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BARTIROMO: Unbelievable. I mean, look, we've all been there, right, Cheryl, Dagen, in terms of getting bags lost, in terms of the upset at TSA; but when you actually consider what you just said, I mean, the vulnerability in terms of bombs. Dagen, that's pretty high salary given what we are talking about.

MCDOWELL: We are not getting much for our money, in terms of how TSA is operating. There's a lot of pushback coming on Capitol Hill from flyers because of extremely long lines that have turned up, particularly heading into the summer travel season.

I will say this, we had Senator Richard Blumenthal, among a couple of senators, who is were telling the airlines to drop the checked bag fee in order to speed up the security lines. I'll say to this, this is not a problem of private industry. This is a problem of government. It is those very lawmakers, and the people running the TSA, need to figure out how to fix it, and fast. Stop putting the burdens on the airlines; it's not their fault.

BARTIROMO: Yes; you're getting fee'd to death, that's the bottom line. All right, we'll take a short break. Lots to come in the program. Still to come, the gun used to kill Trayvon Martin back on the auction block. The latest in the George Zimmerman gun saga coming up next. Then, the retail cloud growing darker; first Macy's, then Kohl's. Nordstrom, the latest retailer that disappointed on earnings. JCPenney is out today. Retail sales, likely a market mover, also out this morning. Some people blaming amazon; next.


BARTIROMO: Welcome back, live this morning from Vegas. The retail pain continues; Nordstrom shares shrinking after revenue and earnings missed Wall Street expectations for this most recent quarter. The company also cut its full year outlook, this after Macy's reported its worst quarterly sales since the financial crisis, that was earlier this week. Today we are waiting on JCPenney, reporting before the opening bell this morning. The April Retail Sales Report is at 8:30 a.m. Eastern this morning.

I want to bring in Kevin Kelley, Chief Investment Officer at Recon Capital Partners. Kevin, it is good to see you.

KEVIN KELLEY, CIO, RECON CAPITAL: Thanks for having me.

BARTIROMO: What are you expecting? I mean, what is going on with retail? The consumer still not reacting to oil prices where they are?

KELLEY: Yes, the consumer hasn't really rebounded and is spending their money more on tangential things like Monster Energy. They've done well in this environment; but what's really happening in retail sector is margins are coming under compression, as well. So you haven't seen an uptick on the consumer spending as well as margins are starting to compress; and you've seen that throughout Macy's, JCPenney's, last quarter. You're seeing it right now with Nordstrom. So it's an interesting environment.

BARTIROMO: You know, I was really surprised, during the break, when you and I were talking about the expectations. Retail sales, out in about two hours, and the estimate is up about eight-tenths of a percent. If we get an eight-tenths of a percent number, does that tell a different story than what we are seeing from some of the retailers?

KELLEY: You know, I think it actually helps. It's hard to look at it on a month-to-month basis. You want to look over the last three months, last six months, last year just to start to see a trend. What we have seen is mixed data; we've seen mixed trends. So, eight tenths of a percent would be great.


KELLEY: It would help lend some credence that the consumer is probably starting to go spend a little bit more, getting healthier; reaffirming the job's numbers that we have seen, that wages are starting to increase. So it will help solidify that story.

BARTIROMO: Markets under pressure this morning. How important is this retail sales number for the stock market, and what do you think is going on in terms of you're here at this hedge fund conference, SALT; what are you hearing from clients?

KELLEY: We think it's actually pretty important, right. If you look at the overall economy here in the U.S., it's roughly 70-percent services, retail falls into that pretty significantly. So what we're hearing though is people are really pretty concerned on the fixed income side of the market, and one of the reasons why is we are at all-time lows on yields; companies are really levered, they're not bringing their cash back overseas. So those are some of the issues that people are facing, but also the liquidity side, right? So because of regulation, Dodd-Frank, --


KELLEY: Tons of regulation like that, banks don't want to take on risk. So that's going to impact pricing of securities, especially when people sell.

BARTIROMO: When you look at a company like Macy's, I mean, the stock obviously having a tough time over the last couple of months, is this because there's not foot traffic or people are shopping but they're going online? I mean, what role is the increase in online shopping playing, in terms of this overall brick and mortar weakness that we're seeing in the retail segments?

KELLEY: I'm glad you brought that up because Macy's has a great management team, right, and it's a really well run company. They're down about 50- percent over the last year; so it's been a very tough environment for them. It' not all having to do with retail, online sales, because you can see Macy's has a great omni-channel presence.

BARTIROMO: Right; they've online.

KELLEY: Yes, they're online. They have great pricing online. They have a great omni-channel. So it doesn't necessarily have to do with that. It just has to do with such a competitive environment, and it has to do with people's tastes and they're changing and they're fleeting and they're going so fast that it's hard for big large companies to react.

BARTIROMO: We've got to talk about Google and Apple. Wow! Apple now hitting a two-year low. Google, the most - alphabet is the parent company, but hitting the most valuable company in the world, in terms of market capitalization. That's pretty extraordinary.

KELLEY: Yes, and that makes sense; right, because let's think about Google. What does Google have? They have some of the three hottest sectors that you want to be right now. They have streaming, with YouTube; they're in the cloud; and they're killing it on mobile devices, with their android platform. They're doing very well. Even the CEO of Google said, on last earnings, he said mobile shopping has turned from moments, just quick shopping, to marathons. So they are capturing that.

Now the margins are starting to increase, but - and they're not getting the benefit -- it's not as good for them on mobile because they have better pricing on desktop, but they're the dominant player in that. You look at Apple; Apple really just has one device that makes up 65-percent of revenues.

BARTIROMO: What a story. Remember when Google went public, they did that non-convention auction when the stock - was it $85?

KELLEY: Yes, it was a Dutch auction.

BARTIROMO: $85; I mean, we're talking about a company that's close to $500 billion in market value.

KELLEY: And we're talking about execution because look at what has happened to YouTube.


KELLEY: Yahoo! - Yahoo! could have -


KELLEY: -- dominated this space, right, --


KELLEY: -- and they really gave it away. They were at the forefront and they were the dominant player in search and here was an upstart Google that really took it over and it lends credence to their business model and how they've done with their management.

BARTIROMO: Sure did. Kevin, good to see you.

KELLEY: Thanks for having me.

BARTIROMO: Thanks so much. Kevin Kelley there. Want to take a short break; when we come back, still to come the Ferguson effect. Why FBI Director James Comey is blaming the viral video effect for spiking violent crime across the country. Plus, after Ferguson many cops were equipped with cameras. We'll take a look at the cost involved in those body cameras. Then, this is not your ideal commute, that's for sure; a car getting swallowed by a sink hole. The story coming up; back in a moment.


BARTIROMO: Welcome back. Happy Friday, everybody. I'm Maria Bartiromo. We are coming to you live this morning from Las Vegas. It is Friday, May 13th. Your top stories right now at 6:30 a.m. on the east coast.

The path to unity, presumptive Republican nominee Donald Trump and House Speaker Paul Ryan coming out of their meeting yesterday hopeful that they can bring the party together.

On the Democratic side, Bernie Sanders drawing big crowds in South Dakota as he looks ahead.

Meanwhile, President Bill Clinton raising eyebrows with comments on getting out to vote.


FORMER PRESIDENT BILL CLINTON: There are 35,000 potential votes in this primary so I want to you to vote for him and I want you to drag some of your friends kicking and screaming to vote for him.


BARTIROMO: State troopers in two states suspended over violent arrests. This as police forces start using body cameras more. We are taking a look at the costs involve coming up.

A car swallowed by sink hole. Look at this amazing picture. Details and more of the incredible pictures coming up of this sink hole and car getting swallowed up.

Meanwhile, want to try a French fry facial? Burger King opening a spa at one of its restaurants. We will take you there.

Plus a hot-trending Hollywood turning video games into blockbusters, but will they be successful at the box office. The top movies to watch coming up right here.

Markets this morning are under selling pressures, futures pointing to a lower opening for the Dow Jones Industrial Average this morning on the heels of weakness in Europe as well as Asia overnight.

All that coming up but first, two state troopers have been suspended amid an ongoing criminal investigation into their use of force while arresting an unarmed man.

That's following a 50-mile high speed chase. The video on the screen is graphic, but it shows the two officers beating up, driver, Richard Simone, Jr. after he apparently surrendered to authorities following that chase.

Joining us right now is former homicide detective and Fox News contributor, Rod Wheeler, and Milwaukee County Sheriff David Clarke. General, good to see you. Thank you so much for joining us.

Sheriff, let me kick it off with you because we see these pictures, these cops beating up this individual. He had already surrendered. What's your take away?

SHERIFF DAVID CLARKE, MILWAUKEE COUNTY SHERIFF: You know, I don't have all of the facts obviously, the video is only part of it. I understand he led these officers in a high-speed pursuit, builds up a lot of adrenalin and anxiety in those situations. I'm not rationalizing anything that's not necessary here, but I want the investigation to play itself out. I want to learn all the facts before I comment any further on it.

BARTIROMO: Understood. Rod Wheeler, where do you see it?

ROD WHEELER, FOX NEWS CONTRIBUTOR: Well, I agree with Sheriff Clarke. The other thing that we have to realize when we look at videos like this, Maria, it goes along with everything else that happens with police officers, we have to get the full story.

We don't know exactly what transpired prior to the cops pulling that guy over and we don't know if that guy had a weapon so there's a whole lot more that we don't know.

But the interesting thing is that when people see clipits like this, Maria, they automatically say, oh, my God, they're beating this poor guy up when that may not be the case.

BARTIROMO: OK, so we really do need more information in order to make a judgment here, I get that, but you know, we are in a different world right now in terms of these pictures and cameras.

We know what FBI Director James Comey said he's calling it the Ferguson effect, police officers around the country are refusing to go above and beyond to prevent violent crimes for fear of ending up video doing the wrong thing.

Comey says this viral video affect is leading actually to a spike in violent crimes in major cities across the country and we see that, Sheriff. We see the numbers up in the double digits, wherever you look.

CLARKE: But I don't believe that the American police officers are afraid to do their job. All James Comey has to do is look down the hall for the cop hating United States Department of Justice led by this cop hating president and a race obsessed, Attorney General Loretta Lynch and her hence men from the Civil Rights Division.

They're on this constant witch hunt all across country to looking to snag some American police officer for slightest transgression and takeover as many local law enforcement agencies as they can.

I think they are up to 20 now. If James Comey wants to help, he should go have a sit-down with the attorney general and tell her to get these goons from the Civil Rights Division off the back of the American police officers so they can go back to work.

And then we'll see more assertive policing. But to blame this strictly on a video, we've been dealing with video since the Rodney King incident. We know that America watches us when we're out there doing our jobs.

BARTIROMO: So you do -- so then you do play some of the blame on the tone that has been set in this country from the president?

CLARKE: I blame all of it on the tone set. He's been leading the chorus in this anti-police rhetoric. And you know, he'll stand up in one sentence and he'll say, you know, we need our police officers and then go on five- minute tirade about how they are racist. They are over bearing. They are trigger happy.

And that's been very damaging to this profession and undermines the confidence that we have to have the public see in our law enforcement officers as they go about the difficult job. I believe that --


CLARKE: -- if they back off with this anti-cop rhetoric, cops will feel more confident about going on there and taking a risk, this is a high risk job that we are involved in.

We are willing to take those risks but only if we know that someone has our back and if something goes terribly wrong not through the fault of the officer.

BARTIROMO: Yes, yes. Rod Wheeler, I mean, that's all really good points there. I mean, you know, the police have not gotten a lot of support in the last several years and then, again, when you see pictures like this, that also sets expectations.

WHEELER: Absolutely, it does. I will tell you it's not only President Obama, I mean, with some of the rhetoric that has come out of the White House and the Department of Justice. But you know, Maria, a lot of it comes down to the local elected officials.

I mean, let's face it. In Ferguson, where I was as you well know, you know, during the riots the governor there, Jay Nixon told the cops to stand down, so we see that.

When I was in Baltimore for the riots, the mayor, Sheila Dickson, told the cops to stand down. So the question becomes, and it's a simple question, what do you expect out of your police department, do you want us to enforce the quality of life issues?

Here is the problem real quickly, Maria, every time an officer gets out of his or her police car, they don't know if it's the end of their career at that point or not. Why?

Because they don't know if some politician is going to back them if they were to try to do their job, and I'll tell you 99 percent of the time police officers do a tremendous job and we don't get the backing that we need from our local, state and federal officials.

BARTIROMO: I agree, they put their lives on the line every day, go ahead, Sheriff.

CLARKE: Force is an unpleasant aspect of police work and it's never going to be pretty when we have to use force. But what that force should be judged on in the end is was it effective and reasonable.

It may not look pretty, it's not going to all of the time, but if it's effective and reasonable that's what I as a law enforcement executive look at when I'm judging these things and I do get to weigh on whether that force was effective and reasonable as well as other people like a prosecutor.

But if I think it's effective and reasonable I'm going to back that officer to the wall. If it's strong I'm going to assist in getting that officer charged.

But more times than not we are going to see that the force was reasonable just like in Ferguson and Baltimore. I think those Baltimore six are political prisoners and over sell the state prosecutor who was looking revenge in charging those six officers.

BARTIROMO: Yes. What's your take on body cameras? Go ahead.

WHEELER: One other thing that I wanted to add to that, not only are they political prisoners that you call them, they do realize and recognize how quickly they charge those officers before the investigation was complete. I have never seen anything like that.

As far as body cameras are concerned, Maria, that's fine, it's just another tool that's out there that we have to be aware of as long as we utilize that technology properly.

BARTIROMO: What about that, Sheriff, I mean, you know, there's this debate going on at precincts across the country, we know that, over the use of these body cameras, how to pay for them, even more how to manage the high cost of storing the videos for months and sometimes years in terms of storage, are body cameras worthwhile?

CLARKE: Yes, it's a force multiplier. I don't have a problem with that technology, but like anything else when we rush to implement some sort of strategy, we don't think long-term about the unintended consequences.

This is going to be a very, very expensive venture that down the line might fear is we will lose other resources that we need out there to pay for stuff like these because the communities aren't going to be able to afford it.

And trust me the federal government down the road is going to say, that's your problem, we got them implemented. We did all we needed to do and now it's your problem.

Storage is very expensive, how long are you going to store it? Its evidentiary aspect is important as well. You're going to have to set up entire new divisions just to handle this.

The big thing as you said, Maria, who is going to pay for it, but it's here to stay now.

BARTIROMO: Yes, it's here to stay now, Rod, but we have lots of debate in terms of what the impact is from police and what, you know, what they're willing to take onto the public immediately getting that look at what's happening in a police situation.

WHEELER: Exactly. And you know what, we are seeing more and more of that just as the sheriff said, I mean, the video cameras are going to be here to stay. The body cameras are here to stay.

The question really becomes how are we going to utilize that video image and the video tape? Whether it's going to be used for evidence in a courtroom or is it going to be used strictly to go after the police officer, which I think has been happening.

I mean, with the body cameras and every other camera out here, you know, to me it seems like it's to go after the police officer, to second-guess the police officer and what's going to happen is what we see now we are going to continue to see a spike in crime.

Because I will tell you if I was in a police car today I would be reluctant to jump out the car and enforce quality of life issues.

BARTIROMO: And these are the stories we keep hearing. Gentlemen, thank you very much for your insights, David Clarke, Rod Wheeler. We'll see you soon, Gentlemen. Thank you.

Coming up next, Apple making a massive investment in an Uber-like service in China. Why that move will help the technology giant better understand the Asian market.

And if you are looking for some R&R, how about checking into a spa at Burger King. We will tell you about the fast-food chain's latest endeavor. Stay with us right here.

Don't forget to check out MORNINGS WITH MARIA on social media. We are on Facebook, search morningsmaria. We are on Twitter @morningsmaria. Keep an eye out for daily polls, upcoming guests, and highlights from today's program. We will be right back. We are live from Las Vegas this morning.


BARTIROMO: Welcome back. We are expecting losses at the opening of trading this morning. The Dow Jones industrial Average expected to open lower. We are waiting on retail sales, however.

Of course, here's a couple of stocks to watch this morning. Retail very much in focus, today's JC Penny, lately it has been a bright spot amid weakness in the entire sector especially for department stores.

The company had previously said it will post its first annual profit this year in five years. The stock is up nearly 20 percent so far this year.

Shake Shack likely to be a winner today. The burger chain reporting better than expected first-quarter results. The company also raised its full-year sales outlook. So that's certainly one to watch.

And of course, in about two hours, we get the retail number for the month of April.

A massive sinkhole swallows a car in London. Cheryl Casone with the story and the headlines right now. Cheryl, good morning.

CHERYL CASONE, FOX BUSINESS: Good morning, Maria. These images are something to look at. Take a look at this, this car falling down a giant sink hole. This happened in southeast London, a very packed suburb of London.

Investigators say the reason heavy rain might have caused the collapse, but no one was hurt and that street still blocked off this morning.

Well, another headlines this morning, George Zimmerman trying to sell the gun that he used to kill Trayvon Martin on two different auction websites.

He first listed the gun on Gun Broker, which kicked him off and later, he tried to list it on United Gun Group, which rejected the idea as well saying, quote, "We do not feel like it is in the best interest of the organization to continue to host this sale on our platform."

Well, Apple making a $1 billion investment in China's version of Uber is called Didi with a valuation of more than $25 billion. Didi is one of China's most valuable start-ups.

It is involved in a head-to-head competition with Uber China to attract riders and investors in China's ride-share market, which has incredible potential.

And if you ever thought that your spa day was missing a whopper, well your prayers have been answered, Burger King has opened a spa in one of its restaurants in Helsinki, Finland.

The spa includes, get this, Maria, a 15-person sauna, another 10-person sauna with a 48-inch television in it and the rooms are decorated with red and blue benches, towels, and Burger King logos.

You can even place your order when you arrive and have it delivered to you in the spa. But Maria, the real whopper, the cost, price start at 285 bucks for a three-hour block of time. Back to you.

BARTIROMO: That is really funny. Cheryl, thank you. Love spas but Burger King. OK, before we take a break in case you missed. Take a look at some of the top moments from the program this past week.




BARTIROMO: Hollywood making a motion picture out of the popular video game franchise, "Assassins Creed." The first trailer for the December film premiering this week starring Michael Fassbender with a slew of other film adaptations of video games set to be released in the coming years. This trend is looking like a big fad. Is it the next big trend in Hollywood?

Joining us right now is realclearlife.come contributing editor and entertainment reporter, Katrina Szish. Good to see you. Dagen is also joining the conversation. So Katrina, do you think this is the future?

KATRINA SZISH, ENTERTAINMENT REPORTER: You know, I think it could be and, of course, studios are hoping that it will be, but I think with "Assassins Creed," we might finally see a video game adaptation actually making real progress at the box office and making serious money.

The cast of this film is incredible as you mentioned Michael Fassbender, Marion Cotillard, Jeremy Irons, we've got kind of headlining, Oscar nominees and Oscar winners in this film.

And apparently the story telling of not only the video game, but how they adapted to the film is really going to capture audiences whether or not you're aware of the game. It's supposed to be a spectacular story so fingers crossed.

BARTIROMO: Yes, Dagen, we know the popularity of video games, you have to believe this is going to resonate big, right?

DAGEN MCDOWELL, FOX BUSINESS: Yes, and there will be more and more of these films if this one does well. You have Alicia Vickander (ph), who just won the best supporting actress Academy Award who's been recast in the Tom Raider series, which originally started Angelna Jolie.

But I would pay to see Michael Fassbender read the ingredients off of a cereal box. So I think that there are a lot -- with Marion Cotillard as well, this has some serious chops and they're opening it in December which is an indication that it will do well among a broad audience.

BARTIROMO: Yes, you know, Katrina, we were having this talk with Ron Howard, we are going to talk with Ron Howard coming up in the program about really what's resonating with the movie going public.

What about the cost? I mean, how does this fit into what studios want to make and what they are willing to invest in? Because you know gone are the days when all the studios will buy into putting their money on a blockbuster because all the blockbusters are not bringing in the revenue.

SZISH: Exactly. I mean, although I think we are seeing, you know, say with the superhero films, "Batman versus Superman," whether they are panned or not, they are drawing people to the box office and they are making back the hundreds of millions of dollars that are put into making it.

"Assassins Creed," they are spending an estimated $150 million to $200 million on this film and they are expecting to make that back and much more. So they are willing for a film like this that has to potential to put in a lot of money.

BARTIROMO: All right, we will be watching that. Katrina, thank you so much for joining the conversation. Katrina Szish there.

Before we take a break, let's go to Cheryl in New York, she has the morning's ETF report right now. Cheryl, over to you.

CASONE: Yes, Maria, looking at major averages. Little change this week we should say, but one group has landed in the discount ben, take a look at this, that would be the Spider S&P retail ETF. The ticker here is XRT.

This broad gauge of U.S. retailing industry plunging more than 3 percent for the week after several stores as you were reporting earlier, sales numbers have fallen short of Wall Street estimates.

Some of the big losers includes the names you know, Macy's, Gap, Kohl's, Nordstrom. National retail sales numbers out, by the way, at 8:30 Eastern Time today. We will have those numbers crossing.