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tv   Varney Company  FOX Business  April 10, 2013 9:20am-11:00am EDT

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♪ ♪ imus in the morning ♪ >> ♪ sitting on the dock in the bay ♪ the ♪ watching the tide roll away ♪ >> the president can sing that we are dancing to the wall street tune again today and you're going to like it. good morning, everyone, the dow will open with another solid gain in a few minutes and it will add to the record close
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yesterday. now, what's going on? it's mainly the worldwide, money printing binge. everybody is doing it and ever more. and according to the latest from the fed, ben is going to keep it up. hold on, there's a hint of scandal in the fed report. a select group of people saw it by accident yesterday afternoon, way early. the market was still open. how did that happen? regardless, today we could see the dow across 14,700. smile, everyone, "varney & smile, everyone, "varney & company" is about to begin. u still sleeping? just wanted to check and make sure that we were on schedule. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers.
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how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪
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>> all right. everyone, this is a stock alert. a news alert. the dow will open higher, and moment ago the federal reserve released a report, says, quote, joblessness is still elevated. there is no confidence in a substantial improvement. okay, here is where we stand. ben bernanke will keep on printing money as long as the unemployment rate stays up.
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he's not confident it's going to come down, therefore, ben is going to keep on printing money. that's why you will 'll see the open nearly 50 points higher, 15,700. nobody knows the markets better than art laffer, is it all about printing money? is that why the markets around the world are up? >> it's to do with printing money. but it's extremely low after the rises. if you look at taxes relative, direlative,-- i think one of the things that stock markets are anticipating is an improvement to public policy coming in 2014-2016, so the darkness over the period i think is behind us, all of this bad obama democrat stuff is
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behind us and i think we look to the future a little better. stuart: art laffer stock market bull. stay right there. look at the 401 you're going to make some money. 15 institutions, isn't that what businesses are supposed to be done. that's the ott the only thing that caught our eye, the budget arrived today and wait until you hear what else is in it. this you will not like. suddenly, she does something unexpected
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in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. >> you have your list of stocks with you? do so, please. in a minute you're going to smile because they're going to go up. here is scott shellady joining us from chicago. do you see any scandal in this early release of the fed minutes, two o'clock yesterday instead of two o'clock today? >> well, now what, stuart, i wish there was a scandal because the other point of view would be it's a little embarrassing gaffe and having done this for 25 years, i've seen nonfarm come out on thursday afternoons. seen the usda release a corn report for nebraska in iowa and it's more of a gaffe than it is a conspiracy.
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stuart: by the way we didn't detect any movement in the dow significantly, didn't pop or fall down at two o'clock yesterday afternoon when the release came through. you see nothing in it, right? >> no, i don't. so, away we go, up, up and away. >> you're right. the belling is ringing, let's see how far up shall up and away we're doing. we're looking for a 45, 50 point gain in the opening bell and that would take us beyond 14,700. yeah, we're up. the opening trend is up and we're going higher. let's check with nicole, first of all, the dow stocks of open. who are the winners? tell me. >> i saw pfizer, mercks j.p. morgan and some of the winners now. the dow jones industrials are up about 15 points. so an interesting part about the action in the the dow we've finally had two days in the same direction. the middle of march shall the dow had an up day and a down day, an up day and a down day. which way are you going?
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finally now, we've had two updates in a row and see whether or not we'll make it three. stuart: it's moving higher. look at it now. we're at 14,698, buy something, somebody we'll hit 14,700. here we go, wait for it. come on. all right. i'll have to check something else. and while i'm waiting. i'm check the discount retailer, family dollar, didn't make as much-- thank you very much indeed, everybody, i'm glad you bought something, 14,700 is where we are. didn't makuch ass expected and why is that? the tax refund checks were apparently delayed. that's according to family dollar. it's down a buck as we speak. now, i want to go to j.c. penney, huge loser yesterday, a 12-year low. any bounce today, nicole? >> oh, yeah, a huge bounce, 1/2 of 1%. >> okay. >> and that's a big move. what's interesting, too, what
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we're seeing here is that j.c. penney is talking about what ron johnson now stands to lose and we're hearing at least 37 million dollars in salary and fringe benefits and of course, the shareholders probably wish it were more than that, but right now, obviously, ron johnson out and j.c. penney getting a boost and we should note, holy toledo, a new record all-time intraday high on the dow jones industrials, 14,740 at the moment. stuart: yes, let's be clear, that's as high as it's ever been during a trading session, intraday, as they say. 66 points higher, look at it go, 14,740. art laffer is with us. and minutes ago you said we've got a ways to go. and i was going to talk about the market. 16, 17, 18-- give me a number. >> i don't know how to give you a number. i think in the next three years,
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it will be a very, very good market, next three or four years and it's based on politics as you know, and i think good changes in economic policies would really fire that dow just the way they did under reagan and clinton. stuart: now i've got the budget, it was just released, okay? i'm going to pick an item. number one, there's going to be a cap on 401(k)'s and ira's, that's a rotten message to send to young savers. and you say? >> you're totally right. this guy doesn't know straight up from stick em. but he alienates the groups and tries to make it as bad an economy as he can get. >> tax the rich, i believe that's what it's called. >> that makes no sense. hedge fund managers, they pay 15% tax rate because of carried interest. and basically their interest is called capital gain and that apparently is going to change and it goes to ordinary income, and the top rate is 39%, what do you make of that? >> you can make the argument either way, but the reason that
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obama is doing this is to tax the rich. and what we need is good old tax reform ala simpson-bowles, the same rate from the first dollar to the last include it should include everything like jerry brown did when he ran for president and you could have a low rate of 12% and be stat i can revenue neutral. that's where we should go. not nonsense put out in the budget, and this is just bad economic policies with no leadership whatsoever. and i know budgets and i know when they're done this way because i was the first chief economist at the omb when it was formed in 1970 and this is just the bad, bad policy for budgets and everyone knows it. >> grover norquist was on the show yesterday and categorically said these tax increases, whether it's on ira's, it doesn't matter, he says they're not looking at any of them. and let's suppose he's wrong and we get some of them?
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will that slow the economy? >> it won't slow it hugely, but it will if these are wrong policies, this is not the way to do public policy, stuart. what you want to do is broad policy to make the codes fair and then get out of the way and let people do their business and don't make them worry about tax codes and how everything is formed and so they're sitting with their lawyers and economists and lobbyists. and they should worry about making good products and that's what the people should do. >> music to our ears. why are you such a stranger to us, art laffer, you're sitting there in tennessee you've got to come to new york occasionally. >> i do, every three or four decades. that's what i do and then we have a revolution and then the weasels come back in and sit there and diddle with it and make it bad and it's just terrible. the same thing as britain, look at the cameron guy, he's as bad as they come. stuart: don't start on the--
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i'm american. >> i was thinking of lady thatcher, how wonderful when she and the rest of us were working on that stuff and it was wonderful and reagan and thatcher and now we'll have to do it in a couple of years and we will. stuart: nostalgia, that's what i feel. >> thank you, stuart. stuart: and two senators are expected to announce a bipartisan deal to expand background checks for firearms, falling short of what the president is asking for. not universal background checks or a ban on assault weapons, but this legislation would expand the checks at gun shows and on internet sales. okay? and the senate could vote on a new gun law as soon as tomorrow. all right. also on capitol hill. house republicans, they're going to hold a hearing today on the keystone pipeline. congressman ed whitfield is on the committee and joins us now. all right, congressman, at the end of this day, do you-- can you say positively this
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pipeline will be built? >> well, unfortunately, i can't say that, stuart. and as you know, trans canada submitted an application in september, 2008, almost five years ago and it requires the presidential permit and this president is not willing to grant the permit. stuart: we hear though that he is likely to approve it. i know it's been long, long delays, but we're hearing he's likely to approve it. what's your sense of this? >> well, you know, i have my doubts about that because we invited five cabinet officials from his cabinet to come today to talk about this pipeline permit application, and they refused to come. >> so they refused-- they flat-out refused to come? they wouldn't be there? >> no, that's correct. stuart: okay, who is going to appear in front of your committee today? >> well, we're going to have the president of trans canada and he's going to come and talk about the pipeline, and we're also having labor union representatives who support this
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pipeline. and then of course, we have some environmentalists who very much opposed to it. stuart: okay, so it will be an interesting hearing and we'd like to hear about that. i've got congressman ed whitfield. thank you for joining us, we appreciate you helping us. thank you. >> thank you. stuart: i want to show you that s&p 500, that is a new high. 1575, okay? up about 1/2% today. new high there. look at the dow jones average please, we're now up 58 points, 14,732. earlier, we were in the 14,740 range. that was a new intraday high. never been as high as that during a trading session. so, we're off to a rocking start this wednesday morning. all of that, plus this. so much for maximum pain from the sequester cuts. at our embassy in brussels, hundreds of thousands of your tax dollars spent on gardening. yeah, tulips, violets, begonias,
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and after the sequester cuts were imposed and the tour. new at 10. i've got 7 early movers, these things should go up in a market like this. google, first of all shall it's bringing you will at that high speed internet and tv service to austin, texas. and the health management associates cut its outlook and it's down big, down 12% now. better than expected profits at the warehouse club, price smart. it's up four bucks, a 5% gain. we've got a disappointing outlook from the software company, c-change, and the family dollar posts a higher profit, cuts its outlook because of those delayed tax refund checks. it's down a buck. and general motors running ads for chevy car on mobile versions of facebook. gm decided to stop advertising on facebook a year ago, but they're back. a 27 on gm's stock.
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you know the real estate brands, century 21 coldwell banker, and realgae is taking a hit and nearly 3% there. check the big board, new intraday high on the dow, that's intraday, and on the s&p. because ben will keep printing. here is the headline from our next guest, quote, how many parents think it's okay for a 12-year-old to have unprotected sex and then follow it up with the morning after pill? accord to go a federal judge, that's now the law of the land and dr. marc siegel doesn't like it. he joins us next. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help.
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@ ♪ (train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities. >> read this and smile. 14,700 up again today. 54 points higher, why? because fed minutes released
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shows that ben bernanke is likely to keep printing. that's the name of this game, ladies and gentlemen. the s&p 500 all-time intraday high. and a federal judge ruled that plan b, better known as the morning after pill must be available over-the-counter for people of all ages. and plan b one step, must be available. the ruling, if you're under 17, you can get it, but by prescription. this new deal cuts the doctor out of the whole deal. dr. marc siegel is here and he's not happy. >> a market for the pill, but i'm not happy. stuart: let's deal with the factual side. you think the pill will sell? >> you can hoard it now. girls 15, 16, i don't know when i'm going to need this. buy it by the truckload and
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stock pile it which is bad medicine. if you needed it, no parents or doctors involved, might take three or four at once and might have bleeding. but the pharmacist, taking out prescriptions means bigger market. stuart: now shall the parent company of the maker of this drug is teva pharmaceuticals, i'm not suggesting that the stock will move because of this ruling, it will not. teva is a huge company. they're up this year, but not in replagues to plan b, one step. >> i don't know anything about that stock at all, but i have he' been watching it and they also are in the generic cholesterol market and this company makes a lot of wise decisions knowing when a pill is becoming hot. wouldn'ten surprised to see them move. stuart: look at that, up 7%-- i'm sorry, that's, i'm sorry, this is separate. that's morrison, that is totally separate, that's a family home
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building company. totally separate from this discussion. back to the plan b one step. you're out of it, not in the picture. i find it incredible that this kind of drug, a powerful drug, could be just handed over, over-the-counter, along with bubble gum, to someone of any age. you're out of the picture. >> that's the biggest problem of all because doctors have to play a role with young women deciding if they're going to become sexually active no matter what age. risk of sexually transmitted diseases. are they going to use condoms, tell their parents what's going on or end up bleeding and end up pregnant and not knowing it, ending up with more health care costs. this is irresponsible because doctors have a primary role in communicating with patients. this is going by the way side in general, stuart. talking about pharmacies expanding their care and more and more urgent care centers in pharmacy. now the only person you're going to talk to about a pill like this is the pharmacist, even
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though it's not behind the counter, it's over-the-counter. a 12-year-old can purchase this at the counter without anyone knowing it. it's shockingly irresponsible. the same drugs in brooklyn started all of this by lowering the age to 17 and now gotten rid of it entirely. going to the supreme court on this. stuart: probably will. doctor, interesting stuff. >> sure. stuart: thanks, doctor. time for the gold report. when the dow is up new intraday, we're up 1573. i've got a report that says that japanese are selling gold and buying american stocks in its place and i think that's what i'm told is going on and gold is down. here is a word for you. file astein. my take on fine art, culture,
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the elite, wait for it. this is $100,000.
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we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally.
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>> here is why the dow is at this point. because the fed report today says joblessness is elevated, but there's no confidence that there'll be a substantial improvement, therefore, ben keeps printing.
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and look at the s&p 500, it's at a new intraday high 1575. time is money. i've got 30 seconds worth of what else we've got for u a rich man donates millions in art in new york. did he do it because she's a philanthropist? and could this model free streaming movies on the internet be a cable kill sner we'll ask the man behind that company. and a diamond so rare and expensive we can't tell you how much it's worth, but we can certainly show it to you. it will be live in the studio. hint, it is a golconda. and i'm scanning the new headlines and a gift of a billion dollars worth of cubist heart to a museum. it's not the gift that got he me, it was that, i don't know
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what cubist art is. it's a moment of self-realization. here is my take on being a philistine. yes, that's what i mean and i'll bet a lot of you are, too, a philistine is someone who does not appreciate the fine arts. someone indifferent to intellectual and artistic matters. yes, indeed i'm uncultured. i've never been to the opera or a classical music concert. i rarely listen to music. i have never been to the great art galleries of new york or anywhere else although i did join 3,000 japanese tourists staring at the mona lisa in paris. i rarely go to the theaters or the movies and deliberately don't read the great intellectual journals of the day and i never attend dinner parties, discussion groups or chitchat sessions with the elites. clearly i'm not a cultured person. so what am i? i tell you i have a striver. i came here with absolutely nothing and work for every penny
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i've got. i'm one of the people the elite hate because i refuse to join their intellectual mindset and reject their policies. i'm a thatcherite, a reaganite, do you think i sit in dinner parties? i'm an american, a real american. i'm an american, as tom petty says, i will not back down. ♪ i will not back down ♪ ♪ friday night, buddy.
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rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. stuart: in this hour, the pipeline scare tactics, the oil will spill, exploited, and the oil is dirty. you will meet one of the scare mongers. it's something we don't like, 4.5 million this people disconnect their cable, meet one of the men who is enticing them away. the budget has arrived. a bipartisan love fest? no way. both sides hate it. senator grassley on that. a billion dollar gift of art, but how big is the tax writeoff, and why give now?
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before obama caps deductions. this, $700 million for gardening, what sequester pain? ha. ♪ stuart: can you hear the printing presses humming along? we don't stop because the jobless rate is high and will be for a long time to come. that's why the dow industrials are up 71 # point, ain't that right, charles? >> there's a school, there's a big pool of people in the market, a lot of professional traders, but i still believe in value, and that's why, you know what? here's why it's important, stuart. i'll be honest with you because when we tell investors the market's up because of printing and stock goes down, and they sell it, lufkin, a big winner,
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seven sold the stock. why? bay were scared. you know what the margins are going in? it's a worrying proposition. they missed 7,000 points, maybe they'll miss more. stuart: you agree with me, in part -- >> oh, absolutely. stuart: it's a paper driven rally; yes? >> yes, but the number to be scared of a north of 15,000. stuart: do you have anything to say? >> the fed -- expect them to print for some time to come because they are bad at forecasting prior bubbles, and they don't have their art of or science to -- they won't print because they don't have a grip on the forecast model. >> the thing is they are arrogant enough to think they can flip a switch. they are creating a bubble deliberately. by the way, the minutes they worried about fiscal policy as well, and they are not really
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too happy with the stainability of the recovery. stuart: hands in the air. hold on, everybody. cue the trumpets, i want a blast of trumpets. why? i'll tell you why, because microsoft -- ♪ there you go. it's nearing $30 a share. retirement territory is 35-40. nicole, why? >> right. well, we've seen, obviously, microsoft doing well and technology among the leaders recently. yesterday, we saw -- by the way, here i am with u.s. coast guard, and they are learning about business and will be the future; right? preacing our coastline. stuart: nonsense. you lined them up because microsoft is near $30, and they want to celebrate with me. >> it's almost $30 a share; right, guys? [cheers and applause] stuart: i love the coast guard. the new ipo is there, trading, taylor morrison builds single
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family homes. it's up, nicole? >> $22ipo, up 7% at 23.50. it's been received well, a lot of clapping going on over at that particular post. the home builders are a successful group. stuart: thanks to the coast guard for cheering my stock. thank you, ladies and gentlemen, and all that. it's official, in the next hour, president obama unvails the budget. here are a couple highlights. the president wants $1 billion to launch a network of manufacturing innovation institutes, 15 of them, across the country. next one. he's proposing a program to offer preschool to all 4-year-olds from medium to low income families. to pay for that, the president wants higher taxes. high taxes on cigarettes, that's part of the tax hiking program. finally, he wants even more money to keep funding high speed rail. all right. there is some bipartisanship
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here in that both parties actually hate this budget, so i don't know how much of this is actually going to pass. i'd say not much, charles. >> these budgets now have become more like trial balloons rather than legitimate -- you know, the gorks they should be rolling out with these, and, by the way, both sides of the aisle, i think would get closer to any would-be grand bargain. that's because so many changes with cpi and things like that. >> for social security cuts. >> for social security. stuart: bottom line, i don't think there's a grand bargain this time around, do you? >> i don't think so. >> no, i think there will be because the midterm elections and don't want a standoff ahead of the debt ceiling hike. stuart: by "grand bar qin," do something with social security, chain inflation, okay, and on the other side of the fence, some modest tax increases. >> well, yeah, and he's not going to -- the president's not imoing to back down on shutting the hoop holes for cooperations even though there's balance --
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but the tax hike, the buffet tax is in there again. we're also seeing, you know, the hits to private equity funds taxing their capital gains as if they are labor when they have to pay taxes in the bonuses. point being all the tax hikes bring in revenue that will be equal to 20 dayses of spending under this budget. stuart: still going to have a near trillion deficit for years to come. >> that's it. stuart: not much of a bargain. going to washington, senator grassley is obama's budget dead on arrival? asking him that question at 10:16 eastern this morning. the latest ad made by the opponents of the keystonepipe line. >> it's not if, it's when. it's happened before. now, again. keystone xl doesn't go to the u.s., but through the u.s. sending oil to places like china and venezuela putting us at risk while big oil gets the reward. connect the dots. it's a pretty ugly picture.
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stuart: there, you saw it. joining us is jane, part of the group that helped to make this ad. jane, very much welcome to the program. it's good toe see you with us. >> thank you. i was not sure if i should do a scare, you know, face, because you called me a scare monger, but we'll see. stuart: i didn't mean to call you names, but i did. we disagree. i want the pipeline built, but i don't propose to have a shouting match with you, and i don't want to talk on top of you. see if you agree to this. i'll ask a question k take 20 seconds, you have 30 seconds to respond. i will not interrupt you or mess around with what you got to say. okay with that? >> sounds good. >> okay. number one, that ad says we're going to export the oil if we bring it down in the pipeline from canada. my question is, how do you know? you don't know that we're going to export that stuff, and you really -- the oil will -- if we get it from canada, we won't be
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getting it from our enemy the. sorry, go. >> that's not true. transcanada told the canadian energy board this is an export pipeline, and they made it clear in the application this increases gas prices in the midwest by 10-15 cents because it is kind of taking oil from oklahoma where it normally goes down to the export market. there's two refineries that handle this type of heavy crude that's tar sands. one is motiva, half ownedded by saudi arabia. those are export refineries, not refineries who package it up to bring back to the united states. tar sands is a heavy type of crude, doesn't get refined into gas to fuel the cars, but refined into heavy diesel which venezuela and china use that fuel. stuart: okay. all right. it is dirty oil. that i admit. it is. there's more emissions, whatever it is, there's more in it than in the kind of oil we drill out of north dakota, whatever. it is dirty, but according to
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the state department, if we use all of this canadian oil, everything that comes out of the grown and use it, it only adds 0.01% to global emissions. go. >> yeah, well, you know, we think the state department analysis is flawed. we are really, you know, upset with the state department they continue to allow oil and gas industry consultants that have clear ties to transcanada working on other projects to do the analysis. you think with all the employees we have, we wouldn't have to hire all these, you know, oil and gas industry experts to do an analysis of a project, and so we don't agree with that. anybody who has a level of common sense knows tar sands increase greenhouse gas emissions. canada knows that as well, which is why redford was here just today and just yesterday trying to say that there's going to be doing things to try to decrease the greenhouse gas emissions from tar sands, and so, you know, when land owners along the route look at the project, they are not looking at the
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greenhouse gas emissions. stuart: 30 seconds up. >> okay. stuart: whether we build the pipeline or not, the oil comes from the ground, will be used, maybe in china, someplace else, i don't know. there's no way you're going to stop this oil from coming out of the ground and being used. go. >> there's already lot of science that that's not true. there's articles in the washington journal and various financial industry magazines that say that this pipeline is thee lynch pin for the tar sands industry to expand. it's true that they'll continue to kind of export and mine about 3 million barrels a day, but 24 pipeline alone would be a million barrels a day. they need the partnership pine. if it's approved, they have plans to criss cross the united states with other pipelines which is why it's critical to stop this pipeline. in america, focus on making sure oil and north dakota, oklahoma, and other -- and montana, that that oil's getting to the market, but that oil brings down
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prices. stuart: one last one. i think that the president will say yes, build the pipeline, may tax the oil, can't export it, but i say he will approve the pipeline. ten seconds left, am i right? >> i think he's going to stand with land owners like randy who don't want land taken away by foreign corporations for that to be made with foreign steel in the foreign market. the president will focus on american energy, believe in the american spirit, that we can be energy independent and add foreign oil is not the solution. stuart: that was a very civilized exchange of views. you are totally wrong, but that's ire relevant. >> you're wrong too. stuart: i know. jane, thank you very much for joining us. we appreciate it, we do, very much. go. >> entertaining. >> when you do these things and whatever government facts you like to use, whatever government facts you don't like, you don't use, and she started off saying
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we would use it for exports, but the defense was we should be using north american oil. well, you just said we export that so we're not -- >> the issue about -- exactly. the issue about spills, no mention of the spill in mention with the railway car; right? how many spills are done by car or truck and not pipeline. stuart: i think we deserve a free and open debate, and we got it. >> sharp ped up the argument a little bit more from the fact that, hey, it kills people. it's an economic argument. stuart: another piece of spending that escaped those sequester cuts. just one week after the cuts took place, the state department spent more than $700,000 on gardening at the u.s. ambassador's house in brussels. that money is going towards, and i quote, grass cutting, edges, trimming, weeding, and other services. it will also mandate the planting of 960violas and
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begonias. what's the ground keeper say about this? >> englishman and scotts or japanese and scotts or scotts and other scotts, scotts, they ruin scotland. >> you scots are contentious people. >> you just made an enemy for life. stuart: that clip has nothing to do with anything other than it's funny, and i bet you didn't understand a word of it. >> i did because i'm scottish. stuart: you are? >> mostly irish, but -- stuart: now she tells us. 700,000 bucks for gardening at the am bar dos' house in brussels, 5e7 you say? >> outrageous is the only word to come up with. stuart: couldn't we have cut that rather than white house tours? >> instead of cutting lops, you -- lawns, you know, talking about cutting people in the government, people losing jobs, and now we talk about budgets for cutting lawns.
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not just in brussels, but i understand i understand -- indonesia and thailand. i thought it was an april fool's joke. stuart: our producers are frantically searching for pictures of begonias. we got the tulips, got them, but begonias, not sure. >> they have household staff to do the gardening. they do. stuart: you're passionate about this. we're joking about it. >> the president's budget came out. i'm concerned about the taxpayer, i really am. stuart: nicole, the fda giving a favorable ruling to pfizer's new breast cancer drug. that stock up? >> when you talk about drugs and therapy for breast cancer, it's good news. up 2%, moving to new app newel highs today with this move along with the market, but i was charting it back, back to 2006, 2004 levels, so this is not just a one-year high. it's a multiyear high.
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good news. stuart: good news for a lot of people. thanks very much, nicole. dow up 80 points, yet another intra-day high. it's 248 points away from 15,000. i know we got the graphic ready to roll. two months since the deadline. today, finally, we get president obama's budget taking heavy criticism from republicans and from democrats. is it dead on arrival? senator chuck grassley is next. in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected.
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♪ stuart: follow jcpenney, hitting a 12-year low yesterday, chief ron johnson out announced yesterday, and, today, 14 dollars even for penny. an interpret service, google fiber, will be austin, texas, the services, get this, a hundred times faster than cable broadband. no word on whether google will be an internet provider or this is just an experiment. the stock up six bucks. online streaming music service, pandora, another milestone registering its 200 millionth user screening 4.5 billion hours of music just in march. the same month the chief stepped down. the stock up 1%. senator chuck grassley joins us on the president's budget. do we have a bipartisan agreement?
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is everybody involved in it or hate it? the senator next.
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stuart: the budget released from president obama so let's bring in senator chuck grassley, republican from iowa, on the senate finance committee. welcome to the program, good to see you again. >> good to be with you, stuart. stuart: we looked at it, there's a raft of essentially tax increases, and on the oared side, there's a change cpi to reign in a little social security benefits in the future.
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we hear that both things are unpopular. can we say this budget is dead on arrival? >> listen, we voted on the president's budget at least two out of the last three years, and in both houses, well, at least in the senate, they were defeated, one time, 97-0 and 98-0. in that sense, it's dead on arrival. is everything in the budget dead on arrival? absolutely not. remember, a president proposes, we dispose. the final judgment is ours. entitlements, it's a mistake just to try to do something for social security that help it for four or five years. we need to look ahead as a trustees do, 75 years, and make a 75-year fix, and the same thing for medicare, and then when it comes to taxes, we should not be growing government. government was 25% of gdp. now, maybe, about 24%, a 50-year average is 20%.
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we have to get that back because when money comes to washington for 535 of us, it doesn't turn over an economy as fast as it does when you spend it, stuart or somebody else in the state of iowa spends it. it turns over more times, and, besides, washington or the government consumes well. doesn't create well. leave the money in the private sector where wealth is created and jobs are created. stuart: any of the tax increases that you could live with? the republicans in the senate could live with? nothing? >> no, no, and the reason why is we have to keep the president intellectually honest. he ran on a platform of increasing taxes. got the tax increases on january the 1st taking care of 6% to 8% of the national or annual deficit. we got to deal with the other 94%, and we got to keep the president honest, and when a president said in the "des
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moines register" to have a dollar cut for every increase in taxes, and it's a dollar increase for every dollar of cuts, never getting to a balanced budget, we ought to expect a president to perform an office according to the stands he takes in the election, and that's what he said in the "des moines register"." stuart: take us think the process. we've seen proposals, now what happens? >> okay. now it'll be split up among maybe 10-12 sub committees, the appropriations committee will hold hearings on it in may and june, and the house will start working on it in june. they'll pass a lot of their bills in july. we take an august summer recess, come back in september, some of those bills may have been considered in the senate. some of them -- but most of them will be considered in september in the senate.
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hopefully, get them down by september the 30th, but, you know, that has not happened in the last ten years. we pass continuing resolutions. we don't get these decisions made until sometimes march of the following year to make them permanent the rest of the year. it's a really long strung out process. stuart: i'm looking at may, june, july, august, september, october, november, maybe eight months into december, maybe even into a full year into next year. who will be on the program for the next year; is that correct, senator? >> listen, i accept the invitation, and i think i enjoy being with you, obviously. stuart: senator grassley, sorry, out of time, but, please, please, we want you back, okay, senator? we want you back. >> thank you. stuart: thank you, sir. now, charles is going to make you some real money. i mean, if you look at the track record with these money making segments, it is spectacular, okay? we have not told you always how
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good it is. maybe we should. today, is it qualcom? i remember them. >> yeah, jacobs, a business hero, not on the political side, but business point of guy, he goes against the grain, and his son works at the company now, a continued business, 3g, 4g around the world, stocks on cusp of a major breakout. a tidbit, 80% of the searches on smart phones are spontaneous and 50% of us use smart phone while we watch tv. the other 50% while we're driving. that was a joke. the stock's absolutely crossed the street. the street's estimate too low. as earnings come out, they propel the stock higher. stuart: we'll watch it. thank you very much, charles. now, maybe you're afraid of flying. maybe you need a mild antian sighty pill to take the edge off. now, in one state, that means you can't buy a gun. does this cross the line of doctor-patient confidentty?
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all rise, the judge is next on this.
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stuart: the big board this morning, read this and smile, ladies and gentlemen. the dow is at a new intra-day high, up 82 # points as we speak, and the s&p 500 a broader market indicator, 500 stocks on
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the s&p, up to a new intro-day high as well. a new fascinating subject. one aspect of the gun debate you don't hear about. police in new york state are suspending gun permits, and they are taking give ups from people who are taking anti-anxiety medication. extraordinary. judge andrew napolitano is here. when i heard this, somebody along the line is breaking confidentiality agreements, there's a breach of privacy here. go. >> federal law prohibits health care providers from providing information about their parties to anyone absent a subpoena or search warrant. we don't have a subpoena or search warrant here. state law in new york requires health care professionals who suspect a disconnect, my word, not the statute's word. i use that word intentionally, between the ownership of a weapon and the taking of
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medication to report that to the police. the disconnect could be they take an antidepressant or supposed to take one and they are not. anything that is out of the ordinary with respect to medication and guns is supposed to be reported. that after reporting, in compliance with state law is a direct violation of federal law. stuart: a clash between federal and state law. zero in on the new state law from governor cuomo. take me through the process. i own a give up, okay? maybe the pharmacist knows i've got a gun. i go in, get my anxiety medication, for example, then what? >> the law imposes a duty on the pharmacist who ordinarily wouldn't know about the gun, but say the pharmacist is your neighbor and he knows -- stuart: he's not allowed to ask -- >> he can, but you don't have to answer. stuart: if you i say you have a new glock -- >> then he knows, and if you are
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taking medication or failing to maintain medication, he is to report that to law enforcement, and law enforcement, on its own, makes the determination whether or not to come and take the gun from you. stuart: okay. >> the act of reporting violates rights protected urnt the u.s. constitution and federal law. stuart: that's the legal position laid out clearly. >> this goes on unless and until someone whose gun is taken challenges the state law, the state loses because the standard answer is federal law is right. stuart: here's the argument. you stand on principle. i tend to look at the pragmatic effects. i say that the one way, the one sure -- not sure, but a way of getting rid of the tragic mass murders is to find out who has got a gun and who is taking medication. >> for your theory to come to pass as a practical matter requires substantial change in
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many federal laws, which is not likely to happen. it would require a change in many federal laws to protect privacy, all kinds of privacy, not just the privacy of people that own guns. of course in the most recent tragedy, it was a stolen gun from his mother. none of the laws would have stopped that. stuart: it's tough. >> a few million people take these medicines, and you have a couple dozen people who commit crimes. to what rights do the couple million people taking these medicines -- >> the new york state law was passed in such haste without any serious study or committee investigation. they just didn't think about the consequences of interfering with federally protected -- >> and lawsuits against the pharmacists and doctors. >> there you go. that'll come too. the lawyers will never stop. that gives you sleepless nights, stuart. stuart: thank you, judge. are you done? you're killing me.
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thank you very much indeed, judge. it has cable tv providers shaking, i don't know about that, but they are worried. people cutting the cord on cable tv. by the end of the year, nearly 5 million people say good-bye to traditional tv. after the break, a company cashing in on this trend. [ indistinct shouting ]
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stuart: oh, ladies and gentlemen, you got to see this. oh, for 82 points, 14 # 755, s&p 500 at a new intra-day all-time high, and, please, oh, can we have the trumpets, please? microsoft -- ♪ thank you, $30 a share. adds you know by know, i own microsoft. numbers show 4.7 million households ditch their cable, but keep their internet to stream movies and tv shows. joining us, his company coulded popcorn flicks allowing people to em online and watch movies for free. gary, welcome to the program. >> thank you. stuart: i got the internet connection, but i don't have cable tv. i sit there, and i dial up popcorn flicks, and i get free movies and watch them on line, is that what you do? >> it's a beautiful thing, and free is ad goo price. stuart: yes, but you don't have the content i want. >> it's different than what you
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want. stuart: it's not netflix. >> at least 5 million people a month want the content because that's how many people are watching popcorn flicks on all the various devices right now. stuart: do you have the capital to buy the kind of content that more than 5 million people will want to see? >> well, fist of all, we have over 700 movies on the site, and we have another 1400 in our library that we already own, and we're acquiring movies every day. stuart: not movies i want to see. >> they are some somebody wants to see. >> 1992 marx brothers is not what i want to see. >> we don't have that. stuart: don't change the subject. my point is this. you are, indeed, the future. i got it. i understand. >> the movies are not for everybody. stuart: okay. internet delivery is the way of the future. i see that a mile off, but you don't have the content. that's the problem. you got to get the money to buy the content that you want, so
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it's an equation, isn't it? getting more viewers, get advertising revenue or however you get money to buy more content for more viewer opinions >> believe it or not, it's dictated not by the content, but it's niche now. for instance, we just went up on xbox, those are gamers. the content i have for those viewers, perfect. stuart: what does a gamer want to watch? >> a gamer is a 25-year-old guy -- >> pore noel my or something? >> not close, but hangover, hangover 2, the most successful r-rated movie in the history of those movies, so, again, it's niche. different movies for different folks. >> even apple and netflix says it's about the content. >> it is, but we're not apple. we're not netflix. we don't have the capital to do that. we're not looking for that. we're free, and free is a good price. it changes the mix completely. stuart: you realize, i have just
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given you a commercial that people like you are killing the cable tv business. >> not going away quickly. look, for instance, i watch "madmen" sunday nights. i'm glued. that's on cable. it's not on popcorn flicks. stuart: will it be? >> probably not. stuart: can't afford it. >> not that, but it's a different model. stuart: that was interesting. i do believe you got a niche there, and i think you're the future. gary, popcorn flicks, thank you very joining us. appreciate it. >> thank you so much. stuart: you know my line, single family home is thee best investment to make right now. time to invest in housing stocks? talk to the woman who runs the newest publicly traded home building companyings and she is next.
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are you still sleeping? just wanted to check and make sure that we were on schedule.
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the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers. stuart: family dollar didn't make as much money as it thought it would blaming delays in tax returns for that performance, and the stock is down 1%, not a big loss. after announcing it would stop advertising on facebook, general motors runs ads for chevy on facebook mobile. it's moving the stock price up 1.37. trip adviser bought jetsetter from the gilt group for 60 # million. jet setter was gilt's private community, exclusive travel deals, and now they are up just 67 cents.
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louisville could not sweep the ncaa basketball title. yukon winning the women's championship to beat the lady cardinals, 93-60. home builder, taylor morrison today. the ceo is next. mowing your lawn isn't always easy. but maybe the problem isn't your lawn. introducing the all-wheel-drive mower from husqvarna. we engineered its unique drive system and dual transmission to handle hills&
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thick grass& and tough terrain& without losing traction or power the all-wheel-drive mower from husqvarna. challenge the impossible. visit us online to enter the challenge the impossible promotion ♪ stuart: hear that song? "ding dong the witch is dead," that song soared to the top of
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amazon's most downloaded charts in the u.k.. of course, it following the death of margaret thatcher. apparently, it was a social media campaign to promote the song to celebrate the death of lady thatcher. i saw that, and i think that is disgusting and appalling. there you have it. totally different subject, charles payne. freeport is his pick to make us all some money. charles go. >> qualcom about to break out. trying to find a site not moving, but freeport i think found a bottom. japanese selling gold, reporting from goldman sach saying gold could hit 1270 next year, and i want people to know that. the large part of the business -- stuart: 1200; right? from goldman sachs? >> 1270. i don't think it goes that low, but nevertheless, the copper side of the business, i think, turned last quarter. the average price went up
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dramatically, demand from china and auto and housing picking up. i love the company and they were 1100% mining this year, and this year, 74% mining, and 26% oil and gas getting into the shale business. that would be the difference maker. stuart: we should listen to you. we should. >> this is one of those to be honest with you. stuart: all right. >> look at the cuff links and the watches. stuart: i got to report that cliff natural resources, you picked it, and, yesterday, it went straight up,. >> a huge session yesterday and will move. stuart: proud of yourself? >> yeah, yeah, i've. doing this -- i spent so much time and effort -- stuart: did it as a kid? >> when i was 14 # years old. yesterday, solar, i had people on first solar 26, and yesterday up to 28. i can't tell you how good it feels. thankstuart: we should promote . >> thank you, appreciate it.
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stuart: we have an ipo for you, home builder, taylor morrison. joining us, the president and ceo of the company, cheryl palmerment congratulations, i know the ipo is trading, nicely higher. i want to know -- am i right in saying that you build single family homes, detached homes, single family; is that correct? >> yes, we do. single family homes across the united states and in canada. stuart: okay. now the word is that there's a glut of those homes on the market, so you think you can sell them nonetheless? >> yeah, i would tell you that there's not really a glut. in fact, there's not the inventory that meets the demand we see out in our communities today. stuart: so, what, roughly 2200 square feet, three bedrooms, two bathrooms, two car garage, that kind of thing? >> we build a number of homes for a number of different consumers, but on averagings that's a good play.
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stuart: where's the best market at the moment? >> you know, we're some of the fastest growing, tough home building markets in the united states today so all markets are doing quite well. certainly, we've seen remarkable trends in phoenix, arizona, throughout california, florida, texas, colorado. it's really pretty consistently across the u.s.. stuart: may i ask the average price of the homes you build and sell? >> last year, average sales price was $364,000. stuart: okay. look, the ipo is off and running, 5% higher on day one. not bad. sheryl palmer, thank you, congratulations, great stock. >> thank you for having us, appreciate it. stuart: a diamond so valuable, i'm not allowed to say what it's worth, but i know it is a special diamond. just look at it. isn't it beautiful? known? we gave people a sticker and had them show us.
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stuart: look at this, please, now at $30 a share. keeps going up, maybe i can buy the diamond we're about to show you. thank you, nicole. ♪ wait a sec, nicole, have you come across any reason why microsoft has gone up so much in the last couple days? because i don't.
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>> kids ask to play xbox every single day of the week, no, that's not it. stuart: there is a new version coming out. >> that's right, on the holiday lists coming up in the fall and winter. you is see it's above $30, up 11%, a clear winner, and stuart varney is happy. stuart: yes, he is. thank you very much indeed. now this. by the way, the dow up 100 points. show that, please. dow up 100 points, 14773. new york's metropolitan museum of art received a collection worth a billion dollars. leonard pledged 78 cue bix works from artists like bicasso and did it, many think, in large part, for tax reasons. okay. i think, well, look, if he donates a billion, he gets a writeoff, i believe, of several million dollars; is that correct? >> yes. >> it's a tax advantage, but he supported the arts for years and
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years. it's too cynical in my mind to say this is something strictly related -- stuart: wonk wrong to say it's for tax reasons. >> he's done it for years. stuart: but it is a good tax break, correct? >> yes. stuart: doing it now because it president obama caps deductions, he would get a lower tax deduction. >> i guarantee in the future he'll do more. this is not the last moment of jen generosity from this guy, and people look at it the wrong way. stuart: you think i'm looking at it the wrong way, i know you do, charles. >> but there's people more cynical. stuart: i'm not a sippic, absolutely not. laming, i got to break away. something special, please, look at this. we have a diamond for you, mined -- looked at that, mined 300 years ago, cost so much money, we're not allowed to mention it for security reasons.
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joining us is raul. you've been on many times, probably the finest item brought to us. >> one of the best offered for sale. stuart: explain where it is special. >> it's a region in south central india where diamond mining began for the first time ever over 400 years before christ. it's the oldest diamond mined, and it stopped producing towards 1700. this is the oldest tracked of diamond mines that man has ever known. stuart: there's no more like this mined? >> there's no more, well over 300 years ago. stuart: rarity value. fill the screen. that is a pink diamond; right? >> yes. stuart: carot? >> 35. it's available for sale today, the largest on the marketings because there's two larger
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diamonds that belong to the crown jewels of iran, which, i don't think are coming up for sale. stuart: probably not. there's one in the crown jewels of britain, i think? >> one of the most famous white diamonds in the queen mother's crown. stuart: and you'll auction that diamond next tuesday? >> tuesday, april 16th. stuart: in new york? >> in new york. stuart: people bid from all around the world? >> i hope so. stuart: going to do for a lot? >> priceless. reporter: last one sold for 21 million? >> the joseph dime, the best white diamond sold in gee knee that. stuart: we wish you well. it'll do well. it's beautiful. thank you so much for being here. >> thank you, happy to be here. stuart: huge number of security people can now relax because i'm not giving out the price. thanks a lot. appreciate it.
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the highlight reel is next.
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the two big day, pick shall, big highlight reel. >> we invited by the cabinet officials to come today to talk about this pipeline permit application. they refused to come. stuart: i am sorry. i did not mean to call you names. there is no way you will stop this oil from coming out of the ground and being used. you are totally wrong. that is irrelevant. >> you are wrong, to. stuart: i know. cipher is expected to drop 9%.
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>> they did to budget cuts and fiscal responsibility and did it right. it is bad for them, but they will get through it. stuart: beyoncé and jay-z, their trip to cuba was educational. charles: i thought it was a cultural exchange. either way, they got the nod from the white house. i hope it did not cost us too much money. stuart: connell, it is yours. connell: thank you very much, stuart. we have breaking news this hour. president obama got any moment now, literally, we'll talk about his budget proposal. the president just come out of the oval office and is approaching the microphone. here he is. >> pleas p

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