tv Varney Company FOX Business January 3, 2017 9:00am-12:01pm EST
if he doesn't get that done, he's going to be trouble -- dagen: corporate and individual. >> absolutely. dagen: right. and here's my prediction, that stuart varney's going to take this market to 20,000. you've got to stay tuned for the opening bell. thanks to morgan, steve forbes and tony saying. it's all about stuart varney right now. stuart: dagen, get some sleep, please. dagen: thank you, sir. stuart: hello, good morning and welcome to a whole new world. 2017 is off and running. stocks going straight up. half hour from now, the trump rally paused for the holidays, got that, but with 17 days to trump 45, the stock surge is back and back with a vengeance. make no mistake, this is all about political chge. the new congress reconvenes today. first order of business, fix obamacare. that's middle america's nightmare. cut taxes, deregulate, grow the economy. there is a new sheriff and a new mood, and investors are
responding. the democrats? they've got no answer other than obstruction. they're trying to hold up cabinet appointments. nancy pelosi is pleading to keep obamacare. the president himself is putting up roadblocks to protect his legacy. but investors see rapid change, they see rapid change coming soon. they are voting with their wallets this first day of 2017 trading on wall street. politics and money, that's what we do, and it's great to be back. "varney & company" is about to begin. ♪ ♪ ♪ a new sensation, a new sensation right now. stuart: i do know this -- [laughter] yes, i do know. that's new sensation by inxs. looks like the markets have a new sensation to start the year, up more than 1400 points since
the election. yeah, the trump rally is rolling on. if you're just joining us, watch out, the money is pouring into american companies. how about that? more on that in one minute. first, i've got to talk about this, the twitter presidency. it's in full force already in the new year. mr. trump's latest about general motors. here's the quote. gm is sending mexican-made model of chevy cruz to u.s. across the border. clearly, that was a warning shot across the bow of general motors. then gm released this statement, moments ago: general motors manufactures the chevrolet cruz in ohio. all chevy cruze sedans are built in gm's assembly plant in ohio.
trump guy steve cortez is here. seems like mr. trump got that one factually wrong. i think he's got some egg on his face for that. but nonetheless, i read it as a warning shot across the bows of all those companies that make over there and try to sell tax-free here. how do you see it? >> right. stuart, i concur. you know, maybe he got some of the details there wrong. it seems as though he did. but the bigger point, i don't think americans care a lot about the weeds there. i think what they care about is the big picture scenario which is that we have some trade deals that are simply not smart and not fair to the american worker. that's going to change, and it's going to change quickly, in weeks, not in months or years. and i think, secondly, we need to make sure there's both carrot and stick, that the carrot for american companies and investment is that we have the best business climate we can possibly have in this country; low taxes, sensible regulation. but there's also going to be some stick. if you think without any consequence american managers think they can produce overseas
and sell freely back in this country, donald trump was elected on a populist vision that says that is not in the best interests of the american worker. stuart: he's off and running and tweeting up a storm. i want to ask you this, in about, what, 26 minutes, we're going to have a triple digit rally on wall street, up maybe 120, 130 points. how much further can the rally go? what say you? >> stewart, i think it can -- stuart, i think it can go a long way, and i think that donald trump's messages are not just good news for main street, they are also good news for wall street. and i know it was annoying that we couldn't qu on the dow, it was at least annoying to those in business media. i think we're going to print it quickly, maybe today, but in very short order. what i'm even more enthused about is not even so much the dow, it's the small caps. if you look at the iwm, the russell 2000, most of those companies are not global
players, they're u.s., domestic players. and that has been rallying even more since the election than have the s&p 500 and the dow industrial average. i want them all to rise, but i'm most enthused about small caps because of what that means for main street america. stuart: okay. come back at 930 when the market opens, we'll see how high we go. steve, we'll be back to you later. how about the price of oil? $55 a barrel, i believe that is an 18-month high. >> it is, and it's because of the opec and non-opec oil production cut that went into effect on the 1st of january. oman and kuwait have confirmed they are cutting back production, but we won't really get a sense of whether they're sticking to their word -- which is a big if when it comes to opec -- until the end of january -- stuart: but on this occasion, $55 a barrel oil is a plus for the stock market. >> it certainly is. plus chinese manufacturing, that was much better than expected which means more demand for oil,
global economy improving, good -- everyone rises. stuart: it's exciting. >> it is. stuart: forecast in 2017, get the spirit, sports fans. [laughter] that's money. let's get into politics, shall we? senate democrats reportedly planning to hold up eight of president-elect trump's cabinet picks, stretch their confirmation process for as long as possible. tammy bruce makes a return in 2017. that's going to look like obstructionism. that's not good for the democrats. or is it? >> well, no, it's not, and happy few year -- new year. stuart: oh, yes, thank you. >> congress is going to be a daycare filled with 4-year-olds. they've going to be behaving badly including, i believe, the republicans. look, that's the establishment now versus the trump white house. so i think -- stuart: sorry, we're just about to show you, that's mike pence. can we listen in? listen in. >> say again? >> [inaudible] >> we receive regular
intelligence briefings, and i'll be joining the president-elect today for routine intelligence briefing, but i think over the course of the coming days, the president-elect will be receiving more information about that and other topics on the world stage. okay? >> [inaudible] >> i think the challenges america faces on the world stage are going to be met with renewed american strength and renewed american leadership. rebuilding our military, engaging leaders around the world as the president-elect has done on a personal basis. it's all part and parcel of, i think, a new season. it's 2017. we're just a few weeks away from a new administration taking office, and i think the world will see that with our president-elect taking office that america will be standing tall in the world again, engaging the world again and standing firmly for america's interests. thank you all. stuart: all right. that's vice president-elect mike pence right there outside trump
tower just moments ago. you are watching that live, as a matter of fact. tammy, he didn't say much there. >> no. stuart: but the democrats are going to obstruct whatever he wants to do. >> yeah. but that is what americans want. mike pence there, look, an adult, a man who's got -- he knows exactly what's going on. he's reassuring, he has the experience. he knows that the president-elect is going to get the job done. but it is the difference between adults in the white house versus children in congress. whether it's nancy pelosi or everyone else, what they're doing also is they're going to be testing the white house from this point forward to see -- and their own congressional members to see how far they can go. they're also paneledderring to their own -- pandering to their own base. stuart: it hooks to me like the 345rbg9 is paying attention to vice president-elect mike pence and what mr. trump plans to do. i think the market's ignoring the obstructionism from the democrats, quite frankly. put that on the back burner. making a lot of noise -- >> yeah, huffing and puffing, i
don't think it'll work. stuart: nancy pelosi is defending obamacare, i might also say to the bitter end. watch this. >> the fact is, it's the old thing of going into a china shop. you break it, you own it. they have shown nothing in their ranting and raving that shows any level of knowledge of where they would go or where they would take this. we'll be accomplices in the dismantling of the health and economic security of the american people, no. stuart: she's standing in the doorway, blocking up the hall right there. >> yeah. and, look, the american people have experienced the decline and destruction of obamacare thselves. this is not -- they're not relying on the rhetoric coming out of washington. they want it gone, they want this replaced. that's why this election went the way that it did. nancy pelosi, once again, wasn't she the one that said you've got to pass it before you know what's in it. look, americans have had it with that, and i think donald trump
clearly knows what americans want -- >> to tammy's point, did you see the study out of harvard and princeton saying more than 90% of the jobs created between 2005-2015, part-time jobs, temporary jobs -- stuart: because of obamacare. >> because of the rules and regulations of obamacare and tax hikes. small businesses are getting crushed. stuart: we're off, we're running, 2017 is right here. this is for sports fans. the rose bowl, one for the ageses. southern california stormed back. they had a 14-point deficit in the fourth quarter, they won the game with a last second field goal, 52-49. that's the most combined points in rose bowl history. >> like a basketball game. [laughter] stuart: this game had everything, big plays, crazy catches. it was the granddaddy of 'em all, so i am reliably informed. check futures again, please. we're up, it's going to be a triple digit rally at 9:30 eastern time when we kick off
the new year in trading roughly 20 minutes from now. we're going to go up. this subject is on the agenda too, terror. the united kingdom's security minister, britain's security minister says isis wants to carry out a massive chemical attack in england. here's the quote. the casualty figures would be erybody's worst fear. we got that one coming for you. and in istanbul, turkey, 39 dead after a terrorist opened fire with an ak-47. isis takes responsibility. a picture of the suspect has been released, that's him. the manhunt is underway.
the stock's going to be up a little bit. now this, terror warning in britain. isis threatening a terror attack. what's this all about? >> mass casualty chemical attack is what they're warning about. they're also saying in the u.k. that isis has the capability to do it. u.s. forces bombed two isis chemical factories. also u.s. forces were hit with mustard gas it was thought earlier this year, and isis has assigned a senior terrorist back in 2014 to stockpile chemical weapons. they're worried about the subway lines, the train lines, also a drone attack -- stuart: that is a serious threat. >> highly serious. stuart: it's not a source, it's a government minister saying this. >> that's right. stuart: next case, manhunt underway in turkey for the terror suspect involved in the newier's eve shooting -- new year's eve shooting. >> you are seeing a picture of the suspect, turkish authorities have not given a name, but they are reporting he is a 28-year-old person from central asia, uzbekistan or kicker stand, arrived in turkey with
his wife and two kids, but he's still on the loose. killed 39 people inside a turkish nightclub on sunday, injured 70 others. they believe he was targeting christian revelers, was the report. this w a place popular with chian people celebrating the new year. turned to the left, the most crowded part, and started firing rapidly. he's still on the loose. isis claiming responsibility for this. stuart: l.. all right, ash, thank you very much. valerie jarrett says the obama administration was scandal-free -- [laughter] you know who's here by the laugh. yes, that is judge andrew napolitano. welcome back. >> happy new year, stuart. stuart: scandal-free. >> she probably could have made the statement accurate if she said no one was punished for any of the scandals in the obama administration. i mean, there is a long list of them, many of which we know of,
several which probably substantially affected the outcome of the election and will forever tarnish the president's legacy like benghazi, like the irs targeting conservative -- stuart: that's the one. >> -- like mrs. clinton east failure to safeguard state secrets and the white house aware of all that. these things are profound, and in one was prosecuted, no one was punished. the administration didn't investigate itself. the justice department rolled over in all of these things. either valerie jarrett -- and i don't know the woman, i can't get into her head -- really believes this, or she's on another planet, because the scandals were rampant. stuart: what would you say, judge napolitano, valerie jarrett on another planet? >>hink she probably believes it. i think he is so inured to making the president look good in the last three weeks of a disastrous eight years, eight years profoundly rejected by the electorate -- stuart: i like your qualification, no one was punished for the scandals.
i've got to raise this one. i hear it is possible for president obama to nominate and stick on the supreme court judge merrick garland in the five minutes available between the time when the senate is gaveled to order and when it starts business. that is a possibility. >> yes, it is a possibility. it's called a recess appointment. remember, the constitution was written at a time when the senate did not meet full time, they did not have offices, they did not have an office building. they wanted to give the president the option for a job that he appoints and requiring senate confirmation to fill that job when the senate was in recess. fast forward to today, barack obama appointed people to the national labor relations board when he said the senate was in recess, and the senate said they weren't. the supreme court said the senate decides when they're in recess. 9-0, that ruling. except for today at noon when the constitution mandates the
senate be in infinitesimal recess, it could be as short as a second. can he put somebody on the supreme court in that time period? yes. how long -- stuart: he in. >> i doubt it -- will he? >> i doubt it, because the political ramifications would be an earthquake. how long would that person serve? for the two-year life of this senate term. stuart: it's not going to happen. >> i doubt it. but it could. just to keep you wondering and watching at noon -- stuart: we're on at 12 noon, don't forget. [laughter] >> i'll be here. stuart: terrible story for you. look at this. in chicago in 2016, a 12-month period, 762 murders, up 50% and more from the previous year, and the number of shooting victims, wait for it, 4,331. we're all over this one. later this hour, why liberals treat the government like children treat santa. wait phil you hear what
tammy bruce, president obama goes back there tomorrow, i think, for his farewell speech, but he's not going to live there again, is he? >> no, he's not, and he's going to have something the people of chicago don't have, which is security. he's going to have a bunch of member and women with gun -- men and women with guns surrounding him to protect him. but the chicagoans don't have that. just from the 1st to the 3rd, 33 shooting victims in chicago according to "the chicago tribune." and with the number already dead last year, that is about two a day. that matches the total iraq, afghanistan war rate of deaths a day. that is in the city of chicago with the rate of last year. so this is a man who uses chicago as some standard, and at the same time pleatly having abandoned -- completely having abandoned that city. and i think as an example of how he's abandoned the country that people's lives have gotten worse based on no jobs, the drugs and the gangs. stuart: it was donald trump who
said to black folks, what have you got to lose? >> yeah. stuart: and he was called a racist for that. >> yeah. >> just because you disagree with policy, you're called a racist, right? policy differences. stuart that was the theme, wasn't it? you disagree, you were a racist, sexist, homophobe -- >> bigot, you name it. >> you know the african-american community will respond to donald trump saying you have everything to gain. everything's already been lost. when you look at the unemployment rate, when you look at the violence, americans regardless of their education have everything to gain, and i think they're seeing that right now. stuart: trump rally resumes in 2017. yes, it does. four and a half minutes from now, you'll find out just how explosive it will be. we're looking for a gain of at least 100 points at the opening bell of 2017. we'll be back.
♪ ♪ stuart: you know, we are 45 seconds away from the resumption of the trump rally. we're going to go up at least 100 points at the opening bell. that will resume the rally that we saw at the end of last year. we were up, what, 1,400 points, a little bit more than that just since the november 8th election. it was one of the most explosivrallies we've ever seen. it calmed down. there was a clear pause the week
before christmas and the week between christmas and new year's. well, now we're back. this is the first trading session, tuesday morning, of 2017. we have an indication from the futures market as it's called that we're going to go up triple digits right there at 9:30, and we're three seconds away. here we go, sports fans. we are off, we're running at 9:30 tuesday morning, 2017 has begun, and look at that green. all across the board, left-hand side of your screen. those are dow stocks which have opened higher, and immediately we're up 137 points, 19,9 is where we are. that, ladies and gentlemen, is a pop. we're off, we' runni. 2017, what a start. don't you love it? now up 150 and rising. i've got to bring in our guests today, ashley webster elizabeth macdonald -- they're not guests. [laughter] rob horowitz, this is an explosive rally.
were you expecting that, keith? >> yes, i was. there's a lot of money on the sidelines. the fact we took a pause meant everybody was getting ready, and this is a good thing to see right out of the gate. stuart: what do you see, todd, were you expecting this? >> i wasn't expecting this. i don't think there's as much money on the sidelines as everybody wants to talk about. there's always money on the sidelines, and there's also money every morning from fund money, so i don't know that it's a big deal. stuart: no, no, that's a good point, todd, because this is the first trading day of 2017. in the next week or so, people who have got a 401(k), you know, the pension plan from their employer, they've got to decide the allocation, where that money is going. >> yeah, that's right. stuart: they could put it into bonds, stocks or cash, and i think a lot of people are going to be saying stocks. >> yes, that's right. and especially with corporate tax ruts coming, you're -- cuts coming, wells fargo and the other banks could pop double
digits if that's passed. stuart: okay. first trading day of the year. where are you putting your money, keith fits? >> the stuff that people want to buy, the altrias, stuff that pays a high dividend, stuff that's growing into the future. i think a rising tide raises all boats. that's important to me. stuart: what do you say, todd? i know you not -- you are not necessarily a stock guy, but if you were -- >> i'm putting it in stocks that represent commodities, jjg which represents the grain injury, i think that the commodity space last year really got hammered, and i think there'll be a lot of new money flowing there as they decide that maybe the stock markets are getting a little bit too high. i think some of these etfs represent some natural goods will be a good place to be this year. stuart: okay. tell me about oil, todd, because that's your main priority.
we're at $55 a barrel. to opec oil production cut is now in effect, seems to be working just a couple of days in, but $55 a barrel. do we go up or down from here, todd? >> i think we go dramatically lower. i think that nobody in opec in that whole meeting is going to honor the promise they made. we're going to start pumping more oil here as soon as the frackers and shale producers decide the price are high enough. there's still a supply problem. we have way. too much supply in this country, and we don't need anybody else, so peck, to me, means nothing. >> libya and nigeria are exempt from the -- stuart: yes, they are. >> and they're pumping bigtime. stuart: $55 per barrel for oil right now, that's probably helping the market right now. we're back to 19,916 as we speak. >> wow. stuart: now, mr. trump has been tweeting up a storm again today,
tweeting on general motors, accusing them of building cars in mexico and sending them back to america tax-free. the market is looking at general reporters' stock, it is -- general motors' stock, it is virtually dead flat. but general motors says trump was factually wrong in his tweet. >> yeah. he said in his tweet that gm is sending mexican-made model of chevy cruze to the u.s. tax-free. that's incorrect. gm had planned to make the cruze hatchbag and is, apparently -- hatchback and is, apparently, in mexico. he got it wrong. stuart: they build in lords town, ohio, but on january the 23rd, there'll be 2,000 layoffs in -- >> two auto plants including lordstown. >> the lack demand for the cruze. you could say if you look at the statement it's kind of right, but it's a little -- you know what i'm saying? because they make the hatchback
in mexico and sell it in the united states, so that part of his statement is true. stuart: i think it's a warning shot across the bow. >> sure, it is. stuart: you do that, take the jobs out of america, build there, then try to bring them back here tax-free, we're not going to let you do it. >> what a way to start, remember, obama started out with a bailout of gm, and they didn't pay it back fully. [laughter] stuartgenel motors up o cents, virtual dead flat. now, here's a story that's really intriguing. this is from apple. they are cutting, repeat, cutting iphone production 10%. >> that is according to one report in a japanese financial newspaper, although the nikkei financial newspaper, 10% between january and march of this year, cutting back production. they did this, t same ing in the first quarter of 2016 cut it by 30% because of accumulating inventory. we haven't gotten numbers for
how many of these iphone 7s were sold over the holidays -- stuart: and apple's stock is holding at 116. all right. check that big board. look at this, ladies and gentlemen, the if you're just tuning in. look at this, please. we're up 162 points, 19,924, this' 75 points, 74 points from dow 20,000. i'm sorry i keep raising that figure -- >> that's okay. stuart: you know, it's a meaningless benchmark -- >> our viewer, michael, is becoming a little -- [laughter] stuart: how about this one from twitter? their boss in china has quit. only been on the job eight months. now twitter's been blocked in china since '09, but it's still used through private networks. twitter still languishing at 16. look at disney, could receiv $50 million for carrie fisher's death thanks to an insurance policy. walt disney's stocking at 106 right now. i want to go to the new york stock exchange where nicole is going to tell us, i want the biggest winners, dow winners.
>> reporter: let's check 'em out. energy, financials, let's take a look, names such as nike, caterpillar, goldman sachs, verizon, jpmorgan are leading the way. these are the same sectors that took us through 2016. we saw energy, we saw financials, we're seeing oil now, 55 and change. what's interesting abo this market, and i'm not going to be the bearer of bad news, i want dow 20,000 for everyone's 401(k)s and iras just like you do. [laughter] i will say that the market trend to have all of these sectors higher, stocks higher, dollar higher, bond yields rising and oil higher, sometimes all of those don't necessarily go together. so something might give a little bit. you don't normally see all those trending higher together, but i will say it's all green, and let's take it and, listen, dow 20,000 is much better than dow 10,000 or 6500 during our financial crisis. stuart: happy new year, nicole. >> happy new year. stuart: good stuff.
now snapchat, that promises to be the ipo of the entire year. it calls itself, it says we are the next facebook. what's that about? >> yeah, they're saying, essentially, we could raise anywhere from 25 billion to 40 billion in our ipo possibly scheduled for march. why are they like a facebook or google? they're talking about their sunglasses, snap, where you can take videos and post it. so they want to monetize via devices which twitter has yet to do. stuart: wait, wait, wait. so the manufacturer of sungsses, for example -- >> snap. stuart: they incorporate snapchat into the glasses. >> yes. >> taking video and you can post it. or a picture. stuart: then snapchat gets -- in they sell them in vending machines. stuart: yeah? they do? >> pretty cool stuff. stuart: sorry, folks, i'm behind the times. [laughter] snapchat could raise $25 billion -- >> or 40. stuart: and not a passing fad, okay. [laughter] i've got to tell you, folks,
there are three stocks, dow stocks, that is, that finished in the red last year. for the year, they were down, nike, coke, disney. keith, are you buying any of those three stocks? >> no. i'm not. i think nike has a quality problem with its goods. it's marketing machine but not a performance athletics company any longer. coca-cola has challenges and backlash against healthy foods. i am interested in disney. when it gets rid of its espn problem, that becomes attractive to me. stuart: is there anything that you consider to be cheap right now that you are buying, keith? >> yes. there's a little company that's an australian-based coding company, and the problem we have with software is you can't get enough fast enough. they make tools used by 85 out of the fortune 100 companies that helps people code 50, 60, 70% faster. stuart: do you own it yourself, may i ask? >> abvi? yes. i own it personally, family owns as well.
company recommends but does not own and no investment banking. stuart:abbvie, i hear a lot about it these days. >> great company. stuart: listen up, a new law in france would let workers ignore e-mails after hours. e. mac? >> i know you, stuart and ashley, the two resident brits here will -- stuart: we are americans. >> thank you. >> that's right. this is government mandated work-life balance. france has that 35-hour -- [laughter] stuart: wait a minute, government mandated work-life balance. love it. >> saying, you know what? don't force us to e-mail after hours. you're getting free labor, right? so what the people are say, hey, wait a second, want that working mono-- what about that working mom who's going to say, basically, i worked after hours, i want more paid time off, more salary? they're putting more lockdown kind of rules and regulations on this very structured economy. that's why france is growing so
slowly. >> god forbid you work for one minute exfrom. stuart: some of the stocks are moving, amazon up $3, facebook up nearly a dollar, so the big name tech stocks are up. they're all part of this market rally. 142 points higher, the dow is back to 19,900. i'll bring this to your attention. finland experimenting with a basic income for the unemployed, guaranteed income, i think. >> guaranteed income. it's just a test, two-year test. they've taken these 2,000 citizens, they're going to pay them $587 a month whether they're working or not, why are they doing this? they're saying the welfare system in finland is very complex, very -- in other words, a lot of people living on benefits, have no incentive to work. they believe this will have people out there working because they can get a job while getting this guaranteed income without losing their benefits.
stuart: ah. so that's the guaranteed money, keeps coming at you -- >> you don't lose your benefits which is very interesting. they say, ultimately, could revolutionize the way they handle benefits. stuart: lizzie's pulling a face. >> my new 2017 face. [laughter] pie in the sky, fake things that they're doing. it doesn't work. stuart: we're off, we're running. we're 12 minutes into the 2017 trading session, and we are up very nicely, 150 points. thank you very much, indeed, todd and keith, for joining us on what could be an historic year. good stuff, everyone, thank you. get back to the big board, because i want to -- you may just have tuned in, you may be listening on the radio. see how the market's doing in this first day, i'll tell you now. we're up 148 points. 19,910, the trump rally rolls on this tuesday morning. and now, markets are up because wall street expects tax cuts in the new year.
one of president-elect trump's biggest promises, massive tax cuts for corporations, that's what's going to happen. let's bring in peter morici, professor of economics. that's it, isn't it? that's why this market is up, because we expect, we demand tax cuts fairly soon. [laughter] that's why it's up, isn't it? [laughter] >> well, that's got a lot to do with it. it's also how we're going to cut the taxes. i mean, you can't just willy-nilly cut 'em and explode the decit. he want toss apply them to imports. well, with a $500 billion trade deficit, that's a net gape of, you know, about $75 billion, $100 billion depending on what rate you set. and that's a lot of money. that can be used to lower rates overall. so i think that's a good thing. the question is whether it'll hold up in the wto, because you can rest assured the lawyers over in europe are scribbling away right now, how do w
maintain our advantage on the americans? we can rebate the value-added tax, they can't theirs, how do we maintain our advantage? stuart: but the real tax cuts which has excited everybody in america and the market is personal income tax cuts. that's what's getting everybody excited, isn't it? >> yeah, and i don't think -- they may be a bit overexcited. remember this, the top 20% of earners pay 83% of the taxes, and any knew chin says they're not -- mnuchin says they're not getting a tax cut, just reduced or capped, what have you, and we'll lower the rates. well, you know, cutting taxes with regard to the other 80% who pay only 17% of the taxes is not going to be enough to move the economy and move the market. they're going to have to move off this nonsense that somehow or another, you know, cutting taxes on some entrepreneur in new york, you know, is a bad thing. it's a good thing. stuart: why are you throwing
cold water on my hoped-for and promised -- >> i'm not throwing cold water on it, i'm just saying -- what i'm, the point i'm trying to make is that rationalizing the tax system so we don't have all news deductions and exemptions and accountants and lawyers and so forth, and we just have straightforward profit making on lower rates is a good thing. that's really where it's at. economists like elegance, simplicity, transparency. and if they give us that or more of it or we have less of it, that's good, and that'll help the economy grow. stuart: okay, peter, i hear you. >> i'm sorry it's not exactly like you want it, i be i've got a burden, i'm an economist. stuart: at leastou're nured. [laughter] grover norquist, the anti-tax guy himself. he was on the show right before new year. he said america -- he's the president of americans for tax reform. >> i know grover. [laughter] stuart: he said liberal ares treat the government -- liberals
treat the government like it's santa claus. listen to this, peter. >> i was talking to my daughters about they wanted certain things, and i said, well, they're very expensive. and they said, well, santa will bring them. it's free. and when you hear liberals talk about getting government money, they act as if it was free, as if it wasn't first taken by force from some american and run through the government, but the government didn't create that wealth, it didn't create those dollars. they took them by force. stuart: what are your comments on that? the government did not create that wealth? that's -- >> well, grover's absolutely right. he's a friend of mine. as i said, i know him, and he's absolutely right. the democrats are very peculiar group of people. it seems as though when they take money from us and they spend it, it's a good thing, it's a benefit. but if the government giveses us back the money it snatched from us in the first place, it's inflationary, budget-busting, deleterious, you know,
vice-ridden and so forth. somehow or other the democrats have got 45% of the voting population convinced that it's a bad thing for people to keep money they earn by working hard. grover's absolutely right. stuart: okay. let's suppose we get the kind of tax cuts tt yowere talking about. you laid it out. let's suppose we get that. would we stillet 4% economic growth somewheren the road? >> we're going to have to have other changes as well. we're going to have to have improvements in the regulatory environment. that's the difference between today and in reagan's era. reagan was able to cut taxes absolutely, that's going to be more difficult for donald. but rationalize the tax structure like reagan did, he can do that. but he's got to get more regulatory relief, and that's going to be very hard. and that's where i'm a little skeptical really. carl icahn working part time, showing up one day a week at the age of 80 is going to somehow or
another untangle this bowl of spaghetti it iser the write complicated -- terribly complicated. for example, labor, we know the new guy at labor's going to not hurt fast food producers. the minimum wage isn't going above $9 an hour, but is he going to do something about all of those provisions that make my life miserable as a small businessman, that have made it the fastest growing area of small business is single proprietorships because nobody wants to hire anybody. that's what counts. stuart: peter, back to the classroom for you. you'll see us later this week. peter morici. >> take care. stuart: take a look at the big banks. yeah, they're all up again. this was the, this was what was happening on the market before the holidays. it's happening again now at the start of the new year. barclays raised its price target for the entire group of banks, jpmorgan there hitting n high. i want to update you on venezuela. you know, we got more news from
that socialist-prone society. hungry venezuelans flooding into neighboring brazil. i want details. >> yeah. and colombia. tens of thousands. so what happened 12 years ago, chavez nationalized the farms and factories, and now the military has been put in charge of food supplies. they're hoarding food supplies and selling them at mark-up. corn flour, for example, being charged by the military a hundred times its government-set price. so people are starving in venezuela, they're really hungry, and they're pouring across the border. the middle class is emptying out in venezuela, and now we're hearing the u.s. government may crack down on money laundering from the military, putting that money they're make off of starving venezuelans into u.s. banks. so, you know, you said this months ago, it's in a state of collapse, and it continues to get worse. stuart: it's a rolling collapse. >> that's correct. that's right. stuart: worse and worse and worse. i feel for those peopl i really do. the dow 30 are now up 142 points. look at that on the screen there.
the vast majority of stocks in the dow 30 are on the upside. they're in green this morning. facebook's mark zuckerberg, former atheist, says he's found religion. now says faith is, quote, very important. he made the announcement on christmas day. and president-elect trump back at trump tower in new york city. seventeen days from the inauguration, and he still has two key cabinet posts left. democrats are promising a big fighting for eight of 'em in the nomination process. "varney & company" back in a moment. ♪ ♪ if you take medication, you may sometimes suffer from a dry mouth. that's why there's biotene. and biotene also comes in a handy spr.
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he tweeted out, basically put up a message, rather, on facebook saying merry christmas, happy hanukkah. somebody weighed in and said, wait a minute, aren't you an atheist? he said, now i realize and believe that religion is very important. now, lest you think that the pope turned him -- because, remember, he met with the pope last summer -- his wife is a practicing buddhist, so he's intrigued by the buddhist religion, that's what he says. stuart: intrigued. good luck, mark. [laughter] next case, bruce springsteen says he's worried about, he fears donald trump. he says that trump let racism out of the bottle. watch this. >> when you let that genie out of the bottle, bigotry, racism, when you let those things out of the bottle -- >> intolerance. >> yeah, intolerance, they don't go back in the bottle that easily. if they go back in at all. stuart: ash? >> he says he's never felt the
fear that he feels now that donald trump is president. i think if you go back -- stuart: oh, really? >> didn't he say the same thing -- stuart: i've got the quote. this is november 5, 1980, the day after ronald reagan won the let's for the presidency. mr. springsteen said at that time i don't know what you guys think about what happened last night, but i think it's pretty frightening. that was 1980. >> well, apparently, he's feeling that way again. he's calling trump, you know, a toxic narcissist, a moron, he says his policies are lies, and he also says his policy, donald trump's policies appeal to americans' worst angels. i have no idea what that means. stuart: i wonder if bruce springsteen will give back the tax cut he will get because of donald trump. will he give it back? >> let me take a guess, no. [laughter] stuart: let me think about that. no. [laughter] it's all in good fun. look at this, first trading day of the new year, and the dow is
rolling up 125 points, 19,887. finish this is the trump rally, and it continues. the democrats, well, they just can't come to terms with the election. they lost, trump won, and they can't let it go. my take on that at the top of the hour, a couple of minutes away. also coming up, nigel rage, he's the manehind brexit. we're going to have him talk about the latest terror threat in britain, an isis chemical attack. hour two, two minutes away. ♪ ♪
stuart: the democrats are floundering and they have yet to figure out who should lead the party and regroup around new policies. old guard nancy pelosi was pleading for obamacare. the very policy that did damage to working families. democrats are searching desperately for someone to lead the party machinery. keith ellison is a far left, trump is a racist demigod. and he's going to chair the -- the party? fox news reports 8 cabinet picks will be obstructed. the trump -- the left does not
unrstand that decent law-abidg people do not like being called names. democrats are clinging to the playbook that says america is racist, sexist, deplorable society. they are the rich, coastal elites, clinging to their power. trump is looking forward, they see a dynamic america and growth. the second hour of varney and comevarney andvarney and compano begin. liz: leading the charge are
petroleum, metal, food and beverage. also tobacco products. those are firing on all cylinders. >> i notice that the market firmed a little on that. not much market reaction to the good news on manufacturing. on construction spending, what have we got? >> it was almost double what they were expecting for the month of november. maybe that's an indication of the trump victory. construction spending going up almost twice as expected. >> that's a sign of growth. they want to see growth in 2017, and that's an indicator that they will get it. price of oil is $55 per barrel right there. that's up a buck 28. maybe the high price of crud
helping the ock mark. how about the tech stocks. only one of them down. apple announced they are cutting the production of the iphone by 10%. banks, they were the huge winners in the last 6, 7 weeks of 016, and they are winning again on the first trading session of the new year. there is a possibility the horrendous dodd-frank regulations will be lifted a bit. i want to get back to my take on how democrats don't get it, they insulted millions of people and haven't come to terms with their loss. look who's here. our favorite democrat. i don't think you do understand
how it feels for much of america to be called racist, sexist, homophobic, deplorable and irredeemable. and you are still doing it. >> am i doing it? stuart: you are speaking to democrats. lodemocrats. look what's going on today in the swamp is being refilled with house republicans abolishing the congressional ethics office. stuart: it's ainor detail. if democrats were doing it you would be the first to bang the drum on it. stuart: will you be --
>> when you have a president-elect who talks about grabbing women by a certain body part. stuart: you can't get over trump's win. you can't get over your loss. who is going to lead your party? >> let me tell you something. who is the leader of the republican party. stuart: who is the leader of the democrat party? is it obama? it's not president obama, is it nancy pelosi? is it keith ellison. >> i don't know, we'll see if he gets elected. here is what i would say about the dnc. somebody who knows how to get out the votes and the mechanics of the election, it need to be somebody who knows the mechanics to run to campaign. if that's keith ellison.
i don't think keith ellison is relevant to the democratic party. stuart: you are beginning to get the message. >> we agree on one important thing. the same way you did not on january 20, 2008 sit here at this very table and say the american people have spoken and i'll support president obama and everything he does. the same way you obstructed. we have to run? stuart: in 2009 when president obama assumed office for the first time, the republicans agreed to all of his cabinet nominees within five days of his inauguration. dot telle that someh or other the republicans obstructed president obama. they did in the obstruct his cabinet appointees. >> they obstructed every policy.
it was a heritage institution. stuart: they did not. the republicans came up with countless examples of how they could improve the medical system and they were all rejected. >> this is complete revisionist history. mitch mcconnell sat down inauguration night. one-term president. >> as i said in the beginning, you have not learned a thing. you will be back in the majority in two years. that's what i learned from the tea party. you think the democrats will be back in the majority years from now. lee carter is with us this morning. >> can't wait to join this.
stuart: president-elect trump was campaigning against obamacare and campaigning for a wall, he was campaigning for immigration reform on growth web was campaigning for all of that. what's wrong with that? president obama is standing in the door and the democrats are blocking it. he's blocking what the voters said they wanted. >> i have heard people talking about the poll numbers and only one in four want to repeal obama care. only one in five want the law to proceed as it. most people want it to change. 2/3 of the people say we want something new and we want it proposed and led by the new administration.
we can say whether this election was a mandate. you look at numbers after numbers and you can see people want the obamacare law updated and revised. stuart: my information is that's going to be job one for congress. >> that's right. stuart: fix obamacare is job one. >> i think it's important that people understand. people are saying let people go without care. there are 74% of people who favor repeal. but they mostly favor people staying on their parents plan. they just say that overall it's not working. we don't want a sing. pair thing. we want to make sure this more competition. the affordable care act is no longer affordable. it is a mandate. i think people do want to see change in the affordable care act.
stuart: i want to bring you up to date something tt happened overnight. it was a computer glitch that brought u.s. customs to a virtual stand still. you may know someone who was caught up in this. dagen was caught up in this earlier today. travelers in chicago, new york, miami, they had to be processed by hand. the customs office says normal service has been resumed. that was the bbc's line. we have this one for you. germany's angela merkel warns people islamic terror is the biggest threat facing her country. meanwhile italy preparing for malls depor ded for mass demores
reporter: there is a report came into turkey from uzbekistan or r you ar.and they haven't trackedm down. where did he go, isis claimed responsibility. but there is doubt being raised about that. stuart: it's stunning that that man with a wife and two children allegedly walks into a nightclub and sprays machine gun fire and killed 39 people. extraordinary. what on earth is going on. there are several other terror developments in europe. germany's chancellor angela
merkel says islamic terror is the biggest threat to germany and its society. and we have this from italy. mass deportation of migrants planned for later this year. that's mass deportation in italy. in britain there is a warning about a possible chemical attack from isis. threat of chemical attack in britain. ambassador john bolton is here. where is the end game here, john? >> i don't think there is an ends game in sight. nobody should be surprised that these terrorist threats seem to be increasing. when you allow hundreds of thousands and millions of people from this kinds of region where terrorism support has been growing for decades. you allow them in without any vetting, this is a consequence.
not to mention the radicalization of people take place who have immigrated before. it's the kind of thing we can project what could happen here. stuart: what happened if the nationalist party leader in france wins. what happens then to germany's chancellor angela merl? is she going to win reelection. what happens in italy when mass deportations start? it seems like that continent is falling apart over the issue of islamic terror. the european union is falling apart. >> you see evidence of popular discontent with these policies all over the place. merkel is in trouble. germany will hold in france. llalepenn is not a popular
population. now, when you have add the immigration issue to europe's other problems, dissatisfaction with brussels, the euro, a crave is that's not fully resolved. britain's vote to leave the european union. indeed it's very troubled. this is one of the reasons why i think taking advantage of the disarray in europe is going to be easier for the terrorists. and their eave built to come to the united states is substantial in hand. stuart: it seems europe is going to say no more coming in. it looks like that is about to happen. ambassador john bolton, we'll see you again soon.
to you, too, sir. we are up 160 points. there was good news on construction spending. it came to us 18 minutes ago. ashley: the best jump in construction spending since april 2006. more than 10 years. that speaks to the optimism. and it was spread throughout the construction industry. that's an encouraging sign we'll built and the they will come. 160 points. got it. a new study finds christians were the most persecuted religious group last year. 500 million christians suffered from some kind of persecution for practicing their faith. mr. obama is heading home, back to chicago for his farewell speech.
because 80% are male blacks. stuart: president obama is going to chicago tomorrow for his farewell speech. it was president obama who entertained the leader of black lives matter at the white house, singled him out and said you are a fine community organizer. was that a smart move? >> i don't know you should blame what's going on in chicago -- what's going on in chicago is a tragedy and it's inconceivable to me they can't get their arms around it. they have a massive gang and gun problem. chicago is the size of brooklyn and for some reason if you compare the two, chicago's gun violence is out of control. this predates obama. this predates even rahm emanuel.
stuart: democrat did nothing about what happened in chicago. they have run the place for 50 years and nothing has changed. >> i agree with you. stuart: so you would agree with donald trump when he said you have got nothing to lose. donald trump tweeting up a storm including a tweet about what he thick should be congress' priority now that the new year has begun. ashley: he said with all the congress has to work on do they have to make the weakening of the independent ethics watchdog as unfair as it may be their number one priority?
focus on tax reform, healthce and so manother things. he's been on a tear. stuart: now, the christians, the most persecuted religious group in the world last year. 13,000 syrian migrants came to america last year, but less than 100 of them were christians. mostly muslims. a very negative headline from the "new york times." take a bad year and make it better. the dow up triple digits. that is the trump rally and it resumes in 2017.
stuart: the trump rally continues. construction spending was very strong. the highest level in 10.5 years. the nice thing about this it was spread in public and private sector investment. that's a sign of optimism that they are going to build it. if they build it, people will come and buy it. liz: we have been in a bull market of bloom and doom and divisiveness for 8 years. now it's a brand-new day it feels like. >> it's a positive move. 160 points high. we'll take that. then there is this. the "new york times" editorial board. they called 2016 a bad year. in the article they say those who are miserable and afraid are justified. for many it was the election of
a president unfit sport job. he wants to run the country like an authoritarian game show host, but we don't know what he would do and uncertainty worsens that sickening feeling. scott brown is with us. the market is up triple digits. i don't have a sickening feeling, do you? >> 2016 was a very good year. if you want to make 2017 a better year, cancel your "new york times" subscription. they are going for a tailored audience and going for a demographic that's still shell shocked. stuart: i don't think they have come to terms with their loss. >> of course not. my response to that is who cares.
you can't stop time, the country is moving on. we are moving on with a positive agenda as you referenced by the stock market and housing starts and construction growth. there is a great feeling out there and i would rather stick with those folks who feel good about america. stuart: having read the "new york times," the media takes its marching orders from the "new york times." what appears in the times this morning will be on the abc evening news and cbs news, and nbc. what i'm saying is that this media sniping, this harsh criticism is never going to go away. >> of course not. they can't stop all the cabinet and secretary picks and the ambassadors and the like because harry reid changed the rules in the senate. they can't veto things like they could with president obama
because you have a republican in the white house. they are very upset. they are going after each and every thing each cabinet person and ambassador does. they will be nitpicking, stuart, like you have never seen it. stuart: i want to raise this with you. senator elizabeth warren wants to make it easier for banks to work with marijuana companies because it's legal -- recreation pal marijuana is legal in massachusetts. you are a mals guy. >> i'm not in favor of marijuana. i'm in favor of medicinal americana. i don't disagree with her in that. she says we've need to get the cash nature of the sale of
marijuana out of the equation to avoid fraud and criminal elements. by having banks involved there is some type of rules -- there is a regulatory scheme that may benefit not only society, but that industry as a whole. that's some kind of checks and balances on it. i don't necessarily disagree with her. i would like to learn more about what she has to propose. stuart: you are getting awfully close to elizabeth warren. she supports you on the va nomination. now, you support her on marijuana. >> i like good ideas no matter where they come from. that's the difference between me and people from the "new york times" and others. i'll take a good idea and run with it as long as it helps our country move forward. stuart: well said, scott.
happy new year to you. this is a dreadful story. a new study finds 90,000 christians were martyred in 2016. 500 million christians were persecuted for the faith in some way in 2016. christians are the most persecuted minority religious group in the world last year. robert jeffress makes a welcome return to new york city. happy new year. >> this is dreadful. it is. stuart: i can't understand why our administration in the united states of america, the judeo-christian country found stone it christian principles doesn't do something about it. >> president obama and john
kerry have blood on their hands for this. muslims are the number one persecutor of christians. it's not because christians are going around saying turn the other cheek. what muslims hate is historically christians have been the jewish best friend. it's all over who is the rightful possessor of the holy land. the quran says it's the descendants of ishmael. stuart: president obama failed to veto a measure in the u.n.
that says they are in wrongful possession of israel. >> this land has been inhabited by jewish people for thousands of years. stuart: do you think barack obama tilted towards muslims? >> i'm not one of those who says he's a closet muslim. i don't know who he is. but islam has had a big influence on his life. his far it and stepfather. i think obama thinks muslims are the ones being persecuted. but he's contributing to the persecution of christians around the world and in america. i think donald trump will be the best friend of christians around the world man this country. stuart: facebook founder mark zuckerberg long considered
himself to be an atheist. he said he found religion. i was raised jewish, then i went through a period where i questioned things, but now i believe religion is ve important. your thoughts on that. >> any time somebody turns away from atheism to embrace a belief in god, it's the atheists who have to commit intellectual suicide. the bible says the fool says in his heart there is no god. look at the vastness of this creation. you have to be a moron to say this happened by accident. stuart: you are a political person. do you have that same political view on the pulpit in dallas. >> i don't believe it's political.
faith should influence our world view and the bible impacts all of those issues from the scripture. stuart: we are 300 yard away from trump tower. are you headed over there? >> who knows. stuart: the big board up 137 points. a lot of green. that means 26 of the dow 30 stocks are moving higher. general motors. they are sending mexican made cars across the boarder and pay no thanks. but general motors came right back at them. what did gm say about mr. trump's tweet? >> i don't know if this was the best example for donald trump to cite.
they point out that gm manufacturers the chevy cruz sedan in ohio. they are built in ohio. they build the cruze hatchback for global markets in mexico and a small number sold in the u.s. the big question is if you are going to tax a u.s. company for bringing the cruze in, what about their competitors. toyota make its cor makes the cn mexico. are you going to tax them, too? if you do the price of cars will go up. stuart: i think what mr. trump was doing was sending a warning shot across the bows.
he's serious about stuff made there coming back here. reporter: i agree, but he better be serious about all the companies. stuart: thanks for joining us. more on this later. we have this as well. angela merkel has taken in way more than a million migrants, the vast majority of them are muslims. she says islamic terror is the biggest threat to germany. nigel farage joins us in a moment. we are still up 139 points. they are playing the beatles.
the taxes. they are not going to get a net tax cut. cutting taxes with regard to the other 80% who pay 17% of the taxes is not going to be enough to move the economy and move the market. they will have to move off this nonsense that cutting taxes on some entrepreneur who makes $400,000 in new york and is paying city, state and federal taxes at 60% is a bad thing. it's a good thing.
stuart: the brits are warning their citizens of a possible chemical attack from isis. they are asking the public, come forward, please, with any information you may have. nigel farage is with us. a chemical attack in britain? this sound serious. the warning came from a senior official. >> it came from a government minister. four years ago i said i felt like we had a column inside this country. people came here and got british passports, and yet are the enemy within. that's what the british minister was saying. we have this presence in our country. people have to be vigilant. that particularly applies to the muslim community in britain.
if they hear or see a thing in the interests of all of us, they need to tell the authorities. to talk about the prospect of a dirty bomb frightens some people, but we are up against an enemy here who have no moral boundaries whatsoever. stuart: angela merkel, germany's chancellor, says the biggest threat to europe is islamic terror. at the same time, we understand mass deportation of migrants are going to start the end of this year from italy. europe is saying no more, and some of those who are here now have to leave. that's where europe is at this point. is it? >> that's where the european people are. we saw that horrendous lorry crashing into the christmas
market in berlin. the person driving the lorry, he got to germany through europe's free movement. he applied for asylum, was refused, but hadn't been removed. when he was the most wanted man in europe he was able to cross the bored into france and into milan. people are furious the free movement doesn't just mean the free movement of good people, it means the free movement of bad people. at last what we are seeing from ms. merkel is recognizing we have a problem. she admitted 1 million people
into germany without security check one of them. stuart: we are sitting in america, look at events in urine. we wonder how long does the european population stand for it without taking drastic action? >> i think the way in which the peoples of europe will take drastic action will be through the ballot box. they did it here when they voted for brexit. don't underestimate the idea of getting back control our borders that made us a safer country and easier country to control, it was a key factor. in 2017, we have a general election coming up in the netherlands. one in france, one in germany and there could be one in italy. in all of those countries there are challenges to the
establishment view. this time last year everybody said brexit wouldn't happen and that trump was an impossibility. stuart: we remember that well, nigel. i want to get this in real fast. queen elizabeth has been ill and missed several holiday appearances. i believe she has been away for at least 14 days. is there a real health problem that we know of? >> she is the defender of the faith. she is the head of the anglican faith. she is a deeply committed christian. for her not to go to the christmas day service and new year's service. clearly it's not the common cold. it's a nasty virus. she is 0 years old. she is a beloved figure.
-- she is 90 years old and is a beloved figure. stuart: thank you, nigel. we have varney viewers angry at our coverage of the markets because we kept harping on about 20k for the dow. one of our viewers called ashley a mere sidekick. ashley: we'll deal with it. stuart: bruce springsteen still upset about the election. he fears donald trump. we'll be back. ♪
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some some were not. how dare you have call ashley webster a sidekick. outrageous. ashley: there was a point where we said enough is enough. 2k is a psychological point. we are from the new year, we'll hit it whether we like it or not. but i think the point is well taken. stuart: to ignore 20k, ignore the sense of enthusiasm and excitement there was at the ends of last year. liz: finally we are back to earnings fundamentals. the president-elect is getting a flaming across us of problems dumped into his lap. stuart: we are going to go up today. we are up gap. michael, your point is well taken. we thank you very much for writing in.
stuart: politics and money, that's what we do and the two are linked today, politics and money, in fact are inseparable. it is probably going to stay that way. take a look at the market. the trump rally is roaring again. investor came back today and hit the buy button big time. stocks are close to record levels. come back a little bit. we're still up at 19,800. the big board shows a solid gains. 100 million americans are sharing in this rally. there is a palpable sense of excitement. why? why is the world of money on such a tear? answer? politics or more precisely, political change. the new congress gets to work today, and the logjam of recent years is about to break.
obamacare is on its way out. job-killing regulations will be cut and so will taxes. president-elect trump has a cabinet team that will reverse years of endless, mind-numbing bureaucracy. get ready for real change. it has started. money is moving. politics is moving. it will be a bumpy ride, but oh, boy, it is exciting. just like last year, we excite you to sit back, take your front row seat and watch history unfold. the third hour of "varney" and company is about to begin. ♪ stuart: getting a tad nervous here. we were up 165 points. now we're up 66 points. but we're 19,828. i will say that the trump rally has resumed in 2017 but we have pulled back a little.
the rally has lot a little bit of steam. look at the big banks. they made the move late last year. they were the big winners. they're all up again today. barclays, by the way, raised its price target on the entire group and they're all up this morning. the price of oil is up significantly. about $55 per barrel as we speak 54.17, that is also up on the day. look who is here, peter kernen. the man who said after "brexit" the market would go up. the man who said after the election the market would go up. he is the author of a great book, "american mojo." used to be at goldman sachs. what a guy. here he is. top of the hour, i did my take. optimism is back. the future looks bright, we're lively, upbeat, positive. that is why the market is up. will you take me to task on that? >> no.
what i like about is the changing contour between intersection and politics. business has been in the hinterlands for a long time. look at involvement and engagement and powerful, thoughtful political leaders in the new government. it portends great things for the economy and good things for the market. likes you said there will be ups and downs, but the challenge is business to rise to the occasion. they're invited back in. they're all over the administration. good for the market. good long term. stuart: is there evidence businesses are spending again on catal invests that create jobs and higher wages, are th doing it? >> i will give you a subtle at this they're getting ready to, look at share repurchases were down big in the fourth quarter. that is way people spent excess cash. they're not doing as much. they have a store of value to expand busins. not yet but certainly making the right kind of moves. stuart: peter, i gave you a big buildup. he is the man who got it right after "brexit."
he is the man who got it right after the election. so, why don't you get of a 2017 market prediction? >> you heard of the honeymoon sign, let us alone? the end of the honeymoon will occur for donald trump. we've had a great move in his postelection, probably 8%. we're up 13% for the year. people are freaking out about the strong dollar. they shouldn't worry about the strong dollar. if there is corporate tax cut that will offset strong dollar impact particularly for small caps which don't export a lot. we'll is a little bit of a low, 20,000 and these marks will be achieved. look for a little bit of a low, if he starts to accomplish things he said, we'll continue on the upward leg. it will be fantastic. stuart: that is with we wait for, you saved it right toward the end. >> yes i did.
you bring me out on the limb further and further. stuart: kernen stay there, i have more for you. we'll get back to peter. now this, senator chuck schumer of new york will make his first speech as the senate democrat leader. ashley, do we have any idea what he is going to say? ashley: weave a some excerpts. samehings he has been saying all along. couple interesting nuggets, if donald trump lets hard-right members of cabinet run the show, which represents elite, special interests of corporate america, not working man and women, his presidency will not succeed. those people that elected donald trump. in other words, look, it is same old theme. we'll work with you where we find common ground but stand against you when we don't believe what you're trying to do, blah, blah. sorry, same thing he has been saying all along. stuart: political boilerplate. he is going to say that. ashley: of course.
stuart: still on politics, fox news is reporting that senate democrats will fight up to eight of mr. trump's cabinet picks, the people you see on your screen. they will hold up their taking of office as long as possible. see the names right there on the screen. matt schlapp with us, republican strategist and american conservative union chairman. theoretically the republicans have the votes to win and get everyone of mr. trump's nominees into the cabinet. that is the way it works. but, if a couple of republicans say no to this guy or no to that person, some of these cabinet nominees don't make it. can you see that happening? >> yeah that is exactly right, stuart. you can see it happening. doesn't happen very often. if they open up a couple of fronts against a particular nominee on couple of different issue points you could have a problem. obviously general mattis has to survive the 60-vote threshold. he is only has to survive that because he needs the waive,
hasn't been out of uniform the requisite number of years but for the others look for democrats try to attack every single possible senate-confirmed post both at secretary level and as we go down through the subcabinet. stuart: matt, if they oppose treasury secretary nominee, mr. minute mnuchin chin or the secretary of state that would bf to reject those people of principled positions. >> that would be extraordinary. we haven'tad a cabinet secretary ocked back like this since john tower t has been a long time. stuart: terribly sorry to interrupt you. i have breaking news on ford, ford motor company. what are they doing? ashley: apparently announcing plans in a live press conference. they will cancel plans for $1.6 billion plant in mexico.
instead investing 700 million in michigan expansion there. right up donald trump's alley. another indication -- stuart: matt, i know you just heard that, fordotor company canceling a planned expansion after plant in mexico. will do it here in america instead. that looks to me is just happening. that looks to me like a trump win? >> i think all it is win, ford with many other american companies saying look, there will abettor business climate in america. taxes are coming down. regulations will be more common sense. they will double down by investing in america. this is more great news for the american worker. stuart: peter kernen is with me, i'm reading this as a trump win. he is strong-arming ford and got them to move, get that plant back to america. >> doing very effective job. virtually all the major car manufacturers, u.s. and european, have facilities in mexico. they use it for a lot of the rest of the world, that's fine. what trump really objects to, this notion of manufacturing it down there to bring it into the
united states tax-free. i think focusing on that has caused a behavior modification in ford and some of these other companies. i will be interested to he see, there are some like gm. they have five billion on their way they invested already down there. pretty hard to undo that. ford is a sign of change, absolutely. stuart: ashley come back to you for a second. ashley: yes. stuart: $1.6 billion plant. asey: in mexico, canceled. stuart: cans sell. ashley:hundred million dollar expansion of the facility in flat rock, michigan, where they make lincoln continental, ford mustang and some electric cars. they will make next generation focus of existinplant in xico to include company profitability. they will do some manufag do there to lo atafter the bottom line. they're doing plans and expanding in michigan. stuart: matt schlapp, come back in, how do you think this will play in the country as a whole
not political professionals but how will people take this? >> there is rejuvenation out there, when reagan was elected to the presidency, there was a feeling america would be back on top as companies start to invest. i think there is a lot of cash on the sidelines. when people see this, little investors, little guys like myself, they say i want in on this. america's back. stuart: matt schlapp, sorry i interrupted you, i thought that was pretty big news. liz: ford is now saying they will safeguard 3500 u.s. jobs with this move. stuart: mark fields, who runs motor company will be with neil cavuto later on today, 12 noon please? 12 noon, this network, mark fields the guy who runs ford will be on with my colleague neat cavuto. that is in about an hour's time. mark that down. ford motor company cancel plans for that mexico plant. the stock is up 2 1/2%.
how about that. i have two other stocks i want to show you. twitter, their boss in china quit, only eight months on the job. she's gone. twitter has been blocked in china since 09. twitter is used in private networks. disney, the company could receive $50 million thanks to carrie fisher's death due to a insurance policy. harry dent, frequent guest on the program. he says market crash is coming. taken a few steps back on that prediction. he is with us in a moment. we'll see what he says about the new year but fst, listen t this >> i may back off say, hey, the worst isver and the governments invented a magic wand. i do not expect that to happen. i think this will be the worst year for stocks since 1931. first quarter gdp is looking half a percent.
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seminole ♪. >> i may backs off and say, hey, the worst is over and the gornments have invent ad mag wand. i do not expect that to happen. i think this will be the worst year for stocks since 1931. first quarter gdp is looking like half a percent. earnings have been falling for the last three quarters and predicted to fall further. there is nowhere to hide. look back at 2008. highest quality treasury bonds, u.s. dollar, everything else went down. this is going to happen. i would say the market will start heading down within the next three months. i will go out an limb from that one. stuart: that was harry dent predict on this show, a market crash was coming, he kept saying that repeatedly. recently he did take a few steps back from the earlier predictions. listen to this. are you prepared -- >> i'm eating crow. stuart: are you prepared to admit you were wrong?
>> okay. i still see a downturn because economic reality is almost zero growth ahead. stuart: all right. harry dent is with us right now. harry, welcome back. i think you're in miami, is that correct? yes you are, you are in miami. >> yes. stuart: you have a book out, the sale of a lifetime. why don't you straighten this out. where will we be, i will just give you a date, july the 1st, 2017, where will we be? >> i think stuart, i think we are, this rally is real. it was a technical breakout, what i call a fifth wave or blowoff rally. so it should go substantially farther, as i said last time i'm on your show. i'm expecting in july, around july is where i think we could have a top, if we start to see some divergences. i think the dow will be 22,000, a little higher. s&p 500, 2500. but, what happens if that is fifth wave kind of peak i've
been looking for, most wave down in burble bursts, 29, 1999, nikkei and tech wreck, in china in 2015, first move down is 40 to 45 1/2% in two or three months. taking off warnings. rally looks real. there is confidence trump will be able it turn around the economy. i don't believe that past the point. that is what the market thinks so we're heading up first half of this year. i think there is a high chance we'll finally see bonds diverge and yields go down and stocks go down. stuart: what you have done, you have postponed the catastrophe? >> yes. stuart: by the middle of this year. >> it is still a bubble. this is a bubble. i will stand on that. i have studied bubbles more than anybody. bubbles can go and go, especially governments are supporting, you get a guy, trump walks in i will create 4% growth. well -- stuart: are you actively telling your people buy now and cash in on the last legs of this rally and then sell bit middle. year?
are you telling people to do that, buy now? >> no. that is not what we do, stuart. we have a number of investment services with our newsletter that can play both ways. we're saying this is a bubble. you can't just buy and hold when you're in a bubble market like 1929, or something like that. so like our newsletter, portfolio, made 15% in 2016 while we were saying hey the markets look like they're going to top. we don't act until we see that we were short bond which is good move. we were short the yen and short gold. we play short and long. we'll not tell people to jump in six-month move for stocks but they can. stuart: let's be clear the bubble starts to burst in the middle of. year and we head down by 40%. harry dent -- >> i think that is likely scenario. we have to see how this shapes up. i have to see die answers you should see divergences like we see in 2016 but this trump rally broke them all.
stuart: harry dent, thanks for joining us. come back soon i trust. thank you very much, harry. i want to get to vennels -- venezuela, a society in collapse venezuelans are flying out and they are desperate and hungry and by tens of thousands. liz: women and children. prisoners in jail are starving. disturbing images of emaciated prisoners. there is this theme out there amongst people like sean penn and others who support what is going on socialist regime in venezuela saw the oil price to collapse. if that were true, canada would be in a tailspin. canada is not in tailspin. what happened was the socialist government nationalized farms and factories, and took control of the food supply. now food supplies are under armed guard. the military is after --
ratcheting prices for food in venezu thcountry is in a tailspin. stuart: what the devil is to be gained there, i do not know. >> extraordinary the way leadership held on despite horrible things. they advanced $5 billion to their leading bank to keep it alive. every time there is payment of foreign debt, they cobble together somehow billions of dollars to pay it off. the real fear of socialism, they are good at sticking around even when all hell is breaking loose. stuart: dear lord. ford motor company canceled a plan to build a 1.billion dollars plant in mexico. they canceled that plan. they have been strong armed by mr. trump. ford says it will build electric cars and autonomous cars in michigan. the stock is up 2%. bruce springsteen weighing in on mr. trump. we'll tell you what he had to say, but first, i want to play you a clip from 1980. this is the night after ronald reagan was elected to his firsterm andpringsteen had
stuart: moments ago, you heard bruce springsteen commenting on election of ronald reagan. he was frightened about it. fast forward to now. here's what mr. springsteen has to say about the election of donald trump. roll tape. >> when you let that genie out of the bottle, bigotry, racism, when you let those things out of the bottle -- >> intolerance. >> intolerance, they don't go back in the bottle that easily. if they go back in at all the. stuart: no comment. look at the screen, because the dow, the rally is stalling, so to speak. we're up 71 points. we're up nearly 170 points. we've stalled the rally, but it is still a rally. check share price of ford motor company, they will not build a $1.6 billion plant in mexico, not going to do it. they are building the electric
stuart: all right. the ford motor company stock is up 2 1/2%. they have said that they are going to abandon plans to build a $1.6 billions plant in mexico. what else? ashley: they will instead do a $700 million expansion of their current facility in flat rock, michigan, which will be able to expand the electric vehicles, autonomous vehicles and ford mustang and lincoln. there you go, no more $1.6 billion facility down in mexico. now they're reinvesting in michigan. for mr. trump, another victory. stuart: that sounds to me like a win. ashley: yes. stuart: he strong-armed ford to bring the jobs back over here. am i reading too much into this, peter. >> i don't know, he directly sent out a tweet to gm because of making chevy cruze fast backs in mexico.
the majority are made in the united states. that is stock four-by-four. pe four times. put it in context, microsoft is 30 times, amazon is 173 times and earns and gives 4% yield. these auto stocks are ripe for the picking. stuart: wow, that is fascinating. peter, stay there, i got more for you. quick check on the health care stocks. president-elect trump tweeting this morning on obamacare, here is the quote. people must remember that obama care just doesn't work. it is not affordable. 116% increases, arizona. bill clinton called it crazy. he continues, the democrat governor of minnesota said the affordable care act, obamacare, is no longer affordable, and it is lousy health care. that's from a tweet storm from mr. trump, covering a variety of subjects earlier today. zane tankel is with us this morning. he is apple metro ceo. he owns literally or operates
dozens of applebee's, is that correct? >> that's correct. stuart: would the repeal and replacement and fixing of obamace be the biggest best thing to happen to the restaurant business in america? >> one of the best. it is a line item. it is a line item on our expense, but the big thing in the restaurant space is the top line, not a line item of your expenses. i can tell you we're kind of a laboratory of the country. when people, our market is middle class, lower middle class, middle middle class and upper middle class. when tax refunds come in, our sales go straight up. straight up. stuart: okay. >> if we get checks coming in 12 months a year, that top line absorbs everything. we are a, we're a microcosm. i'm just a little guy. we only do 160, $180 million. there are millions of my guys, many more than the fordses out there, when the tax refund come in, boom. stuart: bigger than repeal or replacement much obamacare?
i always thought that ruined your cost structure? >> without a doubt, stuart. it is not a one thing. it is a bunch of things. we lived under the paler of obama for eight years. there was a cloud. management was demonized. entrepreneurs were demonized. businesses were demonized. all that is lifted. i'm free! you took the cuffs off my hand. there is a lot of evolving things that will happen. everything happening keeping gdp at a very minimum deals with a top line. stuart: okay. >> the paler of the obama administration kept a lid on top lines of everybody. stuart: do you share in this optimism? forget politics for a second. forget your position at applebee's and other businesses you run. >> yes, yes. stuart: forget that as a second, you as a citizen, someone who is out and about in society, do you feel a new mood, do you? >> i certainly do, but let me call it cautious optimism. these are small wins. stuart: why?
>> because the wins happening now are small wins relatively speaking a billion 1/2 dollar plant is a big deal on any individual but it's a big country. we have to roll it out and see how it really takes place and takes shape. much better, i'm certainly optimistic from where we came to where we are. and do wve tremes up tick and do we have tremendous blue skies ahead? absolutely. we didn't have that with obama. socialism doesn't work. he is clearly a social it who is trying to rewrite historical eight years how great everything was. i can tell you, as a guy running a company doing $180 million, he was terrible. he was the worst! he was, in every way, shape and form i felt demonized. my associates in our space felt demonized. it was not a good thing to be successful. it was a bad thing to be successful. what this man never understood was, because he has been a
politician his entire life, that successful companies hire people, not unsuccessful companies. the poor don't hire the poor. stuart: so for your business, your business life, you would rather have tax cuts for individuals than the repeal of obamacare? stuart: if you had to have one and couldn't have both you would take the tax cuts? >> i would take the tax cuts. you know what, if we have successful business, stuart, i know you would, i know you would, if we have successful business we can pay the line items as they come down? do i like it, impact and hiring and building new restaurants? cost us 3 1/2 million dollars to build a new restaurant. i built like crazy first four years because i voted for him. stuart: you did not tell me. >> but i didn't the second time around. fool me once. but the second four years, of his, we didn't build a one. not one. stuart: says it all. zane, you're all right. thank you, uart.
thanks, stuart. thks for having me. stuart: never eat lunch here again. after obama administration put sanctions on russia, president-elect trump is questioning reports from the intelligence community that the russians hacked our election, or had an effect on the election process. trump says, he has information that they don't have. let's bring in ambassador james woolsey, former director of the cia and a trump senior advisor. mr. secretary, mr. ambassador is the correct form of address, isn't it? >> anything's fine. stuart: james, listen to this, is it possible that mr. trump knows something that the intelligence community does not? >> well, yes, it is possible and it's also possible that people are using different definitions of hack. i mean hack can have an effect on the out come is extraordinary, would be extraordinary thing.
fiddling around via cyber who is voter and who is not and so forth. stuart: that is not happening. >> we know that has not happened. probably what most people think of, fiddling with voting machines and so forth when they think of hacking an election. stuart: right. >> so if one looks at, did the russians do what they have done with other technologies, print, photography, et cetera, over the decades, especially in europe, occasionally here, going against the catholic church, going against jews, they do this sort of thing all the time. they call it disinformation. and so, s there some disinformation here? maybe? i think we'll know more when we hear what mr. trump has to say and also what the u.s. government, if it has some sort of a response. this is interesting and important subject. stuart: do you believe that the russians intervened deliberately to help donald trump by
releasing negative information about the dnc and the democrats? >> i don't -- i don't know about the russians motivations. i think there is quite probable that they did something but, exactly what their motivation was, exactly what their target was, exactly what they were trying to accomplish? i don't know. stuart: do you think we'll find out from mr. trump. he says he is going to reveal what everybody else does not know today or tomorrow? >> i don't know, but i'm listening with the same attention i imagine a lot of other people are. stuart: yes, we are indeed. james woolsey, mr. ambassador, thanks so much for joining us. we'll see you again soon. >> sure. good to see you, stuart. stuart: this is for peter kernen, president-elect trump tweet about general motors, this was earlier this morning before he was tweeting about anything else. general motors is sending mexican-made model of chevy cruze to car dealers tax-free across-border. make it in the usa or pay big border tax.
gm says that mr. trump was factually wrong. here is the quote from gm's statement. gm manufactures the chevy cruze in ohio. all chevy cruze sedans are built in the ohio. they build a hatchback for global markets in mexico, with a small bummer sold in u.s. what do you think of mr. trump's tweet is he got factually wrong. >> 320,000 chevy cruze es are made in huge plant in lords town, ohio. they make about 50,000 in contrast in mexico, most for foreign markets. they are hatchbacks. most americans don't buy hatchbacks. they are not a popular model. what is interesting here is, what is trump's approach? is to sort of take these warning
shots and fire, everybody pay attention, what is going on behind the scenes. what hasn't been reported very widely, january 23rd that huge plant is canceling a shift. stuart: in ohio. >> in ohio. that will impact 2500 workers. it is more like i'm keeping an eye, i'm watching you, and you know, it is like uncle sam says, i want you. trump is saying i'm watching you. what i really think is sort of interesting is, he is not really pushing the needle so much as reminding people that papa is watching. stuart: and a couple of hours after the gm tweet from mr. trump, ford says, we're canceling that plant in mexico. >> well actually very interesting as you bring that up, because gm is midway through a $5 billion commitment in mexico. ford had the opportunity, to say we won't jump in into that. liz: i want to interject. obama administration fuel emission standards, 50 miles to
the gallon. pushed automakers to make lightweighcars. th don't make any money and lightweit carshey move the factories to mexico because the americans like bigger cars. stuart: i like warning shot across the bow. to see what happens. he does it all the time, all the time. i will take you to the rose bowl, not literally, southern california came back from a 14-point deficit in the fourth quarter to beat penn state with a last-second field goal. there is happened. 52-49 the score. most combined points in rose bowl hitt. one of only six clergy invited to participate in the president's inauguration. he is with us next. we'll get his take on several topics including israel. we'll talk about istanbul, the new year's attack. stay with us. a lot more coming up for you. support team for walking me through my first options trade. well, we're all about educating people on options strategies.
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merck, pfizer, johnson & johnson with up arrows. new highs, new lows. disney gets an upgrade and we see a new high whiletive abercrombie & fitch gets, and as coand jeffries. barclays like the banking group. positive on the group. jpmorgan as a top pick. lower taxes, higher rates, all of this will aid and be less cumbersome environment.
stuart: bill ford, jr., he of ford motor company fame, has been talking about ford motor company with mr. trump now, ashley. ashley: couple things. he says, i spoke to donald trump this morning to tell him of the decision by ford to invest in the u.s. and cancel the plant in mexico. so that is kind of interesting, getting out ahead of that story. also ford ceo mark fields says that the decision to cancel that mexican plant, $1.6 billion plant, was primarily you due to lack of small car demand. cheap gas has fueled the, you know the big suvs. stuart: we were saying it was a trump win. they're saying it is not a trump win, it is the marketplace? ashley: exactly. stuart: interesting. all happening at same time. ashley: it is,. stuart: our next guest is just one of six clergy invited to the inauguration, which is as you know, 17 days away. rabbi marvin hier from the simon
weisenthal center. he is one of the six clergyman. great to see you again. >> a pleasure to be on. stuart: i like your reaction to the united states abstaining as opposed to street toting that u.n. resolution that ruling israeli settlements in the east jerusalem and west bank. what is your reaction to that, sir. >> that was outrage just. but imagine a few weeks before a new president takes office to pull a stunt like that. now the problem is, most people do not know that settlements have been discussed over and over at the united nations and their mantra is, they're an obstacle to the peace process, to the two-state solution. not once has the gutless united nations and the security council had a meeting, called a meeting how to dislodge hamas, a
terrorist organization, committed to israel's destruction, from gaza, because what we have before us now, is a three-state solution. it is like an accordion. you have ramallah on one side. you have the hamas terrorists in gaza. and you have israel in the middle. and to say that settlements is the reason, that that is the only obstacle for a two-state solution is untrue, ridiculous, and prejudicial because the united nations, not once has ever discussed how do we dislodge hamas from gaza.rt: why in the inauguration, and what role will you say anything, if it is appropriate, will you say anything about that u.n. resolution? >> well, i'm delivering a prayer. stuart: yeah. >> i will hit modern themes. i'm honored to have been asked to do so.
i believe it is the first time that a rabbi has been on the inauguration since 1985. so i'm particularly honored, and i look forward to making, it will be a short prayer but it will reflect on the 21st century. stuart: rabbi, can i just ask a political question? in the last election hillary clinton got 68% of the jewish vote. after the election, there was that vote at the united nations pressed by president obama. do you think he see any distance coming between american jewish population and the democrats? >> wl, i can say that there is a large consensus amongst american jewish organizations that this was a disasterous move on the part of the obama administration. it is not only coming from people that are trump supporters, it comes from people
who are loyal democrats and who feel that the united states has made a serious error. stuart: okay. it's aery interesting situation, rabbi, and we'll be looking for you at the inauguration which is what, 17 days away. congratulations on your participation in the event. >> thank you. stuart, yes, sir. i will talk to you now about a computer glitch. a real serious computer glitch that brought u.s. customs to a virtual stand still. air travelers across the country severely delayed especially chicago, new york, miami, where visitors in customs had to be processed by hand. look at those crowds. very upset people trying to get into the country. the glitch we are told has been resolved. president-elect trump finds himself in position to nominate 100 judges nationwide to various branches of the judiciary in the next four years.
judiciary and his reshaping will last maybe a generation. am i going too far with that statement? let's ask judge andrew napolitano. that is a dramatic statement. >> yes, i don't think you're going too far. the president has not only has on his plate the vacancy left by the death of justice antonin scalia on the supreme court, there are 114 vacancies on federal trial courts, called the united states district court and federal appellate courts, called the united states court of appeals for the blank circuit. country has 12 circuits divided by geographically for the most part. their job is to try cases and rule based on facts and law as congress has written it and appellate courts and supreme courts terped the law. but the federal appeals court where president-elect trump's sister sits on a federal appellate court that covers new jersey, pennsylvania and delaware, they are the final
say, are you ready for this? 98% of federal litigation. so only 2% of cases in the federal system make their way to the supreme court. other 98%, federal appeals courts have the say. because judges retired, resigned, died, and in part once justice scalia died and republicans and congress stopped holding confirmation hearings for president obama's nominees, and then president obama stopped nominating people to fill these vacancies, donald trump will inherit in 2 1/2 weeks, the largest number of judicial vacancies of any president in the modern era. stuart: whoa. >> and can significantly shape the attitude of the federal courts by the mind-set of the people he chooses to fill those seats. stuart: that's why the liberals are really upset and worried? >> yes.
they are all lifetime appointments. stuart: hold on a second. i have something coming into us here. donald trump's director of social media, dan scorvino what is he saying. ashley: when he is not actually tweeting, retweeting, director of the ford to scrap mexico plant invest in michigan due to trump policies. stuart: claiming victory. whereas you're saying maybe it is the marketplace. ashley: dictating moves, yes,. stuart: if i could claim a victory i certainly would. we're not done yet. we'll ask peter kernen for one more market prediction. he has been right before. we'll be back.
there is a lot of good stuff coming our way. we will be back. stuart: whatever you say. we are up 30 points. thank you, one and all. it is yours. "cavuto" how was your christmas? stuart: excellent and happy new year to you all. neil: are you generous with christmas present? stuart: where are you going with this? neil: i know how you feel about shopping which i can't see you opening your wallet. looking for my gift to arrive, nothing. stuart: can you see me biting my lower lip? neil: the best british bill clinton there. thank you, my friend. we are looking at shares of board up 3% on news that