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tv   Varney Company  FOX Business  September 26, 2013 9:20am-11:01am EDT

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♪ ♪ imus in the morning >> you've got to follow the money. you've got to follow american technology and now, it's twitter leading the way. good morning, everyone. watch anything, anywhere, anytime. twitter joins that club with a nfl deal. highlights, scores, all games wherever you are. twitter is monetizing its product right before it sells shares to the public. big money. attorney general eric holder wants really big money from j.p. morgan, 11 billion dollars. we're calling this a shakedown. yes, says the president. i did raise some taxes and now
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he tells us. just as tax revenue hits record levels, president obama wants more. cheer up. it's only four days until the cost of health care goes up for everybody. "varney & company" about to begin. thank you orlle and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.
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>> president obama finally admitting that your taxes will go up to pay for obama care. ladies and gentlemen, here it is. >> so what we did, it's paid for maya combination of things. we did raise taxes on some things. stuart: oh, yes, you did. and here is where you will be paying more. right off the bat, 2013, 2.3% tax on medical devices. higher medical bills tax deduction and 10% under obama care. a cap on pretax spending accounts and that represents a tax increase. 3.8% tax on income on households making more than 250
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grand. all individual income over 200 grand and the big one kicks in next year. the individual mandate sur tax. and a mandate imposes $2,000 per employee penalty with more than 50 people who do know the provide health coverage. we're saying all along, it's going to cost you and now that it's here, the president is admitting it. 67 million dollars is missing from what some say is an obama care slush fund. a report says the missing money was part of a fund that was for obama care implementation. 67 million missing. outrage, an overused term in the media, but i am going to use that word. wait until you hear what they're doing with pension money in detroit, billions in bogus payments. my take on that later this hour and that's outrage. we called it, the geeks shall
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inherit the earth. twitter makes a deal with the nfl. talking big money on this. first, could be the greatest comeback in sports history. the us. a defeating team new zealand in the america's company. and the team usa was 8-1 behind and they won eight straight races. and they won the cup and it says in the united states of america. ♪
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>> i was not grown up when i went to college. it was a big beer keg party and i blew tens of thousands of dollars doing what in college. >> and doing who. >> and doing who, wow and it was a black period in my life and i was an adolescent until i was 49. stuart: wow. that was liz macdonald, very funny liz macdonald on red eye last night. has she sobered up and she's going to be right here in just a second. hold on now, liz. coming off the opening bell, let's go to chicago, scott shellady is with us, all kinds of headlines today. what's yours? what's your headline that's moving the market? >> well, i tell you what, after yesterday's comeback victory
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with team usa and america's club i'd like to nominate larry ellison for fed chair, we need that kind of comeback to get out of the doldrums. but look at how qe has compressed volatility and i think it's been helping the market over this debate that we've been having in washington, rather than hurt it. if we didn't have qe, i think we'd be-- >> are we going up today, stocks? >> yeah, we've been down five days in a row and it's time to claw back the losses. stuart: that's the story. time to go back up. thank you, scott. and the bell has rung and a dow that gained 15 points in 20 seconds. not bad, the opening trend is up. we were very close to putting j.c. penney on death watch this morning and we had the organ music ready to go. maybe they got wind of it because the stock actually has moved a little higher in the early going. and let's say it's on life support. no, it's down. look at that. nicole: entire, relative to where it was earlier this
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morning, because earlier this morning, stuart, j.c. penney was down nearly 10%. and that was on the news that they may have to raise some cash, maybe up to a billion dollars in new equity, but since then, the company came out and made it very clear that they've had turn around progress and pleased with their progress and they have greater predictability and j.c. penney.com sales continue double digits ahead of last year and that erased the losses that we saw earlier today. now it's almost flat. stuart: i'm going around the table here, i think that j.c. penney might be the first major department store chain to go out. and nicole, you first. when was the last time you stopped at j.c. penney? >> no, no j.c. penney. not been to j.c. penney, maybe one time in my entire life, maybe once. stuart: you're such a snob. >> and when they had the ceo changeover, six months in, it was not good. stuart: the last time you went.
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>> didn't make a purchase and didn't feel right. stuart: liz? >> and calling back the ceo is like calling in the plumber. and you know, i was in there i think six years ago, just to look around, and i may have shopped there oncement i can't recall, but you know, i really want j.c. penney, honestly, personally to pull it through. >> i agree, i support that succeeding. stuart: you like department stores? >> typically i do at that price point, it's a good thing, an option for you. stuart: and you like the plumber joke. i can't get over liz macdonald's perform on red eye, that was pretty good. >> i'm still recovering. stuart: a serious subject. a name you know, eli lilly, its experimental cancer drug fails in a breast cancer drug, but appears to have succeeded somewhat with gastric cancer. the stock is down 2% on that. i've got carl icahn, you know, he said that apple stock is cheap. you know, we hear he's going to meet one-on-one, face-to-face with tim cook probably in new york next week.
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liz, what do you make of that? >> i think that carl icahn, he tweeted out a couple months ago he owns a large stake, not a large, quite a bit. he said, quote, quite a bit of apple shares and he wants a bigger stock buyback a than the one apple has right nnw. listen, without the big cash position, they're valued around 300 billion and not the 441 billion. he could be buying that stake as he's done with other companies to push it to do a bigger stock buyback or more dividends, right? >> if you've got 100 billion in cash, actually way more than that now days and maybe icahn will push for a dividend, but more of a stock buyback. something like that. >> yeah, he wants something, he wants something and he's in a position to meet with tim cook and get it, maybe. stuart: back to nicole, facebook, is it at 50 yet? >> facebook is up $50 and j.c. penney hit a low from when we just spoke, a new 13-year low.
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stuart: and facebook is at 49.86. >> yeah, it crossed 50 and went to 50.02. stuart: i want the bells to ring when it gets back to 50. that's a big deal. now, twitter, this is a big money technology story. twitter and the nfl announced a very big partnership to stream game highlights on twitter, social network. jo ling is here, you've got to tell me how it works. >> essentially they're allowed to air clips and what's valuable. the ads can be paid for and purchased through twitter and the nfl. so it's a gooed opportunity for revenue stream. one thing interesting about this, this is for nfl network and the thursday night game and does not include the cash cow of monday night football, but i have a feeling this is a major step in that direction and i talked to twitter last night and they sounded excited about the deal and confirmed the details in the wall street journal article. stuart: hold on a second, i go and i follow the nfl twitter
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site, right? that's what i do. >> yeah. stuart: go on to that. >> it's less who you follow and more about the licensing of the clips and what's allowed to be played. clips played via twitter. >> so it's instant replays of the highlights on twitter, that's interesting. >> the reason it's valuable is because of ads on both sides. stuart: both sides get a share of the ad revenue from that nfl twitter feed. that's what i'm getting at. >> exactly. stuart: that's serious money. >> that's where the money is. stuart: take me through this technologically, too, seems we're moving fast you've got your smart phone you can watch anything, anywhere, anytime. >> sort of, but nfl has been the problem and nba games as well. the licenses the value of the games is very expensive and of course, that's going to be exclusive rights for different types of channels, right? and that's the issue with sports, can't always live stream it in every form. stuart: twitter breaks through and they're now with the nfl. >> twitter is breaking through with the highlights and i have
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a feeling that monday night football and all of those are on the way. stuart: right before the ipo. take a look at wal-mart, the company denying the report that unsold merchandise was piling up. the report went down and the stock dropped about 3%. and what's wal-mart saying today? >> they're essentially saying, listening, we're managing our inventory correctly, that the e-mails leaked are talking about different parts of the inventory that they were decreasing, but they're increasing in other areas and the problem is, we have a holiday shopping season, stuart, that could look like 2009 and wal-mart does not want to be put back on the wrong foot as it was in 2011 in january when it found, whoa, we really overestimated holiday shopping and we were stuck with a lot of inventory. the name of the game is same-store sales. they have to keep their same-store sales up to appease wall street. if they screw up the inventory and do it wrong, they'll get hit hard.
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they've got competition from amazon and other places to shop. stuart: a quick update. we mentioned at the top of the show, the justice departments wants 11 billion from j.p. morgan, finding it at fault in the mortgage debacle. and jamie dimon and he returns j.p. morgan. he arrived at the justice department, and wonder what they'll be discussing? . and michelle girard at the state and federal levels, numbers came out this week, is it the high level of taxation, all that revenue coming into the government, do you think that's what's keeping this economy so slow? >> well, you know, i do think that, obviously, higher taxes are not good for the economy. i also think even away from taxes, the general uncertainty that businesses have faced in addition to the increased regulatory burden that companies have faced. all of these things come
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together to make for not a very pro growth environment and that's at the heart of why we can't seem to get out of this malaise. stuart: that's what i'm looking for, i'm looking for some way of saying we're going to have real growth and get, 4, 5, 6. but we've got obama care come out as more taxes are levered next year. i don't see us getting out of the doldrums and i want to know if you do. >> unfortunately, we've talked about. i don't see the impetus for a pick up in growth to anything close to, you know, 3% on a sustainable basis. i don't see what would cause businesses to suddenly get more optimistic and begin to hire more aggressively, which i think is at the root of a lot of this. we need better employment growth across the board for, i think, for us to begin to hope that things could get better and i don't see that happening in the near term. >> i want you to tell me about the status of the labor market. we've had reports for a long time now that more old people, older people, i should say, are
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staying in the labor force, where younger people, they're not coming into the labor force. it seems to me like the labor market, the employment picture in america has really been skewed and i think that's a negative. i want to know what you think? >> there's a lot of cross currents going on. stuart, as you said, there are older individuals are staying at work longer, a lot of that is because of the wealth that was lost during the turn down turn. you see that group working longer although the overall participation rates are more. one of the things you've been focusing on it the labor force participation rate is coming down and due to the fact that we had more individuals in this 65 and older group that, you know, 20% of that group are only-- less than 20% are in the work force and the younger end of the spectrum are staying in school and trying to get educated because it's so difficult to find a job, that that's the option and that has hurt the labor force participation rate on the low end. stuart: it ain't the baby
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boomers retiring. and you've got to care he me out of here, got to carry me. why are you laughing? michelle, thanks indeed and we'll see you again. look at the big board, it's a rally much bigger thatten we thought it would be. 15, 336. after the break, a man who runs dozens of restaurants calls obama care the worst thing to happen in his industry in 20 years. he says it's killing him. well, he's next. ♪ ♪ everybody hurts (announcer) scottrade knows our clients trade
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>> all right. it's been a stable rally. up 63 as we speak. look at a couple of stocks that i've got for you. j.c. penney, gold, go to gold. 1331 per ounce, down $5. let's go to a couple of shares now. first of all, facebook, oh, i thought it hit 50, backed off again, 49.59 a lot of people are pleased about that. and j.c. penney got hit after we covered it at the top of the show and now down 33 cents at 9.79. obama care, less than a week away, at least the exchanges are, it's the worst thing to hit the restaurant industry in 23 years. greg joins us now and he runs 70 franchises, dominos, employs 1400 people in five different states. greg, you say this is the worst thing to hit the restaurant business in 20 years. you've got 30 seconds, make your case.
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how bad is it? >> thank you, stuart, great to be here. i want to say that my opinions are not necessarily the same as nigh franchise corporation, the brands that i franchise, but, yeah, really i think the misconception is that we're all worried about the cost. that's not my concern. i do currently offer insurance to all of my employees that work over 30 hours a week. my concern is the administrative nightmare tracking. i have a thousand part-time employees i'm going to have to monitor on a monthly basis to see if all of a sudden they qualify. stuart: if they work ten hours like-- work like ten hours one week and 40 hours the next week and 35, you've got to keep track of every single individual and report at the end of the month, and that's it? >> oh, exactly. and our fear is if we miss somebody, you know, we can get fined then what if they get sick?
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we can get sued because we failed to notify them all of a sudden, they became eligible. stuart: now, if people in the restaurant business, i've worked in the restaurant business as a young man. nt ho maximum hours on the job because you want to maximize your tip income and you want to work those hours. does obama care get in the way of that by pushing people down the food chain, down below 30 hours a week? >> you know, not for us. we're not going to lose a great team member by shaving their hours to avoid providing them health insurance, that's just not a good business model. we feed the tigers, ride the horses and shoot the dogs. we want our great people to get the hours they need and encourage them to do so. so, that's really know the our goal. quite honestly, most of the employees that are eligible for it that aren't on our management team, you know, opt out of it. if they have to pay a little
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bit of the share of the premium, like all of our employees do, 98% of them decline coverage. stuart: what are you going to do about it? you called it an administrative nightmare. anything you can do? >> well, you know, we are going to explore the walgreen's plan and we haven't decided yet, but we may end upsetting up our employees to the exchange this year since the employer mandate has been dropped and we'll take a look at that. and we are self-insured for the last two years, we're going to look at continuing that because we haven't been able to buy affordable insurance through the open market previously. you know, my biggest fear, the exchange, you know, from early numbers i've heard, that's not looking very attractive. i've heard stories of people's premiums increased 300%. the biggest issue i see with an affordable health care, i haven't found anything affordable about it so far. >> real fast, your 1400 employees, do they know what's coming at them?
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>> yes, we actually notified all of them, i elieve, a week ago what's coming and our manager meetings and supervisor meetings, we relay and try to keep people updated on what we know about the law and letting their team members know, letting them know that they're the most important part of our company. stuart: what was the response? >> i think the companies are cutting back. stuart: what was the response? >> you know, i think their concern, you know, the people who are on our plan right now, what's going to happen to their plan. and you know, what it's going to cost them this year, there's so much uncertainty. stuart: okay. look, i'm sorry we're out of time, greg, but we appreciate you being with us. you're in a tough spot and we understand that. thanks very much, appreciate it. >> absolutely, you bet. stuart: billions, billions in bow go us pension payments in detroit. next, my take on what it really an outrageous story.
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>> look at tesla. by the way, you can rent a
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tesla at hertz. a new high. just hit it over $187 a share. the big theme on "varney & company" been running a long time, technology, it rules. really big money in tech. so in our next hour, we have three tech watchers. i'm going to call it a parade of geeks. each one will tell us what is the next big thing in tech. ooh, an awful graphic. the word outrage is probably overused. but we have a story today where the word is very appropriate. in fact, outrage is probably an understatement. here is my take on the looting of detroit. today we bring you the story of a 13th check as detailed by the detroit free press. every month, payments go out to detroit's retirees, okay? 12 checks total. now we find that for years there was a 13th check, a bonus. the money came right from the pension fund, authorized by the union-dominated city council. over the years, about $2
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billion was shelled out. some years the extra checks came to $100 million. the money was paid at the end of the year to the 12,000 retirees and also to current workers. we're told they needed money for christmas presents and had to heat their homes. in 2005, the pension fund was bare so the city borrowed, and the 13th checks continued. totally bogus payments and probably illegal. that's outrage enough. wait, oh, yeah, there's more. who is being held responsible? the politicians and union guys who started the ball rolling all those years ago? no, they're long go. the people who go the -- got the money, no, they're devoted and you can't take it. instead they'll stiff the banks who lent detroit the money. stiff the individuals who bought detroit's bonds. that's what they call economic justice. the banks' investors, well,
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they can afford it, make them pay. i call it theft. i call it looting. i call it outrageous. the audacity to believe your financial advisor should focus on your long-term goals, not their short-term agenda. [ woman ] if you have the rve to believe that cookie cutters should be for cookies, not your investment strategy. if you believe in the sheer brilliance of a simple explanation. [ male announcer ] join the nearly 7 million investors who think like you do: face time and think time make a difference. join us. [ male announcer ] at edward jones, it's how we make sense of investing.
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melissa frances shakes out of the real story. from lobbying, campaigning, this is no way to pick the next ben bernanke and juan williams agrees. that he could, the backbiting, no way to treat ted cruz. john stossel agrees with that and is going to the end of tea party. prius are here suing the irs. what do they want? money or the truth? three geeks in a row, what is the next big thing in english? ♪ stuart: from the get go look at this. freddie mac, 63 mortgage rate down to 4.32% from 4% last week. mortgage rates down. check the big board, stocks are up. could it be that the threat of a government shutdown is going
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away and that is why we have got a rally at this moment, 89 points today, we will hear from john boehner, he could move the markets even more if he signals a deal could be reached on the budget. we will see, take it from john boehner when he speaks. it pays to sue j. p. morgan. eric holder essentially shaking down jamie dimon to the tune of $11 billion. that is the new number holder is calling for an assessment of the mortgages to. jamie dimon at doj headquarters in d.c. right now. melissa frances is here with me for the whole hour. you know jamie dimon, you are close to the gaza. i characterize this as a shakedown. what say you? >> that is a fair characterization. let's look at the big picture. finance is the blood that runs through the veins of the economy, the lifeblood that keeps everything going. they are the organs in the
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lymph, the finance. and tap the financial system, not good for anybody. look at this in particular. i was with jamie dimon on one of the days of the financial crisis we thought market drop 700 points. he was out at branches investing and talking to people, keeping the economy afloat, being punished. they did things wrong and are happy to owns that. and prosecution and persecution and when is it going to be over. stuart: i think the administration wants to pin the face of evil on wall street and say you were responsible for the crash, payable. jpmorgan took over bear stearns and took over the responsibility for the mortgages and packaging of mortgages bear stearns had done and washington mutual, they took over, being held as possible for the decisions for
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mutual. >> the culpability with cheese and retail banking. they are not trying to not own up, at what point does it end, trying to make a settlement that ends the prosecution once and for all or does everybody come in for a bite of the apple forever and cripples the financial system, they can't lend. get out and get the economy rolling. stuart: they want to carry the issue through, political issue to next year's election and say we are getting it back from wall street. that is what is going to happen. >> evil bankers. stuart: last word. nicole petallides, we thought about it and decided against it. now we are doing it. q the organ music. jpmorgan on death watch. nicole: you made the decision. it did hit a new 13 year lows this morning, $9.52 a share holding the $10 mark at the moment but they said they would
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raise cash, tried to talk about the fact that there are in the midst of the predictability. and free market, it wasn't enough to put it into the green. stuart: i want to remind everybody we are waiting for john boehner to make remarks on obamacare, shutting down the government and a deal on the budget. he is going to appear before the podium moments from now. you will hear what he has got to say because he could move the market. we are up 96 points. if he suggests there is a deal, no government shutdown, we could see the market moved up a bit more. we will take you there. back to nicole petallides and hurts, a new low? nicole: hertz is not doing well, down 12.5% and this because of the numbers they put out to the latest quarter and cut their forecasts. their main problem is they are not renting enough cars at the airport because people don't
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have much money or traveling, they are not renting cars or taking trips so i don't know what is going on. they say the car rentals at the airport have been weak. stuart: virtual meetings is what is going on. nicole: i have not been on a trip and didn't take a plane or rent a car. move the market with that. stuart: when you are killing hurts. we are waiting for in the meantime lois lerner, irs officials that started the scandal, she has retired. lawyers, the lawsuit against the irs says we may not have heard the last of lois lerner. >> individual capacity and official capacity, her lawyer may instruct her when she is deposed to assert her fifth amendment privilege but let me tell you in a civil case a fifth amendment privilege is an admission of statement. stuart: the president of citizens for self governance is
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also suing the irs. i want to know what you want from them. is it money or what? >> what it is is the truth. the only class action suit, the people in america want to know what actually happened, they know it is worse than being admitted. they want the truth, the whole truth and nothing but the truth. stuart: can you bring her into a court of law and get her to say the truth? >> we can bring her into a court of law, it is true that if she tries to take the fifth in a civil case that is an admission of the question being asked so she finds herself with personal liability so she will find law.elf in the pincers of the stuart: a civil case against her. >> class-action lawsuit on behalf of all individuals and entities that were injured meaning pro-israel groups, brokers and groups, prostitution groups and tea party. stuart: your suspicious of those higher up the food chain. she was told to do this. influence to do this. >> we have seen evidence that people higher up the food chain new and gave implicit approval and i think the american people
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deserve to know how high does this go. stuart: in my opinion the administration used the machinery of government to affect the election last year. that is my belief. i happen to think that is what happened but can you prove it? you have got to prove it to go forward on this. >> i think we can improve it and i love what they're doing, we have a different posture, a former federal prosecutor, u.s. attorney treating -- involve criminals, we are going to get this information out of them, prosecute the case on the end whatever it costs. stuart: when you are suing lois lerner and who else? >> numerous people associated with her, people who signed those letters asking additional information. stuart: what is your time frame? >> amazingly the government has moved to dismiss the case. that came about the same time president obama started calling in a frivolous scandal, fake scandal so the country probably over the next 18 months.
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stuart: 18 month to two years. >> litigation move slowly and expensive. stuart: it takes you way beyond the 2014 election. >> clearly there in tent and dragging their feet all the way. stuart: i'm sure you'll love ted cruz. >> i love ted cruz because what he is doing is speaking with the american people a feeling. stuart: splitting the party. >> between people who are ignoring the will of the american people and him standing up there in congress saying what most americans wish they could stay. stuart: when you want to take over the republican party? >> me personally? i want the people. stuart: the tea party people, citizens of their governance, you want to take over the republican party? >> what ted cruz is saying is american public opinion, 60% of americans told gallup they feel the federal government is too big and out of control. not just tea party but america. the question is a question of who decides. right now washington think it is them. ted cruz as it is the american people. we stand with ted cruz. >> 60% of the american people
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think the government is too large, the fact the we continue to elect democrats, feels like everywhere. how can those things go together? how do you reconcile that and how you capitalize on it? >> put back against the idea we elect democrats everywhere. if you look at what is going on on the state level where people really are at the state level we have 30 republican governors, in the next cycle we will end up with 32 or 33 republican governors. we have the largest swing in state legislature from democrat to republican in the history that we have been counting this. the federal government is out of touch with the people so that is what you see in d.c. something the people don't want, at the state level getting the right thing and states will save the country. stuart: hold on a second, i went to bring everybody up to date on what is going on in the market anti-washington d.c.. right now the dow jones industrial average is on a nice rally up 110 points. this has got a lot to do with what we are hearing, what we are
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about to hear probably from john boehner. looks like there could be a deal of some sort on the budget. if that were the case, i don't know whether it is or not but if that were the case you would not have a government shutdown monday night going into tuesday morning. you would essentially put the shutdown, the default crisis often to october 17th when we run out of money, that is when the debt crisis surfaces. in the immediate future may be that threat of a shutdown is coming off the table. we will find out for sure moments from now when john boehner appears before the podium and there is the podium when he emerges out of that door he is going to start to speak and we will see what happens on the market. right now we're up 111 points. mark mcclure is still with me. you hope that he is not going to give in on obamacare. you hope john boehner, you oppose john boehner and hope he stands firm and says abolish
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obamacare. i am standing firm, shutdown the government -- >> it has been a change of face for john boehner. we appreciate that and hope he continues to stand firm. it is not just what i hope but standing with what the american people want and it is not shutting down the government. john boehner has said fund the entire government except obamacare and that is what the american people want. stuart: the effect would be shutdown the government and the republicans would get the blame. >> i don't agree with that. the american people are in different place, people in the media say over and over the republicans would get the blame. this will fall squarely on the desk of the president where it belongs. stuart: when you think so? haven't in the past. >> look at a polling. the president is on popular right now, popularity rating down to 44%. kerri read the most unpopular politician in washington d.c. democrats have lost face with the american people, obamacare is hung around their neck and they will pay a price. >> if the goal is to get rid of obamacare is a better strategy
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to take? talk of a deal with house republicans we would delay the implementation of obamacare or the personal mandate. is there a deal to be made to extend the debt ceiling. and win back the white house it, is that a better strategy? >> inside politics and baseball and the american people are tired of that. >> always the outcome you want to not have obamacare as a law is that a better strategy to get to that of them. >> might be a better strategy but you have to bring the american people with you and nobody brought the american people along with that strategy. if there's a good spokesperson for the strategy and be communicated in a way that ignites the base may be but you bring the base with you. stuart: okay. you talk a good game. i remain skeptical. thank you very much. we will take a short commercial break. when we come back you will see
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john boehner and look what happens on the market. ♪ [ male announcer ] now, taking care of things at home is just a tap away. ♪ introducing at&t digital life...
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stuart: john boehner about to speak on the budget and the agreement. >> american people don't want the president's health care bill and don't want the government to shut down. republicans are listening, to do just what the american people have asked. pass the bill that we spend over there. on the debt limit, we introduce a plan that ties importance spending cuts and pro-growth reforms. the president's says i'm not going to negotiate. it doesn't work that way. i will not ignore washington's spending program but not except the new normal of weak economy. and shrinking wages. strengthen our economy for all americans and deal with
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washington's spending problem. >> good morning. the speaker said last week, we sent the senate continuing resolution that funds the government and stops obamacare. stuart: before he spoke the dow is down 110 to 115 points. he does not accept the statement that the president will not negotiate on the debt ceiling, no, speaker better once reforms on spending and taxes and does not accept the new normal on jobs and wages. bear in mind he is speaking about the next big deadline october 17th and that is the debt ceiling deadline. when he started to speak the dow was up 110 and now we are up 94 points. any comment? melissa: the market is disappointed, they were hoping there was some great -- don't know why they got that expectation. we were hearing of those rumors
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but we are not making much headway. stuart: the market was expecting reference to the budget deal, the immediate problem of government closure monday night, tuesday morning. it seemed to me like john boehner was talking far more about the debt ceiling problem october 17th, markets are a little disappointed but not distraught. >> fair characterization. >> let's get out of the weeds and go to the geeks. this is a big tech story of the day. huge partnership between twitter and the nfl to stream highlights of social network, twitter is about to go public. this could be the first hint of how they plan to generate a lot of money. here is more -- >> it is a compliment. stuart: let me introduce the geeks. polygon's co-founder, science
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and technology editor jeremy kaplan and chief marketing officer angela san philipo. i want to start with twitter and get your ideas on what is the big thing. to you, am i making too big deal out of this? twitter gets a deal with the nfl, watch anything anywhere anytime? i think it is huge. what say you? >> i think it is equally huge. the reality is social tv is big. people are on twitter when they're watching tv so the fact that they are integrating more opportunities for brands like this for the nfl and sports teams to integrate all those highlights is going to be huge as will bring a ton of revenue. stuart: twitter, nfl, they look more and more like facebook to me. >> twitter is making this argument, we are going to make money this way. they are hinting at the possibility in the future and it is funny because we saw this where facebook started to push
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the profitability and land it ended up resulting in backlash because i don't want to see these had in my news feed or all this decorous in the fee. i am used to seeing my friends's music. we might see this where people react the same way towards twitter and at integration but they have got to make money. stuart: all market cares about is is the money going to flow across the transom. that is what they care about. anything to add??o cf1 o hold on a second. i am not a geek. i don't know all this stuff. what do i do? i go to the nfl twitter feet and will catch any game, any highlight that i want? >> not sure how they will implement this. sounds like a very interesting, clever thing and for anybody who was a football fan that compared some highlights, i don't know how much money they will make
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off of this deal, as my coat geek was pointing out it is interesting to see how these guys will make more money as soon as they go public. how much money are you making, and a couple of lines of text and a lot of revenue and another way to do it. stuart: the next big thing from our geek squad, can't use that expression. you are not the dep squad. they crew. what did you say? we now have to pay by $100. >> look in your pockets, nfl falling out the sky. stuart: we are going into the break and after the break the geeks' will tell us what is the next big thing in tech. hit the brake, please. so ally bank really has no hidden fees on savings accounts?
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stuart: ten minutes ago the dow was up 110. john boehner comes out and says we want reform, lower taxes, the
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not new normal in the debt ceiling debate. the market goes to a gain of 91 points. that is the backdrop to what you are seeing. webmac with the round table. and jeremy kaplan, and angela san philipo. what is the new big thing in tech? >> it has to be google glass. is cleverly called google for your face. and lightweight titanium, the building camera allows you to do everything from take pictures, take video, integrates with other google services like maps, and in addition to that has this promise of being able to deliver contexture will information's so it has voice commands that allow you to search for anything but
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the interesting piece here is going to be the effect that will leverage search history and what is around you to really provide you with information that is more contextual the relevant. stuart: google glass, you can't say google glasses. it is google glass. it is interesting. hold on a second. jeremy kaplan is here. next big thing in check from you. >> google glass is an innovation but people will be scared of it. the big thing is smart watches. this is a regular watch, this is a smart watch. like batman. stuart: the smart watch is on the top. hold it up. i admit it is big but next year we will see every company, apple is going to sell one and one from microsoft, samsung, shelves of these at best buy. you are going to want to get one. stuart: we are making fun of it.
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you are talking about wearable computing like google glass, where rebel computing is what you are talking about. >> takes your smart phone and boil the information into tiny bits of information. >> up pocket watch version of that. >> there should be a pocket watch. stuart: i am an american. >> market that. stuart: when you do not have a good british accent. what is your big new thing. >> x box 1. the new consul for microsoft, one success consistently microsoft had over the last decade the x box continuing the trend with the new device. and they are integrating cable boxes, the cable box at home pour into the consulate watch tv through it and do netflix and gaming. that might be the point into gaming and the deal with the
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nfl, exclusive deal with nfl and there is a lot of opportunity to bring in the new audience. stuart: you really think that is the next big thing? another x box? >> visit their grandparents. and a x box in the living room and he is going to say x box, turn on the game and instantly jump to the football game that is on. x box, play halo and jump to halo and everyone is looking at it. this is pretty cool. with google glass personally i feel uncomfortable wearing it. i don't think my friends will see me wearing as smart watches, the size, also battery life, charge that every single night, lives in your living room and dominate every device you have. stuart: got three big new things, google glass, smart watch and the x box 1. melissa frances, would you buy
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any of them? melissa: i wouldn't buy any of them. i am sorry. maybe that makes me the biggest key to of all but the glasses, i don't want to wear those, the watch -- you do look fabulous. stuart: wearing a google glass. >> like i am never -- stuart: why are you laughing at the site of stuart varney in google glass? >> because you look so incredibly wonderful. brings up a good point. the biggest barriers to wear a bowl is going to be fashion. it is not pretty. women more than any thing will not wear it. there is a cool factor for guys google glass literally look like a pair of bad 80s. >> apple will fix the problem.
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wouldn't buy any of these but my credit card will buy all of them for my two sons. so i want to put a caveat in. stuart: interested in wrapping this up. we have two wearable computer products, smart watch and google glass, that side of the offense. you are in a completely different area saying it is a reiteration of the x box. >> more of a push to dominate the living room, taking over the living room. one trend connects these things, this is all connected home things. in the future and by the few crimean next year everything you buy has an idea address and will connect to everything else and talk to your smart phone and beyond this mashhad the internety world. internet good news in everything you buy. stuart: this is a blackberry. >> let's unite in our lameness. stuart: stop crying. this thing works.
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everybody, we appreciate you being with us. sorry i called you all geeks. we appreciate it one and all. a highly unusual political fight over the next fed chief is brewing. maybe that is because ben bernanke is the most powerful man in a world. dennis kneale with that with juan williams after this. [ shapiro ] at legalzoom, you can take care of virtually all your imptant legal matters in just minutes. protect youramily... and launch your dreams. at legalzoom.com we put the law on your side. ...amelia...
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stuart: it is happening right now in washington d.c. eric holder is shaking down jpmorgan. the discussing $11 billion. we had a big admission from president obama. listen to this. >> it is paid for by a combination of things. we did raise taxes -- stuart: confirmation of what we have been saying all along. the president denied it and now
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he is accepting that is in fact what we are doing. >> you had to have no math sense whatsoever if you did not think it would cost tax dollars. he needed to add on if you have thousands of dollars lying around to pay for how much more it will cost. this will cost everyone big. stuart: taxes go up even more. >> absolutely. stuart: i think it has a bad impact on the economy. we will add on more obamacare taxes. i think it slows us down even more. >> if you are a healthcare company, it has been a huge costs and will continue to be.
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stuart: this is arguably the most powerful position in the world. america's central banker. bernanke is leaving. who will take his place? juan williams is not involved in this, but he has written about it. i think this is a really big mistake. i think it is a bad deal. >> i think it is partly the president. if it was up to him, i think larry summers would have the job. what has happened here is more people are looking at the fed, not just treating it as if it is beyond us. now you have people who pray we do not like the fed. they should be more accountable.
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more transparent in their actions. they think bernanke has been a helping hand in propping up the obama years. stuart: at the end of the day we do not want a politicized federal reserve. we want an independent federal reserve. we do not want politics to get involved in this. i really think that by delaying this nomination process, and we still do not have a nominee, by the way, and the president is responsible for that. the president should have said i picked this person, i pick that person. let's go. >> i know that you had 30 senators back in 2010 will post bernanke. remember, or nagy was a bush
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appointee. they were opposing bernanke at that point. the fact is, the economy, the stuff that you talk about every day, is now more political because of the fragile condition of the economy and people want some input into what the economy is doing. >> it has gotten more political because of what the fed is doing. it has thrust them into the political limelight. i think that is dangerous. they should be making sure that the system continued to roll along and not get messed up in
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politics. >> right now, given the fragile state of the economy, the economy is the number-one issue for the american voter, jobs is a preoccupation and a number of discussions. the fed will become a highly politicized point of discussion throughout washington. the fact that last week when the fed act did use all the market go up, that is an indication of how critical it has become. stuart: would you agree with me that janet yellen is a shoe in?
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>> i think people like elizabeth warren, the senator from massachusetts, so that janet yellen. janet yellen has her own group around her now. i do not think he will have much of a choice. stuart: it is incredible. for three interviews in a row, we have failed to have a fight. [laughter] >> did i disappoint you, stuart? next time i will pick on you and you can pick and punch at me. stuart: i cannot wait for that. good stuff. government shutdown looming. maybe. john stossel says we can do without major government agencies for years. he will make his case in a moment. ♪ [ male announcer ] how do you get your boce?
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i'm, like, totally not down with change. but i had to change to bounce dryer bars. one bar freshens more loads than these two bottles. i am so gonna tell everyone. [ male announcer ] how do you get your bounce? [ woman ] time for change! ♪ stuart: the labor department releasing those weekly jobless numbers earlier this morning. it fell 5000 from last week. we are down to a very low level. 305,000. the final reason on u.s. gdp second quarter, it grew at an annual rate of 2.5%. a lot of people thinking we would expand a more than that.
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it could be the greatest comeback in history of sports. team usa edging out new zealand. a week ago, team usa was 821 behind. they have won eight straight races. up next, the libertarian contingent in the republican party tearing the gop apart. ♪
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♪ stuart: something new from christie's, the auction house.
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they will hold parallel online only auctions. online only. diamond dust shoes. $800,000 for that. would you pay that money, melissa? >> why not. i would give them to you. i would not be able to hold myself back till i saw you wear them on set. nicole: we are seeing facebook over the $50 mark. $50.22 a share. a new all-time high for facebook. stuart: that happened beyond. nicole: it is up 4%. this is on some great sales numbers. stuart: thank you very much.
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one libertarian voice says go ahead. do it. shut it down. john stossel is here to defend his case, or make his case. >> last they kept most of it open. they kept most of the workers working. we need the military, border control, air traffic cop but we do not need most of what they do. stuart: if we shut the government down, you know, one of the first things to go is meet inspections. the government has to inspect meat before it is sold. get real, stossel. >> you think that because you are used to government world.
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immediately consumer reports, somebody would get in the business and they would do it better than the government does. stuart: where in the world right now is there so little government -- >> a copy of america. we have the rest of the world. we have every other product. stuart: it ignores the reality. >> let's not focus on the meat inspection. get rid of the labor department, the commerce department, the energy department. most of what they do is destructive. we will not miss these things. shut the epa down for a year and you would not know it. >> he is making such a good
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case. i have become a little accustomed to knowing that my meat is safe and not old and moldy. >> how about the money to study pig feces in china? stuart: now you are off on a tangent. >> i am nervous. >> the meat people would say, how do we protect our industry? they would find some way to get inspections that are certified to reinsure consumers. stuart: is ted cruz your god? >> except for his hairstyle. [laughter] >> i do not like some of his positions on things.
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otherwise, yes. his strategy is good. stuart: splitting the party. >> it is not my problem. stuart: you open the door to the collectivist. the very people you do not like. >> debut the government will shut down and people will say we can give half the money to the government and not miss anything? maybe we should rethink this thing. stuart: i am with you on this one. 9:00 o'clock tonight. i will be watching. cory booker tweeting with a stripper. that is after this. first, a highlight for my appearance on "imus in the
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morning." i was sleeping on a beach and wales. along came a woman who feeds sandwiches to see goals. don: i had to ride in the back of a pickup. you went for two or three minutes. ♪ thanks to her double miles from the capital one venture card. now what was mrs. davis teaching? spelling. that's not a subject, right? i mean, spell check. that's a program. algebra. okay. persons a and b are flying to the bahamas. how fast will they get there? don't you need distance, rate and... no, all it takes is double miles. [ all ] whoa. yeah. [ male announcer ] get away fast with unlimited double miles from the capital one venture card. you're the world's best teacher. this is so unexpected. what iyour wallet? [ male announcer ] now, taking care of things at home is just a tap away.
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lou: coming up on lou dobbs tonight at 7:00 p.m. eastern. retired general on the stalemate in syria and the president's foreign policy. tonight at 7:00 p.m. eastern. ♪ stuart: the religious charities little sisters for the poor is suing the federal government because they are being forced to comply with the contraceptive mandate. obamacare, that would be exchanges four days away.
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newark's mayor cory booker. the latest politician to be caught up in an online messaging scandal. he has been exchanging messages online with a stripper. i do not think it will hurt his campaign. [laughter] why are you looking at me? it is the opera affect. no animals were harmed in the process of this flirtatious texting. stuart: women in new jersey are giving cory booker a 20-point edge over his opponent even though the man text a vegan stripper, who, by the way, i am
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told is covered in tattoos. >> oprah winfrey has wrapped him in a cloud of love. it has flowed over to all the women in the area. stuart: in the race in virginia, there is an overwhelming lead over his republican opponent. he has a history. can you explain that? >> no. no. i can't. absolutely not. you want me to defend these women and why they are doing it? i have no idea, stuart. your guess is as good as mine. it makes no sense. republicans have to find a way
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to appeal to more women. i do not know. stuart: outrage in detroit. billions of dollars in payments to questionable union members and retirees. yes, you are outraged. your take on it next. ♪ by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comfts above. we're not simply saluting history... we're making it.
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stuart: i gave you my take on detroit, pensions, bonuses by the billions. i was outraged. let's see what you have to say. this is your take. we have this response coming to us from jeff. they call it wealth redistribution. i call it fraudulent government. it is that on a grand scale, detroit is just the start. michaels says we need to pass a law to allow any citizen
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standing to sue elected officials administrative and legislative malpractice. my time is up. is yours. connell: we have big money stories coming of this hour including the post office which has big-time money problems. the news that they are raising the price of a stamp by $0.03 is big enough to turn things around. we will talk about the post office coming up and record monday in college sports, one of the biggest boosters for texas a&m among others things, we will see if it is time to pay johnny mandel for his duties. and it is the season for shops that angle. dagen mcdowell knows it well. too big hit. that was dagen mcdowell making weird noises in the background. cheese coming up. keep it here on markets now.

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