Apple will build 80 million iphone 6 before christmas. They have bigger screens, which are popular in china. And happy first birthday to Prince George. Varney company is about to begin. Stuart i promise we will bring you clarity on the major defeat for obamacare in just a few minutes, technical, legal thing but it is a bombshell for obamacare. Full clarity moments from now. Check the big board, up 67 points, 17,118. Crisis in ukraine, crisis in gaza, flooded with illegals . The market close to the record level, the patent is holding. Quick selloff on the news, a rebound perhaps new highs. S p 500 a Broader Market indicator nicely higher, 11 points up there. For the 10year treasury, the price of gold down this morning 1307. That is the market situation. The yield on the 10year treasury 2. 47 . Charles payne is here. Before we get to obamacare, give me 30 seconds on the market. They dont care about crises, do they . Charles they care about as much as you do. Did you change your plan . Did anybody alternate weekend plans . Existing home sales number with a pretty good number. The cpi number is bogus, it is disappointing the government tells us no inflation when we know there is. It came out relatively benign. Stuart what crisis . This one in seattle, this will be his ninth in the last threelp weeks, after that he flies to california, multiple fundraise fundraisers, down to beverly hills. Attempting five fundraisers in the west coast trip. Even liberals are saying they dont like this, so why is he doing this . The president cannot command the world stage. Numerous other countries dont respect him. Returning to the world of politics, nine events in three weeks say might as well campai campaign. That is what is going on right now. Stuart i think he is raising a ton of money because he wants to make sure the senate stays democrat want to make sure that happens. He wants to keep the senate, that is what we are seeing, that is his priority. Stuart i want to get back to individual stocks, a few big names you know and they are moving. Apple gearing up to make apple screens, make 80 million of them by christmas. Reporting the sales after the bell this afternoon up 11, half a percent in advance of that. Strong profits and a better outlook, higher menu prices help them make more money, sales surged 17 despite a 6 hike in menu prices. That is a new alltime high. Up 71, look at that. 660. Microsoft up, it has been moving slowly higher the past few wee weeks, up 0. 06, 44. 89. Mcdonalds profit down, sales sluggish, and they have been hit by questions of food safety in china. Off 1. 48. Big news on obamacare, fox news Shannon Green joins us with details on what is a very Important Court ruling. Welcome to the program. I know there is a lot of legal jargon on this, we all need clarity. Break down this decision for us, please. This is a tough blow for the administration, with respect to how obamacare works moving forward. The irs interpreted the law written by lawmakers. Interpreted the law to mean subsidies helping to cover the cost of insurance could be extended into 36 states which chose not to set up their own exchanges. Plaintiffs argued was the nation of the law. Subsidies will only for states to have the exchanges. Federal Appeals Court in d. C. Agreed with the plaintiffs. They say within constitutional limits, congress is supreme in matters of policy and the consequence of that supremacy is our duty when interpreting a statute is to ascertain the meetinmeaning of the words of tw duly enacted at the court work through that, looking at the history and looking at the language. Although the decision has major consequences, our role is quite limited simply deciding if the irs rule is a permissible reading of the Affordable Care act. They said it is not, they cannot be extended. They disagreed saying the plaintiff had only one goal, this case is about not so veiled attempt for the formal cataract. All three of these judges knew there was a thing of the impact from the decision, so now we wait to hear from the administration. Stuart i am terribly sorry, i am listening very carefully, what i am picking up is this, in those 36 states people who thought they would get a subsidy dont get the subsidy. 4. 7 Million People, they are not going to get the subsidies, is that accurate . That is accurate. This questions of what will happen in the very short term future. This has been sent back the lower court, they may say asking for an injunction, the government may ask for clarification saying can this be on hold while it is being sorted out. A lot of levels left for this case, where it may go and where it may end up. Stuart i am told the 4. 7 Million People are not subject to the individual mandate now, is that accurate . A lot of questions of how this will play out whether employers will have to comply with the mandate, whether individuals will have to comply with the mandate, so definitely scramble things up and shows you how a law, something of this magnitude, rushed through as quickly as it is, these kind of things are bound to happen. Stuart it is chaos, isnt it. Your withdrawing subsidies, thought we were going to get them and not going to get them, 36 states involved, that is absolute chaos. There is. Questions of the federal government will have to do some rearranging to make sure they get the policies they think they will get. Stuart what a situation, we thank you very much for explaining all of this. We are not legal types. Thank you very much, indeed. Thank you very much. Chaos with obamacare. You are going to harvard. Chaos. That is right, chaos did it effects 86 of those who signed up with the obamacare exchanges. We could see this all unravel. Stuart all right, you dont have to add anything. What a day for news, i tell you. Strong numbers from netflix, really strong numbers, they doubled their profits. So, nicole, why is the stock down . Give me 50 million. 50 Million Subscriber mark, that is huge for netflix. The expansion plans in europe are little bit more costly than anticipated, and that is eating into netflix profit. However, the big picture as they continue to add subscribers, continue to expand, we have noted emmy nominations one after another, house of cards, orange is the new black, but as you noted, it is cutting into their profits for these marketing expenses as well have been a Little Pricey and as a result to the downside. Over the oneyear mark 72 . I dont know one shareholder who would say that is fabulous, a good move. Harvard law, did not get to congratulate her, think it was last week, so way to go, we are so excited. I appreciate that. Stuart but she will join us by remote whenever possible. Are we ready for this breaking news at this point . We are just getting together a story that is breaking as we speak, hold on for a second. They made a ton of money, the stock is down, netflix is not so special. It isnt that special. The ceo except for the big club a few years ago when they split the streaming mail business, that was a bit of a stumble. It is a brilliantly run division. Stuart it is leading the streaming revolution. My job is to tell investors what is good and what isnt. Looking at it, it is a certainly successful business. But the future costs are piling up pretty quickly, that is what we saw today. Beating earnings, if you measure it on the basis of the 48 million paid subscribers they have, on the basis of the bottom line, it looks great, the 32nd time they have beaten analyst expectations since 2005, if i were a betting man i would make that bet every time. Stuart hold that thought for a second, Delta Air Lines stock on the screen. Delta has cancelled all flights to israel and definitely citing rockets near tel aviv airport. That news just in, delta stock up 1. 5 on that news. My apologies to you, spencer. That is important breaking news. Now then, are you telling me netflix over 400 per share is overvalued . That is what i am saying. He is a brilliant businessman, they have done a great job, i am not knocking him, they want to become the next hbo before hbo becomes the next netflix be at i dont know if you subscribe to hbo, but it cost about 15, double what you would pay for netflix. Hbo only gets half of that. The Cable Companies would like to carry the broadband into homes a third of which is chewed up in prime time viewing hours by netflix alone. They would like a bit of that income. With Net Neutrality they would like legal rulings to get a cut of that, some compensation for the broadband they are providi providing. The programming, orange is the new black, house of cards, huge hits. They are doing great. Hopefully they will be as successful as what they have had already. That costs a lot of money. They need to pay up for that, this is going to escalate rapidly in order to keep subscribers and gain new ones. Stuart so you are not surprise netflix stock is down 18 points, youre not surprised by a downside move . That is what i expected. Stuart thank you for sharing your expertise with us. Thank you. Stuart the left thinks it is a failure, kansas lowers taxes. They say you shouldnt do that. Stephen moore says hold on a second, those numbers are wrong. The dow is up 76 points, 20 points away from a record high. [ male announcer ] Identity Theft. Its one of the Fastest Growing crimes in america. In fact, theres a new victim of Identity Theft every. Three. Seconds. So you have to ask yourself, am i next . One weak password could be all it takes. Or trusting someone you shouldnt. 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How about that, say goodbye to lower gas prices bid and kansas governor cut personal and Corporate Income tax rates to stimulate the economy, however revenue down almost 6 , and the left is having a field day with the core job growth. From washington, chief economist with the heritage people. Stephen, this is important. There is a battle between the states, antibusiness states versus low tax probusiness states, kansas falls in the latter category and not doing very well, you say why . Yo you are writing some ricen a situation. That is what my book is about with art laffer called the wealth of states, so many businesses are moving to the low tax, low regulation states mostly in the south and i am a little biased because i actually helped Governor Brown put it together with the taxwriting kansas for small businesses, it is a very good deal for small businesses. The left sees upon this, it is not working, a downgrade, only in place for six months, little early to declare this thing is a failure. Talking to the economic people, they say these tax cuts are bringing businesses and the state, they have had more Economic Development in the state this year than any in the region except oklahoma and they have a big oil boom going on. Stuart your prediction is given some time, a year for example, you will see job growth and Revenue Growth in the kansas economy, that is your protection. Yes. Wichita will never be beverly hills. A lot nicer places to live if you want to live in the mountains or the beaches then kansas. If you want to be in the midwest, kansas has a very strong Economic Development program. It is interesting nobody on the left talks about the neighboring states, my home state of illinois, which is a complete economic disaster, and they raise taxes two years ago, more bond rating instructions than any other state area did stuart i was going to ask you about jerry brown may be running for the democratic nomination. Deal with that really fast, will you . California is finally getting a recovery after four or five years of being in any credible slump. Now theres talk of jerry brown may be the democratic savior. A huge boom going on carrying the rest of the state. It would be interesting after all these years if the governor ran for president again, what is it . Stuart yes, it would. You have to talk about this appeals ruling, you offered subsidies, you cant get subsidies. It looks to be like a huge defeat for the financing of obamacare, and you say what . You hit the nail on the head for those millions of americans who thought they were going to be getting a subsidy to pay for their Health Insurance, they are not getting the subsidy, they cannot afford the care, lot of them will drop out of the program. We are back where we started. Stuart we covered a lot of ground and we appreciate you doing that. Up next, your reaction to my interview with a lawyer that just one method 23 in dollars lawsuit against tobacco. Dow up 24 and rising. Loud and clear, they said they will not get away with this, you have been killing people for a number years. Stuart a law that says tobacco is illegal. You dont need a law to do the right thing, morally to do the right thing. There should be a law that says dont target our children . Stuart that was just part of our debate yesterday. One of his clients win the 23 billion punitive damages, one of the biggest hits against the tobacco ever. Our viewers have a lot to say. I will start with ron who says this, i think the jury system in america is broken. This punitive award is exorbitant and should be overturned. People should be accountable for their actions. Darrell critical of my action says, stuart, you lost me on make a law to ban tobacco. This is america, had a right to be is my body with sugar, salt, nicotine, and alcohol. They are bad for a person, but if i want to abuse them, that is my business. I agree with you, darrell. When i said have a law to ban tobacco, i meant we should not be banning tobacco by lawsuit and by jury. If we collectively think tobacco is a killer, pass a law and ban it, that is what we should do with a vote, not the legal system. Thanks everybody for your comments. In the next hour, the lawyer you hate to love, he will give us his take on that lawsuit starting in the noon hour. Whole lot more from mark as we well. I have some good news for you, look at that little fellow be at Prince Georges birthday. Happy birthday, Prince George. It is your i will start with you, charles. Charles greatlooking kid, congratulations to everybody. My grandson was baptized on sunday and reminds me of it. Stuart i thought you are going to come out and say i hate the royals. Okay, harvard, what do you say . I much prefer Prince George to the american royalty, the kardashians. Stuart that is good, you can stay. Chaos, prorussian militants shooting down passenger planes, violence in gaza, and where is president obama in the midst of all of this chaos . Another fundraising blitz. Karl rove weighs in after the break. [ male announcer ] once, there was a man who found a magic seashell. It told him what was happening on the Trading Floor in real time. The shell brought him great fame. But then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their Trading Platform. So the magic shell went back to being a. Shell. 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