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tv   Varney Company  FOX Business  April 29, 2013 9:20am-11:01am EDT

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♪ he stopped loving her ♪ ♪ and they'll carry him away ♪ ♪ he stopped loving her today ♪ ♪ imus in the morning ♪ >> oh, watch that market open, watch your stock go up again, yes, a new week opens, yes, we have another rally. good morning, everyone. not just stocks, gold is up more
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than 15 bucks, oil is up and the dow will open 40, maybe 50 points higher. it's close to another record. why? profits, maybe. money printing? oh, very likely. remember, we have a weak economy and we're headed for a weak jobs report on friday. so, ben keeps printing, and stocks keep rising. but we do have some outrage for you. the obama team is urging illegals to sign up for food stamps for their children. they are told, you don't have to say you're illegally here, all right? "varney & company" is about to begin. ♪ [ male announcer ] this is karen and jeremiah. they don't know it yet, but they're gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid osalary, not commission. they'll ge straightforward guidance and be able to focus on other things, like each other,
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>> yes, we are going to get a value rally. here is your monday morning outrage. the usda now pushing food stamps for illegal immigrants. check this out. this is a spanish-language letter and underlined and in
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bold, the key phrase. the translation of it, you need not divulge information regarding your immigration status in seeking this benefit for your children. look, we're at record levels for food stamp use in this country and this is just another reason why. nearly 48 million now in the program and it's growing to the tune of 80,000 a month. no sequester cuts here, we're not done with this story, much more coming up, let's move onto the corporate front and boeing 787 dreamliner back in the the air. ethiopian airliners putting in service today. and china is expected to okay the dreamliner in may. all 787's were grounded in january for battery problems. let's see what happens to the stock today when it opens. how about this? spring, yeah, it's here, but it might not feel like it. snow is expected in parts of the country this week, yeah, really. and real science is reporting this: it is the second coldest start
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to spring in u.s. history. 1975 was the only year with a colder start. according to the national weather service, march was 13 degrees colder this year, compared to last year. and by the way, russian scientists say the earth is in a cooling period, new ice age. that is our global warming wrap-up for today. brace yourself, an internet tax looks likely and even amazon supports it. you might be be surprised why they're doing that. we will tell you. "the washington post" says the republicans are now pushing tax reform instead of and ahead of reining in entitlements. what do we think about that? art laffer is coming up and i'm sure he likes it. we're watching the rally monday morning. watch it happen live here. the husqvarna all-wheel-drive mower is here. engineered with a unique drive system and dual transmission. all-wheel traction. all-wheel power.
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it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or lo in vision or hearing. this is the age of ting action. viagra. talk to your doctor. >> oh, good morning, i don't want to sound like a broken record, but i know i do because stocks are going to go up this morning. and scott shellady, out there in chicago, weak economy, ben prints, stocks go up. anything new? >> we're going to talk about the job numbers on friday and i think it's about the ecb this week and whether they cut rates and i think most expect they will. it's given a boost in europe and
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even italy borrowed money today. with that feeling around, that's got stocks on the upswing. >> you're trying to tell me that the europeans are now affecting us, really? >> well, i can sense the sarcasm, but they have for three years and add one more thing. [bell ringing] with the all-time record highs in food stamps and all-time highs in the stock market, something doesn't add up there. stuart: fan you should say that, now there's a broken record. thank you indeed. the dow is off and running, we're expecting a gain of 40, maybe 50 points and all the indicators pointing higher yet again it monday morning. not sure how many points away we are from the all-time high, but we're getting close again and now we're up 26. here is why amazon supports the internet sales tax, it will not allow the tax to music downloads or books. that's truly digital commerce, it's not going to be taxed and nicole, i don't think that's having any affect on the stock, but where will it open? >> ultimately good news for
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amazon and i saw it going back and forth over the unchanged line, it's a name that hasn't gone up well. but it's interesting after they came out with the quarterly report we had so many of the analysts with price targets above $300. and baird 325 and evercore a price target of 330. and there's a lot for upside potential. stuart: and amazon has done well the past couple of years. and ethiopian started flying a dreamliner and the jets were grounded for that battery problem. look at the stock, it's actually down this morning and reached 93 late last week and boeing is a dow stock so that's a slight drag on the dow this morning. we've got another big name, you know, it's fair and balanced.ce millions per month and facebook shares are up 1% this morning,
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despite that news. 27 facebook right now. >> and they'll vote on the internet sales tax forcing on-line retailers to collect state and local taxes for on-line purchases and that money would then be sent to the state where the buyer lives. art laffer is here, just another tax, isn't it? not a good -- i can't believe you would be in favor of this tax. are you? >> well, not as a stand alone, of course not, stuart. what i would like to see, i'd like to see a broader sales tax base and lower rate. in that sense, i think they should do it by lowering rates on the rest of the sales to have the static revenue neutral and that's the right way to do. low rates, flat tax and that's the way that states should go for prosperity. stuart: but your argument against taxation or raising taxes has generally been, it takes money out of the private sector and stakes it with the government and that's bad for the economy. >> yes. stuart: what's the difference
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with an internet sales tax? it takes it out of the private sector and gives it to the public sector, doesn't it? >> in all truth, all taxes are bad and some are worse than others. what you want to do on taxation, use the least bad taxes as your tax base to provide the services for state and local governments to do. sales taxes are one of the least bad taxes. property taxes are also some of the least bad taxes, income taxes are killers, what i'd love to see them do is lower the sales tax rate and broaden the sales tax base by allowing internet sales and use the proceeds so it's static revenue neutral. that's the right way to go and in the long run, i think that's the way it's going to go. >> art, listen to this. it's a headline from today' "the washington post," g.o.p. moves away from entitlements and towards tax reforms in a budget deal. now, do you think that's going to happen? are we going to get that, do you think? >> i surely hope so, you know,
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going after entitlements when you've got an economy like this is very, very difficult, stuart. i can remember back in 1979 there was a dinner party and governor reagan was there, and we were talking about the future and how to do tax cuts and i was talking a lot of heat from the rest by wanting to cut tax rates first. when you have economic growth you can cut spending much more easily than when you have a high poverty, like it is with obama. i'd rather go the low rate, flat taxes and economic growth and then cut spending and bring it back under control. i think that's the politically easier way to do it and also better way to do it from the standpoint of economics. stuart: i agree with you, i don't think it's going to happen. i can't see what mechanism would force this president or persuade this president to lower tax rates. the very thing he hated more than anything else. >> yes, that's true. and you probably won't with this president. but you know how long it takes ahead of time to set the stage
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for a major tax reform, let's say, in 2017 or 2018? we started with kemp ross, which was then in 1972 and we didn't get it until 1981, setting the stage with this debate with simpson bowles and that's the way to do it. lots of democrats would love to vote with us on lowering rates and broadening the base, lots of them would. we need to build the political base in obama's absence. >> are we therefore condemned to bumbling along the bottom, 2, 2 1/2% growth. >> yeah, he's president and i don't know what to do about it, stuart, he's president for the the next three and a half years and he is diametrically opposed
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to everything. >> there's no choice, but for ben bernanke to print money. and it's going to stay relatively high, unemployment, he keeps printing, isn't there a big downside? >> a huge downside, but he's already done it. if you look at the unused reserves, unhe required reserves, it's amazing how much they've expanded, stuart. going back a little for ben bernanke won't solve that problem, it's a huge problem right now and i am sure that he's going to continue along with obama for the next three and a half years. i hope he doesn't, but he will. stuart: would you invest in stocks today? >> i think the political future of the u.s. is better, more attractive today than it's been in years and years and years, and yes, i would. stuart: oh, all right. art laffer. always a pleasure. >> stuart, loads of fun. in three years. >> these are serious issues and
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we've got to set the stage sometime. stuart: all right, thank you, sir. here is a number for you, the irs collected 5 1/2 billion dollars in back taxes from americans keeping money in off-shore accounts. that doesn't cover half of the 13 billion dollars the irs overpaid from the earned income tax credit in one year, remember, it is your money. coming in from americans with tax -- with secret accounts overseas, going out in the earned income tax rate. and program, i should say. and to nicole, what's this? disney, new high? >> what's this? disney again, new high? again and again and again, so many times this year, and this weekend was the launch of iron man 3, it's so well surpassing the estimates and got off to a great start, grossing $195 million, actually beat out what avengers did on its launch. avengers went to take 1.5
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billion dollars worldwide and disney settled some disputes with some of the movie theaters going into this weekend and that's why you've seen the stock at all-time high 62 for disney. and move on to tenet health care. nicole: it's up about 11% this morning on news that some of the government health insurance plan is doing for seniors. .8% increase in hospital payment. good news for tenet health care and hba holdings and both moving to the outside and hda at a new high and tenet double-digit. stuart: that's a winner for obamacare, i guess you could say. all right, nicole, thank you very much indeed. just last week senator harry reid said that budget cuts would prevent researchers from finding a cure for cancer. and even aids, but now, a new report suggests we could be on the verge of a cure for hiv. we bring you the headline and
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the full story coming up at the stop top of this hour. the 7 early movers, j.c. penney has a commitment for 1 3/4 billion dollar loan arranged by goldman sachs, and up 17.47, another 2% up on j.c. penney. did you buy name brand or generic drugs at the pharmacy. valeant up in talks. and activas. and hotels, higher profits at the industrial products maker eton, sales disappointment and up 2 bucks on eaton. and penske auto group runs car dealerships, 30 bucks on penske. and j.c. penney names matt
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zames, as the former leaves and he's going to run first data corporation. the dow is up 20 points. we showed you this at the top of the hour, a flyer produced by the u.s. government that advertises stood stamps for illegal immigrants. how do you feel about that? eric bolling is here next. clients are always learning more to make their money do more. (a) to help me plan my next move, i take scottrade's free, in-branch seminars... plustheir live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies."
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>> it's modest, but it is a rally. okay, it's modest. up 18 points on the dow and well above 14-7. the new york jets released tim tebow. in total the jets paid out 4 million dollars for one year with him. 1 1/2 million salary, 21/2 million to the broncos for the trade last year. they didn't get much production, the whole thing was to some a disaster. eric bolling is here with a quick reaction on where he will
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end up? >> i don't know, he's got a tough road because the jets didn't use him properly. they could have put him in a little bit. maybe get mark sanchez a run for that and i'm not sure what the o experiment was, maybe it was just promotion, i guess. and then they may have gotten their money out of him. stuart: at the going to canada? >> i don't know where he's going. i don't know if he's got a future in the nfl, a great guy. stuart: that bad? >> maybe canadian football, who knows? do they play football there. stuart: dramatic news this monday morning from eric bolling. we told you at the top of the hour on the show, a spanish language newspaper from the usda, america's agriculture department says there's no need to declare your immigration status when you qualify for good stamps. as i see it, the government is pushing food stamps for illegal immigrants. eric, am i way out of line? >> i couldn't believe it when you sent me this. this is a document from the usda, it's a flyer they sent to
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the mexican embassy and says [speaking spanish] >> you do not need to divulge information regarding your immigration status in seeking this benefit for your children, that bold print, to the mexican embassy, which means there are mexicans who are basically saying come on over, it doesn't matter if you're legal or not, you can get food stamps for your kid. stuart: and not subject to sequester cuts, if you qualify you get them. let's move on to deval patrick, governor of massachusetts, on privacy ground we're not going to tell you whether the two terror suspects, the one killed and one in the hospital, we're not going to tell you how much government assistance if any they were receiving. >> the speculation, he really needs to release it. when you kill people and blow people up in a public square, you lose your privacy rights in my opinion, all right? so dzhokhar, sitting in the hospital or a military hospital and tamerlan who is dead now,
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tamerlan, his wife and child allegedly got assistance, welfare payments. the parents of these two bozos, these two clowns got welfare payments, and maybe dzhokhar did as well. he had some sort of a scholarship, i'm not sure where it came from. are we protecting the privacy rights of two people who are murderers or dead or going to be dead? >> well, the governor of massachusetts deval patrick says yes, privacy rights. >> i don't know why. stuart: i think because they're embarrassed, embarrassed by the extension of our handout society and the idea that american taxpayers may have subsidized terrorists in our own midst. that's a profound embarrassment. >> so, the push is to list the names of everyone who is a legal gun owner, but let's hide the identity of those who have taken assistance, a, number one, and number two, taken assistance and kill people after that. i think you lose your privacy right when you violate, break the law.
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stuart: you're the guy who really pushed this idea that our society is split between the makers and the takers. i think that was your expression after that. you've got that. and i don't see any change in that. >> it's because the makers aren't vocal enough. the takers want it, get it, listen, you don't have to be a legal immigrant to get food stamps. the takers are aggressively taking. and the makers aren't loudly saying, no. no more, no mas. you have to be a legal citizen of the united states to get welfare. we're working hard, we're paying our taxes, you can't just take our tax money and throw it where you want. the makers have to be more vocal and this one is a big one. stuart: and-- >> deval patrick needs to divulge what kind of assistance they were getting. because we pay the taxes. those are hard-working taxpayers who funded these people's life style to turned around and jihading, blowing people up.
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stuart: what a way to start a monday morning. appreciate it. time for gold reports, i know we're up, but how much are we? just $9 now and we were up about $25 earlier. maybe that's got something to do with the syrian situation, but 1463 on gold. serious situation, now? the dollar, what's making gold go up? >> i don't think that gold is going up. i think that gold is reactive and i think that things are getting better. when things are better gold doesn't get better. stuart: we should talk. thanks, eric. you really can't make this stuff up. a chinese electric bus company is setting up shop in california and wants the u.s. taxpayer to subsidize it. cheryl casone, charles payne here, they react in a moment. ♪
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>> a chinese company will open an electric bus factory in california and it wants the u.s. government to subsidize the sales. the company is allowed to
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receive the government aid because its production facility meets guidelines. the majority of the parts are made here in america and final assembly in california. charles, i suspect they're gaming the system. charles: sure, they're gaming the system. this is a byd, the company became popular years ago when warren buffett took a gigantic steak in it. stuart: hold on. byd is the company buffett has had a stake. charles: became popular on wall street. and you've got the municipality that's going to opt in for the electric buses, getting federal grants, local grants, obviously, a smart move on the company's part, but whether it proves out longer terms, but taxpayers, this is what our money is being used for and that's the thing that's disheartening. to let a chinese company, come into america and set up shop at
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the expense of people watching the show. >> if you're in california you're thinking the chinese company is doing it cheaper. charles: but they can do it cheaper there and ship it over. >> the actually, i think it's the wrong move here is made by the state of california. they're trying to do these electric vehicle stationses and get rid of gasoline, have electric cars going all over that state. this is the largest economy in the nation and californians love their cars, and high speed trains. california makes green mistakes. everybody wants to breathe cleaner air, but they're putting taxpayer money at work they cannot afford right now and again, i think it's another mistake and i think they're going to get burned. >> let the market work. if it's such a great idea, mr. buffett, you fund it. why don't you. why do i have to fund your good ideas? >> a lot of it seems to get funded and ge stuff gets funded and previous in the administration. >> that's how it works.
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>> all right, less than a week after harry reid said the sequester cuts will cost us a cure for cancer and aids, researchers in denmark say they're close to a cure for hiv. a senator, who do you like in the fourth race of that? sarcasm is bad. that starts a brand new hour of "varney & company," here it comes next.
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stuart: here we go.
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a new hour of "varney & company." it is monday, april 29. researchers say we are close to a cure for hiv. novartis under investigation. did they try to buy doctors with trips to hooters? bernanke. what happens if he keeps on printing? david stockman says disaster either way. your 401(k) looks better. ♪ stuart: when bernanke stops printing, the party is over. this is a man who said ripples through the financial universe. his name is david stockman. welcome back.
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>> thank you. stuart: that dow is up for 200,050. if bernanke heads he is stopping printing money, we go straight down. if he keeps on printing, we have a different crisis and the market will go down. >> yes. they have the money market rate at zero. they have managed and rigged the entire yield curve. nothing is real out there. now the speculators are basically say as long as the fed can hold the bond price of and keep shoveling out free overnight money, it is safe to get in the trade. they are not there to own it, they aren't there to rent it.
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stuart: bernanke and he will stop printing or some kind of financial crisis because he is printing so much. >> you cannot predict these things. they are like black swans. you can disable the interest rate mechanism of the financial market. everything is trading again so what the is doing. we have subprime auto bubble,
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risk assets are in a bubble, when all of this generated by policy. it is so far off base. you do not know when confidence will print. when it does, thinks will unwind very rapidly. stuart: paul krugman won a nobel prize for economics. this is no time for austerity. you have to spend more. print more, spend more. is he so totally wrong? >> i think he is totally wrong. the economy is actually failing. the regrowth rate of our economy has been the lowest since the civil war. the medium income is down 8% since 2000. what we have is a fat that creates serial bubbles. all of this creates the
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appearance of prosperity temporarily. then they come back and say let's do more of the same. >> what is there is a happy medium? your warning. what if there is a happy medium? >> when you have a trillion dollar market that are entirely an artifact of manipulation by the fed, perceptions about that, these are not stable, healthy financial markets. stuart: you made money in your career. what are you doing with it?
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>> i am doing the same thing that the fed is telling millions of sabers in this country to do. it is so wrong to have 12 people on the monetary bureau saying that you are going to be punished if you are prudent and you save and you want to remain liquid. we are commanding you put your money into the russell 2000 or some other risk asset. stuart: are you happy that you have become the ultimate doom and gloom are? >> this is a dangerous thing to be doing. it is unnecessary.
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stuart: you are also saying there is no way out. >> i do not know how the fed gets out of this corner. the bank of japan is absurd. >> they have gone further. charles: what about the 95% of americans that need to do something for retirement? what about real life? people who would like to make some appreciation on their investments. >> they were told in late 99 and 2000 got hammered. 5 trillion worth of stock value loss. they were told it was safe to come back in. they got hammered and housing.
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then they went into the stockmarket and they got destroyed. many of them are just now crawling out of the cave and they are being lured back in. it is not worth -- stuart: those are fighting words. [ laughter ] charles: if you do not think ibm is a good company, do not invest in it. stuart: we are out of time. we appreciate it. >> thank you. stuart: let's check the big board. we now have a rally. gold is higher. it is up $12. we have microsoft. i also microsoft.
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i have to tell everybody every time i mention the name of the stock that i own it. nicole: celebration time for stuart varney and although microsoft shareholders out there. it is up almost 2%. we are awaiting eagerly the new xbox. the unveiling is on may 21. you should -- you know how when the football player score a touchdown they do a dance, you should have a microsoft dance. i also think you should have a pop-up bubble. then you don't have to say it all the time. stuart: i want to move onto apple. they are up seven or eight dollars today.
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talking about a nice liquidity, cash cushion. that is good news for apple as well. they did well. the sales were okay. stuart: i am going to do something that is completely different. i am going to get a weather report. maria, welcome to the program. all i want to know if this box where in the united states of america is a going to snow this week, the first week of may? >> believe it or not, it is going to snow. across parts of the northern areas and across the washington cascades.
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some of these spots could be looking at six-12 inches of snow. overall, though, relatively light amounts. three-6 inches. stuart: the northern tier of the country, i understand that, this is surely very unusual for the first week of may. >> yes. very unusual. what is also unusual, how cold it has been.
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flooding is now another concern. we are expecting another round of it as it continues to melt. stuart: maria, thank you very much indeed. let me show this into the global warming mix, if i may. russian scientists say we could be in for 200 years of global cooling. the climate change people, they have it both ways. everything is cooling down, that is climate change and it is because of global warming. they cannot lose. >> the data has been so unreliable. weather patterns cannot be predicted. i just do not believe that scientists truly know. charles: i do not know that this data has been unreliable, they
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can take the data want to use. you can pick the last 20 years if you want to prove a point. you can pick the last 8000 years if you want to prove a point. for every new high, there were 27 new lows. what they have massaged is the pr aspect of this. global warming, global change and now extreme weather. >> remember how hot it was last year across the country. stuart: do you think that you could get a job in a university in europe or the united states in the climatology department if you were a global warming skeptic? i do not think you could. charles: i think you better leave that off your resume. stuart: i am not looking for that kind of job. how much the doctors care about
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patients? according to a lawsuit filed by the permit, that care amounts to a plate of wings at hooters. doctor marc siegel is next. and this from senator harry reid. >> the sequester could also cost the country and humankind, a cure for aids, parkinson's disease or a cure for cancer. ♪ but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i'm meredith stoddard and i helped create the fidelity guided portfolio summary. it's one more innovative reason
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stuart: new independent shows facebook showing losing and its biggest market. 6 million facebook users in the u.s. left the site. the stock price not affected at all. in fact, it is up 1.5%. boeing reminders up once again. boeing is down a little bit, though. jcpenney shares up a little after announcing a $1.75 billion loan deal with goldman sachs. we are keeping an eye on the dow this morning. right now we are up 51 points. doctor siegel is here. ♪ it's monday.
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you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week. stuart: have they been bribing your doctors? a kickback for doctors in exchange for prescribing their drugs. doctor marc siegel is with us. this is all about salesmen. >> let me be clear, stuart, there is something called the anti-kick back.
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it basically says if you have a dinner and at that dinner doctors, and you have an expert giving a talk about a class of drugs without preference, that is okay. that is not what we are talking about here. taking doctors to hooters. i do not think they are talking about drugs at hooters. that is not legit. the feds are also checking to see if these strips are prescribed more as a result. that is a little hard to prove. i have to tell you, i have a problem with all three of these drugs. one of them was taken off the market two years ago. they are what are called combo drugs. two drugs in one drug. i do not usually prescribed drugs like that. i cannot tell which drug is doing what.
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novartis may be saying it is not what they wanted to be so let's take them out. stuart: drug companies are not pushing drugs overly heavily towards doctors so that they will prescribe them. >> i did not know that you thought the government had a legitimate function. you are absolutely right. i have had previous suit about stuff like this. i think this was a rampant cultural problem. some pretty girl goes to her office, buys them a free lunch and then expects you to buy the drug. at a time, of course, where obamacare is causing austerity. stuart: do people contact you and say i am from so and so, let's go out to lunch. >> there is no question about
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it. they have been doing it for years. they will continue to do it. >> do we have no faith in our medical professionals anymore? do they think a lunch at hooters will get them to prescribe their medication? >> you are right. doctors can be savvy enough to say, here is a free sample, here is a free lunch, but i stick to my prescribing benefits. it is reprehensible for a doctor to be succumbing to this. stuart: do they give you free samples? >> absolutely. i give them to poor people who cannot afford the drugs. >> they have scaled back.
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i am surprised to still see some of this going on. stuart: that was 2012. >> these practices are still going on. charles: really quick, has this faded because now they are advertising directly to the consumer on tv? >> that is an excellent question. some of the budgets are 16%. i think it is hand-in-hand. i do not think it is one or the other. stuart: we should stop the advertising of drugs by drug companies on television. >> no. i do not think so. it is a free enterprise.
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stuart: viagra has been on countless tv shows and networks. [ laughter ] stuart: the man who founded the $0.99 only store has died. he took the dollar store concept and made it bigger, brighter, more organized. when he opened his first store back in los angeles in 1982. he sold his company in 2011 for $1.6 billion. he was 86 years old. ♪ you make a great team.
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stuart: the start of the show we said welcome to our monday morning were the market goes up again. we now have a 65-point game for the dow. charles is going to make even more money for us. wait for it. listen to this stuff that he likes. winnebago. ♪ stuart: people make a joke out of me getting a winnebago and traveling across america. charles: you should. [ laughter ] charles: do not drive it with flip-flops.
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[ laughter ] charles: this week, harley-davidson reported tremendous numbers. stuart: what? the people who buy winnebagos are the same people who buy harleys? [ laughter ] charles: the management says that their motorhome sale continues to outpace industry. let me tell you, i like this stock so much. i feel great about it. i try not to go off too much. i just think that this name will be a gigantic winner. stuart: would you ever buy a winnebago and travel across the country? charles: i do not know. i did it once. i rented one for a week. a state trooper stopped me and he looked up at me and he just
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said "pick a lane" and he walked away. this thing was a beast. [ laughter ] >> they are nice. we have had a few outside of fox business. stuart: i am not knocking it. i am just intrigued that charles likes winnebago. the family of michael jackson reportedly seeking up to $40 billion from the entertainment company aeg live. they are asking for compensation that jackson would have earned over his life if he would not have died. judge andrew napolitano is here. the family said, you, aeg killed him. it is your fault that died young. >> that is the argument of the estate lawyer.
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the lawyer for his mother and children. the aeg lawyers will say michael jackson was killed by a criminal act. how do we know that? because a jury decided that conrad murray committed a crime. >> wait a second. the trial starts today. those motions to throw it out failed. >> yes. the argument was made pretrial months ago by the same lawyer that will make them again to the jury in an effort to prevent this from going to a jury. clearly, one of the most pro- plaintiff in the united states of america likely pre-exposed to taking wealth and giving it to the jackson family. stuart: they will marshal a whole superduper team of lawyers that will press this case
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forever. is there a direct attempt to bankrupt aeg? >> i do not know. 40 billion is awfully extreme. it is an extraordinary amount of money. i don't think he possibly could have learned $40 billion. these are things that a jury will have to sort through. >> they own 100 facilities. this is massive. charles: yes. >> a grossly exaggerated claims that this corporation is somehow responsible that michael jackson died when he ordered and bagged his doctors to do for him.
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stuart: the fact that it has not been thrown out from the get go is a disgrace. we brought our viewers the story early this morning that the u.s. government is advertising to illegal immigrants, and spanish, hey, you can get food stamps and you do not have to tell the authorities that you are illegal, undocumented. what is your answer? >> regrettably, that is the law. the very same government is enticing them to come here as a legal so they can get welfare. i will tell you what the supreme court has said. if the government offers a benefit, generally available, like education or food stamps,
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it cannot deny that because of your place of origin. the law as it presently stands is, if you are here -- once you are here, whether legally or legally, if you otherwise qualify for the benefit, the government cannot deny it from you because of how you got here or where you came from. stuart: okay. judge napolitano, thank you very much, indeed. cigarettes. a really big business. one of the regular tobacco companies is jumping into the middle of it. we have an e cigarette cheap. is he getting ready to sell? that is next. ♪ (announcer) at scottrade, our clients trade and invest
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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 cnged: the official retirement age. ♪ thquestion is how doou make sure you have the money you need to enjoy all of these years. ♪ ♪ stuart: i bet you are not expecting this headline. italy is facing a shortage of pizza makers. pizza sales in italy booming. got it. thousands of people are unwilling to work the hours.
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very interesting headline. the largest u.s. tobacco company alternaria has announced it will and the e cigarette market later this year. what does that mean? let's ask logic technology chief. i think this is his third visit. >> that is correct. and e cigarette is -- >> and electronic vaporizer that delivers nicotine and there is no secondhand smoke. stuart: there is no tar, no smoke and no smell. >> exactly. it is made for users that smokes tobacco. to make the switch. >> you are the number one electronic cigarette company.
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if your products are on the shelves at a given store, more of your product is sold then any other e cigarette product. >> that is correct. we rank number one. stuart: that makes you extremely valuable. >> we work hard. we did a good job. stuart: you know this story. laura life, huge regular tobacco company. they paid $135 million. i think the companies name is blue cigarette. 135 million. you are bigger than blue.
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i bet you are worth at least a quarter billion dollars. you would not sell for 250 million. >> i would need to discuss the numbers. we are focusing on selling the product and building the brand. we are excited. stuart: you sit there and you dream, 400 million, 500 million. >> in five years, it will be a $20 billion industry. even if i have 10% of the market. stuart: you are dreaming way down the road. [ laughter ] stuart: it is just you and one partner. >> that is right.
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stuart: when regular tobacco enters the market, walt cc cigarettes be subject to taxation? >> getting into the industry, the big tobacco companies, we take off, we land. it does not matter who can fly the plane. there is so much behind the industry. stuart: they would buy you and give you gold to make sure you keep running the company. >> i don't think so. i do not want to reply at this time.
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stuart: it is okay. we appreciate you being with us. we will watch this very carefully. our company is trying to get into it. that is what makes you so valuable. the big guys want him. that enhances your value. >> i need to answer to my partner and to my wife. [ laughter ] stuart: thank you very much, indeed. >> my pleasure. thank you so much. stuart: it would not be the start of a new week if we did not have consequences from obamacare. the dow is up 67. ♪ you hurt my feelings, todd.
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i did? when visa signature asked everybody what upgraded experiences really mattered... you suggested luxury car service instd of "strength training with patrick willis." come on todd! flap them chicken wings.
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[ grunts ] well, i travel a lot and umm... [ male announcer ] at visa signature, every upgradedxperience comes from listening to our cardholders. visa signature. your idea of what a card should be. ♪ stuart: is this the new normal for the price of regular gasoline? $3.50 a gallon. we have dropped to that level, holding at that level. oil prices are going up. will we found that from here? the new regular normal is $3.50 up. an interesting story. pending home sales are up this morning. up 1.5%. up 7% from last year. prices continue to rise.
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take a look at the dow rally. sixty-three points higher right now. tim tebow ended his one year career with the new york jets when they release them. he joined the jets 13 months ago. next, a small business owner. the real impact of obamacare. ♪
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stuart: we have a report that lots of users are leaving facebook. i believe facebook stock is higher today.
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let's go to nicole petallides. nicole: it is terrible news. users are leaving facebook. some of the young people think it is so yesterday. they are so done with it. they are all on instagram. it is still to the upside. that is good news. stuart: maybe they have a way to monetize. thank you very much, nicole. we have had a lot of guest on our program that tell us what will happen to their company when obamacare comes along. our next guest is part of a chocolate and candy making company. we want to know, sir, welcome to the program, what is the first thing you will do as you see obamacare coming at you?
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>> the first thing we have done is studied the laws and done our best to stay on top of it. the most difficult aspect of it is the uncertainty that it brings. stuart: will you put more people as part-time workers, less than 30 hours a week? how will you cope? you now have to provide medical care coverage insurance. what will you do in that regard? >> well, we have been providing healthcare for our employees for 30 years. even in the early years will be could not afford it. i do not see that changing. the only thing changing is perhaps the law may take some of the freedoms away. stuart: will the costs go up?
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>> health care typically up any given year. it is just a difference of a single or double digit event. this will continue to put pressure on the cost. stuart: what about the uncertainty that you are talking about? >> we are uncertain as to all the moving parts and even our employees are uncertain as to the choices that they will have. stuart: a lot of people are looking at this as a mass. what do you think? can you cope with this? >> y this. it will be difficult. this is changing america in a very dramatic way. as a business, we press on.
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we go for more sales. we drive the business. we grow. we find a way. we are not ones to rollover. stuart: we see that. thank you for being with us today. >> thank you. stuart: speaking of healthcare, i want to get the company's response to this. >> the sequester could also cost the country and humankind a cure for aids, parkinson's disease or cancer. stuart: danish researchers could be close to a cure for hiv. close to it, they say. it depends on how you look at it. they are danish researchers, not united states researchers. stuart: harry reid comes right out there on the floor of the united states senate and says sequester cuts will doubtless
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getting a cure for cancer, parkinson's and aids. >> not true. you can make the argument that overseas companies because they will not be under the regulation that is coming in this country can do more. stuart: you make that argument? >> i think you could. i think it is possible. yes. charles: there is no room to cut government spending. the bottom line is, if you look at all the patents for aids research, i see all kinds of patents. the bottom one is, it is the private sector. that is the moral story.
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such a powerful position. it is amazing. it is hard to believe that this guy could be in such a powerful role and stoop this low all the time. stuart: thank you very much. i have been invited, but i have never attended did not my style. my take on the white house correspondents dinner is next. >> look, i get it, there are days that i look in the mirror and i have to admit i am not the strapping young socialist that i used to be. [ applause ] ♪ 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. it's all part of our goal to execute your trade in one second.
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♪ stuart: i have been invited, but i have never attended. it is not my kind of thing. frankly, these days, i would not be caught dead. it was friday night in washington, d.c. the president delivered the keynote speech. he was funny. the whole evening seems to have gone over the top. it was a mismatch of politics style and the media.
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why was a kardashian there? why was lindsay lohan there? do they have anything to do with white house correspondents? i think not. it tells you a lot about the influence of celebrities on the news. i have had enough of opinions on hugo chavez. must we now suffer through a kardashian opinion on the budget? what is with all that this forced humor? it should be a dull affair. far from it. i just think that recently things have gotten out of hand. it looks forced. i find myself in rare agreement
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with tom brokaw of nbc. white house correspondent should not be looking to the president for jokes and the white house should not mean itself by inviting celebrities known only for their outrageous behavior. ♪ for seeing your business in a whole new way. for seeing what cash is coming in and going out... so you can understand every angle of your cash flow-
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last week, this month, and even next year. for seeing your business's cash flow like never before, introducing cash flow insight powered by pnc cfo. a suite of online tools thu turn insight into action. stuart: the dow is rowling for
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one reason. bernanke is printing money. i am right, charles payne is wrong. why is the dow of 75 points? charles: these companies are doing very well. stuart: nothing to do with bernanke printing money? charles: maybe a little. >> scratch your head all you
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want. stuart: dagen and connell, it is yours. connell: thank you for joining us. i am connell mcshane. dagen: i am dagen mcdowell. cofounder and ceo of the agency. connell: tim tebow waived by the jet today. anybody want to buy a tivo jersey? those stories and more coming up on markets now. ♪ connell: i do not want to buy in new jersey, but that is a whole another story altogether. my son has

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