Want. The rally that emerged with a putin lifeline, stocks up, oil and gold way down. This is a fastmoving situation, every headline could move your money. Youve got to watch this closely. Varney company is about to begin. Your Financial Advisor should focus on your longterm goals, not their shortterm agenda. [ woman ] if you have the nerve to believe that cookie cutters should be for cookies, not your investment strategy. If you believe in the sheer brilliance of a simple explanation. [ male announcer ] join the nearly 7 million investors who think like you do face time and think time make a difference. Join us. [ male announcer ] at edward jones, its how we make sense of investing. [ male announcer ] 1. 21 gigawatts. Today, thats easy. Ge is revolutioning power. Supercharging turbines with advanced hardware and innovative software. Using data predictively to help power entire cities. So the turbines of today. Will power us all. Into the future. Russias president putin throwing a lifeline to america and president obama says hell look at a diplomatic solution to the crisis. The solution, syrias chemical weapons to be transferred to International Control. Syria says it supports that plan. That happened moments ago, but tonight, president obama will still make the case for congress to authorize military force, that from press secretary jay carney a few moments ago. President obama has grabbed a last minute facesaver. A poll says that the u. S. Is less respected around the world today than it was before the president took office. And the senate is in a Holding Pattern, delaying their vote until after they hear from the president and the markets could not be happier about that. The dow is set to open strongly higher in just a few minutes. The price of oil though, way down from yesterday, off 2. 64 and gold is going to start out on the down side by 21. There are other stories for you. Time is money so here is 30 seconds of what else weve got. French unions protesting patient reform, demonstrations at 180 locations could cause some disruption to public transportation, is that new . Here at home, new york city mayoral primaries underway. Bill deblasio looks like a runner, could have a faceoff with christine quinn. They want to roll back charter schools. More priorities for the mainstream media. The first familys new dog getting more News Coverage in one day than the fight for obama care got in one month. Big moves for the Dow Jones Industrial average. Goldman sachs, nike, visa, all moving into the dow 30 at the end of this month. Who is out . Hewlettpackard, bank of america, alcoa, well check the stocks and see how they happen next. Did you see this . Raphael nadel st. Petes djokovic to win his 13th grand slam title and sandra smith is right, the men are equal opportunity grunters along with the women. And congratulations, nadel. It was a terrific game. . . Um. Wheres mrs. Davis . She took an early spring break thanks to her double miles from the capital one venture card. Now what was mrs. Davis teaching . Spelling. Thats n a subject, right . I mean, spell check. Thats a program. Algebra. Okay. Persons a and b are flying to the bahamas. How fast will they get there . Dont you need distance, rate and. No, all it takes is double miles. [ all ] whoa. Yeah. [ male announcer ] get away fast with unlimited double miles from the capital one venture card. Youre the worlds best teacher. This is so unexpected. Whats in your wallet . All right. Here comes the start of trading. So lets go straight to chicago. Scott shellady is there. The syrian strike, i think, is on hold and the markets love it. Money has no morality, does it . You know what, bombs away on some other day and the market does like it. Weve seen what the oil has done and weve seen what the gold has done and the stocks are going to like it in the shortterm. I tell you what, stuart. Its a sad day. When you have thought in your lifetime that we would be let out by the russians . Were going to accept their there is the new cop of the world and were not. Its despicable. Stuart its a sad day in many ways, but the money people they dont care. Were about to hope the stock market. No, they dont. Stuart money has no morality. Were about to kick off the trading session and i think were going to go up at least 100 from the getgo. The opening trend is higher. Yesterday we closed around 15,060. And now were up 10 points and i think were going higher from there. Im looking at a board that shows me the ups and down and its a sea of green. And weve got big names that are going to be added to the dow jones 30 average, goldman sachs, nike, visa. Up on the news theyre added. Three big names are out of the dow, hewlettpackard, bank of america, alcoa and two are down and b of a up just a fraction. And these take effect at the start of trading on september the 23rd. Nicole, have you got anything on this one . Nicole this is the biggest shakeup in a decade. Remember that alcoa has been in the dow for 54 years. Its interesting to see hewlettpackard, which is doing so well this year, but the truth of the matter is those three names have underperformed the Broader Market over the latest year and they have lower stock prices. So, its interesting to see, there you have the big ones, bank of america. Alcoa, hewlettpackard out. And i was told they were considering eight changes, not these three, but eight. And they rejected them that theyre overly dramatic. Thats just nuts. Three at a time is good, right . Come on, thats happening too much. Stuart i tell you, i cant work out the math. Why isnt google in there and apple in there. How could you put in a 900 stock and 500 stock. My head is spinning, i dont understand the mathematics of the average. Nicole and the representatives of the company havent elaborated either, but the company, its a big deal. Biggest shakeup in a decade. Stuart there you go, sum it up. Big deal. Ive got to move to big names which have been moving. Look at tesla, in a few minutes, we will have a University Professor with us, says its overvalued. Tesla is up. And he says far too much. Facebook on a tear since the end of july and trading near the alltime high and up again this morning, but just 9 cents. 44. 13 is where we are. And later on big news from apple, iphones and an updated operating system. All right, come back in, nicole. The stock please . Yeah, the to being is virtually flat. Its around 505. This is an invitation only event. Tim cook and the gang from apple will be revealing the latest iphone, the 5 s. And cheaper iphones that would do very well in china according to the analysts, its supposed to come out. Stuart i think the big deal is that china, the possible china deal. I think thats the big deal. Well see about that. Nicole, thank you. The Dow Jones Industrial average up 82 points now, 15,144. The big story which is really moving this market is syria. The senate is in a Holding Pattern on syria. Theyve delayed their vote on any attack until after they hear from president obama. He speaks tonight. And now, the president has been given an out, syria about a half hour ago, we got the news that syria has agreed with the russian proposal that they put their chemical weapons into international hands. I say america is in retreat and i say theres no way were going to launch an attack in the very near future. Lets bring in former congressman colonel alan west. All right, colonel, i see this as a full retreat for america. I see this, i dont think theres any way we launch an attack in the immediate future or even the near term future . How do you see it . Youre absolutely right, its a pleasure to be with you. This is a huge strategic loss for the United States of america, an incredible Foreign Policy faux pas for the obama administration. If i were advising the president i would say do not go on air tonight and do know the give any speech tonight because you know, Vladimir Putin has pretty much played president obama. If i can use a southern term, like a broken banjo. The last beginning tonight, is for the president to say something, once again, maybe off teleprompter or something that would inspire putin to backtrack on this agreement. So, i would not go on air to speak, i would an allow the International Community and putin looks like the only adult in the classroom to get those chemical weapons under control. Stuart do you think thats possible in the middle of a civil war when you dont know the location of the weapons and dont know how many of them there are, can you really expect an International Force to move in and take control of these weapons . Really . Well, i would tell you that i believe under putins guidance, he was a much more respected tough guy. Remember, this guy is former head of the kgb. If they can mobilize a force that can get in there and do this with them being in the lead and syria is ver important to russia, thats their own warm water seaport so he does have a National Security interest in syria and he does have an interest in syria not falling to al qaeda. Stuart colonel, all that would do would put the chemical weapons under russian control. They wouldnt put them into anybody from a democracy. They wouldnt be controlling them. Theyd be russias to control. Thats the point. We have to understand who these International Players are, but in the failure of the obama administration, secretary of state kerry to get an international coalition, you know, maybe Vladimir Putin will get a right type of international coalition. The important thing is if the president said he does not want to have bashar assad able to use chemical weapons again and now we are going to take them off the battlefield, guess what, that somewhat strategic objective has been met and he has drawn himself into an incredible box he cannot get out of. Stuart yes, indeed. Colonel alan west, thank you very much. We appreciate it today. Thanks so much. First president Vladimir Putin a now the cbo is offering a life this time on obama care. And billions of dollars are at stakement and find out whats going on with the cbo lifeline on obama care at 10 00 eastern. And back to syria and the markets, ed butowsky is with us. It seems clear to me the markets like the idea that were not going to attack in the very near future and thats why the dow is now up 75 points on back of a big rally yesterday. Absolutely, stuart. In fact, the main reason the markets are up is that oil prices are down. Oil prices are down because were not going to do the strike, so the markets are reacting to all of this and i also say this, if we see a close above 1695 on the s p 500, this market is probably going to test the alltime high and go through that. So, this could be the, you know, the adrenalin rush that the market wants to see a new alltime high. Stuart but is my premise correct. This rally, its all about syria, its all about postponing any attack and maybe canceling it completely. Thats what its all about right . Right now without any question, stuart, thats what the market is reacting to. Stuart okay, now, were going to have this situation hanging over us for a while because its going to take a long, long time to get International Control of the chemical weapons. Theres going to be backwards and forwards on the diplomatic front forever. So, can the rally last . The rally can certainly last. I dont think that anybody thinks that this is going to dissolve. The markets are telling right now and a good indicator whats going to happen in the future, the market is telling you that the putin, you know, decision or what hes put together is going to hold. So, we could call this a russian rally if you wanted to. Were seeing this rally based on what the russians have done for this whole country. Stuart i said earlier on the news channel and again on fox business on this program. Money has no morality. You want to take me on on that statement, ed . Thats a tough one. I dont think that money even thinks. I think that money will go where its wanted. If people want it to go higher its going higher. Obviously its disgusting what took place there. Were so far out of the woods. This could be a rehearsal for iran a year from now were going to be watching the headlines all the time. In the short run, the markets are going higher. Stuart thats right, watch the headlines moment to moment because any headline could move these markets. Ed butowsky, thank you very much, indeed, sir. And the big board, were up. I thought maybe we would get to 100, but weve topped at a gain of 70 points thus far today. Look at the stock of tesla. You know, it really has been up on a tear so far this year. What is it, up 375 this calendar year . However, after the break, weve got a finance professor. He says the stock is way overvalued and well ask why he thinks that in a moment. announcer scottrade knows our clients trade and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Voted best Investment Services company. Always go the extra mile. To treat my low testosterone, i did my research. 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Ask your doctor about e only underarm low t treatment, axiron. This man is about to be the millionth customer. Would you mind if i go ahead of you . Instead we had someone go ahead of him and win fiy thousand dollars. Congratulations you are our one millionth customer. Nobody likes to mi out. Thats why ally treats all their customers the same. Whether youre the first or the millionth. If your bank doesnt think youre special anymore, you need an ally. Ally bank. Your money needs an ally. The attack on syria evidently on hold. The market likes it and its up 6 a. And the market likes that in terms of oil, its down 2 bucks lower 107 and gold is down, look at this, 22 per ounce lower at 1364. A big name you know, crocs says it will not make as much money as it initially thought. The company says that business in america looks weak. Not good news for the stock. Its down nearly 4 . All right. Lets move on to tesla. You know, that stock has been on a tear and up 375 this calendar year, but our next guest says the stock is way over valued, maybe by 100 bucks and he suggests that the stocks fair value is around 67 a share, way below where it is now. Here is the finance professor at the sterns school of business at nyu. Professor, welcome to the program. So its way overvalued and should be 100 less. Youve got 30 seconds to make your case. I think the key to remember or draw a distinction in prices. Prices set by the market, supply and demand and value the places of judgment. I want to emphasize this is my personal judgment based on my views of the company and i have an optimistic view of the company. As large as audi. Stuart as large as audi. And margins of the porsche thats up there. The value i get is about 70. And there are lots of risks getting there. Stuart why is the thing valued at the market price is 160 odd. Why so much above what you say is the value price . Theres one thing ive learned in 20 years with markets, that you never try to explain the price. The price is set by supply and demand and this is the momentum stock. Driven by people who love the product and essentially using it as justification for pushing up the price so i think that explaining the price is almost impossible to do and i dont try. So my personal judgment, i wouldnt buy tesla. I wouldnt talk anybody else from not buying it because thats their judgment. Stuart okay. The guy who runs tesla, the founder, elon musk, hes go the some outthere ideas about technology and technology in the future. Is that part of the buildup in the price, the talking up of the price . I think hes a great ceo. Ill be honest, hes got more charisma than most of the next 100 top ceos put together and he has the capacity to make tesla a company that can change the automobile business. So there are potential pathways i see for tesla to get up to 250 per share, but those path ways are narrow and difficult to navigate. I dont want to invest on the assumption that they can find their way to success. So thats why i said its a personal judgment. For those people who feel those path ways are more likely and available. You said the company could be as big as audi. That would be a Market Capital of 65 billion . The revenues. The revenues, they would sell 65 billion worth of electric cars a year . When . Thats ten years up. So, thats, i think, whats holding the value down. Now, is to get to audis revenues and to get the margins that porsche has, you have to factor in how much you have to wait and how many risks are along the way and you get to knock down the value. And thats why im reluctant to jump into the stock right now to the 20 billion market cap. Youre iconoclast here. Whats the reaction, do you get hate mail . I do get hate mail. And people listen to the point, people have to make their own judgment and what i want to do is throw my valuation on this. Emphasize this is my value, not the value. Youre not retreating youre saying 60 rather than 160. I dont have to retreat. To are my decision, i have to trust myself. But youre out there with this valuation. Thats always the case. Youre out there. And thanks very much for joining us and we really appreciate it. Thank you very much. Stuart my take on syria and why the good guys are in retreat. Thats next. I think we should explore and exhaust all avenues diplomatic resolution of this, but i think its important for us to keep the pressure off. Here