Week for the fed chair. Looking like a lower open for right now, but fight upward movement in record territory. Months and months for the stock market. By the way, speaking a record territory. Bigname tech Stocks Holding off to Massive Gains for friday. Amazon come alphabet, microsoft new highs and halfhour from now the market will open. We will have three hours for your sabbatical. Varney company will start right now. Charles back to the breaking news. Paul manafort, judge napolitano witness. A scuttlebutt over the weekend but it still a shocking bit of news. The New York Times is reporting one of the account said the indictment is for tax fraud. Tax fraud is not failure to pay your taxes and tax fraud is lying to the government about what you owe. That may or may not be related to his activities in russia. I suspect it is because his codefendant, rick gates didnt work with them on the campaign, but worked in its business when he was an american agent and an american lobbyist from time to time in ukraine and entities in russia. I dont know that it was the russian government itself but owned or controlled by the russian government. Heres the question. Does the activity alleged in the indictment consists of event that occurred before he began running the campaign . Charles the timeline begins in 2012. Among this involves wires crisscrossing of liars, and i mean, if this is all about evading taxes, long before he became a campaign man the answer may be nothing or the answer may be the government suspects that he knows something and they want to come us already use this word but its the parlay of the line for snack line for snack time and they like to squeeze in. They want to threaten them with massive amounts of termination and jail time, loss of property loss of liberty unless he coughs up what he may have about normal term. He may have nothing. This is the danger of federal prosecutors operating this way and what bob mueller is doing the Paul Manafort, every prosecutor does in every Federal District all the time. You are after a big cheese coming in by somebody below that person on the totem pole and see what they can cough up to help you get the big cheese. Sometimes to tell you the truth they tell you what you think you want to hear an order they will go easier on them. We dont know what it is they hope to get from manafort. Lets say they get nothing from him either because he hasnt anything to get them or because he wont get it. He still has to defend this indictment. It will be off the front pages but hell still be prosecuted and we will enter into a plea agreement for the jury. Charles the Mainstream Media keep it on the front pages even though it doesnt look like it has a direct correlation in. This is also an ominous. With the next domino . We can speculate as to who else is in their crosshairs did we know they saw a lot of documents from general flynn. We know theres not a lot of documents from the christian or companies. We dont know where the government will go. Charles lets say the next person, whoever that is, may come up with charges. Do they then began to play them off each other, hey, manafort, weve got another person whos ready to flip, as part of the lease greenspan . Thats a great question and the answer is yes and no. If they defend themselves separately, the answer is the government will try and play them against each other. If they enter into a Defense Agreement whereby all the defendants agreed to pool their resources and folder information and present one united front not to testify against the other the government has hit a brick wall. We wont know the answer. Well know it but we wont know the answer right away. Charles judge, please stay right there. We want to get to the folks money. A check of the dow futures before we start this week. We will give back those gains this week. The focus on big tax. These companies im in absolute terror. Amazon on friday, but so did google, microsoft, facebook and alltime highs. Joining us now, peter marie c. , economists and business professor at university of maryland. I guess youve got to go back to the tech bubble. We havent seen anything quite like this in then. The price earnings ratios are not what they were in theays. We areot sn these prosterous presterous situations wreompanies are doing is that did not earnings. These price earnings ratios dont concern me in one sense because they are no higher than they were a year ago and no higher than the 20 year average. They do concern me that they are so uneven. Tech companies are doing better than Procter Gamble or general electric. There are a lot of high capitalization American Companies that have breaking Business Models and it isnt clear that theyre not going to end up like sears before its over release like hewlettpackard. Charles the market is being efficient, taking market share in and go into new industries and cautious on those that are questionable. Absolutely. You have to ask, can someone like apple, 100 of the cell phone penetration in the United States is 100 . In europe its 90 . Worldwide is at much lower. The value of the cell phone themselves, can they keep going the way they have. Thats the question. Delivering in that regard, another American Companies deliver for example, those are very important things because thats where the growth is in america. Charles ive got another one, peter piercy and some compromise on the tax reform coming down to the wire. Congressman kevin brady says hes going to restore production for property taxes. Is that enough to get a pass and if so, how do they still find the trillion or so dollars they would like to make up for the deficit . Well, theres two things they can do. Less with regard to the estate tax, not do anything at all. The other thing is they dont lower rates as much and maybe reinstitute a very high rate for the very welloff. After all, they are the ones who take the property tax reduction most frequently. A couple of ways around this but the important thing to remember is 150 billion a year. 75 million off of investment taxes. A 20 cut in the profits tax. That will create some growth. No matter how they slice or dice or pair or puree this thing if you put 150 billion back in the economy, have two consumers can have to business, youll get growth will be good for the market. Pair that with powell going to the fed and you can have another bull run right on top of the one weve had. Charles it sounds great. We see so much gop over this, a budget that barely passed. Theres got to be a safer towel has to be sacrificed or several of them have to be altered. Absolutely. Charles hold on one second. Updating breaking news. Officially indicted. What are the charges . Ashley theres a huge laundry list, but 12 counts in this indictment. Conspiracy against the United States. Conspiracy to launder money. Unregistered agent of a principal, false statements and seven counts of failure to file reports the foreign bank and financial account then thats against Paul Manafort and richard gates his former business associate. It seems these events occurred significantly before the campaign of donald trump. So far someone unfamiliar with the procedures that what is this have to do with investigating trump and russia. It has to do with the fact special prosecutor is very broad and he wants to get somebody that he can squeeze. Hes a very serious charges against manafort. The connection to russia is his principal client and all of this was the former president of the ukraine was an ally of putin and the act according to the indictment of representing this guy he received money from russian interest as well and did not report himself or register as a Foreign Agent. He didnt report accurately the money he received in their for pay less than he should have. What about the notion somehow he took the job as Campaign ManagerTicket Information for russia in terms of paying them back are living up to an obligation he may have had. I have another chance to read every word but that is implicit in here. The president s enemies will rejoice at this because they will say that his next comment that charges transfer no federal crime matches collusion so the democrats talk about it, just a laundry list of whitecollar crimes that can amount to that. Pollution is a television or hollywood or media turn. I think i collusion, they mean an american person breaking in american law to help russia learn about our system or gather information, my khaki. Ashley more than 75 million below their offshore accounts they claim. More than 18 million which is used by him to buy goods, property and services in the United States. In time to conceal from the federal revenue service. Charles big, big news by the way. Update a story we brought you earlier this month in general electric. They did no former Ceo Jeff Immelt had a second jet that follows him around when he flew. He also said he had no allowance of that second jet either. [laughter] charles that countrys top prosecutor failing charges and accusing them of rebellions do this in breaching the constitution. Full details coming up. A warning for secretary of defense matters. He says the threat of Nuclear Talks with north korea is accelerating. General jack keane is on now. He is the next right after this. Charles a visit to north korea over the weekend. Defense secretary james mattis says north Korea Nuclear attack is accelerating. Jenin is not general jack king, former vice chair of staff to the u. S. Army in military analyst. You agree with the assessment. I dont know the facts as he does because director pompeo said a week ago that this north korean threat indeed with getting much closer. Secretary matt escape those briefings on a regular basis. Lets just take them at face value. I think what they are trying to tell us is that what kim jong un has done all along, he is trying to accelerate the miniaturization of Nuclear Weapons that you put him on an Intercontinental Ballistic Missile that could reach the United States and get that done before the sanctions really start collapsing the regime. He believes in his mind, charles, once he has that capability as opposed to hacking then. Because we expected Nuclear Bombs going back to 2005 when his father had developed the capability. Thats his capability. Charles if you look at all the collapse. The overtures i agree with that conclusion. When president obama was the president for National Security team with the military option back on the table and it is credible and therefore i think kim jong un will recalculate china. That is the visit that is so important is taking place next week with the president coming to south korea, japan, certainly other countries, but also most significantly china and given the new powers that the president xi has in china. I think given that Strong Foundation he has. Two d. Nuclear eyes. We are going to see. While the world takes them seriously in north korea, we have an apposite all. With respect to advancements in abilities to give missiles further than the Large Nuclear explosion they pulled off recently. If we keep being propelled towards this place, you know, what do south korea do . They may want to start are in to start on themselves of to start arm themselves with Nuclear Weapons and even though japan with world war ii still in their mind, even though they may say was that north and south korea with nukes, count us in also. Thats a very good point and that is why theres a significant amount of leverage your against china. Using a chemical weapons on its own people certainly indicated to president xi theres a different president during the United States than what weve been dealing with in the past. You bring these things together, credible military option on the table by trauma. We dont want a nuclear as south korea and japan, therefore he will likely come in my judgment can take some action dealing with north korea. Charles general keane, thank you very much. Appreciate it. Paul manafort, one of his associates officially indicted judge napolitano back for more right after this. My business was going nowhere. So i built this kickin new website with godaddy. 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Paul manafort officially indicted on charges including Money Laundering and tax fraud. Judge, youve been reading through the indicted. What are some things that stand out . The government has done a very thorough job in obtaining Financial Information about mr. Manafort, which he did not voluntarily file with banking authorities and they demonstrated the existence of literally hundreds of offshore corporations which were used as conduits to receive multimillion dollar payments from foreign entities, which then paid bills on behalf of Paul Manafort, the government version now and his family members on which no taxes were paid. Charles by what they pay him such large amounts of money . What did they bring to the table in the first place . Is principal client is the former president of the ukrainian who was properly elected after a campaign managed by Paul Manafort and his people. He then stayed on as an advisor and was paid many, many millions more as an advisor. A lot of that money was paid forward for things to be done in the futur i think the gernment wil probably argue in its implicit in the indicent that Paul Manafort and his colleague were agents of a Foreign Government and that Paul Manafort, according to the indictment was an agent of a Foreign Government while he was managing Donald Trumps campaign during the latter part of the republican primaries and at the convention in cleveland. According to the indictment, the alleged illegal illegal illegal activities of pulp manafort continue until september 2016 at which time he was no longer running the campaign. Dream to judge, a lot of work to go through. We appreciate so far. Thank you very much. The market up in a less than five minutes. Huge week last week led by the big tech names. A couple report their earnings later on. The big jobs report. This has been an fast enough, boys and girls. Well be right back. Today, the new new york is sparking innovation. You see it in the Southern Tier with companies that are developing powerful batteries that make everything from cell phones to rail cars more efficient. Which helps improve every aspect of advanced rail technology. All with support from a highlyeducated workforce and vocational job training. Across new york state, were building the new new york. To grow your business with us in new york state, visit esd. Ny. Gov. The and he charles the opening battle we do have some big Economic Data this morning. Income and spending really big numbers. And come up for 10 cent. Spending up 1 , well above what wall street was looking for. The most money spent on autos and september 2009. Replacement for the hurricanes. Some of it can also be longrunning consumer appetites growing because they seen a lot of evidence of that last week in particular. This market we will open down no doubt about it. Weve been buying dont think it will be a down day. The opening bell populating the bell. Winners or losers popping up. More losers than winners right now. Nothing significant. Of course well continue to check the big word for you. The s p 500 down yours lately a fraction of 1 . The nasdaq at unstoppable juggernaut world of tech names reside in you can see it down a little bit this morning. The takeover news this morning. Homebuilder lenore will buy a small rival into worth sampling 3 billion will create the largest homebuilder in the United States. To check on the big tech names referenced and amazon, google, microsoft, facebook 10 alltime highs. Looking good this morning. Ashley webster, elizabeth mcdonald, keith fitzgerald, todd horowitz. Weve got to talk about them. Can anything stop them at this point . You know, its short of some sort of geopolitical event, no i dont hang so because theyre all about the future. Theyve got the numbers, consistently i think is really where you want to be. The nasdaq 100 in just one day out of 200 in market value, just on friday. Thats a big deal. Keep is absolutely right when you look at caterpillar, and the forecast got listed, an increase to 625. Caterpillar is about global growth. This is about the future. Charles i let caterpillars numbers last week. They hire 2000 people in america, 3300 outside of america. North America Numbers through the roof. It is really amazing. We are firing on all cylinders. Ashley so is china pacific