Skip to main content

tv   Varney Company  FOX Business  May 28, 2013 9:20am-11:01am EDT

9:20 am
las vegas up 21%. new york, the worst performer, still up nearly 3% in one year. good stuff indeed. now, check this. opposition to fracking, not stopping one of the world's biggest companies from investing in it. general electric put 15 billion into fracturing technology. that's interesting. ge is run by the green jeff immelt who used to run the obama jobs council and ge is big in making fracking happen. douglas holts eakin is here. they don't seem to be able to stop the energy revolution, do they? >> no, this is a technology story in the end. the advances to technology have unleashed up to billions and billions of reserves, and as the technology matures they will be more possibilities and ge's entrance into this is perfectly sensible. they're a technology company and a lot of money to be made. >> and i think this revolution,
9:21 am
and i think it is a revolution, i think it's going to help the overall economy, and probably help president obama, even though he has very little to do with it. i've got a headline in the wall street journal that says an energy boom in the u.s. is deepening splits within opec. >> ins a huge story for the u.s., there are three upsides for economic growth. one is the housing market and you talked about that earlier and the other would be vehicle sales picking up and the third, one we can count on the most is the energy story, it not only helps domestic jobs, the jobs come first and the energy later. it's the global oil shocks something that plagued the u.s. for decades. it's an important story. stuart: do you think we can get to 4% growth in a couple of years if the trends you're talking about keep going? >> i think those three would help and then you'd have to take off the table,
9:22 am
>> politically. the jobs are not there. the earning power is not there. it politically doesn't look good for the president despite what looks like pretty good growth down the road. >> we've had a jobs problem, but the hidden problem has been income growth and the median income has fallen during the so-called recovery and when you look at the monthly jobs report and we don't find it many months, he so, this recovery
9:23 am
will be as secure as the income growth makes it and that's the missing link right now. >> i'm running out of time, but i've got to ask. what chance for real tax reform? >> boy, i hope it's in the cards, but it's going to be required for the white house to genuinely push. you can't get big without the white house changed. stuart: the president won't change the tax rate, won't do that. >> it's hard to imagine the individual side, but corporation reform would be valuable for economic growth and internationally as well. stuart: after what they did to apple, do you think it's going to happen really? >> let's say the chances aren't zero, but they're not one either. stuart: you should have been in the state department, working as a diplomat. you should. doug holts eakin, thank you for joining us. three big stories in the business wo &
9:24 am
company" always watching your money for you. futures looking higher at the opening bell. another rally. we'll be up 120, maybe 130 points and then we have the luxury jewelry maker, tiffany made a lot more than expected. we'll watch that stock for you, but we've got more trouble for another cruise ship. this time it's not a carnival. oh, no, royal caribbean's grandeur of the sea catches fir1 in the atlantic. first up, you've got to check it out. a wedding picture gone bad in michigan. the entire wedding part falling into the water. that's going viral. no worries for the bride after the post plunge swim. she was smiling and you've got seen it yet, but she was chugging back a beer with the guests shortly after the plunge. back in a moment.
9:25 am
9:26 am
9:27 am
are you still sleeping?
9:28 am
just the first technologymake sure of its kind...schedule. mom and dad, i have great news. is now providing answers families need. siemens. answers. ♪ >> that was kind of a cruel choice of music, we're watching royal caribbean shares, a fire on board one of its ships and we're a minute from the opening bell. we'll bring you more on the stock and more on the video from the cruise that didn't turn out
9:29 am
well. and joining us from chicago is tres knippa. we're going to be up and give us the reason du jour. >> and in why we're up this week, why were we down last week. i said last week, say it again, the thought that the fed is going to back away from the market is nonsense. it's not going to happen and the other thing that's supporting it this morning is positive data from the housing sector. when you look at that, as our head of the central bank, ben bernanke, continues to tell us there's no inflation, so, the cost of housing is rising per his plan and yet, real incomes are not going up. why is that not the very definition of inflation? it's a reduction of purchasing power. why is that not studied as a clear indication of inflation. >> i've gotten seconds at the
9:30 am
opening bell, and always hit me there. and thank you very much indeed. and you heard it, it's all about ben bernanke. and so says tres and so says the markets. the opening bell is ringing and you're going to see at least a 100 point gain for the dow in early going. i have no idea how it's going to close out today. when we get going and the stocks are off and running, 110, 115, and the opening trends today, tuesday morning is up. right now we're up 24 points in 15 seconds, not a bad start. and here is another signal that the world's rich are spending money. strong sales at tiffany, big time. stock is up, i trust? >> up 6%, it's amazing. sometimes we worry about the consumer printout, luxury, the high end consumer is back in full force. tiffany is echoing what we're hearing about saks and coach and
9:31 am
burberry, and tiffany is up. what i motored earlier higher than expected sales. valentine's day was well for them, they had their anniversary and the great gatsby, i know you can't see it, i printed it, liz printed it, our producer, $200,000 for this beautiful head piece, it's a tie-in to the big movie is obviously bringing tiffany's glamorous customers as well. >> thank you very much indeed. the dow industrial is up indeed. 109 to be precise as of now. two more big names you know right now. fire aboard a royal caribbean cruise line, one of their ships, and it's at the dock. the passengers are cruise safe and the rest of the trip was canceled, it was supposed to be for seven full days, passengers get a full refund and a voucher for another trip. and i believe royal caribbean's
9:32 am
flying them all home again. the stock is barely down, 11 cents, that's it. maybe they've preempted the bad pr by giving them a free cruise in the future and a refund. and tesla, the ceo elon musk wants to make an affordable electric car for everybody. the stock is 101 right now. we're going to ask one of the executives about the company ap the tax credits it's getting in our next hour. now, let's get to the gibson guitar story. the company was raided, remember, back in 2009 and 2011, because it was supposedly using illegal wood in its cars. was it another case of political targeting? he donated to political candidates, the rival, cf martin did not get raided even though he it uses exactly the same wood and its chief is a big backer of democrats. doug holtz eakin is with us.
9:33 am
and it gives us an idea the conservatives were targeted in the middle of an election, this is far more than just the irs, isn't it? >> well, we certainly know that the targeting took place at the irs and we don't know how much. and so, there are a lot of facts that remain to be found there and i don't think we should even speculate until we actually know what went on in the irs. and this moves past the irs, if it's true there was a coordinated targeting of action, it's a political story. stuart: you've got to get out there and hammer this one, and you can't back off and say we're waiting for more information. >> we know there was targeting period, that's not in dispute. now the question, is how much and how broadly. stuart: my point would be, that the machinery of government was used probably by -- i don't know for sure, the machinery of government was used to intimidate conservatives in the last election in the middle of the campaign. i think that's a fact.
9:34 am
>> if it's broader than the irs, it's an important fact. stuart: you're a diplomat, doug. >> you can make the point, you can make it nicely and it's still a big point. stuart: and smiling. doug, we appreciate it. look at this, the dow jones industrial average as we said, a big gain at the opening bell, a big move up in home prices over the past year. solid gain for stocks, we're closing in on 15-5. how about that? well, we're all back at work after the holiday weekend, the irs's lois lerner still on paid administrative leave and we're paying her over $170,000 a year, paid vacation. who is paying for her very high end lawyer? are we on the hook for that as well? all rise, the judge will answer the question in our next hour. and then we have yahoo!. been making a big splash since
9:35 am
it acquired a ceo. she has demanded no he more work from home and she has paid over a billion for tumblr. and now an about bid for hulu? do you watch any shows on hulu, part already owned by the parent company. >> and the bid is unclear, more than 600 million and the shows on hulu that are hot, "glee," grey's anatomy, modern family and "saturday night live." notice i didn't really answer your question he, but i answered a lot of other questions. stuart: it's interesting that hulu would be cheaper than tumblr. >> right. stuart: i don't think gotten any profit at all. barely any revenue. nicole: went from 1.1 billion, right? >> yes, so hulu is cheaper than that? >> and seven bidders in the game
9:36 am
for hulu, it's going to be a hot story. stuart: yeah, quickly i'm taking a look, what do we call that, market scan, the 30 stocks that make up the dow industrials, 29 of them are in the green. the dow is up 150. there's only one loser and that's p&g. procter & gamble coming down in the rally and down four cents. this is an up tuesday morning and here comes peter schiff. he's a goldman, we know that, he predicts an economic crash, but says he is still investing in stocks. come on, peter, because all our viewers want to know, okay, what stocks are you buying? >> you know, i never stop buying stocks, i've been buying them for years, i'm mostly buying international stocks, but i still have some stocks in the u.s., i have a lot of oil investments here, you notice oil prices are up and it's a bigger move in oil prices than the stock market and it's important not to excuse those with a rising economy.
9:37 am
>> and peter, i'm sorry, i always interrupt you and i'm very sorry about that, but our viewers want to know what stocks specifically. what stocks is peter schiff investing in? go on. >> you see the sign on top of my shoulder, call up and talk to my brokers. and finra wouldn't let me give out specific stock recommendations on television. my brokers will it witell you, them up. stuart: that's a commercial and you know that. >> but that's all i can do. talk to the government regulators. >> you're going to pay for this. you like oil companies and you like overseas companies that are listed overseas. now, why do you like overseas companies? and which countries do you like? >> well, i specifically like southeast asia. we're overinvested in singapore and hong kong and we have money in australia, new zealand and latin america, some money in chile, in peru, but i like countries where i think that
9:38 am
purchasing power is going to go up. where i think that the currencies are going to gain against the dollar, where you have less regulation and lower taxes, more legitimate economic growth, not just bubble blowing which is what we have in the united states. you keep talking about an exit strategy. i don't believe that the fed has an exit strategy, they're talking about tapering, that isn't an exit. that's growing the balance sheet. they can't become the biggest seller of bonds and marts. i don't want to invest in countries that have an asset public. i know how that ends. looking at legitimate economic growth. >> we hear you, peter chef. thank you, sir. >> thanks, stuart. >> we're up 142 on the dow. 15444. i've got the 7 early movers this morning. royal caribbean again, fire on board that cruise ship and the company seems to get in front of
9:39 am
it though making it right with the passengers and on this particular cruise, baltimore to the bahamas. a full refund and tickets for future cruise. united natural foods. it distributes organic foods to whole foods and other grocery chains and they will report after the market closes a little in advance of that profit report. the canadian solar, name of the company canadian solar, a smaller loss because of lower costs. the market likes that one. $10 a share. and better than expected profit and sales and tiffany up. and first tumblr and we hear made an offer for hulu. and ge, ge had investigated billions in new fracking techniques the past few years, and remember, ceo jeff immelt
9:40 am
close with the president and a green kind of guy. ge is at $23 a share. the tesla chief elon musk wants to make an affordable electric car for everybody. the stock has moved above 100 as of right now. and the dow jones industrials industrial average is up 147 points, what a great day. welcome back, everybody, great housing news and the stock market is up. time is money, 30 seconds of what else we've got for you. china, accused of hacking sensitive weapons systems at the pentagon and defense contractors, will this come up with president obama meets china's president next week? will the president do anything about this hacking? we will ask. >> california, too much money? you heard that right. a big surplus. tax the rich works? does it? we'll explain. and i have a bone to pick with "the washington post." a big story on brits in the american media and guess who didn't get mentioned. i am shocked. congress on vacation, the irs
9:41 am
scandal taking a back seat this week. and a reprieve for president obama as he heads to the new jersey shore with the photo op chris christie. are scandals in washington taking a back seat? find out next. clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies."
9:42 am
vo: ta friend under water is end usomething completely different. i met a turtle friend today so, you don't get that very ofn. it seemed like it was more than happy to have us in his home. so beautiful. avo: more travel. more options. more personal. whatever you're looking for expedia has more ways to help you find yours.
9:43 am
we don't let frequent heartburn come between us and what we love. so if you' one of them people who gets heartburn and then treats day afr day... block the acid with prilosec otc and don't get heartburn in the first place! [ male announcer ] e pill eachmorning. 24 hours. zero heartbur
9:44 am
9:45 am
>> >> that's another shoot-em-up. fast and furious 6 the latest installment in the franchise. now what it raked it over the holiday weekend? $120 million, that would be a memorial day weekend record. you saw it there. and the real good news of the day up 163 points for the dow
9:46 am
industrials closing in on 15-5. not a bad way to come back from the holiday weekend, right? and now this, the president, he is making the rounds. he's trying to stay above the fray of the scandals. today, for example, he's visiting the jersey shore. all while the irs scandal is being pushed into the background because congress in a very short holiday period. and kelly jane torrence is with me. do you agree with the premise that scandals for this entire summer period, that's a long time. they're going to be pushed into the background because congress is going into recess. there's no more hearings, second tier, not the front burner for scandals? >> exactly, benghazi got its second life when there were hearings and clinton testifying and other people testifying and that's when that scandal really became a scandal again, but you know, the congress is out of session all of august, at least a week in july and a lot of them taking vacations and obama visiting the jersey shore.
9:47 am
>> exactly. stuart: he will look good. at arlington cemetery, got that. goes to oklahoma looking at damage, the president's supposed to do that. wraps his arms around the nation and now chris christie is going to wrap his arms. >> and obama trying to wrap his arms around chris christie. and american looked at the jersey score, it's a scandal if the media lets it be. stuart: they will the media may pursue the department of justice. and rosen. >> exactly. stuart: the irs scandal is going away. >> and they don't want to -- you know, it's funny, you think, well, this is serious stuff going on, did the irs politically target groups and the back burner because obama is going to the jersey shore? the media moves the stories. a democrat and a republican, a media op, like a cat and dog.
9:48 am
they love it and they can bug republicans irritated by chris christie spending time. >> and for republicans it may not be bad the sun is shining and the barbecues are lit up. and let it go away for a while and come back with a vengeance in the small. >> the election was so polarizing and half last fall, and the benghazi hearings, irs, people kind of want to take a little break. it's memorial day day sort of the official start of summer in america. >> you can get scandaled out. the problem is when they come back in the fall, will people have forgotten and republicans willing to press them on it, as they should. stuart: in the fall, october, you'll have these health care exchanges, which are supposed to be firing up. and which may not be ready on time. i don't know that, but maybe not. maybe the fall. and maybe over the summer, the president looks good, high approval ratings, but then, gets
9:49 am
hit in the fall with obamacare and with the return of the irs scandal. >> well, exactly. people are on vacation, reading beach books, seeing fast and furious 6. fall, that's when they're ready to sit down on on the-- >> am i going to see you on jeopardy. >> i passed the on-line test and had an audition in new york, see what happens. stuart: what's the capital of licken stein. >> vadu. stuart: that's good. well all right. kelly jane, that's pretty good. thanks indead. last time i ask a round of questions. time for your gold report. yeah, the gold is down $5. now, please, look at the dow again. we're up 170 points now. and that's 15,473, up 171, not bad. it's no secret, paul krugman
9:50 am
likes to attack anyone who does not agree with him. now, two harvard academics are palling him on it and calling him uncivil. find out why after this. [ shapiro ] at legalzoom, you can take care of virtually
9:51 am
all your imptant legal matters in just minutes. protect youramily... and launch your dreams. at we put the law on your side.
9:52 am
9:53 am
9:54 am
>> detroit, a city that is flat broke, taken over by the state may soon go bankrupt flat out. and now reports that four of the city's pension trustees spent $22,000 out of retirement system funds on a conference in hawaii. a couple of harvard professors have accused left leaning noble economist paul krugman of uncivil behavior. these professors dared to bring up the negative effects of too much debt, said that countries with very high debt had a slow rate of economic growth. professor krugman took them to task. all right, charles, how would you contradict mr. krugman. >> he's been something after bully. i hate the way he comes across. and carman reinhart and ken
9:55 am
rogoff says it was spectacularly uncivil and went on to say your characterization of our work as selective and shallow is deeply misleading where we stand on the issues. it works for him, he gets tv time and hero to the left, but seems to counter any real debate and i thought that is what academia is all about. >> a lot of name calling and professional name calling as the two harvard protesters were set to be pathetic. you shouldn't do that. we need a free and open debate about the level of debt and relationship to economic growth. >> leave the name calling to me. with the academics, listen, i want to hear a good, smart intellectual argument. i don't want krugman coming on there like he always does ham-fisted.
9:56 am
stuart: the dow is up and you want to have an intellectual discussion why. charles: no. stuart: and china hacking our sophisticated weapons systems and copying them? president obama meets china's leader next week. will he lay down the law? we will ask and plus at the top, anti-tax crusader respond to the irs scandal for the first time. grover norquist. we're all totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal.
9:57 am
♪ (train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infite possibilities.
9:58 am
9:59 am
stuart: the summer has begun unofficially and we have this
10:00 am
for you. for the first time the most important voice in the world of taxation gives us his take on the ira's scandal. grover norquist is here. china, most sophisticated weapons systems, copies them. president obama meets chinese's leader. california taxes the rich. it looks good but will not last. test lead breaks through $100 a share and cheap electri cars for all. $148,000 for brand new rifle. you will see it here on this set. ♪ the good news is breaking out all over. look at this. the dow is up 181 points. got a very strong reading on consumer confidence before that we have very strong reading on the housing market, prices up in
10:01 am
the 20 city case shall index up 10.9% over the last year. solid gain. markets were ready to go after the holiday week and you can tell, want to tell me why? consumer confidence, housing, is ben printing money. charles: all that leads to good earnings. put it tiffany's earnings a you will learn why this is working. earnings up significantly around world. the u.s. was good, japan up 20%, up double-digit. you a e went from four million to twelve million, the world is on fire, the underbelly, this right here picking the steam, ben bernanke always said that kicks and around this area, 16,000. stuart: we are close to 15-5, if somebody buys something in the next couple seconds, there we are. 15,500, the dow is up 1-1/4% and still going. the consumer confidence number
10:02 am
was released 1 minute and 40 seconds ago taking the dow from 170 to 194. we have a market rally on our hands as we come back from that long holiday weekend. one of the big stories of the day, china hacking our most advanced weapons programs. president obama warning the chinese president next week in california. here's the question. will he do anything about it? joining us, for the first time -- what is it the chinese are alleged to have hacked into? >> the washington post is reporting all of these, three pages of these high security weapons systems, different blueprints have been -- this is an ongoing way of of chinese hacking. stuart: blueprint for what? weapons systems? >> designed for weapons system, different technologies, three pages of this including defense, at 35s, really runs the gamut and is not just the u.s.
10:03 am
anymore. the australians are now reporting their blueprint of their version of langley has been hacked and stolen by the chinese. stuart: headquarters of the cia, an act into that one. that is the extent of it. the dow was up 2 and the points. that is the extent of it and it is very extensive but the obvious question is what can and our president do about it? >> meeting with the president in california in a few days and tom donovan is in china meeting with the president and his counterparts. they say will be a centerpiece. a lot of the discussion is centered on economic growth because that is where the chinese and the u.s. and try to productive progress but the issue is hotter than ever. what you have to do, from what analysts are telling me is the u.s. has the expectation whatever they do bilaterally may
10:04 am
help and may be a service but may not actually do anything so the u.s. has to be cut its own side and work with major companies that have been affected like lockheed martin, talking about other major contractors. you can't just discovered the chinese are hacking when the fbi comes knocking. charles: reality of life, they will do anything they can to steal stuff from us intellectually and we have to deal with it because we don't want to rattle that cage. general motors is opening up a big plant, it is a huge consumer base. just talked about tiffany's. we will let them attack us. what will we do to stop them? >> the u.s. on the security side according to these analysts who have been studying this for a long time we have to assume what is happening, not give up the bilateral, not give up what we are already doing, but be found from our side. countermeasures, security, all
10:05 am
of those things and not say we are going to let it happen but we will take countermeasures, there will be consequences, there will be penalties. very difficult to do that. let's be honest. stuart: i would like to be a fly on the wall. beijing, quit it, lay off now or else we do this but we will never know that. >> is my dream to coverage that kind of censorship be in my lifetime but it is very alarming. it will be a very hot topic next week. stuart: thank you very much. look at the big board. how many points are we from an all-day intraday high, 12 points? 12 points from an all-time intraday high as we come back from 50 points, 50 points away. charles: no one is worried about been cutting off the printing press. stuart: come on in.
10:06 am
tesla way up writing. nicole: breaking through the hundred dollar market. we watch to as low throughout the year ended is up 200% this year and you can see no difference, $103 traded as high as 104 and change and this is unbelievable. it continues to grow, continues to benefit from all the tax credits particularly in california. the environmental credits, an interesting article from the tesla giants calif. to the banks, absolutely true. that is one reason to asthma is doing well. they pay off the loans and get near-perfect readings from consumer reports and posting a profit. stuart: there you go. they are up today. thanks very much. i want to point something out to our viewers, the dow is up 200 points, a nice rally but the yield on the ten year treasury not to get too technical but this is based line interest rate
10:07 am
story here, the yield on a ten year treasury is -- what was again? two points? 2.081. that is very precise. that is high for the year. interest rates up, not huge highs but above 2% and the dow gains 200 points. charles: the sense of urgency, maybe to buy that house because rates are not going to go any lower and also the theory that equities, when the interest rates get above 2, stocks must return x amount to compensate for risk and a lot of people think that drive the stock market as well. stuart: we are looking out ahead at some reasonable growth for the economy, looking at been printing money, profits of good worldwide as you pointed out and the dow is closing in, we have a special graphic, the dow's 16,000. charles: we may. stuart: let's not get crazy. this week who knows? it will be a great week.
10:08 am
we have glenn hubbard, economic adviser to the mitt romney campaign as a new book out and here's the title, balance, the economic debate, hours from ancient rome to modern america shows parallels with ancient rome and our economic situation right now. welcome to the program. would you characterize america, president obama's america right now as in significant decline? >> i don't think america is in decline. we have a warning ahead of that, great powers stumbled. when politics don't keep up with economics, that is happening but we have time to fix it. stuart: who is the rising power that may or may not take over from as? >> china is the rising power but in the book my co-author and i explain china is not likely to overtake the united states in the next 25 years in terms of economic power if we keeppour house in order, if we do the right thing in our budget and
10:09 am
growth in our economy. stuart: do you think we are going to do the right thing? >> americans usually come to that even if they stumble upon it. the task is daunting and will likely require changes in rules. stuart: to me doing the right thing would be getting a grip on entitlements, and i mean a real grip on entitlements, doing something about the size of government relative to the size of the overall economy and doing something about our very high rates of taxation on corporations and successful individuals. i got to say i am not sure that america has the stomach to do all three of those things. do you? >> i think that it does and it is because if we don't do that, if we don't right size government and get in tenements state in line we are going to get the rest of the things government does, deep in the our nation, educating our children, tax burdens will rise to such a level we will not recognize
10:10 am
entrepreneurship and the american people get that. stuart: don't you think there is a chance? charles: you put a finger, look at the electionnand all these things, what about the notion that empires inevitably are going to fail at some point because they put themselves in position over and over throughout history? >> usually people say empires file because of overstretched. is usually under stretch, looking inward and that is the problem of the u.s. faces. we need to change our budget rules. i don't think we can rely on politicians alone. stuart: the dow jones industrial average right now is up over 200 points. we are looking at a growth rate of 2.5%, looking at housing prices picking the 10% over the past year. people are going to say we don't need this austerity, don't need to change, it will grow our way out of it and we can live with this debt. stuart: we can't grow our way out of that.
10:11 am
these programs are indexed in such a way that won't held and 2.5% is terrible. i know it is not a crisis but coming out of the steeple is terrible. the economy can do better and it should. if we don't get our budget house in order we can't grow what america is used in the long term. stuart: i like an optimist in your welcome on this show. thanks very much. could tax the rich really be working in california? turns out the state could actually end up having a surplus just a few years after having had $20 billion per year deficit. charles, taxing the rich? charles: glenn is saying that all these things, we don't change, and this stuff works. spend the attacks tease to work, there in california celebrating how do we spend this new cash.
10:12 am
ironically enough governor brown is the only ones they hold up, because we can't always retroactively tax everyone. stuart: got to explain this. you got right to the point. california has a surplus because it passed in november of last year a tax increaae which reached all the way back to january 1st so they got a huge windfall of taxation revenue coming in the early part of this year so they balance the books so it won't go on forever. charles: the gigantic money that was raised from selling stocks late last year because capital will change and a lot of things we will see what happens but anyone who thinks this is a long-term thing forget about it. rich people move, company's move, retirees move, young people working in the tech industry will save it can't carry the burden by themselves. stuart: back to the stock market this is a nice rally tuesday morning after a long holiday weekend, 200 points, 15-5, home
10:13 am
price is up 10% year over year and all things dee says yahoo! is putting in a bid for hulu. >> nice move for yahoo! of 1 when 2% joining bidders and we talked about the names people know what modern family and saturday night live to name a few so it is something that is hot and six hundred million, seven hundred million, we will see what the bidding war gets up to but at the moment they put their hat in the ring. stuart: what strikes me as the new c e l at yahoo! has really scared nothing's up and the stock has gone 13 to 14 to double. is that right? nicole: that is absolutely right. she certainly has served and made some strict new rules as you noted earlier that there is
10:14 am
no more working from home if, trying to get everyone in and figure out what is what. that is what you do when you take over and right to ship. stuart: check microsoft in the next 45 minutes. we all like what we see. thank you very much. next grover norquist response to the irs scandal for the first time on "varney and company". what does the top antitax crusader say about this? >> i don't have the precise date and i was unaware, is not my area, i don't know. >> i don't remember speaking with ms. lerner before my testimony but i don't know the details. >> i am not familiar with that letter, i am sorry.
10:15 am
10:16 am
stuart: another cruise ship debacle, this time it was royal caribbean, a ship that caught fire on its way to the bahamas virtually running the trip for 2,000 passengers. those passengers will be flown back to baltimore where their trip began and get a full refund and a voucher. wildfires in santa barbara, hundred buildings, twelve hundred acres. as of this morning there were 275 firefighters on the scene, only 10% under control. calling would with a record-breaking weekend, $317 million in sales fast and furious vi, the hangover iii, an
10:17 am
epic contributed to a record box office over the weekend. the foremost authority on taxes in washington rover norquist is here and what does he say? for the first time on this program and any place else, what does he say about the irs and the? he is here in a moment. we learned a lot of us have known someone who's lived well intoheir 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ t question is how dyou make sure you have the money you need to enjoy all of these years. ♪
10:18 am
[ whirng ] [ dog barks ] i want to treat mo dogs. ♪ ourusiness needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting tomobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better. ♪ stuart: the irs scandal going on for a few weeks, we have been waiting to hear what the foremost authority on taxation has to say. his name is grover norquist,
10:19 am
frequent guest on this program but until now. on the issue of the irs scandal. what do you think? >> we have seen this before. i served on the commission, congressionally started commission about the 90s, commissioner restructuring the irs, put together a response to irs agent flaps flipping through the tax returns of people from hollywood and violating privacy. in that, we have the guy from the irs in to talk to our commission headed up by senator bob kerrey of nebraska and congressman rob portman, congressman from ohio and i asked i talked to my conservative frienns, many of these groups being audited, talk to my left of center friends, any of your friends being audited, no. i said why don't you share with me how you make these decisions and convince me that it is not what it looks like, terribly
10:20 am
political and the response was you really are going to have to trust us at which point john kerry said we exhausted this issue, let's move on. this time around there is a repubbican house that is not going to allow this into let's move on. get to the bottom of this because it happens too often. stuart: is going to be on the back burner for much of the summer, granted the house has an ongoing investigation. that gives everybody the excuse to say i can't talk about this because it is under investigation. if they appoint a special prosecutor nothing will be leaked for a couple years. it will be put way down the road. >> remember, some of the people who have been the targets of these investigations can speak. both individuals and institutions and is very wise of the administration to attack the tea party organizations. a wonderful phd thesis was put
10:21 am
out recently by some folks which point out where there were tea party rallies compared to -- it wasn't a rally, you saw billions more voters turn out in those areas where you have the tea party active, more money raised -- stuart: that is crucial. that is absolutely crucial because my point has been for a long time that the machinery of government was used to affect the elections. wasn't just the irs, it was the epa, disaster relief funds, it was across the board and seem to be machinery of government trying to suppress the vote for conservatives, targeting republicans, intimidating conservatives. i ttink it was a broadbased effort. whether or lot related to the campaign of the white house is another story entirely. the fact is it happened. >> i was in chicago when this was blowing up, meeting with republican legislators, party
10:22 am
officials, raising money for republican party out there and state legislators said i have never been audited until i got elected to the state legislature, then i was audited and everyone goes of course, that is what happens in chicago, here in illinois. it is that ethic that the government machinery is to be used for political purposes that the people around obama, many of them from chicago, brought to washington d.c.. this is not the minnesota good government crowd. this is chicago. stuart: grover norquist, appreciate you telling us what i think about this and please don't go away. i don't want to see this go under the back burner for the entire summer. thank you very much indeed. two questions coming up for the judge. who pays for los lerner's lawyer, a taxpayer funded vacation, and was there even more political targeting when the feds raided a gibson guitar
10:23 am
factory for using illegal would? fired up and also rusty and he is next. but we can still help u e your big picture. with t fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i'm meredith stoddard and i helped create the fidelity guided portfolio summary. it's one more innovative reason serious investors are choosing fidely. now get 200 free tdes when you open an account.
10:24 am
10:25 am
10:26 am
stuart: plenty of good news to follow up the market, at 9:00 eastern we got the news on housing, prices up can.9% in the
10:27 am
past year much better than expected and a good confidence consumer confidence reading from the conference board came out at 10:00, stocks straight up and the rich people apparently are spending money at tiffany's because the stock is hitting a high. nicole: look here, it is up almost $80, 5%, market's rallying, tiffany moving here and they did really well on a quarterly report not only in the state's put also asia, china in particular put expansion, sales growth, 14% for the asian business, in japan, second-biggest market, they sell growth of 2% which doesn't sound like a lot and that is about the yen. if it were not for the yen's depreciation, the impact would be 20%, and that 175th
10:28 am
anniversary, and the great gatsby tie in where they continue to make all kinds of fantastic jewelry replicating that error. stuart: it is the winner. thank you very much indeed. you may think the irs scandal is on the back burner. we met the -- we won't let that happen. will raise its ugly head all over again. the executive at the center of the scandal. but here is the question. coupes for los lerner's very expensive lawyers? all rise, judge andrew napolitano is arrested. i wonder if he is fired up, who does pay less's lawyer? judge napolitano: she did have friends doing it, could be financed by the family. the government could pay for
10:29 am
lawyers, and summoned before congressional committees to justify their behavior. this tool in the federal government decides when lawyers get paid by the federal government? eric holder. he would not actually give the attorney general the authority to utilize a discretionary fund to pay for legal services when people need lawyers. it is rarely done, almost always the people being summoned have to get -- stuart: los lerner asked attorney general eric hurdler -- eric holder pay for my lawyers he would say no. he would have to. judge napolitano: that would turn up the heat on the scandal. really not happy she is getting a vacation. stuart: i would like you to answer the question. judge napolitano: especially about what she made, and the nile before she claimed -- stuart: lousy legal advisor. judge napolitano: terrible legal and vice. these expensive lawyers, that
10:30 am
job. stuart: will she be compelled to testify? dragged back in and says i'm not answering should be held in contempt of congress. judge napolitano: and incarcerated for refusal to answer a question about which she volunteered an answer. stuart: another scandal, an hour range, the attack on gibson guitar. they stormed the place with a swat team for heaven's sake. judge napolitano: obviously someone in the administration, in the justice department decided rather than commencing the civil lawsuit against gibson for using wood according to the goveenment, gibson was not authorized to import, decided to invade the place with guns exposed and 30 people dressed in paramilitary uniforms. stuart: what is going on? judge napolitano: to punish them for defying the government. stuart: for being conservative.
10:31 am
the guitar company contributed to republicans. another company which is exactly the same would also makes guitars. judge napolitano: they -- stuart: they gave to democrat, not question. judge napolitano: all of this happened after the supreme court decision in citizens united which permits corporations to exercise freedom of speech. a decision suppressant of the united states condemned during a state of the union address you may remember. added words of defiance. and justice toledo was correct. this is the president. as you talked about earlier on this show and i talked-about eloquently many times utilizing the machinery of the government to affect people's expression of free opinion and ultimately affect
10:32 am
peter: when you won't believe how much these shotguns and going for, you will find out after this. everybody has different investment objectives, you can't say ideas,'one size fits all'. risk. it doesn't. that's crazy.
10:33 am
we're allll totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackck. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider itcarefully. risk includes possible loss of principal. all stations come over to mithis is for real this time. step seven point two one two.
10:34 am
rify and lock. mmand is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is conneing today's leading companies to places beyond it. siemens. answers.
10:35 am
10:36 am
>> more on the great state tax revolt. texas passes more than $1 billion in business tax cuts. it lowers the tax rate for more than 800,000 businesses in the lone star state. according to the national conference of legislators, in all, 35 tax reform. last year, high-tech weaponry, and nove high price weaponry in front of us, a jeez whiz luxury segment.
10:37 am
pay $148,000 for a shotgun? would you? peter horn joining us. welcome to the program. >> thank you. >> point to it. this one, suspect it? >> yes. >> $148,000. >> correct. >> brand new. >> brand new. >> no an took value? >> no antique, right after the shelf. >> why $148,000? >> a lump of steel to the barrel, the action, lump of wood, and you make a shotgun. >> just a lump of steel and wood? >> well, for example, it's 270-400 hours of engraver working on the gun. >> totally hand made? >> totally. >> 95%. >> when i think of shotguns, i think of a birdie from england, just more accurate? >> not necessarily more accurate. any good gun is accurate. >> what's better? >> durability, the handling.
10:38 am
when you lift the gun up, it's fantastic in your hand. it's easy to maneuver, and the durability of the guns is second to none in the world. >> made in italy? >> 100%. >> 120,000? >> 10,000. >> this one -- why is it so cheap? >> because it has this one might have, let's say, 230 hours of end graving, and this one 430. >> okay. i'll open up the box. this is the carrying case for the deluxe model. this has got, i see all kinds in tools in here. what is that? >> all tools to work with the gun and oils to keep the gun working and items to keep the barrels clean, ect.. >> is thiss-- back to the gun, the 148,000. i have to close it up, everybody. okay. close this up. now, are you making only one of them? >> this particular gun? >> yes. >> it's absolutely unique?
10:39 am
>> yes. >> you buy that, no one else got one? >> you can buy a gun, come to me, you want a gun with a certain engraving done a certain way, and i'll make it how you want it. >> how many guns of more than a hundred thousand dollar price tag, how many do you make and sell in any year? can you tell me? >> about 50. >> fifty guns for over a hundred thousand. who are the buyers? >> the top people who buy the best cars, best cigars. >> americans? >> americans, europeans, south americans. >> predominantly americans? >> predominantly americans. >> really? >> yes, sir. >> are people buying it for an investment? it's value. people worry about inflation in the future, hard assets like this could be worthwhile. >> good question because i have somebody come in saying i want to buy a gun. i don't want an expensive gun. id said, why? he said i want it in my hand that i know is worth something. these guns, most people shoot guns like this. if i make a collection of guns
10:40 am
for somebody for a million dollars, they go into the museum or go into the house, and they don't shoot those, but up to 300,000, they shoot the guns. >> really? >> we just gave you one terrific commercial. >> you did, thank you. >> peter, thank you very much. >> great to be here. very interesting subject and good stuff. thank you very much. >> thank you, sir. >> elan musk wants an affordable tesla, electric car for everyone. the stock is going straight up. talk to one top deputy in a moment. the dow up 209. ♪ ♪ ♪
10:41 am
10:42 am
[ male announcer ] how you engineer a true automotive breakthrough? ♪ you give it bold styling, unsurpassed luxury and nearly 1,000 improvements. the redesigned 2013 glk. see your authorized mercedes-benz dealer for exceptionalffers through mercedes-benz financial services. >> the h1nd flu sweeping through venezuela killing 17 people, infecting 206. over 3,000 people in chile and argentina ordered mandatory evacuation after the vol volcan. the last time there was major impact was in 2002. a lot of evacuations now though. a true rainy day fund, seven months after sandy, the red cross has not spent one-third of
10:43 am
the 300 million raised to help the victims, even though many of them are still homeless. next, a man from tesla who responds to the proposed ban of tesla sales in north carolina. would it really be -- prevents unfair competition? just the stock over a hundred bucks today. we'll talk about that next. ♪ tdd#: 1-800-345-2550 when i'm trading, i'm so into it, tdd#: 1-800-345-2550 hours can go by before i realize tdd#: 1-800-345-2550 that i haven't even looked away from my screen.
10:44 am
tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 that kind of focus... tdd#: 1-800-345-2550 that's what i have when i trade. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and the streetsmart edge trading platform from charles schwab... tdd#: 1-800-345-2550 ...helps me keep an eye on what's really important to me. tdd#: 1-800-342550 it's packed with tools that help me worky strategies, tdd#: 1-800-345-2550 spot patterns and find opportunities more easily. tdd#: 1-800-345-2550 then, when i'm ready... act decisively. tdd#: 1-800-345-2550 i can even access it frothe cloud and trade on any computer. tdd#: 1-800-345-2550 with the exact same tools, the exact same way. tdd#: 1-800-345-2550 and the reality is, with schwab mobile, tdd#: 1-800-345-2550 i can focus on trading anyplace, anytime... tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 ...until i choose to focus on something else. tdd#: 1-800-345-2550 all this with no trade minimums. and only $8.95 a trade. tdd#: 1-800-345-2550 open an account with a $50,000 deposit, and get 6 months commission-free trades. tdd#: 1-800-345-2550 call 1-800-653-0240 tdd#: 1-800-345-2550 and a trading specialist tdd#: 1-800-345-2550 will help you get started today. >> we spoke about tesla, the
10:45 am
sale price, up, down, and now back up again. new high? >> that's right, the high today, -p 5.5%, breaking through $100 today. obviously, a really big deal for the electric car maker which is taking our nation by storm, particularly those this california. >> especially the tax credits. getting into that in a sec. nicole, thank you very much indeed. we are joined by the vice president of business development for tesla. talk about elan talking about making tesla the great affordable car. is there a new line of cars bought by anybody? >> well, it's interesting, stuart. this has been the mitionz from the beginning was to cat lies the mass market of electric vehicles with our own vehicles starting with that high end, low volume product, the roadster, mid volume, mid price offering,
10:46 am
and ultimately to get through to the gen3. we're also trying -- >> what is the time frame on it? >> if you mass produce, that's many years down the road. >> it's not so many years down the road, three to four years. we're trying to collapse time at every opportunity in the business, and we think that that's a reasonable time frame to do this, and it's been the plan for the beginning. i think we have now this national platform and people are learning about this for the first time, but it's been the mission from the very beginning. >> you got three things going for you, though. you got the 7500 tax credit that's available to a lot of people who buy your car. secondly, you still got tax credits from the state, i believe, which you can sell, and you are selling to other people who could use the tax credit, and number three, you got gas close to $4 a gallon -- well, above $4 in california and other areas of the country. there's stuff in the background doing well for you. >> i think that's true, but let
10:47 am
me clarify on some of the -- it's the vol -- volatility of gas prices and that stimulated conversation and desire to put tax credits 234 place that reward producers of electric vehicles and plug in vehicles, and, by the way, the federal tax credit came along before we did, or at least before we got to market. with respect to the california regime, that is a credit system under california regulation. that, too, existed for more than 20 years, and it's helpful in the early stages as we get our vehicles to market, but it's never been part of the business model or been part of the core to the business fran sis. we are going to be successful because we make great vehicles and attract customers to the value proposition we offer. >> north carolina, the sale of teslas, you can't buy them in the state of north carolina. the car dealers won't let you do it because it's online or something?
10:48 am
what's the problem here? >> again, urn current law, you can. we placed over 80 in the market already with 60 more on the way. the law that's proposed by the north carolina dealers association would prohibit north carolina residents from p transacting with us online, so learning more about the vehicle and ultimately making a deposit for a vehicle, so it's changing the lines, changing goalposts so north carolina no longer have the right to buy the vehicles in the privacy of their home. >> we caught a lot of car dealers who never heard of what was going op. can you beat this thing back? you should. >> well, you know, it moves through the north carolina senate kind of quietly in the dark of night, but as we shed light on the issue, moved over to the house of representatives in north carolina, there's a lot of questioning as to what's really going on here. i think it was inside baseball
10:49 am
initially, but we like to fight in the light of day, and i think we got a fair shot of turning this change to the law back. >> you have the stock of the day, and maybe the week, and maybe even the month, but you're doing well now. we appreciate you coming on to tell us about it today. thank you, den sis. >> thank you. >> next, my take on two stories from the washington post. one, losers in europe with excessive vacation. two, british personalities in the news, and why i am not mentioned. that's next. [ male announcer] surprise -- you're having triplets. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket ience.
10:50 am
it's just common sense. from td ameritrade. we don't let frequent heartburn come between us and what we love. so if you're one of them people who gets heartburn and then treats day afr day... block the acid with prilosec otc
10:51 am
and don't get heartburn in the first place! [ male announcer ] e pill eachmornin 24 hours. zero heartbur
10:52 am
10:53 am
>> the dow up, i think charles payne could make us all some money. guess what, the stock right now is valid. >> it changed what it was doing, trying to revolution news the automotive business, and now they sell to areas who need cell phone fours around the country using the fuel cell batteries, big time, and, in fact, none of the things went there in hurricane sandy, forklifts, things like that, working with
10:54 am
busses, power offices, and then there's a turn around play that is huge. i want people to know that in 2000, this was $114 stock, double top now, i want to see it close above 140, but if it could, $2 easily, but i think it could be higher than that. >> that's a dollar-48. >> a high risk idea, i admit that, but by the same token, trading at all-time highs, this could break out doing well. >> bldp. >> canadian company. >> thank you very much, chaferls. >> you got it. >> i hope you had a good memorial day weekend as i did. i went to a tom petty concert. neat. i enjoyed the late spring weather of upstate new york. that's living. then we had the whiners who had to get the anti-american two cents worth in, didn't they? here's my take on the
10:55 am
establishment media, and this is their urge to make europe look give you the center for. economic policy and research, a think tank. it is the rich countries we're told guaranteed by law, paid holidays, paid vacations, and paid days off, shame on us because we don't. horror. millions of americans work on holidays and don't get extra pay or a compensating paid day off. the french, 30 days vacation plus base till day. the austrians? 22 days vacation and a month's extra pay to help you get away on vacation, plus 13 paid national holidays.
10:56 am
so how is it going for workers over there? enjoying your paradise? clearly, the elites here want to drag us down all in the name of worker's rights. one more item from the washington post, today, you outline how many brits are employed in the america's news rooms. here's morgan. >> on a wind tour. >> the head of nbc, yeah, all british all here. the british elites are here with the same world view at america's elite media outlets, all government all the time, redistribution of the wealth, pay more tax, preaching the european gospel, cheering on obama's left turn. never trust the elites. instead, see tom petty and sing out to the all-american audience, chop wood in america's
10:57 am
vast forest. get a sense of space, scope, and boundless opportunity, and, yes, get a sense of american liberty. we went out and asked people a simple qstion: how old is the oldest person you've kno? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're ling longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need
10:58 am
to enjoy all of these years. ♪
10:59 am
>> don't worry, everybody. it's not up 200 points, but 191, still a solid rally. now charles payne has a smile like you wouldn't believe. i believe your clients are making a ton of money, aren't they? >> tremendous year. although, i'll tell you, there's anxiety with this. >> sure. >> you know, the audience needs to understand too because i hear from the audience sometimes they make a making money with charles idea, and next day it's 1.20, do they sell it, what's wrong, it's doesn't always go straight up. news flash, it seems that way, but the value proposition's in place. >> a great rally. thank you very much indeed. here's dagen. dagen: thank you so much. i am not connell mcshane,
11:00 am
thankfully. good morning. summer time rally, everybody. back from memorial day and back to buying. how long before ben bernanke throws cold water on this party? president obama heads to the shore, the jersey shore. arriving in new jersey this hour to see how federal money helped repair the hurricane ravaged coastline. a commander in chief who clearly needs the glare of those dc scandals to dim. the cyber threat, chinese hackers said to gain access to the u.s. military's most critical weapons systems. digging into that story and many more coming up on "markets now." ♪ nice rally, we'll take it. back from the long weekend, stocks now and every 15 minutes, nicole at the new york stock exwhaing looking at what, nicole? >> well, i'm looking at a big rally here. up over 200 points, dagen


info Stream Only

Uploaded by TV Archive on