facebook. The only company with a prayer to break in is allison amazon. Stuart people were buying the dip. Now theyre selling it. We were down 350. Up four. Now back down nearly 100. That is where we are. You can expect a up and down day. Jack how much, your fault. Thank you very much, jack. Amazon close to alltime record territory. It is way up there. Burt fleckinger is with us. Managing director at the strategic resource group. I read your stuff. Youre telling some investor to sell some of their amazon because it has gone way up a bit too far. How much would you sell . Sell a quarter, keep 3 4. Walmart is coming on strong. Buy walmart what you self amazon. Stuart if you have 100 shares of amazon, sell 25 of them. Start a half position with walmart. Stuart because if you bought it early enough, you are taking profit and risk off the table, arent you . If you bought it and you and fox Business News recommended you would have made 950dollars. Power to prosper take a profit. Stuart september 16th, that is chinese knew year, you think its a that big name retailers will benefit from chinese new years . Which retailers. Walmart, fedex, like walmart, walgreens boots is part of it, and u. S. Side, the Albertsons Safeway bonds. Albertsons sponsored the Philadelphia Eagles winning the super bowl. Also like cvs, ross, pets med, preferred stock of travel centers of america. Stuart hold on a second. You have to go back to the chinese new year. That is, how big is that . I mean, enormous amount of consumer buying. In terms of worldwide buying, stuart, its the biggest. The year of the earth dog, epitomizing sincerity, responsibility, loyalty, all the traits epitomized by you and your team here. People are buying, so you have late great, bob wilmers with year of dog envelopes for cash and lot of people buying gifts from gold to tiffany to general merchandise items at walmart and all the leading retailers throughout the prc, asia as well through the americas. Stuart is this a bigger chinese new year, than the last chinese new year, one before that. Sales should be up 10 over alltime record last year. Stuart is there a way to put a number on sales . Should see increase of 17 to 18 billion. Stuart just like that . Yeah. Stuart burt, thanks very much for joining us. Always the best. Stuart, youre a tough person to buy from. They love the panda. Bronco panda for great Chinese Lunar new years. Stuart it is bronco bronco panda. Albertsons boise state bronco panda. You liz and ashley, have a College Football team to go with ashleys green bay packers. Ashley there you go. Stuart nice try. Were following your football, stuart, in the u. K. Rugby coming World Championship coming to japan. Stuart thats right, it is. Burt, thank you very much. Thank you. Stuart back to the released classified memo. The House Intel Committee will vote to release a democrat memo. Here is what the president tweeted about this. Wait for it. Little adam schiff, desperate to run for Higher Office one of the biggest liars and leakers in washington with comey, warner, brennan and clapper. Adam leaves closed Committee Hearings to illegally leak confidential information. Must be stopped. Ouch louisiana congressman mike johnson joins us now. That is pretty strong stuff. What do you make of it, congressman . Pretty Strong Language but there is a lotobject to the way the democrats are handling this right now. The majority on the Intel Committee did vote to allow democrats or minoritys memo to be circulated to all house members for any of us to read it, to do that. Theyre going through exact same process, exact same timing done for majority memo. Im not sure what schiff and rest of the democrats could complain here. Were trying to bring about transparency. We think American People have the right to see these things to make their own conclusions. Stuart like the rest of them we want to see you will at memos including one from the democrats, you want to see that one out there . We do. I think it is proven that the memo released is not in any way compromise the National Security or our methods or intel apparatus at all. I think the same could be said for the democrats memo. Were for allowing the truth to be followed to take us where it leads. I dont think there is anything to hide here. I think democrats memo should be released to American People. Let the truth come out. The people are owed that service. We hear that chairman nunez he is talking about a second memo. This one deals with the state department, nothing to do with the election so much as separate, separate issue with the state department. Is this going to reach up to the secretary of state at the time, Hillary Clinton . Well, we dont know yet. Im not on the Intel Committee. Im on the Judiciary Committee and we have oversight over a lot of these areas so were deeply concerned about it. Look the mueller investigation, the special counsel, where all of that is leading, there are a lot of different facets that go into this. The concerns and questions about the state department is separate and distinct issue this is something that should interest the American People. We have to have faith in our institutions, stuart. At the end of the day that is what is in jeopardy here. It is not all the the personnel at lower level but higherups are showing political bias. That is of great concern to us. Stuart youre on the Judiciary Committee. The left says this memo undermines Law Enforcement. Does it . Not at all, no. It was one of these finite questions. Was, as we calling it now the dirty dossier, the steele dossier, was that used in inappropriate way to obtain a warrant to spy on an american citizen . The fact is that it was. That is specific issue. Its a segregated matter that we have to look into, but relevant to the overall concerns. We didnt sacrifice in any way that National Security or Law Enforcement or any of the rest. Were talking about whether or not there is political bias on the part of people that make these Big Decisions on behalf of all of us, that should concern every american citizen. I think it does. I think well get down to the bottom of this. Stuart congressman, mike johnson, thanks very much for joining us on monday morning. Appreciate it. Thank you. Thanks, stuart. Stuart a big play that helped the eagles win the super bowl. Just before halftime a trick play to take a 10point lead. Quarterback nick foles, catching the touchdown from tight end trey burton. Foles is the first qb to throw and catch a touchdown in a super bowl. He did it. Eagles fans in philadelphia got a little rowdy celebrating their first super bowl win. Check this out, awning outside of a ritzcarlton crumbling with a dozen people on top. Liz goodness. Stuart initial reports, from injuries from that. Sean lan debt tax a former eagle joins us next. Mom and dad got a new car. Its not theirs. Its mine. Mine. Mine. And it always will be, forever and forever. The new rx 350l with three rows for seven passengers. Experience amazing at your lexus dealer. He gets the best deal on the Perfect Hotel by using. Tripadvisor thats because tripadvisor lets you start your trip on the right foot. By comparing prices from over 200 booking sites to find the right hotel for you at the lowest price. Saving you up to 30 youll be bathing in savings tripadvisor. Check the latest reviews and lowest prices. Ashley in the last hour William Mcgurn of the wall street journal told us democrats will pay the price of their policy of resistance as the economy continues to grow. Roll tape. . The senate the map really favors republicans. There are 26 Senate Democrats running for reelections, 10 of them in states that donald trump won. And heres where i think were seeing the resistance, people are going to pay a price for the resistance because the democrats had the resistance on the tax bill. Not a single one voted for it. It was very unpopular when it passed. Now the popularity is rising and people see the results in the real economy. Democrats can not cheer the economy now. They have a vested interest in a bad economy. And if it gets better which i think is the president s bet, it will be harder and harder for them to maintain. Hi, im the internet you know whats difficult . Armless bowling. You got this, jimmy you know whats easy . Building your website with godaddy. Pick a domain name. Choose a design. You can build a website in under an hour. Now thats a strike get your domain today and get a free trial of gocentral. Build a better website in under an hour. I love you. Stuart this is truly a down up, down market. We opened 350 points lower. We struggled back to 4point gain. Were down 73 points. Up down all day. 73,400. If you watched the game last night, patriotism on full display. Every player stood for anthem and world war ii veteran who served in battle in iwo jima, participated in the coin toss before the game. I want to bring in former player sean landetta. What say you . Last night that was the grand stage. You saw everyone stand. You saw the world war ii vet. You saw one of the greatest super bowls of all time. Stuart thats right. Thats right. All of this maybe you think the nfl could come back strong next year . I do. I think so. There is a lot of people that love the game. People werent happy with things that took place, what a great night for the league last night. Stuart one of the patriots receiver, brandon cooks, he was injured during the game. He took a huge hilt. Im not sure whether he was carried off or not. Do we have video of that or not . Im not sure. I take it from i think well see it right now. Well look at that. Lets have a look. Bang. That was a hit and a 1 2. The focus will not go look at that that was a legal hit, i believe. Yes it was. It was a great hit, and for years. That is something that people would be encouraged to do today. People worried about the health of players, that is something that is not condoned. During the season that might have been a penalty. During the super bowl, they didnt make the call. Stuart focus is on player safety, isnt it . While those plays are very exciting, at same time they dont want players to be injured. Stuart can you get youngsters into the game when moms say, i dont like hits like that. That is a great point. Moms will determine whether they play or not. That hit, seen in the super bowl, parents will not want their kids to take that. Stuart that is real problem long term for the game i think. I think so too. The pool you draw from the league will be smaller. Stuart you never took hits because you were a punter. I took a few. Torn calf, herniated disk, ascl. Not like the other buys. Stuart you played for eagles. Played five years there. So happy they won. They have been waiting 57 years. Stuart the game featured fewest punts in a game. Only one. That is unheard of. The patriots punter did not punt. He will get 112,000 for his effort. Good for him. Stuart 112,000, that bonus. I think what players get winning super bowl. Losing team gets around70,000. That you feel like you did something in the game but good for him. Stuart if you win the super bowl ashley that is contract. That might count two playoff games before it. Guy like tom brady will make a Million Dollars in the last game of the year. In his first playoff game make 30,000. In more important game he take as tremendous pay cut. Stuart 112,000 goes to every eagles player because they won. Thats correct. Stuart patriots get 70,000 a piece . Thats correct. Stuart and taxable. You have to pay taxes, sore point on this program. Thank you for joining us. Thank you. Good stuff. Thank you. Stuart there is warning back to money for a second. Hold on, before we get into that. Look at this . Dow industrials down eight, down seven. We started interview with sean here with down 90. Liz started day down 350. Stuart landetta moves markets. Stay there. Were down 15 points. Bank of america chief investment strategist says, the s p, broad based indicator could fall another 4 from where it is now. Whats that all about . Should you follow his advice . Get out. Should you . That is the empire state building. Well be right back. Stuart might be example of a bad call. Bank of america, first thing this morning, one of their top analysts, he is having a cell signal. Liz he is watching investor overconfidence. Saying the market will go down 4 . Back in july of last year, he says he see as crash in three or four months. It didnt happen. He see as flash crash first half of this year yet to materialize. Im just saying take this with some perspective. The markets lost about a months worth of gains. We are at levels we saw in january. Stuart im not faulting a guy for making a call because he might be right. Right. Stuart i dont know that this is very early days on a monday morning. Got rest of the week to go. Who knows. Liz this earnings season, sales are up 7 . Earnings up 13 . The numbers coming in on earnings pretty solid. Stuart the economy is very strong. Ashley yes. Stuart i have got this item of news on wells fargo. Nasty sanctions coming at them from the Federal Reserve. It will cost them how much . Ashley a lot of cash. Up to 400 milliondollar hit to their profit. The feds saying you have to hold back your growth. Basically assets they have at end of the year, they have to maintain that level, close to 2 trillion. How are they going to offset this . Lizzie mentioned, scale back on trading desk a little bit. All in response to creating millions of fake customer accounts and charging people, you know, borrowers for accounts they never even agreed to set up in the first place. Stuart when that story broke about these fake accounts ashley yes. Stuart as i recall wells fargo dropped into the 40 to 50dollar level. Now theyre at 59. Falling back by 4 because of fed sanctions. Theyre still doing pretty well. Ashley they are. Stuart how they will do in the future, i dont know. Liz this is sixyear low. What ash was saying will fed do this with other banks, shoutout to clean up your act . Stuart i want to check the tech stocks, because there is real action there. Talk about swinging around. We have, a mixed performance at the moment, all of them opened sharply lower. Facebook still down but not much. Amazon up another 21. Microsoft is up a buck. Google is down 10. Apple back to 163. As you can see this market is all over the place today. Ashley pepto bismol. Stuart what . Ashley pepto bismol. Stuart we were down 350 at the start. Now were down only 34 points. I think we need a little perspective. I will try to do that for you in a moment. This is where i trade and manage my portfolio. Since i added futures, i have access to the oil markets and gold markets. Okay. Im plugged into equities trade confirmed and i have Global Access 24 7. Meaning i can do what i need to do, then i can focus on what i want to do. Visit learnfuturestoday. Com to see what adding futures can do for you. Stuart after last weeks big selloff you can be exuded for being nervous this monday morning. We are not used to stock market prices dropping. Thats a 4 loss. We are down just a tad more right now. Anxiety is inevitable. There are a lot of people who are looking at money and worrying that all those wonderful gapes are going away, time for some perspective. First of all, stocks are going down because the economy is doing well and because its doing well Interest Rates are rising and thats often bad for stocks. Its not like we are heading for a recession, we might hit 3 rates, we should remember they have been much, much higher in the past, 286 right now. Second, stocks were due for a pullback, anyone with any experience know that is no market goes straight up forever. It doesnt matter whether its stocks or gold or oil or bitcoins, sooner or later after a big runup some people will say enough, they sell, take their money off the table, prices come down, the rally stalls. Looks like thats whats happening now. Nobody knows how far down we go, nobody knows if or when the buyers come back, but again some perspective, the dow is up 40 in the 15 months since the election. Even a huge selloff now would ill leave investors with healthy post election gains. When your stock goes up dramatically, you book that gain in your head, you are happy, youve made money. But when the stock comes down a little, no you havent, you lost part of your gain. Worth keeping in mind on days like this. The third hour of Varney Company is about to begin. Stuart happening in this hour, President Trump heads to ohio, hes going to promote the tax law and tax cuts, hes going to speak in a manufacturing plant near cincinnati this afternoon. Hes speaking at a plant where employers received nice bonuses. The dow just down 17 points. The selloff has continued but nothing like it was at the opening bell when we were down 350 points. Now we are down 22. Joining us contributor, Fox News Contributor scott martin, did you buy the dip this morning . We did buy a little. Thats true market perspective that you gave there, my friend. Here is the thing, we did buy some this morning. I will give you anecdote here, i had clients, i manage for people that were in the markets for the last several months and last several years that liked the outlook last week, they called me over the weekend and some called me this morning and they got out. I tried to talk them out of it. Its kind of interesting, the psychology of this push and pull is alive and well right now and thats why you are seeing volatility right now. Stuart lets talk big tech for a minute. Apple stock up this morning, i believe 163 on apple. It was in correction territory but not anymore. Its bounced back today. As i recall, scott, apple is your least favorite of all the big techs, how do you explain a 3dollar bounce . Oh, gosh, maybe somewhat bounce. It is my least favorite and so far a pretty good call because facebooks and amazons have outpaced it. The reality with apple visavis other techs, stuart, apple is the most attractive valued stocks out there in that environment, so if youre looking at picking up something thats been taken out with the trash, apple could be it. Looking at returnings report last week, id still wait a little bit longer to take a bite out of this one. Stuart i ask you this almost every time but i have to ask you again, would you buy amazon, would you put your clients money, fresh money into amazon right now at 1450 . Yes, and we did today, my friend. We would continue to do so. We have owned amazon on the great ride and i continue to think that amazon continues to dominate. Amazon is also a tech company now with all the cloud participation they have with aws, amazon to me is a dominator and i know charles talked about one of the obstacles in front of amazon here Going Forward with respect to government intervention. I believe thats years off in the distance depending on how dominant they get in the meantime, i still like amazon continue to grow here. Stuart down 350, down 4 and now we are down 60 and going down again. We are up and down all oaf the place. Scott, do i want to talk about bitcoin. Believe it or not that coin is not valued at less than 8,000, 7,390 to be precise, does it keep on going down . I believe it does, stuart . It needs to correct its not that the block chain story is dead, things probably got a little bit overheated. You made a point about the lack of volatility thats been in the market, the same thing happened with bitcoin, upside to bitcoin was amazing as far as price, now its coming down, leveling it off and evening it out and continue to do so. Stuart all right, we hear you, thanks very much for joining us, scott, the dow down 58 points. I want to bring in peter muaricie, peter, we are told that stocks are down because Interest Rates are up and Interest Rates are up because the economy looks real strong Going Forward, all right, how strong is this economy, youre an economist . The economy is in, indeed, very strong and even higher profits in the future, the fundamentals under the market were strong or solid before the pullback and remained solid, so longterm, i think, stocks will continue to rise, this is just a normal cyclist stock prices. Stuart i thought the baseline was how much money it was going to make in profit for the future and profits look to be good in the future, youre basing forecast on Strong Economy and absolutely. We were well below where we were in the end of 2007 and historic average of 25. Whats more it is a mistake and the market is making a mistake, its thinking that its the chatter on the floor that inflation is coming. Its doing that normalize rates not because it sees imminent threat of inflation. Let me point out that wages hit a peak point, thats no source for alarm. Even obama era productivity growth at 1 a year leaves a net gain in wages of 1. 9 consistent with the feds target of 2 . We have every reason to believe that with the tax cut we are going to get more productivity growth because people are going to invest more in technology. Hence, the technology will do better, productivity will do better, inflation will stay at bay and we are not looking at high real Interest Rates for a number of reasons. This board is on superstition whats going on. Stuart im sure you saw it, the Federal Reserve back in atlanta said the First Quarter would register 5. 4 growth annually. 5. 4 , what do you make of that . I think thats way too high. Its based oh on very limited data for the First Quarter. I will say this about the First Quarter, normally we expect a pullback in the First Quarter and it has to do with problems in the seasonal adjustment factors but 200,000 jobs in january would indicate that the economy continues at a fairly robust pace along the lines set during the last three quarters. A growth rate in the Third Quarter of 2. 6 to 3 would be great given that it is a First Quarter. And my feeling is we are likely to get that, so the economy sounds putting the tax cuts taking hold and deregulation just like conservatives to wells fargo. Look what they did with wells fargo. They are not throwing out the book the way my conservative pundits would like, they are rewriting, trimming it down, making regulations work so they protect consumers, create a competitive work business space, create the basis for competition but dont overwhelm the businesses with too much paperwork and when someone steps out the line and you whack them across the floor with a 2 by 4, as far as im concerned given with what wells fargo did to innocent folks, they are getting a portion of what they deserve. Stuart all right, peter, you still have a job back at the university which is absolutely incredible. Amazing. Stuart amazing, you have tenure. Thanks, peter. Eagles. Stuart Democratic National committee running very low on money, the dnc reportedly has more than 6 million worth of debt, theyve got only 6 and a half million of cash. You think the base would be fired to get rid of trump but apparently not ponying up the money. How about the price of gold . Turmoil in bitcoin and stocks, where is gold . Virtually unchanged. How about the price of oil, still around 64. 96. Thats where it is right now. We have a jampacked hour ahead for you. John cox, buy a tv ad, its on your screen right now. Something to do with sheep and pigs, he will join us shortly, by the way. [laughter] stuart we are joined by former reagan economic adviser martin, he said on this program, stocks were headed for a fall, well, he is back. Nfl legend is with us, i say last night showed true patriotism at the super bowl, no anthem protest, does he think profootball, the nfl redeemed itself . Did they . President trump going to ohio later. Hes promoting the tax plan at a company that is giving bonuses. We will head to the white house. I want to know are we getting a second leg on tax cuts . Stuart after nearly a hundred years in business, the envelope maker, well, they are bankrupt. Its a connecticutbased economy and has a billion dollars worth of debt. They say fewer people and businesses are mailing letters and that is very true. All right, the super bowl, i say patriotism was on full display last night. Every Single Player stood for the anthem. Super bowl winning quarterback joe, the man, the legend is with us, all right, joe. As i was watching it seemed to me that maybe football redeemed itself after a nasty season, what do you say . Well, i think theres so much further to go from a redemption standpoint. I think the National Football league, the players, the communities have all made Great Strides Going Forward to try and deal with a lot of the issues that have been brought to light but certainly the spectacle that we saw last night, ping was sensational when she sang national anthem. Such an honor to be on the field, they honored the man of the year when jj watt received the award, so it was an incredible display of what really the National Football league is all about but certainly theres a long way to go about things in the nation so i think the super made a great stride last night. Stuart joe responded to Justin Timberlake saying that his son will never play football. Here is what he said about that, roll tape. I have to agree with justin here, weve learned so much about brain trauma through the years, continuing to do a study, lengthy study on how to help people with brain trauma and its not just in football but everyday life, we need to find a way to help them. Stuart i have to say, joe, thats not good news for the future of the game if youngsters are not taking part in the game up to the age of 14. I think you have a real problem, what say you . Well, we have seen a decline in enrollment when it comes to youth football but if i had a son that was young, justins is 2, we dont know what itll like 5 to 10 years from now, an age where you start 10, 12 years old. Maybe 6 or 7 is a little too young. I believe that theres technologies available to researching. Theres also teaching ways that coaches will give them an opportunity to learn how to do it properly, not to put themselves at risk, joe has dont a fantastic job, with the institute as far as Research Goes and tbi is certainly an issue. The world of football teaches young men and young ladies so many wonderful things dealing with society and i would hate everybody to walk away from it because, yes, theres an issue, but like i said through technology and teaching, we can continue to make the game safer. Stuart okay, you played college ball in notre dame. Im sure youre aware that Max Kellerman said they should get rid of irish mascot, your reaction, sir . Thats Max Kellermans opinion. Everybody has an opinion about something it seems like and obviously if you have a voice on television, people are going to hear it. Im proud to be a notre dame fighting irish. For me, i think they should keep it. I really do. Hey, i look at this way, if you dont like the red skin name, talk to native americans and see how they feel. If you dont like the fighting irish, find irishmen and have good conversation with them. Stuart okay. You use today watch this program fairly regularly. Im assuming you still do, so are you buying this stock market dip . I am. As a matter of fact, i feel like its a little bit longtime coming. Im glad its here. This market needed to take a breath. It need today step back a little bit and evaluate what we are looking at. The numbers were good in the last quarter, we are starting to see different stocks settle in a little bit. I think people are starting to digest what can be Going Forward and we will have resurgence going back. Stuart forget football. Youre good. I like the financials Going Forward, i think the Interest Rates are going up. Banks have been sitting on low Interest Rates forever. This is an opportunity to go in and buy some of the financials. They have been down over the last six or seven years and continue to give out free money, this is an opportunity for them to make it. Stuart that should have been my first question. Forget the super bowl and redemption. [laughter] stuart come back soon, i want to talk the stock market with Joe Theismann im moving on fast, appreciate it. Good to see you. Stuart give me big tech names, please, we share them all of the time, we have. Apple by the way is up 1 and a half percent, thats the biggest gainer of all the dow 30 stocks. Who would have thought . Here is the big loser, bitcoin they are way down this morning, just about only 7,435 per coin. Still on bitcoin, listen to this. A 19yearold young man eric is from idaho, the young man on the screen, he made millions from bitcoin and he got in when he was only 12. What . Stuart we have that story for you. Oh, yeah, we have that one for you. Would you live in a 3d printed house, these are the first images of the house that will be built in tennessee this year. We cover it all. Much more varney after this. Gorgeous. Ashley wow. We use our phones and computers the same way these days. So why do we pay to have a phone connected when were already paying for internet . Shouldnt it all just be one thing . Thats why Xfinity Mobile comes with your internet. You can get 5 lines of talk and text included at no extra cost. So all you pay for is data. Choose by the gig or unlimited. And now, get a 200 prepaid card when you buy an iphone. Its a new kind of network designed to save you money. Call, visit, or go to xfnitymobile. Com. Stuart and youre going to get into the hall of fame, you know why, because you appeared on the program. Thats why. [laughter] stuart well, that was guess what newly minted hall of Famer Terrell owens. He got into the hall on the third try. Eighth in nfl history with nearly 1100 receptions and second in receiving yards long overdue, young man, congress layings to you. Check this one out. This is a good one. A teenager in idaho made millions off of bitcoin, his name is eric finman, 19 years old, bought a thousand bucks of bitcoin, hell made about 6 million. Even though the price of bitcoin has plummeted he says hes still bullish, he will be on the show tomorrow at 11 45 a. M. Eastern time. That young man on the program. Look at the pictures from venice, italy, canals are dries out. Third straight winter this has happened. We will see about that. In tennessee, a design firm plans to use a 3d printer to build a home, these are concept images of what it looked like, it would be coming up in chattanooga, 28 panels off site using a 3d printer, together on site to create two external walls, no word on how much its going to cost or who will be moving in. The navy is going to start using a selfdriving warship, 132 feet long, two diesel engines, will be used to hunt down enemy subs, can travel thousands of miles, at least initially itll be used for surveillance, it does not have weapons on board yet. Stocks were headed for a fall, well, hes back today. President trump heads to ohio, hes promoting the tax plan and a company thats giving bonuses, we will head to the white house because i want to know are we getting a second leg up on tax cuts, more to come, check that big board, now we are down 63, please, we were down 350, we will be back. Copd makes it hard to breathe. So to breathe better, i go with anoro. 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Not anymore, Td Ameritrade lets you trade select securities 24 hours a day, five days a week. Thats amazing. Its a pretty big deal. So i can trade all night long . All night long. Is that Lionel Richie . Lets reopen the market. Mr. Richie, would you ring the 24 5 bell . Sure can, jim. Trade 24 5, only with Td Ameritrade. Stuart President Trump goes to ohio, hes going to promote, we believe the tax plan. Mercedes schlapp, the White House Senior Communications adviser, mercedes, welcome back to Varney Company, always great to see you again. Great to see you, stuart. Stuart hes going to pound tax plan, correct . A huge story to tell under President Trumps leadership, this historic tax cut is representing over 8 billion worth of tax cuts for families in ohio alone. What we have seen with these companies, norris, ceo, gave bonuses of thousand dollars to employees and sharing stories about a single parent didnt know how he was going pay for childrens expenses, he received that bonus, you have tails of other individuals breaking down in tears because they have the extra money. Extra money, thats what the democrats call crumbs, so i think its very telling of where we are right now which is that of real wage growth, real strong economic numbers that we are seeing and real impact on American Families. Well, mercedes, its also telling where the president is going and who hes chasing down, last week Vice President pence went after right joe manchin from west virginia, democratic in the senate, today President Trump goes to ohio, i dare say hes taking a shot at brown, very Leftwing Democrat in the senate. Hes taking it to his opponents onto their home turf, isnt he . Lets remember that it was during the state of the union that the democrats just sat there and couldnt even applaud for the huge success that we are seeing in our economy. I mean, these are real results, stuart, youve been obviously covering this for decades to watch the economy from the standpoint of the [laughter] im saying from the fact that youre very wise, okay. [laughter] so from unemployment numbers being the lowest that we have seen in a very long time, real wage increases that were stagnated for over eight years, the job gains that we are seeing are broad base, lets remember that it was president obama who said that when you looked at manufacturing numbers they were in the negative. Now with President Trump manufacturing is coming back strong. This is very telling of the fact that we are seeing this growth and this ability to bring jobs back to america really impacting the American Worker in so many of the communities that for so long have been left behind. Stuart last week President Trump hinted that hed like a second phase of the tax cuts and gary cohn told us on this program that maybe you guys want to make the individual tax cut permanent, what can you tell us about that . Well, i think President Trump would entertain the idea of having the tax cuts permanent. We have seen the results so far, many of these results being very surprising in a positive way where companies have reacted in such a way where they have given bonuses and raises to their employees, the fact that youre having, you know, economic fundamentals are so strong right now. Its very telling of the direction of where this country is going from an economic standpoint. With that being said, itll be interesting to see what the democrats in congress would decide. Are they going continue to resist, are they going to continue to basically say we are going take away the tax cuts from the american family, it sounds to me that they are more bitter and they dont understand that the real way to grow the economy is with the mix of deregulation, tax cuts and infrastructure which is one of the president s priors for this year. Stuart President Trump was big on touting the stock market as it kept on climbing, well now over the past week its dropping 4 to 5 . Whats he saying about it now . Clearly we are concerned about any setbacks from the stock market. The fundamentals are strong. You understand how the stock market works, it has cycles and trends, we are still in a bull market, we feel strongly that the obviously stock market we have seen has gained 7,000 points under the trump administration. Its time, so, again, we are in a good strong fundamental position from the economys economic standpoint and you know how it works with the stock market. A series of cycles. Stuart i do. By the way i have been doing this for a nearly half century. There you go. [laughter] we are glad that you do what you do, stuart. Stuart mercedes, thanks so much, we will see you soon. Thanks a lot. The stocks are off lows of the day, we were down 350, now we are down 118 at this moment. With us dan schaffer we also have martin with us, former chair of economic advisers under president reagan. Dan, to you first, if i may, youve been predicting the big, big drop for a long, long time. Now are you going to make the case that this is it . No, this is not the big one but i do see this being the one expecting in february, maybe later part of february and recovery back to the high and then fading after april, may, remember we talked about the cycle im looking for. Right here we still have a lot more room for 23,800 on the dow. Thats what i measure on this. Stuart this particular dow will take us to high 23,000s . Thats where i think stuart then we recover . Attempt to recover whether its a double top or we fail lower high, im not sure. The pattern for this year sets up and its following it now and id like that part of it and the leverage, and we talked about intermarket relationships, the leverage between the euro being so high and bullish gold, bullish crude oil, if that starts to unwind itll affect the stock market. Stuart you had famous article in the wall street journal, i think it was, you expected stocks to drop, all right, we have dropped 4 roughly, 5 . Do you expect them to drop some more . Yes, im not saying when but i think the argument i made in the article and that you and i talked about in your program was that price earnings ratio were way out of line. I think i said at the time it was 70 higher than the historic average and now 65 higher. So still a lot of room to correct. Stuart but profitability, i mean, thats the bedrock for stock prices. We agree. Stuart you did. Profitability is going up. American corporations are doing very, very well and the latest profit report are almost spectacular, doesnt that give us a new relationship between stock market and stock prices . I dont think so, even if you correct whats going to happen to earnings in the coming year, they are still extremely high. Stuart so what do we have to come down to just give me a dow level that it has to come down to to get back to historical norms . So get back to historic norms, they have to fall about a third. Stuart a third . Youre talking about coming back to 16, 17,000 maybe. Could be. Stuart thats remarkable drop. Youre a famous guy. Im not predicting it. To answer your specific question, what would it take to get back to historic norms if its now 65 above the historic norms, you got to get back by 65 over 165, thats about a third. Okay, i hear you, hold on one second, back to the super bear here. Martin, famous guy says down about a third from where we are now. No disagreement. Even because the economy does grow the way everybody is expecting it based on the tax thing, the market has already priced it in. They have to have another trick pony to move the market higher. Hes right on the money on the price ratio and also limit today a very select group of stocks. The internals are kind of rolling over. Theres more stocks declining and then rising in the current cycle right here in the last five days. Thats a dangerous sign. So if you concentrate with the dow and concentrate with the s p, that starts to unwind because those expectations drop, those stocks are going to come down and we saw how fast they came down friday. Stuart okay, martin, last word, see what you did, the market is down 136 points. [laughter] i dont think i did whats doing it is Interest Rates. Not just because its stronger growth, not because the fed is going to do anything unexpected, but they are taking rates up, they are taking bonds down, we have a large deficit, all of that is going to push up long range and we have seen 285 now, has a long way to go and as it goes, thats going to put pressure on i equities. Stuart we are out of time, appreciate you being here. How about this one, im not sure i really follow this properly, High School Students in new mexico maybe forced to apply for college. A new bill would make it mandatory for Public School juniors to apply to one or two 4year College Parents and counselors will approve. You will stay in education no matter what and cant get a job, ridiculous. You dont think thats ridiculous . No, too many bright kids get out of high school and they dont know what to do and so this says either you get training or you go to college or you go to a twoyear college. I got out of high school and i didnt know what i was going to do and traveled the world for four years, whats wrong with that . Not everybody can do that. Stuart thank you, martin. Thank you very much, indeed. You know what we just did, thats martin, now to california, democrats proposing all kinds of liberal policies, i wonder if martin approves. We will talk to one of the California Republican governortorial candidate. Hes next. Do i see pigs, i do, stay right here in Varney Company. And tank. And tiny. And this is lauras mobile dog grooming palace. Laura can clean up a retriever that rolled in foxtails, but shes not much on articles of organization. Articles of what . So, she turned to legalzoom. They helped me out. She means we helped with her llc, trademark, and a lot of other legal stuff thats a part of running a business. So laura can get back to the dogs. Would you sit still . This is lauras mobile dog grooming palace and this is where life meets legal. Show of hands. 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Will you say no, taking a look at airlines today, they to the downside, theyve been mixed over the last 52 weeks with the rise in oil prices does put a squeeze on airline costs, in fact, accounts for 30 of the airlines costs. And oil has risen to 68 a barrel. Today 64. 88 the barrel down slightly today but big picture, you see its on the rise. The question is are tourists going to say no, are the hedging programs that have been put in place to digest fuel moving higher for the airlines enough to stop the airlines from raising . Nking about opening your own shop . Every day. I think there are some ways to help keep you on track, closer to home. We grew to a trillion dollars in assets under care by thinking about your goals as much as you do. When it comes to travel, i sweat the details. Late checkout. Downalternative pillows. And of course, price. Tripadvisor helps you book a. Hotel without breaking a sweat. Because we now instantly. Search over 200 booking sites. To find you the lowest price. On the hotel you want. Dont sweat your booking. Tripadvisor. The latest reviews. The lowest prices. Hi, im the internet you knoarmless bowling. Lt . Ahhhhhhhh you know whats easy . Building your website with godaddy. Get your domain today and get a free trial of gocentral. Build a better website in under an hour. Stuart President Trump shortly will head to ohio and promote tax plan and speak at a manufacturing facility near cincinnati before this afternoon. If he says anything before going to marine one, we will bring it to you. The number of streets in la have surged 75 . 65,000 people on the streets or in shelters right now. La has more Homeless People than any other city in the united states. Staying in california, democrats proposing all liberal policies and democrat will likely win the governors race this november meaning the state will move even further to the left. John cox is with us, republican candidate for governor in california, john, this is an opportunity for you, but its going to be awfully tough for you to overcome the coalition of hispanic, environmental people, black voters and women. Thats a powerful constituency against you. I will have to take issue with the idea that a democrat is going to win, i think the people in california realize that this state is really unaffordable now. The cost of housing, water, gasoline, health care, the roads are lousy, the Education System is one of the worst in the country, i mean, you know, the nice thing, stuart, is that the far Left Legislature fueled by the farleft governor candidate who i am running against keep doing stupid things like making straws illegals and distract from the cost of living here. I think people have had enough, they have relatives in florida and texas who are paying a fraction of what they do in rent and they are wondering why they are going to stay in the state. I think the people of california are going to decide to change direction, i slightly disagree with you on the chances i have. Stuart okay, youre the first candidate to buy a tv ad, you created tv ad for the governors race. I want our viewers to take a look at it, please. Roll tape. Every legislative legislation, special interest lobbyists head to sacramento. They roam corridors and sticking it and special interest at all, ready to clean out the barn, join john cox because he has a plan to deal with the corrupting influences, special interests. Conservative republican john cox for governor in 2018. Stuart thats a nice ad, democrat is way ahead of you in fundraising, thats a problem, isnt cincinnati. No, you talk to governor whitman, you have to have a message, stuart, even nusam has said that democrats will have to take ownership for the mess in california. This is a wonderful state, i love living out here. We have the best weather in the world. Weve got the most Natural Beauty and the democrats have just mismanaged the state into near poverty, people have to work two and three jobs just to afford to live out here, the sun doesnt really matter much in youre stuck in traffic, if youre paying so much money for gas and housing and everything that you have to work two or three jobs. Stuart okay, okay. Look, i think youve got uphill struggle because of the constituency groups that are lined up against you that wouldnt dream for voting for a republican. I like the challenge. I like the challenge, stuart. Stuart john, thank you very much for being was, come back again soon. We want to keep in step with the race. Thank you. Stuart check the big board, we are back down again, we are down nearly 200 points as we speak. Yeah, down 200 exactly. We started out down 350. Struggled back to a tinny gain, now we are back down close on 200 points. Now that the memo is out, another one may follow, one about the state department, could that be bad for Hillary Clinton, former secretary of state . The judge is next on that. Stuart on your screens now is what we call an intraday chart, that tells you how choppy the stock Market Action has been, we opened up with loss of 350 points then as you could see we spiked up to just about positive, then we started to come back down again and at the moment we are off 182 points. Looks to me like there are some people who bought the dip, pushed stock Prices Higher when they got higher they sold the rally, down. Lets get to the release of the memo. Devin nunez suggest as another memo about the state department could be released. Could that be bad for Hillary Clinton . Judge napolitano is here to weigh in on that one. What do you say. The short answer depends who is feeding information to whom. The criminal referral that senator grassley chair of the Judiciary Committee and senator lindsey graham, chair on subcommittee on the constitution made to the doj. Nonredacted portions of it said clintons were financing Christopher Steele, clintons directly, not the dnc but the clintons. Stuart the clintons directly . That is a big deal. Yes it is. When did this happen . I think it left happened after she left the state department. I think the memo about the state department, which is obama state department, one under john kerry. Doesnt mean it is about her. Doesnt mean she was involved in it. I dont think she was secretary of state at the time. Stuart i dont think people can keep track of all these moving parts. Tell me about it. I get paid to keep track of it and i cant keep track of it. Stuart when you tell me the senator grassley the unearthed idea that clintons themselves, not the dnc, but the clintons paid for dossier. I read it. It doesnt have a first name. It says the clintons. It doesnt say the dnc. It could mean one much their entities or them. Stuart that is alltime dirty trick. Is it legal . Here is the basis for the criminal referral. He denied certain things under oath, Christopher Steele. And those denials are defineed by records that the senate Judiciary Committee sent to the doj. He was interviewed in london by fbi in london. Made his denials in london, washington, d. C. They dee dee niles. They see records contradicting of denials. They accuse him of lying. That is where it is. Does the fbi and doj want to prosecute him for denying in london. Stuart thanks for keeping track. There are multitudes. Thank you very much. Stuart there will be more varney after this. But when your psoriasis is bad, does it ever get in the way . Embrace the chance of 100 clear skin with taltz. Taltz is proven to help people with moderate to severe psoriasis achieve completely clear skin. With taltz, up to 90 of patients had a significant improvement of their psoriasis plaques. In fact, 4 out of 10 even achieved completely clear skin. Dont use if youre allergic to taltz. Before starting, you should be checked for tuberculosis. Taltz may increase risk of infections and lower your ability to fight them. Tell your doctor if you have an infection or have symptoms, or if youve received a vaccine or plan to. Inflammatory bowel disease can happen with taltz, including worsening of symptoms. Serious allergic reactions can occur. Ready for a chance at 100 clear skin . Ask your doctor about taltz today. And go to taltz. Com to learn how to pay as little as 5 a month. Stuart the whole basis of todays Market Action is, what are we going to done at market after last weeks 4 selloff . Will we sell more or bounce back . You buy the dip or sell into the rally that results . Answer, all of the above. We opened down 350. We came back a little bit. Now were selling off again. Were off nearly, what, 140 points. That is the way it is, neil. It is yours. Neil you know, stuart, im sorry i couldnt make it to your super bowl party, by the way. Stuart it lasted ten minutes. Neil right. You did invite me, right . Stuart of course, neil. Neil of course. I bought cannolis just for you. Neil thats fine. Thats fine. I had Little Finger sandwiches for you. [laughter]. Apparently it was a very big game last night. Holy toledo. Thank you very much, my friend. Were on top of these markets. Whipsawing a lot. He have one confused here. Were more down than we were up a little while ago when we almost broken even after being down as stuart indicated more than 350 points. A lot of this has to do with good economic news,