Obamacare has failed us. Dagen latest don repealing facing obamacare ahead. United flight claims the engine bursting into flames just moments after landing in denver. The final frontier will have to wait. Within 10 seconds before liftoff. Moving onto another elon musk company, tesla, lovers of the electric cars rejoicing a long way to the model three could soon be coming to an end. Details of the Company Plans to begin production this week. A shorter dan wall street. Steve futures are up across the board with dean on the dow futures. First to the year for the markets around the world. Performance globally since 2009. Markets close at 1 00 p. M. Eastern in europe stocks are heading higher across the board. In asia overnight it was green across your screen as well. Animation reigning supreme at the box office. What about those looking for a little red, white and blue on the big screen . We are breaking down the top patriotic films. All of them so much for joining me this morning. Independent women were ceo Heather Higgins treats all weekend. Are informative. Jon hilsenrath is here. And right at trading partners chief strategist michael block. I love being surrounded by some of these smart people on monday, the day before the holiday. Same here. Dagen you learn something when youre around really incredible people. All i learned this week in his fireworks fireworks when there is a lowhanging [inaudible] dagen where are they . You cant see them. All you can is the low ones. To our top story this hour, speaking of fireworks going fizzled in some places. Mom state governments across this country failing to meet their july 1st budget deadline. Spending standoff between Chris Christie and legislators causing a partial shutdown in new jersey. Residents feeling defects after parks and beaches were closed after the remainder of the holiday weekend. The Liberty State Park as well. Watch what they have to say. Theyll fix problems, not create problems. The reason the government should ever shut down. Government for the people, by the people. They couldnt get together in time to save the bacon for a lot of people. Dagen closures did not stop the governor. Christina the governor. Christina similar spotted other state on residents of the island each state park causing a Group Visitors to take to twitter. The governor of maine also implementing a partial shutdown until today. What do you make of these budget impacts as a jazz shows by the way theres Chris Christie with a photograph sitting on the beach. We could get into what happens with these shutdowns because if the Democratic Assembly leader who was responsible for the government shutdown. The shutdowns are never popular in a something for the republican government in congress to keep in mind as we head into the fall and have a potential debt limit problem. It just doesnt work for the public when they dont get their beaches and parks. To be very fair, a lot of the time they do this shut down for political effect they deliberately closed the things that are most visible to the public said they are trying to create the pressure. Dagen the situation in new jersey is interesting because it shows how this complete gridlock over previous things you would think republicans and democrats would be limited on board with. The Assembly Leader is a democrat and he wont vote on the budget that the senate in new jersey past. Chris christie wants access surplus funding from verizons Blue Cross Blue Shield which is a nonprofit to go for things like rehab centers. That is the gist of the fight in new jersey over the shut down. Its appalling. This acrimonious nationwide and it needs to stop. We see in trenton, name, everywhere else. They just work together. Small things like this. Look at christie on the beach. You need to think about what this means for his party. That is a state park. Its one of the publics. He was actually asked about it. It was just backandforth over the weekend. Thats ridiculous. You think some other place would lay low. Again, not just new jersey. Maine, connecticut, illinois. Theres been a culture that assumes some plays in creating the giveaway and giving themselves not only to what people want, but to deal with pensions for Government Employees they are unsustainable. These are their obligations now coming home to roost. This isnt just the states. It is pervasive in the way governments have irresponsibly negotiated. The good news is state balance their budgets on an annual basis. Theres some tricks and gimmicks along the way, thats a much different way than the federal government which runs at hundreds of billions of dollars every year. Will the funds the national economy. Dos extenders saying we can get rid of the tax hike on obamacare. Thats going to be their second point in favor of a tax hike. Thats essentially what they are saying. Why are you laughing at me . This is something we cannot get on board with. The strength of the market to exist at the lowest level in years. The base has never been rounder. We are coming off a really great market. If the jobs report coming out every week. Is a little puzzling because the market rally in the last year on trumps election hasnt been able to move his agenda to go up Global Growth panic in the bond market last week about the ecb and other Central Banks with driving a massive amount of christ the stimulus. Even with ecb they are still pumping into the market. Have a different viewpoint. The reason i was laughing at the last segment was we are here talking about dagen you were laughing at me. No, were talking about curbing spending and how entitlements are out of control. The bond market is not really punishing not. The bond market has been very strong to the point there is excessive bullishness and thats when we started seeing investors look for an excuse. I still say that the ecb comment were taken their own way. I dont think ill start taking anytime soon. We see the data better. To me the bond market will have a shortterm response that is polish. The other big story in the market as the dollar stops a lot. Dagen thats the front page of the journal today, the full story. Absolutely. One of the options as bad as the u. S. Trade position does better in an environment where the dollar is weakening. They could see growth from export and some downward pressure. We are seeing u. S. Industrial stocks do a lot better. Thats how you do it. Dagen want to move on to health care. Also major by senator rand paul now said to be looking into alternatives after Senate Majority leader Mitch Mcconnell delay that vote. Heather, your take on this. I from a laymans perspective cant get my head around the idea that is repealed and replaced. I dont know why we are talking about it quite frankly. Rand paul has a base that wants repealing many of them dont want to replace. Remember, a libertarian is as we were largely fine before and we shouldnt be starting from where we are now. We should start from where we were then. If you move to repeal coming start from where you were then. I dont think politically that is remotely going to happen. You might be closer to the ben sasse model which is repealed late in the implementation was some sort of follow on. The real calculus is going to be when politicians look at this, are they going to be more punished for doing nothing are both a few more punished for doing something that is maybe not everything they had hoped to do all in one fell swoop, but it is better than where we are now. I suspect where they come out is on the latter. It is not perfect, but remember this is a three phase reform after. They are not getting as much as they would like on this because they are doing it for reconciliation with doesnt let them get at the title i rights. The largest challenges republicans are terrible at talking about benefits of what they want to do. They get into the process and have a process discussion that they dont understand how to talk about all the increased choices and lower cost they are going to be providing people and you get these mythological claims by Bernie Sanders and people who are going to be dying of ignoring all the people presently uninsured and not writing. These claims about women being hurt and all the rest of it that are just not true in the left is the better narrative. Dagen and there are two things that earn me in terms of the language youre from republican governors like john jacek and some of these republican senators like corker or rubio were rounds last week talking about i am thinking about not repealing that income tax or 3. 8 income tax in obamacare. Kasich is trying hard times about Medicaid Budget state has 43 of the budget on medicaid. When he is sitting around spending 14 on education, kindergarten through grade 12 education. Again, they are not willing to cut spending and theyre willing to get behind a tax increase. Ideologically thats not conservative, not republican, it democrat. Republicans are just as capable. Its money and they wanted to come into their states. Governors expanded medicaid of the federal governments expense pertaining it would never come home to roost, which it clearly was going to. One point about the repeal and replace is not possible legislatively. If you try to repeal in another reconciliation bill that attorney taken up for tax reform. You can do it logistically. You have to do it all at once. Dagen thank you for the wisdom. This ideology and the epicenter of the epidemic in this country. They have to do have to deal with that otherwise theres angry population in ohio same whether youre going to do about this . Thats a big issue. Trades are coming upcoming scare on the runway after united plane catches fire on the tarmac. How passengers escaped those flames. The tesla model three almost ready to hit the road. The day that drivers will be able to take a stand, straightahead. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. Whatever it takes, wherever i have to go. Im beating this. Breast Cancer Treatment is continuing to evolve. Ctca is definitely on the cusp of those changes. We really focus on taking the time with each individual patient so they can choose the treatment appropriate for them. I empower women with choices. Its not just picking a surgeon. Its picking the care team, and feeling secure where you are. Visit cancercenter. Com breast Appointments Available now. Dagen a scary moment for passengers aboard a jet in denver. Cheryl casone has the details. Reporter good morning, dagen. Incredible pictures weve got for you. A United Express truck caught fire after landing at denvers main airport yesterday. The plane was in bonn from aspen with more than 60 people on board when the left engine went up in flames. Another picture for you if the check. Likely all the passengers on board were safely evacuated. Passengers were taken back to the concourse. Part of what we do is assist the airlines in getting passengers back to a safe place. They quickly reached the aircraft and distinguished a fire in the rear side of the aircraft. Reporter the ntsb is investigating what caused the fire. Space at scrubbing the launch of a third rocket in just nine days. The rocket carrying a powerful Communications Satellite that the launch called off just 10 seconds before takeoff with the glitch in the rocket system. Heres how the whole thing went down. 10, nine we are antit. Minus 10 seconds. Weve had an abort in the countdown sequence. Reporter of course we will be watching what happens with that. Stay with the story because tesla model three sedan is a lowpriced alternative to the counterparts have passed on regulatory requirements for production two weeks ahead of schedule. The model three will only cost 35 grand and tesla expects 5000 per week by the end of this year, dagen. Dozier elon musk headline for this morning. Dagen cant get away from it. Thank you so much. Coming up, could mickey mouse have a new home . By verizon is reportedly ironing a deal with disney next. And a fresh take a target. 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Dagen new takeover target for verizon. Eyeing the purchase of disney. This is according to a report in the new york post. David cusa, founder and ceo of capital management. Holy moses. I guess they want it . Yes, they want content. When we look at where all this is going and the telephone companies, they want content. Im always suspicious that these deals when you try to marry a content provider with a service provider. The classic one with aol time warner. One of the worst deals of all time. And yet, you still see it happening. How do you explain that . Well, they are looking at what is your path forward. In a case like this, that content is needed to build out and go forward. What netflix is doing, they say we need content, too. But now they are a major great content that people must have. At t by time warner again in verizon for disney. The problem is that Something Like disney, every time the stock is down, the consumers are cutting the cord. They dont need espn anymore. I think thats really the quandary here. Just shooting in the air. The difference with netflix is its doing it organically. Not going out and buying some other content provider enfolding into the business. Maria its netflix and amazon and google and facebook and apple potentially getting into the original content business. The quality goes down in the costs go up. Its something all of these companies are grappling with. Traditional media companies, Traditional Television networks. So lets talk about the nasdaq just now. The seven month winning streak. Weakness in technology lately appeared where does the market go from here, david, still up more than the other market gauges in the u. S. For the first half of the year . Theres a reason for that. When we look at the markets overall, this is the year of growth over value. Struggling with how much the economy is going to grow, struggling with trying policies that will get enacted. The value place did so well after the election in the first half of the year. Its been the companies to have the secular story and that leads us to technology. Its been stronger second half. It continues to be strong Going Forward and there were people concerned about how far Technology Stocks have come. They look at price. Lets remember valuations back in 2000 we had no please nosebleed valuations. Now we are run 23, 24, a little bit higher than the s p 500. When the elected earnings, up 7 of the sector this year, 10 next year, its what you want to stay with. Have you explain what is driving the market right now . Is it their names because when you look at other factors that matter, they go up not only in the United States, but elsewhere in the world. The president s agenda which was the original impetus for this value is moving slowly if at all. The market cant look at that. Why stocks continue to rise . The important thing we have this year versus talking about this a year ago, we are coming through. Negative Earnings Growth. We now have very strong earnings. 14 Earnings Growth in the First Quarter looking at 6 to 8 in the second quarter. Thats a slowdown from 14 to 6 . That is still Earnings Growth. We have Earnings Growth, in the long term that the stocks trade on. Will trade on interest rates, policy over the shortterm, but the most important fact or his earnings. What does it look like in the second half of the year . For the entire year, 8 to 9 Earnings Growth for 2017. Still a decent second half. Dagen analyst predicting earlier next year. Congratulations on your bearings ranking. Dagen in the new york stock exchange. You are keen on emerging markets as well . Keen on emerging markets as well. We have valuations supporting the u. S. With earnings supporting valuations to some degree in the u. S. But we still have a show in the u. S. Cyclically adjusted price earnings multiple of 30. We look across to emerging markets. That number is only third team. So we have a lot better value. Measure of valuation, measure our stocks expensive or cheap . You can say by that measure stocks are fully valued. On a relative basis we look overseas. We think that its going to be a great sector for the next several years. Dagen david, thank you for being here. David kudla. Eliminating the hermit kingdom nuclear program. A shakeup at microsoft. The Company Reportedly said to cut sales jobs this week. Other tech giant is trying to compete with apple. That is ahead. Feel the way i feel man, i feel like a woman who you can leave worry behind when liberty stands with you™. Liberty mutual insurance. [vo] progress is seizing