There. Then we have Climate Change, oh, it will be front and center later today, alexandria ocasiocortez and Bernie Sanders will introduce a resolution declaring a Climate Emergency, they demand a large scale mobilization to restore the climate for future generations. No details yet and we dont know how different this will be from the original Green New Deal, but its sure to be a radical plan which will move the democrats even further to the left, and it will put Climate Policy right into the debates and the 2020 election. Its really great to be back. My thanks to david and ashley, really its great to be back. David and ashley and all my colleagues for their hard work while i was away. Weve got a big show for you this tuesday. Varney company is about to begin. A line drive off the top of the wall. There it is fires the bat up, and hes your home run derby champion of 2019. Stuart new york mets rookie won the home run derby last night and he hit 57 home runs, with 23 coming in the final round. Hes just the third rookie ever to win the home run derby. And then we have the womens soccer team well theyre back from france after their fourth world cup victory democrats like aoc have already made it political talking about equal pay, and here is Senate Minority leader Chuck Schumer. Roll tape. They make us really think about the future of womens sports. They make us grapple with the deep unfairness in how female athletes are treated and paid compared to may male counterpart s. How about the equal pay amendment that the house has passed how about we put it on the floor of the senate in the honor of the womens who won the world cup. How do we do that . Stuart i believe the team has been invited on to the floor of the house or the senate, im not sure which one but theyve been invited and i believe theyve accepted. Why dont we bring in david avel la, im sure he has a thing or two to say about this. Democrats look like they preempted the republicans. They preempted the president. They grabbed hold of the womens soccer team and using them as a weapon against trump. What do you say . Women should be paid equally and fully for every job that they do. At the same time, when the economy is booming so well, and employers have to compete for employees, democrats are playing their, listening to their songs from the playlist from their greatest hits from the 1980s, there are far better ways of having government mandate of how wages are paid. If Congress Wants to take effective policies why dont we get an infrastructure bill passed why dont we get research and development donald why dont we do more for broadband giving men and women the tools to be more valuable for employers so they can demand higher wages. Stuart that was a brilliant political move on the part of Chuck Schumer coopting the brilliant team, their demand for equal pay, and then sticking it to Mitch Mcconnell. That was a fine political move. Well, if youre looking for political score, yes. If youre looking for things that actually work, which you can see this administration has worked on, whether it be the tax cuts which has helped stimulate the economy, whether it be making employers compete for employees by helping to bring regulations down, which has created more jobs which has gotten the best way to make sure wages go up is to have full employment which is where we almost are in many parts of the country, thats how you get wages going up. You can be a showman and Chuck Schumer, theres no camera. He hasnt enjoyed getting in front of but if you want to be effective at getting womens wages higher, there are far better ways to do it. Stuart today, aoc, alexandria ocasiocortez are calling it a resolution that declares a Climate Emergency. The Green New Deal didnt get any traction earlier this year, didnt get any traction at all in the senate and how its being regurgitated so to speak in the form of a resolution. Again, i think that drags the democrats to the left, all over again. It cannot be said enough that the agenda of the Democratic Party is being driven by Bernie Sanders socialistic ideas. Stuart are you happy to see this . Certainly in wanting to win elections but more importantly, for the future of the country because the country is not going to embrace that and if you look at where the 2020 election will be, one in suburban areas, the Green New Deal, which senator sanders and congresswoman cortez both support and are advocating for is very unpopular and you contrast that with the success this administration has had, whether it be with Water Infrastructure whether it be getting standards higher for water, whether it be working with mexico to cleanup waterway s so its not as polluted whether it be bringing down the cost of energy, whether if it now being a major exporter of clean Energy Around the world now we export more than we import our energy its helping americans pay less energy, lets have this discussion. Stuart okay, if Climate Change is part of the 2020 election who wins on Climate Change . Republicans will because one weve delivered and two their ideas are so radical that a suburban voters and americans as a whole dont want to see that. Stuart we shall see. Thank you very much, sir. Lets get back to the market now because its Tuesday Morning well be on the downside when we open up down about 113 odd points look at that nasdac down about 30 points. This follows the strong jobs report on friday, which i believe reduced hopes for a big rate cut in the immediate future market watcher eddie gabore is with us. You investors, you market people , you just want it all dont you . You want a 50 point cut in Interest Rates, you want to secure china trade deal. Whats wrong with that . Stuart do you think the fed will cut rates this month . I do not. Stuart at all . I do not think theyre going to. When you look at where the feds rhetoric has been from october when they said they were nowhere near neutral and then they went ahead and raised rates in december and all of a sudden switched gears and said we are at neutral and then in march they came out and said no rate hikes this year, and one next year, trying to predict two years which i thought was a mistake trying to go that far out so for them to switch gears again and cut rates when the economic numbers look good and they are just supposed to ignore the Capital Markets i think they will disappoint the stock market stuart on thursday of last week because it was july 4, wednesday of last week, july 3, before the jobs numbers came out, confident ly predicted 50 basis point cut for the Interest Rates not going to happen at all. Definitely not 50 basis points. The markets pricing in 25 basis points right now and my concern is if mr. Powell does not deliver which i dont think he will i think he could have downside to the market in the shortterm. Stuart when do we find out the rate cut deal . That would be end of july. Stuart end of this month. We dont find out until then . Powell speaks today so we have tea leaf reading today. Wednesday thursday testimony on capitol hill and well be parsing through the words to see if he leaves the door open to possibly holes on Interest Rates his message today will be doveish. I just dont think he will deliver with a rate cut this month. Stuart how much time do we spend reading Federal Reserve tea leaves . Interpreting every single word he has . It never does any good does it . Well . Stuart we never get it right do we . Single biggest factor in moving markets in trillions of dollars in money around the world, the Federal Reserve. Stuart that is true. That is true and also, the side of the president as well. Stuart yes indeed very much so. Eddie you say there because i want you 20 cover the market opening and youd love to see the fed cut rates wouldnt you . Absolutely. Stuart no youre not staying are you . I dont know, you tell me. [laughter] stuart im sorry about that, eddie. Check the big tech names, please whats been happening over the past week, while ive been away . Money rotating out. Stuart microsoft did quite well money rotating out you think . Uhhuh, yes. Stuart so it drove it up and now the money is coming . Especially if were unsure about Interest Rate cuts, yeah. Stuart well facebook is backup to 194, apple below 200, microsoft tolding at 136 and google is down about 6 as of this morning and how about pepsi , the Frito Lay Division the snack division, lays, cheetos, doritos all did well the stock is up 0. 94 at 133, how about futures . Kind of the doldrums of summer and eddie says were not going to get a rate cut this month and down goes the market see what you did . Look at that were down 117 now, and down 30 on the nasdac. The latest from hong kong. The extradition bill that sparked the protest is dead, thats her word dead and full detail coming up and a twist on the fake meat story, uptons naturals they make plantbased Meat Products suing mississippi over new law that would prevent them from using the wordmeat on their packaging. Cant do that. The ceo is on the show to tell us more about this more varney after this. indistinguishable muttering that was awful. Why are you so good at this . Had a coach in high school. Really helped me up my game. I had a coach. Math. Ooh. So, why dont traders have coaches . Who says they dont . Coach mcadoo you know, at td ameritrade, we offer free access to coaches and a full education curriculum just to help you improve your skills. Boom mad skills. Education to take your trading to the next level. Only with td ameritrade. Stuart the billionaire, tom sti re has this tweet. Its true. Im running for president. Okay. I thought he had withdrawn from it but apparently hes back in at it. The reason why you say he thought he withdrew is because of january he said he was going to do it and he went to iowa speaking at town halls so this is i guess a big deal an environmentalist who is johning the toms already two dozen. Stuart now is his big deal impeaching the president or Climate Change . Theres a word for it need to impeach the president and already 8 million subscribers putting 50 million into this group over the past two years. Stuart former Hedge Fund Manager and now a climate warrior, check futures, were still down and heading south, down about 114 on the dow, we were down i think it was 115 yesterday, so its been a down week thus far. Look at netflix please. Record breaking debut for the third season of Stranger Things. Did you watch . The third season . Ive seen the first two. Its 1 billion franchise and its helping everybody from coca cola and anything from the 80s paraphernalia. Stuart so i remember the 80s rather well. Okay, so we were around. Stuart okay im not asking for some of it. Stuart netflix at 378 this morning up a couple of bucks there you have it and now i believe we have some special guests with us, is that correct . We havent micked them up yet but well get them momentary ill it, we have i b m theyve closed as you can see a landmark cushion of red hat. Theyve closed the deal, its a 34 billion deal. Largest ever for big blue. This is getting into Data Analytics, so very interesting acquisition. Stuart and ibm is back to 140 a share, and late last year, i think they dipped to below 120, and they do not at this point have a leadership position, in my opinion, that is, amongst the Major Technology companies in america, and jenny ramatey is going to be with us about the completion of the red hat acquisition and i will ask her whats with your position in the Technology World . They bought red hat for all cash, 190 a piece and look where its trading right now. Stuart okay. Below the offer and the acquisition price. Stuart have they done well . Well in terms of what, red hat and the acquisition how its helped the Data Analytics firm how its helped big blues bottom line . Look ibm needs to find Revenue Growth from somewhere only a few quarters of sales growth over the past decade and this stock is lagging so yes they need to find growth from somewhere, some said paying 34 billion for red hat might be over doing it. Stuart what do you got . Well its a big focus for them because they are saying do you have four key Growth Drivers and cloud is one of them and thats exactly where red hat falls. Stuart as we speak, ibm is up just 0. 30, 140. 95, red hat is up 1. 29 at 189, so there you have it, ibm has completed the full acquisition of red hat for 34 billion. But having said that red hat does help them grow in the cloud and as you know its microsoft and amazon, the cloud is the future. Stuart lets see if it helps them grow in the cloud. Come on in, please, ibm ceo, and red hat ceo jim whitehurst. Jenny first of all to you if i may. How does this accelerate the growth rate of ibm as a whole . Well, let me answer that both from a client perspective and a number perspective. This acquisition of red hat is all about being and we will now be the leader in the hybrid cloud, and that is the destination. Well come back to hybrid versus just the cloud, and it is 200 basis points to ibm, as the five year cagr so clearly ibm is a big company at 80 billion so it is 200 basis point increase in our revenue, but it is more about what clients need in order to modernize all their Mission Critical applications, which is 80 of whats left to be modernized and red hat is the important piece of that. Stuart jim, red hat ceo, tell me how this chapter 2 of the cloud, i think thats the way its being talked about, chapter 2 of the cloud, how does it help your customers . What do your customers get out of chapter 2 . Well most customers really dont care about it infrastructure and cloud, or hybrid cloud or any of those things. Those are tools to be able to deliver for their customers, and so for instance, you know, the press release was talking about theyre working to transform the experience for their customers, and in order to do that they have to build new capability for their website, for their mobile application. Its got to go back and get data out of these legacy systems, and what we can bring together is the power of this next Generation Technology which lets them develop applications much more quickly to serve their customers, and at the same time be able to run in a Mission Critical production way and be able to pull data throughout their systems and thats just one example of dozens of customers that we can work to accelerate their businesses by bringing together this brand new technology, in combination with the data and information that exists in their systems today, and were uniquely capable together to be able to do that. Stuart real fast, jim. Would you tell me whats so special about red hat, and what, not red hat, and what youre contributing to ibm . Whats so special . So we are the only fully open Source Software company and weve shown an ability whether it was with linux, with open stack, with kubernettis and containers for technology after technology to be able to get involved and make those Mission Critical and ready for the enterprise, and so bringing that capability to ibm, we can help bring a whole new vector of innovation thats happening in open source and make that enterprise grade and combined with the capabilities of ibm, the industry vertical expertise, the business process knowledge, the Application Development capabilities, we can accelerate our customers businesses together in a way that we cant by ourselves but together we really can. Stuart when i think of the technology of america, American Technology companies, i dont see ibm in a leadership role. I see microsoft, i see google, i see facebook, i see amazon, i see et cetera et cetera et cetera. I dont see ibm right up there with the movers and shakers of the Technology World. Will this do anything to improve your position . Well look, i should very much clarify that for you. We are the number one enterprise provider to the banks of the world, the airlines of the world , the Credit Card Companies of the world and so ibm is number one in the enterprise. Now, what youre talking about i think a minute ago is about growth here, and in the cloud area, many years, people have said the whole world is going to move just to a public cloud. We believed and put the pieces in place, that thats not actually the destination. This does make us the leader in what i believe the destination is now, for the enterprise, and when i say hybrid, think if you were remodeling a house. Every one of our clients doesnt have the option to knock it down and rebuild overnight and so what hybrid said is you look at your it estate and piece by piece you decide what is economically or for regulatory competitive reasons you say im going to take some of this and leave it on my premise, some goes wayne the they call private clouds, a cloud that runs in your own backyard or many public clouds which today clients have 515, so this is imperative for them to do the innovation jim just said, that we bring them a hybrid cloud and remember, what we now do is we run on all the clouds you just cited. So this gives them one platform, just think of any business. Id rather have one skill that can work in any environment and thats wh