tv Varney Company FOX Business April 18, 2013 9:20am-11:00am EDT
when the stock opened today, will the first number pa three? in six months, the price has been cut in half and millions own a piece of it. you will see the opening quotes. a fire breaks out at a fertilizer plant in texas. firefighters rushed to the scene. the plant explodes. first responders are among the many dead. the town of west is devastated. what a week. body and company is about to begin. w boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef bere opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find se good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket sence.
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any data that you have never given me any data. you are just giving context, frankly. i just see a huge train wreck. stuart: here is part of the exchange. "how many americans do you think know what a navigator is. i have no idea." the senator is not the only one who is worried. he is nervous. he is worried it will turn into a third world experience. more on that later this hour. a big piece of the president's agenda clearly not going well. now to apple. it didn't the low $400 a share yesterday. the weak demand for the ipad
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flat. i have to ask you this question, is it me or am i right in saying that the whole mood of the market seemed to change this week? >> yes. this market could fall back 15-20%. answer may be, well, why did it necessarily go up in the first place? we are in a no growth environment. they are getting in the way of growth. the news in europe is extremely bad and going to get worse. their economy looks just absolutely horrible. stuart: they give very much, indeed. a very clean cut opinion. we appreciate that. thank you very much. the opening bell coming up 20
seconds from now. maybe a gain of ten-15 points. please remember we were down 138 points yesterday. 352,000 new claims for unemployment insurance. that was last week. that is a relative high number. nothing like what you expected. firing trend, the layoff trend still very much with us. we opened 11 points higher. now, we are up 23. let's get right to it. apple. where did it open today? nicole petallides. nicole: at least they have an up arrow today. we have to keep a close eye on apple. people who own apple not only is they are hot on technology, but if they are on the s&p 500.
stuart: down 25% so far this year. down about 50% from september, october of last year. we get the earnings next week. a big buildup for that. tuesday of next week, i believe. the opening quote for apple had a fault right up front. that is what we were looking for. nicole: for dollars four cents. yesterday, we broke below $400. the first time since december of 2011. that was the last time we were below $400. stuart: thank you. i am sure we will be watching this all day long. two more big names. ebay, disappointing profit forecast there. a very weak european economy. ebay is down 4%.
a big loss. american express cardholders at spending like they used to. profits okay. that lower spending, that is a worrying big picture. look at toyota. a first there. the company will start producing a lexus model in kentucky. that is very interesting. i think that is the first time the ultra luxury high-end brand lexis will be made in america. nicole: right. they are getting incentives to do so. you see the stock is down slightly. your today, toyota is doing great. up about 20%. lexis being produced in kentucky right here in the united states of america. stuart: thank you very much,
indeed. a look at the big board. we are down six points. i have this for you. texas governor rick perry went after california businesses. now he is doing this a bit with illinois. launching a huge media campaign. the governor pointing out radio and print ads. the headline of it says "get out while there is still time." let's get back to the markets. joining the company now is keith fitzgerald. do you think that boston and then bryson have anything to do with that mood shift? >> there is always an element of that when it comes to terrorism. sadly, we are learning to live with it.
stuart: totally separate. a world in which everyone is slowing down. this money printing is not working any longer. >> i am not so certain that is the entire reason. i think his comments were spot on. do i have to ask you about apple. a lot of people saying it is a buying opportunity. what do you say? >> i would not buy it they have hung onto a call strategy for too long. the lack of innovation, not jobs have passed on, the teams have problems submitting to the vision. people will simply not be replacing their products as quickly. stuart: a nobody on apple
shares. now i have to ask you about good. a lot of our viewers are gold coin buyers. they are not traitors. they buy it and they hold it. if you are one of those people, would you be buying a 1387? >> well, actually, stuart, i am one of those people. stuart: overall, what do you get this market? >> i like energy right now. i like medical tech at the moment. particularly those stocks that are paying dividends. stuart: are you still bullish? >> cautiously, yes. as long as our giving out freebies and handouts, the expectation is there will be
liquidity in the marketplace. i am very cautious and i am limiting my risk. stuart: 30 seconds on japan. you spend a lot of time there. they embarked on the biggest money printing operation in history. do you think it will work? >> longer-term, no. i was just asked about that. i do not think it will work longer-term. they are repeating the same mistakes that we have. stuart: okay. we hear you. keith fitzgerald. thank you very much. do you remember bathtub jet by mark the guy who lifted up on taxpayer money. the bean counters say it will cost triple that. well over 3 billion.
we have the congressman who is going after all is next hour. seven early movers with the dow down 20 points. sandisk sees more money coming in cheer. the stock is up 2%. autonation making more money than expected. that stock is up nicely. better than expected profits for pepsi. not bad. is that 4%? i cannot see. 4% gain. everyone around the studio back and read is nodding yes. a big drop in sales for no kia. less mud coming in at american express. nothing happening with the stock. when less money comes in, cardholders sending less. is that a big picture indicator? i say it is.
united healthcare is up just a fraction. the mattress maker, select comfort, cut its forecast. it is down 3%. look at the market, overall. look at that. thirty-five points lower for the dow jones industrial average. we have opened lower. remember, down 138 yesterday. down some more in the early go this morning. time is money. taking exception to our coverage. we said he was politicizing the boston bombing by linking it to the so qwest or cuts. we have all of that coming up at the top of the hour. the agenda is falling apart. we will break down the breakdown
shortly. the "wall street journal" says carnival cruise lines spending 600, maybe $700 million on improvements to ships following major problems aboard the tryouts. does this mean he is winning? we will pose the question. the dow is down 27. what is an apples pipeline that could turn things around? the silicon and visor has the answer coming up next. the boston bruins game last night. ♪ (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade.
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stuart: that was the crowd at last night boston bruins game loudly and passionately singing. real emotion right there. all good stuff. now, please, look at this. the price of apple is now down $3.98 on apple. under four dollars again. joining us now, robert. is there anything in apples pipeline that you know of that would bring back the cool to this company? >> not that i know of. i keep hearing rumors that a tv is common for a wearable watch device. they will hardly be the kind of things that get people excited
like mobile devices do. stuart: the next iphone is just another version of the existing iphone. it is not revolutionary, it is not brand-new, it is not going off in a different direction. is that accurate? >> that is what i am hearing as well. you never know with apple what will come out. they have been maxed by lower-cost devices. i am holding the new htc device. it has the new facebook home on it. it is $100 cheaper than the iphone. i think this is why you are starting to see signals from the supply chain.
they will have a backorder because they are just not things the demand from a major partner which everyone is thinking is apple. we have seen this market that end. i was no longer the shining light as it once was. stuart: you are saying what a lot of other people are saying. there is no device on the horizon that will leapfrog over the competition, samsung, by merrily, which has already caught up with apple as it now is. >> i was just in china. i do not see it coming. maybe they have something that will come out last minute that will be surprising. i do not see it right now. stuart: google last. i know you have them. put them on, please. this is google glass.
what does it do? tell me. please. >> let me turn it on. take a picture. it just took a picture of you. you just talk to it. it gets you maps and directions and i can see my stocks close. i can see some of my texting. it is a new kind of device. i do not think this is right for the mainstream yet. it is clearly an early, i would even call it an a product. i do not they get will make it to the market this year. apple used to do stuff like this, you know, to get us excited about the future. that is worrying for me. i am an apple fan boy.
i am surprised by how well i am surviving. [ laughter ] stuart: aren't we all. thank you very much, indeed. very good stuff. we appreciate that. thank you. i want to go to the call. i have verizon with a brand new high. nicole: the shareholders are loving this one. the stock is up almost 4% at the moment. the dow is still to the downside. they did come out with their numbers. they beat the streets. that is good news for verizon. stuart: i see apple right at $400 a share. nicole: it was at 398 at one point today. stuart: it dropped below 400 comedy buys it to just get it above 400. nicole: one of the analysts this
morning said it is just getting reiterated a buy rating. there are still people on wall street who love it. stuart: okay. 400. right at 400 as we speak. we are on that all day long. thank you very much, indeed. it is though gold price time. where are we this morning? we are up two dollars. 1385 is where we are. obamacare has a third world experience. obamacare but the train wreck. obamacare unraveling. my take on that next. ♪ @
first of all, i have lived and worked in third world countries. i know how frustrating it can be. you think our motors vehicle department is bad? you do not know the half of it. obamacare reorganizes. they will make rules for you. they will tell you what you are going to get and what you must pay for it. that is third world. government workers administrating rules. are you working for this? mind numbing paperwork to get government care. many of the rules have yet to be written. many of those health insurance exchanges have yet to be set up. bureaucracy moves oh so slowly. obamacare looks like it train wreck and here it comes.
i will digress for a moment with a brief example of my third world experience. mailing a letter in a country that i will name. you go to line one to wave the letter. line two to buy this stamp. line 32 check that you have the right stamp. line four to actually mailed the letter. that is an extreme example. that is the kind of things that happen when government strike a change and run very big systems. can you imagine what you are in for if your help care experience goes third world? watch out. here it comes. ♪ all stations come over to missn a for a final go.
>> top democrat hoyer's reactions to criticism on this program over his comments linking the boston bombing to the sequester. he wants to set the record straight. we'll doo that in a couple minutes. they want to spend a billion dollars op courthouse construction. another agency says that's a lowball number. it should be triple that. we'll investigate. so much for president obama's second term bounce. his agenda, i say, falling apart, three key pieces going nowhere or in big trouble. a new hour of "varney and company" starts now. ♪ first, an update on the blast in texas.
extraordinary video out this morning of the explosion in the town of west, texas. it started as a fire at the plant, but after firefighters rushed to the scene, the plant literally exploded, leaving first responders among the dead. the area around the area is decimated. that's a direct quote. five dead, 160 # woundedded. the blast so powerful it registered a 2.1 on the earthquake scale and felt as far as 45 miles away. more updates as the information comes in. check the big board, moving a little bit lower. we're down almost 50 points, 14500 is where we are. to nicole, the big stock followed today dipped below 400. that's apple. where is it now? >> right, at 398.52, watching it closely because yesterday was a monumental daybreaking down below 400 for the first time since december of 2011, so,
obviously, it's been pummeled, down over 40% since the $700 days. i mentioned an analyst with a 725 price target, that's jpmorgan. i want that out there. saying apple evaluation declines could reverse keeping the overrate rating with a $725 price target. >> just hit the lowest level since december 22 of 20 # 111. i want to move on to another stock down, ebay, sales growth slowing. there is, by the way, talk of an online sales tax. harry reid is suggesting there's a vote on an online sales tax next week. ebay's way down on that. it's own growth forecast as well as the interpret sales tax possibility. ibay's down three bucks, what do you have to add on that? >> i have to add the european story that the chief financial officer of ebay saying the
european economy is weaker, weaker british pounds to dense paypal results. put that together, it's a loser. >> it is, big stock, big drop. thanks nicole. to hoyer, the to littization of the boston bombing linking them to the sequester cuts. here's a question a fox news producer asked mr. hoyer. i'm quoting directly. do you think this can help to make an argument to turn off the sequester? here's the congressman's response, well, i think there are compelling arguments to not have turned on the sequester and multiple reasons for investing in our security and don't pursue across the board irrational cutting priorities and buy the same percentage. i think this is another proof of that. if proof is needed, which i don't think, frankly, it is. that was tuesday. following those statements, here
was our coverage yesterday. >> the average boston -- honestly, we're so focused on finding out what the heck happened. >> linking them to the sequester cuts saying it's proof the across the board cuts were irrational. >> not helping support the family and justice to get at the people who perpetrated this crime, not about political opportunities. >> they ought to be ashame of themselves to to politicize a tragedy like this. >> after the coverage of the statements, we got a response from the office. again, quoting directly, at this time, we would like your anchors to correct their inaccurate statements and set the record straight with the facts. those facts that we just presented, by the way, were sent to us in a link from mr. hoyer's office. here with us is fox news contributor and democratic strategist. okay. i say congressman hoyer
politicized the bombing linking it to the sequester cuts. go. >> i don't know that he politicized the bombing, but he should have stopped at the first part of the statement talking about the sequester cuts saying what happened in boston is another example of the sequester cuts. look, i went to college in boston. love the city. i think we all do. leave it alone. it's too soon. >> i don't think i was inaccurate. i think i was accurate in my interpretation was politicized. >> he was asked the question, and he probably should have said now is not the time. that's what i would have said. >> okay. barnny frank, he's from massachusetts, went on to say the bombing was evidence that we should be raising taxes because first responders are exceptive. you got to pay for them. raise taxes. again, i thought that was app example of the to littization of the bombing. >> you know, i say to all the people, both sides of the aisle, anybody else who wanted to do this, give it a rest. it's been a couple days. if you want to make that
argument, and frapping's argument is well-taken, but given it a rest for the next couple weeks. let people grieve. let people do what they need to do, and if you want to argue about funding first responders, the sequester, do it later. i don't like, you know, i was in washington for 9/11, and i actually never talk about this, but evacuated with the united states senate, and spent a day with our senators, very few staffers, saw them in the natural environment without handlers for lack of a better word, and they came together. i don't think the american people understand that they really did in the privacy of just them, with few staffer around, they really came together, and there was no partisanship. i want to see that again. >> i agree. i would -- >> just, you know, there's, by the way, there are arguments to be made how we funded the response to 9/11 and boston, but do that later. not now. too soon. >> i extend my comments to republicans. if a republican made a political
comment that sought to take advantage in some way or other politically of the boston bombing, i'd condemn that e -- equally. >> agree. >> this is not the time for it. >> it's not. >> there will be a time rerationally discussion how we pay for the first responders who went to the scene in boston. there's a time for that by all means, but not me. >> i'm not liking this. we're in agreement again, never happens. national tragedies brought us together. this is actually a moment america's looking for right here. >> may never happen again. >> mark my words, this is it. >> yes. let's move on that's contentious. >> yes. >> i say that obamacare is unraveling, and yesterday's statement from senator baucus about, hey, it's a train wreck coming at you, and the comment we're in for a third world experience from a bureaucrat in
charge of implementing obamacare, it's unraveling. >> i think you are in the dream weaving state where you hold out hope against hope that obamacare is not going to happen. it's happening. it's happening. >> yes. >> move on. implement it. >> i see your point. i agree. it is going to happen. they will try to implement it, but i think it will be chaos, absolute chaos. >> any time you implement my large kale program, it's chaotic. is this going to be the seamless transition people think it might be? it never is. medicare was as well >> senator rockefeller said it's the most complicated piece of legislation ever passed. if it's not done right, it'll be worse. >> right, and he's right. it has to be done right. it's complicated. it's a massive chunk of our economy, of course. >> one thing is the president's been speaking masterful with respect to public relations setting this up at this stage in the game. we're supposed to be loving
this, heading into the midterm elections, this is a problem. that's why we get reactions when things like bombings happen because i think the democrats are desperate right now. it's falling apart. >> i got to tell youssef mejri -- you were preaching from the same book. this is not 2010. we voted on obama care. >> she's right. >> she's right. >> we voted for it, but as it's implemented, is it great? >> doo i think it's great? the fact my kid -- >> do you think it's great the way it's implemented and americans like what they see? >> they like the fact when they go to a well visit, there's no money. the fact they keep your kids on the insurance longer, yes, and in 2014, when the physical parts of it are implemented -- we'll have that discussion. obviously, honestly, liz, they came back and waived the two factors. like it or not like it, voted on it last november and voted they liked it.
we would have had romney president. >> out of time. bell rings, round whatever it is. [laughter] thank you very much. >> thanks so much. >> simple as doing a google search, type in "pressure cooker bomb," hit enter, click a link, find out how to build one. question, is this freedom of speech to be protected under the first ea. or should the sites be shut down posing a danger to the public? we'll ask the judge that direct question, 10:45 this morning. now, i got to draw your attention to the stock market, which is taken another leg down, down big time. why? because of this silly fed report. okay. now, that's an indicator of manufacturing conditions in the, what is it, charles,? the north -- philadelphia, a broader area. >> typically three states, empire state yesterday, disappointment, but this is larger, one the street looks at, at 1.3, down from march, and well below what the street was looking for, new orders
negative. the only thing you might say is positive was employment, better than march, but overall, this is a hugely disappointing number. >> add it together, retail sales down in march. they just didn't taper off, they were down in march. the last jobs report was office. half million people dropped out of the work force, and now manufacturing, at lee in this latest report, not doing well. >> manufacturing is supposed to be the one, part of the economy that makes the difference. >> okay. i got to say i think that this is -- we've seen this before. the last three years we've seen this. in the spring, we hope for a robust recovery, hopes dashed in april and may and march as well. back to icole, two big winners today. let's hear about that. first of all, auto nation, people buying cars apparently? >> that's right, apparently, absolutely, yes. they came in with an all-time record quarterly earnings per share, stronger than expected profit with it jumping 14%, strong new vehicle sales.
the stock is up 4% right now. year to date, up over 11%. people are out there at auto nation buying cars. >> verizon, is that a new 52-week high, all-time high, i know it's a high. >> i charted it, jumped out here, close to 2001, i go with a ten-year high, and stuff about 3.5% at the moment, but hit the highest levels, obviously, seen in over ten years of 5155. they came out with strong numbers, strong wireless business, and also improved growth in verizon fios and their internet television service. >> by the way, nicole, i heard that -- i just saw it, actually, apple touched 395.27. that was the low. that's all the way back of december 2011. now it's at 396. it's down again this morning. >> tough stuff. >> thank you very much, indeed. joining the market now -- the company now, is ace market
watcher reid. choete. >> yes, like the school. >> thank you. >> welcome to the program. >> thank you. >> we had boston this week, the ricin scare this week. has that affected the market at all? >> the market doesn't like uncertainty, and factors of volatility in the market add to the concern out there. it's work. >> it's a side bar, so to speak, but some limited impact? >> it's a side bar. we're in the heart of earnings season, and the majority of companies are reporting this week, and we're trying to process the data and how these are doing. >> all right: ben bernanke pickups a storm, 85 billion a month, the japanese print more than that, constantly. it doesn't seem to be working in this the sense that economies are not growing in a robust
fashion. is that a reason for the decline? >> i think part of the reason for the decline is you have seen unemployment numbers, keep in minute, we're about 3% off the highs for the year. long term, companies are earning money. s&p 500 companies are about to make 108 this year, and profitable companies, long term, higher, and that long term, especially in the second half of the year, housing and some of thed 340 rat expansion, we see it being better. >> that's interesting. it's a negative mood out there at the moment. a lot of people are running away from this thing, especially this week, but you're saying, oh, watch out, watch out, this thing will turn. do you think it will turn >> >> market corrections are normal. >> that's all this is, a correction? we'll get over it and move on; is that correct? >> we're 3 #% from the high, it's not a big correction. it could be a pause before we move forward. >> okay. if i'm an ordinary guy sitting out there with a little bit of
money, should i be jumping in and buying now? stocks? should i buy an index, for example, of stocks? >> if you have a long term horizon, any time is a good time to buy into the market. we see the market fundamentals for the rest of the year improving and, you know, no one can time the market perfectly. no one's proven to do it. >> reid, unphased by this week's negative activity, and you say if you a long term horizon is long term, buy. that's it? >> that's it. >> thank you very much for joining us. >> thank you for having me. >> thank you. the president's second term agenda, i say, is falling apart. three issues, gun control, obamacare, and tax the rich, the budget plan, all, in my opinion, up raveling before our eyes sm -- eyes. we'll deal with that next.
ing >> watch apple, stock of the day, the week, the month, and probably the year, too. below $4 #00 a share, 398 where it is absolutely right now with a low of 395. lowest since december 2011. the stock down 25% since january 1st. china trying to figure out how cases of bird flu are transmitted from person to person. are they going from person to person? so far, the latest strain of bird flu in china killed 17. investigators can't find any sustained evidence of bird flu
transmission between people. that's important. the pentagon cement 200 soldiers to jordan to contain violent there with syria. the pentagon says the troops are there just in case any operations are needed to secure the safety of syria's weapons. back in a moment. friday night, buddy. you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com.
guns. yesterday. the bill on becket checks failed to make it out of the senator, and president obama upset about the failure of the bill. listen to this. >> this was a shameful day for washington, but instead of supporting this compromise, the gun lobby and its allies willfully lied about the bill. >> all right. willfully lied. all right. next item. we told you earlier this morning that baucus, a key author of obamacare warns the law may be a train wreck, strong words. timely, the president's tax the rich plan, completely dead on arrival. all right, everyone, am i wrong to say that this these three areas the president has failed? first of all, tax the rich plan, the budget, dead an oi rival, liz. >> yes, it stalled out. the president -- i mean, the senate -- the democrats control 55 of the seats in the senatee and, you know, even larry summers, former top white house economic aid said, you know,
it's a mistake to think it's progress that continue to legislate and have more legislation. that is not progress. >> what's failing? tax the rich? don't want to do that anymore? is that the nature of the failure? >> that's most, and, yes, the grand theories where the president leaves the fine print to congress to fill in, that clearly has failed. >> okay. charles, you're not going to argue with me about obamacare on raveling, are you? >> i'm not going to argue with you or max baucus. you know, julie may have to call to figure out what's going on. it's a top democrat considered one of the architects of it, but the implementation of it is the thing. he's worried -- we promised exchanges. these exchanges are not going to be ready. a few that are are not going to have choices. it will be an unmitigated disaster who pays the brunt of this are individuals and small businesses. he knows this. >> the white house says the republican governors oppose the exchanges, and that's unfair, but the republicans say, hey, wait a second, our state
taxpayer foot the bill for the costly exchanges. we have a history of failure in the past. >> even the states that want exchanges, will not be ready on the time line they said. they won't have the choices that were promised. the implementation of this has been a disaster and writing is on the wall. >> if you don't get the consumers in the state health exchanges, stuart, they will fail. >> okay. guns, a subject we've covered to a limited degree on this program, but, yesterday, set back in the senate for the background check part of it. that was a big setback. i don't think the president gets -- he doesn't get restrictions on so-called assault weapons, does he? i don't think he gets that or restrictions on the size of the magazine, the ammo clip, and he's not getting background checks. that's fallen to pieces. >> four of the senate democrats faced reelection in very con receivertive states. that's the argument from the white house, why they can't get the majority pushed through the senate for the bills. >> s&p on the screen now, just
dipped below the 50-day moving average, first time seen this year. it's a chi support level so they say. looking i'm not a technical analyst, charles, i don't watch support levels, but is that important? >> 1540 is important, the key number to close above today. >> drops below that line -- >> if below there, that's a red flag. >> down 58 on the dow, 14, 5. apple is dropping below 400, and it stayed there for some time today, down at five bucks at 396. apple is kept up on the screens, i believe, the bottom right hand corner of the screen as you look at it. the "wall street journal" says carnival cruise lines spends $700 million on improvements to prevent another disaster like triumph left adrift for days. is that an admission of guilt? the lawyer who is suing carnival on behalf of the pages responds to that next.
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blow. >> falls below, it's bad. >> we're watching it. charles will make you money now with the blackstone group. >> yeah, the blackstone group reported this morning tremendous numbers, profits up 28%, the distributable earnings rep, up 137 134*%, assets on management inn, the stock was looking up at one point like a buck. the fact that it pulled back, i think, is a great opportunity to get in. >> blackstone is private equity? >> prief equity. >> that's right, private money invested for you. glorifieded mutual fund? >> a privatety equity fund building up assets in real estate, credit, and hedge fund business. the private equity they have not done a lot with, but assets in management are human. >> they would be angry if they are a glorified mutual fund. i take it back. >> you'll miss good parties. >> i never socialize. carnival cruise line spending up
to $700 million for improvements to things like hospitality, fire, and power systems. this comes after that disaster aboard the cruise ship triumph left adrift in the gulf of mexico for many days. joining us is mike, suing carnival on behalf of the passengers. mike, i just want to get details straight here. you've launched a class action suit representing, i think, just the passengers on the carnival triumph trip; is that correct? >> that's correct. >> do you regard this money spending by carnival, over half billion dollars, do you regard that as a win for you because it's almost an admission of defeat and of guilt by carnival? >> i think you could see it as an implicit admission that their entire fleet needed upgrading, but as it specifically relates to the case, i can't say it's a victory. i think with the class action suit filed is a long battle for the passengers, largely due to legal maneuvers that the cruise line carnival takes in order to
avoid any and all responsibility when things go wrong. >> are you absolutely guaranteed that you get jurisdiction in the united states to try your class action suit? >> well, absolute guarantee is a risky thing to say, particularly for a lawyer to say, but, yes, that is because what the ships have done is required all suits to be in florida. if you're an injured cruise ship passenger, or anywhere, you get heart, you filed in florida. >> foreign workers who work on the cruises, they are not paid very much money or treated very well. are you going after that element as well? >> in the triumph case, no, but that's an excellent point, it's a dirty secret of the cruise ship industry. you hear about the technical updraidz, but that $700 million comes on the backs of the crew members working on the ships. they are from third world countries around the world, and they face some of the difficult, most difficult conditions at sea, and what we're seeing,
stuart, is a direct buy product of the cruise line's treatment of the crew members, and in particular, by forcing them to go to foreign arbitration making the ships less safe. >> are you the first, will this be the first class action lawsuit on behalf of passengers who are aggrieved because of a cruise? >> no. there's been several class action suits throughout the years. in fact, the senior partner at the firm headed the first certifieded class in a maritime case in the 1990s, related to a virus outbreak. >> fast now, when you say -- it's going to take a long time for passengers to get through the legal system, are we talking many years here? >> no, i wouldn't say many years. fortunately, we're in federal court in miami, florida, and, generally, they are efficient, well-funded, unlike many other state court systems. i think maybe a year to two years, but that is the great thing, stuart, as contra posed in italy, they sued there, that's a carnival subsidiary, that could take five to ten
years there. different, it's a few bright line. >> we are following the stock. always a pleasure. thank you so much for joining us, though. we appreciate it. thank you. >> nice seeing you, stuart. >> break away fast to get you to apple, hitting a new low, 394. that was moments ago. now it's back to 396. by the way, we are at the lowest levels on apple since december of 201 #. it was a darling, wasn't it? now it's not. remember bathtub jeff in i think i gave him that name. the gsa administer, here's the guy, remember him? the gsa is at it again. now asking for billion dollars for infrastructure. up next, the congressman who is trying to stop it.
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okay. there you have it. the gsa asks congress for a billion dollars in taxpayer money for courthouse construction, but another government agency says it's going to cost a whole lot more than that, triple the amount, try 3.2 billion dollars. congressman joining us now, the chairman of the committee on transportation and infrastructure. congressman, this -- the initial number, a billion dollars, requested for courthouse construction, do you think that's too much? >> well, when you look at it, it looks at the -- a billion dollars is too much, but when the gao did a study, they believe it's going to cost $3.2 billion. this has been going on for quite some time. in fact, for several years now, i've been fighting the issue with the gsa and federal judiciary. the federal judges are in working with the gsa to develop the courthouses. they overbuild them. they use numbers projecting out numbers of judges in the courthouse that never come to
fruition when they finally build these things. we overbuilt courthouse, and they are always over budget, so we're pressing hard to save taxpayer dollars. >> how is it possible you go from a billion dollar estimate for courthouse construction to short period of time. how did that happen? >> well, the gao looked at the way the white courthouses have n developed in gsa and the federal court finding over the years there's things they underestimate significantly so when the time comes to build these things and when they are built, they go way overbudget. the gao looked on criteria of 33 past courthouses, in fact, over ten years that have. built, and they found these cost overruns run rampant, and they believe the estimates will be $3 billion. again, we got -- >> sorry, as i understand, a federal judge, was it a federal judge appearing before you and said, look, i need this space? we, the federal judiciary, we need more courthouses.
we need -- he made the case, didn't he, that we need this stuff. >> no, he didn't make the case. he did not make the case. when you rook at this, look across the system in the federal courthouses, the average time usage on a federal courtroom is about two hours a day. what we've been and what i've been pushing for the last several years is courtroom sharing, that two or three judges use one courtroom because they're underutilized. in my committee, there's a full committee and six subcommittees with one major room that we share. we work it out. the same can be done at the federal judiciary, but at this point, they started to look at it, but they have been unwilling to do it in a sights way to save the taxpayer dollars. that's what we talk about, precious dollar, and the judiciary pushes back saying congress doesn't have the right to tell the federal judiciary what to do. we're not saying how to administration justice, but how to spend federal tax dollars. >> congressman, you know what's going to happen.
suppose you are successful, push back, get this construction costs way down. if you do that, you know what's going to happen. they turn around and justice will be delayed. the courtroom facilities won't be adequate, and they say, see, that budget cutting, that congressman is to blame. what at what he did to us. you can see it coming. >> you may be right, but i'm not afraid of that because it's too important. the times we live in today to be spending federal dollars, taxpayer dollars in a wasteful way, doesn't matter if it's the judiciary or another branch of the government, we have to make sure we push back hard on them to make sure dollars are spent in an first time -- efficient way so we don't squander. when they build a new courthouse across the street in miami, for instance, there's a courthouse nobody's using today. get that off the federal asset sheet. let the private sector come in. in fact, the community college has been trying to buy that courthouse for years and can't do it. we got to be smart about this. >> yes, sir.
congressman bill statuter, republican, pennsylvania, thank you jr. joining us, appreciate it. >> thank you. >> do it at your desk, log on to google, type in "how to make a bomb," and press search. up come the instructions. is that freedom of speech or a dangerous to society? the judge is next. tburn 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 and don't get heartburn in the first place! [ male announcer ] e pill eachmorning. 24 hours. zero heartbur how old is the oldest person you've known? 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.
bucks. second day in a row for that. last time apple traded this low was back in december 2011. down eight bucks. shares of verizon, new high, up 3% at the moment. big gain there. verizon reports strong earnings in the first quarter, profits up 16% adding 677,000 new customers in that time frame. that's big. what's the top worry for investors according to a new study? washington, that would be washington is the top worry. a ubs study found 73% of investors are extremely or very worried about the political environment in washington. next, the information for the bomb in boston. easily found on the internet. should we sensor that information? judge andrew napolitano is next.
(train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities. >> more on the horse race, that would be apple. look at this, new low. 393. it actually touched, the low, i think, 393, nicole. >> amazing how people are dumping out of apple. honestly, down nine bucks at 394, the lowest level since 20 # -- 2011, nowhere near 700 bucks it was in september, and it's not like they don't have anything coming out. i thought to myself, right, a couple new iphones, a refreshed version, another version. there's been talk about the ipod, ipad watch or whatever that is going to be. that might be cool.
apple tv. it's not like it's a company that, you know, is horrible. i mean, what's with the dumping? >> well, do you remember in the fall of last year when apple went straight up, if it took a dip, that was the signal to buy this thing. now it's going straight down. >> that's right. >> and nobody is using this as an opportunity to buy. they are all just selling and selling and selling. i'm waiting for the bounce, ad 340est bounce, waiting for it, i'm not seeing it. >> a lot of people buy in here to even out because they bought it at 675, split the difference the another note worth noting is exxon mobile is again the largest company worldwide because apple lost the reign now in the top spot. >> i want to know where it closes today because that's the important thing. i have all this intra-day movement, but where does it close, 400 or below? i want to know. nicole, thank you indeed. look at this ad. oh, dear. a circular from today's newspaper for the latest sale at
macy's, on sale now, a pressure cooker, $19.99. if that's not bad timing, i don't know what is. similar to pressure cooker bombs made in -- in boston is easy as an internet site. are they freedom of speech, all rise, the judge is here. tough question, isn't it? >> yeses it is, even for an absolutist on the first amendment like your humble correspondent here, it is. >> humble? [laughter] >> listen, you can buy books, excuse me, you can take out books on bomb making from libraries opened by the government. you can find a book on how to make a home maid bomb owned by the government and overred -- offered by the government. it's absolutely inconsistent for the government to stop speech among private people when itself
offers this speech. it's against the first amendment to take a category of speech, particularly hateful and harmful now, and ban it from discourse forever. the first amendment would not personal it. you can't ban the sale of pressure cookers. we know that. you can't been the no know-how how to use them. >> child pornography. we have banned that. that is not freedom of the speech. >> correct. >> we banned it. correct, correct. do we want to expand the banning beyond child pornography? the theory this is the harm occurs instantaneously to the children who are images are photographedded. the harm does not occur to the reader, though you argue there's harm, but the harm occurs to the child, not to the reader of the internet to make the bomb. just occurs if the bomb is made. >> judge, this way, the online
website is called inspire. law enforcement believe that the many american propaganda for al-qaeda put up instructions on how to make the bomb on inspire, and, in fact, one of the terrorists was alleged to have been using that information on the website to attack the new york federal reserve building. what do you think of that? >> i think it's reprehenceble they take violence into their own hands, but it's not reprehenceble to read about violence, talk about violence, or learn how to commit it. once you take this step, think about all the language the government would be in the business of banning, and all this stuff about how to make bombs would go underground finding another means to know how to do it. >> you can't go midway and ban a section and say, right, anything about bomb making, banned, get rid of it, can't have it? >> the reason you can't do that is because some bomb making is legitimate. the government makes bombs to
use for military purposes. >> not out there on the the interpret freely, are they? >> yes, they are out there on the internet. you probably own stock in corporations, as wealthy as you are, that have an interest in the defense industry, and you as a shareholder could get hands on that. >> really, i could? >> not all is classified. certainly, the fact they are doing is not classified. >> isn't that hate speech? >> no, even hate speech is protected. hate speech is protected as long as -- >> it's mayhem that's not protected. >> i could have sworn the anarchist cook book was banned. was that just lore? >> i think it was lore that was banned. the theory of the federal government is that individuals should decide what to read and see and hear and distribute. the government doesn't make those decisions for them. >> hate speech sows violence is outlawed >> right? >> all speech is incompetitive advantage wows when there's
speech to rebut it. if there's stuart, let's get him, the mob gets him, i could be funnish -- punished for speech, but they say, what, are you crazy? it's stuart, and mob lays back, my speech is protected. >> i want to recommend your editorial in today's "washington times" about social security being a ponzi scheme and tax as theft. it was great. is is on the website? >> thank you, did you agree with it? that's another story. >> we didn't have time to discuss it. such is life. >> thank you, guys. >> $25 million a day is how much the postal service loses. i repeat, $25 million a day. we'll detail it next. everybody has different investment objectives,
>> follow-up time with charles on making money. we're following up, first of all, doing green mountain coffee roaster; right? you liked it weeks ago. >> yeah, february 15th at 44, did it again in march, 53, 55 right now. it sounds greedy, but i think it's going to break out north of $60. we're already up big, but i want to people to hold it. ii you have not, i think the stock has a lot of room. 41% of the stock is short right now. >> okay, crispy cream, follow-up. >> a loss. >> you liked it?
>> liked it, went down, earnings held up, but web bush knocked it down breaking support, losing 7%. you know, it's one of these names that instead of holing on to it, put the many elsewhere. >> the postmaster general, everybody, he tells congress that the u.s. postal service is losing $25 million a day. blaming congress for not letting him make the necessary changes. frankly, i agree with the man. you can't do anything on the postal service without congressional approval. >> hands are tied. he wants the flexibility to have post offices in shopping malls or pharmacies and use the buildings and put the federal judges in there. >> sell the places, sell the real estate. >> that's the problem, stuart. also, the post office, get this, 80% of the budget goes to labor, and fedex, just 30% of the budget is for labor. >> no way out, is there, charles?
>> no way out, using the right buzz words, urgent, need flexibility, you know, the idea -- why put the man in charge if he can't operate doing the things he was supposed to do. >> congress turnedded down the dropping saturday delivery. turned it down. >> and complain about sequester cuts qels. i don't get it. >> saturday delivery is still in tact? >> yeah, it is. the highlight reel, though, is in tact, and that's coming up next. thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to theinest comforts above. we're not simply saluting history... we're making it.
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[ male announcer ] advair diskus fluticasone propionate and salmeterol inhalation powder. get your first prescription free and save on refills at advaircopd.com. >> the darling of wall street now is not. >> but the problem is the lower cost. >> people on wall street loves it. >> now they have trouble to commit to decisions and finally they will not be replacing that apple thought they would in the past. >> so far resists year down
50% from september of last year. >> fee apple is no longer "the shining" like it once was. >> it is now at 396 it was 393. you are not buying? >> i don't know where the bottom is i would rather chase about and feel comfortable because i have tried to pick the bottom and you cannot. >> you are in investor? >> i am. apple has a tiny short position that would not even benefit to drive it higher. >> but expectations are lower. [laughter] that is the good news. stuart: is a sea change. dagen it is your time. dagen: president obama arrives in boston for a day of prayer and remenc