Want and fix obamacare and move onto tax cuts. Its a contentious legislative schedule, but it has begun. Second headline, you might not like the president s style, but you like his handling of the economy, surprise, surprise. Its up sharply in a month. Who knew. Republicans must unite to get it done. Democrats have to be careful about blocking trumps popular economic policies. And for investors, the trump rally is still on hold. Politics and money, thats what we do. Varney company is about to begin. It is obamacare gone because we repeal all of those taxes, those mandates, those subsidies, theres nothing left there. And instead, we give them the same tax break that we give workers at big businesses, its obamacare light, it retains a significant part of obamacare, retains the cadillac tax. Retains a form of the individual mandate, instead of paying the government youre going to pay the Insurance Company, but it also creates a new federal Entitlement Program and gives it permanent increases of about 5 at least a year. Stuart he didnt like it. Well, you heard it there, the g. O. P. Is indeed split over this replacement for obamacare. Congressman brady as you heard, called it obamacare gone. Senator paul says its obamacare light. And can they resolve this split and get a deal done fairly quickly in congress, yes or no . Yes, i think they will. Stuart oh, okay. I think that part of is that rand paul has to realize the entitlement was already created, thats what happened in 2010. We cant, much as we might like to, we cant pretend that the Obama Administration never happened and so, i think what they have to do is focus on how do you reform this thing, how do you inject free Market Competition back into health care. Well, theyve got a lot of negotiating to do. A lot of horse trading is going on because i mean, theyre going to flash this out in two committees as i understand it. Thats right. And then present the full bill before the house and again, brady says it will be within weeks, congressman ryan, speaker ryan says by easter, thats about five weeks away. Thats a very ambitious schedule, but the republicans have to do it. If they dont do it, im saying theyre toast next year. They have to deliver and as you said, that Brady Committee also has to do the tax cut. A lot to get done here, they have to move on obamacare. I think what conservatives in the house need to do is accept that youre not going to cut everyone off whos currently getting a subsidy, but just look to add to the bill draft, which is basically saying, instead of washington dictating choices, let the consumer. And just look for ways to take out that federal bureaucracy, to limit their role, to move Decision Making back to doctors and patients and i think thats where you can get a big win for freedom. Stuart okay, i want to bring in our own prize libertarian, his name is dr. Andrew napolitano judge andrew napolitano, im sorry. You promoted me. Youre a libertarian and rand paul is on the libertarian side of things. Sure is. Stuart if you guys screw this up, and mess up this agreement, youll never be on the show again. [laughter] we have to have the deal. Is that a threat or invitation . Its a threat. We have to have this deal. Cant be mean even when youre trying to, youre such a nice bighearted person. You dont like the cadillac tax, you have one of those fancy insurance policies. You dont like the federal government micromanaging health care, the micromanagement of health care stays. By ordering Insurance Companies, the house is on fire, give them insurance. Stuart judge, i will accept anything that gets a deal done and to move on to the more important tax cut. Thats a compromising attitude which may actually work, that this is a step in the right direction. But look at what barack obama has done to us and james hit on this. He has created the mentality, even among conservatives that somehow, from some source, somewhere, not in the constitution, we owe, the government owes the American Public health care. It doesnt. Its a good its like a chicken in the pot or a car in the garage. You want it, you go out and buy it, you dont expect the government to give it to you. Stuart you always ignore the problem of politics. Youve got to get the votes, youve got to have this politically acceptable. The problem with politics, this defunds planned parenthood. Im happy to defund anything. But youve got three senators who wont vote for anything that defunds planned parenthood. And you three republican senators that wont vote for me entitlementsment where are the votes comg from . Because you can negotiate down the middle. Thats where the president is a master at. Stuart am i coming back at the 11 00 hour . Youre coming back in minutes. The President Trump is tweeting. Liz im working on a new system where there will be competition in the drug industry, pricing for the American People will come way down. The president met with drug makers on the last day of january, does it mean hes going to import cheaper drugs from canada . Bernie sanders and Elijah Cummings would like that. And force drug makers to bid. Stuart the drug makers are down roughly 1 is across the board. This is part this plan that we heard about yesterday does not xhu include any way of getting the cost of health care down. So the president competes out about Competitive Bidding on drugs. Liz he said the drug makers are getting away with murder. Well, will he, in exchange, say to the fda, lift, dial back regulations so you can make drugs faster, faster to the market. The negotiation has begun and its going to be intense and surprises coming from all over the place. James and i think well get a deal. The judge not so sure. All right, lets get to your money. We dealt with a little bit of politics, were calling this the pause in the trump rally and investors waiting to see what do we get out of congress and when does it get done . We are going to open lower this morning and well be below 21,000. Facebook hit an alltime high yesterday. Premarket down just a few cents, thats all youve got. But look at snap, thats where the action is. The stock prices drop below the first trade price, that was 24 a share, its down to 22 and thats premarket, quote, down another 5 . How about that . Dicks sporting goods, it looks like its part of the retail ice age. Weak report coming in from them and theyre down 4 premarket. Again, thats retail ice age, thats our story, were following it. I want to get to that poll, this is very important, even though its a cnn poll, it gives the president winning support on the economy, 55 approve of his handling of the economy. 41 , i believe it is, that disapprove thereof. 41 , thats it. You know, james, you brought this to my attention in your column in the wall street journal today. Thank you. Stuart that statistic was buried, flatout buried. Approval rating is very, very low. His approval on the economy is really high. Yeah, thats whats moving, along with, as you said, the headline is this guy is not popular, hes historically unpopular for a president early in his term and thats true, but what you see is the progress. One, hes more popular than he used to be. And on the specific issue of the economy, its a surge for support for mr. Trump. Stuart thats a key issue and, well, james, how about that for news this morning. Okay, i want to get back to the judge, lets never leave the man out. Rod rosenstein goes before the senate to be confirmed as Deputy Attorney general today. Judge, this is man, who if confirmed, will be in charge of the investigation of his own boss Jeff Sessions and of the russians. Yes, this will be number two person in the justice department. When the attorney general recuses himself, steps aside from any case as hes done from the investigation of the campaign, as he will do for the investigation of the russians, this gentleman will be running it and he may be in a very awkward position of managing the investigation of his own boss, if the allegations of materially misleading the congress go further. I dont think they will, but well see where it goes. Stuart wait a minute, the democrats are playing around with this. Connecticut senator blumenthal, im not sure of the putting a hold. For a period of time. Stuart its another delay. Yes, its another delay in which the temporary bureauat, i dont want to besmirch, the guy is a great lawyer. With managing the fbi investigation. But the key decisions will wait until rosenstein is in office. Senator blumenthal is going to try to get a commitment out of him, will you go after Jeff Sessions if we ask you to . He cant answer that. Stuart a lot going on, theres that hearing, theres a press conference by kevin brady about the obamacare new plan, theres wall street, we still say its on force. And James Freeman, wall street journal. And expanding entitlements. Stuart theres the libertarian. Here is how you change subjects, we have a nerd alert for you. [laughter]. Dont look at me. Stuart look at a robot designed by german engineers set a new world record for solving rubiks cube, finished in. 637 seconds, beat the previous robot record of. 8 seconds. Liz it did it with six arms. Stuart well, thats an advantage. I like and super computer brain. Well repeat it later. Back to your money, check the futures. Where are we going to open . Well be down 20 or 30 minutes from now when the bell rings . What else have we got for you. Newt gingrich has a thing or two about congress, he says the president is off to a good start with his legislative agenda, big things are happening says Newt Gingrich. Youll see him on the show. And north korea, a response sending an antiballistic system to south korea. Not happy about that. Well have a jampacked show. But thinkorswim already lets you create custom alerts for all the things that are important to you. Shhh. Alerts on anything at all . Not only that, you can act on that opportunity with just one tap right from the alert. Wow, i guess we dont need the kid anymore. Custom alerts on thinkorswim. Only at td ameritrade. Here is a story for us. Our story, ashley, amazon and alphabet, neck and neck, we asked the question which will be first to 1,000. Maybe neither of them. Were not sure, but were concentrating on that race and we will show you that at the opening bell. The u. S. Military bringing a Missile Defense system to south korea, this is in response to the north korean test. China doesnt like it. Liz they see it as a trojan horse for surveillance. Russia is not liking it either. And the u. S. Says its not meant for surveillance, its for defensive purpose to intercept and destroy north Korean Missiles. China not believing that. Stuart china has done nothing about their north korean clients. They make the Nuclear Blasts and make missiles. Liz they crack down on the coal deliveries. Stuart whoopty doo. And i want to bring in art laffer, former reagan economist. This plan released last night and detailed more this morning, it gets rid of the surtax on high income tax earners. It leaves in place the cadillac tax, i think, a lot of taxes are gone. Youve got to approve of that, art. I love it. I think its absolutely wonderful. This is a huge plus and stuart, to put it in financial terms, i think if this passes as it stands without modification, will be worth, 2, 3, 4,000 points on the dow. Stuart whoa that big . Well. Stuart some conservatives are not happy about it. The cadillac tax stays and its still an Entitlement Program which can only expand. Youre shaking your hand. Make your case. Its wa, wa, wa, it doesnt have everything yet. It will be modified in the committee. These things will go and it will happen. I dont know of any conservative today, free market economist who would not vote this bill over doing nothing. I know of none of them. Its going to pass. Its g to pass a these people who dt want defund any of this program or that program, or whatever it may be, they may be sitting there trying to get another point in or not, but when it comes to a vote, theres no way they are not going to vote for this bill. Stuart i think it was you who said it, but it has been said, that if you get rid of these taxes in obamacare, then youve just given the middle class the best tax boost you could possibly give them. Is that accurate . Yes, it gives a shot in the arm to the u. S. Economy. These tax burdens are enormously hindering of the bull market and the economy. Theyre right on the margin. They pull all sorts of pressures on small and Larger Companies and they do all sorts of damage. This is the first major step in the pro growth agenda. Now, as you say, tax cuts are next, youre right, tax rate reductions are next, but this is a huge plus, stuart. Stuart 17. 2 of all the jobs in america are parttime. I think that that is partly the result of obamacare and the mandates from obamacare. Well, the mandates are going, theyre going away. Do you think we will therefore have more fulltime jobs in america and fewer parttime jobs . Well, were going to have more fulltime jobs for two reasons, number one, obamacare does tilt towards parttime versus fulltime. That will happen just as you said it. But also, were going to have a lot more jobs in america as well so were going to have more fulltime jobs because of growth in the economy. We have had a huge collapse in employment as a share of Adult Population from the end of bill clinton to now because of all sorts of bad policies. Those policies are now being unwound and the coolest they think about the Trump Administration, if i may say, is theyve kept expectations low. Theyve not made overpromises and expectations have been at a low and only up to go. They have the lowest bar imaginable, stuart. This economy is going to start to go and once it starts, the ball will start rolling very much in their favor. Im quite excited about the next couple of years. I think that trump played this beautifully. Stuart you may well have just moved the market. How about that, real power for the guy right there . Well, im watching, i want to get to 21,000 again and go en. Stuart youll be on the show when we get to 21,000 again and again. You will be, sir. Art laffer, stay there, well bring you back for the opening bell. Thank you, stuart. Stuart exxonmobil announced a plan to invest 20 billion dollars, creating 35,000 construction jobs and 12,000 fulltime jobs on the gulf coast. President trump calls this a true american success story. How about that . Well be back. Why pause a spontaneous moment . Cialis for daily use treats ed and the urinary symptoms of bph. Tell your doctor about your medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis. The news on exxon this morning is that theyre going to spend 20 billion to create maybe 45,000 new jobs in the gulf area. President trumps very happy about this as you might expect. Here is the tweet. Thank you, exxonmobil, for your 20 billion investment thats creating more than 45,000 manufacturing and construction jobs in the usa. Can i call that a win, James Freeman . Yes, and investors are calling it a win, too, sometimes when Oil Companies make big bets, investors get nervous the money is going to be misspent, but it looks like judging from that chart, investors are bullish, too, and i think were now going to see what the u. S. Energy economy can do with an administration that is not hostile to it. You think of how far the u. S. Energy revolution came when obama was in office, trying to stop it at every time. It proceeded because it was on private land, mainly. And now you get you look at a lot of the exxon investment, its in manufacturing, refining, very difficult to create new Refining Capacity in the u. S. For decades. Manufacturing petrochemicals. So this is really i think is encouraging sign and goes to what were talking about, how the limits of growth, to growth are being taken off the u. S. Economy. Stuart its fascinating, isnt it . Its fun to watch. Stuart it really is fun to watch and our viewers think the same, i believe. Where are we going to be in four and a half minutes when the markets open. Might be slightly lower, 20 or 30, youll see the markets open four and a half minutes from now. Well be back. Deartheres no other way to say this. Its over. Ive found a permanent escape from monoto. Together, we are perfectly balanced. Our senses awake. Our hearts racing as one. I know this is sudden, but they say. If you love something set it free. See you around, giulia here is the time frame. Last night. We started to get details of the plan to reform and replace obamacare. Actual details. The plan was published. We know whatsn store. Now, the market opens in abo 30 seconds and its going to be reacting to this beginning of the legislative process because it is off and running. The president s legislative schedule is now get rid of obamacare and replace it, then cut taxes, get it all done, hopefully, by august. If it can keep to that schedule, the market looks good. Five seconds to go and we are off and running this Tuesday Morning, were expecting a small drop in a very early going. Here we go. What have we got . Weve got 19, down 20, down 28 points. The very, very early trend is ever so slightly lower. Thats not much of a pullback by any means. 20 points down on a 20,000 index, with about twothirds of the dow 30 stocks in the red and going down. Im going to bring one particular class of stocks to your attention, thats the drug stocks, because moments ago President Trump tweeted about bringing in Competition AmongDrug Companies so you get lower prices. Consequently, drug makers, pharma goes are down in the early going. Other stocks like facebook hit an alltime