Skip to main content

tv   Varney Company  FOX Business  May 15, 2017 9:00am-12:01pm EDT

9:00 am
>> primarily because it happened mostly overseas. maria: they said it will get worse today. we will see if it does. have a great show. see you tomorrow same time, same place. seize the day. "varney & company," and here is charles payne. >> i'm charles payne, stuart will be back on thursday. we begin with the massive worldwide cyber attack. the word unprecedented is being used to describe this attack that hit hundreds of thousands of people and organizations and 150 and continues to spread this morning. it really is, even though the damage has been mitigated, it has been significant enough that it's believed to be the world's biggest on-line extortion attack ever. cyber security stocks right now, indicating higher this morning. meanwhile, in china, 1.4 trillion dollar plan to build roadways and the trump america
9:01 am
first plan. and so far, green arrows on oil and stocks and we have more positive economic signs and that's giving investors more confidence. we're covering it all. "varney & company" is about to begin. ♪ >> countries and government agencies are bracing for another wave of cyber attacks after what happened on friday. ashley, you've got details. ashley: i do, 200,000 computers at least, the theory, because this happened late friday, as more people come back to work and fire up their computer, if that bug is in there, that ransomware, that starts a whole new wave. so far that's not the case. the u.k., national health service was hit hard by the bug on friday and they are reporting they don't see any new waves of attacks today.
9:02 am
what does it do? the ransomware basically locks the computer files and a message comes up, i was reading this, saying the files will be locked and eventually destroyed unless the user sends money, via bitcoin. the other part it spreads. once you open it up on a network, it spreads to the entire network. very damaging and crippling. 150 countries and microsoft, it's a microsoft word program is impacted here. they say if you have stalled the patch that we sent out last month or several weeks ago you wouldn't have had a problem with this. what we're finding out, big companies, governments, even, you know how often, you see update your security word. this is an example of what happens when they don't do that. >> we have a security expert, chris, explain to us as well as you can, how this was able to spend so far so quickly and what kind of demands were they
9:03 am
making? >> yeah, so, we've seen worms before, but not recently. the latest, last big worm was in 2008 and it wasn't that destructive. we've seen ransomware on the rise, but never seen the combination of the two, a worm for spreading the ransomware and that's why this has been unprecedented and so destructive because we've never seen ransomware hit hundreds of thousands of computers within a few days. >> does it make it, to your point, the hospitals have been paying the ransoms and feels like a lot of this goes unreported. if it is reported we don't hear much in the media so it seems like one of the things that is encouraged because the guys who do it they don't ask for a lot of money. in this case they weren't asking for a lot of money, but they had so many targets. >> exactly. they asked for a small amount because they wanted it to be easier to pay and than to try
9:04 am
to restore your computer, this case, around $300. in this case, this is one of the interesting things about it is they're saying that the ransomware attackers were not prepared for so many people to get hit and so if you're trying to pay the money to get your computer files back, they're just not responsive because they're getting inundated with thousands of requests, so right now, you really can't pay and get your computer back on-line. >> wow, of course, they're asking for bitcoin. the response has been over the years, just the bad guys are always one step ahead. can that ever change, that dynamic? >> well, i think part of the reason they're one step ahead is because they take advantage of when people don't do the basics with their computer. in this case, this patch from microsoft, the update was available for eight weeks and they're taking advantage of the fact that a lot of organizations find it hard to patch, organizations like hospitals, find it very hard
9:05 am
'cause they can't just take sensitive equipment down at random sometimtimes. we have to change the way we manage our system and this would be a big wakeup call for that. >> and a lot of companies, too cheap to do it right, i think, too often and protect their customers. chris, thanks a lot. very informative, we appreciate it. >> thank you. >> move on to the global economy. china over the weekend gave more details than a trillion dollar plus plan to build roads, rails, asia, africa, europe. fiscal times columnist liz peek joins us, this could be the mark of the changing of the guard. and could change china to the top economy. am i being too worrisome? >> no, they're tracing a pattern giving them enormous breadth in asia and africa. the only issue, it's supposed to cost over a trillion dollars as you mentioned.
9:06 am
china now has debt three times its gdp level, this is not a country that has an open checkbook. they're acting like it. >> 3 trillion in foreign reserves. >> that's shrinking fast. >> and 3 trillion is better back stop than we have. >> no question their checkbook is better than ours. and we have to get the private sector involved and that's what the trump administration is going to do. the federal government is not going to have a 3 trillion dollar program here. but this issing is that china is incredibly focused on and at this for several years now, they're convening a large global conference to talk about it, and they're very much hoping that the north korea threat will keep the west from basically intervening here and trying to slow their progress. >> is it ironic to you in any sort of way, as the west, america and a lot of europe are rejecting so-called globalism,
9:07 am
communist china is embracing it? this is where they make the leap, tunnels around asia and they're going to have to slow commerce, this is a new road that-- >> they're rebuilding africa for many years now and putting in the infrastructure. >> without a lot to show for it to be fair right now. ashley: the long game. >> i was just going to say, the worrisome thing to me, china versus the united states, i've had american corporate executives talking to chinese people in an official capacity say what's your time frame? theirs is a hundred years, ours is a week. that's a little bit of an exaggeration, but corporate america and our government does not look a hundred years down the road and china does. >> james, we'll get you in. >> i'm sorry. >> first a quick look at the futures. we'll start the week to the upside and the futures have gradually gained momentum. 30 minutes away. and nasdaq taking a break, which is not a big deal
9:08 am
considering how big of a juggernaut that's been. oil moving higher and last week was, thursday and friday, a good day for it. and now saudi arabia and russia are calling for a look at the opec production cut deal, that's a boost to the open. we're all over the retail ice age and lots of weak sales, but many big name retailers are reporting, target, home doo he poe, and a big gap. and the major averages lost double digits -- it's double digits since the election. 75% of companies beat, only 18% of companies have missed. and james freeman, wall street journal editorial board, you think that things are looking up when it comes to the corporate profits. this is a great quarter. the expectations were high and
9:09 am
the performance delivered higher. roughly 13 1/2% earnings growth, charles, you have to be excited about it. the run-ups since the election. a combination of positive messages from washington moving toward growth economics and we hope to maybe get the tax cut maybe this year, but that combined with strong corporate earnings. >> right, it's because last year, we had gone through maybe a year and a half, two year period of earnings recession and people were getting nervous. i started to extrapolate the numbers and this could be the best quarter ever if earnings continue the way they are. the companies are flush with cash and allowed to bring money back and maybe they'll start to invest in this country as well. >> we've seen that and companies are investing more, that's what's been missing, we need to see that. we're in the soft data versus hard data. stocks are up and expectations
9:10 am
are high and consumer confidence still good, but we are waiting for that growth breakout, the retail numbers last week, not quite what we were expecting, but, you know, a lot of positive signs here and we still have fairly loose monetary policy so i think, you wonder with all the stuff going on in the world, why stocks aren't more volatile, i think that's part of the reason. >> look, whathe way of hard data is earnings are up over 13%. the best quarter since 2011 and if that continues, basically the valuations look okay which is what everyone is focused on. >> i want everyone to check this out. it's the latest big idea from elon musk, he's using huge machines to tunnel under los angeles as part of a plan to eliminate traffic in the city. and looking for a name. speaking of names, remember merrick garland, he was president obama's pick to fill
9:11 am
justice scalia seat. and there's talk that president trump may offer him comey's old job at the fbi. and derek jeter, yankees retired his number 7 and 2, around him with a plaque at the park. and he helped them win, and almost rained and then they remembered it was derek jeter. and more varney after this. >> memories fade, but family is forever and i'll be eternally grateful to be a part of the yankees family. at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. brtry new flonase sensimists. withallergy relieftage.
9:12 am
instead of allergy pills. it delivers a gentle mist experience to help block six key inflammatory substances. most allergy pills only block one. new flonase sensimist changes everything.
9:13 am
9:14 am
>> quick check of shares of amazon, the ipo is 20 years ago today. look at that, no one would have thought, no one.
9:15 am
republican senator says that president trump should nominate merrick garland for fbi director and senate majority leader agrees. judge, some heavy weights there. >> i can't imagine that merrick garland who has a lifetime appointment would want a job where he could be fired as a show boat. at the reason for firing james comey. not only a lifetime job he's the chief job in the united states court of appeals for the district of columbia circuit. translate, the most significant single judicial position in the country below the supreme court of the united states. it's hard to say that he would give that up. the flip side, what did he do before a federal judge? he was a very high ranking official in the justice department. what is his most significant prosecution?
9:16 am
everybody in this room and listening to us knows of it, tim mcveigh. he didn't try it, but supervised it from washington d.c. he knows the workings of the justice department and the fbi. charles: but mike lee and mitch mcconnell, it feels they're coming at it from an angle, suitable to both sides and pass-- it would be hard for the public, the mainstream media and democrats or anyone to say this is a politicized nominee. it would be hard not to to agree with this nomination, no matter what side of the aisle you're on. >> i think you're probably right on that. the president cannot appoint a political person in light of what we just went through with jim comey's decisions on hillary clinton and the president's decision, whatever it was based on to fire director comey. this person that replaces him
9:17 am
cannot be political. but i-- the little bit that i know about donald trump, i don't think this is the way to get your candidate through, it create a public ground swell for the candidate. i think you're-- the way to get the candidate through is to whisper in the president's ear. i have great respect for mike lee and i doubt that he's just shooting from the hip. charles: mike lee, pivotal in getting elk had-- health care through and maybe not horse trading, but they're incredibly important, particularly mike lee with the conservatives in the senate. >> louis freeh, one of the predecessors was a federal judge when appointed to run the fbi so there's precedent for leaving that rather lovely cushy life appointment. charles: one more for you, judge. wells fargo may have 3.5
9:18 am
million unauthorized customer accounts, far more than estimated. what do you say about that? >> the lawyers for wells far go he claim that this 3.5 million dollar number was generated by a series of hypotheticals produced by plaintiffs' lawyers and they dispute it. let's say it's true. it obviously makes the case a lot worse than we thought it was. charles: 1.5 million, 3.5 million accounts, the bottom line, if they're taking customer information and opening up fake accounts, as a way to generate business or-- >> it's an act of fraud on a monumental scale. the numbers are not that great. so this is not madoff, it's not that kind of a loss, but the human beings involved without their knowledge or consent, it's enormous and it's going to cost wells fargo a lot more than just the job of the ceo. charles: right, well, the good news, i think, is that they finally began the clawback ocs because they were
9:19 am
rewarding the people involved in in millions and millionsf dollars and they defended it to a degree for a long time. >> you know, you just, there are statutes against this and nobody's been prosecuted. they're putting everything in the hand of plaintiffs lawyers. were there crimes committed? of course, where is the government in this? >> never happened. no one ever pays on wall street. see you later. the minew miss usa. some are not satisfied with her conservative answer. >> she says health care is not a right. she won't call herself a feminist and the outrage ensues. jack dorsey, defending president trump's twitter habit. you'll hear what he has to say next.
9:20 am
♪ predictable. the comfort in knowing where things are headed. because as we live longer... and markets continue to rise and fall... predictable is one thing you need in retirement to help protect what you've earned and ensure it lasts. introducing brighthouse financial. a new company established by metlife to specialize in annuities & life insurance. talk to your advisor about a brighter financial future.
9:21 am
9:22 am
your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $509 on auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance.
9:23 am
>> hey, take a look at oil moving higher after saudi arabia and russia calls for an extension to the production cut deal. this is a nice move. the huge resistance. if it breaks through there, we may be off to the races. the co-founder and ceo of twitter coming to president trump's defense about using twitter. roll tape. >> i believe it's really important to hear directly from our leadership and i believe
9:24 am
it's really important to hold them accountable and i believe it's really important to have these conversations out in the open rather than have them behind closed doors. he's found a tool that's useful for him. charles: all right, liz peek. do you agree? >> look, is that good for twitter or what? the truth is, the biggest thing that happened for twitter over the past year, president trump relies on it to get his messaging out. so they have increased subscribers because of that, but look, that's their big issue is subscriber-based growth in the audience, et cetera. trump is great for twitter, is it great for the administration and the white house, not so clear. charles: and using the word conversation, i'm not sure you're having a conversation with the president per se, but in light of rumors they may not have the daily press conference anymore, twitter might be the ultimate way of hearing from our president. >> you're getting a lot of unfiltered thoughts, musings,
9:25 am
opinions from the president. charles: i appreciate unfiltered. >> and it's having the technology great for president trump, not just for twitter. he's using a fraction of the money to beat a professional politician last year. i don't think that happens without twitter. even now, i know people have the sense there's this cringe-worthy commentary on there and he needs to stop and it's part of the message with him. charles: but from twitter's point of view, stocks are bouncing off an all-time low. and you know, what do they have to do to find a way advertise as potus, and maybe put some ads there, you know. >> that's really, that's the business question for twitter. even after your technology was put at the center of u.s. conversations, you still
9:26 am
haven't figured out. >> how to make money. charles: guys, one more last check of the futures because the opening bell is not far away. we're up 47 points on the dow, 3 points, 4 points on s&p. opening bell just moments away.
9:27 am
9:28 am
9:29 am
9:30 am
>> opening bell, just 15 seconds away. it's a new week. and we're detailing earnings and a couple of tech names, too, including cisco and crm. that's going to be interesting, but the focus today on oil stocks and cyber security names, they look big, up to be big in premarket trading and already we can see as we start to populate those boards, more green on the screen than red. the dow 30, you're looking at it right now. cisco, that's the report this week. general electric lagging behind, a lot of em barments on that company the last week or so. and this after awed rabe and russia called for an extension for production cut deal and the u.s. producers bringing the rigs on-line. but above 50 could be huge. you can see a positive response already by big energy names as we head to the open of the market today. also, there's the cyber
9:31 am
security story, the big story over the weekend. those stocks are doing very well. there's a global hack that began on friday, throughout the weekend. you can see percentage-wise, fireye, breaking key resistance, at $15. the fabulous five tech names all down a little bit today. that's okay. give some shine to the other guys, let them bask in the light for a little bit. by the way, it wouldn't be surprising if those names were up by the end of the session. we'll keep an eye on those names and other retail names, it's a tough time, particularly for brick and mortar names. ashley webster, liz peak, james freeman, scott shellady. i want to start with the green shoots. and liz, green shoots, are you buying into this? >> i am. it's not just the u.s., which i think is encredibly encouraging, we're seeing some momentum, finally, into europe.
9:32 am
a lot of money has gone out the last several weeks into the european stocks and also china, china had a little bit of a flutter here recently, a little bit of a downdraft, but basically china is doing better than we thought a year ago. let's face it, that's important to our corporations and earnings. >> scott, in this earnings season so far, companies with more than half of their sales outside of america, grew by 21%, and it's not a bad deal. >> no, you know what? i think that's the best way you could say it, green shoots. it's got to pull through and the gdp is starting to rally. yes, i've been skeptical and i usually am, but we're seeing little signs pointing in the right direction. you know what? i would like to see a lot more than that. let's have that flow through to gdp and maybe i'll click my heels for that. charles: maybe. james freeman, we're seeing the atlanta fed coming down on gdp. they thought 4.3% and now at 3.6% after the jobs report.
9:33 am
how are things shaking out here? >> normally optimistic. as we've been talking about, earnings are good and rsons to think that things are getting better, but i would say a big negative rig now. cause for concern is lawmakers in washington now talking about that tax cut slipping from fall to winter, maybe into next year. and that would be very negative for growth and i think they've got to focus on getting it done this year, and if for no other reason than their political survival. they've got to get the economy moving faster before they face voters next year. ashley: maybe because it's monday morning, i'll take the other argument. core inflation, bounce back for march much-- the manufacturing number turned negative the first time since the election. there are a lot of things. corporate profits good, but compared to a year ago, how great, what are we comparing? was the bar very low on the earnings, they have been good,
9:34 am
however, keep it in perspective. charles: on the retail sales numbers, they are less than xhekt expected, but i.t., electronic devices looked good for the apples of the world and restaurants, we ate the home less and out more. that's a predictor where the economy is going. let's talk about the global economy, the china news is amazing 1.4 trillion dollars they're going to go throughout mountains, cut down jungles and build rails not just in asia, but africa and europe, that could propel china to the top economy. what do you say, you're chomping at the bit. >> i disagree. i think you'll see a lot of misspent investment, just like you've seen in government investment at home and china and when government here directs investment. some countries in the world end up with better infrastructure that's great, but this is basically a scheme to keep steel and cement factories in
9:35 am
china moving. i don't think this is going to be an economic winner for china. charles: scott? >> well, you know what? to james' first point i'd like to see our economy with a from infrastructure plan. i have to agree with them. it could be smoke and mirrors. i'd like to be involved in some way, but at the end of the day, i agree with james, a lot of smoke and mirrors. charles: a lot of people want to be involved. 28 heads of state. vladimir putin showing up for the conference. we've spent a lot of time underestimating china and counting down their demise for more than a decade, liz. >> again, they're not in a financial position to push this forward as fast as they'd like. don't forget where xi jinping is in this, the head of china, a year to solidify his strength and prowess in the chinese
9:36 am
government. they're not going to let it falter, they're ramping up domestic spending. should the west be concerned about it? yeah, a little bit. but the truth is, there will be a lot of countries with their hands out hoping to get in on this. charles: and ashley, promoting isolationism, and china saying globalism is the way to go. ashley: that's what the chinese need for their economy. if you look at their domestic economic data recently it's not that great. they're going to look at the big scale. put in the infrastructure, you know, it's in there and that's where they see expansion. charles: let's take a look at oil moving higher after saudi arabia and russia, two key players call for an extension of opec's production cut. scott, what do you think? you're watching. >> yeah, you know what? just like the last one, it's another manufactured rally. we need a real reason behind
9:37 am
oil getting higher. i'd like to see it over $50 a barrel, much better for the economy than $40 a barrel. we can't have the manufactured rallies stick. we need a real reason to get behind them rather than manufactured reasons. >> there's so much of an oil glut that supply could never catch up with demand no matter how great the demand it unless you tweak supply. >> unless we artificially boost the price of oil. i've watched it for decades, it never lasts long. what we've seen u.s. producers can bring u.s. production at 50 a barrel, at $45 a barrel. that's the problem, it's not that expensive to ramp up production. back to 20, 30 years, you're looking at the bering sea, but it's not like that. charles: and the wild, wild
9:38 am
west. look at the security hack, 150 countries, affecting the computers using microsoft word. and that's from march, could there be more. ashley: there could be. we've not seen it. u.k. got hit hard with the national health service and elsewhere. the u.k. says they haven't seen another wave. it doesn't mean it's not going to happen especially in asia, but we have yet to see it which is the good news. >> don't you think we're lucky this is just basically people looking for money? i mean, this is the kind of cyber attack, everyone has been expected to affect american institutions, airports, all kinds of things for-- creating security problems. charles: jim, you can join in. are they looking for too little money. security stocks got hammered despite from-- no, no, here is the problem. if you're only can go for $300. why would they bring in a
9:39 am
consultant for 50,000. and the vulnerabilities remain and one day, it happens. fireye is mohot, but a-- >> why aren't they higher when we've had a worldwide security-- >> the hype never lives up to the headlines because corporations won't spend the money and governments won't spend the money, james. >> i think the other reason the company may not boom now, the market tells us it's not that big of a deal over the weekend. a wakeup call, perhaps, but it's basically saying you've got to keep the current version of windows. it's not saying a worldwide national response. we'll see, there may be more news, but-- >> that's like paul revere, saying now that the british are here, i thought i saw a british looking dude-- >> what does that mean. [laughter] >> and i think it's only just
9:40 am
begun. maybe it's too early, charles, we had a symposium last week in chicago about all of these down here invested in technology and now to satisfy regulators they have to try to hack into their own system and show the details of that on a yearly basis. we might be too early here, and this could be the wakeup call and maybe the stocks have legs, but just not right now. charles: yeah, and of course, the fact that the keys to this all, maybe created by the nsa. i know liz wasn't jumping on it. right now we've got to check the big board. we've been trading ten minutes. a pretty good rally here. dow at 21,000 of course, and remains somewhat of a resistance area. the nasdaq had an amazing 2017. and one of the juggernaut tech names looking at an all-time high. the s&p 500, sort of lost, but again chugging along. and pros look at it. 500 names as opposed to the dow
9:41 am
30. the 20th anniversary of amazon's ipo, it's now double of wal-mart. scott, you say for amazon, it's just the beginning. you still believe that? >> yes, on friday, amazon, they're over everybody. retail sales 10% on-line. what happens when the number is 50-50. they're juggernaut, they're a force to be dealt with. charles: you know what i love about them. they bought a couple of names and didn't work out, lost like 4 or 500 million dollars. the phone we had, that with as a bust and they're not afraid. they go out there fridand try ey thing out there. >> it's a great management story. it's not a great intellectual property story the way the other big tech names are. that's why i've been kind of
9:42 am
skeptical although skeptics on amazon have been getting punished for 20 years, you pointed out. i'm generally optimistic about tech, but look the a the silicon valley companies, building new palates for corporate headquarters. charles: that may be worse than the time cover. and media erupting into a frenzy over the new miss usa. why? because of her comments on health care and feminism. wait until you hear what she had to say. and texas southern university campus, the commencement speech, too much opposition a week after betsy devos was booed over here commencement speech. what's happened to free speech?
9:43 am
9:44 am
>> all right. let's check on the big board. the dow holding those early gains. up 59 points, right in the shadow of 21,000.
9:45 am
>> looking pretty good, a nice way to start off a monday morning. netflix bringing back the popular sit com "arrested development". nicole petallides has the details. nicole: a lot of celebrity names we know, including jayson bateman, will arnett, we know that netflix in the original programming had been killing it, bringing in the revenues and helping the stock, which is up about 150% since they began original programming in 2013. that being said, "an i -- arrested development", jayson bateman says he's signed on to star in more episode. that only helps netflix, netflix at a new high today along with the nasdaq. charles. charles: nicole, thank you very, very much. our next story, texas southern university canceling senator
9:46 am
john cornyn's commencement speech after some students complained. joining us bill bennett, former secretary of education. is this another example of the left shutting down free speech on college campuses? >> sure it is. it's been going to be for a while. and this happened to be in the '80s when i was secretary of education, i had people turn their back on me, i was cancelled from some universities, like the very liberal university of wyoming, believe it or not. so, yeah, this has been going on for some time and it's a shame because these students ought to hear another point of view. if the college's views that are students are in need of education, how about you get them outside of the ideological box that they're in? john cornyn, i mean, a moderator supreme court justice in texas, could be very enlightening speaker. betsy devos has a lot to say,
9:47 am
the students come and protest and that's that. it's a shame. and i think, charles, in the end we're going to be left with three commencement speakers in america, whoopee goldberg, senator sanders and another and do all the commencement addresses. charles: maybe via skype. and a back story, i didn't see anybody talk about at all. on may 5th, as the president was signing the spending omnibus, he talked about historically black colleges and their federal funding not being constitutional, and there was a lot of fear and anger and i told you sos. the white house released the communique saying that the president had unwavering support for hbcu's and reiterating that he signed an executive order pledging to strengthen the capacity of hbcu's.
9:48 am
is this one of those things where the right cannot get a break no matter what, and anything misconstrued is leaked and seized upon and becomes the narrative no matter what? >> no matter what, you're exactly right. a couple of back stories here, i tell you one from my personal experience, you probably don't know this, but i applied to be the president of fisk university, which is a historically black college and university. and i thought it would be good for the university, and bring some fund to the university and i never made it through the first round. i'm know the craziest candidate, no way, we would have taken the job, too, my wife and i, we were excited about it. and when the president of the college where betsy went, and they called for his resignation, that is extraordinary. he invites the secretary of education to speak, nothing,
9:49 am
but good for the university and naacp guy in florida calls for his resignation. this is the guy during the commencement when the booing was going on and grabbed the microphone and said if you keep this up, we will mail your diplomas, more courage than at middlebury college. charles: it is entights like the naacp and others that need to stoke fear and anger to justify their existence because they refuse to morph into a modern organization that reflects today's society rather than the 1950's. >> you're right. and is the fear and anger and animosity good for the students that you're representing? or is it better or worse to have a relationship with john cornyn. if he had given that address, a year later down the road,
9:50 am
students from texas southern go to washington and visit with cornyn and recall with delight his visit there? who is it for if not for the students, their long-run interest would be to listen to him. charles: a personal note. when my son was in high school, i had him read passages out of the book of men. he learned a lot and i learned more. thank you for coming on this morning. >> you're very welcome and i thank you for that. wouldn't you know? >> see you soon. let's do a quick market scan. the dow 30 stocks right now, a lot of green on the screen there, guys, looking pretty good. microsoft sort of pulling up the rear. what's fascinating cisco reports this week the leading gainer. wall street must think they're going to post a strong number. they're called mercy ships, floating hospitals that provide
9:51 am
life saving care to third world countries. a doctor who says the ships provide hope and healing to the world forgotten.
9:52 am
9:53 am
9:54 am
>> it's like the modern day version or the stock equivalent of the beatles.
9:55 am
amazon and netflix and any all time highs in the session. we've got something different for you. mercy ships, they bring volunteer medical teams and operating rooms to people who otherwise would go without care. from mercy ships since 2008, the doctor, tell us about mercy ships and exactly what you do. >> so i've been a surgeon operating with mercy ships since 2008. i do head and neck cancer, do head and neck tumors or anything above your collar bone is my specialty. charles: where do the ships primarily operate? >> the ships have been in subsaharan africa since 1991, primarily in west africa. charles: and i mean, obviously we know that the medical care there is atrocious and how is it funded? how do you like receive the patients? if you get someone off-- is it complicated? and how are you trying to grow
9:56 am
it? >> so the ship screens its patients, actually it starts, there are people in the country, about six months before we get to the country. starting to sort of spread the word of what we do. we screen the patients the minute we dock in country. the ship is funded by a number of different ways. donations from individuals, also in-kind donations from corporations. the whole sort of field of trying to get surgery to these lower and middle income countries, has a whole bunch of funding needs and in-kind needs and the ships are filling one of those needs. charles: doctor, we've had a lot of breaking news, but we appreciate you coming in. a great thing you you're doing. >> thank you. charles: thank you very much. we have some news also on the miss usa contest. now being attacked on social media over her-- the winner is being attacked for her comments on health care and feminism because those comments may have been too
9:57 am
conservative. the second hour of varney is next. quity fund has exposure to energy infrastructure mlps? think again. it's time to shake up your lineup. the alerian mlp etf can diversify your equity portfolio and add potential income. bring amlp into the game. before investing, consider the fund's investment objectives, risks, charges, and expenses. read the prospectus carefully at hidden in every swing, every chip, and every putt, is data that can make the difference between winning and losing. the microsoft cloud helps the pga tour turn countless points of data into insights that transform their business and will enhance the game for players and fans. the microsoft cloud turns information into insight.
9:58 am
9:59 am
10:00 am
>> i'm charles payne, stuart is off until thursday. here is what we have for you this hour. outrage over the answers the newly crowned miss usa gave. she said she's not a feminist and health care is not a right. a six-year-old boy injured in a car accident, the driver allegedly drunk had been deported is15 times. the boy's father joins us in minutes. and the candidate compelled to run after losing his tech job to an overseas worker that he was forced to train. we're going to cover it all for you, "varney & company," hour two, begins right now. ♪ >> first we begin with your money and it's looking pretty good.
10:01 am
your 401(k), don't peek at it. we've got the it. the dow in the shadow of 21,000. the price of crowd up, and a monumental breakout point and energy stocks a big, big gain this morning. record high for the nasdaq. you've heard it before and you'll hear it again and the same stories for the juggernaut. and amazon reaching a new record high. on the other side of that. j.c. penney stores have touched a record low. $4.17. now, to cyber security stocks, a lot of them gaining today after a worldwide cyber attack continues and the numbers are staggering. 150 countries, 200,000 people, and tracy is with us, with more. tracy, it's mind-boggling. this seems like it's just one of the most massive attacks i've heard of it. >> it really is and it looks
10:02 am
like it will continue to grow. now, you saw on that map. france, usa, brazil, spain, turkey, the list of countries just keeps growing. now, as many people are headed towards today. even more people could be affected. there could be another wave of cyber attacks. and this time maybe not even a kill switch to stop it and the ransomware appears to exploit the vulnerability within microsoft windows reportedly reported by the nsa and there vulnerability stolen from the nsa has affected customers around the world repeatedly in the hands of governments, leaked into the public domain and caused widespread damage. >> it's $300 to $600 in bit
10:03 am
coins. charles: and some kid living with his parents discovered the kill switch? >> he was tooling around the internet and discovered the kill switch to stop the attacks. >> amazing. charles: who knows what would have happened had he not found that. >> like discovering penicillin in the fridge by mistake. charles: we're going to take off three days. >> we'll be back on thursday. charles: varney will be back just in time for stuart. thanks a lot, tracy. check this out, china proposing a 1.4 trillion dollar infrastructure plan, building roads, rails, africa and asia, all of these places as the trump administration is kicking off their infrastructure plan. and former deputy director for the trump campaign, david, we're struggling in this country to figure out how to patch up roads. in the meantime, china is cutting through jungles in sir
10:04 am
larena to build this road in sri lanka. they think long-term. in this country we have to do budgets by the week, it seems, but look, president trump got elect elected, as part of his campaign promise to rebuild our crumbling infrastructure. barack obama ignored it for eight years, it was ignored for the eight or ten years before that. so, we're 20 years behind where we need to be. and i think that president trump has a laser-like focus when it comes to infrastructure and planning. look, we need new roads, we need new bridges, we need to have our rail system rebuilt. we need to have air traffic control system that's built for the future and i think all of those things, and many more, are in president trump's plans. >> david, of course, how do you pay for it? particularly if it's more than
10:05 am
a trillion dollars? still a lot of talk about public-private partnership. how would that work? >> those are great questions and look, we're early on in what that's going to look like, but i think the public-private partnership is something that the president really looks at as a very effective tool to try to finance these things without even looking at any type of taxes. we tax the american people enough, the president and in his tax reform package wants to have tax decreases not tax increases which is what the democrats would like. charles: i think i read that saudi arabia wants to pony in. and a lot of people wants to be in the revival of our roads and bridges. it's an economic revival. >> it helps everybody. charles: i want to ask you about this. before i get to that, the shovel-ready part of this and the regulatory part of this,
10:06 am
this is one of the things that tripped up president obama. you know, you could be ambitious all you want, but if these things aren't fixed, it doesn't matter, does it? >> if what things aren't fixed? >> the regulatory hurdles and the so-called shovel-ready situation, we were promised a trillion dollar for shovel ready and we all remember that infamous moment when the ceo of ge and president obama chuckled over the fact they weren't. >> president trump is going to be honest with what he's found. he came here as a change agent to kick down a few doors and the-- he understands the broken status quo here in washington is not working, which is why he put into the epa, scott pruett and he has mick mulvaney in the budget office, people who understand how the system is failing the american people, and they're going to stop at
10:07 am
nothing to make sure that these things are done. and i think that you're exactly on point that previous administrations have really kind of let it slide when these things happened. scott pruett is there to really defend the epa, to make it much more business friendly, environment across the country. for people, small, medium and large businesses to hire people again. charles: yeah, i read an article on american banker and a lot of excitement in that community about business loans, in part, once president trump gets rid of some of the nagging regulations that shouldn't have been there in the first place. thank you, as usual. >> thanks for having me. charles: and cara mccall la from washington d.c. she was crowned last night and the left went apoplectic because she had views on feminism and health care. >> i'm definitely going to say it's a privilege. i think firsthand for one to
10:08 am
have health care you need to have jobs so therefore we need to continue to cultivate this environment we're given opportunities of health care and jobs to all the americans citizens worldwide. charles: joining us now tammy bruce, fox news contribute. the left is going nuts over this. >> this is a young woman who exemplifies the progress we've made, a degree in chemistry from south carolina university. clearly has a mind of her own. she's thinking out of the box to a degree. i don't like the zero sum dynamic if it's a right or a privilege, it's something like everything we have, something we earn, this is how life works, but she is a very impressive young woman and i like the fact that other liberals who also would be impressed with her when it comes to accomplishment and potential can see how others on the far left want to condemn that, but we can all disagree on the issues, absolutely. how we approach them, but the nature of condemning someone personally because they disagree with you, is what i
10:09 am
think a lot of liberals are rejecting, independents reject it, but it speaks to her answers. her comfort in owning her own self, regardless of positions, she was there at that pageant, great education, great outlook, but she owned where she stood on the issues and was fabulous and i'm very excited. charles: she seemed to reject feminism. >> yes. charles: for equalism. what do you make of that. you were big in the feminism movement. >> i think it's a shame like with everything that the left co-ops in they ruin it in a lot of ways. i believe the right women will save the world. women have different points of view and people of color have different life experiences. i reject the notion that we have to get past race or gender. people of color their life experiences are different. women's life experiences are different. gay people's lives are different. we bring that variety into how we experience the world into
10:10 am
this great suit that we've become, the great nation. and i think that feminism is important, but what people are rejecting is the left, it's the leftist hijacking of important issues and we have to remember that. charles: i think also the left unwillingness to listen as they blame everyone else for not listening, at least share the conversation and then we have waymo, the ride sharing service and the ride sharing services lyft, teaming up with self-driving cars. seems like impressive. ashley: it's a warning shot to uber because lyft, waymo, firstly, the driverless car division of google, the parent parental-- parent, alphabet. they've been working on this since 2009. 3 million miles on public streets here. they're going to do a deal with lyft, lyft will help waymo epanned through a taxi service. it's interesting. waymo is already allowing people, select people to order
10:11 am
these driverless cars in the phoenix area and actually use them. we are this close to-- talked about it so long, the testing stages, blah, blah, blah, we are this close to reality. charles: what happens to people in the so-called gig economy, getting a little side hustle on or-- >> that's the trouble with technology, unfortunately, there's a human component that gets lost in this. a robot can do the job of a hundred people. a driverless car takes the job of an uber driver. charles: the gig economy would be a slight footnote in the history of our economy. ashley: probably, thanks to technology. charles: thank you very much. and illegal immigrant slamming his truck into a family on their way home from disneyland. severely injuring a six-year-old child. an illegal immigrant had been deported 15 times. the boy's father is going to be with us and tell us about the tragic story next. and latest scandal on wells fargo gets bigger. even author unauthorized
10:12 am
accounts were opened. we've got the story as the second hour of "varney & company" continues. ♪ [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock.
10:13 am
10:14 am
10:15 am
>> let's look at the big board. the dow is doing pretty good, up 73 points and near the high of the session and of course, nasdaq continues to rock and roll, it's at all-time highs because the main names there, amazon, apple and netflix begin to go juggernauts and they hit all-time highs. on the other side a j.c. penney, those shares touching a record low. $4.17 and right now, 4.31. the conservatives will push to overhaul the welfare system during the next budget battle. ashley. ashley: these conservative senate members, republicans, they would like to see fast--
10:16 am
considering faster and deeper cuts to medicaid that would essentially drop many more people from coverage. they want more flexibility for the states. less reliance on federal money. i'm already seeing some of this already, wisconsin and maine, just looking at this, they're looking at new provisions that include work requirements for medicaid, people on medicaid, work requirements, drug testing and time limits. so, this would-- if this ever go the -- got threw and senate conservatives got their way, it would be the biggest change in years. and they feel something has to be done so money is just not thrown at the problem. >> with obamacare moved into medicaid with so few doctors providing services, you have a bottle neck, you think you have coverage, but you can't access health care, so, everybody on medicaid, effectively is losing, the standards are
10:17 am
changed who would be accepted, and making it impossible for anyone, really, to get through that bottle neck to get services so they've got to work on a way to change that as opposed to, eliminating services for people. on the contrary, that will open up the gate for people to finally access the system. charles: trying it get it back in the space, maybe a greater ability-- >> 73 million americans. >> that's where you're going to be looking at the local level, states, towns, cities, what's going on in your community and really being involved in people being able to access health care in any fashion. charles: abuse of the systems makes real legitimate recipients there less often and social security disability the same kind of thing. an illegal alien driving under the influence and deported 15 times slams his pickup truck into a family driving home from
10:18 am
disneyland. the family's six-year-old son was severely injured. joining us the father of this young boy, benjamin, thank you for joining us this morning. >> thanks for having me. >> we know your son has been severely injured and the last i read had two surgeries. how-- can you give us an update how things are going so far right now? >> sure, he's recovering slowly. he had some labs drawn this morning, isn't a fun way to wake up. he's still on iv therapy for antibiotics, treating the bacteria in his skull cavity. hopefully he'll be discharged later on this weekend, and then just long road of recovery ahead of him, just getting back to normal life and seeing what long-term effects this may have. charles: the entire country is going to be praying for you and your family and of course for your son. i appreciate you coming on now because you've been thrust into
10:19 am
one of the biggest debates in this country, of course, not by choice, where someone who was deported 15 times, who came into this country illegally, the passenger by the way, his passenger was in the country illegally 15 times. and what is your view on sanctuary cities. >> and had a chance to step back and kind of look into it and do some research. the sanctuary state law, it just kind of bothers my mind how people want to pass that law and thinks they're going to keep generations or current citizens safe at this point. the fact that it's only-- they updated the law, i believe, this march is california to say that the agents may talk to ice, but to me it should be mandatory communication between the two agents, not just may if the guy
10:20 am
is violent. if you're caught doing something criminal and an illegal background to me it should be a mandatory communication with the agencies, there shouldn't be an option. charles: before this all happened, were you apolitical on this? because i think what's happening is a lot of americans aren't necessarily paying attention and we don't want to get to the point where a tragedy has to show up to everyone's doorstep before some serious action. i know that california is the going to be the last state to change if never do. >> i just think for me there's a narrative going out there, they're going to split up families and everything else, that's the last thing me and my family want. we respect people who want to work hard and be a part of our society, but when i realize your first time coming across is a misdemeanor. second time can be a felony, but there's no mandatory statutes there, there's no-- and then making the sanctuary thing, it's an option if the police want to communicate with
10:21 am
agents for immigration. it seems like, i don't think the public really know there's nothing set up to actually protect us, starting to seem it's more like protecting noncitizens than the people already here as citizens. charles: to your point it's that way in too many places. we appreciate the brave struggle you're going through and thank you for taking time to share your story with us. >> thank you. charles: an i.t. worker from connecticut force today train his replacement who had an h1b visa. now while he's trying to get justice by running for congress. he is going to join us later this hour. ♪ break through your allergies.
10:22 am
try new flonase sensimist allergy relief instead of allergy pills. it delivers a gentle mist experience to help block six key inflammatory substances. most allergy pills only block one. new flonase sensimist changes everything.
10:23 am
your insurance on time. tap one little bumper,
10:24 am
and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $509 on auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance.
10:25 am
>> breaking news on the search for a new fbi director. ashley, what is the white house saying about merrick garland. ashley: there's growing, i guess, belief he would be a good person to nominate along with others, not necessarily to pick him, but certainly should be in the mix. of course, merrick garland was the person put forward by former president obama for the supreme court, never got a hearing, no vote on him, but just last week i know that senator mike lee, orrin hatch of utah urging the white house to take garland's name and put it in the mix. they feel he's worthwhile. charles: mitch mcconnell as well. >> all of these individuals were virulently donald trump, there's an example why donald trump is president. charles: you think it's a setup. >> both parties have an interest in status quo. there's a lot of talent, the president is looking at for the
10:26 am
fbi, talent from across the spectrum. this is what you can tell what the democrats are doing, this is about the impact on the american people. if donald trump is in charge, if he is able to shape a government that's a reflection of his agenda, to revert to an obama choice in order to get something done will just put more fuel on the fire for the democrats that this kind of obstruction works, that the swamp, the bureaucracy wins, if the president is-- can't choose his own person for the fbi. there's a way around this. he can choose of course an interim director just by appointment and if they want to put a delay on the fbi official director vote, then at least donald trump will have his choice, but it does need to be a good person, obviously, who can handle that job. charles: real quick, ashley, do you think there should be a certain amount of democrat votes though? it's going to be bipartisan-- >> it seems a move to appease those on the left of the aisle because a pick for garland, but
10:27 am
to tammy's point. it's a kind of a swamp getting what it wants. hasn't been picked, the name is in the mix. charles: "varney & company" will be right back. listen up, heart disease.) you too, unnecessary er visits. and hey, unmanaged depression, don't get too comfortable. we're talking to you, cost inefficiencies and data without insights. and fragmented care- stop getting in the way of patient recovery and pay attention. every single one of you is on our list. for those who won't rest until the world is healthier, neither will we. optum. how well gets done. just like the people every business is different. but every one of those businesses will need legal help as they age and grow. whether it be with customer contracts, agreements to lease a space or protecting your work. legalzoom's network of attorneys can help you,
10:28 am
every step of the way. so you can focus on what you do and we'll handle the legal stuff that comes up along the way. legalzoom. legal help is here.
10:29 am
. . .
10:30 am
♪ ♪ ♪ charles: all right, pretty young thing. that market rally looking pretty. being fueled by the tech names. you can see in the board it's mixed here. oil doing well also. nice start to monday morning and now this. treasury secretary steve mnuchin discusses the president's tax reform plan at the g-7 summit, take a listen. >> i think as i've always talked about before on the business
10:31 am
side there are many reports that as much as 70% of the tax burden that companies pay are passed onto workers. so we are focused on creating middle-income tax cut, to grow the income and make our business efficient and competitive. charles: tony joins now. tony, thanks for joining us. >> good to see you, charles. charles: some of the stuff seemed like low-hanging fruit in the campaign and upon the inauguration and everyone was excited that, you know, infrastructure, little hanging fruit, tax reform, low hanging fruit, what's been the trouble, what's the problem with getting things through? >> we are confident that we can get tax reform done and this year. speaker ryan just yesterday suggested the same thing. we obviously don't want to put any specific time frame other than getting it done in 2017 because there's tremendous consensus. this is one of the things that requires a lot more reporting
10:32 am
that has been done, the house, the senate, the administration, work together collaboratively on what's going to ultimate be part of the legislation. it's progrowth. it focuses on a middle income tax code, every american can certainly agree on and makes business competitive again so we can have smaller business create american jobs. charles: when the house is trying to get through the health care bill was don't let the perfect be enemy of the good. is the administration letting the grandiose enemy of the good, the idea that this has to be the biggest tax reform package ever. is that hampering perhaps the idea that you can go about this like ronald reagan did but get parts of it done and get it done ultimately? >> we have great consensus on a lot of things, charles. the big can get done because it's needed by the economy. we have very little sustained economic growth since the
10:33 am
crisis. bad news for everybody, bad news for the government. revenue gets a big hit when the economy is not growing. it doesn't allow us to deal with longer-term issues. that's why we can focused on it. the world is counting on the united states, economic growth was a big part of the conversation of the g7, leaders like finance minister have indicated america needs to take the role on economic issues and we are only going get there if we begin to enact domestic policies on regulatory relief, tax reform and infrastructure to regulate and sustain economic growth beyond what we have been seeing for the last eight year. charles: the consensus is how to get there, what is -- is it too early what may not happen who we thought might happen, maybe upper-income tax levels staying relatively high or some
10:34 am
deductions maybe being eliminated. in other words, certain economic threshold that they would not get the tax benefits they were getting coming into this? >> it's a good point. idea on the individual side is middle- income tax. charles: that's the focus? >> that's the focus. the two deduction that is we have taken off the table with charitable and mortgage interest. of course, there's process back and forth. charles: president trump is speaking about law enforcement. >> from the year 2015. this must end and that's why in my first action having to do with this subject, the department of justice i am asking to develop a strategy to better prevent and prosecute crimes of violence against our federal state, tribal and local
10:35 am
law enforcement officers. they've had it with what's going on. we are going to get it taken care of and taken care of quickly. i want to thank you for being here today. it's a great honor to have you. great honor to have you. some of you have suffered greatly and we are going to take care of it, okay. we are going to take care of it. >> charles: executive order there. americans that keep us safe. it's about time that we help the law enforcement community. very important signing. i want to hear your thoughts on that? >> absolutely. the president has been a real leader when it comes to protection of the law enforcement agency, he ran a campaign and largely won. he squares sidely.
10:36 am
charles: is it about putting on punishment particularly those who harm law enforcement? >> executive orders go about bringing together and figure out best practice that is help to ultimately achieve the goals. a perfect example, we had a major cybersecurity issue around world. this was a big topic at the g7. president trump has signed an executive order on cybersecurity. it's been a top priority of his administration. secretary mnuchin took that message to counterparts around the world. part of that is coordination with international coalition partners private sector, our intraagency partners to make sure we are following the best practices to prevent these types of attacks. charles: check this out. president trump says it may be a
10:37 am
good idea to end press briefings. listen to this. >> but are you moving so quickly that your communications department cannot keep up with you? >> yes, that's true. >> what do we do about that? >> we don't have press conferences and we -- >> you don't mean that? >> just don't have them unless i ve themvewo weeks and i do it myself. we don't have them. [laughter] charles: joining us howard kurtz, howard, what are your thoughts on that? this is an administration that says it can't get a fair shake from the mainstream media and these things have become circuses and side shows and more than than that it's hard to articulate in such a fast moving white house. howie: i'm a little skeptical if president trump will actually pull the plug. he's had a frustrating week and he's kind of venting. when he says his press staff
10:38 am
can't keep up with me, part of that is on the administration because, for example, when he did the late tuesday sudden announcement of firing of james comey, sean spicer and his press shop had an hour's notice, they could have taken more time. i understand the white house's frustration but i don't think that ending the briefings is the answer to that. charles: the briefings have not always existed so at some point the -- do you consider them like many in the mainstream media to be now part of our fabric, in other words, part of a checks and balance system that the american public relies on? howie: yeah from some extent. the reporters are all unfair, quick them out, i don't think they would have taken the same approach if barack obama decided not to have briefings. we do ask questions, only shot to get to senior administration
10:39 am
official on behalf of the public but the briefings also serve a purpose, whether sean spicer or sarah huckabee sanders to get message to get it out. they get pretty good ratings, higher than average cable news show in the afternoon and so that is a chance for the trump message to get out and i think that that's sometimes overlooked. charles: i have to ask you about kellyanne conway and responded to attacks from the left and the media. your thoughts? howie: well, one of the points that kellyanne conway made with me that everybody in the prez are trying to get something to go viral. there was a lot of posturing in both interviews and in the press briefings. she made the point also that while we are all covering who in the white house is going to get fired, what she calls palace intrigue as well as tense relations with the media, the president is doing things like the beef import deal with china and i agree, but, you know n this particular week you would have to say the president kind of stepped on part of the story
10:40 am
not just by the firing of comey which has a legal right to do but raising the possibility that he might have tapes, by raising the possibility he might end briefings, that all fills the -- sucks up all the oxygen so other things do get overshadowed. charles: appreciate it. it worker in connecticut fired after he was supposed to train foreign it worker. we are going to play you this sound bite. more varney next. the moment turns romantic? cialis for daily use treats ed and the urinary symptoms of bph. tell your doctor about your medicines, and ask if your heart is healthy enough for sex.
10:41 am
do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis.
10:42 am
♪ ♪ ♪ ashley: we spoke with dr. shrine, she's volunteering on mercy ships since 2008 and here is what he had to say, roll tape. >> there are people in the country six months before we get to the country starting to sort of spread the word of the surgeries that we do. we screen the patients the minute we -- we dock in a country. the ship is fund by a number of different ways, donations from individuals and donations from corporations, the whole sort of field of trying to get surgery to these lower and middle-income
10:43 am
countries has a whole bunch of funding needs and in-kind needs and ship is sort of filling one of those needs whoa, this thing is crazy. i just had to push one button to join. it's like i'm in the office with you, even though i'm here. it's almost like the virtual reality of business communications. no, it's reality. intuitive one touch video conferencing is a reality. and now it's included at no additional cost with vonage business. call now and see why 3,000 companies a month are switching to vonage. business grade. people friendly.
10:44 am
charles: breaking news.
10:45 am
a judge issuing an injunction. ashley: this case was brought by alphabet self-driving car unit. essentially what happened an engineer went to uber and he says you used a technology that you discovered and using with yawmo and you're using it for uber's benefit. any materials downloaded by the former waymo engineer should return, this is a win for alphabet. charles: looks like another loss for uber. thanks a lot. h1b visa recipient is run running. tell us a little bit about your background, how does all went down and you knew at the time you were training this person that they were going to take
10:46 am
your job. >> well, from the very beginning we did not know that we would be training our replacements. we had been called to a town hall meeting and this was in october of 2013, the cio came down from boston said that she would hold a town hall meeting to discuss the future of it at our particular company which at the time was known as northeast utilities. we got all into the room and she proceeded to tell us, well, folks, what we are going to do is we are going to outsource it infrastructure and it development and we have chosen two companies, infosis and tata and the reason that we are doing this is because global workers can adjust to change a lot faster than the american worker. charles: right. >> when you take a look at this, isn't the american worker also a
10:47 am
global worker, don't we have some input into what we say or what gets said in regards to a global economy? after all we are a very large market. charles: two weeks i did a lot of research in this area. i took all of the indian companies that were in the top 20 and i took all of the american companies, the indian companies on average pay 80,000 or less and american companies pay 120,000. this to me seems like a bold-face abuse of a system to bring in low-cost workers and in your case forced you to actually train them, talk about adding insult to injury. >> yes, the company that i was working at that particular time northeast utility, when they brought in the foreign workers on the h1-b visas, we were told that we would have to train replacements. now, they basically didn't call
10:48 am
training your replacements, they called you would have to do knowledge transfer, so as they were bringing over 220 employees, we were told that we would do knowledge transfer to these individuals coming over here. as we found out and as the company, our company at the time found out, the people coming over here from southeast asia did not have the job skills to actually take our positions. charles: wow. >> so they sweeten the pot to us individuals who were still there that if we stayed on an additional ten weeks, we would get an additional 10 weeks of severance pay. charles: you're running as a republican? >> yes, i am. charles: when is the election? >> november 2018. charles: we would love to bring you back and talk about the
10:49 am
subject. >> i would love that. charles: it might have been a program that had initially the right intentions but we all know it's been abused and people like you have been a victim. thank you very much. >> thank you. charles: we will talk to you again soon. >> thank you very much. charles: i want to turn to more business news. more trouble for wells fargo as a new report says giant may have opened 3.5 million unauthozed accounts, a lot more than originally estimated. ashley: one and a half million more. keep in mind this claim is being made by the lawyers who are negotiating a class action settlement with the banks, so it's in the their interests that the numbers go up and up. the bogus account creating went back to 2002, we are talking 15 years. former employees have claimed that wells fargo in this program -- they were trying to reach the quotas. because they couldn't, they
10:50 am
would invent accounts with real names without permission. they targeted native americans, college students and illegal immigrants, created checking accounts, deposit accounts, credit card accounts, whatever it took to hit the quotas. wells fargo for their point says, wait a minute, you're going way beyond what's real here but of course the laws say -- charles: the number of its 1 to 3 million. the real issue that management probably knew about this and encouraged this. isn't that the crux of the issue? >> ashley: it is, they were under tremendous pressure to make quotas. the question is how far did it go in management that turned the blind eye to it. charles: ashley, thanks a lot. controversy around newly crowned usa, she won't call herself a feminist.
10:51 am
stuart varney&company will be right (vo) when you wake up with miracle-ear... ...your mornings can come to life with sound. back. you hear the laugh that made you fall in love with her in the first place. and, at miracle-ear, we take the time to get to know you, grandpa! so we can ensure you hear what matters most in your world. call, click or come in today to learn how to start your better days. miracle-ear...hear a better day.
10:52 am
there's nothing more important than your health. so if you're on medicare or will be soon, you may want more than parts a and b here's why. medicare only covers about 80% of your part b medical expenses.
10:53 am
the rest is up to you. you might want to consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like any medicare supplement insurance plan, these help pick up some of what medicare doesn't pay. and, these plans let you choose any doctor or hospital that accepts medicare patients. you could stay with the doctor or specialist you trust... or go with someone new. you're not stuck in a network... because there aren't any. so don't wait. call now to request your free decision guide and find the aarp medicare supplement plan that works for you. there's a range to choose from, depending on your needs and your budget. rates are competitive. and they're the only plans of their kind endorsed by aarp. like any of these types of plans,
10:54 am
they let you apply whenever you want. there's no enrollment window... no waiting to apply. so call now. remember, medicare supplement plans help cover some of what medicare doesn't pay. you'll be able to choose any doctor or hospital that accepts medicare patients. whether you're on medicare now or turning 65 soon, it's a good time to get your ducks in a row. duck: quack! call to request your free decision guide now. because the time to think about tomorrow is today. stuart: i have to ask you, you're a black guy and relative conservative, do you catch hell for it because who you say and who you are?
10:55 am
>> yeah, well, first of all, stuart, i'm not black i'm chocolate and i embrace my inner chocolateness. stuart: what am i chalk? >> i love everything about being a black american and i connect very well with my community. charles: that was lawrence jones and stuart from friday. ashley: i didn't know quite to make of that. he said i'm not black i'm chocolate. who doesn't love chocolate? interesting conversation. charles: it is. i understood what he was saying when stuart asked him about the hell part there. it can be a little tough. there's a nonprofit organization that helps underprivileged kids mostly understand final literacy and they rejected me from the board because i was associated with fox, black conservative. ashley: don't you think that's
10:56 am
despicable? >> that hurt me a lot because i could have helped those kids. ashley: yes. [laughter] charles: a lot of ways to keep it real. [laughter] charles: that just meants stiff and rigged and firm in conviction and makes a lot of noise if you rub it the wrong way. that's all he meant by that. ashley: he leaves us mark. charles: he definitely leaves us mark. thanks a lot. thanks, ashley. break through your allergies.
10:57 am
try new flonase sensimist allergy relief instead of allergy pills. it delivers a gentle mist experience to help block six key inflammatory substances. most allergy pills only block one. new flonase sensimist changes everything.
10:58 am
10:59 am
charles: 11:00 a.m. in the east coast and 8:00 a.m. california time. of course, this hour we will be covering big stories today including the unprecedented cyber-attack to believe the
11:00 am
biggest online extortion cyber-attack ever recorded and in china $1.4 trillion plan to build roads and rails on three continents this as the trump administration moves forward on own 1 trillion-dollar america first plan. here is what's new this hour. new york lawmakers considering legislation that would allow police to use a breathalyzer for texting, to see if drivers were using their phone right before any type of accident involving injuries, this could turn into a big privacy issue and new york state only the state working on this. judge andrew napolitano will be later in the hour. controversy surrounding newly-crowned miss usa. she says health care is a privilege and she won't call herself a feminist. this hour we will be joined by dana lash, she says feminism is a danger to men and to women.
11:01 am
>> by demonizing in this human species by attacking our counterparts, we are actually doing ourselves a disservice. charles: third hour of varney and company starts right now. wall street is on high alert because of those massive ransomware attacks, experts are warnings that banks and financial institutions could be the next target. i want to bring in paul conway. paul, you were chief of staff at the department of homeland security, how big of a threat is this? >> well, actually, one of several chiefs. it's a huge threat and we need to take a look at it. in terms of the process when this came out on friday you saw
11:02 am
that immediately the president took action in national security council. you have tom who is veteran and the department of homeland security under president bush with also general kelly and you're taking a look across sector and what got reported was health care sector, former director of national intelligence clapper said you have to wait until monday and a couple of days after initial reports to see what the impact is. i think the impact is going to be significant not just to providers in the health care field but also to other financial institutions. charles: do you get a sense, this is what i try to articulate earlier in the show because in this particular case the ransom ware, they were only asking 3 to $600 which is a whole lot less and to me as long as they keep paying out, and they are particularly hospitals, they are paying out this money, we will never see a true honest move to
11:03 am
keep our information safe, to keep our information away from these guys and that sets up for the worst case scenario because there's going to be something a lot worse than what we saw this weekend? >> i tell you what, there's the short-term issue and the longer-term issue. >> a hospital paid over $17,000 for ransomware in bit coin to get software back. when you see that threshold. low dollar threshold, the first question you have to ask is what's being done here, a test of a much larger type of attack where you can get a threshold amount in there where people say, type, i will just go ahead and pay it and they won't take it seriously, but each time you pay that you're encouraging more activity. charles: right. >> that's why you have to be diligent. those in the marketplace and government backing them have taken time and the investment in
11:04 am
the systems to protect them. charles: a lot of corporations want to do it. whatever it is, instead investors are focusing on all the positive, by the way, there's a lot of positive signals in this economy specially in the job market, paul. >> yeah, i tell you what, if you take a look at construction and manufacturing and you put that in the context of where the president said he wants to go on infrastructure investment, i think you seen very positive signals actually before executive action taking place. just the sense coming off of the campaign that there's going to be a significant change in taxes, significant change in terms of permitting process environmental review, i think the optimism is building and thus people will start building their workforces in the talent pipeline. i think it's fundamentally important to get some successes on the score board here for the president and for the executive branch so that when they're
11:05 am
dealing with the congress you have a more interesting congress who try to get to the outcome of more infrastructure. charles: one thick we are learning, 75% beats, 13 and a half above, you know, year over year, this is the best quarter since going back to, i think, 2011. i have a sense that success not only begets success but the idea that ultimately therumpnda will gethrough isnough for now to drive the beginnings of investment and sort of enthussm that goes fro the so-called soft data to hard data. >> u fill you agree with you. if you look at the past eight years, let's be philosophical. when the economy was down and you had a government, executive branch under president obama that was trying heavily to regulate things through epa, there was no sense of optimism
11:06 am
or breaking through if you were an investor or in the private sector trying to develop more manufacturing jobs and things like that. now, you have clearly a philosophical distinction on the table,i take federal government and deregulating and clearing out the brush. when people see that, they have greater encouragement to take the risks. here is where the rub is, you have to get the policy in place and you have to drive your team if you're the president and you have to drive that cob net to make that happen. you're already starting to see that progress in areas like epa, secretary of transportation chao and things like that. charles: china $1.4 trillion, that's with a t, build roads, establish rail throughout asia, africa and europe, reverse of marco polo thing, the new silk road. paul, i think we keep underestimating china and also finds it -- i find it particularly interesting at this time where a lot of americans
11:07 am
are rejecting globalism where so-called communist china is embracing it. can this be the beginning of being the world's top economy? >> i tell you what, i think president xi is a dedicated communist, there's no doubt about that, he's harboring private sector and specially other people's capital to advance his national mission and so if people become wealthy by it or people spread commerce, that's fine, goo politically they have a definitive political objective, a very definitive military objective and their economic objective is to surpass the united states in the west. understanding that, they're building out their strategy, how transparent will it be and will people trust it in terms of national sovereignty when the chinese start developing in places like this remains a question and i think that the u.s. needs to get a more competitive standing and people need to understand that what the president committed to and what resinated with americans is this, we are a fundamentally different type of country, we represent a different belief
11:08 am
system in our capitalistic principles and private-property principles should resinate equally around the world. we need to put energy behind that. the chinese certainly have. charles: on the same tone, wilbur ross talked about expanding trade rather than a trade war, i would love to see us use our might and level to force open markets rather than to force middle-income americans to pay more for tv's here. >> absolutely. free markets free people. when you have people like secretary choao and secretary ross and the president commit today this and an economic team that's focused on it, i think it's great for us but make no doubt about it, the chinese have multiple aims with their plan and they're trying to reposition themselves internationally not just to represent their economy and export goods but really to export their belief system as an alternative to the american and western belief system.
11:09 am
charles: all right, amazon retailer, went public almost double wal-mart. alibaba taking the chairman, wealthiest man in china according to estimates from forbes, $30.9 billion. that's as of friday, slightly more. it went quietly to all-time high earlier. there's still some controversy though in the meantime at home over the newly crowned miss usa, some on the left let's just say not happy at all with conservative answers. she says, health care, in fact, is a privilege and by the way she won't call herself a feminist. you know who has a lot to say about this, dana lash, she's
11:10 am
next. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock.
11:11 am
11:12 am
11:13 am
>> i'm definitely going to say it's a privilege. i see firsthand that to have health care you need to have jobs, so therefore we need to continue to cultivate this environment that we are given the opportunities to health care as well as jobs to all american citizens worldwide. charles: that's your new miss usa kara mccullough, facing backlash from some of on the left for that particular answer. joining us dana lash, what did you think of her response? >> good to see you this good morning. i loved it. i loved her response and i thought that she was a fantastic choice for miss usa. i know that she's getting a lot of hate, of course, the day after. i would imagine that some of it is driven by jealousy but you
11:14 am
have example of gorgeous, smart, strong woman and god bless her for it. charles: she was born in italy and, you know, i think a lot of people think she's representing the district of colombia, she had to be a liberal, i mean, there are so many people rooting for her on social media and all of a sudden, oh, hit the brakes. >> yes, when she was asked about feminism and she said, well, i don't really define myself as that. i look at it as equalism. however, she said her answer, i loved it. i thought that was a great answer and to be miss usa and now she's going to take that common sense and great looks all around the country and i'm very excited that she won miss usa. charles: do you feel there could be a sea change of sorts in this country particularly when it comes to so-called feminism. i know you talk about the strong and many ways -- first let's
11:15 am
take a thereon what miss usa had to say and i wanted to follow up with you on this. >> i've liked to transform the word feminism to equalism. i don't really want to consider myself -- i try not to consider myself like die-hard, i don't care about men, one thing i'm going to say, women, we are just as equal as men when it comes to opportunity in the workplace. [cheers and applause] charles: your response because feminism was always sort about the woman being victims and somehow rallying around each other and fighting back against the system and the men who try to keep them in their place, at least that's been the argument. >> to her answer, no, that has been the argument and to her answer, yes, can i get an amen to that, that was amazing. and you're absolutely right with this. seeks to replace the perceived with itself, modern feminism is
11:16 am
an absolute joke. they've turned around and eaten themselves, it's not about the choices that you as a woman are are allowed to make. feminism isn't so much about the empowerment of women, that's what it has been for so long. when i was in college i considered feminist, this mother's day i was giving thanks to god that i was no longer describing myself as feminist and i can't very well go around and call myself a feminist and call for how men are evil and are the root of allel and cause of our wrongs, women need to take responsibility for our own choices and our own action and to this larger point of empowerment as you know, one of my other very -- one of my big
11:17 am
issues with me and i'm very passionate about it is pro-choice right to self-defense. i want to point out how hypocritical it is that we are smart and do anything we want to do, but, wait, we are too stupid to own a gun, we are too stupid to carry a gun, so we have the two competing messages thrown at us all the time in society and i think that women need to be women and men and women are different and we are both good. charles: i want to ask you about the gun issue. do i want to get the impact so far as to men, the negative impact on men, particularly young men in this society. do you think it's had -- listen, i think we talk all of the time about how young men are so much different than previous generations of young men, has it been very detriment detrimental in your mind of young men that canlies and lead this country as they might have done in the past?
11:18 am
>> absolutely i do this and i say this again as a mother who is raising young boys. i absolutely feel that way. i think that society has convinced women that they don't need a father, they don't need a husband, they just need government in the man's place, women, you can't really do it alone unless you have government. men have been told that they are really unimportant and they don't really bring any value, they are just somehow the apresser and they need to step back. i see men being shamed for masculine, what's wrong with chivalry. you can be hard core on the battlefield and so i think that we need to get back to really cultivating those traits, civil are you, real masculinity incident being unafraid to defend a woman, being unafraid
11:19 am
to leave your family and taking the responsibility. all of the young men across campuses across the country if they're just simply accused of sexual misconduct they are perceived guilty until proven guilty and that's how it goes for them and it scares me for my sons, we need to make sure that we are telling people to raise their daughters as ladies. charles: dana lash, we really appreciate your thought this is morning. check out this video from sidney, australia, on saturday a man leaving with his order from mcdonalds and gets into his helicopter. [laughter] charles: landed right next miq miquid's. we are going to tell you what he's up to next. ♪
11:20 am
11:21 am
11:22 am
so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift
11:23 am
in applications and customer experience. which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. tthat's why at comcast,t to be connected 24/7. we're always working to make our services more reliable. with technology that can update itself. and advanced fiber network infrastructure. new, more reliable equipment for your home. and a new culture built around customer service. it all adds up to our most reliable network ever. one that keeps you connected to what matters most. >> memory is vague but family is forever and i will be internally grateful to be a part of the yankees family.
11:24 am
charles: derek jeter return to go yankee stadium last night as the team retired his number 2 jersey. team also honoring him with a plaque and yankees stadium monument park, jeter played for the yankees for 20 seasons, 14 time all-star and helped them win five world series titles. tesla elon musk using giant machine to build a tunnel in los angeles. ashley: apparently was fed up sitting in traffic. what person who has lived in la has said the same thing. he decided he will use underground tunnel and it's going to be a sled-like thing that would carry cars at 125 miles per hour. in other words, go subterranean. it's a good idea. is la the best place when there's all the shaking, i'm
11:25 am
sure he's thought about that, they have a subway in la. he calls being stuck in traffic soul destroying. amen to that. charles: i don't know. all right, guys, here is the outrage of the morning. wells fargo now we've learned may have in fact, opened 3.5 million unauthorized customer accounts and that's far more than previously estimated. details next we asked people to write down the things they love to do most on these balloons. travel with my daughter.
11:26 am
roller derby. ♪ now give up half of 'em. do i have to? this is a tough financial choice we could face when we retire. but, if we start saving even just 1% more of our annual income... we could keep doing all the things we love. prudential. bring your challenges.
11:27 am
11:28 am
. .
11:29 am
charles: back to the major cyberattack, ran someware crippling 200,000 computers in 150 countries. our next guest is a pioneer in cybersecurity. thanks for joining us. this attack being told, there has never been anything on the scale of this before. it has a lot of people concerned this could be a precursor to attacks that are more crippling. not just to companies but to the, but to individuals as well, sir. >> good morning, charles.
11:30 am
thanks for having me. i think you're absolutely correct this is unprecedented in its scale. in number of countries it has hit. i have to tell you, as devastating it seems, this is really in terms of damage, this is fairly minor so far. i think, i think there is a lot more that can be tremendously more impactful than this, that is what we should really be worried about. charles: tell us about it. we've talked about this for maybe half a dozen years now, that the next great big battlefield, next world war won't be fought with planes and tanks but instead through a cyber network that cripples electric grids and makes nuclear power plants overheat and things like that. >> correct. let's put this in perspective. this attack has impacted windows devices.
11:31 am
enterprises running windows xp which is really old operating system that microsoft put out very long time ago. but the thing we should really be thinking about the billions of devices that are connected to the internet and billions more that are coming over the next, you know, several years. i can tell you that those devices will make windows xp look like the paragone of security. these devices are fundamentally insecure, and you know, when those get impacted by the next wave of attacks, right, you have got critical infrastructure, you've got financial systems, you've got healthç care systems that will get impacted potentially. and the problem we have here is that the way we are thinking about defending ourselves is really antiquated. i can see right now consultants out there who charge 500 bucks an hour, rushing to all these companies saying hey, let me come and save you. the likely recipe they will have is very old school. when what we should be really
11:32 am
thinking about new technologies, leverage things like artificial intelligence to our benefit? this is not a battle that you are going to win with people. you have to fight this with technology. charles: i get that and it has been said over and over again there is no way to get in front of the bad guys. they're always thinking. are there preventative measures that can be taken, to your point, internet of things seems to come a lot faster than security of things? >> yeah, absolutely. look, there are common sense things one can do. if you look at that ransomware attack, bare minimums insure the systems are patched. insure you have backed up your data. insure you're investing in the latest software, to at least, at least protection that you've got current coverage. beyond that you have to fight this asymmetrically, right.
11:33 am
as you point out, there will always be -- the question becomes what are going to do to get ahead of the breach? this is not just about prevention you anymore. the key here is what are you going to do after you have been breached? this is where technologies that leverage artificial intelligence really come to play. charles: thanks very much. appreciate your expertise on this morning. >> thank you, charles. charles: joining us keith fitz-gerald. what is your whole take on this thing, keith? cybersecurity names are higher. let's not forget they got hammered last week on bad earnings. >> this is the thing do you react actively or proactively? we're caught right in the middle. the devices he talked about we have to lane into those. a 12-year-old in a drudge can take those down. when they are linked to the financial markets, our banking system you have sear, serious
11:34 am
problem. imagine a stock market panic you can't contact the market to sell. that is really going to be nasty. charles: again we keep talking about it, feels one of the ransomware, 3 orhundred bucks that $500 an consultant, pay someone 300 bucks and they go away. who take it seriously and ponies up the money first? will it be corporations or the government? >> you're on to something here, charles. there is legal wrinkle in the system. yahoo!, takes 14, 18 months to report it. corporations are reluctant to report it, because of legal liability. our legal system says hey if you screw up you're liable. they don't detect breaches or want to report them. until that changes i think we have a real chicken and egg scenario. charles: keith, i want to ask you about this because i'm
11:35 am
getting mixed reviews from people i respect. stay right there. i want to talk about first china, they're spending at least $1.4 trillion on a new silk road as the trump administration pushes his own infrastructure plan. our next guest says he lead as company ready to build one of president trump's projects. michael kelly is with us now. thanks for joining us on the show. >> thanks for having us, china. charles: i'm reading about china, $1.4 trillion road. they will cut through jungles and laos and sri lanka and build a port there. they are billion dollar investments getting tentacles around the world and we have infrastructure trouble getting going in this country. what do you make of it? >> the lesson we learned from infrastructure this country many years ago, infrastructure is the foundation for long-term growth.
11:36 am
the chinese have made investments over last 30 years. now they're taking those invests parlaying them into really regional, political strife. that interesting strategy on their part. clearly they're trying to keep their industries in high gear and continue to support fantastic economic growth they have seen over last 30 years. charles: you're on the front lines of this infrastructure effort in this country. we do know that there are certain things, we shoot ourselves in the foot. there is the red tape. there is the so-called shovel-readiness of these projects which of course turns out in the past not to be so shovel-ready. how do we get around this? what should we be focused on as congress figures out a way to pay for this, are there things we could be doing now so we ultimately hit the ground running? >> there are a lot of things. what you're company does we have building 700, 800-mile long power lines to move energy from the middle of the country where it is cheap, abundant and clean
11:37 am
to the grids on either coast. and in doing so, this creates a tremendous number of jobs. it creates a lot of market efficiencies in the energy sector and -- charles: are there regulatory hurdles for you, every state, every municipality? >> there are, there interest and it takes many, many years to get through these processes. one project we got through the process took seven years. we have another project we're seven years in. probably a year-and-a-half, two years, from clearing all the hers dells on that. so it takes a very, very long time. and, it's a lot of it is because we have not leaned in on infrastructure in the united states over the last 30 years or so. charles: michael, thank you, very, very much. really appreciate it. keith fitz-gerald, he is still with us and i wanted your thoughts first of all china. you spend a lot of time in asia. you understand what is going on there better than anyone else. i think it'[ç a brilliant move n their part.
11:38 am
i think it could help them in their efforts to try to leapfrog america as the world's premier economy. >> i think that is the real picture here. i've been talking about this a decade or so since it first came on my radar screen. what american investors need to understand the dragon is coming to lunch on tuesday and whether you want to be at table or on the menu is the issue. this is $1.2 trillion image to remake the world in china's image, not ours. investor has limited window because the story is out in the open to get on the ride. if you don't, buy america is one thing, but buy the rest of the world when nobody wants to buy america is a different equation. charles: keith, appreciate it. now to this. wells fargo opened as many as 3 million unauthorized customer accounts. ashley you have the story. ashley: first number was two million, fake, bogus,
11:39 am
unauthorized accounts whatever you want to call them. that was from 2011 to 2015. lawyers negotiating a class action settlements with the banks saying wait a minute we need to go back to 2002. 15 years. they claim the number goes from 2 1/2 million to 3 million. wells fargo wants this to go away. it isn't going away. they're trying to settle it. former employees of wells fargo were claiming certain segments of the community were targeted, nate e native americans, college students, illegal immigrants, those were people they targeted to create bogus accounts to meet their sales quotas. so a story we thought was going away, it has now come back. charles: we're checking on the big board. we're hanging tough. dow is coming up 80 points. maybe 84 at the high. certainly strong start to the week. look at nasdaq because it has been all about nasdaq in 2017.
11:40 am
yet another record high. unstoppable juggernaut. finally, let's look at a peek of the s&p 500 which is also doing extremely well this morning. and now this, president trump finding an unusual ally on twitter. ceo jack dorsey, we'll tell you what he said next. back to that story i mentioned at the top of the hour. new york lawmakers considering legislation that would work, work like a breathalyzer for texting to combat distracted drivers. sounds like a big privacy issue. not just a new york thing by the way. judge andrew napolitano is coming up on that so stay with us. ♪
11:41 am
11:42 am
♪ >> i'm nicole petallides with your fox business brief. right now the dow jones industrial average up 70 points. nasdaq composite also higher. s&p 500 up 11. all 10 sectors are higher led by energy as oil gains financials, technology, materials, all-time high for the nasdaq again. up over 18% since the election. you see there symantec, nvidia, expedia some of the best performers on the nasdaq. am pep amazon. years ago, today we saw the launch amazon, if you invested
11:43 am
$100 at that time, it would be worth over 49,000 because the stock is up, surging almost 50,000% since its launch. third year year on. see you on fox business at 5:00 a.m. see you there.
11:44 am
♪ ♪ welcome to holiday inn! ♪ ♪ thank you! ♪ ♪ wait, i have something for you! ♪ ♪ making every stay a special stay. holiday inn, smiles ahead. whether for big meetings or little getaways, member always save more at >> i believe it's really important to hear directly from our leadership and i believe it's really important to hold them accountable. and i believe it's really important to have these
11:45 am
conversations out in the open rather than have them behind closed doors. he has found a tool that is useful for him. charles: that was the cofounder around ceo of twitter saying let the president keep tweeting. chris stirewalt is with us, fox news political editor. chris, your thoughts on that? >> why not? why shouldn't he? i think people get very tied up in this question of platform. the things that donald trump says would be either good or bad on the radio, on television, on twitter. he is the president of the united states. he can certainly get his message out. charles: he can get his message out but i think some people who actually are, who are fans of the president do worry about the impulsiveness of twitter being right there and being able to tweet the first thing that comes to mind. >> well they won't fix that by taking twitter away from him. as we saw with his firing the way he fired james comey, he used his personal bodyguard to
11:46 am
issue the letter. he did that before a tweet was issued. it is not about the social media platforms but getting the boss to work with you channels f you want to fire the fbi director work through us. some compared "jerry maguire" through the locker room scene, help me, help you. help me, help you. a lot of white house staff and support remembers saying. charles: washington media can't seem to stop talking about president trump's firing of fbi director james comey, do you think the average american cares as much about this with johnson, economy, mother's he day this weekend? >> that's true and i think we are very blessed, my friend, to live in a republic in which we hire people to represent us. in which we hire leaders to go to washington. and we are under the belief they will execute the priorities of the voters, execute the priorities of the country to
11:47 am
take care of this stuff. the reason there is, one of the reasons there is such little confidence in institutions when things like this happen, it is all things fall apart. we all of sudden, instead of handling the normal transferns of power everything turns into a giant freakout, over froth. if i was sitting back in ohio as a trump voter what are they doing in washington? why are we fighting about this guy i never heard of? what about border security? what about jobs? what about tax cuts? where is the stuff. charles: real quick though the mainstream media plays a role in that. the job of reporting. then there is the new job for the most part which is an faking flames in their own idealogical agenda. >> absolutely, and we know that somebody who is watching you right now, watching us right now, is plugged in and to degree most americans aren't. most americans are wise. they ignore all of the back and forth in washington, this, that and other thing. we want to know because we know
11:48 am
in the long run these small incremental changes add up to big things at the end of the if you want to know first you have to know it all. most folks say wake me, wake me when there is recovery. charles: talk about the incremental changes and leading to the big one. in this particular case, gop growth agenda because it has been stalled and some people are blaming president trump. they're saying it is his unpredictable nature, not obstructionism. what are your thoughts? >> it is obstructionism, like saying napoleon lost to the russian winter. they have always winter in russia. we have a delay essentially we're waiting to find out who the president is going to pick for the fbi director, whether that will satisfy all the republicans and at least get lip service from the democrats this is stumbling block before getting own to the rest of the stuff. they don't feel like they can really move before the issue is wrong. charles: why can't they turn this would-be negative into a positive? in other words, why can't it be
11:49 am
a reason for gop to speed up the process, get more legislative wins on the board, rather than a reason to stumble and fall behind even further? >> well, as far as the thing that the president and everybody else has said has to come first, they have decided has to come first, which are cuts to the obamacare, we'll have a cbo score for that. we'll have a costing of that later this week, even if we're going superfast, we're still many weeks away moving at rapid speed. we're talking about a trillion dollar bill. we're talking about something that affects, taxes that affects all these things. it will take a month at the quickest before the senate could be on to something else. the fbi director part has to happen, it can happen concurrently to a certain degree. until that is resolved i don't think -- nobody wants to talk about anything else. charles: chris, thank you very much, appreciate it. >> you bet. charles: google is hitting all-time high earlier, it is killing apple and microsoft in the classrooms. what is going on? ashley: amazing how pervasive google is, i don't mean that to be a bad term. through their low-cost chrome
11:50 am
books, mobile laptops and free education apps are really getting a stranglehold on the classroom in the united states. so just looking at some numbers. more than half of this country's primary and secondary school students now have free google laptops or using google apps. why is this a big deal? well, because when these people, you're making essentially, you're creating lifelong customers. they're comfortable with google. so when they leave they're being encouraged to up load all of their school gmail on to now adult gmail accounts and so on. so there isç uneasiness among some parents to say this, is a bit of a takeover. are they accruing information on these students which can be used in later life for advertising. charles: hook them early and often. has been used by industries from the beginning of time. thank you, ashley. up next, judge andrew napolitano, he will break down legislation that allow police to use a breathalyzer for texting. this is a crazy story. stay right there. ♪ a naturally aspirated 5.0-liter v8 engine.
11:51 am
a 10-speed direct-shift transmission. a meticulously crafted interior. all of these are feats of engineering. combining them with near-perfect weight distribution... a feat of amazing. experience the first-ever 471-horsepower lexus lc 500 or the multistage hybrid lc 500h. experience amazing.
11:52 am
11:53 am
11:54 am
won't replace the full value of your totaled new car. the guy says you picked the wrong insurance plan. no, i picked the wrong insurance company. with liberty mutual new car replacement™, you won't have to worry about replacing your car because you'll get the full value back including depreciation. switch and you could save $509 on auto insurance. call for a free quote today. liberty stands with you™. liberty mutual insurance. charles: president trump as travel ban in court again. this time lawyers from the justice department, they will defend the executive order before the ninth circuit court of appeals in the next hour. judge andrew napolitano is here.
11:55 am
judge, these are three clinton appointees who will hear this thing. >> yes. charles: yes. charles: does that have an impact on the case? >> it shouldn't. you put on a robe rest of your life. you get away from the political environment and forget about the forces that put you there, why the in fairness to the president we keep seeing the same pattern of democratic appointees to the circuit of courts of appeals validating this. if barack obama had signed order it would be found constitutional and legal based upon the president's ability to control foreign affairs and limit i am my operation. because donald trump signed it and said religiously incendiary things about people affected by it, the courts are calling it not a travel ban or muslim ban. if it is a muslim ban, if it is based on religion, the bar is so high, that the government could never jump over it. charles: even though limited to a few countries and where, more
11:56 am
about security, known security threats than religion? i think anyone -- >> why can't the court look at it as steps iably as you just did? charles: i have to ask you quickly about the law in new york. lawmakers considering a proposal will allow people to use a tex you'llizer. they can see if you are texting before the accident occurred. >> wouldn't surprise me if it is found constitutional on theory, when you accept your driver's license, you consent to let them measure your blood-alcohol content through your breath i consent to lookly this. where will the consent to to next? what else will we take away from us bense our will? it is profoundly wrong. it's a stunt to make it easier for police to prosecute. of debts because of texting, people taking their eyes off the road, guy run his pickup truck into a church bus, hard to see any public opinion going against
11:57 am
this. >> it is. just as hard to see public opinion against dwi. i was on the bench in the dwi era. in every era there is a favorite law, a law that everybody wants to make harder and more draconian and easier to convict. right now texting is the one. charles: judge, thank you very much. >> you're welcome. charles: more "varney" after this. ♪ angie's list, we believe there are certain things you can count on, like what goes down doesn't always come back up. [ toilet flushes ] so when you need a plumber, you can count on us to help you find the right person for the job. discover all the ways we can help at angie's list. brtry new flonase sensimists. allergy relief instead of allergy pills. it delivers a gentle mist experience to help block six key inflammatory substances. most allergy pills only block one.
11:58 am
new flonase sensimist changes everything. looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock.
11:59 am
charles: sad news to pass along. brad grey, former ceo of paramount pictures died of cancer. he led the studio for 12 years, produced blockbusters like transformers and "star trek.." produced the hit tv show, "the sopranos." brad grey was 59 years old.
12:00 pm
dow is gaining momentum. what is compelling the leader here, cisco reports later this week. wall street bidding up cisco and applied materials on week that they report. shows extreme amount of confidence. neil cavuto. it is all yours. neil: thank you, my friend. we're following developments in washington, d.c., where the president is about to address the national peace officer's memorial service. that honors police officers killed on duty. vice president pence made remarks. all of this made on a day we see stocks advancing. a lot has to do with rumors we might have an fbi replacement candidate sooner rather than later, maybe as soon as tomorrow. hard to quantify that but we're also getting word that the president wants a sort of a top to bottom wholesale change in senior staff, maybe jettisoning his entire senior staff likely include steve bannon, sean spicer, reince priebus. again you heard these rumors in the past but they're taking on


info Stream Only

Uploaded by TV Archive on