Transcripts For FBC Varney Company 20140131

Here we go. Varney on friday, about to begin. What if a Small Company became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology stead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. Theres nothing like eing your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. Oh, yeah, powerful, motivati motivating. Stuart yes, yes, do not change channels, you are watching Varney Company on the fox business network. And thats exercise guru Richard Simmons dancing in an outreach video made by the california obamacare exchange. Its called covered california. Guess how much you, the taxpayer, spent on the video . Ill tell you, look at it, 1. 3 million dollars. Remember, the california is facing a 78 million obamacare budget shortfall, all of that spent on obamacare videos. Using celebrities, trying to get people to sign up, please. Its not working. Look at this, a new Keiser Family Foundation survey, 47 of the uninsured, repeat, the uninsured, they view obamacare negatively. Thats right, people that are supposed to help the most, people without insurance, they dont like it. 24 thats all theyve gott 24 of the uninsured view obamacare favorably. Remember, the kaiser Family Foundation has generally been favorably disposed to obamacare. Another day, another cruiseship full of sick passengers, this time the Princess Cruises caribbean princess. Reported to houston with about 162 people out of the 3000 passenger list. 11 crew members also getting some symptoms. And dont forget, the Royal Caribbean, what was it again, the Royal Caribbean ship explorer of the sea, that today is headed back out on another trip. Theyve spent 24 hours cleaning it down and swabbing it so to speak, its out and sailing out of port today and theyve got people to sail in it. Lets get serious, were looking at a very big down day at the opening bell this morning and dow futures down triple digits, frankly. Not sure i understand the connection between european deflation and our stock selloff. Were going to get to the bottom of it. Weve got an allstar lineup and watch what happens. Well figure it out after this. [ male announcer ] e new new york is open. Open to innovation. Open ambition. Open to boldids. Thats why n york has a new plan dozens oacross the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and ows more businesses. Were open to it. 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Im fit to be tied. I dont get it. I dont get it we were told if the whole world prints up a ton of money we would get inflation. Now were told that the market here is going to go down because of deflation in europe. You want to sort this out for me . Well, i dont know if i can sort it out exactly, stuart, but ill say this, the deflation situation is extremely bad. Theyre looking for 2 inflation and theyve got is. 08 number there. The not close to what theyre expecting or looking for there. The markets have taken a hit because of that. Because of the situation with the fed. A whole bunch of stuff, you know, kind of tied together and were going to be 15 points lower on the s p, and weve been lower quite bit the last few days and more downdraft and selling here. Stuart larry, thank you very much indeed. Im going to turn to liz macdonald. Joblessness, 12 jobless rate in the euro zone. People are out of work and 10 of the s p 500 revenue comes from the euro zone, ge, mcdonalds, cocacola. Stuart weve known for a long time that europe has been a mess, but suddenly . The eu was strengthening the past year or so, im just saying that these the multinationals have exclusion to the euro zone. Stuart you sound like my daughter, im just saying, dad. Were looking for the dow to drop maybe up to 200 points in the very early going. All right. The down side trend is established. Were down 40 after 30 seconds. Look at it, down 53. I just want to hold this for a second and watch this thing go down because you know, now were down 90. Watch it, watch those losses pile up. While youre doing that, let me turn to a couple of individual stocks, ive got amazon on my mind, yes, it it made less money. It made money, but the point is, it made less than analysts were expecting. Down 8. 6 . 368. 19. It was a crucial holiday period and we know amazon sells a ton, however, theyre talking about a possible operating loss this quarter as shipping costs decline and even now, to cover the rise of fuel, costs may be considering, now, that 79 prime that everybody signed up for, they may be considering a 20 to 40 increase on that. Stuart okay, so its down 8 , you dont often see a Huge Technology stock drop like that. The other side of the coin is google. They have what, strong advertising growth . I guess the stock is up. Nicole going gaga for google. Beat the all time record high. And its up 2 and they talk about pressure and competition and et cetera, et cetera, but the cheap business offices say the Holiday Season made one thing very clear, the web has truly become the new Holiday Store window. Stuart they certainly got that one right. Now look the at the big board for a second because the futures did correctly point out a big loss at the opening bell. Were off 170 points. That, by the way, puts the dow at 15,600. 156. I remember when we were i think we were at or close to 166 not that long ago. Were down about a thousand points, roughly speaking. And veteran microsoft executive Satya Nadella to replace. And i own microsoft. Yahoo said in a blog post. Yahoo mail the target of a cyber attack, trying to log in with stolen passwords and they reset the passwords for those people. And the stock of the morning thus far. Michael robertson is here from San Francisco and so is liz. Im calling this the apple effect. The analysts dont have their expectations met and the stock gets killed. What do you think of amazon at, say, 350 a share . Can iitake out a second mortgage on my home to buy more . Thats a great price for amazon. Its an excellent company. Stuart, you hit the nail on the head. Im not sure that wall streets expectations were in alignment with realiiy. A little bit of a tough quarter with a shipping problem, with ups at the end. What no one is talking about, they had a 53 increase in the division that includes cloud sales to more than 1. 2 billion dollars, which is enormous and thats a very high margin business. Overall, i think its a pretty good report. Stuart okay, i want to ask you about apple because i know youve still got 1,000 target. Ill get to that in a second and let me deal with microsoft for a moment. Theyre looking at an insider for the top spot. You say thats a bad idea . I do, its very, very difficult. He when i was a young analyst in detroit i was lucky enough to sit at the same dinner table with lee iacocca and asked him a lot of questions, hed cleaned house at chrysler. What he said was, its very difficult for someone on the inside to come in and turn around a company. Microsoft has great margins and generate a lot of cash, but theyve lost the Leadership Edge in a lot of areas and i see it very difficult for somebody whos been in that environment for more than 20 years to really change the direction. The other thing, stuart,s this signals to me, they cant find an outside candidate who feels confident with the board dynamics to come in and put their own stamp on the company. Stuart do you know that for a its going to be very, very difficult for somebody to do, a lot of pressure. Stuart michael, ive given you ten seconds to bring us uptodate on your target of 1,000 a share for apple. Is that still your call . T. I havent changed it. I want to see what happened with the 5 c in the current quarter, but right now dont see a reason to change it, stuart. Stuart and break away for some stocks. Walmart, look at that, cuts its outlook. How bad is the stock performing . Nicole its big deal. Right now the stock is down 1 , but walmart, obviously, a huge company and they are cutting their full year numbers, lowering the low end of the forecast, and these are the costs of being a global company. Theyre saying that they had to chose about 50 stores in brazil and china and they also had some fees with franchises and supply agreements and right here at home, sams club restructuring in the United States and overall theyre cutting their numbers and the stock is reflecting that. Stuart weve got that. Were going to leave this now and down almost 200 points and the futures got it right this morning. 156 is where we are. Turn to the broader economy and bring in Michelle Gerard from stanford. Michelle, whats this about deflation in europe sending our stock market down . I dont get the connection. And frankly, im tired of those people over there hurting us over here. Now, smile, you always do, go. [laughter] you know, stuart, i have to say theres been a lot of concern about disinflation in the yir zoyir euro zone for a while and it keeps spilling back to the u. S. Because weve actually seen inflation move a bit lower this year and so people think that we may suffer the same kind of target to inflation thats so much concern in europe. I have to say we have pushed back on that, not that weve been having inflation going so much higher here, but the situation is very different. Here in the u. S. , specifically we have things going on. Particularly like in the medical care area. Where weve actually seen surprisingly low numbers and some of thats tied to like the sequester and reimbursement and so many different things. But the bottom line is that we actually, having dug very deeply into it, dont think a lot of the trends will continue. So i guess the point is were not worried here about disinflation, deflation, and i just, i think that some of that concern that does spill over is not warranted. Stuart okay. Im just surprised because ive been told for a couple of years now, when the fed prints up a storm and they have done exactly that, we would get inflation. And so some are talking about deflation. Stuart, the truth of the matter is, thattis the case. And all of this money printing should lead to higher inflation and faster growth and thats obviously not happening, but i think the thing is, in terms of what kind of inflation . You know, were so used to thinking it should be in the imported inflation measures like the price index. But the truth is in recent years when weve seen fed accommodation, even talking the last decade, it hasnt shown up in consumer prices, obviously, that liquidity has found its way into assets, whether its stocks or housing and so some of the people say, with the fed targeting inflation, thats not where all of this accommodation is ultimately going to show itself. Stuart okay. When you have disinflation, conditions cant make earnings off higher prices. We have 4 trillion in extra money printing from ecb, bank of england and bank of japan and the federal reserve. When they get off the federal bank dialysis machine you see who is papered offer by money printing. Dont forget we have a weak, still relatively soft overseas demand environment. Its hard for companies to raise prices without the economy doing well. Stuart were feeling it. Look at this, now were down 207 precisely, 15, 639. The vicepresident of the nfl, why football is the financial king of the United States sports. 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Yo risks and capture opportunities. We enable you to reach global marke and drive forward with broader possibilities. Cme group how the world advances. Look at this, were no longer down 200 points, 200 points, there we are go. Were told there are problems with deflation in europe and might wash over here. If prices are stable or going down, corporations cannot make that much more money, therefore, our stock market goes down. Did i get that right . I think you did. I think an explanation . These are the stocks, 28 are down in the red and two are up. I cant squint enough to see which ones. Me either, it looks like microsoft and caterpillar. Stuart got it the only two winners on the dow. When the dow is down 200, what happens to the price of gold . Lets have a look, shall we . The price of gold is up 10, 1252. All right. Two days to the big game. About a third of the country will be watching the super bowl on fox, by the way. Eric is back, the executive vicepresident of the nfl and im calling the nfl the financial king of american sport. I guess this is congratulations, eric . Oh, this is theres no way i did this. No way this is congratulations. Stuart and ive lived in america for 40 years, ive seen all of these super bowls all the way back to 1972. I cant ever remember when any super bowl dominated the scene quite like this one has and football itself has dominated sports the way football does today. Stuart well, were in new york and so its in new jersey, new york area, so it feels like that, but also, the super bowl gets bigger every year. Theres more going on. Theres something more to it than that. The American Public loves football. Increasingly they love it and i think its because they like controlled violence, a controlled warfare with a set of rules and they we love it. I agree with part of it, which is a set of rules. I agree with the little part of, i dont call it controlled violence, we dont look at it as controlled violence. But theres certainly no doubt that these athletes are super human and they are incredibly focused. Its incredibly hard to get where they are and then the whole thing comes together and in a way that is straegized to the end of the earth. Stuart yeah. And then choreographed from the standpoint of their athleticism, each of them working together. Its just a marvel. Whether you skateboarded or played a team sport, for all of that to come together, it is incredible. Stuart youre doing well. Congratulations. Its not me. Stuart wait a second. Its not over. Stuart there are moves afoot, as they say, to make football safer, to make the hits less crunching. If you do that, and its perceived as a slightly softer game, can you still stay at the pinnacle . Well, it remains to be seen we stay at the pinnacle. Stuart you have to say yes. National Football League for over 70 years has been making the game safer, making the game better. Those two things go hand in hand. Anyone who says that football today is not as tough as what it was 20, 30, 40 years ago simply doesnt to what theyre talking about and hasnt been on the field of today. Stuart can you prove that statistic . I can prove it with a picture of my father in the Office Playing in the 40s in a leather helmet. We didnt change the helmet to make the game more violent, the helmet it wasnt changed, the pads werent changed, the cleats werent changed to make it more violent, it was made those changes were made over decades and continue to be made. Stuart take your paint, but there are people who follow rugby, where theres no padding, no helmets, none of the protection for the players, the hits are pretty strong, but you dont have the same level of injury in rugby, even though you dont have the padding and therr are those people who say, the therefore take away the padding and the helmets and maybe youll actually make football safer. Well, stuart, ive played both sports. Stuart you did, you played rugby . Yes, my sons play both sports, rugby is a wonderful sport. I dont have the statistics about rugbys injuries, i know there are probably quite number of them. Rugby is talking to the national Football League about our protocols and asking how our protocols could be applied to rugby. They would not do that if they didnt think that we were onto something. Stuart fair point. Eric, im afraid im out of time and i know youre busy because its super bowl week. Youre aware of the nfl cuff links youve had for a couple of years . Im not allowed to wear gifts. Even with our network, fox . Eric, i want to say congratulations, because i cant remember a super bowl thats dominated the scene quite like this one has and i think youve had a lot to do with its making. Charles please pass it on to the staff and the clubs. Stuart youre the executive vicepresident of the nfl. Im one of them. A lot of people have worked for decades. Stuart isnt there only one executive . No, no a number of them, we can replace me anytime. Stuart they wont. Good to see you, sir. Thanks. Check the big board again, please. Now were down a mere 191 points. Im not being sarcastic, im saying we were down over 220 and now its 191 to the down side. And this is the last day of january and were on the way to the dows worst performing month since february of 2009. All right . Weve got more on that after this. Here is a big name, you know it, holiday maker disappointing for mattel. Down it goes 10 . Do people buy toys or electronics for the kids . Good question. Check the share price of chipotle. Hitting a new high. Charles payne will take a victory lap on that in a few minutes. And my take, next hour, the real victims of obamacare are real people, cancer patients, tragic stories, real people, thats the point, theyre the victims. My take 10 25. Now this. Today at the white house, president obama is going to meet some of the top ceos who have pledged not to discriminate against the longterm unemployed when hiring. All right, liz. Thats a bridge not too discriminate. Its not a place to get out and hire them. Theres a difference. Theres a difference. Youre talking, walmart, apple ford, visa, at t, j. P. Morgan chase. Whats happening, there are three times the number of longterm unemployed right now than prerecession level. Out of work six months or longer, its a promise, its nonbinding, to not discriminate against the longterm unemployed and weve seen the summit in 2012, the white house ceo summit. It puts the companies in an awkward position basically questioning whether they did have bias in the past, its awkward. Its actionable. Check the big board again, thats the story of the day, were down and told that theres fears of deflation in europe and thats sending our markets lower and i dont believe its all that, but were down 181. New at 10 00, 43 obamacare navigators in california are convicted felons and theyre one click away from stealing your information. We have reporters who broke the story top of the hour. Yes, its super bowl weekend, biggest sporting event in the country, possibly the world. We asked one nfl star, why is he risking his health for a big paycheck . Because hes getting a big paycheck of course. All that is next. Football is coming on tonight are you ready, are you ready are you really, ready . Are you ready for some football what we werentway told that a the print of money would lead to inflation . Our stocks are tumbling and we have a lot of of opinion and youll get a lot today. Look at this, in california 43 obamacare navigators have criminal records, some convicted of financial crimes. How do you feel about that . We have a Climate Change guy who says its our fault and we should pay. How do you feel about that . Well bring in the europeans what do they know about football and who are they betting on for the super bowl . Were not done. Wait until you find out what the epa is going to do without invention from congress. One more, brendan oiken, a rookie starting out. How does he feel about concussion . Monica is here and charles is here. Youve got to see our second hour. Hour. Oh, its friday morning and look at that, down 195 points, Charles Payne is here, youve got a simple explanation . Oh, no. Stuart well, youve got a limited amount of time, get on with it. Charles ill go with that. Overnight we had the Inflation Numbers and we should say disInflation Numbers out of europe. A lot of people worry about fed printing money and its the worst thing that could happen to an economy is deflation. It wasnt inflation, its deflation, businesses dont hire, people dont spend. It goes around and around. Stuart explain why our stock market in the United States of america is down so much, almost at 200 points because theyve got maybe a hint of deflation . Here is the irony of it all. We started the week with inflation and currency crisis in emerging markets and now we end the week with deflation and the Old School European countries and these are our trading partners, these are people we do business with. Ill tell you something thats interesting thats masked by all of this. Very, very good news, or numbers overall for america, from earnings and from the numbers themselves. America may be the bright spot in 2014far. Stuart all right, well, hold that thought, charles, because thats a bright spot and we like that. Yeah, another bright spot for you, weve got solid numbers from the Telecom Equipment maker jds uniphase. Where is the stock . Up 7 today. Its up at 13. 62 and they moved and announced acquisition of two companies, so were seeing jbs jumping. Stuart nicole, let me tell you something, about 20 years ago, maybe 15 years ago, i remember jds uniphase, before you were even born, i remember jds uniphase was worth more than General Motors and ford combined. Do you remember those days. Nicole wow. Stuart that was about 1997, 1998, somewhere around there. It fell a long way, but now its up 7 . Nicole, a History Lesson to you youngsters. Thank you very much. The exercise celebrity Richard Simmons making the rounds in a new obamacare outreach video. This one, taxpayers spent 1. 3 million on it despite californias big dollar budget shortfall. Monica crowley is here. Cant wait to hear what youre going to say about Richard Simmons. You have seen this video, actually they did a six hour live stream two weeks ago and turned it into the shorter version of this video. My big regret, i cannot see this, my eyes, my eyes the fact that the taxpayers had to fork out 1. 3 million on this kind of absurdity to sell obamacare, if the white house is correct and obamacare is this great new policy going to bring in young people which is the folks theyre trying to reach with this, then it should be able to stand on its own and attract people without these kinds of gimmicks funded by the taxpayer. Stuart do you think it will work, do you think people will sign up . No, theyre trying to reach young people, im not sure that Richard Simmons is the right character to do that. Stuart got another item from california for you. Democrat congressman henry waxman is retiring after 20 terms in the house. That will be 40 years. First to you, charles, what do you make of that . 40 years is way too long. Its ridiculous. You know. Stuart he led the charge for obamacare. Charles a lot of the architects of obamacare are fading away. Max baucus, waxman and a couple of others, but it goes to show you, this is not a career job. If people need to go there, do their time, but to stay in there 40 years is just, i think its an embarrassment. And as recently as a month ago henry waxman was saying im in, and running for reelection n2012 he nearly lost that. Californias 33rd congressman district, very left wing and almost lost last time. Theyre looking at the writing on the wall and looking at obamas poll numbers and poll numbers of obamacare, all of which are sliding fast. This is the 11th democrat to say he or she is not running for rehe election, they see the writing on the wall and theyre out. Stuart theyre dreaming, the day comes that henry waxman, they represents beverly hills, they elect a republican, or right of center. This is a changed election. Stuart how is this for obamacare headline, at least 43 convicted criminals are working as navigators in california and three of them have records of significant financial crimes. Here is jillian, you dug into it and broke the story. Thank you. Stuart i have to ask, how did you find out that 43 people have criminal records. I sent a record request to california and several other states that operated their own exchanges. And california wouldnt release a lot of records i asked for. The statistics showed 43 convicted criminals were approved to work as obamacare navigators. Stuart so they knew. They knew. Stuart they knew that they had criminal backgrounds . And their defense is dodgy, if you will. They say its important that former criminals have a chance to work in a legitimate economy. Kind of sympathetic to that, but the reason they wouldnt disclose some of the records to me is that they said, youve got to follow this train of logic, a bit skewed, i guess, that enrollment is in the Public Interest. Disclosing these records might deter enrollment so disclosing the records is not in the Public Interest. Stuart thats incredible. He they knew they were exposing potential signees to risk of Identity Theft, but its in the Public Interest to sign up so that Public Interest overrides the interest of the public to know the truth about the navigators . Exactly. Stuart and i think thats listen, they knew when they craft this had whole thing they knew who the navigators would be, people who did things like whether former acorn or planned parenthood. People who were firmly in that corner. I dont think were paying enough attention whats going on with respect to the democrats working to make felons, felons able it to vote from prison. The idea of taking away the sort of shame of being a convicted felon is being worked on all the time so i dont think they see anything wrong with this, stuart. Stuart i take your point, but jillian, i mean, what are they going to do now . Youve expose this hd this. Other than asking why you did this, what response have you got . California republicans are pushing to hold a hearing on this. Its significant, a lot of states, 31 dont hold back whatsoever for navigators. California does, and its the background check, here youve got people with repeat convictions of forgery, burglary and welfare fraud. It puts civilians at risk. And kathleen sebelius, remember a couple of months ago in front of congress she was asked point blank, is it possible to have convicted felons part of the navigator system or elsewhere in obamacare and she said, yes, i guess its possible because theres no prohibition of it in the federal law so she says states might have their own rules who theyre going to hire and so forth and oversee this, but in the federal system in terms of the law itself at the federal level theres no prohibition. Stuart what are you going to do next . Im working on getting records requests from a lot of state to figure out if there are more criminal navigators. Were suing in nevada, they didnt want to give it to me and hung up the phone on me. Stuart come back when you have answers. I will. Stuart look at the big board. Its friday morning, were down sharply, down 177. We were down over 200. I guess you can say this is a modest comeback, modest indeed. 156 is where we are. Weve got a new poll that 40 of us would steer our children away from playing football. And this is in the midst of a controversy whether the nfl is doing enough to prevent concussion. We have brandon boiken with the Philadelphia Eagles and youre in your second year of playing. Correct. Stuart youre a defensive back. I am. Stuart just starting out on this great career . I feel im a veteran now and i like to think im not just a rookie. Stuart youve never been interviewed by an englishman before and you have to explain stuff. Youre a defensive back. Yes. Stuart youre the guy who runs pell mel down the field and tries to intercept and beat up the running back trying to catch the ball, is that right . Pretty much. Stuart so you hit real hard, dont you . I like to think so even though im 59 the same. Stuart im 58 1 2,160 pounds. What about you. Pretty much the same. Stuart okay. But you do a lot of hitting. And you get hit. So, how do you feel about starting out on a career which is going to pay you very well, of course. Yes, it is, but youre taking great risk. How do you feel . I think thats the risk that you take, you know, whether youre at the youth level or the elite level of football, you know, Everybody Knows that the the risks of playing the sport and when you have a physical sport like football its going to happen. I mean, so, in my opinion i feel like, i mean, its inevitable. Its going to happen and youre going to get injured and youre going to make a lot of money, but at the same time you take the risk . Two parts on that, i loved i played football growing up. And my son never liked it. My son, goy the him to play and he got a concussion in practice and i cant tell you how guilty i felt. Its a great risk if youre going to get paid for it and your kids arent going to get paid for it as a consequence fewer are playing. And i want your opinion on that. And the nfl is making the game safer, but maybe not as fun to watch. When youre talking about the youth level, the contact with children still developing mentally and their bodies, thats not really safe. For me specifically i would like my kids maybe to play flag football or Something Like that until they turn into middle school or teenage years, but you know, the nfl like you said, are implementing a lot more rules for it to be safer. Charles that hurts your position. Pretty soon you might have to play flag football as a quarterback. Every time you touch the quarterback, a penalty or a fine, but its prolonging your career. Stuart may i express an opinion on football which is unusual for a guy with a voice like this. I dont think that the nfl will ever make it is such a safe sport, such a nonviolent sport that it takes the audience away, theyll never go that far, will they . I agree, everybody is going to watch football no matter what. Stuart but only if theres controlled violence. If its like warfare with rules. Youre right. Stuart and theyll only watch you if youre a gladiator and thats what you are. Yeah, every sunday youre a gladiator. As long as theyre keeping everybody safe, i think the injuries and concussions, things like i said are going to happen, but for the most part peoples careers are prolonged. Stuart have you ever played for the broncos or the seahawks . Video gamewise. Stuart you have no stake in the action, so you can tell me honestly who is going to win. Ive got a couple of friends that play for denver we went to college together university of georgia. Stuart youre supporting the broncos. Youre pulling for them. I think the broncos will win. Stuart im told the overunder is 47 1 2, i would play the over, am i going to be right . I dont do the betting stuff. Good answer. You cant do that, so denver all the way. Stuart young man, air going to make a lot of money and do well. Great to have you with us, congratulations, thanks for joining us. And need to hail a cab . Theres an app for that. In fact, there are a bunch of apps for that. And theyre also huge liabilities, calling the lawyers. Well explain it all next. The dow is down 176. Elcome back. How is everything . Theres nothing like bei your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. Got a new title. And a raise . Management couldnt make that happen. [ malennouncer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. [ malennouncer ] introducing fedex one rate. Can you start tomorrow . Tomorr were booked solid. We close on the house tomorrow. Tomorrow we go live. Its a dayull of promise. And often, that day arrives by train. Big day today . Even bigger one tomorrow. Csx. How tomorrow moves. On a day when the dow industrials are tumbling, indeed theyre off 900 odd points since the high on december 31st, okay . Were down 192. On this day, Charles Payne said, oh, i dont know about that. Were going to make some money. First of all, hes looking at the Manitowoc Company and ive seen it before. Charles weve had it on the show four times, including january 8th reported after the bell. I told you earlier a lot of of good stuff coming out about america, their crane business is still off, but they got into food servicing the last few years and talking about for restaurants, the big kitchenens. Stuart industrial strength. Charles revenues were up 10 and guess where most of the demand is coming from . China. Charles north america, north america, its amazing. Were still in the the stock and havent asked anyone to take profits and i know a lot of varney viewer have and wanted to follow up. Stuart followup on chipotle. Charles a new high. Stuart huge. Charles we compared this to mcdonalds. Stuart yes, we did. Charles we talk about technology all the time because its disruptive and innovative. We have disruption and innovation in every part of our life, they have been around. And the samestore sales are up 9 , its not cheap, but they make a product people want. Stuart not cheap. Charles again, its phenomenal stuff and phenomenal news and what were seeing this Earnings Period is not necessarily bad news, bad earnings, good earnings. Companies that operate well like chipotle rewarded and the quasi parent, mcdonalds is not being rewarded. Stuart uba is facing a lawsuit after a 6yearold girl was hit by a uba driver. The lawsuit states the u. S. Of the online app goes against the californias distracted drivers law. And joining us, joseph. Welcome to the program. How your app, how ride scout works. As i understand it it, i get your app on my smart phone here and saying im going from here there to and your app tells me which is the best netbased taxi service to get me from here to there. Thats what you do, i think . Good morning, thanks for having me. What we do in part. Its larger than that. What we do with the scout, linking riders and drivers together, theres so much excess capacity out there. If every american sat in a seat on a bus, taxi, train or their own car, that would leave over a billion empty seats out there. So were creating a marketplace to link rider and driver and what our app does, as you say going from point a to point b. We show not only your taxi or limo options, your walking shall, your biking, public transit, ride share all in one platform. Stuart have you got around the liability problem . Because if i go on your ride scout app, if i do that and im involved in some kind of incident, and im injured, having taken advice from your app, dont you have a share of the liability for my injury . No, i dont think we have a share of your liability any different than would say the yellow pages have, if you were to call the plumber and they were to break something in the house. We have set the company up in the beginning to remind folks as we aggregate your option, were bringing a Technology Platform to see your options. Out there organizing by mode, by time and by cost and allowing you to choose. No different than kayak or travelocity. If you have a bad experience with the airline, they lose one of your bags, you dont take it up with kayak or travelocity, you take it up with the individual carrier and makes ride scout so very different from the different emerging platforms you see on your phone. We aggregate them better to improve the quality of your life and your options. Stuart look, i think youve recognizance revolutionized the options. I dont think that taxi, the word is relevant. Youve revolutionized it. How much growth . Can you give me a number . We started in november in washington d. C. , 24 hours a day, seven days a week in washington d. C. , any of your viewers can download in the iphone store and see what that experience is like, that gives you three to four options whether you want to walk, bike, drive yourself or have someone drive you and the growth that weve experienced since november 20th is very positive giving us every indication were going to move quickly into San Francisco, boston, chicago, to take it where were headed next. Stuart joseph, ride scout. Very interesting, appreciate it. Thank you for having me. Stuart the dow is down 189 points, hoovering around 15,600, its a down friday morning. My take on the real victims of obamacare, real people next. [ male announcer ] meet mary. She loves to shop online with her debit card. And so does bill, an identity thief who stole marys identity, took over her bank accounts, and stole her hardearned money. Unfortunately, millions of americans just like you learn all it may take is aittle misplaced information to wreak havoc on your life. This is Identity Theft. 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You have so much to protect and nothing to lose when you call lifelock right now and get 60 days of Identity Theft protection risk free. Thats right. 60 days risk free. Use promo code notme. Order now and get this document shredder to keep sensitive documents out of the wrong hands. A 29 value free. Dont wait until you become the next victim. All right. Got to keep you uptodate on the market selloff this friday morning. Were down 206 right now and were told that deflation in europe makes it hard to make a profit if youre an American Corporation doing business there. Down we go, too. Income inequality and Climate Change directly related . What . At 10 35 a guest says, yes, theyre connected and its our fault. Amazon prime, get a whole lot of stuff for 80 a year and now they want to jack up the price, i say people will pay it. Well explain it all 10 45. Now picture this, a young woman has breast cancer, she has received treatment and the Insurance Company paid for it. She was covered. Along comes obamacare and she no longer has access to her doctors. She want today keep them, she cant. She goes on tv and appeals to the president , so far no response. Here is my take. Thats a disgrace. Shes a victim of obamacare, shes a victim of a broken promise and she is not alone. Gloria cantor in florida. She has five brain tumors, shes been forced into a new insurance plan, much more expensive, shes got to pay. Joan, a 60yearold registered nurse in michigan, a cancer patient for the last six years under obamacare, her plan costs 4 to 6,000 more per year and shes hit with an extra obamacare tax. These victims are from a list compiled by brent mozzel and published on fox news. Com. These are real people and their suffering is multiplied millions of times over. The president likes to talk about groups of people he says will be helped by obamacare, collectively he says we will be better off. I disagree, there are far too many individuals who are being hurt and hurt badly. All the hopeful of expectations have been buried. For most of Us Health Care costs more whether for premiums for the deductibles. For millions you cannot keep your plan, period. You cannot keep your doctor, period. We were deceived and Middle America is the victim. The pushback has already started and rightly so. Ive seen tv ads where obamacares victims look into the camera and tell their story. Good, keep it up. Im tired of being told that to create this wonderful omelette we must break a few eggs. Those eggs are real people. Come on, speak up. Dont let the collectivists forget about the individuals they are indeed hurting badly. vo you are a business pro. Seeker of the sublime. You can separate runway diculousness. From fashionhaflies off the shelves. And yo. Rent from national. Cause only national lets you choose any car in the aisle. And go. And only natnal anked highest in car rental Customer Satisfaction by j. D. Power. natalie ooooh, i like your style. vo so do we, busins pro. So do we. Go natiol. Go like pro. When electrici is generated with natural gas instead of todays most used source, how much are co2 emissions reduced . Up to 30 . 45 . 60 . The answer is. Up to 60 less. And ats a big reason why the u. S. Is a world leader in reducing co2 emissions. Take the energy quiz. Energy livesere. Out a dramatic heist in new york city, the five croats walked in, smashed display cases, made off with 16 luxury watches worth 7,000. Police are reviewing security takes to attract and down. We know you have an expensive watch. Where were you yesterday afternoon. Charles i dont know if i have an alibi. I was in my office. I was going to go on sean hannity and they canceled me and the last minute. My whereabouts are unknown. Stuart you got a 10,000 watch. Charles a different watch. Stuart what would you do with 10,000 . One gentleman named otis said i wouldnt buy a watch the. We got 500 respondents to that so now you know. A super bowl stock for you is up big on of very down day. Charles likes this one. He has recommended. Buffalo wild swings. This is a super bowl play. Charles you go back and look at every january, you could buy it in january of 2008, you could have bought it january of 2012 at 66, last year january, 75 a share. Certainly has been a good time to buy the stock before the super bowl over the last few years. Pretty interesting. Stuart fascinating, it really is. I have got to move on to a very controversial point of view, quote, income inequality and Climate Change are actually very directly linked. That is the quote. The man behind the quote is aaron kramer, president and ceo of spas social responsibility. Make the connection for me. Income inequality and Climate Change. Go. It is action leah common sense. If you think about the terrible drought that hit the United States midwest in 2012 which by all accounts not as much as 1 off of the countrys gdp, that is something that hits lower income people higher because when food prices go up people at the low end pay more of their income. These drought which are attributable to Climate Change hit people that can afford it the least. Stuart the implicit premise of your argument is that that drop was caused by Global Warming Climate Change. That is the premise on which you are operating and i dont think that connection has been firmly established. No one can say any single event is caused by Climate Change but all the science shows that events like that become more frequent and more intense and the data shows that. Stuart when you cant lose. You just cant lose. What about the dust bowl of the 1930s . Was that the result of Climate Change . There is a difference between climate and weather. Whether happened on a given day, climate is what happens over period of time. When you have the data that show the ten warmest years on record in Human History have all come since 1998 a broad trend is very clear and we clearly are living in a climate that is becoming warmer and more unstable and given that all the Big Insurance Companies and Reinsurance Companies believe this is the case. Charles of course because they can raise their rates. I am Charles Payne. I want to weigh in. I read somewhere that january was the coldest month in the history of our country. Are we talking about manmade Climate Change or just a cyclical event that has happened and whether or climate since the beginning of time . The science is clear. 90 of scientists who study this make clear that the climate is warming and human activity is the primary cause of that. Before you think higher taxes and more regulations will reverse that . I think Smart Investments and lower cotton economy, reducing waste, we waste 1third of the energy, 1third of the food, 1third of the water that is generated in the United States, that is good economics, that will put us on a more stable and secure footing for growth and will help us reduce the risk we face from Climate Change, manage it and enable us to adapt to it because it is already happening and that is simply good economics. It will create certainty. This is why dozens and dozens of companies are putting a price on carbon in their internal investments. We saw a story on this including the Largest Energy companies in the world, Companies Like cocacola and nike which were quoted last week in the New York Times talking about why they are putting Climate Change in their business strategy. It is not an environmental strategy. It is business strategy. There is access to Natural Resources that we need. Lets face it. Over the last 20 years, 663 Million People around the world, one tenth of humanity have moved out of poverty. If we are going to continue to see that kind of Economic Development which is not only good for people but good for business because that means more middleclass people who can participate in the Global Economy we have got to think wisely about how to address Climate Change. Stuart i hear you. I hear you. I hear you. 600 Million People who moved up to the middle class, that is largely china and india, largely. And they are not exactly greenie economies. Are they . I am sorry i am out of time. It is a very big subject but we are listening to you and you got a point and we appreciate you being with us today but it is such a huge subject, very hard to get to grips with it. Very hard to get on with it. Thank you for joining us, we do appreciate it. I am sorry about that. I just haveard time with this whole Global Warming argument as presented to us as if we can do something about it whether it exists or not. Charles i thought his solutions were all little bit more reasonable than some of the things i heard from lets highjack the American Economy and take our redistribution policies global. Save water, turn your lights off. Stuart they are so down on fossil fuels. You cant go fracking, cant go get natural gas. One of the things he said and laughed always is this repeatedly that the science is settle. The science is far from settled and we have seen a number of scandals out of the u. N. Charles should have known sandra when you go to the origins of this even pre al gore support for Climate Change you understand this is a Global Wealth redistribution scheme and he was pointing to exactly that talking about income inequality. Stuart bad news for amazon prime subscribers. The thrust of your annual subscription might be going up, way up but i still think it is upgrade service and a pretty good price even if they do put it up. We will deal with it next. My dad has aor afib. Brillation, he has the most common. Its not caused by a heart valve problem. Dad, it says your afib puts you at 5 times greater risk of a stroke. Thats why i take my warfarin every day. But it looks like maybe we suld ask your doctor about pradaxa. In a clinical trial, pradaxa® dabigaan etexilate mesylate . Was proven superior to warfarin at reducing the risk of stroke. And unlike warfarin, with no regular blood tests or dietary restrictions. Hey thanks for calling my doctor. Sure. Pradaxa is not for people with artificial heart valves. Dont stop taking pradaxa without talking to your doctor. Stopping increases your risk of stroke. Ask your doctor if you need to stop pradaxa before surgery or a medical or dental procedure. Pradaxa can cause serious, sometimes fatal, bleeding. Dont take pradaxa if you have abnormal bleeding or have had a heart valve replaced. Seek immediate medical care for unexpected signs of bleeding, like unusual bruising. Pradaxa may increase your bleeding risk if youre 75 or older, have a bleeding condition or stomach ulcer, take aspirin, nsaids, or blood thinners. Or if you have kidney problems, especially if you take certain medicines. Te your doctors about all medicines you take. Pradaxa side effec include indigestion, stomach pain, upset, or burning. If you or someone you love has afib not caused by heart valve problem. Ask your doctor about reducing the risk of stroke with pradaxa. Stuart bigname Companies Making news. First cut is microsoft, microsoft executives, an insider emerged as leading candidate to replace Steve Ballmer as ceo, he runs microsofts proud storage music, microsoft stock is down 12 . Yahoo reveals mail service is targeted by cyber attacker, hackers try to log into email accounts with solar user names and passwords, stock not affected, up 0. 50. Walmart cutting its outlook, down not much, 1 , 74. Mattel, disappointing holiday numbers, ploymaker, stock is down 9 . Isnt 568, amazon next. [ male announcer ] e new new york is open. Open to innovation. Open to ambition. Open to boldids. Thats why n york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and ows more businesses. Were open to it. Start a taxfree business at startupny. Com. Stuart the apple effect, amazon is lofty expectations, down goes the stock. Tell me how bad it is. Nicole the low of the day was 365, now 36890, a loss of 8. 5 . Talk about concerns and warnings about an operating loss, higher shipment costs hit them hard. They raised the prime membership fee of 79, raising that 20 to 40, economic malaise in europe and asia. That part of it is up. Stuart thanks. I want more on this, amazons prime service. Some call it the best deal on the internet, 79 a year you get unlimited access to their online video streaming catalog, Free Shipping of most products, there are reports that amazon will raise the price maybe by 20 or even 40 per year. Do you think if they move it from 79 a year to 129 a year i dont think it would kill it. A more reasonable increase would be 99 a year. They stuart wouldnt want to cross the 100 threshold. That is a big deal for people but that is the really good value, Free Shipping, streaming services for 100 a year. Stuart streaming service compete well with netflix. Netflix obviously paying a single flat fee just for that but with prime youre getting those deals, shipping and streaming and all other perks. Stuart they never say how many people signed up for prime. They are a little hazy about the way their numbers work but it is quite a bit. It is a huge number and a big moneymaker and it is smart because you are getting people to be dedicated customers to amazon. Stuart i would like to know how many subscribers they have got, how many what does that work out to . Stuart rumors that microsoft is going to put what is his name . Satya nadela. It might make this ceo in place of Steve Ballmer. What do you know about him and is it a good idea to get an insider . He has a veteran been there for ages, people really like him. I am worried about the insider coming in. My stock needs a big for them to start making moves on the computer side. Obviously they had a good hold on business infrastructure. But by bringing and incited to the top spot they are in essentially saying we are not going to make major changes to what we have been doing and that is what they need. Stuart stock opened on the upside and has moved to the downside. They are listening to you. 25 years ago i bought the early nintendo. Mario. Did you beat it . Stuart it was my son. Some day. Stuart 45 years later is nintendo having a rough time . They are having a tough time and that is people moving to all digital, buying games on their phones or going to more powerful consuls from sony and microsoft. They need to make moves and weathered that is putting software on other platforms beyond their own they need something because the latest council was a big flop and continues to make a lot of money. Stuart they need to write games that can be played on the x box or play station. Or your iphone. Stuart they are not doing that now. The problem is even if they did do that they are not going to have as a huge Profit Margins as they have with their own hardware so it is a sticky point. I dont think they will reach the peak they hit with the we. Stuart when you remember nintendo. Sandra of course. I spent many hours playing nintendo. Stuart way back then in the early 1980s nintendo was worth more than ibm and a couple other big names combine to. They were worth i dont know how many billions. They had their glory days. You dont think they can never return. A few years ago they had a stretch with the wheat consul and i dont think they will head that he could and unless they make huge changes to their business model. Stuart were you born when mario appeared . I was. They la want to say when i was born . I was born then. Stuart you must have been very young. The first video game i ever played. Stuart does anyone remember pond . I was on board for that. Stuart where is that when you really need it. Used to play it in the Journalists Club in hong kong. I wont say what stake i was. Thank you very much indeed. Europeans betting big money on the superbowl. We have one of europes top 40s on next, he explains the strange events, wait till you see it. [ bell ringing, applause ] five tech stocks with more than a 10 . Change in aftermarket trading. All the tech stocks with a market cap. Of at least 50 billion. Are up on the day. 12 lowvolume stocks. Breaking into 52week highs. Six upcoming earnings pls. That recently gapped up. [ male announcer ] now the world is your trading floor. Get rltime market scanning erever you are with the mobile trader app. From td ameritrade. With the mobile trader app. Sometimes they just drop in. Always obvious. Cme oup 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. Lou Peyton Mannings offense against the seahawks defense, the super bowl, two days away, super bowl champion fox sports analyst john quince joins us to talk about the business and entertainment of super bowl sunday and the former allpro gives his prediction on the outcome tonight at 7 00 eastern, please join us. Stuart dont know if you heard from. As two days before the big game and you can gamble on some really crazy things. Joining us from london, the bookmaker patty power. We just lost the shot. We just lost the shot. Coming from london listen to this. You can stroll up the front, you can bet on whether the seahawks quarterback richard sherman, you can bet on whether or not he causes, he is there, are you there . I most certainly am. How are you guys . Stuart i want you to describe this bet on whether or not mr. Chairman passes in a postgame interview. What are the odds that he will . The big thing is an absolutely massive deal over here so even bigger over there. Sherman is notorious for being outspoken, we have all seen his interviews, once he finished football he has a future in the w. W. 8. We invite him to curse during the postgame interview. Would be very glad to hear we expect him to be a himself. He will hold his tongue and not curse. Stuart tell me the odds. I know you are taking bets on the color of the gatorade that will be dumped on the winning coach. This thing i suppose for it to be clear and orange, we cant separate those two but one thing i can tell you is pointers are very much, customers are very much in favor of it being orange based, it has taken 90 of our money at the moment so they expect gatorade to be brought stuart what is the betting on the number of times Peyton Manning says omaha . Another interesting thing, something not wasnt aware of, the great thing about the super bowl, it attracts a layman like myself which is why we have beds like this. Over 32. 5 and under 32. 5, i do know i am aware of the city of omaha will donate money every time they dont say it so some charity will benefit. Stuart not got much time left. This is a test for you. What is your running back doing . Running back is the fast guard his course the touchdown. And my right or wrong . Stuart you are right. What is a defensive back . But the defensive back is a big mean looking leg of a man who smashes people. Stuart amy in looking lug of a man, that is very good. You are a welcome guest on this program. Come again soon. Charles what is up hunter . Stuart a gambler placing a bet. Your take on income inequality and Climate Change is nnxt. Stuart earlier on the show we spoke to the ceo of social responsibility. You had a lot to say about this on facebook and twitter. Ray tweets i have problem believing that the weather or Climate Change is caused by human activity. The sun probably has more to do with it. When this individual get india and china to abide, then maybe people will agree to it. It is certainly a wealth distribution. All right, connell, i am done. It is yours. Connell did you make a super bowl pick . Have a good weekend. Enjoy it. The market is a mess. As we close of january, we are on track for the biggest monthly loss in five years. We will talk about that. Adding billions to its personal portfolio. Mark zuckerberg is even richer with facebook. We also have the super bowl. They have you locked in. Amazon may raise its stakes for its prime members. We will have that and more on this hour of markets now