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tv   Varney Company  FOX Business  May 18, 2022 9:00am-12:00pm EDT

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are you watching it. >> i'm missing something, it must be great entertainment and i'm dying to find out which political candidate these guys support. >> that is not coming out. fox nation who is johnny depp and who is amber heard will get you all caught up. maria: jackie deangelis, joe concha, john lonski. great show, "varney & company" begins right now. stuart: good morning, everyone inflation hits and hits hard raising cost and pinching future profit. it hurts, look at target. they report shows people are still spending and still coming into the stores with foot traffic. costs are getting out of control despite walmart. that stock is tanking down 24%. that is target, big company. inflation won't quit, new high for the price of gasoline $4.57
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is the national average. every state in the nation has 4-dollar gas. it is $5 in western states and $6 in california. that is for regular. diesel $5.58 a gallon. by the way $7 diesel frequently in new jersey. all of this is not helping stocks. a slowing economy plus rising inflation, probably means stagflation. the dow this morning will be down 270 at the opening bell and s&p down 45 and nasdaq down 180. that is the opening bell, we don't know how we close. bitcoin is below $30000, 295. interest rate the ten year treasury is right at 3%. that is the market this morning.
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let's go to politics in the primaries. the big races pennsylvania and the republican primary, doctor oz endorsed by trump has a very slight lead of the hedge fund david mccormick, kathy barnette and third place, thousands of mail-in ballots still have to be counted, hawthorn lost his bid in north carolina and he had been endorsed by trump. fascinating results in the democrat primary and pennsylvania. a leftist man of the people john federman beat centrist democrat connell lam, 59 - 24% they celebrated from the hospital where he is recovering from a stroke. i'm going to tell you about the 18-dollar beers at the pga championship. of course we have several elon musk headlines. wednesday may 18, 2022, "varney & company" is about to begin. ♪ will ♪ ♪.
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stuart: it was a busy night for the primaries and the big question is how well did trump back candidates before. we'll start with pennsylvania were doctor oz holds a small lead over david mccormick who did not get trump's backing. david is back with us for more punishment. good morning. why didn't trump's endorsement of doctor oz put headway over the top. >> it put him in the spot where he is essentially going to win this thing. we'll have to go to every count clearly to find out who the winner is. the bigger story, this is a good day for the markets, you put two states in and for the republican column going into november, we have a much better chance at holding the seat and in north carolina, we nominated ted bad giving us a better chance to hold that seat which is all the
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above domestic energy policy that was supported by president trump. yesterday was a good day. stuart: is this trump's party? is trump leading this party into the november election? >> the ideas that he campaigned on and ultimately. if you contrast that with what we are seeing so much enthusiasm in the republican primaries. let me also add we talked about the senate, let's go to the house. one of the few moderate democrats, kurt schrader in oregon is going to lose his reelection and they will nominate a progressive which gives republicans another seat that we can campaign and potentially pick up another house seat. stuart: what happened to janice endorsed by trump in idaho, i believe she lost. >> it is tough to be an incumbent governor. as we will see next week in georgia when brian kemp defeats
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david. and he defeated jim in ohio. incumbent governors are hard to beat. stuart: you are comfortable with trump showing in the primaries yesterday. >> i'm comfortable with republican nominees that will win in november. stuart: thank you very much for being here we always appreciate it. it is that time, almost five minutes into the show. we gotta get to elon musk headlines. he expressed a political preference. is he a democrat or republican. >> neither, a moderate. but he's going to vote republican. >> i address myself as a moderate republican or democrat. in fact i voted overwhelming for democrats historically, overwhelmingly i might never have voted for republican just to be clear. this election i would. >> i don't know if this election in november or and 24 but either
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way it's not hard to see what he will vote republican. he says democrats are controlled by unions and they don't like that he put trump back on twitter that he still trying to buy. stuart: i see a shift in him. >> is a shift in the democratic party. stuart: we cannot leave this alone, were gonna talk about his latest elon musk bid for twitter. as i understand it, twitter's board still really wants the deal to go through. >> they say it's in the best interest of the shareholders and they intend to close the transaction. elon musk wants the sec to investigate twitter's estimate of spam accounts. he did this pull on twitter, if twitter claims more than 95% of daily active users are real, does anyone have that experience. i think that is a laughing emojis, then he calls on the sec. anyone home?
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all of this happening as an audit shows half of president joe biden's twitter followers are fake and elon musk said that would be ten times more than the 5% of accounts that twitter said are fake. i want to point out the same audit says 70% of elon musk followers are big. stuart: how many of these accounts are fake. the story there, president biden, half of them are fake. >> it does not derail the deal, people know and all of social media is a very hard thing to gauge. if you want a better price, he's going to need to prove he needs to show evidence he was willfully misled by twitter and executives and where is evidence of that. stuart: the stock is at $38 a share, nowhere near $54.20. hard to understand what is going on. >> and all the tweets to.
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stuart: 70% of this and 5% of that, hard to keep track. let's get back to the features. will be down at the opening bell, 260 for the dow, 180 for the nasdaq and shaw gilani is here. this is a selloff, we've gone up and down. a lot of volatility. do you think it is time to start buying anything? >> we did start buying, may 12 the market has been ugly, we took a couple of new positions with the caveat that we don't expect to take full possession in any of the great balance sheets that were going into right now. we are taking a quarter of the position of the total capital and allocate to some of these positions and the idea there, i think we have lowered to go. we intend to average down and that is part of our strategy right now. markets are pretty shaky. i think we have lowered to go but we don't know when the bottom is going to come in we begin the stocks when the bottom comes within a few months. stuart: i want to repeat that, you think a bottom is coming in the next few months?
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in the meantime, should i keep my money and cash? >> i think is pretty sound policy right now to keep money on the sideline, and keep some dry powder. if things are good to get shaky and markets go lower, some of the great companies are going to be further on sale and that creates an opportunity. that's why we average down. we don't know when the bottom will be and i think when we do see a bottom, i think the first bounce will be five or 10% and within a month or so we could get 15 or 20%. that's hard for investors to catch the bottom. that's why were averaging into the great companies that we want to own. stuart: give the name of one great company that you wish to own. >> may 12 we bought amazon and nvidia. >> that's good enough for me. thank you for joining us, see you again soon. back to energy price inflation. average price for a gallon of regular gas is up 5 cents
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overnight. you are at $4.57. this sounds ominous to me, j.p. morgan thanks were not even close to a peak gas price. >> they think it can go up 37% by august. that would mean $6.20 a gallon on average nationally. i've been thinking about this. is that even possible? if prices go up that high, you will reduce demand. there's no way they can charge that but i think they can. there's so much pent-up demand. look at california, they're still paying it. i cannot imagine $6.20 but i cannot say right now that is not possible. stuart: by the summer if you have an average of $6.20. if you have a 6-dollar gasoline, national average, politically that sinks the democrats, i would've thought it sinks them completely. >> i think you are right, do we get there? it's a refinery issue right now, that is the major problem. no fix that anyone has suggested
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except for telling the drillers to start drilling again and bring the oil to market. there is no fix that will bring it down how much can we stop it from rising. stuart: in the immediate future there is no fix. that is the story. what is going on, biden e-zine sanctions on the venezuelan communist because he wants their oil but he will not drill here. >> that is affixed, the administration says chevron can open talks with venezuela to continue their oil operations. they are the only u.s. oil company and venezuela. they have been lobbying the white house to allow them to drill themselves. that is not happening yet but talks are happening. the numbers, we imported 460 barrels a day from venezuela back in 2019 but we still have to replace the russian oil which is about 700,000 barrels. stuart: we could drill for our own oil which we have an abundance. >> which is cleaner.
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none of it makes sense. why 6-dollar gasoline might be possible. stuart: check the features, we've gone down about 300 for the dow in 200 for the nasdaq. here's what's coming up, chuck todd claims republicans are using the first amendment to appease white supremacists. roll tape. >> they want to make it seem as if it's a big brother, this is always what the right does to appease the white supremacist movement by saying free speech. we will definitely take that on. speaker pelosi takes the blame game over the baby formula shortage eight steps further. watch this. >> when it comes to babies, i think when all of this is done, i think there might be a need for indictment. florida congressman byron donalds has a few choice words for that. he is here after this. ♪
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stuart: speaker pelosi and the democrats are placing the blame for the baby formula shortage on corporations. what is this about an indictment. >> when i asked speaker pelosi ultimately if congress if they acted months ago when the white house says that they knew a shortage could be a minute because of the plant closure a formula plant closure in february she seemed to indicate criminal charges could be on the table. >> would it comes to babies it is the here and now ended this
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moment. i think when all of this is done, i'm not associating my colleagues, i'm gonna say it myself i think there might be a need for indictment. >> congress is scrambling to figure out affixed and may for an issue that the white house says they have been working on for months but did not reach out to congress to ask for help, democratic leadership has proposed $28 million in emergency aid to help the fda boost staffing and try to boost the supply of baby formula across the country. looking to make changes to supplemental nutrition program that a lot of people rely on to buy baby formula making the vouchers more flexible so they do not have to be restricted to buy one type of formula on the shelf but have options for whatever is available. stuart: i would love to know who the speaker would love to indict, is at it labs, we don't
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know. >> it was not clear who she was referring to but we speak to her tomorrow, we will try to follow-up. byron donalds is with us now, president biden and the democrats are leaving the formula shortage on corporations on adit, who do you blame? >> i played on the fda in the administration like everybody else. if there was a contamination at the abbott lab that is one thing but if the fda is gonna shut down the lab responsible for 40% of the supply and not think about what happens when there's not enough supply of baby formula in the united states that is the fault of the administration, once again you have joe biden and his team governing with talking points but not with plans and not with strategies. unfortunately this is going to lead to malnutrition of babies in the united states, who would've ever thought a thing
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would've happen only in joe biden's america can something like this take place. stuart: there's so many things you can say who would've thought we would about 5-dollar gas and an open border. there's so many things he would've said a year ago, now were looking at 6-dollar gas across the country that is according to j.p. morgan. the summer 6-dollar gas on average in america. what are your constituents going to say if we get 6-dollar gas >> there gonna wonder why more oil explanation in the united states more importing from canada, our neighbors to the north who wanted to send shell oil and natural gas through the keystone pipeline that joe biden shut down. talking point not strategy. we have to begin the process of unleashing our energy apparatus, oil and gas apparatus in the united states. you don't do that by charging
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more for new lease, you challenge the environmentalist in court allowing oil companies to drill and make enter from a regulatory standpoint they will have trust and faith that the federal government and this administration is going to back the idea of expanding oil and gas production in the united states that's what needs to happen it's not that hard it's an ideological problem at 1600 pennsylvania avenue. stuart: what is the mood of your constituents, the people in new jersey and upstate new york are angry. how about floridians. they're angry and they're sick of it because it doesn't have to be this way. we have all the energy that we need in the ground. the only problem that we have we have the radical left in the green technology and green new deal agenda and they do not care about the harm that is happening
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from an economic perspective to families across the united states. they were glowing about this at the beginning of the body to administration they have no problem with gas prices going up this is what they want what's happened people are realizing the dysfunction of the left agenda in the democrats and joe biden it is hurting every family in our country. stuart: congressman byron donalds, thank you for being here. more on inflation, justin thomas fuming over the price of beer and a pga championship. eighteen dollars for michelob. >> you go to do something nice and you spend a lot of money on a ticket and that's adding insult to injury. the 2017 pga champion agrees that 18 is enough. >> you want people to want to come to the tournament and it's on the fence and looking at the concession stand that's not the greatest thing but people aren't coming to a tournament saying i'm gonna buy michelob ultra.
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i was blown away i've never seen a beer $18 or $19 in my life the guys have been talking about it so have to stand up for this dance. >> i've never seen in my life, isn't that how you feel everywhere you look, airfare up 25%, 6-dollar gasoline is completely insane, you can find gasoline but you cannot find baby formula, that is another point that sinks in. >> were gonna editorialize it about the shock value of these prices when you see them. futures were going down to 70 for the dow and were going down 200 for the nasdaq. ♪
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>> this is my biggest fear the worst case scenario i was hoping was not going to happen. the bottom line powell made it very clear they don't care about the market there gonna try to get inflation down and there's nothing they can do to bring fuel costs down. basically there is no said put what that means i find it very hard to believe were not gonna take a major leg down and be down 30% and the s&p. i don't think the average person understands how bad the setup is especially with the news yesterday. this was the largest bubble of our lifetime and they are going to suck liquidity out of the system and it's going to burst. we are not even close to seeing what could happen. i'm trying to educate folks on what's happening underneath the hood we have record amount of corporate debt right now. stuart: you think the fed is going to raise rates and that will push the market down significantly, you mentioned
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down 30% on the s&p, down 30% from where it is now, is that 4000 now. if it goes down 30% you're talking about the s&p going down to 3000, is that what you're talking about? >> has the potential to go there. i'm very concerned with how reckless they're going to be with his monetary policy. if you look at the high yield spread already widening the good be sucking liquidity out of the system you're gonna see some companies go bankrupt and small businesses will lay folks off, this is a tough environment for businesses as it is and you increase capital on top of that i don't see how we don't go into recession and when you see a bear market in a recession like this, and s&p at 30% on a year-to-date basis can get a lot worse than that. i think 30% now downside from this year-to-date is a best case scenario. i'm to leave it at that i'm short of time i have 30 seconds
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to go before the market opens. come back soon i hope you're right on the sun. 20 seconds to go, were gonna see some red ink at the opening bell, that is said in concrete. how we close i don't know, we have the fed probably raising rates aggressively and energy price taking up all over again with 6-dollar gas by the summer, the markets open, away we go, right from the start were down 200 points. most of the doubt 30 is in the red as expected. your down .8% on the dow in the early going. the s&p 500 down over 1% and the nasdaq composite down sharply 1.64% as we speak. big tech all across the board there down, microsoft, apple, meta platforms all down.
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to me the big news of the day is this stock i call that the stock of the day, target on track for the worst day since 1987. a lot of things, they're talking about the first quart of this year, profit missed and they're talking about uncertainty when it comes to higher cost for the rest of issue especially for fuel and labor also tough compared to last year when you had spenders in shoppers armed with their stimulus checks but they did reaffirm sales guidance which i found interesting they declined to give a profit which screams uncertainty in terms of higher fuel cost and wage cost that we just talked about but it's interesting that they talked about a boom and luggage and toy sales that were strong. >> the stock is down 22%.
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1987, do remember what happened in 1987 at the stock market. stuart: i was there, that was a bad year for the stock market. that is a huge loss for company. >> they talked about strength in the u.s. consumer with reaffirming their sales guidance for the year. let's see how the rest of this year plays out. stuart: another retailer blows is down 3%, what's the problem. >> compared to home depot record your first quarter, lows says they're blaming, it's kind of confusing there blaming their sales decline on cooler spring weather that made it less appealing for do-it-yourself outdoor projects. that is a stretch. i was think in the first three months are pretty cold isn't the winter. apparently march was a little too cool for those that wanted to do something in their outdoor. if you think about it sales guidance for the year they're expecting some recovery when the
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weather gets hotter but they said 75% of their business is doing yourself compared to 50% for home depot they are more effective when the consumer doesn't feel as confident. >> all of these retailers are squeezed by higher cost, inflation, higher wage cost walmart is down again this morning. >> here that over and over amazon had the same problem. the first prophet job for amazon of seven years. look at walmart, down again after the worst drop since 1987, isn't that interesting the same yearly theme, black monday was a 1987 for the stock market. stuart: october 19, 1987. you were there for that that was a scary year for the market. i did want to read too much into the yearly comparison but the walton family lost $19 billion in wealth because of the stock slide yesterday.
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they're the richest family on the planet. i want to note janet yellen was speaking and i was looking at my phone, she does not see a recession. she does not see a recession. you heard from jay powell at the wall street journal, he said in hindsight they should've raised interest rates faster, sooner but inflation is way too high, he is indicating it depends on the data and it can go more aggressive or less aggressive depending what they see. stuart: the market thinks there's a recession coming. were down 300. i think we've got something on twitter. some executives are leaving the company, elon musk pushing them out? >> the three executives are leaving on their own volition. they know what's going on. last week you had to that were fired and they say and you saw this filing by twitter, they
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still expect the elon takeover and wall street doesn't really agree with right now, that is a record spread between how the stock is performing compared to the offer price. we have that spread. i looked at the bloomberg survey 11 out of 13 on the market expected to go through at a much lower price. i would imagine that somewhere in the 40s or so. take a look at tesla, it's the correlation when you have tesla up, twitter down and today tesla down because we had a few target price cuts, the mp cutting the target of $600 which i thought was bearish, that's the fact that china subsidy could be extended to next year. stuart: can you give us the big picture on the big tech there is a modest bounce yesterday, down today, what is going on.
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>> let me ask you this it depends on whether or not you think were in a bear market. were close to teetering for the s&p 500 on 20% from recent peaks you have the nasdaq down 25% on the year. some individual news from these companies, amazon launched a 60-dollar tablet which was interesting in the ten year anniversary of meta or facebook when it listed on the nasdaq ten years ago. stuart: it's only been ten years? >> the copy has been around 15 or 16 years. stuart: we remember the ipo zuckerberg. >> it ring the bell in california at menlo park. i would note that meta and facebook itself has lost $500 billion in market cap since the reorganization of the metaverse. >> can you imagine half a trillion dollars lost.
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>> it was closer to a trillion dollars now it's lost half of that. >> can you tell me why netflix is down. >> this goes back to her why netflix is laying off 150 workers not a lot because they do employ 11000 around the world and this is part of the new strategy after losing customers and subscribers for the first time in 11 years. were expecting that to be launched sometime later on but i want to ask you this netflix is laying off people and you heard about companies like meta and uber who are slowing hiring and coin bases their freezing hiring right now in cavities like robinhood are laying off staff like netflix and people are saying we are not technically in a recession right now but doesn't feel like it when the jobs market is shrinking? >> it sure does to them. it feels like it you can get that feeling. caterpillar this morning, the sales force, top of the list on
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the 500 list. they are going up, going up. those are the nasdaq winners, i'm dying to see the big name big tech on that list but so far no show, the big board is down 1%, the dow industrial, the ten year treasury just shy of 3% yield gold 1811 per ounce down slightly, bitcoin 29500, oil going up this morning, $113 per barrel and the average price for a gallon of regular gas is also not gas $8.46. the average price for regular gas up to another record i-4 dollars and 57 cents. in california the average price for regular gas in the formerly golden state $6.5. how about that.
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one congress claim officials are keeping the truth of ufos from the american people. watch this. >> anything for the american people cannot handle what is going on, i think it's ridiculous. >> to believe in aliens? >> i believe there is something that is out there, i really do. >> renowned physicist is here a little later in the show. new tax filings reveal how black lives matter on real estate in their own personal security. we have the details, corn hitting the highest price in ten years china that benefit farmers, alas the governor. he is next. ♪
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stuart: that is nebraska looks really attractive, 83 degrees on this wednesday morning. that is pretty good. the next case, the war in ukraine straining wheat prices and india is hoarding their week crop that has wheat prices at record highs. madison alworth we found a wheat farm in new jersey and that's where madison is right now when will the week be ready. >> this is good to be ready for harvest in july, right now it's green really tall grass but woody becomes golden in july they will produce as much as possible, this week is so high in demand because of the things that you mentioned the war in ukraine and india not only is that driving up the cost the
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cost to create wheat in any farm good is way up. i want to give you an example of that fertilizer has jumped tremendously taking a look at the popular fertilizer those are up about 70% in cost this year. significant driving up the prices. another big thing this weekend india had weather issues now they're limiting the exports to only certain government agencies otherwise teaming it for themselves this is driving up globally i am here with farmer scott, i want to start with the cost of production fertilizer we see the prices are up, for you the farmer who buys it how much more are you paying and how is that impacting your crops. >> were double of everything fuel and fertilizer right now. if you borrowed a million dollars last year, you're borrowing 2 million this year. >> you have 300 acres of wheat and you sell it at each price
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point you sold at seven and then $8 an hour at $12 you think the cost of wheat is good to go up more. >> i believe everybody worldwide is still having problems, it could keep on going. we have a lot of mouths to feed. >> did you have any problems selling your week? >> isolate through broker and they seem to have no problems at all. it went well. >> this product here is good to be ready in july they're working hard to get everything done probably to increase and do more if possible but you cannot keep up with the demand with the limited supplies. back to you. stuart: you should've asked him for the price of diesel for his tractor it's costing me a small fortune for it will bed back to you later. look who's here now pete ricketts the governor of nebraska the cornhusker state. the price of corn is the highest in ten years. i would've thought that would've
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been good for corn farmers in your state, is it? >> is certainly good to have commodity prices higher for farmers but a couple of things you been talking about the cost of input you mentioned diesel diesel is up over $5 a gallon, that is three times what it was last year. we look at the cost of nitrogen fertilizers. that is a four times from where was in 2020. texas a&m has done a study in the predicting farm income to go down this year because corn prices are up, the cost of input is up even more and that means farm income is going to go down. stuart: the money charge to us consumers is not filtering down to the farmer who produces that? is that true. >> they're getting paid for the corn but the problem is having to pay for the diesel in the fertilizer and everything else to produce the corn. the input cost when it cost them has gone up more than the price of corn itself.
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>> we have diesel national average price at $5.58. we are hearing that gas and diesel prices are good to go up a lot more this summer. j.p. morgan is predicting 6-dollar gas the summer. what do you think that will do to your state with those kind of prices? >> it's gonna put a huge burden on not only are farmers and ranchers with the cost of diesel but everyday households because that's a big part of their budget. this is where the biden administration has really failed with their war on fossil fuels, they have not taken a balanced approach, i don't think they've had a successful auction of federal land for oil since they have been in office. that used to happen every quarter and every six months, they just canceled in alaska in the gulf of mexico. when you cut off the supply like the biden administration has. in demand keeps going up especially with the war in russian ukraine adjustments prices are good to go up, the biden administration is responsible for the high prices.
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stuart: are the folks in nebraska angry about this. >> yes nobody's happy about paying more it gets back to the farmers and ranchers, even though corn prices are to tenure high enough 50% and you have diesel up it's a real hit on the budget. stuart: everybody feels it, you get a shock when you see it and pay for it. governor ricketts, thank you very much for being here, i hope to see you again soon. >> thank you for having me on. coming up why is gas going up so much so consistently. is it just supply and demand alaska oil experts stephen shock about that. rising gas prices not expected travel over the memorial day weekend but what about very high airfares. all last travel guide jeff about that next.
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first psoriasis, then psoriatic arthritis. even walking was tough. i had to do something. i started cosentyx®. cosentyx can help you move, look, and feel better... by treating the multiple symptoms of psoriatic arthritis. don't use if you're allergic to cosentyx. before starting...get checked for tuberculosis. an increased risk of infections some serious... and the lowered ability to fight them may occur. tell your doctor about an infection or symptoms... or if you've had a vaccine or plan to. tell your doctor if your crohn's disease symptoms... develop or worsen. serious allergic reactions may occur. watch me.
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it hit demand, when do people say i'm not quick to take the trip. >> it did hit demand 19% from march to april was the largest increase ever in the airline and bookings i pulled the numbers looking went down 70% from march over april. is causing people to back off the fares are 33% higher than they were last summer and hotels are costing 42% more than they did last summer. it's a really scaring people off. >> we were thinking about a summer travel boom a couple of months ago. i guess were not to get about one now. >> we did not take into account how serious the pilot shortage was in the report that you did on fuel prices, all of those things are causing there to be less flights which is driving
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the price up. some people look around and see the plane is full but it's way less flights due to the pilot shortage, it is not looking like we hoped it would. stuart: is this a signal we might head towards the recession. >> i think it is, i'm not an economist to be clear about that. but i sure don't like the signals that are out there all of these factors combine certainly do not look good. >> you don't see much of an improvement in business travel at this point. >> definitely not, you and i discussed this many times we knew it was going to be slow but this is slowing it down even more the technology is doing better for business, a lot of markets like asia, china, japan are still not open for travel, a lot of international travel that business covers is not happening either the recovery is slowing down if anything it is certainly
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not accelerating. >> you know what we like about you you tell it how you see it and you told us how you see it is kind of negative but we appreciate the truth. thank you for joining us you again soon. check the market still firmly in the red, the dow is down 445 points, brian kilmeade, will cain, carol markowitz and renowned physicist on the ufos. the 10:00 o'clock hour of arnie is next. ♪ with my hectic life, you'd think retirement would be the last thing on my mind. thankfully, voya provides comprehensive solutions, and shows me how to get the most out of my workplace benefits.
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stuart: good morning. it is 10:00 eastern. let's get straight to the money. we are down again, 460 points, the nasdaq is down almost 2%.
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well below it now, $112 a barrel slightly lower today and bitcoin, last time we checked, 29-2, it is 29-2 as we speak. a lot of selling today. now this. anyone interested in politics had one question this morning. how did trump do in the penciling of primaries? he wasn't running but trump policy and influence were on the line. the big race there is important for future control of the senate and it is where trump jumped in with a high-profile endorsement. he backed dr. oz because he thought his celebrity would make him a winner. kathy mccormick asked for support and didn't get it. the race is too close to call but trump's power is all over the senate race. he has influence in the republican primary for governor. his pick, doug mastriano
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easily beat the challengers. look at the democrat side for a moment. i have to wonder if trump didn't have influence on the other side of the aisle. a man of the people won, very much in trump style, wore a hoody and shorts the campaign. his opponent, the biden style button down connor lamb lost big. one more point. there are 550,000 more registered democrats in pennsylvania than republicans. and yesterday's primaries, 130,000 more votes cast on the republican side. trump got the turn up out. trump got the turnout up. if that continues trump and the republicans look good for november. that's my point of view and i'm sticking to it. second hour of varney just getting started.
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stuart: i shall recover from my problems with my mouth. if these primaries are a referendum on trump and biden who do you think looks good. >> biden is invisible. who did he like in the primaries? connor lamb. he never campaigned in this around for connor lamb but everyone knew that was his preference. even -- federman was in the hospital the last two days, made no difference, basically connor lamb is an empty suit, establishment kind of democrat president biden likes and did not do well. one of the few places he did campaign was oregon's fifth district where he back the guy named schrader who was losing terribly to a progressive out there that president biden did not want to win. the democrat side was a little progressive versus moderate, progressives are mad because biden came out mostly in favor
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of incumbent moderates. that party schism continues to be huge for democrats, we don't talk about it because the media would rather focus on the schism in the republican party. stuart: reading the news coverage you are right, the media wanted to concentrate on the shortcomings of trump and never said anything about biden being absent from the campaign trail. go ahead. >> the hill wrote a column and biden uses power to boost moderate and everyone interrupted in laughter because what power? a lot of democrats declined including federman in the first round of his campaign to appear with president biden because his polling is so terrible, approval ratings are so low, they knew it would not only be a plus for them but could be, we see this too, it could be negative for the candidate to
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show up with president biden. that is where he is. as to trump he was all over all the races. whether or not he backed a candidate everybody, just about everyone i can think of ran on trump's policies if not with trump's endorsement including people he didn't endorse like the rival for dr. oz in pennsylvania. everybody in that race including barnett who was a late comer all ran on trump policies. the media would like to see dr. oz lose. this is so stupid. it is not stupid from democrats point of view, he has enormous name recognition. that is a big thing in politics that everybody knows, he polls very well with black voters and that the big deal in
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pennsylvania, places like philadelphia because he has long-standing friendship with oprah and that helps them in the black community. people backing dr. oz recognize he had a good chance in the general election. what is funny to me is washington post, new york times had some slamming our line because he is kind of squishy from the conservative point of view on issues like abortion, you would think they would celebrate that but they don't because they want to see trump lose. at the end of the day trump losing is all i care about and it is a sad thing. stuart: good analysis. appreciate it. let's get back to the economy. the ceo of wells fargo has a grim outlook for the economy. lauren: a downturn is inevitable. >> it is going to be hard to avoid some kind of recession. the fact that everyone is so strong going into this should
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provide a cushion such that whatever recession there is if there is one is short and not all that deep. lauren: a mild recession thanks to strong consumer and sprung businesses but the question we are raising today as you look at target news, walmart news can the consumer keep us out of recession? our personal balance sheet strong enough, 1/4 of household wealth is tied to equity so people feel poor right now, prices are going up for stuff they buy but their investments are going down and goldman sachs said we are tapping into credit and mortgage equity. to buy stuff, to go on vacation. those are things we have to watch if you are looking for economic downturn or already be in recession. stuart: just a lot of negative forecasting. we should bring in michael we. market watcher of the morning. a lot of people on wall street see in the recession later this year or early next year. do you see a recession?
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>> depends how you define that recession, two quarters of negative gdp growth? three quarters? a high probability but are they minus half a point or 5 or 6 points? dramatic downturn or a slow down that takes negative year-over-year growth? i say probably the latter, we go into this with an extraordinarily robust labor market, twice as many job openings as people that are unemployed right now, pretty healthy. consumers pretty healthy although that is starting to deteriorate. the problem for stocks is not so much the economic slowdown. a lot of that is priced in. people thinking about the overhang coming from the balance sheet. next month the feds let $45 million go off their balance sheet and in september
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it will be 90. if you recall in 2,018 it was the greatest year of earnings growth in the history of the s&p 500 but the stock went nowhere because the fed raised rate 6 times and but one trillion dollars run off of the balance sheet. stuart: is the worst over on the stock market are not? >> maybe we see another 3% to 5% downturn but i think we are in a volatile range. i don't know the bottom will fall out because earnings are missing expectations but not horrible. the target is trading at 10 or 11 times earnings after the dramatic selloff. that is very overdone, 15 or 16 multiple on the s&p. i would be buying the consumer staples on the back of walmart and target earnings getting oversold. what these retailers are saying is people buying necessities
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more than discretionary items. i am not going to stop shaving regardless where the economy goes. my beard looks terrible. stuart: you used to be the super bowl and were for many years but not now. last word to you. >> we had tremendous equity bull run from the election of 2,016 or out of the financial crisis. to give back 15% to 20% of those gains, not the end of the world, bonds down double digits, we come out of the other side strong on this. stuart: blake lee, thank you very much. the dow drops some more, down 500 points from the dow industrials. some movers moving big time. best buy and target. lauren: their cost hit margins.
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fewer electronics, appliances and business, sales report yesterday, electronic and appliance sales fell 5. 2%, showing up on the report card of target at best buy. stuart: for our radio listeners target is down 25%, on the screen, down 25, selloff, another retailer. lauren: i thought they would be down but they are number one on the s&p, that is a big deal today, a down day. they forecast annual profit above street estimates because they are protecting their margins by charging higher prices. stuart: as long as we pay the high prices they keep the budget. how about the analog devices. lauren: the story is good. a chipmaker, they up their guidance, they increase their output. how do you do that with the
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supply chain for the chipmakers. they were able to grow their margins by 9 percentage points. stuart: i want to get to space x, elon musk's operation, the most valuable us startup. space x is worth $120 billion. lauren: maybe one of them is elon musk financing the twitter deal. stuart: that is incredible, tesla and space x. elon musk is talking politics. >> this administration doesn't get a lot done. this election i will.
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stuart: just to be clear. musk voting republican. brian kilmeade will take that on shortly. biden is, quote, finally going to stop trying to work with of the gop and go on the attack. when has he ever cooperated with the republicans? second hour of varney just getting started. ♪♪ customizing your car insurance, so you only pay for what you need. if anyone objects to this marriage... (emu squawks) kevin, no! not today. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ lemons. lemons. lemons. the world is so full of lemons. when you become an expedia member, you can instantly start saving on your travels. so you can go and see all those lemons, for less.
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first psoriasis, then psoriatic arthritis. even walking was tough. i had to do something. i started cosentyx®. cosentyx can help you move, look, and feel better... by treating the multiple symptoms of psoriatic arthritis. don't use if you're allergic to cosentyx. before starting...get checked for tuberculosis. an increased risk of infections some serious... and the lowered ability to fight them may occur. tell your doctor about an infection or symptoms... or if you've had a vaccine or plan to. tell your doctor if your crohn's disease symptoms... develop or worsen. serious allergic reactions may occur. watch me. stuart: a deep selloff, dow is down 460 points, the nasdaq is
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down 200 points, one. 6%. plenty of red ink this wednesday morning, big tech all down. every single one of the big tech stocks is down. apple down to $146, microsoft is down to 260 one, google $44 at $22.85. . in the early days of the russian invasion a photo of ukrainian parliament member holding an ak-47 slung over her shoulder went viral. greg just caught up, what is the update? >> reporter: interesting stuff. let's get to breaking news, according to the russians, 1000 ukrainian fighters have surrendered and are being evacuated from that mariupol steel plant. we could becoming close to the end of a brave and bloodied three month siege there and that is one more chapter in the ongoing war in which one woman
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like many play a high-profile role, take a look. early in the russian invasion she was a symbol of defiant ukraine. pictures ukrainian member of parliament learning to use and with a russian made ak-47 rifle went viral around the world. the 36-year-old says she is still ready. >> i'm training with it. if something happens i will be able to protect myself. >> reporter: the russians were repelled but fighting on and their hoarders are evident. what occurred firsthand, sexual assault by russian soldiers on women. >> i can tell you, very complicated and tragic stories. >> reporter: children are disrupted by war. >> the generation is gone, we have children who know how to behave when you hear air raid sirens. >> reporter: targeting of
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civilians and residents, war cries by the russian leader. >> putin is taking the hitler playbook, going step-by-step. >> reporter: of ukraine has any opera future it must push russia out. >> it could be a very high price. >> it is but haven't we paid a high price already? >> reporter: amazing stuff. she also played a key role in helping get those ukrainian fighters out of mariupol, shows you how men and women across the country are doing that. stuart: thank you very much, see you again soon. let's bring in dan hoffman. why was the ukraine war considered an intelligence failure on our part? i thought we correctly predicted the troops were coming and were about to invade. you said it was an intelligence failure. why?
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>> you are right about the success. we did accurately assess russia was going to invade ukraine, we shared that information widely with the equivalent of a live feed of russia's military operations. we expected russia to dominate ukraine and overrun kyiv and topple zelenskyy's government. we offered president zelenskyy air evacuation the day after the invasion began and zelenskyy said i don't need a ride, i need ammunition, the fight is here. how about that from a guy who knows how to portray himself to the media, had he accepted that ride, we would have filmed feeds of a massive intelligence, strategic failure on our part. stuart: we overestimated russia's ability to act successfully on the battlefield, overestimated their capacity.
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>> we overestimated what was a hollow force, underestimated ukraine's capacity to fight, something the director of national intelligence highlighted in open testimony and i think it is something congress is focusing on. we need to get this right. our gathering and analysis especially related to taiwan and china, don't want to make the same mistake twice. stuart: putin seems to be acting strangely. there is speculation about his failing health. what do you know about this? >> there's a lot of speculation from everything i can gather. he has injuries, back injuries likely resulting from his practice of judo. no confirmation he is suffering from anything more serious, cancer, parkinson's, all the things he is rumored to have, but time will tell, something our intelligence community and leadership analysts and medical professional tracking closely. stuart: thanks very much. finally got a number on how
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many civilians have been killed in ukraine. good morning, how bad is it? ashley: according to the united nations, 3700 civilians have been killed in ukraine since russia's invasion but the un high commission of human rights estimates the total number of civilian casualties in the war exceeds 7814, that would be with 7052 killed, 4062 injured, the commission says the actual totals are expected to be considerably higher as russia's billiter continues to occupy much of ukraine's eastern cities were intense fighting goes on. most of the deaths and injuries have been recorded in the donetsk and luhansk regions in the east where most of the fighting has taken place. blue one thanks very much. summer right around the corner which means we will be pumping up the air-conditioners. it is going to cost you a lot more to keep cool, we will tell
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you how much more you can expect to pay. two weeks from memorial day weekend, jpmorgan's warning of $6 gas this summer. we will get into it with stephen sure next. ♪♪
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coventry direct, redefining insurance. stuart: summer time. that is a beautiful view, that is ocean city, new jersey, 62 °. if you like the music we play follow us on spotify, search "varney and company". the market still in selloff mode, the dow close to 500, nasdaq down close to 200. we have some movers. start with the container store which is up 8%. >> record sales book to their first billion-dollar year since they were founded in 1978. here's the message of this,
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home prices are high so many people are making the most of the space they have. stuart: they are still around. penn national up 2%. >> shares are undervalued at the market is not assigned media assets and regional gaming is stable in any economic cycle. stuart: or part of it. i need glasses. lauren: across the street yesterday i bought two pairs of glasses. they are in transit right now. it is a bootable business model, stock is down, goldman sachs. a strong brand, great concept
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but likely parker falls victim to the larger macroeconomic backdrop. stuart: did you buy 4 pairs of glasses? a couple hundred dollars each? lauren: total 240. stuart: cheap to me. in new york city? what am i missing? maybe i will get some glasses. lauren: they already shipped. and two days i will bring them in. of the one back to energy prices because you've got a new high, record high for the price of gasoline, $4.57 on average before the summer driving season. grady trimble talking to drivers, are people changing travel plans because of prices? >> not yet. not the drivers we talked to but that strong demand for travel this memorial day and beyond could drive up prices even more. this station went up $0.14 overnight. rattling off some more numbers the national average went up
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$0.04 from yesterday, $0.16 from last week. all 50 states are now about $4 a gallon, 6 states out west including washington, oregon, california and nevada about $5 a gallon and the rest of the country according to some analysts might be joining them soon. a national average of $5, even $6 a gallon could be coming. >> every day i come here to work and it goes up 5 to 6. it is not good. it is not getting better. >> crazy to pay that much for a gallon of gas. thinking of going electric myself. >> reporter: probably a lot of people thinking of going electric. another warning about the price of fuel from the ceo of occidental petroleum says her expectation is it is going to get worse for consumers, new production is insufficient to meet demand. oil will stay at high prices
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and gas prices will stay high as well. i wish i had better news but this is the ninth day in a row we hit a record high for the national average for a gallon of gas. stuart: look what it is doing to the market, moving further south, the dow is down one. 56%, we have recession fears, rising interest rates and energy price inflation, markets down. stephen short is our oil energy expert. why is gas going up so much so consistently? is it a supply and demand thing? >> absolutely. the great thing about comedies is supply and demand and how they interact across the x access price. gasoline prices are victim to an industry that has not invested with infrastructure.
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in philadelphia we were and still are a shell of ourselves, the houston of the east coast, the primary epicenter. when our refinery capacity, east coast refinery capacity has been cut by 40% over the last three years the loss of this capacity was met by the decline in demand from covid mitigation but we are at a point where demand stormed back and it will be strong and we don't have the capacity in the east coast to manufacture gasoline the way we did 3 years ago and we are constrained with our refineries on the gulf coast as well, not enough refinery capacity for the demand coming to the market. stuart: i'm sure you have seen this but jpmorgan is saying $6 gas will be with us by the end of the summer. is that possible? i wouldn't have thought people would pay it. >> it is possible. our modeling has been handicapping that eventuality
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by the end of the year, between 11% to 13%, $185 crude oil, the pricing we need to see of gasoline, $6 a gallon. it is a possibility. what we know is the other day the futures market for the first time ever traded $4 a gallon wholesale. when we convert that, that means another $0.30 rise as we get into the summer. gasoline prices $4.50, now looking at what the future czar, $4.80, you are knocking on the door $5, that is a real possibility. to get to $6, 11, 12, 13% probability we get to $180 royal and then $6 a gallon and therefore it is a race. every recession in the united states, and proceeded by
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precipitous rise in energy and food costs. the inflation on those two fronts we've never seen to this extent so if we are not in recession we are headed to recession, that is a given given these prices. do we get to $6 before we go into recession or $6 in the recession. stuart: $5 gas for sure, $6 possible, recession very likely, thank you for joining us. not good news but we will see you again soon. you are not just paying more for gas. cooling your house is about to get more expensive. do we know how much more expensive? ashley: the good news keeps coming. according to the us energy information administration on average there will be an increase of 3. 9% in 9% in the price of electricity for us households this summer. for the entire summer the agency projects the average household will pay just under
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one% more for electricity compared to summer last year but the high price as you talked about on oil primarily driven by supply and demand especially with natural gas which provides 38% of electricity needs. experts are warning it could be particularly expensive for the northeast. households in new england estimated to pay 16.4% more this summer as it relies heavily on natural gas to fuel electricity. get ready. big bills coming. stuart: that is the story, up 16% for electricity in the northeast and i live in the northeast, you don't. ashley: i will be -- stuart: the cdc added four new countries to the risk of high travel destinations, we will tell you which countries and amount. homes of gotten so expensive quite a few people, buyers foregoing inspections trying to cut costs. is that a good idea? we will talk to the housing
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neil: we are sitting further south. the dow is down 550 points. that is 1.68%. that is a selloff and bitcoin nowhere near 30,000. it is looking just above 29,000 as of now. latest read on the housing market, housing starts and building permits flipped a little in april. housing expert mitch rachelle is worth -- with us. light slippage in permits, what does that tell you about that. >> predicted that was going to happen. aside from that it is more a
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supply of people, workers and they are not going to build permits when they can't get refrigerators. it is more materials and labor shortage about the broader housing market. stuart: any sign across the country where home prices level off and come down. >> lower-priced homes and some markets that aren't the hottest markets are seeing wobbly nests. it is not systemic, and demand, demand exceeding supply like stephen said about oil and gas. stuart: do we see bidding wars anywhere? >> an interesting thing, we are at the precipice for the home
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buying season, looking at schools for the fall. inquiries a year ago, the questions, whether schools are open, now it is regular inquiries at the level traffic is the same, and abundance of new supply put on the market. to stop up that demand, bidding wars coming this spring. stuart: i want to talk about how some homebuyers feel they can skip the inspection, to save costs. >> unbelievable. 85% say they need to forgo the
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inspection, the insurance, if you are buying the home, it is good for the seller, they can make the deal go faster if they find a problem. it is great for the seller. stuart: real fast. didn't you mention rents? back to rental bidding wars. >> this is unbelievable. you saw the medium rents up 50% in the past year, 46% in austen, 46 in portland and look at florida above 30% but 15% gain is actually the slowest in a year. rents are eye-popping lehigh across the nation in these cities especially are they starting to slow? stuart: are they? do you see bidding wars parental property? >> you can see bidding wars for rental properties.
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we have this excess demand for housing and supply, not in the buying market because they can't afford it, and a lease rolling over somebody paying 13,000 a month. so many need the space, $18 a month, will the landlord say no to that? that is what is happening. in new york city landlord last night, basically the vagrancy rate is 2%, 3 or 4 days downtime between one tenant leaves and the next moves in and they will get as much rent as they can. lauren: it is cheaper to stay sometimes. you pay more extensive rent, a couple hundred a month but in terms of moving everything and finding another place. stuart: fascinating, stockmarkets come way down,
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cryptos have come down. a lot of assets of come way down but not real estate. that is not cracked at this point. stuart: next time you come let's hope it hasn't cracked. coming up we will talk to brian kilmeade about how trump backed candidates performed in the primaries and we will talk about elon musk. is blasting the administration for not getting a lot done. he might vote republican. more varney next. ♪♪ we all need a rock we can rely on. to be strong. to overcome anything. ♪ ♪
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stuart: this is an ongoing story, energy price inflation, it is getting worse. $5, $4.50 is the national average for gallon of regular gas, $5 in western states and $6 in california. as for diesel, another brand-new all time high, looking at $5.58 per gallon. now let's get back to the
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market, the dow is down 500. the winners, start with the dow winners. on the screen, verizon, caterpillar and diesel, down stocks on the upside even though the dow is down 500. nasdaq winners, charter communications, american electric power, the s&p 500 winners for headed by tj x, that is retailer which is doing very well today unlike walmart and target. 10:50 one, time for brian kilmeade joins me now. the washington post is now reporting disinformation board is on paz, nina jankowicz is considering leaving. glad to see this go? >> so effective when it was in use and she was so nonpartisan. a wonderful singing voice. so well respected. i watched bill maher rip it on
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his monologue on hbo friday and you just know how much is disinformation. what are we doing now? following the durham trial. he has michael sussman up there, 5 years since the mall report started. all of that was a waste of time. if you talk about what mother did that is disinformation because there was no investigation and durham, looking to find out how this whole thing started, michael sussman, we should take down his tweets when he was pretending to be nonpartisan. we should forget about him. you can't possibly think this was a good idea. stuart: what a joke. i've got to talk about the primaries yesterday. first question. did trump's endorsement work for the candidates he back? >> he has a lot of layups, like rand paul anyway. over 70 wins.
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if dr. oz doesn't get the endorsement, donald trump is not on the doorstep of victory but what makes it impure is as soon if we were to run in a senate primary, you would get donald trump's support but if i was to stay in the race i would say donald trump likes stuart but i like everything donald trump did and i will do the same policies without the theatrics donald trump brought to the table so governor hogan of maryland or governor christie who become very anti-trump so i don't have a clear break of what it means, trump will get his first big loss in the governors race in georgia. stuart: on the other side of our offense, where was biden? biden was nowhere in these primaries. that included pennsylvania. last word on this. >> scranton, he is from pennsylvania and didn't want him to show up, the guy who won
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is not connor lam, should have the best shot in a purple state but the left wing democrat which is what president biden says he isn't so good luck with that because he is remarkably unpopular. everything he touches falls apart, most things he touches are in the country we are sharing. stuart: i don't know if you saw this, musk might vote republican because biden has done nothing. what do you make of that? >> it is easy to find out when trump and biden disagree but when you have billionaires who can't be labeled right or left like jeff baize oh's and elon musk take on the president and his accusations whether it is billionaires or corporations, those horrible moms that want the extra sixpack of formula, now people are fighting back, school boards, pharmacies and
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billionaires saying i might vote republican because nothing president biden does in his words get anything done. stuart: if you were to give me the big picture on the forthcoming elections in november would you say it is going to be a knockdown huge win for the republicans? >> i do think matchups make fights and i might -- there are certain people all he would line up against and have trouble with, ken norton with fraser, would have no problem with fraser and no problem with norton, knock him out in 3 rounds but stiles make fight so individual senate races how they match up, there is a republican wave because everything resident biden has done from inflation to gas prices to the embarrassment in afghanistan to what he's not doing at the border, stopping people from coming in make you say if you want more of that i'm going with the other guy or the other woman so i think things are heading in the
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republicans direction and the democrats have earned the aversion america feels towards them in many cases. that is why president biden does not show up anywhere. he goes to georgia, stacy abrams says i have a conflict. stuart: the years. we are creeping up on $5 for gas and our standard of living is falling. are you better off now than you were when donald trump was in the oval office? that is "my take" and it is next. ♪♪
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>> this is a good day for the market because you put two states in a further republican column into november. >> markets are shaky. i think we have lower to go but don't know where the bottom will come. we think it will come in a few months. >> my biggest fear, the worst-case scenario i hoped would not happen but the bottom line is it was very clear yesterday they don't care about the markets. they will try to get inflation
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down and nothing they can do, fuel costs down our food costs down, this is the largest bubble of our lifetime. >> 33% higher than they were last summer and hotels are costing 42% more than they did last summer. it is already scaring people off. not like sugar pie honeybunch ♪♪ stuart: it is wednesday may 18th that you won't like to see what you are going to see on the markets because the dow is down 500 points. down 550 for the dow, 230 for the nasdaq and look at the s&p, down one. 9%. you've got significant selling and stocks across the board. the price of oil this morning moving to one hundred $11 a barrel, the 10 year treasury still below the 3% level, 294
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as we speak. taking it on the chin across the board. they are down. 2% down for microsoft, 2. 7% down for apple, one. 9% for alphabet, amazon down 4%, $100 lower and meta-platforms is down, we have serious selling across the board and now this. inflation is running hot, there are times price hikes come as a real shock. when you get the bill you think do i want to pay that much? i will ask when consumers start to pull back, close to that point. look what i saw this morning, the astonishing concession price is at the pga championship this week lodz for the benefit of our radio listeners, $18 for a michelob beer, $19 for stella, $14 for cheeseburger, a dollar hot dog,
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$6 water, $7, it is a special event. if you want to eat or drink at the pga you will pay through the nose. last weekend i was in florida, family vacation, what a shock, we ate in some quality restaurants, high end stuff. the price of andres, main courses had gravitated to the $60 range from $40 a year ago, cocktails $20 apiece. i am pulling back. went to my farm, filled up the ford f 150, $100. first time i ever paid that for any vehicle i ever owned. i'm not looking at this as an economist or an investor. i am looking at this as a consumer and i have to believe most people feel the same sticker price shock. you can see on people's faces in the grocery store. there is anger, despair, our standard of living is falling. you better off now than you were when trump was president? good question. third hour of varney roles on.
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will cane joins me. do you think anyone is better off now than they were under donald trump? >> undoubtedly know. i feel for you, $60 up from $40 a year ago but that trickles down through the economy. i understand your point, everyone suffering from gas prices to food prices, it is a situation where i don't think just economically but primarily economically everyone is worse off than they were a year ago and two years ago. stuart: politico reporting president biden will finally stop trying to work with republicans and go on the attack. where has mr. biden ever worked with the gop?
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>> when has he tried to strike a bipartisan tone? this is a man who described his opponents as in league with george wallace, jim crow ointment 5, whatever he called anyone who opposes his measure, tars them as racist. on top of that should you decide to remain unvaccinated through the last few years, this was a pandemic of the unvaccinated and his exact words is our patience has run out with you. this is the tone he struck with those who disagree and now he thinks i will be tougher. it is tougher with the gop. in my estimation observing here he hasn't been able to wrangle his own party. kristin sinema and joe manchin are the ones who pushed back on his radical agenda. forget bipartisan, he hasn't been able to coalesce his own party.
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stuart: what is the outlook for the november elections bearing in mind yesterday's primaries when i saw trump's endorsement of some candidates doing fairly well but biden almost absent from the field. apparently lost my microphone. can you hear me? you can't. >> i've got you. stuart: can the audience hear me? i don't know. >> can you hear me? >> i can hear everybody. stuart: the question i asked, go ahead. >> the first endorsement by donald trump seems in jeopardy, dr. oz came with his own issues and inconsistencies when it came to policies, donald trump's endorsement meant a lot through the primary season. president biden, i don't know the influence he strikes and what it will bring to the midterms but doesn't look
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positive. i will leave you with this, getting the worst advice, reports are the new tone, karine jean-pierre says the more angry, his wife says be more tough, be more unscripted. ask yourself is that the appeal in president biden, the unscripted and angry joe biden, no place on no issue they turned where they have struck a winning message. stuart: the ruling live television is when something goes horribly wrong you smile and get over it and continue, you did very well. thanks for being with us, thanks very much indeed. i think we have recovered. you can download back to the markets, we just moved further south. the dow is now down 636 points, 1.9% and the nasdaq is down
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269. a real selloff going on. mark tepper with us this morning. is a deeper and longer than anybody else? >> things are looking ugly. looks like the fed is going to be increasingly more hawkish, may be twee 8 hikes are being priced in this year. inflation is a big time problem and if you think about it, 2 thirds of americans are living paycheck to paycheck. they care less about what is happening to daily fluctuations in their 401(k) than they do their personal cash flow. do they have enough money to last until the end of the month or put food on their table? gas in their car? that is the main concern many americans have and you got to fight inflation. stuart: how do you play this market? >> there is nowhere to hide. you've got to be defensive.
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cash is not a 4 letter word. as long as you're willing to be opportunistic with it. if you can take a cash and sit and to be patient, invest it when the market is down 10% that is a great option or with the holdings that you have, be as defensive as possible. you want to own large capital, small-cap, last week, i'm embarrassed to say, would have should have could have, doing that instead of last week. we bought more mcdonald's which is a more defensive play, or planet fitness which has the best business model in the world, 10 a month, it costs more to put gas in your car to drive to the gym to cancel your membership. blue a when you are very honest coming out of that target. >> i have to be transparent. stuart: that is why you are here. elon musk wants the sec to investigate twitter's fake scam account estimates.
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20% of users could be bought. is he trying to back out of the deal? >> i'm concerned about that. i brought this upon making money and when elon announced he was going to move forward with twitter, tesla stock is our thousand dollars a share. 750 in the 700, don't know if we can pull that up but he's using that as collateral to finance the deal. tesla stock has come down that presents a potential issue. where there is smoke there is fire and there is no doubt there's a lot of fake accounts and if twitter did fudge the number we are talking fraud here. stuart: that is a big deal, actionable. we you are with us for the hour, you lucky guy. amc, start there. lauren: amc, 6.8% stake, that is an advertising company and
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the ceo, more transformational deals, this is one of them. stuart: marriott hotels. lauren: travel crowds are forming. that is what morgan stanley said. they are down not by much when you have the markets filling up 600 points but they are down. if you look at how much revenue they get, it is starting to slow in the current month of may. travel clouds are forming because people feel a lot poorer right now. stuart: a single about the overall market. dollar tree, dollar general. lauren: that is where people go because you can buy food for one dollar and $0.25. . stuart: they are going to be squeezed. there imports are going up, profits squeezed. is that it? lauren: in my opinion we were talking about it. can't make much money on the groceries. >> the margins are getting
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squeezed which makes it harder. lauren: what we heard from target is hurting the retail sector with few exceptions, t.j. maxx is the only exception i found. >> consumers no longer willing to pay your investors are consuming consumers trade down from full price merchandise off-price. of the one that is what i was saying in the editorial, you come to a point where prices are up so much you the consumer say i am not buying it. demand destruction. next case, elon musk warning about china's economic growth. watch this. >> what we are going to see for the first time anyone can remember is an economy that is twice the size of the us, 3 times the size of the us. we won quite a prediction. what does gordon chang think of that? he is on the show coming up. washington post opinion piece suggests the leaked supreme court draft is about protecting
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whitenests. netflix standing up for free-speech is proof we had enough of the woke police. she is here to explain next. ♪♪ ♪♪ these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay.
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we'll send you our exclusive bond guide, free. with details about how bonds can be an important part of your portfolio. hennion & walsh has specialized in fixed income and growth solutions for 30 years, and offers high-quality municipal bonds from across the country. they provide the potential for regular income...are federally tax-free... and have historically low risk. call today to request your free bond guide. 1-800-217-3217. that's 1-800-217-3217 stuart: at around of layoffs, netflix cutting 150 employs, 2% of the total workforce. tepper still with me for the our. 's networks in trouble? >> streaming overall is in trouble. think back to the court cutting
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theme from 5 years ago, one of the biggest value costs to the consumer is why would you pay one hundred $50 a month for cable and have a thousand channels when only 3 you watch when you can switch to streaming so you get netflix and all that stuff and then realize how do i watch a live soccer game or live football so that you get hulu or youtube, then you are back to $150 a month. netflix stock is in the penalty box for the next 2 or 3 quarters. at some point it will rebound but it is on the no touch list for the next 6 months. stuart: it was such a star. here's the headline, netflix is proof americans have had enough of woke speech policeing. carol markowitz joins us now.
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which woke netflix items are you talking about? >> reporter: netflix announced yesterday they are pulling some shows including antiracist baby by doctor candy who popularized the idea we are all racist including our babies and we need to be taught out of it so among other things they are changing, the key thing in terms of netflix is not the change in programming although that is a start, they told their employees if you don't like what we are showing, don't like our programming, their is the door, that the big move for a company like netflix. stuart: it is a reversal, they encouraged that kind of stuff on their streaming service and now contradicting it. a real turnaround. >> absolutely a turnaround. dave chapelle's special where
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netflix employees walked out, release private information to the media about the event and a lot of things went on around that really alarmed people. dave chapelle was attacked on stage in la, this is part of the same thing where you are not allowed to say very obvious things. he is a comedian, he should be able to say what ever he wants to say and not 20 magnetics employees are crazy people attacking him in la to stop him. stuart: new york city has raised its covert alert level to high. officials recommend masking up again in public places. i was in florida last week, not a mask in the site. i don't understand, florida is totally open and free, new york getting ready to mask up again. >> as always my offer to you to move to florida is still open. we are welcoming you with open arms but new york is unable to move past this, they believe they know how to stop covid,
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that these rises can be contained somehow. what we learned over two years is it is a virus, it cannot be contained, we can do our best to protect vulnerable people, tell people people to get vaccinated, have different medicines introduced, different practices at hospitals but all of this is impossible to stop. china could not stop it, australia cannot stop it, new york city cannot stop it and they should get out of the trying to mitigate it with masks and other things that have not worked. stuart: you left new york, went to florida, took your children and your family with you, you were down there for 6 or 9 months. are you happy? >> so happy. i don't know where i am. of new york brings back masking i don't think we will visit again. don't know where the masks are, never want to see them again, they haven't worked to stop spread and my kids are enjoying their life maskless.
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of the one we like an emphatic answers where you went to the question and you do that very well. thank you for being here. apple delaying their plan to have staff returned to the office three days a week. citing the rising covid cases, still exciting workers to come in two days a week. companies are going to have a hard time getting people to come back 5 days we, 9-to-5 in the office. >> my question, how much of this is apple being woke versus how much of this is employees, and digging their heels in and not coming back to work, 50/50, a little bit of both. employees not coming back to the office, my personal experience with apple is an issue with my laptop, took it into an apple store on may 4th, it was diagnosed as a simple fix, i need a new battery.
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last update from apple was may 7th. it is may 18th now. it has not been repaired. i don't know if that is a people issue or component issue but at some point customers will get frustrated. you know? you've got to get people back to work. if it is the people he should getting people back to work would alleviate the problem. stuart: they've not come back to the offices in midtown manhattan five days a week. three days may be but 5 not. the cdc just added four new countries to their covid warning list. ashley, who are we talking about? ashley: we are talking about the caribbean, in south africa and taiwan. maybe not top of everybody's list but the two omicron sub variants have propelled infections in south africa moving cases there from 300 a day early last month to 8000
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today last week. taiwan has also confirmed 75,000 new covid cases while there has been an uptick in some of the caribbean islands. the cdc maintains a list of countries, we have low, moderate, high, and special circumstances/do not travel. the good news is there are currently no countries on the do not travel list but 110 countries on the cdc's high severity list. be warned is what the cdc is saying. stuart: or stay home. thanks. markets still in the selloff mode big time, the dow is down 700, the nasdaq down 330, and the s&p is down one hundred 8 points, remember the china eastern airlines crash in march of this year, new data explains
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what went wrong. we will tell you about it. students at a university in beijing protected the school's covid restrictions and the school is backing down, that is a first. is it the start of something big protestwise? gordon chang on that next. ♪♪ ♪♪ i got into debt in college and, no matter how much i paid, it followed me everywhere. so i consolidated it into a low-rate personal loan from sofi. get a personal loan with no fees, low fixed rates, and borrow up to $100k. sofi. get your money right. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed.
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♪♪ get away ♪♪ from the big problems ♪♪ stuart: always good, you cover that? >> such a feel-good song. you need to talk about $18 bears you talked about last hour. this is a beer drinking song. you when i've got to talk about the stock market which is in selloff mode. the dow is down 750 points, nasdaq down 350, s&p down 11. it is a selloff. big louvers including the retailers. go through the retailers. lauren: the birthday since 1987 for target, walmart saw the same after missing earnings and that despite the disappointment
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in the first quarter for both targets and lowe's, they kept their sales guidance intact for the full year so given they were blaming inflation and supply chain problems, if they are keeping sales guidance are they going to absorb inflation pressures instead of passing it on to consumers, target, lowe's, walmart is down but look at the discount retailer, tj x, higher in the market environment especially if looking at a slow down in the us economy. i want to show you tesla, offering the texas made model-y for faster delivery. the bmp cutting there tells a target price to $600, piper taking down their target price outlook, 1050. if you listen to podcast, 90 minute podcast with elon musk, he talked about how quickly
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they built the factory 3 times the size of the pentagon. you can only do that in texas and speculative tech. it is interesting, the amazon is down 4% in session but these companies don't make profit right now, they pulled up heavily, 60% to 70% in the market downturn but outperformance, in spite of the fact that you look at the 10 year treasury yield which is pushing close to 3%, usually you sellout because it looks expensive when you get more money guarantee. stuart: it is really selling out, the dow is down 800 as we speak. thanks very much indeed. a strange item, north korea says 1.7 million residents have fever symptoms believed to be covid, instructing citizens to gargle saltwater as a way to treat the infection, the country whose population is
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unvaccinated claims this is their first covid outbreak. you believe that? >> i don't, they have been quiet on the covid front. it seems a lot of the world has had it at least once. i'm double vaccinated and had it twice. as for gargling saltwater maybe that's more effective than masks, cloth masks, maybe, just may be. maybe. i remember when the pandemic first struck in february, march 2020 there were medical recommendations to gargle, some sort of mouthwash to keep the virus in your throat before he went in the respiratory system. may be that is more effective than masks, maybe not. stuart: sarcasm is a low form of wit but you are good at it. students at peking university which is beijing, china, protested the school's plan to
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tighten pandemic restrictions, the administration backed down. do you think the discontent is growing in china over the 0 covid policy? is this going to go anywhere? >> peking university protest for the moment is not going to go anywhere because you have a communist party deputy secretary back down on sunday so the students said we will stop it, beijing is being lockdowns tighter and tighter. we've seen this over the last couple weeks so anything could happen. peking university is important, that is where the tiananmen square demonstrations started and the cultural revolution start as well. very emotional and cost a lot of insecurity for the regime. stuart: is it a tinderbox? close to a real protest movement that changes things? >> not in beijing but in shanghai it was the breaking point and that is one of the reasons the authorities have started to say we are going in
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a phased way to end the lockdown in shanghai. now i think they are serious because they see the people at the point where they can surge into the streets and because the commonest party a lot of grief. they have done that on a minor basis where people stream out of their apartments but throughout the city the communist party would be overwhelmed. stuart: that would be interesting. elon musk is telling folks to stop, telling americans to stop the infighting if we want to compete with china. >> what we are going to see, the first time anyone can remember in his life, and economy that is twice the size of the us, 3 times the size of the us, it is going to be weird living in that world. we had better stop the infighting in the us, stop punching ourselves in the face.
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there is too much of america punching itself in the face which is just dumb. stuart: you can see the day the chinese economy is two or three times the size of the us economy. can you see that? >> not this millennium. elon musk is extrapolating. extrapolation works most of the time but china is at a series of inflection points, the most fundamental is demography, they. 2 thirds of their population the century in all probability but the most urgent one is the economy itself. it is in contraction, deep into contraction when you look at the property sales which is critical for china. the reason this is more important for china that it would be for the united states or any other country is they've got to pay back a lot of debt. they accumulated this after 2,008 to get to the downturn. and annual gdp and debt, the
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hidden debt problem, china has to pay this back and it is struggling right now and with the contract the economy they can't do it. stuart: they are going to lose 2 thirds of their population the century. >> according to chinese demographers, half the population in 45 years. then do a little arithmetic and that says 2 thirds by the end of the century. stuart: that is stunning stuff. we got to get you to talk more about that. thank you, see you again. new details about the china eastern airlines flight which crashed back in march. do we know what caused it? ashley: the wall street journal is reporting the chinese airline are was put into a near vertical nosedive by someone in the cockpit. the china eastern airlines flight cruising at 20,000 feet before suddenly plummeting into the side of a forested
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mountain. aircraft controller had noticed the plane's up and drop in altitude and tried to contact the pilot multiple times but got absolutely no response. the initial report indicate plane's controls were used to fix their aircraft into a dive. investigators say they recover the black boxes on the plane, the cockpit voice recorder was sent to beijing and transferred to the ntsb in the us for analysis. stuart: deliberate. thanks. nbc's chuck todd said republicans are using free-speech to appease the white supremacist movement. >> this is always what the right does to appease the white supreme assist movement by saying free-speech. stuart: we are going to cover that thoroughly. newly released tax filings show the cofounder of black lives matter gave millions to her family, just a couple hundred thousand to actual charity
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stuart: newly released tax filings show how black lives matter spent their donation money. what do you have for us? >> $80 million foundation, 0 board meetings and one board member. the scrutiny is donor money to hire friends and family. three expenses stand out. blm gave $1 million to the father of the cofounders, patrice colors's child.
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840,000 went to her brother paul for security. and also hired her mother and sister to work at blm's la mansion. >> it is important that people understand while my brother is head of security and my mom and sister did work at the property it is not like i literally open up the bank accounts and was like i am bringing all my family and friends in. folks had skill sets. >> reporter: blm paid for consulting, he and two others now serve on the board, blm spent one. 2 million lobbying to impeach donald trump in the laminate bail. colors spent 73,000 on a private jet and used the la mansion for two private parties but later reimbursed blm from both. 25 million in prints are pretty when groups, they banked 40 one million dollars including
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$32 million in staff, supporters blame any accounting flaws on the >> i did not know why this happened to. something being weapon iced against us that many people don't know and don't care about. it is such a trip now to hear the word, the term, the triggering. >> it is the first time they've given any accounting over basically 7 to 10 years at all. family members should not receive donor money unless multiple bids are reviewed by an independent board, that didn't happen. blm had 50,000 volunteers, one paid employees, did not disclose any donors. stuart: i think you dug through that very thoroughly. it was good stuff. see you later. a new op-ed in the wall street push - washington post suggests -- washington post suggests the leaked rovio way draft opinion is about protecting whiteness. take me through it, make me understand it if you can.
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ashley: brian brew trying to link the buffalo supermarket shooting to the leaked supreme court draft opinion. the article he wrote was titled black people want their hate to stop but it is only getting worse and it claims the shooting suspect was not acting as only a white supremacist but in a way that right-wing politics have instructed him to be and adding this, quote, the leaked draft opinion isn't about protecting babies, it is about protecting whiteness, specifically white babies. the supreme court draft decision is about protecting what conservatives believe is a diminishing demographic and their most valuable resource, that would be white people. it is easy to draw a straight line between actions of the white supremacists and popular right-wing conservatives saying neither group can imagine a world where all people are
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equal and it goes on to say the supreme court draft decision is about protecting what conservatives believe is a diminishing demographic, and the most valuable resource, that would be white people. stuart: a similar line, nbc's chuck todd is accusing the gop of appeasing white supremacists. what is that all about? ashley: nbc's political director and host of meet the press says republicans are using first amendment protections to appease white supremacists in america. listen to this. >> look at the way the right tried to weapon eyes the dhs was going to try to attempt to monitor hateful rhetoric and make it seem as if it is some sort of big brother, this is always what the right does to appease the white supremacist movement by saying free-speech.
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ashley: republicans are raising concerns about nina jankowicz, blasting her as overseeing what they have described as an orwellian ministry of truth, but leading democrats blame republicans language on immigration and race relations for bringing what they call the fringe replacement theory into mainstream discourse. stuart: you explain it very well. i think i understand. players on the men's and women's national soccer teams have reached an equal pay agreement. world cup prize money will be pooled between both teams and split equally among all players. us soccer will equally share any money made commercially at that events between men's and women's teams. show me the dow 30, this is
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going to be ugly, a sense of a market, 30 stocks in the dow, 27 are down, three are up, the dow jones average itself is down 700 points 21/4%. the first hearing on ufos since the 1960s. watch this. >> 10 about nuclear icbms were rendered inoperable, glowing red orb was observed overhead. there are a number of events in which we do not have an explanation. we when i but michio kaku has an explanation because he is here next. ♪♪
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>> unidentified aerial phenomena are a potential national security threat. they need to be investigated. the threat they pose need to be mitigated. >> icms were rendered inoperable glowing red orb was observed overhead. there are number of events in which we do not have an excellent nation and a small handful in which there are
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flight characteristics, signature management that we can't explain with the data we have. stuart: all right, that was from yesterday's ufo hearing which was the first in more than 50 years. look who is here, michio kaku, ace physicist, joins us this morning, from the start, is there something out there? >> 50 years ago people concentrated on eyewitness accounts by members of the public who said they saw something in the sky. that's not enough. now we have hours of video tapes of seasoned navy pilots documenting things that can be analyzed frame by frame. these objects whatever they are can travel between block 5, and mach 20. that is 20 times the speed of sound. they can zigzag and maneuver creating g forces several hundred times the force of gravity. they can drop 70,000 feet within a matter of seconds. and get this.
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they can even swim underwater. so we don't have technology capable of doing any of these things. we do have hypersonic drones. the russians are using hypersonic drones to get the ukrainians in battle. these drones cannot do the kinds of gymnastics the we see these objects doing. right now we are clueless as to what could be behind these objects. they seem to exceed the capabilities of our finest craft. stuart: doesn't that imply there must be something out there because we cannot explain the movement of the craft which we see by military observers on camera frame by frame, that must mean there is something out there. >> that is a possibility. the military has laid out five alternatives.
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the fifth one was other and that includes extraterrestrial visitation. stuart: if we did make contact with aliens and we really did make contact with aliens, should we be told about it? >> i think we are mature enough to be able to understand the implications. it would be one of the greatest turning points in the history of humanity if one day we find conclusive evidence of extraterrestrial civilizations in our backyard in the milky way galaxy. we have movies that point certain way but we are not politically ready for it. our politicians are dragging their feet, sitting on a pile of videotapes they've not yet released. the government knows more than they let on. stuart: great stuff. i wish i had more time. i could talk about this forever. real fast, wednesday trivia question. it is may 18th.
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in 1980 mount saint helens erupted following an earthquake of what magnitude to q5. 1, 6.6, 7.5, 8.2? tepper and ashley will guess after this. when performance varies. invesco's s&p 500 equal weight etf, rsp, is spread equally across the s&p 500, which reduces potential concentration risk and helps keep your portfolio in balance. . . in two seconds, eric will realize (laughs) they're gonna need more space... gotta sell the house. oh... open houses. or, skip the hassles and sell directly to opendoor. wow. get your competitive offer at
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♪. stuart: on this day, may 18th, 1980, mount st. helens erupted after a earthquake of what magnitude. final guess, tepper. >> let's go 7.5. stuart: ash. >> i go all the way,.2.
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stuart: i'm 7.5 guy. show me please. 5.1. the last devastated an area 230 square miles. workers had to remove 900,000 tons of ash from highways and roads. 57 people died. making it most deadly volcanic eruption in u.s. history. >> good question. good question. >> thanks, man, appreciate it. dave, david asman, in for neil today. david: you can call me dave. we were all 7.5 guys. we were with you. we didn't see that coming. welcome everybody, to "cavuto: coast to coast." i'm david asman in for neil today. the stocks are selling off big time. snap a three-day winning streak. walmart and


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