tv Varney Company FOX Business June 11, 2020 9:00am-12:01pm EDT
maria: welcome back. before we hand it over to stuart, let me show you futures. we are near the lows of the day. we will have an opening in about 30 minutes and it will likely be down 900 points on the dow. thank you so much for joining us. dagen, as always. "varney & company" begins right now. stu, take it away. stuart: i think you got it right. here it comes. good morning to you. good morning, everyone. well, look, after one of the most explosive stock market rallies in history, perhaps we should expect a selloff. well, that's what we are going to get today. the dow is looking at a 900 point loss. same percentage drop or a little bit less for the s&p, down 2.6%. the nasdaq is going to be down 1.6%. a huge selloff all across the board. the backdrop to it. first of all, 1.54 million new jobless claims filed last week.
that continues a down trend but only just. a spike in new virus cases, especially arizona and texas. the words "second wave" have some investors worried. the federal reserve, well, jay powell sees the effects of the virus dragging on the economy until 2022. that's not the rapid recovery the administration sees. larry kudlow joins us in our 11:00 hour. so what do you do? do you hold on to the stocks you've got, do you buy this dip? that was successful in the past. or do you get out and take your profit while you can? we will try to answer at least some of those questions. politics. joe biden says president trump may try to steal the election and joe biden says the president promotes racism. his words. this as demonstrators create what they call a no cop zone in downtown seattle. it was created overnight.
the president is not happy about that. and this afternoon, mr. trump heads to dallas, texas. we expect to hear from him about police reform and maybe about any new help for the economy from the government. brief stories. the europeans are going after amazon. expected. disney will fix splash mountain to get rid of any hint of racism. and wait for it, poor patrol takes heat for showing the police in a bad light. "varney & company" is about to begin. stuart: all right. the story of the morning is the selloff. here it comes. i'm going to go through some stock groups for you to show how bad this selloff is. first, the airlines. they are going to be way down. this is the third day in a row they are down but they have been rallying for more than a week before that. look at the percentage losses
for all the major airlines. it's pretty much the same story with the cruise lines. they have been rallying. they took a hit in the last couple of days. they are taking a big hit this morning. that's the cruise stocks. we will get to them in a second. casino stocks, well, yeah, las vegas, the strip, partially reopen. okay, there's casinos for you. the strip in vegas partially reopened and the stocks went up but now they are selling off big-time. maybe this is because of what jay powell was saying about the lingering effects of the virus and maybe this possible second wave that people are talking about. hotel stocks, they are all down as well. all of the sectors that we have been listing had been making gains on recovery and reopening optimism, today they are way down. the big banks, they have done okay because interest rates were rising, but this morning, the yield on the ten-year treasury is down significantly. that hurts the bank stocks and the financials generally.
the retailers. if we have the effects of the virus shutdown lagging or dragging on until 2022, the retailers are not looking good. their stocks are down in double digit percentage terms this morning. all right. big tech. not going to be a bright spot today as it has been in the past. all of them down but not quite the same percentage drops as we have seen in other groups. i think we need a professional market watcher to join us now. we've got one. his name is brian belski. last time he was on, i labeled him brian belski the bull and he is a bull. he was a bull. tell us, are you still bullish today? >> we are. good morning, everyone. good morning. thanks for having us. i would say this. the selloff here today speaks to the fragileity of the investor mindset and the emotional side and rhetoric side that drives day by day type of trading but remember, as you put out in your
preamble this morning, we are now nine days into the month of june and when the market opens at 9:30 here, seven of those days were excessively strong and we saw very big moves in these areas that you highlighted that quite frankly have had secular issues even before covid. were hammered during covid and coming out of covid, they are going to be really forced to employ secular systemic type of fundamental change within their industry. so that's why tech in particular is doing better on these down days and it doesn't mean that the value and the cyclical move is over, it just means that on days like today, this is when you want to buy the banks. stuart: okay. that's what i want to get to. are you buying this dip, because if you bought the dip in the past, you would have done very well. are you buying this dip today? >> here's what we would say in terms of buying dips. we are fully invested all the time. at the end of the day we have core positions that we follow in
terms of stock positions in the portfolios that we manage both in the united states and canada, so we are maintaining those positions and on days like today, where you own concentrated portfolios, 35 to 40 names, these are the type of days where you want to recalibrate your weightings so yeah, we are from a stock perspective, if someone is buying our portfolios today, we are buying the banks. stuart: got it. still the bull. thanks for joining us, brian. see you again real soon. one of the reasons for the market being down today, concerns about this uptick in virus cases and the use of the expression "second wave." look, in the last seven days, there have been approximately, what, 100,000 new cases in this country. you can see it in the chart. a few spikes over the last couple of months. and a big increase recently. dr. marc siegel is with us, fox news medical contributor. obvious question, doctor. are we opening up too quickly? >> i don't think so, stuart. i don't think we are getting the real headlines here. if you look at arizona and
texas, the reason you are seeing a spike in cases is primarily because we are testing more. there's actually a testing blitz going on in texas right now. that's why you are seeing more cases. in terms of hospitalizations, texas has been pretty much around the same for weeks now and in terms of arizona, you're seeing a lot more hospitalizations but in part, for non-covid related matters. over 80% of these hospitalizations are because people are now less afraid to go to the e.r. because they are having a heart problem or because they could be having a stroke, god forbid. this is the real headline here. we also need to look quickly at states that have done well with reopening like wisconsin. it's in the "wall street journal" over the past 24 hours, great editorial about the idea that wisconsin reopened on may 13th and did it responsibly with social distancing still in place. has not seen a spike in cases. same with georgia, same with norway, by the way, the country of norway, switzerland and
germany. reopening it working but we have to do it responsibly with social distancing. stuart: got it. dr. marc siegel, thank you for joining us. always appreciate it. thanks very much. some news about vaccine treatment and all the rest of it, first, moderna, they are going to start the final testing stage of their vaccine. that's in july. moderna is up in a down market. regeneron are beginning the first clinical trial of their antibody cocktail for the prevention and treatment of the virus. they are up eight bucks, 1.3%. johnson & johnson, they are moving up the start of human trials for their vaccine. they are moving up to the end of next month. the stock is down just a fraction in a major league selloff elsewhere. now, two headlines for you on amazon, a stock that's really been moving recently. it's moving today, too. one, they are facing antitrust charges in europe. give me that story, susan. susan: according to the "wall street journal," it looks like the european antitrust regulators will be filing
charges against amazon over their treatment of third party sellers on their platform, possibly as early as next week or even this week. of course, the "wall street journal" sources. what it stems to is the fact amazon might be abusing its power as one of the world's if not the world's largest online marketplace and selling their own private label products as well and using that information that they scoop up from these third party sellers and their products to better make amazon label products. that's a problem for the eu. we know that european regulators have been eyeing a lot of these big tech companies and fining google in the billions, also looking at facebook as well. stuart: the other story on amazon is amazon is blocking police departments from using their facial recognition software. what do we know about this? susan: a one-year moratorium for amazon working with these police forces and they say it's to give d.c. more time to come up with better regulation. we can bring up the statement
from amazon here. it says that we hope that this one-year moratorium might give congress enough time to implement appropriate rules and we stand ready to help if requested. politicians in d.c. on monday also floated the idea of outright banning the use of facial recognition by police forces and there have been numerous studies including one by m.i.t. that shows facial recognition unfortunately fails to accurately identify minority faces. ibm this week also said they are getting out of facial recognition entirely. microsoft has also asked for more oversight and concrete rules around this technology as well. amazon, we don't exactly know how many police forces have used amazon recognition technology. we know only one has been officially listed in oregon but we know also that amazon works with close to 1,000 police forces across the country when it comes to using their ring surveillance. that's the video on the video doorbells that they employ. stuart: amazon's stock right now is down $42. just above $2600 a share.
take a look at this video. happened overnight. protesters in seattle, they literally took over city hall. now, i know for a fact the president was watching so ashley, what did the president say about this? ashley: well, simply put, he tweeted that domestic terrorists have taken over seattle run by radical left democrats and of course, of course, and says law and order. as you say, stu, those protesters taking over city hall. this is just days after a six-block area around downtown seattle have been declared the property of the seattle people, basically zoned off that area and there's actually a police precinct in that area that's been zoned off and that's been shuttered. so chaos rules. the protesters are demanding that the mayor of seattle step down if she refuses to defund the city's police department. mr. trump says take back the city, seattle.
the mayor shot back at mr. president and said get back to your bunker, mr. trump. it's ugly. stuart: i call that a standoff. that is an occupation in the center of seattle. right. one more time. let's check futures. we've gone a little further south in the last few minutes. now we are going to be down about well over 900 points for the dow, 80 points for the s&p. the nasdaq coming off comparatively well, down 1.5%. still, big losses across the board. in our 11:00 hour this morning, top white house economist larry kudlow will join us. one of the questions is the market down on concerns about a second virus wave. i want to know if he's worried about this. we will certainly ask him. then there's cancel culture taking no prisoners, yanking cops and live pd off the air. briefly, take a look at their next potential victim. please watch this.
>> am i glad to see you. chase is on the case. stuart: in case you don't know it, that is paw patrol, a children's cartoon. because -- they are going after it because you may not portray the police in a favorable light at all, ever. we are going to debate that next. usaa was made for right now. and right now, is a time for action. so, for a second time we're giving members a credit on their auto insurance. because it's the right thing to do. we're also giving payment relief options to eligible members so they can take care of things like groceries before they worry about their insurance or credit card bills. right now is the time to take care of what matters most. like we've done together, so many times before. discover all the ways we're helping members
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culture. it's sparing nobody. watch this. you might recognize a few of the items here. roll tape. >> -- try to get there as quick as we can. it's around the corner. >> you're supposed to follow the traffic laws, right? stop at red lights, use hand signals, things like that. stuart: look, the first clip there was from "live pd." lauren, that's a very popular show, isn't it? is it gone? lauren: one of the highest rated on cable. a & e has canceled it. it says this. this is a critical time in our nation's history and we have made the decision to cease production on "live pd." going forward we will determine if there's a clear pathway to tell the stories of both the community and the police officers whose role it is to serve them. so it is pulling the plug one day after paramount pulled the plug on "cops." can't portray law enforcement these days. stuart: i want to talk about "paw patrol."
my grandchildren, they watch it. you've got young kids. don't they watch it? lauren: um-hum. absolutely. we love "paw patrol." even chase, the do-good cop, german shepherd in the show, you can't even portray him patrolling the neighborhood because that's considered wrong these days. this is what the "new york times" in an op-ed had to say about "paw patrol." seems harmless enough and that's the point. the movement rests on understanding that cops do plenty of harm, even fictional cops, they were fictional cops. one quick thing here. nickelodeon and "paw patrol" tweeted out this whole we're listening, we're muted while we listen to the protests going across the country right now. they tweeted that out and people responded back, euthanize the police dogs, defund "paw patrol." stuart: oh, man. i've got to move on before i explode. disney's splash mountain. what's wrong with it?
lauren: that's the log flume ride, based off the 1946 movie "song of the south" which is a racist movie. disney does not show it on its platforms including disney plus. there is now a change.org petition to have disney retheme the ride to princess and the frog. that movie is the first to portray a black disney princess. stuart: okay. i think i got it all. thank you very much, lauren. let's wrap all this up with dan crenshaw, congressman, republican from texas. "paw patrol." really, congressman? >> well, it seems obvious, right, it's not diverse enough. there's no cats in "paw patrol." they want some kind of woke patrol that isn't based in police officers but based in some kind of, you know, almost religious-like enforcement of whatever the progressive left wants. but it's really concerning that they are canceling other shows
like "cops" and "live pd" because these show what police deal with. it shows the difficulties they deal with, people screaming at each other, screaming at them. they don't you to actually see that. stuart: where are you coming from on this issue of defunding the police? >> i mean, it's complete nonsense. the sad part is it's a radical left slogan manifested into real policy, in los angeles, new york city, minneapolis, so you can't ignore it anymore. you can't just blame it on the fringe left. this has gone mainstream and it's crazy. it will harm the communities that we seek to help the most. it harms communities of color. there are no examples where that's not the case. they like to point to camden, new jersey as a place where they defunded the police and all of a sudden things got better. it's not true. they actually increased police presence there. what they did was dismantle the police unit which saved the city money, which allowed them to hire more police. you need better policing, more policing, you need to engage in the tactics that work like broken window theory in
community policing. that's how you actually help these communities, not discriminating against the police, not discouraging the police from doing their job and certainly not defunding them. stuart: that's for sure. congressman, you are from texas. you are a republican. the president goes to dallas this afternoon. i have to tell you, as you know, texas is seeing a rise in cases. virus cases. what do you make of this? >> yeah. the media has really pivoted to this rather quickly. they try to scare you with this number that increases -- that there's an increased spike of 36% in texas. what does that actually translate to? less than 500 new hospitalizations in a state of 30 million people. okay. so it's just over 2,000 total hospitalizations. we have thousands and thousands of bed spaces available. we have thousands and thousands of ventilators available. the majority of that spike occurred in houston, where there's been obviously mass gatherings for the last couple weeks, so it shouldn't be all that surprising. but here's what everybody needs to know. the only reason we should have
ever locked down was to save our hospital system. once it became clear that our hospital system was to be completely underwhelmed, that was an indication our lockdown was way overdoing it. that's the truth. that's what people need to understand. there is an element of risk out there. there's a virus without a cure, a virus without a vaccine. that is true. but guess what, you have the freedom and the power to engage in proper social distancing as you get back to your normal life. that is still the message, that is still the track we stay on. we do not choose the costliest possible option of lockdowns in order to mitigate the risk. that was always a bad option except to save our hospital systems. when our hospital systems are not even close to being overwhelmed, we must stay the course. stuart: congressman dan crenshaw, thanks for being with us on a crucial day. very important. we appreciate it. quickly, the markets, we are going to open very sharply lower in six and a half minutes' time. down 800 on the dow. we'll be right back. ♪
i'm not sure -- he didn't hear me. okay. we have not got a clear link there, audio-wise. i will go through the market and look at what we've got. if you are just joining us, you may be surprised to learn that the market is so far to the south. we are looking at an 800 point drop for the dow, as you can tell from the bottom right-hand corner of your screen and all kinds of groups, whether it's big tech, airlines, cruise lines, you name it, all are going to be down. there's a backdrop to all of this. i think primarily, the backdrop is the federal reserve. yesterday afternoon, between 2:00 and 3:30 eastern time, jay powell outlined his view of where the economy is going. it was not a particularly rosy view. he thought that the downturn, because of the virus and the lockdown, would extend all the way through until 2022. that's not a very rapid or explosive recovery. meanwhile, the administration has been calling for precisely
the opposite, a rapid growth in the economy starting right now. mike murphy is with us. okay. come on in, mike. i'm asking, look, every time in the past we had a dip, if you bought it, you did well. are you buying today's dip? >> 100%, stuart. good morning. it's great to be here. these concerns that are spooking the market right now about coronavirus, they will be short-lived because we have already played this game. we already dealt with coronavirus head-on and the market got spooked and then we rallied back almost in some cases to brand new highs. so you can't be concerned with if a second wave comes. we will deal with it as we dealt with the first wave. any pullback, a 3% pullback at the open is a great opportunity for people to put money to work in quality names. stuart: all right, mike. we had dr. siegel and ben crenshaw, republican congressman from texas, both telling us that
the spike in texas was largely the result of a vast increase in the number of tests made and taken and that accounts for that spike. okay. you hear that bell ringing? when it stops, they start trading and here we go. it is 9:30 eastern time this thursday morning. we are off and running and i'm sure we are headed big-time to the southlands. if you look on the left-hand side of the screen, radio listeners, for your benefit, we have 29 of the dow 30 in the red. johnson & johnson is the sole winner among the dow 30. overall, the dow industrials have dropped 900 points from yesterday's close. barely above 26,000 as we speak. that's a loss of 3.3%. the s&p 500, that is down 2.7%. way down but not as bad as the dow. the nasdaq composite, that's down 2.3%. that's pretty bad but not as bad as the dow. all right. i've got the dow losers. these are the stocks that are
dragging down the industrial average. boeing, dow inc., et cetera, there's a long list. raytheon, dow inc., exxon, chevron. you can see energy right up there amongst the dow losers. that's because the price of oil is down. the s&p losers, the biggest losers in that 500 index, read them, cruise lines, airlines, all across the board, and i'm looking at aapache corporation, not doing well. we've got united airlines, american airlines, wynn resorts, marriott hotels, expedia, et cetera, et cetera, all across the board, they are down. the airlines, we got them, yes. down again. double digit percentage terms after they had been rallying for more than a week. same story on the cruise lines, also down after their big rally. left-hand side of the screen. makes tough reading, actually. financials, they are on the down side and that's because interest rates are coming down.
not good for those guys. all right. susan, these stocks were just at all-time highs. they are down much less in percentage terms. i'm talking big tech now. they are down but much less of a percentage loss than the other stock groups. what do you make of that? susan: yesterday we had the nasdaq closing above 10,000 for the very first time. what's driven this advance to 10,000 from 9,000, i was looking at these stocks, the zoom videos, tesla, regeneron, nvidia, amazon and ebay. this is the fastest 1,000 point gain for the nasdaq going back so it only took 119 days to cross that extra 1,000 point at 10,000 from 9,000 and it only took, what, the fastest since 2000 when it only took 49 days for the index to go from 4,000 to 5,000. a lot of people see this as a lot of retail buying coming in. not a lot of big fund managers have put a lot of money to work. in fact, there's a lot of hesitancy given we don't have a
vaccine yet. some say maybe retail investors are the ones looking at the technology plays they know, apple, amazon. we had b of a, bank of america raising their target on apple today to $390 apiece. stuart: the stock is only down a couple bucks at $350. all right. mike murphy, come back in, please. i have big tech on the screen. leave it on the screen, please. mike, is there any one of these five stocks that you would buy today? >> stuart, the short answer is no. i wouldn't sell them but they are all very extended here. we had the pullback due to coronavirus back in march. big tech got hit and hit hard. you saw names like apple, like microsoft, that you could buy at 30% to 40% discount from recent highs. you're not seeing that today. so to go out, if you don't own apple and you are thinking for the first time can i buy it at $350 a share, my answer is no, there's better markets out there. if you do own the stock, hang on
to it because there's still a lot more upside. stuart: can you give me one stock that you will buy today? >> fed ex. fed ex is a name that we have owned. we bought it, we have ridden it all the way up. now fed ex is getting hit with concerns for a second wave of coronavirus. fed ex is a name i would buy. walmart is a name i would buy. we talked about it several times but uber is a company i believe is still going into the mid 40s so any sort of selloff in a name like uber, on a day when the market is down 3%, we are actively putting money to work there. stuart: we are listening to you, mike murphy. thanks for joining us this morning. later in the program today, dan ives will join us. remember, he's the guy who thought tesla would go to $1,000. it did. he thought apple would go to $350. it did. so what does he think from here on out? will both those stocks or either of them go higher? that's 11:00 eastern. dan ives on the show. let's have a look at boeing. it is way down today. another big, big drag on the dow
industrials but ashley has found a positive headline. what is it? ashley: yeah. they hope to resume deliveries of the ill-fated 737 max in the third quarter. now, there are reports, not confirmed, that there will be a recertification flight done later this month which will pave the way for the faa to give permission for this jet to start passenger service again. it's been grounded since march -- well, march 19th -- 2019, i should say, of last year, after those two fatal crashes. boeing also has been hit with a large number of cancellations. if you look at the number of canceled orders from march, april and may, they total 272 canceled orders. so the good news is, 737 max could indeed be back in production, back in service in the third quarter. we'll see. but in the meantime, boeing continues to take hits from canceled orders. stuart: by the way, boeing's drop today is costing the dow
130 points. it's had a massive negative influence on the dow industrials. here's another big name dow stock. disney. it's way down today. 3.7%, big loss. susan, no, sorry, lauren, you have dug up a positive headline on disney. what is it? lauren: i sure did. disneyland in california, the happiest place on earth, is reopening in phases. it starts in early july. the disney downtown, the promenade shopping district, that opens on july 9th. then the entire park will open a week after that on july 17th. that is one week after disney world in orlando opens and the hotels will reopen on the 23rd. of course, they are taking baby steps. you make a reservation, your temperature is checked, face masks. no characters meet-and-greets and no parades. stuart: simple as that. thanks very much. disney is at $117. overall, the market's been open
for six and a half minutes and we are down now 780 points. we have come back a little. we had been down 3.3%. now it's 2.8%. look at this. this is the ten-year treasury yield. this is a very important indicator. it's at .67%. as of right now. that means money is flowing into treasury bonds and out of stocks. that's how it works. the price of gold, up 25 bucks at $1745 an ounce. and oil, way, way down, $36 a barrel. that's because of the economic outlook from the federal reserve. $36.70 on oil. president trump painting a rosy forecast of the economy. watch this, please. >> the economy will be next year will be maybe the best it's ever been. you can already see -- stuart: however, the federal reserve does not see a really powerful recovery, not in the near term. what does larry kudlow think about that? again, he joins us in our 11:00 hour.
then in georgia, some people waited in line for hours to vote in this week's primary elections. what does that mean for the election in november? i will ask georgia congressman barry loudermilk what he thinks about it. then there's fox.com, the website where you can buy things in bulk. it's seeing a spike in sales as people prepare to go back to the office. the ceo joins me on that coming up later on the show.
stuart: it's still obviously a down day. we've got the dow industrials off 800 points. look at that nasdaq down 239. big tech, appropriate to check them now, not down as much as the other groups of stocks, but still off 1%, 1.5%, 2% down across the board for big tech. beyond meat, that stock is down 4.5% even though they've got an
expansion of their manufacturing capacity in europe. the stock is down seven bucks. look at the level, $149 on beyond meat. continue online shopping. well, is that booming while people are stuck at home? lauren, i think you have numbers on how big a boom this is. lauren: this is going to blow your mind. so in april and may, we spent $53 billion online, according to mastercard. $53 billion. that's a 93% jump year over year and it is more than every cybermonday from 2007 to 2019 put together. so in two months, we spent more than we did in 12 years on the busiest shopping day of the year which is cybermonday online. stuart: that did blow my mind. that's an awful lot of money and it came real fast. lauren: it's crazy. stuart: it is. it is. i think it speeded up a process that's already begun. really speeded it up. all right. speaking of online shopping, yes, we are reopening, people
are going back to work. trying to get back to the office as well. our next guest sees a surge in orders from these offices that are about to reopen. the ceo of boxed is back with us, a frequent guest on the program. people are going back to work in their offices. okay, it's gradual. what are the offices stockpiling? what are they buying from you? >> we are starting to see a little bit of a difference here. before it was always snacks and coffee. we are starting to see a little bit of a shift towards single serve items, we are starting to see a lot of ppe, hand sanitizer, masks and other equipment that folks feel they need in an open office environment to go back to work. we are seeing a really interesting surge in orders, especially in states that have reopened already. stuart: a surge in orders. can you give me any like percentage number? how much are you up on these particular items compared to three or four weeks ago? >> sure. so you know, it's no secret that
the big part of our business is b2b, typical kind of consumers coming in to buy with us. we also have a big b2b part of our business. we have seen big head winds there as soon as covid really started up and started in say march or april. since we have reopening states, we saw a 70% week over week increase in our b2b business. the incremental growth week over week, we are starting to see real life there. stuart: is there any problem for you in the supply of products that you want to sell? >> so i'm really proud of our team here. as you came on to boxed right now, you would see us in stock with everything from hand sanitizer, face masks, toilet paper, paper towels, all the things you need to run your business, and your household. the best part is that all the stuff ships from here in the u.s. and it gets to you generally in two days or less. we have caught up with orders, we are in stock and ready to go. and you know, given the backdrop
of the economy, i think we've got some real tail winds in the b2b business in the coming weeks or months. stuart: i don't suppose you ever considered opening a bricks and mortar store, have you? >> we haven't. but i do think the future of commerce is marrying in-store presence with online, so definitely keeping an open mind there of kind of what we could come up with. but if we do open a store, you can come be on that first day ribbon cutting ceremony with us. you can hold the big scissors. we will do it together. stuart: if you're not careful. one last one. when are you going public? >> so i knew the question was coming, because last time it wasn't on purpose the video cut out just as you asked me that question. stuart: it did. so? >> i don't have a secret button where i'm turning you off as soon as you ask the question. it does seem like a special, special time for growth tech companies like us, especially given what we do, e-commerce,
and essential consumables e-commerce. we are definitely seeing a lot of action there. i don't know what the results will be or when it potentially will happen, but we are trying to be thoughtful about our future. maybe the invitation for you would not be so much the ribbon cutting ceremony but if we did do it, you could come with us to ring the bell one day. but we are very thoughtful about our future and we feel fortunate, and frankly, in a very unfortunate time for the world. stuart: that was the most positive response to the question when are you going public that i have ever had from you in the last five years. always a pleasure. thanks for being with us. we will see you again soon. thank you, sir. all right. check out the stock price, please, of grub hub. up 5% in a way down market. a dutch company has bought them. susan, come into this, please. i want to know where uber fits into all of this. susan: they were in advance talks to merge together but because of all the d.c. scrutiny over antitrust and yes, even mergers of food delivery
companies led by elizabeth warren, they called off the deal. just eat takeaway.com based in the netherlands scooped in. this is a $7.3 billion deal, slight premium for grub hub.com and i think they are giving them slight premium to imply a share value here of $75.15 apiece. you know, the antitrust part here in the u.s., because you know, we know uber eats is one of the top three so is grub hub and the merger of two of the top three would have caused too many eyeballs in d.c. so is this a missed opportunity for uber? according to wedbush's dan ives, yes. he still has a target price of $47 in 12 months but uber eats, grub hub and the food delivery companies, nobody is making money in this industry and consolidation was always priced in. you need size in order to get more market share and possibly make some money in the future. stuart: you know, i always wanted to invest in uber, never did and it's still way below its ipo price.
i'm not sure i'm going to jump in at this point. thank you very much indeed. then we have pastor darryl scott testifying in front of law makers yesterday. yeah, he did indeed blast the left's efforts to defund law enforcement. watch this. >> -- defunding and/or dismantling police forces across the country is one of the most unwise, irresponsible proposals by american politicians. stuart: by the way, joe biden says president trump promotes racism, his words. what does pastor scott think about that, because he's going to join me next. take a look at twitter. i can't believe this. they are now trying to stop people from sharing articles that they have not read. so if twitter has not read it, you can't share it. we will try to explain next.
stuart: you know, i may have been a little simplistic about what twitter is trying to do. here's the story from twitter. twitter is going to encourage users to read beyond the headlines of the news. susan, what does that mean? susan: well, so they are trying to combat misinformation and as you know, they have been
stepping up some of the regulations on the platform including fact checking president trump's tweets when it comes to mail-in ballots so on android phones, this is what they are testing right now. they are pushing you to read articles before you retweet them and this is again, what they say they want to make sure that they are having -- fostering some productive conversations instead of just retweeting headlines and sometimes the bulk of the article has nothing to do with the headline such as clickbait. tesla's elon musk says thisesat great idea and supports jack dorsey's beta test, shall we say, on twitter yesterday. stuart: i think that's legit. i changed my mind. thank you, susan. thank you. walmart is going to stop locking up multi-cultural hair products in their stores. lauren, what's that all about? lauren: okay. let me explain. you know when you go into any drugstore, walmart, walgreens, you name it, some of the items, razor blades, baby formula, they are locked behind glass cases. you need to get an associate to
get a key to get you that item. well, in 12 of their 4700 stores, walmart had the multi-cultural hair care products behind those glass cases. recently a local station in denver posted a video saying pantene is out for everybody to buy, why can't i get my black hair care products. walmart has since reversed their policy and they won't be locked up anymore. however, walmart says this wasn't racist. this was anti-theft. nonetheless, they have changed their policy. stuart: got it. walmart is up. one of the few dow winners today. lauren: yeah, that's because sam's club or one of the reasons is sam's club is doing curbside pickup everywhere at the end of the month. they have been successful online and in store. stuart: it helps. as we said, walmart is $121 as we speak. overall, we have been open for 25 minutes. we started the trading session with the dow down over 900. right now, we are down just over 700.
still to come on the show, larry kudlow, the federal reserve says we are not going to have a real rip-roaring recovery in the immediate future. the president says the opposite and so does the administration generally. they say the opposite. larry kudlow will be on the show discussing precisely that. then there's this. tearing down history. you are looking at protesters in portsmouth, virginia cheering and celebrating as a confederate statue burns. this is just one example. we will show you the others after this. ♪ ♪ yeah ♪ ♪ y-yeah ♪ ♪ yeah . . . .
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stuart: we are almost 30 minutes into the trading session. yes we're looking at a major league selloff. the dow industrials off more than 700 points. s&p down 94 points. sorry, 74 points. nasdaq composite is down 85. so you have red across the board. here is the backdrop to that. at 8:30 eastern this morning the government reported 1 1/2 million people filed for first time unemployment benefits. now that is a decline but only a slight decline. that is item one in the market sell-off. item two, we have the hangover from jay powell's economic forecast. he does not see a rapid recovery from the virus shutdown he sees the effect lingering out there until 2022. he says the economy needs more
help from congress. that's item two. item three, there has been an increase in virus cases in some states that partially reopened. arizona, texas, hard hit. there is some concern about a second wave. however we had dr. siegel on the show this morning who says, look, texas increasing cases is the result of texas' increase in it testing it. let's tell you this. this is important interview in the 11:00 hour this morning larry kudlow will join us. we're talking about the pace of the economic recovery. how is that pace going to look? how are we doing here? perhaps the political story of the day is the police reform discussion and in seattle. a no-police zone is being created in the downtown area. the city council wants to defund the police. the national guard has left town. chaos in seattle. meanwhile the president, he
going to dallas, texas this afternoon. he may remarks on police and urban unrest. he may talk about new support package for the economy. 10:02, realtors, homebuyers, heads up. ashley has the mortgage rate news. what is it? ashley: cue the fanfare. 2.21%. that is up just a hair, 3.18% last week. still historically low. we know the fed will keep rates close to zero for the next 2 1/2 years. we have seen a rebound in homebuyer demand with the rates so low. ing interestingly, the rebound in high income homes to take advantage of the rates. 3.21% this week. stuart: i love it. you and i talk about. 3.21%. extraordinary stuff. lauren, come in please. real estate, we're talking
mortgages and real estate t has been a bright spot. is it still a bright spot? lauren: if people are buying homes builders will build them and they are. look at some homebuilders. they are up. from the end of april until now they're up, 30%, whether looking look at toll brother the. home depot looking at record high, we can do that. fix gardening. redo the powder room. stuart: i think real estate is poised to, single family homes i'm talking about, poised to be a very good investment in thep immediate future. i think we have evidence of that. lauren, it could actually be a leader of the whole economy. any word on that? lauren: yes but i think there are going to be changes in the way homes are built. for instance, there will be more office space, if you will and
where homes are built. because i think demographics are changing, moving from the big cities to the less populated suburbs, even rural areas. not just from older people but also for millenials because of convenience and affordability. stuart: okay. got that right. all right. moving on to oil. concerns over demand problems have pushed the price down to what, 36 bucks a barrel. what have we got on that, susan? susan: we know goldman sachs the rally from prices are up historically from negative level we saw in the month of march has been overdone in their view, we saw weak economy, as we heard from federal reserve chairman jerome powell. brent oil, west texas, in line with the declines we've seen in brent. brent should be down to $35 a barrel. currently trading at around 40 bucks. think of five dollars less where gold man says oil prices should be this is not good news for the shale producers here in the u.s. we know they finally turned on
the spigots once again, they shut down production, no one is driving and no one is taking planes there has not been that much demand for oil. they're concerned some of these shale producers might go out of basis. shale needs, $25.95 a barrel, to make money. properly at higher side. there are some concern how many shale producers will survive in the u.s. by the way that takes jobs away from the american economy. stuart: i think the market, oil market may already reacting to what goldman is saying because we're down to 3dollars a barrel, just a little above their 35-dollar sort of idea there. job numbers, 1.5 million new claims for unemployment. what the trend, ashley? ashley: 44.21 million claims in the 12 weeks since the lockdowns began. that is the staggering number. now can we find any bright spots
in there? that number decelerated for 10 straight weeks. that is perhaps something you can take a crumb of comb for the from and also those collecting benefits has declined as well, still high at 20.9 million. that is down four million from the high of 24.9 million in april. so the numbers are still, you know, rough to say the least but we are ming in the right direction. the question is, how quickly can we recover. stuart: got that right. thanks, ashley. i want to bring in gary kaltbaum, market watcher. gary, are you worried? we have a sharp decline here. we're down 800 points. are you worried about the whole market? >> look, for me it is always not the news, it is how the markets react to the news and we had a strong movement, in what i call opening up stocks over the last two weeks. it was like an elevator straight up. my worry is right now, it is kind of an elevator straight down.
so i'm worried what the market thinks when it comes to the virus. if anything will stop a move to the upside, it will be the market believing there is a real spike in the virus. something to watch closely. let me give you good side of this, stuart. the dow was up 10% in six trading todays to the top three days ago. this pullback is about as normal as normal can be and for me tech is still acting great. large and megacap tech is still acting great and until they go by the wayside i'm feeling pretty darn good and for me pullbacks are viable but i don't think i will be buying today though. stuart: so if you pose the question to our viewers who own some stock, get out today, just sell the lot, or you can buy the dip, or, you can do nothing and just hold on. your suggestion is do nothing and hold on, that it? >> the answer is do nothing right now. i think this is a normal pullback. i wouldn't be jumping the gun
either way. for me as we pull back more, i'm going to be able to isolate where the strength is and i will jump all overgrowth names. there is a lot of good growth names out there right now. stuart: before we leave you, gary, our guy in florida. give us 30 second report on the state of reopening and the state of business in florida. >> business has been picking up and picking up in a big way and every time they announce something opening you see the demand. theme parks are opening. disney sit withing until july. we think all in good stead. for me big story is the airlines. still 80% lower than last year. that has got to do better, especially tourism hub where i live in central florida. stuart: especially for you guys. that's for sure. geir i are, thank you, sir. we'll see you again soon. quick look at starbucks, please. the starbucks stock down 3%. that is pretty much in line with the overall market. they say they are going to close a number of stores. now wait a minute, susan, is
this closing for good or is it a reclosing because of the virus lockdown? what is it? susan: i would say refurbishment. they are closing 400 traditional cafes across the country. but they're opening 300 takeaway kiosks. they're going with the consumer trend because of covid-19. they usually said make three to five years to make this type of change but now the timeline is accelerated to 18 months. we're talking about dense urban areas, chicagos, new yorks, san franciscos across the country. starbucks sales have been impacted tremendously because of the lockdown. they're looking at losses of $3.2 billion in the quarter and they say that, hopefully it will come back by the end of this year. foot traffic is down 40% in the month of may. improvement they say in the final week of may. so yes, there is a bit of a pickup, a bit of recovery. in the future look at criticism
what is starbucks is doing. it virtually will be pickup from now on. you will not go in there having a pastry, working on computer and hang out for a while. stuart: like i said yesterday i went into starbucks there, is rare rose here and places to stand there, get out fast that kind of thing. you don't sit around in starbucks these days. susan: where do you write the screenplays or win pulitzers? stuart: i had a screenplay or a book that would win a pulitzer prize, i would tell but i have not so far. amazon will pull police use of facial recognition software. let's bring in judge andrew napolitano. judge, i think, you don't particularly like, i think, you don't particularly like this facial recognition software because it is an abuse of pricey. what do you make of amazon's move? >> well it is an abuse of
privacy and good morning, stuart, nice to be with you. i don't understand the move because the way this works is amazon licenses the use of the software to police departments. a license is a contract and it has a finite period of time. so if amazon is breaching that contract, well then the police departments that are the victims of this breach have a cause of action against amazon. if on the other hand amazon is saying we'll not extend the licenses or offer new once for whatever reason, political, cultural, business-related, amazon has the right to do that. so amazon has not made it clear exactly what its doing. stuart: well, the background, judge, people of collar don't get the same recognition ability. facial recognition software, technology, as used by amazon, licensed by amazon, does not recognize people of color in the
same, to the staple efficient degree as it recognizes people who are white. is that a fair reason to be a abrogate their contract with police unions, with police people? >> i think it is, stuart, because when the police arrest the wrong person but think they have arrested the right person, relying on the facial recognition software, guess who is a defendant in the lawsuit for wrongful arrest? amazon. so if amazon is doing this in order to upgrade its software, or prevent wrongful arrests, that it is probably a sound basis for the breach. but i am sure there is going to be litigation because this very expensive software police departments paid for typically with federal dollars. still cash that has gone to amazon for a product and a service that is not being returned to the police departments. stuart: i have to ask you about
paw patrol. i'm very familiar with it. >> about what? "paw patrol." p-a-w, as in doug paw. "paw patrol" it is harshly criticize because it portrays the police in a favorable light. what do you make of that? >> well i don't share in the crit-- i have not seen this animated feature that you're talking about but i certainly don't share and condemn the criticism. some police should be portrayed in a favorable light because their work is favorable and heroic and selfless. not all as we know. but i believe stuart that we're approaching a sort of sanitizing of america. let's get rid of the statue of robert e. lee. what's next? thomas jefferson? george washington? james madison? they owned slaves t was wrong. it was horrific. they were also founders of the country. i'm not sure where this is going
to end up but rewriting history rather than learning the lessons of it is very dangerous and will come back to haunt us. stuart: well-said, judge. well-said. i'm full agreement on you with you for that one. for sure. judge napolitano, voice of reasons, good heavens. thanks for joining us. >> when are you getting your pulitzer for that book you're going to write at starbucks? stuart: only time will tell, judge. see you soon. let's get back to the market real fast. we've come back a bit real nicely. we were down over 900. now we're down over 760. leave it at that i want to keep telling you this, larry kudlow coming up in the next hour. the fed and the president have different opinions how long it will take for the economy to bounce back. he is going to join that debate. what is his timetable for the speed of this recovery? president trump heads to dallas this afternoon, he may announce his views own police reforms mesh shushes, what will it look like. we'll try to find out.
but we'll cover that. joe biden says, the president quote, this is his words, promotes racism. what does pastor darrell scott have to say about that. he is next. there are people who say things aren't made here anymore. those people should make a trip to michigan. or kentucky. or illinois. where you'll find our workers and dealers and engineers and technicians. building for america. we're proud to employ more hourly workers than any other automaker in this country. because we build for this country.
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stuart: it is a selloff. we've been open since 9:30 eastern time. similar, slightly lesser declines on s&p and also the nasdaq. listen to this. mow derna, they're moving final testing stage of the virus vaccine to the end of july. they're moving it up. that is a good deal there. the stock is up 4.6%. regeneron is beginning the first trial of antibody coke
tail for prevention and treatment of the virus. that stock is up 2% in a big down market. look at johnson & johnson, they're moving up their human trials of a vaccine to july. you have a positive news about vaccines and positive treatment for the virus pretty much across the board this morning. now this, protesters bringing down a number of statues across the country. it is happening in various places. wrap it up, ash, what is going on? ashley: hard to keep up with it right now. pressure growing on authorities to remove statues of on the confederacy and colonialism. jefferson davis was pulled down and statue of columbus was pulled down and thrown into a lake. a-10 foot bronze statue of columbus brought down in st. paul, minnesota. statues of columbus in boston and miami was vandalized. the boston statue was beheaded.
a growing number of cities are taking steps to bring down statues of confederate or anything that has a symbol of the confederacy. statue of robert e lee will be removed from richmond. the judge issued a temporary order to stop removal of robert e. lee for now. a movement that is gaining a lot of momentum. stuart: sure is, ashley, thank you very much indeed. moving on now. joe biden is accuseing president trump in his words of promoting racism. that is what he says about the president, listen to this. >> first of all it is going to take trump. donald trump didn't invent racism but he sure has promoted it. systemic and real. disparities of the country especially in the economy right now. stuart: he is promoting racism.
your response please, pastor, to what joe biden told the world. >> joe biden made another one of his, what can i say he is a liar. he is a fabricate tore. he is a plagiarist. he is trying to deflect from his long record of racism. here is a guy who eulogized at former grand wizard of the kkk. here is a guy who opposed busing and desegregation. here is a guy who takes credit for the crime bill that incarcerated african-americans in disproportionate measure. here is a guy who said he didn't want his children, whatever growing up around black people because he was afraid for their life. he is trying to deflect, get into revisionist history like he has been some civil rights advocate that donald trump is guilt i of all the things he himself -- stuart: president trump is
sometimes criticized for his harsh language and his tone. you just called joe biden a liar. pretty harsh word to use. >> yeah. stuart: you comfortable with that? >> very, very comfortable with that i could have called him something else. i happen to be a christian pastor. we're on a news station so i can't use words i i want to say. stuart: you're not lowering the temperature here. you're not lowering the temperature over this fight over race and all rest of it. >> joe biden is full of the more crap than a thanksgiving turkey. he is saying anything he can say to garner votes from the black community. he says whatever he has to say, whatever he thinks he has to say. because we're not black if we vote for trump. now we're black again. he is promoting racism. joe biden is a reed blowing in the wind. any direction he can go, pick up a vote for two. he is trying to say anything he can. stuart: win side do you think is winning this debate among black
voters? >> well, i say joe biden isn't, because black voters know that joe biden is full of crap. they know it. all you have to do is point at joe biden's record. we can't point as donald trump's record at president. what do we see? prison reform. criminal justice reform. creation of opportunity zones. urban revitalization. historic funding to hbcu. first black heavyweight champion of the world in boxing he gave him a party. joe biden's record, what do you see? one transgression after another targeted against the black community. so joe biden isn't winning this battle. joe biden es record regarding the black community is horrible. stuart: okay. i'm going to leave it at that, pastor darrell scott. you always speak your mind. that's welcome in this program. pastor, thank you for joining us. we appreciate it. thank you. >> bye-bye. stuart: get back to that market. we've been open now almost an hour. we're still down big time across the board, down 3% on the dow
industrials. down 1% nasdaq. down 2 1/2%, s&p. suffice it to say we're down across the board. look at airlines. down big today. they have been all over the place. i've been reporting percentage gains like you wouldn't believe in the last week or so. now it is percentage downsize moves. we do have some positive news on travel, however. new numbers on how many people are ready to take a trip. we'll give you that positive news. we found it. we'll get it for you. we'll give it to you too. new numbers from illinois. last year, one person out of the state every five minutes. we're looking at the failed policies in that state that are really driving people out. yes, we will be back.
stuart: one hour into the trading session, yes the selloff stand. we're down more than 900 points. that is 3.4%. big losses on the s&p and nasdaq as well. however, here's one stock that has turned around. that would be amazon. we brought you this, oh, we brought you the stock, way down, down about 40 bucks. but it turned around. susan, do you think you have a reason for the turn around?
susan: this is getting so much attention. master card saying e-commerce spending in april and may topped online spending for the last 12 cyber mondays combined. think about that. $53 billion spent in the month of april and month of may. a lot of experts say covid-19 accelerated consumer trends by three years. that means more people are shopping online. online u.s. sales in the april and may make up 22% of all retail sales. that is double from last year. 92% up in may. hardware sales up 36%. furniture sales up 7 1/2%. grocery sales, something you may have looked into, up 9.2%. we know amazon overseas about 50% of the u.s. e-commerce market. so of course big player will benefit in this case. stuart: sure does. on track for a record close actually. that is amazon for you. $2661 a share as of right now.
believe it or not we have more positive news. more people want to travel again. i guess people just want to break out of the lockdown. ashley, have you got actual numbers on how many want to travel? >> well, based on a report from trip advisor, yes. people want to get out and travel but they don't want to go that far. 41% said in a survey, they are optimistic they will indeed take the same or even more trips than last year. but, more likely to take a road trip. at least 44% of those said that. 61% said they are most comfortable taking a road trip for about 3 to five days. where are they going to go? how about these destinations seemed to be popular. myrtle beach, south carolina, san diego, buell, down on tip of florida, key west. the overall theme is, look they don't want to be around people. they don't want to be in the tourist hot spots, though i would say myrtle beach can be pretty busy. trip advisor has seen a spike in
searches for campgrounds. i know lauren won't do that. ranches, and beach motels there you have it. stuart: cheap gas has something to do with it as well, don't you think? two bucks a gallon in most places that is nothing. i'm up for it. disneyland, the disney property in california, of course, disneyland they have announced their reopening plan. lauren, tell me when. lauren: in california it starts in july. it starts on july 9th, with the shopping area. july 17th, disneyland itself and hotels july 23rd this is about a week after walt disney world. look, competitor universal opened in orlando june 5th. some of the critiques it is really hot and you have to wear face mask all day. so disney is looking what their rivals are doing, maybe they have more mask-free areas where
you can take the mask off for a bit and kind of breathe. also you have to make a reservation ahead of time. folks are saying gone to universal, gone to shanghai disney. maybe reservation with a time to help with social distancing. stuart: lauren, you've been on splash mountain. i've been on splash mountain. i understand there are petitions out there demanding update for that ride. can you tell me what this is all about? lauren: change.org petition. they're petitioning disney to change the theme of the log flume ride splash mountain which is at least three of the parks around the world because it is based off the 1946 movie song of the south, which paints nostalgic view of the an at this bellum south. they're looking to retheme it to princess and thing -- princess d the frog which is first to
feature a african-american princess. stuart: we'll focus on illinois, last year that state lost 105,000 residents. they moved. that means one resident moved away from the state every five minutes. come in illinois policy institute economist. who are these people that moved? are they wealthy people who got out because of the taxes? >> oh, absolutely. if you take all of our job losses for the last couple of decades, that is enough economic activity to equate to the size of the state of delaware. so, yes, you have highly-skilled, high earners leaving the state at a record rate. leaving the rest of illinois to pay the bills. we've had the worst personal income growth in the country during the last 10 years, the recovery from the great recession. illinois are going to places
where there are more opportunities and they're allowed to thrive. stuart: now i understand in the state of illinois, pension spending is up 500% since, i think it is since the year 2000. obviously a huge pension problem in that state. is that the basis of the problem for their constantly raising taxes? >> absolutely. if you're raising taxes, and wasting it on really unproductive projects, you know, basically wasting billions of taxpayers dollars every year, people are going to go away. since 2000, spending on pensions have gone up over 500%. meanwhile spending on education has only gone up by 21%. spending on session services like child protection or college age for low income families has actually fallen by 1/3 during that time. illinoisans are not getting what they paid for. stuart: look to the future for me.
is there any prospect of lowering taxes in the state of illinois? >> illinois should absolutely reform the state's broken pension system. stuart: will they? >> it is going to have to continue to ray taxes and it should definitely not be asking for federal bailout at this point. stuart: will the state reform its government pension crisis? i mean will it make government, retired government workers take a 401(k) like everybody else? do they favor reform? >> unfortunately state leaders do not favor reform. we've had some, you know, outgoing chicago mayor who brought up the idea and, we've been fighting for it for a long time now. hopefully now that we're in the middle of this worst economic contraction since the great depression that reforms will come. you know, when you look at states over the last 30 years. states that spent more on pensions over the last three decades actually experienced
lower nick growth. time to free up resources from wasteful spending to things that people actually care about if we're going to turn things around to see any kind of recover from from the current downturn. stuart: illinois policy institute. appreciate you joining us. see you soon. >> thank you. stuart: sure thing. last week's riot and looting fueling surge in demand for private security. businesses spending big on extra protection. security firms hiring more guards to keep up with demand. we have more on the budding private security industry coming up. next former acting i.c.e. director tom homan joins us on the democrat push to defund the police. what does he say about that? he's next. >> we need to completely dismantle the minneapolis police department. >> we'll be moving funding from the nypd to youth initiatives and social services. >> this is what political courage is for. i'm asking you to ask yourself what are you willing to
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stuart: still down significantly so. 380 points. down red across the board. demand for private security has skyrocketed since the protests began. grady trimble joins us from chicago. there he is, he joins us right now. this is growth industry, private security, this is growth industry, isn't it? >> they say they're busier than they have ever been. you can see them training. russ is the owner of law dog security. what businesses are you hearing from? >> retail. personal individuals are looking for people to watch their houses when they're gone. reporter: not even just people hiring security, but you're training people like tracy with baton work.
>> looking for more and more people every day as need for security officers is through the roof right now. reporter: this started two weeks ago a lot of workers in the security industry they were furloughed because of the coronavirus. all those companies hired them back and more. >> that is true. people were out of work with the coronavirus stores were closed. stores are back, they're looking for more officers every single day. reporter: stu, this group of people are essential. they're allowed to be open right now. this is what they're doing, in the beginning stages of baton training. they have cuffs out. they will do that they have firearm training as well. not only seeing private guards being trained but they're doing a lot of concealed carry permits. that type of thing. stu. stuart: grady you have a rare talent for getting in middle of things. good stuff. grady trimble in chicago, thank you, sir. if you're just joining us, just turning on tv sets, you may not be familiar with this. overnight radicals established a
no police zone in the middle ofdown fun seattle. extreme stuff here. tom homan is with us. former acting director of i.c.e. and fox news contributor tom, what do you make of this whole thing, defund the police and no police zones? what's the impact of this? >> well, look, your prior segment shows, american communities want to be protected. they're even hiring private security. look, i did an op-ed on foxnews.com. we have a high crime rate, especially in communities of color. we can't abandon those communities, stuart. they need protection. they're victims of violent crime. if you look at crime stats for this country, where the police presence, consequence and deterrents, what happens when less police presence? what happens when you take money out of the hands of these departments? there will be more crimes. it just doesn't make sense. when i was i.c.e. director i had
a 7 billion-dollar budget. i still couldn't make end the meet. you have to decide what you can do, what you can't do. if they take money out of new york city pd, that means less officers in times square. that means they can't replace bulletproof vests that expire. response sometime will be slower. it will result in less enforcement. that is not what this country needed. when they protested what stopped rioting? when police responded took control of the streets and enforced law. consequence deterrents has effect on criminal levels in this country. stuart: when you started to answer the question you said that there is a high crime rate particularly in communities of color. are you comfortable saying that because you know, that could be opposed? that could be, people could say that is a racist statement? they could say that. >> absolutely not, varney. that is just factual statement. i'm not saying the communities
of color are criminals. what i'm saying they are victims of a lot of crime. so you know they may need the police more than affluent communities need them. we had a lot of police reform specialists on the tv lately saying that, that we cannot abandon these communities. take chicago for example. the number of shootings in chicago. last thing we need are police out of communities. i'm not saying minority communities have more criminals. i'm saying they are victims of more crime. that is why we expand not decrease the amount of police response we have in these communities. stuart: move directly to your turf. the white house is proposing a new rule, would make it harder for migrants to claim asylum in the united states. tell me about that, please. >> what they're actually doing is trying to prevent a lot of fraud going on. the data is clear. 9% of central americans who claim fear, claim asylum at the border never get relief from the u.s. courts. they don't show up, they don't qualify. there is massive fraud going on.
so they're trying to change the regulations to hold people accountable to the standards of the law. so, because when you got a million people back logging the asylum process, people need is a aisle lump protection from other countries around the world stand in the back of the line. way to address the fraud. doesn't mean less asylum claims. we're the most giving country in the world and take asylum claims. we have to piece that out and talk about real cases that need our help. stuart: tom homan, thanks for joining us, sir, appreciate it. thank you very much. >> thanks for having me. stuart: let's go to susan, twitter, more clarification on this story. twitter wants users to read beyond the headlines. >> that's right. retweeting a story. go ahead. you're not on twitter though. this confuses you, right? stuart: yes, it does. susan: if you're on twitter, you follow certain individuals and
they retweeted a story i assume they have already read it and that is what twitter wants you to do in the future. if you retweet a headline, retweet the article. there is a lot of clickbait. what twitter wants to do, foster, shall we say conversation that benefits everybody. and also they want to combat misinformation. they want to make sure there isn't false information out there. in this beta version only for android users right now, if you retweet a story you didn't open you get a prompt saying you may retweet the story. elon musk a big twitter fan approved this measure. this to combat the fact that there is so much fake news, there is lot of clickbait and headlines and articles don't actually match. stuart: just seems to me that twitter is telling me how i can use its supposedly open platform. don't particularly care for that. susan: they want to promote informed information. should you retweet a story you
haven't read anyway? stuart: that is my business. that is my business. ashley: okay. let's say if you retweeted a story that has nothing to do with the headline, it is inflammatory that is okay with you? stuart: yes. it is my businesses. >> and that's your problem, right? stuart: i expect a degree of freedom i use what is supposed to be a open public forum. i expect a degree of freedom like that. that is my freedom of speech. ashley: they're not stopping you from retweeting. telling you should read it before you do that. that is not necessarily a crime. stuart: not stopping me from sharing it? ashley: no. you can retweet it. stuart: so good advice from big brother. you better watch that. you better read that, stuart. i'm not on the platform. ashley: that stands to reason. stuart: no surprises, right? we have to break away, susan. we're at the lows of the day for the market. we're off almost 1000 points for the dow. barely keeping above the 26,000
level. down 908. larry kudlow joins us next hour. i want to know what he thinks about this recovery. the fed chair says the economy won't fully recover. there will fab slow recovery for two years. what does larry say about that? we'll ask him. next, chef nick labrato, he has travel around the world helping restaurants get back on their feet. now he is helping restaurants here get back in business. how do you do that? he will tell us next. we're here for a reason.
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stuart: do you know the show the netflix show, the "restaurants on the edge"? nick is on that show and he joins us now. nick, welcome back to the show. now look, get straight at it here. you formed a group that helps restaurants survive the pandemic. let's suppose i've got a restaurant in america and i can only open up to 25% of capacity. what are you going to tell me to do? >> well you know, without a liquor license and outdoor seating, certainly making things a lot harder to work these days but with my new hospitality group, 618 hospitality, investment fund to help assist restaurants and bars lacking
profitability. stuart: so you will lend me money, are you going to lend me money to get me through this, is that what you're going to do? >> we'll find restaurants and bars we want to work with. we're providing ultimately the best ideas and technology tailored to their brand. so 681 helps restaurants -- stuart: do you, do you ever tell people, hey, you can't make a profit like this, shut down until the whole thing is over, do you ever say that? >> i haven't said that so anyone yet. i always seem to find something that works. always silver lining on everyone's business. it usually takes outside eyes looking in. there is technology we've been working on for two years, that essentially helps reduce their costs while enhancing efficiency stuart: have you ever thought about politics and saying look, end the lockdown now, let me get back to 100% business? america is suffering, get out of
the way, let me open my restaurant, do you ever say that? >> i say that, i've been saying that just about every day for the past three months, stuart. so you know, there is a lot of people struggling out there. i'm certainly with them, getting 100% open. stuart: excellent. nick, terribly sorry to be so short on this, but i really wanted to mare that, nick liberato you're all right. >> thanks for having me, stuart. stuart: larry kudlow, up next hour we're talking about the pace of the recovery, how long to really expanding rapidly. we're talking "paw patrol," criticism over the cartoon because it portrays the police in a positive light. boy, oh, boy. we'll be back. om, we've got to be prepared for this to last a long time. if you assume that you're out of work for nine months but you end up only being out of work for...
stuart: all right. this is the low of the day. we are off 1,030 points. yeah, we are right into a selloff as we speak. red arrows all across the board. we have big percentage declines for virtually every stock group. here's the backdrop. the labor department revealed this morning that 1.54 million people applied for first-time unemployment benefits last week. that is a down trend but a very modest down trend. of course, we've got larry kudlow coming up on the show. what does that jobs number mean for the state and pace of the recovery? he joins us in just a few
minutes from now. all right, everyone. now this. it's called the cancel culture. get rid of anything that is deemed by some to be offensive. a movie, a tv show, a statue, a painting, an opinion, ban it, remove it from your screens, take it out of the debate. in the wake of the killing of george floyd, there has been an avalanche of cancellations. it's reached the point where police officers may not be shown doing anything good. any police action must be seen as bad. so for example, lego, lego will no longer advertise its lego city police station. the tv show called "cops" canceled after 32 seasons. then, believe it or not, there is "paw patrol." that is an animated tv show featuring chase, a cartoon
german shepherd who helps people, you know, does good things in a police uniform. but that's bad. we must not be allowed to see anything good involving the police. "paw patrol" is for very young children. they can still watch. it's not been banned. but social media is full of demands to take chase off the air. this is dangerous. it's a direct threat to free speech. there is no real debate, no real free speech if even mild pro-police opinions or shows are censored. the editorial director at the "new york times" had to resign because he had allowed the publication of senator tom cotton's call to use the military if urban unrest gets out of control. that opinion was deemed offensive. it can no longer be part of the debate. the philadelphia inquirer published an opinion piece, opinion piece, that is, titled "buildings matter too." that was considered offensive.
the editor lost his job. censorship appears to be alive and well. what a shame. because problems do not get solved if there is no free speech. we should remember president roosevelt's famous speech back in 1941. the first freedom was quote, freedom of speech and expression everywhere in the world. he said that nearly 80 years ago and he is still dead right. stay on this. pete hegseth is with us. you heard what i've got to say. i'm sure you agree with me but go ahead. tell us more. >> it's worse than that. this is the logical extent of the left. unfortunately i wrote a whole book about it called "american crusade" and it's happening faster than anyone thought because if you -- where it all starts is, it all starts with america is an evil place. america is a bad place, it was stolen from native americans and built on the back of slaves and
as a result, everything that has been done in our country is considered a sin and evil. you must erase it all. you are hearing calls to tear down the washington monument, tear down the jefferson monument. you talked about fdr. to the left he's not good enough because that was before the civil rights act and why didn't he do that. we all know america is a flawed place. no one is saying it's perfect. but what we recognize is we learn from our sins and mistakes and move forward together. what the left wants is to destroy america. so one of the symbols is the police. i have watched more hours of "paw patrol" than you can imagine. even a subtle reminder that police are good people to the left is a residue of racism because the police are racist and the whole entire country is racist and therefore all must be undone. that's how you wind up with autonomous regions in seattle where the first thing they do, of course, is bring armed guards and build a wall and check ids
for people to come in. the hypocrisy of the left knows no bounds. stuart: who is going to stand up and say enough is enough? when "paw patrol" starts getting criticized you know this is in the land of extremism. but i want to know which authority, which person, which official, which politician, stands up and says hey, knock this off, this is a great country and our police force is vitally necessary and we must have free speech? who's standing up for free speech? >> well, thank god we have president trump right now. i think 2020 will be the ultimate referendum. 2020 will be a pivot point in whether or not he gets four more years to fight back on this and truly surround himself with people that support a courageous agenda. he still has people apologizing and grovelling like his chairman of the joint chiefs and others, for every action he takes, all of which are meant to sort of make him look bad. where does it stop? i don't know, stuart. i thought about this this
morning. it's individual citizens mustering courage to stand up against the mob, following the lead of our president who is willing to -- we are in a really, really bad spot because our corporations are captured, social media is captured, our education system. what we are teaching kids in government schools today is the sins of america and when you do that, you get people that don't love the country that they are supposed to defend and they don't understand first freedoms like freedom of speech and they don't realize the fact that the least powered people in the conversation are the so-called tolerant left which is actually completely fixated on only one side of the conversation. so we are in -- thank god we have president trump. they are going to try to do everything they can to tear him down before the election but we have to take back our culture and our education. that's where we're losing this. stuart: army secretary general ryan mccarthy says he's open to renaming military bases which had been named after confederate
generals. the president says he won't consider it. where do you stand on this? you are a military guy. what's your take? >> yeah. the army secretary is wrong, dead wrong. i'm with the president on this. listen, fort benning, georgia, at the time i didn't realize who benning was and what his military background was. the reality is erasing your history doesn't make it any better. the only way you learn from it is from understanding what happened, why it happened, how we changed it and moving forward. of course, the reason for renaming bases after confederate generals was part of sort of rebuilding our nation and creating solidarity after a civil war that was incredibly bloody and again, by teaching about the confederacy, by teaching about the civil war that we had, what it took to free the slaves, we are educating the next generation about what america's had to go through to get to a place where we are the most free, most tolerant, most diverse, most prosperous country in human
history but if you are staring at your device right in front of you and your twitter feed all day long, you forget that. you take it for granted. renaming bases is not going to solve anything, nothing. when you cave to the mob, you just give them more -- just give them more ammunition, then they go after "paw patrol." what's next after that? who knows. stuart: i know what you're saying. i watch it with my grandchild n grandchildren, you watch it with your young kids. pete, thanks very much indeed. always appreciate it. got to check the auto makers for you for a start. toyota, we got that up there, down 3%. that's pretty much in line with the overall market. toyota says it will remain profitable during this pandemic. it's also relaxing auto loan payment deadlines for some of its customers. the stock still down 3.3%. ford recalling over two million vehicles for faulty door latches. the stock holding at -- down nearly 8% at $6 a share.
as for general motors, they have hired a former tesla engineer to lead gm's product safety unit. that stock is back to $27 a share. now take a look at tesla. i know it's down this morning. but it's holding at $1,000 per share. look at this one, too. new spacex video shows the falcon 9 rocket launching 60 starlink internet satellites into orbit. i call that pretty cool. that's a musk operation. back to tesla. dan ives is with us. dan, first of all, i don't understand tesla. i have no understanding of why that stock does what it does. it went to $1,000 a share yesterday, holding at $1,000 now. you've got this right. you tell me, where does tesla go from here? >> look, in my opinion, i think it comes down to your point that if you look at the ev market
today, you are talking 2% to 3% penetration. if you look what tesla is doing, especially in china, i mean, china now has a trajectory to be 100,000 deliveries in the first year. some of the parts, this is a name i think continues to get rerated and investors' appetite for ev names, with tesla front and center, hits an inflection point and continues to drive stock higher. stuart: sure does. $1,001 a share now. here's another one you were right about, dan. that is apple. you said apple would hit $350 a share. it did, this week. you tell us now where does apple go from here? >> look, i think a year from now, we are looking at a $2 trillion market cap. when you look at apple, they are going to get through this covid-19 storm because that's a services businesses worth $500 to $600 billion. apple, even in this volatility, continues to be a core name you
own into a five-year super vibicycle over the next year on the other side of this dark valley. stuart: i'm glad you're on the show, because you are talking about apple going to $400, talking about tesla at $1,000. all of this in a chronic down market, where the dow is off 1,000 points. you are welcome relief. we are very glad you have been on the show. see you again soon. that's a promise. come back soon. that's a good one. we are down on apple at $348 as we speak. the dow industrials are down 1,040. president trump just tweeted this. the federal reserve is wrong, so often. i see the numbers also and do much better than they do. we will have a very good third quarter, a great fourth quarter and one of our best ever years in 2021. we will also soon have a vaccine and therapeutics/cure. that's my opinion.
watch. okay. that was just in from the president. no doubt we will have more comment on that from larry kudlow when he joins us just a few minutes from now. on the screens now, zoom video communications. what happened with this chinese activist? susan: this is really making a lot of headlines. zoom shut down the account of an activist who is holding an event at the end of may to commemorate tiananmen square with the anniversary on june 4th, and zoom said it confirmed that it shut down the account because they are adhering to policies in different countries, namely in china. a lot of people see this as zoom kowtowing to china. there were 250 people that participated in the actual meeting itself and it's been streamed by over 4,000. a lot of people inside china. zoom says look, it's not our fault we were operating and some of these participants were in borders that don't have free speech. as for zoom itself, people have criticized it earlier this year, saying it mistakenly routed some
of the meetings through servers in china but it hasn't stopped the stock. we are still up 220% on the year. stuart: okay. sounds like censorship to me. we'll see. $228 is zoom's stock price right now. president trump addressing race relations and policing one day after this emotional testimony from george floyd's brother. watch this again, please. >> he didn't deserve to die over $20. i'm asking you, is that what a black man's worth? $20? this is 2020. enough is enough. stuart: well, the president heads to dallas later on today. he's going to hold a roundtable discussion on those issues which have clearly gripped the nation as we speak. a few moments from now, chief economic adviser larry kudlow, he joins us from the white house. yes, we will ask him about plans for another round of stimulus. first, voters stood in line for hours in georgia this week.
now a leading democrat is hinting it was all on purpose. we will have a full explanation for you after this. hey you, yeah you. i opened a sofi money account and it was the first time that i realized i could be earning interest back on my money. i just discovered sofi, and i'm an investor with a diversified portfolio. who am i?! i refinanced my student loans with sofi because of their low interest rates. thanks sofi for helping us get our money right. ♪ unlike ordinary wmemory supplementsr? neuriva has clinically proven ingredients that fuel 5 indicators of brain performance. memory, focus, accuracy, learning, and concentration. try neuriva for 30 days and see the difference.
stuart: boeing is a dow stock and it's a big drag on the dow industrials, down $19 a share. that's boeing. that accounts for what, about 120 -- 130 dow points. that's what boeing is costing the dow. the airlines down again. they rallied earlier in the week, i should say, but now they are way down again. another group of stocks that's just falling out of bed today. same story with the cruise lines. by the way, the major companies there are expected to meet with
the cdc today, no doubt discussing safety for the upcoming cruises they have planned. the cruise lines, way, way down again. how about this. working from home could actually cost some people money. all right. tell me more, lauren. lauren: unbelievable, right? credit card.com was also surprised by these findings. they found working from home is costing the average person an extra $108 a month. extra $108. where is that money coming from? or going to, i should say? food. we are spending an additional $182 on groceries, $121 on utilities. if you work from home, you probably upgrade your internet, things like that. in the end, we are spending more. totally surprised by this number. nonetheless, they also ask people considering the cost, you have been doing it for awhile, do you want to continue working from home? 35% said yes. they want to do it full-time forever. stuart: wow.
there's a surprising report, i've got to say. i didn't realize it cost people more. when you do the math, i see it. yet they still want to work from home. there's a real sea change coming here. lauren: not me. stuart: i know that. come on back to the studio soon, please. now this. i'm going to show you video of really long lines at some polling stations in georgia earlier this week. they had a primary there. look at the lines. i think we will show them to you right now. yeah, there you go. long, long. some people waited for hours. bearing that in mind, now listen to what speaker pelosi had to say about it. roll tape. >> you see what happened in georgia where in certain neighborhoods that are more affluent and more white, it took you 20 minutes to vote but it took hours in other neighborhoods. one would be suspicious that that could be by design. stuart: suspicious, the speaker says, suspicious that it could be by design.
congressman barry loudermilk, republican from the state of georgia, joins us now. okay. your response, please, to that expression suspicious. go. >> stuart, that's suspicious in nancy's world where everything is a conspiracy, if she can blame anything on the republicans, on president trump, she'll do it. look, we have 159 counties in the state of georgia, 150 had no problems whatsoever. of the other nine, that had problems, most of those resolved very early. we had two counties that had significant problems. 80% of those problems were in fulton county. it is run by democrats so if it was designed and it was for voter suppression, that is democrats suppressing democrat votes. this is asinine. this is a combination of covid, it's a combination of some level of incompetence by election officials because in georgia by law, the elections are administered and run by local elected officials, not by the
secretary of state. he oversees it, he provides the voting equipment, he trains the trainers. this was an effect of them not being prepared for this election. stuart: but you can see how people would figure that come november, in the presidential election, there will be a real catastrophe and maybe a catastrophe because of mail-in voting or incompetence on the part of some poll workers or some poll workers not showing up because of the virus threat of contamination, but you can see how this could really upset a lot of people in advance of november. you can see how some people see a catastrophe coming. you can understand this. >> oh, i can understand it and this is why we have to address some of these issues now. look, the biggest problem in fulton county were the number of people that showed up at the polls. the reason so many people showed up at the polls, they did not get their absentee ballots because the county officials did not get them to the state's vendor in time to get the absentee ballots out.
they didn't notify people. people were showing up. they had new poll workers because our poll workers in georgia are in that critical or that susceptible category for covid-19, they were afraid to work. they brought people in at the last minute. they didn't adequately train them. they tried to train them online. i'm talking about this one county, instead of bringing people in for training. they didn't know how to operate the machines. voters were putting cards in upside down. these are the things that are easily rectifiable which we can do by november. i think it was great, if we are going to have problems, you have them in a primary election, not in a general election. but the idea that this was by design, that this was voter suppression, well then it would be democrats suppressing democrat votes. that's far from the truth. we do have issues but we have to address those in the facts of what happened, not some conspiracy theory that nancy pelosi wants to use to further divide the country. stuart: your state, georgia, was i think the first to start the opening up process. i think they did that april 30th
as i recall. what does georgia's economy look like now? >> it's doing well. i mean, we are seeing more and more people getting back to normal and that's really what we need to see. we are getting some good numbers out of credit card processors. that's where you can really get an idea of where the consumers have been and where they are. as we have seen consumers, in your previous segment, we are talking about consumers didn't quit spending, they just shifted their spending. we are also finding out that not all restaurants are devastated by this. those that have drive-through services, they are showing record profits. now that the other restaurants have opened up, we are seeing more and more people in the restaurants, more and more people are getting out, you are seeing fewer and fewer masks and people are really getting back to normal and i believe the consumer confidence in georgia is getting better all the time. so i think we are doing well. i think again, we are going to be leading the nation in the place to do business. stuart: congressman barry loudermilk, republican from the state of georgia, thanks for joining us.
appreciate it always. let's talk economic recovery. the president is optimistic about a swift recovery. watch this. >> we're really doing a financial comeback. i think that the economy will be next year will be maybe the best it's ever been. stuart: well, the federal reserve is not so optimistic. it's casting some doubt on the pace of the rebound. larry kudlow's going to join us shortly. he's going to weigh in on this debate about the pace of the recovery. he joins us in a couple minutes. two newspaper editors lose their jobs after publishing pieces deemed to be offensive. what happened to free speech? "wall street journal" guy dan henninger joins us after this break. ♪
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stuart: it is a big selloff and here are the reasons proposed by the pundits. number one, the fed says the pace of economic recovery is not going to be real great. we'll have the effects of this virus lockdown until 2022. item two, there has been an increase in covid-19 cases since some of the states started to open up. item number three, well, we've got a bad jobs report this morning. 1.54 million people filed for first-time jobless benefits.
okay, that is a down trend but it's a very slow down trend. add it all up, that's why the dow is off 1,058 points as we speak. headline in the "wall street journal." i will read it for you. the media's self-censors. the pre-liberal idea of [ inaudible ] disagreements with coercion has made a comeback in the united states. the author is dan henninger, "wall street journal" deputy editor of the editorial page. dan, to me, this is all about free speech, free expression, open debate. i think it's gone. what say you? >> i agree with you. it's on life support, stuart. the things you were just describing were started by the founding fathers in 1789. opinion disagreement back then was intense. people fought duels. the founding fathers decided look, we're just going to let people settle their opinion disagreements with elections.
then we'll have more elections. so in the first amendment they made it clear that we will have freedom of speech so that we can maintain this system. in the past week or so, stuart, in seeing the resignation of the editorial page editor of the "new york times" because of publishing a piece by senator tom cotton called "send in the troops" and then the resignation of the editor of the "philadelphia inquirer" because they published an op-ed piece called "buildings matter too" this led to his firing, leads me to believe we are lied ing head towards a system of forced coerced opinion, not disagreement, but coerced opinion and censorship of the sort that we saw more than 60 years ago during the cold war in countries like czechoslovakia, hungary and east germany, where if you got out of line, said the wrong thing, you would lose your job. it was a way of silencing people. i have a really great fear that
we are heading in that direction with journalists themselves demanding that people conform to one point of view. it's unbelievable. stuart: who is standing up for free speech? and rolling back this anti-free speech movement? >> not too many people are doing that, stuart. that's why i'm so concerned. that's why i wrote it in the way i did. i think people have to understand that they have to try to assert their opinions as a basis of free expression. now, we know this has been going on on the campuses for a long time. conservatives were shouted down by mobs and not allowed to speak but if op-ed pages are going to be limited to only one point of view, then you are talking about a kind of journalism and newspaper which i'm not familiar and here's the irony about that, stuart. journalism in the united states over the years has historically
attracted independent-minded spirits. we get into this business because it's the freest work out there. people are rugged individualists and the idea that journalists themselves are instead forcing people to conform their opinions to one point of view reflects a kind of journalism that i have never been around my entire career so we have to fight hard against that becoming ingrained. stuart: last one real fast, do you think the heart of the problem is trump hatred? in the media and in the elites? is that the basis of this problem? >> i think that is a large basis of the problem. i think people have become so deranged in their personal animosity towards donald trump that they have just decided that they cannot entertain any idea associated with him or that they would think would give him any comfort and favor at all.
but man, losing the first amendment right to freedom of speech in the process would be a high price to pay even for that. but that is a big part of what's going on out there. stuart: dan henninger, always a pleasure. thanks very much for joining us this morning. good stuff. thank you very much. all right. i'm bringing to your attention, this is the session low for the dow. this is thursday morning. we are down 1,078 points as we speak. that's nearly 4%. that is a selloff indeed. completely different subject for a moment. i want to bring this to your attention. the epa, environmental protection agency, cracking down on amazon and ebay. what have they done wrong, susan? susan: they want them to stop selling unproven, unsafe disinfectants including products that falsely marketed towards killing covid-19 on their platforms. we are talking about sprays, other products touted as
preventing epidemics, 70 in total. this will come with some fines if they don't do that. around $20,000 per sale if that occurs. the company, if we can bring up amazon's statement here, saying the company has been removing the products in question and we are taking action against the bad actors who listed them and they developed specific tools to scan product detail pages for any inaccurate claims they say the company's initial filters may have missed. this is something obviously very important to crack down on. i still haven't been able to find the clorox wipes now for three months on amazon. have you? stuart: i have not been looking, actually. i must confess. susan: you are one of those brave types. stuart: i don't know about that. i'm going to move on. is that okay? i'm going to move on from this. i got it. right. look at airlines. down again. oh, my lord. i think travel stocks in general are getting crushed. bring me up to speed, lauren. lauren: airlines, hotels, cruise
lines, casinos, they are down and down big today and this week. here's the rub. they are up so sharply from their march 23rd lows when the market hit its low, for instance, marriott and windham hotels up more than 90% since that time. spirit airlines up 72% from that time. so if the concern among investors today is there could be a second wave of the virus, which means you will think again before hopping on a plane, for instance, there is still more room for more selling in these stocks. stuart: okay. there's a lot of selling going on right now. lauren: sorry. stuart: no, that's okay. we are indeed at the session low. we are down 1,100 points now. that is better than 4%. so we are spiraling down. i think i can use that expression correctly. down 4.05%. 25,900. that's where we are. several states are seeing an increase in virus cases.
treasury secretary steven mnuchin says we will not shut down the economy again, saying it would cause even more damage. that's the treasury secretary saying that. larry kudlow's coming up. he's going to talk about the recovery and maybe the next stimulus. we'll be right back. stock slices. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow.
stuart: another new low for today, thursday's trading session. now we're down 1,120 points. that's 4.1% on the down side. obviously, there are worries about what the federal reserve sees as the slow pace of the economic recovery. there's also some concern about the 100,000 new virus cases reported in the past week. talk of a second wave. on that note, here is wyoming senator john barrasso, who happens to be a doctor. mr. senator, perfect timing. what do you make of this
possible second wave, 100,000 new cases in the past week? your position, please. >> i don't think this is any surprise, stuart. we expected as people came back to work, back into the communities, there would be an increase but our communities are ready and prepared for this. we have adequate testing all around the country right now. we have hospital capacity if it is needed. the vaccine you are seeing really breakthrough activities with the development of a vaccine. we are not shutting down again. the most important thing we can do now for our country is get americans back to work and government spending is clearly no substitute for a strong and robust and growing economy. stuart: would you change your opinion if for whatever reason, there is a huge spike in new cases? and deaths and hospitalizations? would you change your position at any point? >> i don't see any good reason
to go back to where we were where the government shut down the economy of the american people. what we have seen is that we know much better how to deal with it with social distancing, with hand washing, with wearing of masks. people know what to do, how to behave. i don't expect the kind of spike that you've just described but there is no shutting down this economy again in my opinion. stuart: mr. senator, i'm about to interview larry kudlow, top economic adviser to the president, and i'm going to ask him about a new round of stimulus, maybe with direct payments to people. what's your position on more government spending to stimulate the economy in the near future? >> you know, i was one to call for pushing the pause button. i think that was the right decision. any additional spending is basically additional debt. i don't think we need to do anything to rescue the economy this time. if we do anything, it has to
really make sure it's focused on the disease and getting people on the job. you know, i have been chair of the committee that oversees infrastructure, bridges, highways, roads, all of those issues, water, our ports. that is something that actually puts people to work. we have bipartisan legislation on that. if there is an additional package, that should be part of it. liability reform has to be part of it. but just additional spending for spending's sake, i'm against that. stuart: senator john barrasso, republican, wyoming, thank you very much for joining us. it is appreciated as always. thank you. >> thank you. stuart: yes, sir. all right. low of the day, we are down 1120 points on the dow industrials. we'll be right back. in my line of work, i come face to face with a lot of behinds.
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the federal reserve is wrong so often. i see the numbers also and do much better than they do. we will have a very good third quarter, a great fourth quarter and one of our best ever years in 2021. we will also soon have a vaccine and therapeutics/cure. that's my opinion. watch. we are joined now by larry kudlow, senior adviser to the president on economic matters,
from the white house. larry, you just heard what the president tweeted. you heard what the fed said yesterday and if i can paraphrase that, it is that the recovery is not as fast-paced as you say. join the debate. where is jay powell going wrong? >> well, let me just say that i completely agree with the president. we're going to have a fantastic third quarter and fourth quarter and going right into 2021 could be tremendous, tremendous comeback year. you know, i don't know why the market has sold off whatever it is, 1,000 points. i admit i'm not having that much fun this morning coming on your show. we've had better news. but regarding jay powell, okay, i think chairman powell is giving us zero interest rates for two years. that's really quite good. you can't get more dovish than that. the balance sheet's going to rise by about $10 trillion by year end.
the money supply is growing by 23% year on year. now, i do think mr. powell could lighten up a little when he has these press offerings. you know, a smile now and then, a little bit of optimism, okay. i'll talk with him and we'll have some media training at some point. but basically, i don't see the fed as an obstacle here and the unemployment claims, the unemployment claims again, the initial claims today, right, fell by 355,000, continuing claims by 339,000. this, by the way, is the tenth consecutive week that initial claims have fallen and i do not think the may jobs report which surprised everybody up three million is a fluke. i think we see more and more green shoots. more and more green shoots. stuart: but what are you seeing that makes you say look, this third quarter's going to be pretty strong, a good one, and the fourth quarter just terrific? what are you seeing to make you say that which jay powell is not
seeing? >> well, again, i don't know, i don't wish to interpret what he said. he's staying the course. now, we are seeing a proliferation of green shoots and that's been an argument that my colleague and friend kevin hassett and i have been making for many many weeks now. green shoots, housing demand is skyrocketing, automobile demand, the apple mobility index is almost at pre-pandemic levels, showing a lot more traveling. new business applications are soaring. business openings are soaring. now, the chamber of commerce has that pegged as i think 79% or 80% either partially or completely open on businesses, and there's a whole litany of other green shoots. so the high frequency indicators look very good. there's talk in the market today about a second jump in the pandemic. well, look, i can't -- go talk to deborah birx about that. she doesn't seem to think so. all i'll say is we keep the
sheets every single evening and regarding new cases, the growth of new cases and the growth of new fatalities is running between 0% and 1% and has been for many many weeks. so it's completely flattened out. but -- stuart: 100,000 new cases in the last week, larry. i'm not trying to lighten up on this but we've got 100,000 new cases in the last week, roughly speaking, and there is a feeling that the more new cases you've got, it slows down the economic recovery and could lead to new crackdowns in some localities if you get a really big spike. that's the concern of the market, i think. >> well, okay, fair enough, stu. i'm not a medical expert, as i say. i would talk to ambassador birx on these things. but look, my seven-day averages, we work a seven-day average for new cases and fatalities, that's also running between 0% and 1%. it has not changed. mind you, we are testing much
more, okay, so that's one point. so you may find a little pickup in cases. secondly, hospitalizations have increased a bit more. but that's because they are now accepting elective surgeries, you can get your hip replaced. i had mine replaced about a year ago. that may be confused with covid. i don't want to downplay the heartbreak or the hardships of new cases. i don't want to go there. i certainly don't want to downplay any fatality at all. i don't want to go there either. i don't want to downplay the unemployment. we have not solved everything. but i do want to say with this market this morning, that the trends are pointing upward. therefore, i will defend the president's optimism. i think you've got 20% growth in the third and fourth quarters and i think you will get 4% or better in 2021 and i do think as we come up to the congressional talks, it's necessary that we build in as many economic growth
incentives for the future as we possibly can so we can get back to where we were last winter. stuart: larry, that's for the future. that's after the election, that's into next year. what about a new stimulus program now that puts money into people's pockets now? do you see the need for that? >> that's what i'm referring to. we're looking at a lot of options right now. i'm not going to negotiate with you, with all respect. we're looking at a lot of options, okay? i think, you know, when you diagnose this patient correctly, the paycheck protection program which was put in to solve the problem of the pandemic shut-in, the mitigation shut-in and the business closing, and the ppp program which still has some ammunition left was a tremendous, tremendous thing and it's leading directly to the improvement in jobs that we saw for may reported last friday. okay? i think that's the key point. now, other areas, there will be
some unemployment reforms, we will take a look at tax rebates, we will take a look at capital gains, we will take a look at the payroll tax, we'll take a look at deductions for restaurants, entertainment, baseball games, tourism. these are all things the president talked about publicly. we are always sorting through them. we are always talking to leaders of the house and senate and we will come up with a package that has to be pro-growth. things you do now, stu, things you do now, have you you have t the future. it's not next week. economic policy takes awhile to kick in. i want the messaging to be loud and clear that we will continue to cut taxes and regulations with reciprocal and fair trade deals for better exports and jobs and growth. you have to keep messaging that. that is what the president has been doing. so i know today is a rough day but i don't think today is the last word. by the way, we are still 40% above the march 23rd low.
stuart: okay. larry kudlow, it always is a
pleasure. again, thank you very much for being with us today. larry kudlow. >> thank you. appreciate it. stuart: sure. thanks. all right. the dow industrials are down 1146 points. you are looking at the white house, left-hand side. moments from now i believe the president will leave and get on his way to dallas, texas. we will cover it for you after this. . .
maybe it's a sign of the times. the country club, lady antebellum, changing the name to laidly a, after profound reflection on the name of the group. neil, i believe it is yours, sir. neil: incredible. thank you, my friend. we're following the same selloff that you are. down 1145 points here. most of the dow 30 stocks are down. all the s&p 500 sectors are down amid growing concerns of a second watch of this virus. we've been exploring this possibility here that the markets move on promising news on the virus at least being vanquished being ahead of it. growing concerns in at least a dozen states there are spike in cases. i have not stressed in the latest report. there was nothing startling here outside the spike is pronounced in some states aggressively reopening here. not to the point that i