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Also this morning, Goldman Sachs better than expected, along with number of companies within the banking sector that reported better than expected earnings. The consumer price index just out a moment ago, rising 3/10 of 1 percent in September that was in-line with expectations. And compared to a year ago, prices are off one and a half percent. In Europe, gains across the board, take a look. The tone was set in Europe this morning, and we continue to see money moving into stocks throughout the Eurozone, up better than 1 percent of 1.5 percent. And in Asia, overnight, stocks there higher as well. China and Hong Kong the best performers, Shanghai Composite and Hang Seng index up about 1.5 percent.
Internet security becoming a major concern in the wake of hack attacks compromising users accounts and information, companies and government agencies now turning to selfies to a solution to authenticate users and protect against security breaches. Joining me right now is billionaire and Netscape co-founder, Jim Clark, known as an internet genius, he's also the founder of CommandScape, Shutterfly, Silicon Graphics, Healtheon which merge with WebMD, and it is good to have on the program, Jim.
JIM CLARK, NETSCAPE CO-FOUNDER: Thank you, Maria.
BARTIROMO: Thank you so much for joining us. So, look, characterize where we are right now before I go into the rise in security breaches and what's been going on in terms of the worry over security, how would you characterize what you've seen over the last 20 years.
CLARK: Recently, there's been a spade as you know of disruptions, the DNC getting e-mails tapped and small businesses owners getting their machines encrypted so they couldn't do business and having to pay bitcoin ransom, and there's, you know, massive password theft at companies like Yahoo. So we're seeing it in a lot of different places. And then it all -- and one way or another points to this deficiency, I call it -- that we call a password.
BARTIROMO: And you wrote an op-ed on this, which is quite interesting. Because a long time ago, where over the last -- I'd say 20 or 30 years, I might have asked you where's the growth in the internet, and you could say, you know, retail, you could say cloud, you could say social media, but now it feels like the growth is in securing our data.
CLARK: Yeah. Well, ironically, back when we created Netscape we invented a mechanism that allows you not to use passwords, it's used daily, but it's used to authenticate a web site. So a password is a form of authentication. That happens to be a very weak form, but when we invented this protocol called transport layer security, TLS, it made it open, it became adopted as a standard. It's used everywhere now. But this particular standard allows you to authenticate a user just like you authenticate the -- the site or the web site.
BARTIROMO: How do you do that? Because hackers are able to generate and penetrate, rather, passwords gain access to all kinds of, you know, sensitive information that we have on the internet. Is it like -- do you like putting your eyes, your fingers, I mean explain how this password if it will work because it's not your average password.
CLARK: Yeah. You need to think of a password as two different things, one type of password gives you access to your device, your phone. And then, there is what I call a network password, it gives you access to a site. It's the network password that's the most -- the biometric kind of security can get you and your phone, but you don't want to use it for access to a site because that requires that the site have a copy. So the passwords are deficient because the amount of shared secret. And, you know, there's no - - old joke, the secret is something you tell one person at a time. And the thing about it about a secret, this particular secret you don't want anyone to know. So the mechanism built into this -- TLS that I mentioned, already allows to you use what's called a public key certificate. I'll just call it a certificate here.
The certificate concept has been around for years. It's used to you authenticate and make sure that you're connected to Google, make sure your connected to Yahoo. Any site you go to has a certificate. And that certificate is issued by certification authority. There's a complete infrastructure for dealing with that kind of issue. It's a kind of thing, you can share with everyone because it's signed, digitally signed, it's authenticable, irrevocable, it's a mechanism that -- I don't need to get down to details because it's going to go beyond everyone quickly, but it's used today to authenticate every web site you visit. All I'm saying is the exact same mechanism could be used to authenticate users, so users need to be issues a certificate. Then they don't need a password. And this certificate gets shared with everyone because it can't be altered, it can't be messed with. If you mess with it, it's no longer valid.
BARTIROMO: Do you think we'll see an adoption.
CLARK: Yes, I do.
BARTIROMO: . of this.
CLARK: I think it's the most wildly used security technology in history. It's the most highly debugged, it's been with us for 20 years, but it's just not being used to authenticate users It's only to use to authenticate sites. So if you start authenticating users the infrastructure exists today to do it. So, I think it's a natural. I'm doing it in my new company.
BARTIROMO: It makes a lot of sense.
CLARK: Yeah.
BARTIROMO: What are we think about, you know, even government facilities and entities getting -- falling prey to hackers. You've got the Russian government suspected of hacking into state election systems right now, potentially able to influence the election. The CIA reportedly planning to retaliate now. What should government be doing about this?
CLARK: The real problem, you need to use this type of security. When you issue someone a certificate, they're able to -- you don't have a backdoor, you don't have a trap door to get the information that they might encrypt using that. So the government gets -- needs to get out of the way and let that happen. The government uses it, by the way, to give -- give employees, government employees, secure ID card, secure card to get them into places. And so, I think the government really needs to let security happen. If you've got a backdoor somebody else can use it.
BARTIROMO: Tell me about CommandScape because I think today more than ever before we're vulnerable on so many fronts, it's not just our computers in front of us or our phones that's in our pockets, but our washing machine and our alarm system, and CommandScape is helping in terms of that
CLARK: Where do I think the alarm -- it's commercial in home automation kind of product, commercial home security, and it is essentially addresses surveillance, unlocking doors, opening things, giving permission to people to open things, turning lights on and off, adjusting your heating, it's a whole specter of things under one umbrella all wrap in the security envelop with a certificate. So it doesn't require someone enter a password or anything like that, they just go to their site. The protocol is automatic on the internet. We'll take care of making sure it's the right person to have the right.
BARTIROMO: I thought it was really interesting that Jim Comey comes out and he said, look, put a cover on your computer at home, put a cover, I mean, you know, an exercise bike, whatever it is that people can penetrate they will try.
CLARK: Well, there's so many ways that people can penetrate these days, especially the so-called home automation, wireless devices, there's all manner of products being sold today that's insecure, literary insecure, not even secure, no attempt at all. So, were in a very early stages of that, but it will come about that all of your data has to be protected with this kind of mechanism because passwords just aren't the way to do it.
BARTIROMO: Is there any way to know for sure that it was Russia who's doing the hacking recently? I mean, whether it's the Democratic National Committee e-mails or trying to get involved in our election. I know the bad actors. We've said for a long time a Russia, China, but do we know for sure?
CLARK: There's a trail of bread crumbs from the same kinds of places that have left trail of bread crumbs we know that Russia was involved. So all the circumstantial evidence points to them. I'm not in that business so I can't say. But, I trust that people are saying the right things, this is not -- this isn't made up, people don't make this up for political reasons.
BARTIROMO: And real quick, Jim, you've been such a genius in this space. I want to ask you where you see the big thing next, I mean, is it securing this stuff, I mean, that's why you created CommandScape, obviously.
CLARK: Well, security, generally, is certainly the big new thing. You've got to get out of passwords, there's no question about that. But the next big thing overall, well, you know, you always think the thing you're doing is going to be a big thing. I'm involved in -- the entire, let's say, the entire security industry. I'm not talking about cybersecurity, no, I'm talking about building security and that sort of thing -- that industry hasn't been -- nothing new has happened in the last 15 years, 20 years, 25 years.
BARTIROMO: Long run.
CLARK: . it's been a long time. And so, I think that there's going to be quite a revolution over the next 10 years. And the general security space and then cybersecurity overlaid on that, so that you don't have people being able to tap into your digital home video cameras, or people being able to abscond with your camera and use it for service attacks and things like that. So, we're going to see a lot of security activity.
BARTIROMO: Fascinating stuff. Jim, we so appreciate your time this morning.
CLARK: Thank you.
BARTIROMO: Thank you so much. Jim Clark, joining us there. Coming up, Netflix stock putting a show on for investors this morning. Stuart Varney will weigh in on the streaming giant huge after hours surge, it's up 20 percent right now. Then, Apple is looking to make Siri smarter, the company big move to improve artificial intelligence, that's next.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. We're watching Netflix today, stock is up 20 percent. The streaming giant company reacting to expectations that were lower and they had huge subscriber growth when they reported earnings. Stuart Varney joins us now with more. Stu, good morning to you.
STUART VARNEY, VARNEY & CO. HOST: Well, good morning, Maria. I'm afraid to say I've got egg all over my face this morning. I have to admit it, Maria. On the show yesterday, when we're walking up to the earnings report, I was suggesting that maybe Netflix is past its prime, maybe it's a has-been. I wasn't making a forecast about the stock. I was trying to put the company in the perspective of the streaming industry. So I was suggesting that, you know, maybe it's past its prime, it's a thing of the past. How can I have been so totally and completely wrong? You may ask. Well I am going to do a mea culpa because I was totally wrong. Look at Netflix as it's going to be today, that's yesterday's close, it was down on the day. After the closing bell as you say, Maria, stunning earnings report, massive growth in subscribers, and look at that, we've got a gain of what, 20 percent for the stock. When was the last time that a company of that size went up 20 percent just like that? I see it with Apple. I think I saw it with Facebook and Amazon in the past. But now we've got Netflix doing it. And I have to tell you, Maria, I'm very sorry, I was totally wrong in my perspective yesterday. But if you still want to watch the show today, I'll start in 13 minutes.
BARTIROMO: Of course we want to watch the show, Stu. Look, this is a moment in time where they actually did take market share.
VARNEY: Yeah.
BARTIROMO: . from some of the traditional out there. And it's a question about when the competition gets so much around them that they won't be able to have that kind of a runway. So it's a fair question, Stu.
VARNEY: Well, it was a fair question, I've just didn't realize that their subscriber growth will be so extreme.
BARTIROMO: Yeah.
VARNEY: That their shows would be so successful, and that they would budget $6 billion for content just next year. I didn't see any of that coming, obviously.
BARTIROMO: There you go. All right. We'll see you in about 15 minutes, I know you'll.
VARNEY: Sure.
BARTIROMO: . talk more about it, Stu.
VARNEY: You got it.
BARTIROMO: Thank you. Varney & Co., begins top of the hour right after Mornings With Maria at 9:00 AM this morning, we'll be right back. We are just about 45 minutes away from the opening bell. Dagen McDowell now with a look at the stocks on the move, Dagen, over to you.
DAGEN MCDOWELL, FOX BUSINESS NETWORK: More stocks, maybe Stuart will say I'm sorry for this, I don't know.
(LAUGHTER)
MCDOWELL: We're watching shares of Apple, the company reportedly making a move in effort to improve Siri. Apple has hired a professor from Carnegie Mellon University as its new director of A.I. research, artificial intelligence research. The position is a first for Apple. Moving on to Amazon, the company looking to redefine the family photo album. Amazon launching unlimited photo storage for family and friends called family vault. The service is free for prime members and can be shared with up to 5 family members or friends. Family vault comes with five gigabytes of storage, and so now you can share more annoying photos of your family on Facebook with everyone. Up next, start your engines from 30 different seat combos to valet service, Maria Bartiromo is taking you under the hood of Ford's brand new Lincoln Continental. I do miss those suicide doors though. We'll be right back.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. The Lincoln Continental, an American name say has evolved through the ages. Now, Ford Motors is turning the ignition on to the new 2017 model of the sedan. Joining me right now is the president of Lincoln, Kumar Galhotra. Kumar, good to see you.
KUMAR GALHOTRA, LINCOLN PRESIDENT: Good to see you.
BARTIROMO: Thank you so much for joining us. The car is absolutely gorgeous. I want to hear why it's so special.
GALHOTRA: Well.
BARTIROMO: This is one of these cars that you say it's not my father's Lincoln. I mean, that's how long -- this car been on the market, right?
GALHOTRA: This car is, you know, continental always stood for the best Lincoln has to offer. And it's a very iconic name, very emotional name for the American public. So we want to bring it back in this fantastic car. And the whole car is designed around the experience you want to have with the car.
BARTIROMO: Tell me about that. What do you mean experience you want to have with the car.
GALHOTRA: Well, we don't design technology for the sake of technology anymore. We're designing how we want our customers to experience the car. What should the car do as you're approaching the car, you know, to light up softly. It should -- you know, welcome with you a welcome mat.
BARTIROMO: Oh, wow.
GALHOTRA: What's the experience as you touch the door handle. As you notice, a very unique door handle, opens with just a very gentle touch.
BARTIROMO: Oh.
GALHOTRA: And you don't have to slam the door shut, it just quietly hinges itself close.
BARTIROMO: Very smooth. Now, the model originally faced an early recall because of that head lamp issue, right? So give us an update on the safety compliance of this car.
GALHOTRA: So the car is five-star in terms of safety. We did have a minor issue on the recall that you mentioned as well, 1900 Continentals affected, about 300 of them are in customers hands and we're replacing those lamps as quickly as possible.
BARTIROMO: Where is the growth do you think for this car? I know Lincoln sales in China have nearly tripled. Do you look at the growth as an American mainstay or do you look around the world for really the next big boost for this company and the car.
GALHOTRA: The two major markets for us are the United States and China, and of course with several other markets as well. As you mentioned, we're growing very rapidly in China. And this particular car is very important to China and very important to the U.S. as well.
BARTIROMO: So let's see what it looks -- just go like this. Very, very smooth.
GALHOTRA: Very smooth, yeah.
BARTIROMO: Now, one of the things that we have been promoting and teasing is that the seat goes 30 different ways?
GALHOTRA: That's right.
BARTIROMO: Can you show us?
GALHOTRA: Yeah, absolutely, so.
BARTIROMO: Should I get in?
GALHOTRA: Well, it's probably better to get on in -- to get a little feeling of the seat.
BARTIROMO: OK. Here we go.
GALHOTRA: The seat, you know.
BARTIROMO: Wow.
GALHOTRA: . it's more than a place just to sit on. It, you know, keeps you warm in the winter, cool in the summer.
BARTIROMO: Yeah.
GALHOTRA: . massage for the long drives. And independent extension, so notice your right leg is at resting in a different angle than the left one, so the car can adjust each -- can support each side perfectly, individually.
BARTIROMO: OK. I mean, 30 different places, in other words, if I come in and my husband was in it earlier, I can just put it on what -- press a button that's already programmed to the way I want my seat.
GALHOTRA: Absolutely. You push one of your memory button, your memory button is number one and it forms your body perfectly.
BARTIROMO: What are the other -- 29, you know, place -- it's 30 place in 30 different places for the seat.
GALHOTRA: It's not so much about the number of ways it moves, Maria. It's how perfectly it can fit your body.
BARTIROMO: Right.
GALHOTRA: So, it's the upper seat that moves, the seat cushions move independently, the headrest moves, but it's all to provide that great experience to fit your body perfectly. And actually removed fatigue rather that cost it.
BARTIROMO: I shouldn't slam because it will just -- so slowly.
GALHOTRA: Yes. Very effortless.
BARTIROMO: Beautiful car.
GALHOTRA: Thank you, yes.
BARTIROMO: What are your expectations?
GALHOTRA: Well, we expect to grab our fair share of the market in this segment in the United States, and tremendous growth in china.
BARTIROMO: Great. Kumar, good to see you.
GALHOTRA: Good to see you.
BARTIROMO: Congratulations.
GALHOTRA: Thank you for having me.
BARTIROMO: We'll be watching. Thank you so much. We'll be right back.
(COMMERCIAL BREAK)
BARTIROMO: All right. Let's see final thoughts with me down here and the team upstairs. Tony Sayegh, what are you thinking about?
TONY SAYEGH, REPUBLICAN STRATEGIST: Let's see if the media covers these new revelations from WikiLeaks about potential pay-to-play, collusion from the State Department and the FBI made on the Clinton State Department.
BARTIROMO: Yeah. We'll be watching that. Michael Block?
MICHAEL BLOCK, RHINO TRADING PARTNERS CHIEF STRATEGIST: Core CPI, core inflation came in a little weak this morning that could help keep the Fed on hold in December. Marty Feldstein said they could be going December, I say no.
BARTIROMO: OK. Yeah, he did say that. Dagen.
MCDOWELL: Read the Wall Street Journal today. Voter enthusiasm plunging among young people and African-Americans. That does not vote well for Hillary Clinton.
BARTIROMO: Wow.
MCDOWELL: . there you go.
BARTIROMO: Yeah. They're stressed out, Dagen, right, by this election.
MCDOWELL: Tuned out, unfortunately, but not the debate. We must tune in to the debate tomorrow night.
BARTIROMO: We'll be there live tomorrow and Thursday, everybody. Join us for our live coverage. That will do it for us. Stay with Fox Business. "VARNEY & CO", begins right now, Stuart, over to you.
END
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(Show: MORNINGS WITH MARIA) (Date: October 18, 2016) (Time: 07:00:00) (Tran: 101802cb.231) (Type: SHOW) (Head: Interview with Rep. Michael Burgess; Female Officer of Chicago PD Beaten by Suspect; Interview with Martha Stewart; Macy's Thanksgiving Opening; New Unisys System; Ford Temporarily Stops Production) (Sect: News; Domestic)
(Byline: Maria Bartiromo, Dagen McDowell, Cheryl Casone; Jared Max )
(Guest: Michael Block, Rep. Michael Burgess, Tony Sayegh; Martha Stewart, Bill Searcy)
(Spec: Politics; Media; Congress; Insurance; Holidays; Retail Industry; Technology; Police; Business; Police; Elections; Automotive Industry)
(COMMERCIAL BREAK)
MARIA BARTIROMO, FBN ANCHOR: Good Tuesday morning, everybody. Welcome back. I'm Maria Bartiromo. It is Tuesday, October 18th.
Your top stories right now at 7:00 a.m. on the East Coast.
A bombshell report this morning weighing on the Clinton campaign just before the final debate. New documents reveal a State Department official tried to convince the FBI to declassify some of Clinton's e-mails.
Donald Trump went on the attack.
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENTIAL NOMINEE: It's very disappointing. I mean when you see that and you'd say what's the purpose of holding (inaudible) - - you would think you hold these hearings frankly immediately. This is serious stuff. This is big stuff. This is Watergate.
(END VIDEO CLIP)
BARTIROMO: The very latest on the race for the White House coming up with now 21 days until election day -- coming up.
An ambush on police officers at a Starbucks -- the dramatic scene as the suspect's gun jams. We've got the details coming up.
Samsung helping Galaxy Note owners turn in their phones at the airport -- the latest attempt for the smart phone maker to get the devices out of people's hands and get this behind them.
A sign of a slowdown in the auto sector to report -- Ford is sopping production of its top selling F-150 pickup truck. What it means for the broader economy.
And it's another busy day on the earnings calendar. Checking markets -- we're expecting a higher opening for the broader averages today. The Dow Jones Industrial average up about 68 points; the other averages also higher. Trading up on better-than-expected earnings -- we are in the of the third quarter earnings season.
In Europe gains across the board right now. As you will see, up 1 percent to 1.25 percent on the major averages in the Eurozone.
And in Asia, stocks there higher as well, best performers in China and Hong Kong. The Shanghai composite and the Hang Seng up about 1.5 percent apiece.
Vladimir Putin, the new calendar model. The official calendar features the Russian president hitting stores -- more of the pictures that you want to see -- coming up.
All those stories coming up this morning. And joining me to talk about it: Fox Business Network's Dagen McDowell, Rhino Trading Partners' Michael Block, and Republican strategist Tony Sayegh.
(CROSSTALK)
DAGEN MCDOWELL, FBN HOST: once in a blue moon you get a little glimpse of what morning TV is like. This is my makeup bag. I was fixing my face.
BARTIROMO: I'm laughing about the Vladimir Putin calendar.
MICHAEL BLOCK, RHINO TRADING PARTNERS: Stockings covered, problem solved.
MCDOWELL: You know what, without makeup, I look like Vladimir Putin.
BARTIROMO: Yes, right.
MCDOWELL: That's how we attach those two topics.
BARTIROMO: We got a lot of stories to talk about this morning.
Coming up, Texas Congressman Michael Burgess is with us -- Burgess; founder of Martha Stewart Living Omnimedia Martha Stewart will join me here in the studio, and the cofounder of Netscape, the Internet genius himself Jim Clark is with us this morning; plus the president of Lincoln, Kumar Galhotra joining us as well.
So stay with us for a big hour, coming up.
New developments surrounding Hillary Clinton's private server meanwhile; they surfaced just one day before the third presidential debate in Nevada.
John Roberts in Vegas right now with the very latest. John -- good morning to you.
JOHN ROBERTS, FOX NEWS SENIOR NATIONAL CORRESPONDENT: Maria -- good morning to you. You know, Donald Trump has been looking for a topic on which he can change of subject and away from the allegations that had been dogging him for the past week now. And he may have just found that something to try to capitalize on at tomorrow's final presidential debate here at the University of Nevada at Las Vegas.
And it's this idea that we found out from the WikiLeaks latest dump that Patrick Kennedy, the undersecretary of State at the State Department may have offered a quid pro quo to the FBI giving them some slots and positions overseas in exchange for changing the classification of some of Hillary Clinton e-mails.
Donald Trump went off on that last night at a big rally in Green Bay, Wisconsin. Here's part of what he said.
(BEGIN VIDEO CLIP)
TRUMP: Hillary even got the questions and answers in advance of a major debate. How do you do that? And think of it. Nobody made a big deal. Nobody even knows about. She got the questions in advance to essentially a debate.
Can you imagine -- no, no, no, no -- can you imagine if Donald Trump got the questions in advance? You know what they'd do? They would reinvent the electric chair. That's what they'll do.
(END VIDEO CLIP)
ROBERTS: Well, that wasn't exactly what we were looking for -- Maria. The piece that we were looking for was Donald Trump saying that these revelations constitute a crime, corruption at the highest levels. He said this is as bad as Watergate.
He's also calling for Republicans to launch an investigation into this right away in Congress. And in an interview with our Carl Cameron last night, he was actually critical of Republicans for wanting to put it off.
Here's what he told Carl.
(BEGIN VIDEO CLIP)
TRUMP: I think it's crazy what's going on. It's totally illegal. It's a criminal act. It's a crime and I hear the Republicans are going to hold hearings after the election. Why would you hold them after the election? You want to hold those hearings before the election. But this is a criminal act and it's incredible that they can do this and get away with it.
(END VIDEO CLIP)
ROBERTS: And Maria -- this is an issue that he may actually be able to get some traction on. It's front page news in both the "New York Times" and the "Washington Post" today. But in order to get to this issue tomorrow night at the debates he needs to have a very good answer about all of these allegations leveled at him by all these women who claim that he treated them inappropriately. His campaign is working on an answer for that. We'll see if they come up with that tomorrow night -- Maria.