Have and how emboldened they are by the bad policies of this administration. Its going to get worse before it gets better. You can have the greatest military in the world, but if you havent got the will to pursue, then youve got a problem. Hamas is a terrorist group. They need to finish em off, clear it out, and its going to be a tough fight by them going in, but its a fight they have to do. We have turned a blind eye to sanctions not being enforced in iran, increasing exports of oil out of iran which, by the way, are going to china. Stuart good morning, everyone. 11 00 eastern, wednesday, octoberthth. Quickly check the stock mark. Weve headed south since President Biden made a presentation from israel about a 45 minutes ago. Dows up 170, nasdaq down 130. Look at a the price of oil, going up. Thats a key indicator of whats happening right now in the mideast. Maybe the war expands, oil goes up. Look at the 10year treasury yield, thats up too. Its now at 4. 91, getting ever closer to 5 . Thats a negative for stock stocks, look at the 2year where, well above 5 . In fact, its at 5. 22. Thats the markets and now this. 2023 is a most unfortunate echo of 1979. The carter presidency then and the biden presidency now, both challenged by the mullahs of iran. In the 70s jimmy carter bent to pressure and told the shah of iran he could not forcefully put down the revolt led by the ayatollah khomeini. The is shah went into exile. How maney called america the great satan and took american diplomats hostage. That crisis wrecked the carter presidency. He was defeated in a landslide by ronald reagan. Iran is now challenging biden. It could wreck his presidency a too, and we got here because biden showed the same kind of weakness that jimmy carter showed all these years ago. January 2021, biden walked into the oval office and ended Americas Energy independence. He played all the green cards to cut back on oil. That play played right into the hands of iran which wanted to raise its own oil production. Do you think they care about co2 emissions . Then biden tried to go back to obamas nuclear deal where trump had stopped cold. And to persuade the mullahs to may ball, he allowed the Oil Sanctions to collapse so the iranians spent the revenue propping up their proxies, hezbollah and hamas. They attacked american bases, and biden hardly responded. In short, biden appeasedded our enemy. We are where we are now because iran cannot be appeased. It can only be subdued by making them afraid as trump did. The question now is, how will biden respond if and when iran attacks and kills more americans . Their proxies have already killed 30 of us, is and many more are at risk. One year until the election, and once again an a american president is challenged by iran. Appeasement doesnt work with the mullahs who have no problem killing their own people to stay in power. Third hour of varney starts now. Stuart that maccallum with us this morning. We just heard from the comment from the president. Any comment . He said exactly what the israelis would want to hear. He hearkened back to world war ii, to the nazis. He said the world hooked away and did nothing, we will not do that again. We will stand by you. And i think those are powerful words coming from an american president. With regard to he also said that his highest priority is to get the hostages back. And i think its excellent to draw the parallels that you just drew between the carter presidency and 1979. Speaking with bob dietz last week, dana and bill spoke with him, and i jotted down something that he said because he said every u. S. President who extends his hand the iran gets it slapped. I think thats very true. We certainly saw that with jimmy carter. And i think the interesting dynamic thats going on right now is that iran saw what happened during the trump administration. They saw all of these alliances growing with the Abraham Accords, with the arab states and potentially even with saudi arabia. All of that was isolating iran, right . So, and i think that there was a reason and an intention to the brutality of this attack, because it incites so much anger on the part of israel and the part of the United States. And now we see whats happening. We see the arab states, some of which have become, you know, weve built alliances with over the past few years where theyre also now chanting death to america. So iran, which became very isolated, is now feeling a little bit of support from its arab brothers out in the rest of the region. And that is a problem. And i think what an american president needs to do the at this point so to remindal all of those countries why they wanted those alliances. There is good and bad despite religious differences. There are terrorists and there are nonterrorists. There are actors in all of these countries who want a future. Saudi arabia wants to be central to that future. They wanted israel to be in that with them. And iran is, i think, having some success with the fact that they have had this amazing uprising of outrage, right, that they have provoked from israel and the United States and justifiably so. Stuart well, do you think that iran im sorry, do you think that israel is losing the pr battle over that hospital blast . I think ultimately they will win it. If i think that the evidence that they can show that the, this bomb was launched from inside of gaza saw, i think that they have already begun to show video, and i think that they will eventually be able to prove that this was a gazan armament. Stuart will they convince arab states . Theyll never convince hamas. Its too strong of a propaganda point for them. It is heartbreaking to see what happened at this hospital. It is, i think, a mistake for American Congress members to come out and draw conclusions stuart so quickly. Before we have evidence, you know . How dangerous. No one needs to incite this situation more. Than it already is. Its bad enough without members of Congress Starting to shoot their mouths off before they have an honest assessment based onst u. S. Intelligence of what actually happened. Very, very dangerous. Stuart were going to be watching you at 3 00 eastern time only on fox with martha. Thank you, stuart. Stuart good stuff today, thanks. Back to the markets, please. Weve got the dow off 170, half a percentage point, nasdaq down about 1 , threequarters of 1 down for the s p. Heading south after the president s presentation. Mark tepper with me. In fact, hes here for the hour. Later this afternoon were going do to get earnings reports from tesla and net this flicks. Tesla, what do you expect . Its always tough to forecast whats going to happen with teslas stock price because with it tends to trade on sentiment more than valuation. Investors are going to be focusing on the downward pressure were expecting on their margins because, as we know, demand weakened or softened a little bit, and theyve had to begin cutting prices on a lot of their lower e level models. Well see what happens there, but the consumers have become quite a bit more price conscious over the course of the last few quarters. Stuart i was astonished to hear the price of the model y is 25 lower than a year ago. That deflation, not inflation, right . [laughter] stuart which other product has been cut by 25 in price . Deal with netflix, please. Netflix is interesting because, you know, obviously with the actors and writers strike, some of the criticism on netflix is maybe theyre in the going to be able to roll outed good, high Quality Content which they normally do. But im actually looking at the flipside of that argument where now since they havent really had to spend much money on content, theyve been able to make Recycled Content work. Suits is a show they released in the middle of the summer. That show came out in 2011. Is so they released it in the middle of 2023, and it broke a bunch of streaming records. So im actually expecting that netflix could surprise to the upside based on the fact that content spend was likely down, subscriber growth and revenue still good. Stuart quick comment on what i think is the key issue of the day, thats rising Interest Rates. Ive got the 10year treasury now yielding 4. 91. Thats the highest yield since 2007. And im looking at the 2year at 5. 23. Yeah. Stuart thats not good for stocks. Theres just no way thats a positive. No. I mean, investors do have an opportunity, certainly, to buy treasuries. And i think on the 10year, i think its going to go up above 5, 5. 1. Its heading in that direction. But this stock market overall, look, if you went into this year positioned for a recession which everyone in the world predicted, you got your face ripped off. Ly, i feel like similarly, i feel like if you go into 2024 positioned for an economic boom, you might suffer the same fate. Investors have to make sure theyre buying allweather stocks that can perform in any economic climate. Stuart look at that, 5. 23 on the 2year lauren thats a 17year high. Stuart lauren, youre looking at visa and mastercard. That. Lauren yeah. The wall street journal is reporting that the Federal Reserve is preparing a proposal that would lower the fees that the merchants pay to Card Companies and the banks when you use your deck can bit card. A meeting is next week the vote on this proposal, and that would mean that the card issuers make less money. Both stocks down over 1 president. Stuart 1 . J. B. Hunt, freight carrier. Lauren net profit dropped, theyre not shipping as much because customers have Bloated Inventories and is are bringing this less new products, down 8 . Stuart spirit aerosystems. Lauren so they make the fuselage for some of the boeing planes. This is been Quality Control issues with that. Spirit now has a deal with boeing that would include some price increases for them and a cash advance. So its main customer, boeing which is up almost 2 is helping spirit through its production problems. Spirits up 23 on this news with boeing. Stuart not a bad gain on a down day. Thanks, lauren. Biden says he has not seen, quote, any evidence that israel is to blame for that deadly strange on a hospital in gaza. The Mainstream Media was very is quick to pin the blame on israel. Well get into it. In washington lawmakers will begin voting on a speaker any moment. This is causing serious damage to the Republican Party. David webb on that, and thats next. sfx stone wheel crafting the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. It still does. What can you do with spy . Meet the jennifers. Jen x. Jen y. And jen z. 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I cant speak publicly about all the details, but with let me assure you, for me as the american president , theres no higher priority than the release and safe return of all these hesages. Hostages. Reporter the president has also seen intel about the deadly bombing at a hospital in gaza last night that makes him believe hamas is wrong and the bomb came are from terrorists in gaza, not israel. This is what he says makes him so sure. The data i was shown by [inaudible conversations] reporter biden is willing to call out hamas by name for now, but hes very clear that moving carrier groups and other assets to the region is to deter state actors who may try to take advantage of the war. My message to any state or any other hostile actor thinking about attacking israel remains the same as it was a week ago, dont. Dont, dont. Reporter notable that he did not call out iran by name when hes talking about these other state actors who might try to take advantage. The press pool traveling with the president just sent us an update, they are at the airport, we expect to see air force one wheels up any minute. Stu . Stuart thanks very much, peter. David webb with me now. Obvious question, david, is the president staking his presidency on this trip . I think he is. I think he is quite a bit with because, you know, when domestic issues fail or to you fail domestically, you go overseas you and i have talked about this for years or vice versa. And president s, wartime president s tend to win on the popularity if its a successful prosecution of a war. Woodrow wilson, fdr, look at wartime president s over our history or wartime leaders. So i think hes staking a lot on this politically. What is the benefit of going to israel . Hes invited by bibi net an a ya i hue, i understand that. Abdullah is not meeting with him, the palestinian leaders are not meeting. Hes not going to el sisi. They tried to float this idea, excuse me, of the president taking the middle east oneonone and dealing with it, and he just isnt. Stuart we are told that hes going to be speaking a aboard air force one with abdullah in jordan, well sissy in egypt and with el sisi in egypt and with abbas from the palestinian authority. They wouldnt meet him in israel, but they will talk to him on the phone. Hes trying to rescue the idea that, hey, you neighbors, dont join in. The great negotiator, you know . Biden comes to the middle east, talks to everyone. Hes overturned the Abraham Accords, hes destabilized by his boils in this policies in this want, this need for a deal with iran when it comes to the Abraham Accords and the stability that polled, neighbors began working together out of mutual interest. So now hes trying to pretend he can talk to people in this . Abdullahs not taking refugees, meter is el sisi, neither is any other nation. They cant have the optics of being seen with biden. Stuart still trying to get that changed on air force one as we speak. I want to change the subject here. Lets talk about the speaker vote. 20 republican voted against republicans voted against jim jordan. It looks like 4 of those holdouts will vote against jim jordan again in a few minutes time. I think the vote has already started. This is not good for the Republican Party, david. Look, at this point and ill draw the difference between consensus on a leader and consensus on legislation when it comes to legislation, you get christmas trees. Everybody wants their piece of the my. Here you have a group from the appropriators, the defense hawks and some many biden districts that have voted against jordan when you break down who the 20 are, they chair committees. With the jordan vote, its consensus on moving to the next step, and then you can work towards legislation. Look, its messy, its dirty, i dont like the way it was done. I was not a fan of mccar theyre, but the mccarthy, but the republicans need to get it together. A vote for scalise goes nowhere, mccarthys not coming back if anyone else someone may want to support. Stuart the democrats are going to have to step and elect a speaker and that will weaken the republicans even more with the base. Stuart of course. Forget the democrats, theyre going to be weaker with the american people, the republican base. Stuart youre a florida guy, you live in miami. Yeah, proudly. Stuart right. Matt gaetz is a florida guy. What are you going to do with matt gaetz . I mean, hes blown everything up. Weve got, i mean, the republicans have got nothing here, and theyre going to have to give even more away to the democrats. Look, im no fan of mccarthy but what gaetz did, i think, was more disruptive than effective. And if you really wanted to talk on mccarthy and, again, this was the rule put in place to get in the speakers chair, there were other ways to do it. Rather than this level of disruption. But now republicans have an opportunity. Youve got a looming battle over the budget stuart op