A new special relationship, boris and trump, perfect together, maybe. Well see. Investors like it. Stock prices jumped when the brexit news came through. We backed off a little since, but the dow is still going to open up about 70 points, up 9 for the s p and up, what, 34 for the nasdaq. The market clearly ignoring the really toxic politics so clearly on display in washington, d. C. Ive got two stocks to focus on today. New tech netflix, old tech, ibm. They are going in opposite directions. Start with netflix. We were told they had to sign up seven million new subscribers. Well, they didnt. They missed. Yet the stock is going straight up. My point here is, beware the expectations game. Ibm, going straight down. Their turnaround is not going well. We will ask if this is the time for new leadership. On the calendar this morning, President Trump leaves d. C. , heads for texas. Hes leaving the place where nothing gets done and where impeachment is an obsession, and hes going to a place where people actually get something done. We expect him to have something to say as he leaves the white house. Hes got a lot to go at. You will see it all. Varney company is about to begin. Stuart stock of the day, lets start there. Look at it go. Netflix, we are talking about. Yes, they reported big profit. The stock is going straight up, 23 higher premarket, 309. Netflix analyst tom forte is with us. Tom, youre not on board with this netflix rally. I know youre not. Whats wrong . Basically the stocks going to have a good day today because as you pointed out, expectations were very low for the september quarter, following their surprise disappointment for the june quarter. The big challenge for netflix, though, as we wrote in our white paper, is today only three of the Large Technology and Media Companies have their subscription video on demand offering available to consumers. Netflix and amazon and hulu. Well, three is about to become five, with apple and disney plus launching next month, and then sooner or later, you will have hbo and nbc universal. So in a much more crowded for subscription video on demand services, this is going to be problematic for netflix. Additionally, you are seeing huge arms race for content. Netflix acknowledged in their call last night that popular shows are 30 more expensive than a year ago. They will have to warmly embrace advertising to pay for content in the future because of this arms race. Stuart all right, you are throwing a little cold water on the stock but it is still the stock of the day, and premarket its up over 20 bucks. Thanks for joining us. We appreciate it. Thanks very much. Big news out of europe. The british as in the uk, and europeans as in the European Union, they have agreed to a brexit deal. Its a Draft Agreement. Got that. Nigel farage is the leader of the brexit party and he joins us now. Nigel, why are you saying parliament should reject this deal . Why . Its not a new deal, stuart. Its mrs. May brought this new eu treaty, no deal, but a treaty, back to us a year ago. Our Parliament Quite rightly rejected it three times. What boris has now done is to amend it, get some changes, to put lipstick on the pig. Some things are better about it, some things are worse about it. And yes, i would love us to be free, to have an allencompassing trade deal with the usa, something the Trump Administration are very very keen on. Let me promise you if what boris is negotiating today goes through, it will be at least 2022 or 2023 before theres any trade deal with the usa. We will be trapped forever under this agreement with environmental laws, with employment laws, even taxation is mentioned here. So its brexit in name only. Stuart okay. If the deal is presented to parliament as it will be soon, and it is rejected by parliament, then what happens . Then we extend again. We extended already, as you know. We were supposed to leave on march 29th. We were supposed to leave on halloween. We would extend again. But i would rather extend than go for a bad new treaty that means we will never be free. And into that extension, we might just get a general election, where the british public, talkiwill tell the poli class what they really think about them. Stuart thanks for joining us on a very important day. Always appreciate it. See you again soon. All right. Lot of news this morning. Lets get to the market, right at it. Heres Gary Kaltbaum joining us today. A draft Brexit Agreement, some pretty good profit reports. Looks to me like the market wants to go up. What do you say . It will be up on the open. Keep in mind we have like 3,000 Companies Reporting in the next few weeks and thats going to tell the tale. If we get a bunch of ibms bad and a bunch of netflixes, good. Its now wait and see mode. I think earnings are okay, nothing special, but i think one thing stands out for me and i wrote about it this week, is we have our central bank doing more quantitative easing, and if you go back the last ten plus years, every time thats happened, markets have liked it. So we are on breakout watch for the big four indices. Our biggest problem is half the market is not participating in any rally, so its going to be narrow. Youve just got to stay with whats working, and working very strong. Stuart before we leave you, you are talking about a breakout situation, where you just might get a pop to new highs. Thats a distinct possibility to Gary Kaltbaum. For the dow, s p, nasdaq and nasdaq 100, yes. Everything else, no. Small cap stocks, midcaps, no chance. Transports, no chance. Foreign markets are also underperforming bigtime. Just the big four. Stuart can i make this point real fast. This is a market thats going up this morning despite it all, and im referring to the toxic politics that were revealed in full yesterday. The market doesnt care about that, does it . No. Because when everybody gets to work today, they look at earnings and Interest Rates and this has been going on awhile. I think its the worst its been in the last three years, but i hardly Pay Attention when it comes to i Pay Attention, but when it comes to markets, i look at everything else. Stuart got it. Gary kaltbaum, thank you very much, sir. Busy day. We appreciate you being here, as always. Let me get back to individual stocks. Im going to start with ibm. That is going to be a drag on the dow at the opening bell. Five straight quarters of falling revenue for ibm. Now, susan, this is raising questions about the leadership. Susan shes been there for seven years since 2012, besides one, maybe two quarters, sales have been falling each and every time they report earnings. Falling sales once again, fifth in a row. We also had earnings per share which is what they like to count on an adjusted basis for profit, actually coming in better than expected. Shes trying to transition a 100yearold company into this new i. T. Landscape. It bought red hat for 34 billion. This is the first quarter, by the way, after that acquisition so they can only count for half of the revenue. Still, ibm is struggling, trying to get into the hybrid cloud. They are number five when it comes to Cloud Computing behind amazon and microsoft. Believe it or not, they actually got into the cloud first but didnt develop it fast enough, like the rest of the players, and this stock accounting for 60 points off of the dow this morning. Stuart just reminds me of some of the great old names that have failed to make a serious susan general electric. Stuart thank you. Thats exactly what i was thinking of. Ge susan u. S. Steel, some may argue as well. Big blue. Stuart eastman kodak. Thank you, producer. Susan that went under. Stuart totally so. Lets move on. We have some rather sad news to report for you this morning. Congressman Elijah Cummings has died and President Trump tweeting just a few moments ago. Here it is. My warmest condolences to the family and many friends of congressman Elijah Cummings. I got to see firsthand the strength, passion and wisdom of this highly respected political leader. His work and voice on so many fronts will be very hard, if not impossible, to replace. Chad pergram on capitol hill, our producer there, chad, what does his passing mean for the impeachment inquiries on the president . Reporter there were three committees looking into impeachment, the house intelligence committee, the Foreign Affairs committee and the oversight committee. Cummings was the chair of that panel. Every subpoena, every request for documents, every request for a witness, we have had the chairs of those three committees sending that out. Elliott engel from Foreign Affairs, adam schiff from intelligence and of course, Elijah Cummings. They have been having these closed door interviews with a lot of witnesses over the past couple of weeks here. Congress has been out of session until tuesday. And we had seen schiff most days. We had seen Elliott Engel a little bit. We had not seen Elijah Cummings. His district is just about an hour north of here in inner city baltimore, from washington, d. C. So it wasnt that rare that we wouldnt see him here but his name was on each of the documents. Now the question is, who might step in for Elijah Cummings. I would look at Caroline Maloney from new york and maybe Jared Connelly from virginia. Stuart will it slow the impeachment investigation down . Reporter so far this is in adam schiffs wheelhouse and steny hoyer said he thinks they could have this wrapped up by the end of the year. Stuart chad pergram, thank you. See you soon. Back to your money. The market is going to open higher. Not a huge rally but we are going to go up, 70 points up for the dow, maybe 30, 31 for the nasdaq. President trumps going to head to texas later. Hes going to celebrate the opening of a new factory and hes going to hold a big rally tonight. He will be leaving the white house roughly an hour from now. We will watch to see if he speaks to reporters. Joe bidens campaign hemorrhaging money. Would you believe hes spending a fortune on private jets . He was the democrat frontrunner but there are serious questions about whether he can make it to the finish line. Varney company just getting started. [phone ringing] how are we doing . Fabulous. I wonder how the firms doing without its fearless leader. You sure you want to leave that all behind . Yeah. Stay restless, with the icon that does the same. The new rx crafted by lexus. Lease the 2020 rx 350 all wheel drive for 439 month for 36 months. Experience amazing at your lexus dealer. I wanted more thats why ive got the power of 1 2 3 medicines with trelegy. The only fdaapproved 3in1 copd treatment. Trelegy. The power of 123. Trelegy 123 trelegy. With trelegy and the power of 1 2 3, im breathing better. Trelegy works 3 ways to open airways, keep them open and reduce inflammation for 24 hours of better breathing. Trelegy wont replace a rescue inhaler for sudden breathing problems. Trelegy is not for asthma. Tell your doctor if you have a heart condition or high Blood Pressure before taking it. Do not take trelegy more than prescribed. Trelegy may increase your risk of thrush, pneumonia, and osteoporosis. Call your doctor if worsened breathing, chest pain, mouth or tongue swelling, problems urinating, vision changes, or eye pain occur. Think your copd medicine is doing enough . Maybe you should think again. Ask your doctor about oncedaily trelegy and the power of 1 2 3. Trelegy 123 save at trelegy. Com stuart all right. Higher profits, better revenues coming in to morgan stanley. By the way, the bank says it made a lot of money at its trading desk. That goes down well. The stock is up, what, 3. 6 . Nice gain. Look at the stock price of phillip morris. It gained market share against other Tobacco Companies and says its ecig business is doing well for them. The stock is up 2 . Lets get to chicago. Parents are scrambling there for child care because theres a teachers strike. Lauren 400,000 students. Where do they go today . Because the teachers union, 25,000 strong, not teaching. The schools are open. If you need theres no buses but if you can get your child to the school, there will be someone there, maybe a principal, they are nonunion, to watch over things. A lot of parents dont feel comfortable about that. They are scrambling to find where to bring their kids today so they can go to work. Why are the teachers on strike . This is the first strike since 2012. They do want higher pay but its more than that. They want more nurses, more psychologists, more staff in the schools and they want smaller class sizes. Some of these classes are over 40 kids. Stuart wheres the money going to come from . They havent got it. Chicagos in dire financial straits. Lauren i know. Well see how long this goneone goes. This is a mess. Stuart you feel for the parents. What do you do about child care now. What do you do. What a story. We have negative headlines on the biden campaign. The daily beast says the campaign is bleeding cash, spending big on private jets. Thats the report. Wall street journal columnist Dan Henninger says biden isnt going to make it to the finish line for the 2020 race. All right. Joining us now is herman cain. What have you got to say about joe biden making it to the finish line, bleeding cash . Its too early to call. I remember when the late john mccain was running for president , and they had counted him out. The advantage joe has is that a lot of the other democrat president ial wannabes dont have, he has a lot of the old guard democrats who owe him favors. By the time we get to the time to select a delegate, select a candidate, you dont know how many of those favors hes going to call in. I simply say its too early to tell. Now, it is expensive running a president ial campaign and i cant tell whether the cost hes spending on jets is too much or too little but you have to have that in order to get in front of the people that you need to, but its just too early to tell. Stuart good one. Next one, south park mocking lebron james over his comments about china. Roll tape, please. We have a right to free speech. Yes, we do have freedom of speech but at times there are ramifications for the negative that can happen when youre not thinking about that and youre only thinking about yourself. Whats going on, kids . We dont want another incident here, okay . They try to take peoples lump, they dont realize it harms people financially, emotionally and spiritually. Stuart south park taking him on, for sure. It was kind of funny. You have a lot of american athletes quite willing to slam President Trump and not go to the white house and really badmouth him, but those same american athletes are unwilling to criticize at all a communist dictator in china. What do you make of that . Well, first of all, its hypocrisy and i would say those athletes who have written President Trump off are not informed of the results. They are acting on perception. Secondly, if lebron james last name was not james, we wouldnt be having all of this uproar. China wouldnt be reacting the way it is. Its a very delicate situation now between hong kong and Mainland China, and athletes quite frankly should stay in their lane. I stay in my lane. My lane is politics, economics, business, prosperity, markets and things of that nature. So if his last name were not james, we wouldnt be having south park mocking him and you wouldnt have his name in the news every day. I cant speak to how china is responding to it, but they have a history of not liking that kind of criticism. Free speech is something that we have here in this country, but you cant say that about other countries. Stuart by the way, you just laid out a sixlane superhighway right there. Thats what youve got going for you. All right, herman, thank you very much, sir. Love that smile. See you again soon. Back to the market. We are still going up, not a huge rally by any means, but up 60 for the dow, maybe 30 for the nasdaq. Well be right back. What a time to be alive. The world is customized to you. Built for you. So why isnt it all about you, when it comes to your money . So. Whats on your mind . We are edward jones, a 97yearold firm built for right now. With one Financial Advisor per office, were all about knowing whats important to you the one who matters. Edward jones. Its time for investing to feel individual. To earn j. D. Power chevdependability awards. Across cars. Trucks. And suvs. Four years in a row. Since more than 32,000 real people. Just like me. And me. And me. Took the survey that decided these awards. It was only right that you hear the good news from real people. Like us. Im daniel. Im casey. Im julio. Only chevy has earned j. D. Power dependability awards across cars, trucks and suvs. Four years in a row. Yourethats why at aetna,sing what matters. 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