Live Coverage and Discussion on the Republican National Convention; Killer Stalked Cops; Clinton's New Attack Ad; Stock Market Updates; A

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Killer Stalked Cops; Clinton's New Attack Ad; Stock Market Updates; A

Former Police Officer Creates Watches and Sells Them at the Republican

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(COMMERCIAL BREAK)

UNIDENTIFIED MALE: Live from the 2016 Republican national convention in Cleveland, Ohio, you're watching a special edition of MORNINGS WITH MARIA.

MARIA BARTIROMO, FBN ANCHOR: Good Tuesday morning, everybody. Welcome back. I'm Maria Bartiromo. It is Tuesday July 19th.

We are coming to you live this morning from the Republican national convention in Cleveland, Ohio.

Here are your top stories 7:00 a.m. on the East Coast.

"Make America work again" -- that is the theme for day two of the convention today. Donald Trump's children set to take the stage with Donald Trump, Jr. and Tiffany Trump speaking.

The crowd going wild last night as Donald himself made a big entrance to introduce his wife, Melania. The possible future first lady expressing how proud she is of her husband.

(BEGIN VIDEO CLIP)

MELANIA TRUMP, DONALD TRUMP'S WIFE: I'm so proud of your choice for president of the United States -- my husband Donald J. Trump.

And I can assure you he's moved by this great honor.

(END VIDEO CLIP)

BARTIROMO: Not to be outdone Trump's opponent Hillary Clinton spoke yesterday attacking the likely Republican nominee. Listen.

(BEGIN VIDEO CLIP)

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: We need a president who can help pull us together, not split us apart.

I will work every single day to do just that, the Republican nominee for president will do the exact opposite.

(END VIDEO CLIP)

BARTIROMO: Not everything going smoothly though in Cleveland, protestors causing security outside the area to be on high alert.

The war on police meanwhile. New security footage shows Baton Rouge shooter Gavin Long moving tactically as he attacks police officers. This as new details over the weapons he was carrying are released.

To our top business stories now. Fiat Chrysler under investigation where the government is questioning the company's sales figures.

And break out the checkbook -- the major cities where it's better to buy than rent.

Markets this morning were pulling back from record highs yesterday. As you can see futures indicating a lower opening to stocks this morning after another record day yesterday with the Dow Industrials finished at an all- time high. We are waiting earnings this morning from big names like Goldman Sachs before the bell.

In Europe this morning the major indices are lower across the board. Take a look. Germany's DAX index leading the losses with the German economic sentiment report out for the month of July. That hit its lowest level in nearly four years.

In Asia overnight stocks are mixed. Nikkei average led the way. It was up 1.4 percent

All those stories coming up this hour.

And here with me to break it all down. Fox Business Network's Dagen McDowell; former Massachusetts senator and Donald Trump supporter Scott Brown also with me this morning. And we are going to be talking with Frank Luntz coming up. Grover Norquist, Americans for Tax Reform president; actor and Trump supporter Antonio Sabato Jr. is with us; Democratic committee chair Debbie Wasserman Schultz also joins us; and the CEO of CKE Restaurant and Trump Victory Committee member Andy (inaudible); also with us Milwaukee County Sheriff David Clarke.

A big show -- good morning, everybody. Great to see you.

FRANK LUNTZ, FOX NEWS CONTRIBUTOR: Good morning.

SCOTT BROWN, FORMER MASSACHUSETTS SENATOR: Good morning again.

It's been a great show. Frank -- good to see you. Thank you for joining us.

LUNTZ: Thank you.

BARTIROMO: We've got former New York City Mayor Rudy Giuliani really bringing the RNC crowd to its feet last night with a fiery speech -- one that gave a warning to Islamic extremists. Watch.

(BEGIN VIDEO CLIP)

RUDY GIULIANI, FORMER MAYOR OF NEW YORK CITY: For the purposes of the media, I did not say "all of Islam". I did not say "most of Islam", I said "Islamic extremist terrorism". You know who you are. And we are coming to get you.

(END VIDEO CLIP)

BARTIROMO: Joining us right now is pollster and Fox News contributor Frank Luntz. Frank, good to see you. What did you think about Rudy Giuliani? You just said this was one of his best moments.

LUNTZ: So I'm sitting up in a box with a number of the top senators and congressmen and the conversation stopped. It came to a standstill. Everybody is looking up. Rudy Giuliani held that audience in the palm of his hands. I've seen him do a number of convention speeches. I've worked with him for 20 years. That was him at his best.

I've never seen him so passionate. I've never seen him care so much. And I'm surprised because Donald Trump is not the traditional politician, but Giuliani in his commentary about national security and in his support for Donald Trump, there was emotion, there was pathos. That's powerful.

BARTIROMO: Yes. You know why, Dagen, he has credibility on this subject. He was there on 9/11 and kept all of us safe in New York -- New Yorkers, obviously. You made the point earlier, remember that.

DAGEN MCDOWELL, FBN HOST: New Yorkers have a deep emotional connection with the former mayor and many Americans certainly do. And it might have - - it played well in the arena but I was watching it on TV because I was really curious to see how the speakers -- how they really connected with the audience. And he jumped out of the screen and it was raw emotion.

He cares about the direction of this country and above and beyond everything else he does not want Hillary Clinton to win the White House and us to have a second Clinton presidency, because he knows it's not -- it's an extension of Bill's presidency.

BARTIROMO: It's why they call him America's mayor.

(CROSSTALK)

LUNTZ: He's fighting about the future of New York. He believes the current mayor isn't -- in fact, he believes the current mayor is taking the city backward. He believes the current president is doing exactly the same thing.

This is real. It's genuine and it's so rare in politics. So much of it is manufactured. This is coming from his heart. This is coming from his experience. And it -- the whole convention night, and this is what's different, these delegates are paying attention.

I've been to every convention since 1992. You talk during it. You eat during it. You drink during it. This is the first time when they're in their seat and they're listening to every word. When those Benghazi heroes were speaking and they went way over, by the way. If you want to understand why they were still doing speeches at 11:30 --

BARTIROMO: Yes.

LUNTZ: -- because those Benghazi guys went long. But they were listening to every word and I saw women crying. I saw guys with their heads in their hands. It was so emotional.

BARTIROMO: Let's listen to that because Giuliani touched on Hillary Clinton's comments in regards to Benghazi and a disregard for American lives lost. We have the sound bite you're referring to. Watch this.

(BEGIN VIDEO CLIP)

GIULIANI: Hillary Clinton's answer to congress about the death of these four brave Americans because of her gross failures as secretary of state was, quote, "what difference at this point does it make".

(END VIDEO CLIP)

LUNTZ: Ok. His acting is -- I mean the hand gesture -- somebody needs to tell him to bring it in a little bit. This is television. But this is how people feel. He touched a nerve.

MCDOWELL: I was going to ask you that, being a southerner who gesticulates wildly with my hands every day. I was more curious about his hand gestures.

LUNTZ: I thought he was going to pop his coat.

BROWN: Yes. And I think -- well, I think that's appropriate though. I think the bigger the better. He was spot on. He nailed it. People love Rudy Giuliani. I consider him a friend. And he considers Donald Trump a friend and vice versa.

So to have him up there advocating for Donald, drawing the comparisons between Hillary and Donald and where we are going in the future is huge.

And your reference to de Blasio and what he's doing to the city. You guys live there. I've lived there and I visited it. Compared to when he was in charge and compared to the way it is now, it's night and day.

MCDOWELL: I need to correct you. I don't live there anymore. I just moved out for that very reason.

BARTIROMO: Is that the reason you moved?

MCDOWELL: I won't pay taxes and be treated like that as a citizen.

BARTIROMO: It is night and day. I live there and it's absolutely night and day.

BROWN: Trying to dictate the people where to eat, what to do. You know, it's ridiculous.

BARTIROMO: Yes.

BROWN: And just want to comment on I was out with my family last night here in Cleveland, walking around, eating and socializing. I want to thank the numerous law enforcement, state troopers, sheriffs, police officers in Cleveland and from around our country for keeping us safe. It was amazing.

And what I find so gratifying was the interaction between the protestors and police. Everyone kind of got along and hopefully there's not going to be a knuckle head that's going to change that because I thought it was really moving last night being out there with everybody.

BARTIROMO: Big shout-out to law enforcement. Thanks for that.

LUNTZ: And the convention -- those delegates -- every time that there's a mention of the police you can see people going just -- really getting emotional. Watch the difference that you're going to see repeatedly appeals to support for our men and women in uniform, whether that be the soldiers or the police, the firemen.

At the Democratic convention they are going to have trouble. How do you do a shout-out to the police when your own activists within your party are challenging the way the police behave?

BARTIROMO: It's true. Yes.

Let me ask you -- give us your sense of the polling right now. Things are tighter.

LUNTZ: She's got a lead.

BARTIROMO: She's got the lead. Hillary Clinton is leading.

BROWN: You mean Electoral College --

LUNTZ: Yes. Because she's winning almost every one of those close states -- that's a fair point. She's winning almost all of those close states by two, three, four points. It's all within the margin of error. And Trump has shown the ability to do better than what the polling shows.

That said -- she's got a three or four point lead nationwide. She's got probably about 320 Electoral College at this point if the election were today. But Trump absolutely has the capability to win because he's on the public's side on more issues than she is.

His challenge is can he tone it down and I don't necessarily believe he wants to. I think he believes that what got him at this point --

BARTIROMO: And it did -- that is.

LUNTZ: But the problem is what wins the Republican nomination does not win over Independents or conservative Democrats. This is a very different electorate.

MCDOWELL: Frank -- just really quickly -- in those swing states where Trump should be leading at this point, at least in some of them. Is the critical thing advertising because he has not been advertising? The advertising that's been done on his behalf is very minimal and it's been done by outside groups like the NRA. If he can start advertising that will help him in a place like Florida?

LUNTZ: It will help --

BARTIROMO: And that comes down to money.

LUNTZ: And it's not enough because he has to have an organization. She's been running for president now for 25 years. She's got the people on the ground.

He's going to need to build that in the next 100 days and that's very tough to do.

BARTIROMO: Ambassador Bolton, during the commercial break, said look I'm not concerned with the polls right now. He said I would like at the polls ten days after the Democratic convention. Let's see what the conventions do to both candidates.

Is that a fair statement? Are the conventions that important in terms of moving the needle ten days later?

LUNTZ: You have four opportunities to move the needle, the three presidential debates and your speech at the convention. So the very first key moment is that convention speech. Does Donald Trump change minds Thursday night?

BARTIROMO: Wow. Ok.

I have to ask you about your sneakers. You were with us in February. You had Donald Trump Converse sneakers.

LUNTZ: Yes.

BARTIROMO: So now that we are here at the Republican convention, what do you have for us?

LUNTZ: I'm trying to figure out which camera we got here.

BARTIROMO: You're sporting red, white and blue -- American flag.

LUNTZ: This one -- 17. This is Nike because Nike is one of the most pro- American. They do all of the Olympics but what I love about this is that people see the sneaker and they know that it's me. And so nobody expects me to wear a jacket and tie. This is how I really am. This is a costume. This is reality. Can I ask just one more thing?

BARTIROMO: Nice kicks.

LUNTZ: So you've got Nike. And then you've got the Hillary doll. And if you squeeze her --

"There's no security inquiry. There's no FBI criminal investigation."

BARTIROMO: Put it near your microphone.

LUNTZ: There we go. We can do one more here. You just squeeze it. Squeeze it one more time.

"The Clinton Foundation did absolutely nothing wrong".

LUNTZ: So basically I carry her with me everywhere I go. I don't think the Secret Service is too happy about it. I don't think my friends are too happy about it. I think I need a psychiatrist but she's adorable.

BARTIROMO: A lot of memorabilia this week.

BROWN: There is some great stuff out there.

BARTIROMO: Yes, there really is.

BROWN: It's incredible -- yes.

MCDOWELL: For a man who's built his entire career on words "adorable" would not be the first one I would choose.

LUNTZ: Well, she's fetching, how about that?

BARTIROMO: Frank -- good to see you.

LUNTZ: Thank you. Pleasure.

BARTIROMO: Thank you so much. Frank Luntz.

Remember, tune in to tonight at 6:00 p.m. where I will have special coverage live from the floor of the Republican national convention. Join us tonight, again, at 6:00 p.m. Eastern time.

Up next, Fiat Chrysler investigated by the feds for manipulating sales data. What it means for the rest of the auto industry, straight ahead.

And then the ever-pressing dilemma -- buy versus rent. And new study finds that renting homes is more expensive than owning it in 42 states. Straight ahead, we will tell you where it pays to be a home owner.

Back in a minute. MORNINGS WITH MARIA continues.

(COMMERCIAL BREAK)

BARTIROMO: Welcome back.

Brand new surveillance pictures showing a chilling scene in Baton Rouge. The cop killer stalked the officers, moments before his deadly rampage.

Fox News' Leland Vittert is live in Baton Rouge this morning with the new developments. Leland -- good morning to you.

LELAND VITTERT, FOX NEWS CORRESPONDENT: Good morning to you, Maria.

The word that police officers are using to describe Gavin Long's six days here in Baton Rouge before his killing spree is "hunting". He was looking for a place that officers frequented that he could carry out his rampage. He decided on a car wash that was linked to a convenient store not far from Baton Rouge police headquarters.

And as they look at surveillance pictures of Gavin Long moving and shooting and then taking cover they are trying to figure out where this former Marine learned his tactics. They are looking to his ties to black militant groups and black power groups to see if anyone had any kind of prior knowledge about his attack that killed three officers, injured three others.

One of the three who died, and police have been to piece the sequence together by these surveillance pictures, is Brad Garafola who is a 24-year veteran of the sheriff's department, a father of four known as a real family man. And as the gunfire broke out, he could see that one of the other officers was wounded. He ran toward that officer to try and save his life. He was caught in a hail of gunfire as he left cover and at least with -- what the police have been able to tell us from these surveillance tapes is that Garafola fired back at the suspect until the very end.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: They ran to the threat, not from the threat in attempt to protect and preserve life. They were ambushed by a man who was clearly targeting law enforcement. Deputy Garafola died attempting to get a fallen Baton Rouge officer to render aid. Deputy Garafola died as a hero, protecting and serving. So did the other officers.

(END VIDEO CLIP)

VITTERT: And Nicolas Tullier, a deputy also in the same department East Baton Rouge Parish Sheriff's Department, he is fighting for his life right now. One source saying it would be a miracle if he pulls through. He has two gunshot wounds in the chest.

And that's really bringing up one of the big issues here that we learned in Dallas and now we're learning in Baton Rouge. The high-powered riffles used in those attacks and used by Gavin Long are no match for the kind of bullet proof vest that police officers typically wear, Maria. And that's something police are now trying to figure out how they're going to deal with and protect themselves from these folks who are clearly out to kill police officers.

Back to you.

BARTIROMO: All right, Leland, thank you. Leland Vittert there.

A hacker called Guccifer 2.0 reportedly releasing another batch of documents from the Democratic National Committee meanwhile.

Cheryl Casone with that headline and the other stories in the news. Good morning -- Cheryl.

CHERYL CASONE, FBN CORRESPONDENT: Yes -- Maria. Good morning.

And this is happening, of course, during the RNC. "The Hill" says that a new document provided to them by Guccifer 2.0 describes some Democrats as quote, "wobbly on the Iran nuclear deal". They also have details of major celebrity donors such as director Steven Spielberg, actor Tom Hanks -- a lot of personal details. Now the hacker first sent DNC documents to "The Hill" last week. They included a research file on Sarah Palin.

Well, in business this morning, some potential legal trouble for Fiat Chrysler. Federal authorities from the Securities and Exchange Commission and the Department of Justice are investigating whether the auto maker inflated sales reports.

The inquiry comes after a group of Illinois dealers sued Fiat Chrysler back in January claiming that the company paid dealers to report false sales. Fiat-Chrysler says the lawsuit is without merit. It is cooperating with the investigation.

And finally this, if you can't decide whether to rent or buy, listen to this. Renting a home is more expensive than owning one in 42 states. So it's basically cheaper to pay a monthly mortgage than to rent. In New York the monthly rent of a single family home $3,295 a month. That's almost double the monthly cost of owning one -- all of this according to analysis by GoBankingRates.com.

On the other side it's cheaper to rent a home than to buy one in just eight states. So here you go renters -- Hawaii, Montana, Utah, Idaho, Colorado, Wyoming, Delaware and Oregon as well as the District of Colombia. Maria, New York prices for a single family home to rent. There you go.

BARTIROMO: Good info there, Cheryl, thank you.

We are going to take a short break.

We want to check markets before we go. Futures pointing to a lower opening this morning. Stocks are pulling back from record highs although we are well off the lows of the day. As you can see it's really a flat situation with the Dow looking down ewight points.

Up next we are waiting for a slew of earnings reports today -- Goldman Sachs among the big names reporting before the opening of trading this morning.

And then still to come, Hillary Clinton out with a new ad attacking Donald Trump's record with small business owners. More on the escalating fight between the candidates straight ahead.

We're coming to you live this morning from the Republican national convention in Cleveland.

Stay with us.

(COMMERCIAL BREAK)

BARTIROMO: Welcome back.

Today's theme at the Republican national convention is "Make America work again". And Hillary Clinton is out with a new ad to challenge Donald Trump's record as a jobs creator and his relationship with small businesses.

Here's a snipped.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I think if Donald Trump becomes president it's going to be every man for himself. He has no plans for doing anything that's constructive for anybody except himself. We are going to suffer, that's what I sad. The little man's going to suffer and the whole country is going to suffer.

(END VIDEO CLIP)

BARTIROMO: I want to bring in Grover Norquist right. He is president of Americans for Tax Reform. Grover -- good to see you. Your reaction to that ad.

GROVER NORQUIST, AMERICANS FOR TAX REFORM: Well, it's just sort of a nasty comment. It doesn't talk about what Donald Trump's real economic policy is. He's put it forward. It's written down. The tax plan he has would take the corporate rate which is 35 percent in the United States, plus 4 percent state tax -- really 39 percent. The European average is 25 so we are not competitive with the rest of the world on how we tax businesses.

He takes 35 down to 15. That puts us below China finally, below Canada. It's a lower tax than most of the European countries and it would really make us much more competitive than we are today. I think it would bring growth from the very lame 2 percent we've got now, less than 2 percent under Obama up to 4 percent which is what we had under President Reagan and that makes all the difference on jobs.

BARTIROMO: Ed Rensi -- you're a business guy, what do you think?

ED RENSI, FORMER MCDONALD'S USA CEO: Well, I think it has to be done. There's no question about it, Maria. The oppression of taxes stifles growth. And a lot of people that are uninitiated or don't understand this stuff, think the money goes into the pockets of the corporate executives or some place mysterious. It goes to the shareholders. It goes to innovation. It goes to development. It goes to scaling business.

BARTIROMO: Back in the business.

RENSI: It goes right back into the business. It's more efficient in business than it is being wasted in government. Plus we have all this money overseas that we could be bringing back here in an intelligent fashion and reinvesting in this country.

NORQUIST: Well, Trump moves to a territorial system rather than a worldwide system. Most countries have territorial meaning, you tax income once in the country it's earned and then you can bring money that you earned in France back to the United States without paying a penalty. We tax people for repatriating resources. That's crazy.

MCDOWELL: How do you craft a speech that reaches every American tonight regardless of the person who is giving it that sends that message? So you don't get lost in the technical points of corporate taxes and repatriation of corporate taxes. Because that's really the goal tonight as to why are Republican economic policies better for you at the end of the day than those of the Democrats.

NORQUIST: One way to put it is if we had grown during the recession Obama inherited, the way we grew after the Reagan '82 recession which was 4 percent rather than 2 percent there would be 14 million more people working today if we had Reagan growth instead of Obama growth. That's jobs.

If you talk percentages you might lose some people. But 14 million jobs don't exist in the United States. There are 14 million families -- dad, mom, brother who doesn't have a job because we follow tax and spend politics rather than what Trump wants to do. I think 14 million is a big number and explains how unhappy a lot -- why people are so grumpy about the economy.

BARTIROMO: And every single poll says the economy is the number one issue. But you have to resonate -- you have to make sure the talk resonates with people. The constant pushback on his tax plan, which it's true, you go from 35 percent to 15 percent of corporate tax rate you have to believe that's going to move the needle huge on the economy.

However, how do you pay for it?

NORQUIST: Growth? I mean the key thing -- if you grow at 4 percent instead of 2 percent over a decade the federal government gets more than $5 trillion in additional revenue just from growth. Not raising taxes but economic growth.

So the best way to pay for tax cuts is to have tax cuts to give you growth not just growth much of it pays for itself. $5 trillion, you can cut taxes a lot and if you get $5 trillion worth of growth, that's progress.

RENSI: I think Dagen asked an important question how do you in a speech convey this to the grassroots voter --

BARTIROMO: Right.

Rensi -- a very difficult matter in one speech, I think the way Grover is talking about is there's a right way. Every CEO in the United States ought to get up on the pulpit and start talking about this tax rate and how it's killing their business.

BARTIROMO: And what does it mean to them?

RENSI: To their employees and to their customers.

BARTIROMO: Compare, real quick, compare this plan with Hillary Clinton's tax plan.

NORQUIST: Hillary has offered $1 trillion in higher taxes over the next decade. She spelled out three different tax increases that will do that. She's talked about attacking independent contractors. She said -- her words -- crack down on independent contractors making it more difficult for Uber drivers and all sorts of other independent contractors to function.

That would throw another monkey wrench into the economy. A lot of people out there working to show you kind of the independent contractor --

MCDOWELL: Every Uber driver I've had whether it's East Coast or here in the last month, that is their second job. It might be their second part- time job. Some people work full-time jobs and then they drive Uber because their wages have not gone up in the past seven and a half years.

NORQUIST: There are 580,000 Uber drivers now -- 580,000. That's a voting bloc.

BARTIROMO: Wow.

NORQUIST: There are 18 million people who use Uber. What Hillary wants to do, cracking down on independent contractors, basically makes that not legal, not possible.

RENSI: I think she's got a philosophy that says government knows how to spend our money better than we do. And that policy has failed. You can see it today, less than 2 percent growth in the U.S. It's awful. We have to change this.

BARTIROMO: All right, we will leave it there.

Grover -- good to see you.

NORQUIST: Good to see you.

BARTIROMO: Thanks so much. Grover Norquist there.

And join us tonight. The special coverage kicks off at 6:00 p.m. Eastern. I hope you will join me for special coverage, live from the floor of the Republican national convention as the main prime time speeches kick off. That begins at 6:00 p.m. Eastern, followed by Lou Dobbs and Trish Regan at 9:00 p.m. -- live.

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