2020 election. There is agreement on Government Spending. That takes the threat of a Government Shutdown off the table, at least in the short term. One more, and i consider this a plus. Chairman nadler suddenly called off the Impeachment Vote last night. No reason given. Debate resumes at 10 00 eastern this morning. Perhaps he wasnt sure the vote would go his way. Perhaps he wanted more tv time. Impeachment has become a democrat mess. Now look at this. A 220point gain for the dow yesterday and we saw an Early Morning rally today, faded only a little. The dow still on track for, what, 80, 90 point gain, up 8 on the s p, up 27 on the nasdaq following a big gain yesterday. December, no, ive got that wrong. A december to remember, thats what im trying to say. Varney company is about to begin. Stuart lets start, why not, with a president ial tweet. Here we go. Record stock market and jobs. Short, sharp, to the point, mr. President. We read it right there. Good news all around. Some big names you know are poised for fresh highs at the open. Im going to start with apple. Thats the premarket quote, up another roughly half percentage point, 272. 75 on apple. As for microsoft, i own a thin sliver of it, 153. 64, up about. 25 this morning, another record high. British banks, they are poised to rally bigtime after the conservative got that majority in britains parliament. Brexit shouldnt be far behind. British banks, look at that, up 11 , 7 , 2 . Big gains. Yes, we are waiting for the formal announcement on a china trade deal. Edward lawrence at the white house. Edward, give me the bullet points, please, on the deal thats likely to be formally announced. Reporter first theres a News Conference in about 30 minutes going on in china about this deal. Now, trade adviser to the president Michael Pillsbury laid out for fox business four of the main points related in here. One, the deal will protect intellectual property, have greater protections for that, open Financial Services markets and agree, the chinese agree not to manipulate their currency. Theres enforcement in this deal. The chinese vow their word, to keep their word on trade. A trade source tells me they also said they would buy 50 billion in agriculture but they would not put that in writing in the text. As you said, the phase two would be negotiated after the 2020 election. My source says there will not be a signing ceremony with president xi and the chinese have asked for the u. S. Not to publish the text of this agreement. Well have to see if that happens, on the december 15th tariffs until from a source, those tariffs will not go forward and will be a small reduction in tariffs that are existing on some chinese products. Stuart thats the good stuff. Okay. Thank you very much indeed. Let me turn to susan now. If weve got no new tariffs being imposed and a cut in existing tariffs, a cut, which products will avoid the tariff problem . Susan a lot of great Consumer Products that a lot of people buy. This is good for the consumer. Lets take you through them. Video game consoles, 5 billion worth of game consoles would have been tariffed on sunday, december 15th. We have computer monitors. We had 37 billion worth of laptops that would have been taxed some 15 if december 15th tariffs went into place. Also toys, 12 billion worth of toys, 43 billion worth of mobile phones, footwear as well, gloves, mittens, shawls, scarves, you get the picture. Stuart i do. Bow ties. Cravats. Susan at the end, the winner is the u. S. Consumer which is good for the u. S. Economy. Stuart got it. No new tariffs. Got it. Thanks. Lets get straight to the markets. Looks to me like the runway has been cleared for this market. Maybe its ready for takeoff. Lets find out with joel shulman, our market watcher of the day. Look at you. This is a great day to be in the market. Great day to be in the markets. Small caps have been on fire since october. We see this continuing with this news in china, we see this continuing through today and the rest of the year. Think we will have a christmas rally and a strong january. I think the markets are particularly wellpositioned again for u. S. Small caps. We have been kind of beating that drum for a couple months but also nonu. S. Because the u. S. Markets are starting to get fully priced but we still have room in small caps. Midcaps, by the way, small caps, u. S. Midcaps and i think the markets attention after january will be shifting to nonu. S. Where the value seems to be. Stuart i hate to raise what may be a negative, but i was around in 1999. I think you were, too. I was around. Stuart there was a terrific runup for the nasdaq. Until october 2000. Stuart all of a sudden you get into the new year and there was a devil of a selloff. Could there be the same thing today . Well, we saw this by the way a year ago, the Fourth Quarter of 2018 was a tough quarter. People forget that. As late as the second week of december, people thought it was doom and gloom. We have seen periods of 10 , 15 dropoff and people in the market have to know that the market is susceptible particularly those stocks that have a big runup stuart wait, wait. Amazon, microsoft, apple. Im not selling. Im not selling either, but when you think of amazon, theres been a lot of news lately on the Saudi Arabian oil company. Theres only two companies out of 62,000 companies we track that have over 250 billion in sales and have a 400 billion market cap or more and 100 billion of profits. The Saudi Company and amazon. Amazon is a company with over 100 billion in profits. Stuart they make 100 billion a year in profit . Yeah. Yeah. Stuart plows most of it back into the company, i take it . Yeah. Yeah. We dont think of it this baway because years ago they didnt have profit but they came back. Stuart the runway is cleared, im worried about a selloff next year but im not selling now. Well, lets worry next year. Lets get through christmas, january. Lets enjoy january. Stuart just great. Runways clear. Joel, thank you, sir. The video, which we are about to show you on your screen, is the leader of the Scots National party. Did extremely well in scotland in the general election in britain last night but it was a very very big win for Boris Johnson. Especially in the north of england. All right. Ashley webster has been over there covering this for us. Lets finalize this. Does boris have the votes to finally get the brits out of the European Union . Ashley yes, he does. He has those votes and more. He has a 78seat majority, so the conservatives could quarrel among themselves about the details of brexit, but it wouldnt matter. He has more than enough votes and that is great news certainly for the conservative party, for all of those who voted for brexit and what we saw last night was people thoroughly fed up with the dithering in parliament and a vote for Boris Johnson breaks the deadlock and for the labour party and Jeremy Corbyn, what an absolute disaster. Just to highlight this very quickly, theres a seat in south wales in a mining community, it has always voted labour going back to 1918. Yesterday, they voted for the conservatives. That just gives you an idea of how big a win Boris Johnson has enjoyed and certainly i see the uk getting out of the eu probably before the january 31st deadline. Theres nothing to stop it. The runway is clear and all the arrows are pointing green. Stuart real fast, ashley, i can see how the voters went for Boris Johnson to get the brits out and do brexit. Did they vote against Jeremy Corbyn because of his socialism . Ashley yes, they did. It was a very stark contrast. Boris was positive, he was amiable, he made people smile. Jeremy corbyn just cut a very grim picture, he was all gloom and doom, were on the road to ruin, and i think people are just fed up with it. It was a vote against Jeremy Corbyn as much as it was i believe for brexit. Stuart i hope you enjoyed your time in britain. Come back soon, ashley. Ashley on my way. Stuart good luck, ash. Thanks a lot. Earlier this morning, an economic number came out, retail sales for the month of november. Deirdre, i thought they were rather soft. Deirdre tepid. They grew at. 2 . October was 3. 1 so already worse than october. Economists were looking at a gain of half a percent. Basically, amazon and best buy are the winners. The losers here were essentially department stores, restaurants and clothing stores. So anyone who is buying tends to be buying online. Also, surprisingly, auto dealerships did pretty well. The three bright spots, auto dealerships, amazon, best buy. Stuart got it. Thank you. Check futures. We have come down a little, not quite in negative territory. We are now looking at a gain of, what, 17 points for the dow, maybe, and a fractional loss for the s p. Got it. At 11 00 eastern time, this morning, President Trump welcomes the president of paraguay to the white house. He could and probably will speak to reporters. If he does speak, maybe he will talk about china trade. If he does speak about china trade, you will know it real fast because we will cover it for you. Like President Trump, babe ruth was larger than life. Theres no bigger icon in sports history than the babe. The bat that the yankees player used to hit his 500th home run is up for auction. Of course we will tell you how much its going to sell for. Forbes has its most list of most powerful women. Ivanka trump made the list. But way down there at number 42. Can you believe who the number one was . Germanys angela merkel. Ivanka 42, merkel number one. I dont get it. More varney after this. Most pk of verizon as a reliable phone company. But to businesses, were a reliable partner. We Keep Companies ready for whats next. man we weave security into their business. second man virtualize their operations. woman and build ai customer experiences. second woman we also keep them ready for the next big opportunity. Like 5g. Almost all of the fortune 500 partner with us. woman when it comes to digital transformation. Verizon keeps business ready. And i like to question your im yoevery move. N law. Like this left turn. Its the next one. You always drive this slow . How did you make someone i love . That must be why youre always so late. I do not speed. And thats saving me cash with drivewise. My son, he did say that you were the safe option. And thats the nicest thing you ever said to me. So get allstate. Stop bossing. Where good drivers save 40 for avoiding mayhem, like me. This is my sons favorite color, you should try it. [mayhem] you always drive like an old lady . [tina] youre an old lady. Stuart weve got a phase one trade deal with china. Phase two is discussed after the 2020 election and look whos here. Max baucus, former ambassador for the United States to china. Mr. Ambassador, welcome to the show. Thank you, stuart. Stuart let me go through the outline of this deal, the very broad outline. Stronger intellectual Property Protection, access for u. S. Companies to Financial Services, no currency manipulation, no new tariffs december 15th, cuts on tariffs, phase two after the 2020 election. Looks like its cleared the decks for china trade. We dont have to worry about it. What do you say . Well, well see whats actually agreed to. Stuart sound good . It sounds good in the interim. Stuart does it sound about as good as were going to get for phase one . For phase one. But phase two is the bigger question. Because phase two deals with structural issues. Thats something thats much more important to the United States manufacturers and United States businesspeople, but with china its going to be very reluctant to agree to. I think frankly, phase one could well be it. Phase two, well try in 2020. Im not sure how far well get. Stuart it seems like china doesnt want to be open about the terms i saw that. Yeah. Yeah. Stuart agricultural purchases, a verbal agreement i saw that, yeah. Stuart dont write it down. They dont want the people back home to know that maybe china has given a little . Well, thats part of it. My experience as ambassador over there, we just dont think it, then it doesnt really happen because theres no enforcement. They dont have an independent judiciary like we do. Stuart we were told, there was part of the note here that there would be some enforcement provisions in there. Not that weve seen them, but that theyre in there. There may be some kind of enforcement. My gut, somewhat cynical sense is theyre papered over and theres no independent arbiter. China says one thing, we americans Say Something else, whos right . Stuart mr. Ambassador, you dont seem to think much of this. No, its good. Stuart lot of cold water all over it. Its good to buy from china, buy a lot of soybeans, thats good. We should be happy with it. Im saying the bigger problems are really down the road. Thats going to take a lot more work. Stuart but they are off the table before the election. Yes. It looks that way. Stuart i would say thats a pretty good thing. Well, i dont know if off the table is a good thing because american businesses would still like better access in china. Stuart okay. Mr. Ambassador, max baucus, thank you for joining us. Always appreciate it. Thanks. By the way, as we were talking there, the market turned south. I think you had something to do with that, maybe. Im not so sure. Lets go to gerri willis at the new york stock exchange. What are traders saying this morning . Gerri we may be out over our skis a little. Thats what theyre saying here. They are keying this off the fact we have that 9 30 presser with china. Wall street journal has a story, china offers no confirmation on u. S. Trade deal. Big concerns here. Do we have it wrong . Is there no trade deal . Of course, the president tweeting just the opposite, that the wall street journal story is incorrect. Ive got to tell you, we have no signed deal. Lots of traders even before this rash of tweets and headlines saying not quite done yet. Youre seeing some weakness in dow futures here and we are seeing treasuries edging up a little higher this morning as well. So 9 30 will be really important here. We will be watching. I know you will be, too. Back to you. Stuart got it, gerri. Thank you very much indeed. Ive got to change the subject entirely. A lot of people will hit the road for christmas, got it. Well, there are some new features on googles wayz appear which i happen to use. Deirdre theres a snow warning tool which warns drivers about black ice, and drivers can also put that information in so you have this crowd sourcing effect. If you come across a tree, for example, across a street, you can put that in and future drivers, other drivers coming along that road will have the same information. Stuart i cant get around without it. Thats a fact. Good story. Deirdre useful. Stuart yes, very useful. Theres another headache for wework. This is news to me. Trying to get out of leases . Susan they have 17. 9 billion in global leases signed. This was a company on the verge of collapse. We had basically an ipo that didnt go through and they needed money from softbank. This company could have gone out of business this year if it wasnt for softbank coming in. In order to stem the tide and to minimize the losses, that they lost about a billion dollars in the First Six Months of this year, they are unravelling leases now up to hundreds of billions around the world. They are the largest commercial real estate leaser in manhattan. Stuart let me remind everybody, we have just turned south for the dow industrials. For our radio listeners, we are off 8 for the dow, 3 for the s p, 14 for the nasdaq. I promised i would no longer talk about this but here i go. Hasbro has unveiled its baby yoda toys. You have to wait to get them. We will tell you how long. Even elon musk has joined the baby yoda craze. He tweeted this meme today. Our next guest has a very strong opinion about elon musk. Hes calling him entitled and arrogant and he will explain why. You are the one. Nothing shines brighter than you. You are my rock. Nothing is stronger than you. You are oneofakind. I love every facet of you. You are my diamond. For the diamond in your life, theres only one Diamond Store. Zales. Its the you are my diamond event. Get 30 off everything including these one of a kind deals. Exclusively at zales, the Diamond Store including these one of a kind deals. vo thewith every attempt, strto free itself,piders web. It only becomes more entangled. Unaware that an exhilarating escape is just within reach. Defy the laws of human nature. At the season of audi sales event. Are ready for cartridges another school year . What does cyan mean . It means cyanara, honor roll. imitates shell fire, laughs the ink daaaad daaaad im so hosed. Yeah. You are. shaq the Epson Ecotank printer. No more cartridges it comes with an incredible amount of ink that can save you a lot of trips to the store. Get ready for the deans list. Whos dean . The Epson Ecotank. Just fill and chill. Available at. Stuart British Labour party leader Jeremy Corbyn lost bigtime yesterday. Now he says a new leader will be chosen by early next year and he will step down at that point. He lost big, the socialists lost big and i think that rubs off on the socialists here, senators warren and sanders. Well see about that later. We do like strong, definitive opinions on the program. Weve got one for you now on tesla. Joining us on the phone, market watcher bill blaine. He is very bearish on tesla. Youve got a big problem with elon musk. Explain, please. Hi. Pleased to be with you. The problem with elon musk is not so much what hes doing with tesla. Tesla has certainly reset the model for electric vehicles and has the potential to be a very successful company. The problem is elon musk himself. Do you invest in managers and leaders of companies who behave the way he did with the tweets he launched against