stuart: that's 20 seconds early, i'm not sure i can do that. maria: i'm trying. stuart: i'm going to count down the clock for the next 15 seconds. maria, thank you very much indeed. see you tomorrow. all right, trump, big lead, political correctness exposed. the president gets isis all wrong and how about a benign interest rate hike? do we have a lot to go at today or what? good morning, everyone. start with trump, how about this? trump at 41% support after his muslim comments. how about his doctor who says the donald is in astonishingly excellent health and boxer mike tyson looks him, too, and there's another debate tonight. political correctness strikes again, the fed did not check the jihadist facebook postings because we didn't want to defend anyone, 14 dead. president obama losing credibility, he reports process on isis and only a handful of gitmo guys return to the battlefield.

very few agree with that assessment. and this is rate hike week. we're hearing about a benign hike, largely symbolic, stocks are going up this morning. so welcome to the show on this, the fastest growing cable channel of television, that's us, fbn. "varney & company" is about to begin. ♪ >> why don't we get straight at it with this, stocks set to build on yesterday's rally, ahead of all expenses interest rate hike. fiscal columnist liz peak is here. i'm hearing that it's going to be benign, a very small hike, it's purely symbolic, because of that we'll get a great big rally by the end of the year. >> why even do it? because janet yellen has got ter heff into a box and promised there would be a rate

hike in order to get us inching back toward normalcy, which is certainly higher rates than we see today. i think it's going to be about the messaging. does she come out and say, yes, we are posting 1/4 of a percent, which is probably wh what it will be, a rate hike and then we'll see or this is a series of rate hikes. it's very important, well, we'll see because i think there's uncertainty, what we've seen is the squabbling amongst the board members has been terrible for markets, tremendous uncertainties. so she may want to plot a path, even if it's very gradual. stuart: i'm sure she's not going to come right out and say, this is it, boys, starting right now rates are going like that. ashley: she'll say it in a vague way, hints at further rate hikes next year as long as the economy cooperates. stuart: so, you're right, liz, excellent. lets owe move on to terror, a

different subject. the government would not and did not check the postings of tashfeen malik when she applied for a visa in america. story, ashley. ashley: because it's apparently secret u.s. policy they are not to check social media, for two reasons, fear of a civil liberties backlash and bad public relations. what's insane about this, tashfeen malik, the right of farook, was very public in her acknowledgment of the radical islam and supportive of the martyrdom that comes with it. it's out there publicly on-line and yet, the u.s., not only doesn't check it, but is not allowed to. back in 2014, homeland security was told, look, i think maybe we should look at social media and give people a clue as to what people are thinking. stuart: if i apply for the job with a private sector with an employer, the first thing that person does, what's he been saying on facebook, what kind of guy.

ashley: people have lost jobs because of what they said on social media. >> that's where they are, this is all over social media recruiting and so forth, so that would be the obvious place to look. stuart: where is facebook? if she was making these kinds of posts don't you have an algorithm that spots these kind of things. >> said it's not their job to flag terrorist activity-- yes. stuart: we move on. donald trump, he has crossed the 40% threshold, this is a new national poll. it gives him the largest lead that he's held in any survey so far. 41 trump, next in line, cruz at 14%. liz, that poll was taken after trump made his muslim comments. >> yes, and i don't think it should be read as a validation of his anti-muslim stance. i think it should be read as he's tough on terror, which ever since the paris attacks, trump has come out with one idea after another, how to shut

down the infiltration of this country by isis and how we can go after them abroad and the republic -- and the public is responding warmly because obama has left us with nothing. ashley: he just says it. >> yes, that's exactly right. stuart: where nobody else wishes to go, in a way that makes him sound harsh, but dramatic and direct. >> exactly right. stuart: and people like it. >> people want leadership. that's a cliche, but people want leadership and trump is out there. stuart: if it's trump versus hillary, does hillary win? >> i think she does. stuart: okay. ashley: yes. stuart: okay, moving on. conservative columbia dee hayes slamming the president over the release of guantanamo bay prisoners, roll at that tape. >> what we saw from the president there, was an aggressive breath taking dishonesty. the president said really they've released low level individuals. again, unequivocally false.

what the president did there was lie and lie repeatedly. stuart: that's strong language, the use of the word lie is a strong statement. joining us is general tom mcnerney, would you deal with what the president said about isis that we're winning or making progress against isis. is that accurate? >> no, it isn't, stuart. we are losing and we are not making progress. and steve was correct, in what he said. stuart: then why is the president going out and publicly saying we are making progress against isis? why is he saying this? if almost everybody else, including the top military guy is saying that's not true. why does he go out there and say this? >> that's above my pay grade, but let me say this, we released five four-star general equivalents for a private, bergdahl, and the fact is, can you imagine if president roosevelt released five field marshals back to hitler during

world war ii? the allies and american people would have been in an uproar and why we are not in an uproar as american people, it confuses me. the fact is, this president and this administration is aiding and abetting radical islam. we should hold him accountable for the russian airliner that was shot down, for paris and for san bernardino because his actions are so feckless. stuart: that's gonna bit far, general. you can't hold the president of the united states for a bomb placed on board a russian airline. that's a very indirect path of responsibility. >> well, let me put it this way, it's indirect because of the-- he let isis metastasize and because they are in full-up mode doing everything they want in the iraq syria area they operate in. they reach out, they reached out to san bernardino, reached out to egypt and reached out to paris. those were isis actions,

stuart. who do we hold accountable for leadership in the global war dependence radical islam? this administration and this president must be held accountable. stuart: what is the morale or the opinion within the military? i know you've retired, but you must have contacts within active service members. what are they thinking? >> well, i can tell you, i was working indirectly for the secretary of defense under the carter administration and it is lower than the carter administration. they see, particularly the airmen, that we are not using our air power when 75 to 80% of the missions are not dropping bombs, we are not hitting the right targets, we're hitting empty warehouses, et cetera, at nighttime, and so we do not have a serious air campaign that could enable an arab ground force, composed of say, turkey, egypt, jordan, et cetera, to go in and defeat isis.

we are not doing any of those things. stuart: okay. general tom mcnerney, frequent guest, thank you for being with us. >> thanks, stuart. stuart: around the program today, we're discussing the president's stand on isis and also the release of gitmo prisoners, we're on it, all the way throughout three hours. totally different subject. the new "star wars" film, it's called "the force awakens". at its world premier last night, a lot of fanfare. jo ling kent has the full story if case you missed it. jo: it was a major hit. r2-d2, and 3 p 0, the original and the new cast members watched along with 5,000 guests in three theaters. pat 0swalt, it has the best final shot of any "star wars" film. stuart: does he appear in the movie?

>> he went to see the movie last night. stuart: he wasn't in it? >> ybl. stuart: i'm sorry, i'm digressing. as i understand it, the general reviews of those people who saw it last night, it was good. >> very good. stuart: they were not interested viewers, they were to some degree, independent guys. >> we saw celebrities and big fans and people interested in attending, but the real reviews will be on thursday night when it opens to all of us. stuart: if you watch it and come out and slam it, disney's not going to be pleased. >> that's true, definitely true. stuart: i interrupted, i'm sorry, continue with pete rose. >> pete rose is staying out of baseball. the commissioner rodman fred rejected the reinstatement because he continued to gamble while trying to get back in the mlb. that he would be a risk to the sport if he were allowed back in. and in parliament, an attempt

to measure the government to renounce deals with serbia and montenegro. the lawmakers were forced into another room and there was another can of tear gas. and they're protesting power to ethnic serbs in kosovo and a new border change. stuart: wait a minute, who brought the gas masks with them? >> apparently they were prepared. that was my question as well. stuart: that was a pretty good round. thank you. jo: anytime. stuart: that would make congress interesting. don't start. you could label this bizarre about trump and his doctor. he claims that trump will be the healthiest president in history, and the donald himself telling g.o.p. rivals, just give up, just drop out of the race. more on that in a moment. >> many of them don't have a chance, what are you doing, just go home and relax. go home and relax.

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>> we've got to watch this, a fire tearing through a 96-foot tall christmas tree outside of a california hotel. you can see it, it went up, boom, just like that. no injuries report and the fire was put out. the tree, i think, was a total goner. ashley: do you think? >> now this, donald trump has got some advice for the republican candidates who are lagging in the polls. you've got to watch this. >> there's so many people, and many of them don't have a chance, you say, what are you doing? just go home and relax. go home and relax. stuart: he has a certain style. joining us now, fox news digital politics editor cries stirewalt is smiling. i think it's down to three, trump, cruz, rubio, am i going

too far? >> december is december, we remember four years ago, newt gingrich was the man and he wasn't the man and these things happen and things change. rick santorum, was barely registering in iowa and went on to win. and i agree with your premise, it is trump, cruz, rubio, the question is once they-- as they say about any battle plan, it never survives the first encounter with the enemy. once they get to voting and things start happening, how does it shake out. stuart: if there's one other candidate who might break out, who do you think? >> if rubio suffers a blowout in the passing lane, chris christie is one you could look at. the establishment could get behind him. he might be the alternate for rubio. stuart: are you discounting bush entirely? >> oh, yeah, yeah. stuart: really? >> yeah.

stuart: oh, yeah, yeah, yeah really? >> if you spend more than $50 million and $10 million per poll point, this is not your year. i think, look, hillary clinton made jeb bush's candidacy possible in the sense that the legacy issue, if she was going to do that maybe he could do it. what jeb bush didn't understand, his candidacy made donald trump's candidacy possible, because it tapped into a rage of the republican base, how dare you try to put one more on us, even if it's destructive and damaging, we've got one, not you. stuart: i've got items for you on donald trump, a clean bill of health from his doctor. the quote from his doctor, if elected, mr. trump, i can state inequivocally, will be healthiest individual ever elected to the presidency. we hear him. and how about this from mike tyson, the boxer, hey, listen, anybody who was president of

the united states offended some people. does this add to our knowledge of trump as the candidates? >> it certainly adds to our knowledge trump, the universe of trump. and his doctors say that they're brothers from another mother. they are kindred spirits and this is the donald trump of gastroenterologists, there is no question this is a guy who has the trump spirit for the lower g.i. and general health of a human being. tice tice, probably likes the way donald trump has operated because mike tyson knows him from the boxing world and knows him from the fight promotion game, much like trump was successful in professional wrestling, he knows all of these folks so we'll probably see more of these. stuart: i think so you're the only other person apart from ourselves on "varney & company" who enjoys politics as much. >> if you don't like this, you're robbing yourself, this is too good. stuart: it really is priceless. chris stirewalt, a very serious

guy, he will be back at some.in t the-- sometime in the future. and angle merkel made a turn point on refugees, and she says multiculturalism is a sham. and then look at this at shanghai, alarming pictures from china and we've got them for you in a minute. ♪ smoke on the water, a fire in the sky ♪ smoke on the water ♪ the only way to get better is to challenge yourself,

and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around.

>> look at this, smog has engulfed the city of shanghai. officials warn children and elderly don't go outdoors and warning everybody else, don't go outside and exercisement just don't do it. the warning on pollution alert in beijinbeijing, that's how ba is.

angle merkel, multiculturalism, following that it's a sham. the challenge is immense, we will reduce the number of refugees noticeably. liz, what is happening here? liz: she's led the eu and europe in emitting a stream of over a million refugees into germany. her party is being hurt as a result. her polling of cdu party is down to 36% from 41% in the summer. she has to balance that now with a recognition in realism, which by the way, president obama doesn't do, about who these people are, what the threat is and clearly that multiculturalism is sort of code for we have to make sure that these people become germans. stuart: it's somewhat similar to america, isn't it? a million or two people. ashley: a million this year alone. stuart: almost all of them muslims and europe is now-- merkel is now saying, hold on a second.

ashley: they're going to start deporting soon if they don't already. they expect them to learn german language quickly and contribute to their communities and work life. it's very german. if you don't do it, you're auto. stuart: it's definitely a u-turn by angela merkel, open arms, welcome, everybody. ashley: she's appeasing those-- >> she's in a corner. ashley: she is. stuart: a mini rate hike from the fed, some are calling it a small move, the markets are appeased. and then bowe bergdahl now facing court martial proceedings and may end up spending the rest of his life behind bars. judge napolitano is on his way.

>> well, we're coming back a little early this morning, before the opening bell rings. we want to put everything in perspective because we're probably going to see a very solid triple-digit rally when the dow jones industrial average does indeed start and that will be in 30 seconds time. why are we going to see a solid rally? the word is tomorrow afternoon janet yellen will announce, this is what the pundits are saying, speculators, what they're saying, a tiny incremental move up for interest rates.

it will be purely symbolic, as the statement by janet yellen. which will be issued by tomorrow afternoon will be benign. therefore, this the stock market which opens in five seconds will go up sharply. it's 9:30 exactly and the market has opened. you watch this thing go up, yes, thank heavens for that. up 7 points, 10 points-- and now, oh, just hold on a second. i want to see this thing go up. down 27? what did i get wrong? >> futures were pointing up 150? can anybody explain this? >> they're opening the dow 30 stocks as one opens and another one opens, it changes the price, you'll see the market. ashley: it's up 34 now. there you go. stuart: you saved my life right there. >> you can't tell them you're going to open 150 and watch it burn. s lose your credibility.

look who is here, ashley webster, liz, and i want to go to you first. we hear that it will be a benign rate increase, very small, purely symbolic and that's why this market is up nearly 100 points. what do you say? >> what else could it be? it's got to be symbolic and it can't be based on economic evidence. it's a long waiting. the reason she's raising interest rates is relevance, it might be a truthful statement, not a benign statement. it's not because we've got a stronger economy and it's getting away from us. they'll use those figures to justify a rate hike. what's frustrating, we're talking about march and how many we are going to have next year. i can't believe that's part of the rhetoric. and let's get this on the way, they want to use it because they want to stay relevant.

stuart: now we're up 144 points we were expecting up at the opening bell. mike murphy, a small increase, purely symbolic, one of the reasons the market is up? >> one of the reasons the market is up. this is the best telegraphed rate move in history. yellen has been leading up slowly to this point. ashley: very slowly. >> what we need here's not in a zero interest rate environment. this is a major problem in the economy so i want to see them start moving rates higher. i think it's a good move and i think that financials are the way to play it. stuart: i've heard commentators on radio and tv saying we're in for a santa claus rally and break into new highs before the end of this year, that would mean the dow goes up roughly 1 1,000 points, comments, please. >> last time i was on you asked did i think we'd get to 18, we fell just short.

the i think we can start focusing on companies and earnings and i think the market can move to new highs. stuart: we're up 180 points as we speak, that's a solid rally. ashley: oil is up 1 1/2% at 38.24. stuart: that helps. ashley: it does. stuart: i hate getting technical, but i do have to talk about jofunds, and -- junk bonds, it's not a risk to the entire financial system, it's a limited risk, do you agree with that, scott? >> limited might be a little too small of a word, but i think that the guys i talked to are very active in that market and they've been buying as much as they can get their hands on as of late so i would say, yeah, it's probably a little more muted than the immediate i don't would like you to think it is, it still could be a problem. the guys i'm talking to are petting things will get better. stuart: liz, i said that banks

under dodd-franks are not allowed to invest in high risk junk bonds liz: they can't have it in their inventory under dodd-frank, that's derisking. the problem show, remember the august 24, flash crash, the market dropped dramatically and you were covering it and so was ashley. the regulators are afraid the high yield junk bonds with assets, investors can't redeem mutual funds raptly, they're worried that could spike the market down again. they're concerned with a similar problem with that. stuart: there's always concerns. i think it's time to get some individual stocks. look at this one, mcdonald's, another all-time high today. i believe that-- 118 i think is the all-time high. all day breakfast seems to be working. >> when we first talked about this, proof of the pudding. stuart: you're right. >> proof of the egg mcmuffin

liz: why do you say that. stuart: i can't believe breakfast would be that important. >> i thought people would leave mcdonald's for places like chipotle. that hasn't worked out. mcdonald's has done well and chipotle hasn't. stuart: sarcasm is a low form of wit liz: people want pancakes, you grew up with that. stuart: modi's says that oil is not going to move much higher up or down from where it is now. scott, i guess moody's is saying that we're at or close to a bottom. do you agree with that? >> well, you forget close to zero, we can't go much lower than zero the range. we'll be in the range for a while. some prognosticators said, but we're going to see that velocity of the down move slow down, but you know what?

there's no reason for it to take off either. being see just like we're going to so low rates a lot longer than we thought. we'll probably see low oil longer than we thought. stuart: that's what we're looking for, low oil for a lot longer. wal-mart, a new report says it will benefit the most out of all the retailers, from low gas prices. what do you say, liz. >> the security is finding that wal-mart customers who spend-- they're the crowd that spends most of their income on fuel. so when gas prices go down, wal-mart, they say at numura, they could benefit. stuart: wal-mart is back to 60. i remember they were in the 70's, but there you are. 3m cut their profit forecast, they say it's a slowing global economy. nicole, the stock price. nicole: it's 4% and close to 40 negative dow points. there are only three that have

down arrows. apple, caterpillar and 3m. industrial company, nobody understands when we say that, but make post-it notes to stethoscopes and others, and they're doing it because of the slow global economy. stuart: a big drop, 3%. we hear that one. thanks, nicole. this is a story that fast nights me. neiman marcus, when i was growing up, we used to read those, his and her submarines, i remember that from 1952 or something. [laughter] neiman marcus sales-- >> it was 58, i think. and it's down the first time in years. ashley: i think that a strong dollar has hurt, and that's hurt tourism and people buying.

and their website crashed on black friday and it was a terrible, terrible impact on people wanting to buy stuff on their website, that's not good for a company that's still private. wanted to go public back in august, but decided the market was too volatile. >> and wealthy customers, 40% of their business and the dollar so so-- it's not a bargain at all. okay. look at apple, please. morgan stanley, and anybody else. >> j.p. morgan chase, credit suisse, the crowd on wall street that's pessimistic about apple. where it was a year ago, january of this year. they're suddenly ratcheting down their expectations for iphone sales. stuart: are we prepared to say that the apple watch is dismal-- not a dismal failure, but ain't 0 wild success?

>> i think it's going to be the biggest christmas gift of the season. there's a new watch and when people realize what it can do, they think it's cool. don't write it off. apple has a boat load of cash on the books, when you see the analysts coming out and cutting targets, if apple is below $100 i think they'll buy back a lot of stock and that puts a floor in the stock so i'm not concerned about apple here at these levels at all. stuart: how about disney. the early reviews for the "star wars" movie, i'm told they're very, very good liz: that's right, actress gina davis was in the audience, said i love everything about it. may the mouse be with you. and disney is it going to roll out more movies after this one, four more expected. stuck to their old-fashioned traditional script for "star wars," and people are moving it. and the same number of cops covering this event as they did the oscars.

and essentially beat avatar, 2.8 billion in box office sales. it's going to be a dugo double-digit, double digit as in the billions. stuart: they have the same number ever police officer force as the oscars. >> may it be with you. stuart: if you were one of the celebrity elite, you can't come out and say, it's awful. you can't say that. >> no. stuart: disney would not be happy. >> and down 10% in the last couple of weeks. >> it's had a nice pullback. stuart: the voice of reason again. how about this with un, sirius xm, signs are there's a new five-year deal for howard stern. >> yes. stuart: how much is he making? >> sirius was paying him 100 million for services for four days a week. stuart: $100 million a year? he has a new deal?

>> they're not releasing the details. stuart: you just saw it. i think we'll leave it there. a very rich man. four days a week, not bad 100 million a year. stuart: it's tuesday morning, up 182 points and expecting a rate increase tomorrow afternoon and the dow is up 183 points, how about that one. thanks to all of our people for covering this opening event. bowe bergdahl, the guy we swapped for five terrorists, he's charged with misbehaving in front of the enemy. and an irate driver crashed his truck into an oklahoma hotel lobby. we'll tell you why he did that in just a minute. ♪

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>> you better check this out. there it goes. an angry guest smashed his pickup truck into a hotel lobby in oklahoma. there was a dispute with the bill. he calmly walked to the entrance, hands held high and he was arrested. two women behind the front desk narrowly escaped without serious injury. i think he made his point. you'll like this, tuesday, dow industrials are up close to 200 points. 198.90. 199, buy something, make it go up 200. thank you. 3m. [laughter] profit forecast cites a slowly global economy. it's down, it's a dow stock, if it weren't for 3m, the dow would be up 240 points. how about that. and then there's this. former army sergeant bowe bergdahl charged with serious

charges, desertion. the president is accused of the know properly informing congress before he released five terrorists from gitmo before getting bergdahl. where is the president constitutionally when he does this kind of prisoner exchange? he has absolutely and unfettered discretions to open prisons and close them and to move prisoners from one prison to another. he has the discretion under the constitution as the chief law enforcement officer of the land. as the chief commander of the military, he can exchange military prisoners which is what sergeant bergdahl was with others held by the american military. now, the congress has enacted legislation which says you want to take somebody out of gitmo you better tell us first so we have a chance to weigh in. that legislatures, even though it was some kind in distense by president obama is unconstitutional because he can't give away his power to control gitmo to the congress.

stuart: so essentially, you can't-- only the president can control the movement of bowe bergdahl and other prisoners. >> yes. stuart: nows' been these are new and more serious charges and now charged with desertion in the face of the enemy. will there be a trial? >> well, these are the original charges filed against him. then his lawyers requested what's called an article 32 hearing, sorts of like a grand jury hearing in the united states in which the grand jury hears evidence and decides if there's enough to prosecute him, but instead of a grand jury you have one judge. the judge heard the evidence and said there's not enough here to convict this guy of desertion and miss behavior before the enemy, i'm downgrading the charges to low level charges which carry a maximum of six months. that judge was then overruled by a non-lawyer, non-judge commanding general who says, i don't care what this judge said, i'm reinstating these strong charges.

at this article 32 hearing, sergeant bergdahl's attorneys presented two witnesses, two were investigators, generals investigated the case. >> so the top general overruled the lower down general and said, no, we're going to take this guy with much more serious charges. >> yes. stuart: repeat, i know where we're going here. will there be a trial? >> i don't think there will be a trial. i think there will be some sort of amicable resolution and the reason is because eugene fadel, who is the very well-respected civilian lawyer for sergeant bergdahl, has been sending out signals in the legal community. i did not hear this from him directly, one of his first witness is if there is a trial will be presents or former president barack obama. that's the last thing that president obama wants is to be examined under oath about why did you say all of these nice things about sergeant bergdahl and dispatch your defense

department to save him, why did you think he was worth five taliban prisoners, why are you allowing him to be prosecuted if you think he's worth five taliban prisoners. stuart: there will be no trial. >> there's no way he'll let himself be subjected to questions like that. stuart: so the five terrorists walk free and resumed position on the battlefield and bowe bergdahl walks away and everybody-- >> he's a poor, sad, mentally impaired person, if you want evidence of that, look at the tapes he made last weekend, comparing himself to matt damon in the jason bourne movies. stuart: it's not him that gets to everybody, it's the exchange for five top level terrorists that's what has gotten into everybody's craw. the problem with him, five american soldiers lost their lives in the numerous efforts to save him. that's one of the reasons the military feels they have to prosecute this aggressively. stuart: all right, judge, back at 11:00, please. >> of course.

stuart: gotcha. and what's the second largest mosque doing to combat terrorism. we'll find out after this. every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet?

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it's not going to fit up liftthe stairs.legs. what time does goodwill close? google voice: goodwill is open till 9pm. show me a moving company nearby. google voice: moving company within 6 miles. how do i get to 3221 carter ave.? 226 hyde street. google voice: here are your directions. when does my package arrive? google voice: your most recent order has shipped. thank you. setting new home address. text mom: i really like it here. >> new information about san bernardino killer tashfeen malik. officials say she used facebook to send private messages about jihad.

she told friends in pakistan she opened to join the fight one day. those messages went unnoticed by immigration officials. there's an unwritten rule, they don't look at your facebook. political correctness strikes again. 14 dead. meanwhile, other muslims here in america are saying they're worried about islam phobia in the wake of the attack. our next guest is a convert and a trustee at one of the biggest mosques in america. welcome to the program. good to see you. >> thank you very much. and peace be with you. stuart: i understand that you held conversations with the fbi about the people attending your mosque. is that a form of being an informant about what's going on inside the mosque? >> no, no, no, far from it. we've been doing this for many, many years. we've seen maybe even 20 years. we want to work closely with law enforcement because we recognize that the west way to protect our community, even before 9/11, was to have a

good, close relationship with those who are protecting all of america. so, whether it's the fbi, local law enforcement, we've taken a serious look at trying to establish the most effective cooperation. stuart: why aren't you out in the streets, i'm not asking in as a pejorative question, i think americans would like to see muslims, isis, you're not a part of us. stuart: we've been out on the street shortly after the attack. stuart: how many, how many on the street? you've got a congregation of 8,000 families, your mosque, how many came out on the street, was it hundreds, thousands? >> hundreds, there were hundreds. keep in mind we did it the last minute, quick, during the business day. we tried to get everybody out. actually we're working on plans to do another vigil. not just tens of thousands, but far more than that.

i think it's, without a doubt, the general feeling among the community is this is absolutely atrocious, we have to stand up. we cannot let these people define us and we're working on trying to get as much participation as possible. stuart: believe me, sir, we are a cheering you on in this. >> thank you. stuart: there are reports that isis is killing babies with down syndrome and you've seen them. you've seen these reports. >> yes. stuart: when i heard this, these are nazis, no different. >> absolutely. stuart: you've got to tell me where in islam does this come from? what relationship does this have to islam? where is it coming from? >> it has no relationship whatsoever. these people are simply lunatics. you know, you cannot justify anything. in fact the koran says if you take one innocent life it's as if you've taken the lives of all humanity. almost 150 muslims scholars here and worldwide have condemned isis and gone point by point and refuted everything

that they stand for. these people are criminals, thugs, a gang of insane people who are just trying to do things. i think even something like this, it's simply designed to get attention. to try to get, to become news worthy and they're succeeding. stuart: bob, we appreciate you being on the show today and encourage you in your endeavors to get out on the street and show you what you really feel. >> thank you. stuart: donald trump takes a big lead in the latest poll. the poll was taken after his comments on muslim immigration. he's got a very big lead. that could be good news for hillary clinton. we'll explain that one, believe me. and the weekly standard, steve hayes, he says the president is lying to the american people. those are very strong words. he's on the show 10:30 this morning. hour two of "varney & company" is two minutes away.

>> you're going to like this dow jones industrial up 210 points between moferg back up to 175 what's going on? tomorrow afternoon we're all expecting a lot of people are xmghting expecting fed to make a small interest rate hike tomorrow afternoon.

market throfs. price of oil o up about 1%. close to $37 a barrel. says next year oil won't move much from where it is. that's a forecast. how about cirrus they have a deal with howard stern and stock is up over 3%. how about 3m they say a slow in global economy is cutting into their profits. 3 a.m. is dow stock off the dow without 3m would be up 250. twitter shares down after one firm cuts the the price target. twitter down to 24. now we have president obama. he's defending his strategy to defeat isis. watch this. we are fighting isis more than ever. many places isil lost its freedom of maneuver because they know if they mask their forces, we will wipe them out.

point is isil leaders cannot hide, an our next message to them is simple, you are next. >> even the president's top marl guyings contests that view of the battle against isis. they say isis is not contained. ambassador john boldin is with us to discuss what the president had to say yesterday. my question is a lot of people say that's just not accurate mr. president, we're nots winning the battle against isis so my question to you ambassador is why he's saying this in the fist place? >> because he's being confronted with a reality he doesn't want to admit which is that the american people are increasingly coming to the correct judgment that his terrorism policies broadly are failing and it's specifically with respect to isis. they're failing very badly. we've been at this now for over a year. isis has suffered some setbacks in what used to be syria and iraq that's true. but they've also had some successes, and they're reached

globally is growing boko haram and libya looks to be alternative base of operations if we really got serious if going after isis in iraq and syria. so overall isis continues to be on the offensive in their capability of carrying out terrorist attacks around the world sadly as we've seen in pairings and san bernardino continues to expand. the president is caught in an ideological trap of his own making, he continues to insist that terrorism is fundamentally a law enforcement matter rather than something we should consider in the paradigm of war. as long as he believes that, he will fail. >> do you think he will change if he's confronted with the reality and command some more with a terror attack in the united states, linked to isis, does he have to change policy to turn around? >>ening there's some chance at the margin, reality will force him to change. but lements be clear, the president is an ideoing law and

doesn't comport with reality. facts, obviously, have not changed his world view over the past seven years no reason to believe they will change over next 12 months. so i think that reask is we will see the pace and scope of these terrorist threats increase in the next year with no material change operationally in what the obama administration does. >> do you think that country's with him? i'm asking to assess the mood of the country. essentially, president obama is saying look, we're keeping a hands off. distance from isis in the fight against isis is the country in favor of his policy? >> well i don't think it is. but honestly real question what do you do to keep america safe doing what the president has said his objective is degrading and destroying isis. the problem is i don't think obama really means that. i do think you can see majorities of the american people who understand that our leadership is necessary to put together a coalition that can

eliminate isis and syria and iraq, that it will require american bogs on the ground that we're in a very long struggle against terrorism. i think that people are out ahead of their political leaders, and i think certainly in the republican party whatever had candidate is able to mobilize that sentiment could win nmtion and would beat hillary clinton in the general election because she is barack obama's ideological twin on national security issues. >> very interesting stuff. ambassador john boldsen thank you so much for joining us. >> thank you stuart. >> back to the markets, want to refer to the john bonds selloff that did affect the market earlier this week now not today we're up 180 nearly 200 points. liz what's this -- there's no systemic risk no risk to the overall system. >> meaning banking system. >> yeah, banking system. are we in anything like the 207,

and 2008 situation? >> no, i don't think so what is happen is these guys mutual fund companies in atf basically trying to trade out of their high yield positions we talked about yesterday 350 in high yield risky stuff that could be out there. but you know, i think that the real choir is again, there's a flash crash, rush for the exit after the fed raises rates and is going to be some turbulence in some of the areas of the market but can people get out of mutual funds they look to see if there's high yield debt in there. risky. >> could you say that we're moving beyond early scare stages of the bond selloff? >> energy, mining companies have a lot of the junk bond level debt. but when you see tell comes in there too you have to say that's a sketchy. >> spooked by this but look at the market -- piling into consumer stocks by the way. >> all right. interesting.

>> mcdonald's for one hilting another all team high. >> cakes for dinner. >> i wases a skeptical guy. >> breakfast all day is no big deal. >> american citizen you know how he eats. >> a customer. back to politics another mammoth university poll look at it -- with 41%. cruz is second down at 14%. and how about this? rush limbaugh on trump's attack on cruz here's the quote a genuine conservative in the republican field would not go after cruz this way. look to me katy like trump has had lost rush. what do you say? reporter: he has, he has lost rush in a sense. rush limbaugh said he wasn't attacking donald trump when he made comments but pointing out that he doesn't belove that a true conservative, genuine conservative would go after cruz for o opposing mitch mcconnell

establishment republican going against the status quo in washington, d.c., and for being against the ethanol mandate, of course, that is something in iowa that people are paying attention to. so rush is pointing that out a lot of conservatives have been pointing out that they're questioning donald trump's conservativism. but poll shows he's in front, in the front by a wide, wide margin going to pull away further from here. >> katy looks to me leak you're in las vegas, you're there for the -- yeah. okay. reporter: i am, actually colder here than it is in new york city. global warming is not working. [laughter] >> good luck with that you're in the middle of the desert. i want you to forecast for me if you can, you know trump very well. what's he going to do tonight? is he going to go right after ted cruz because he's now challenging and getting close? reporter: i'm not so sure with the new poll showing 41% ahead

that's 26 point lead on cruz and that poll is another washington post abc poll that showed trump at 38 cruz at 15. with the backlash of rush limbaugh and i don't know if trump will look at that and go i should attack cruz but you never know. tonight the focus is beginning to be foreign policy based on the fact that this is the last debate of the year. foreign policy is number one issue or and terrorism is number one among voters, of course, it is the first debate since the terrorist attack in paris in the terrorist attack in san bernardino not sure trump will be able to go offer cruz on that topic. but we'll have to see. >> there's a terrific nungt for marco rube he could break u through tonight and he's good in debate too. reporter: he's a strong foreign policy position in the platform since the beginning and he's been after tuck lat when it comes to talking about the issues. that was before the attacks did

occur so marco rubio has been strong on that point i'm not sure if that catches trump are when you see trump not necessarily have great debates but yet he's still doing it very well in the polls. >> he sure is. it's 7:00 in the morning where you are now. you know, nobody gets up at 7:00 in the morning in las vegas. nobody, that's why -- in the background. >> people gong to the hotel room to go to bed right now. they're on their way. [laughter] >> thanks very much for getting up early in the morning in las vegas we do appreciate it. thanks katy. >> see you soon, bye. all of the packages for christmas are might be taking longer to get to you this year incase you missed it potential >> do not procrastinate this year online orders take 20% longer to be delivered according to "the wall street journal." more packages are being shipped and deliveries are taking about 20% longer so put that into your

calculations as you buy stuff online. a man pounds this 1969 dodge charger daytona in his barn. pretty beat up, that doesn't even start actually. but it could still be worth up to $180,000. and we seem to have some breaking news -- over to you. >> i have to break in. we have breaking news out of los angeles schools closed with a threat. a news conference in progress. we're listening to it now. go. >> to make sure that it is safe for children and safe for staff to be there on wednesday. i will issue a statement late this afternoon after the chief, chief hippeman informed me that school has been searched, and it is okay. ty will keep you informed ongoing during the day

if there are any situation one of the issues i've been worried about is children who walk to school. we have a great many of those, and so i've asked the principal to make sure that those children are at a specific date so they can be given instruction, kept together, and so that we can make contact with parents to pick up their children or to make sure that they get home safely. not independently, home safely making sure that their parents are notified. we have sent a connect ed to all parents letting them know of the action i've taken. i will answer some questions after the chief and the board president speak with you. chief. [inaudible] >> start, begin --

>> good morning. steve with the police department, and i just want to reiterate to cortines already stated, earlier this morning, we did receive an electronic threat that mentioned the safety of all of our schools. as a result of that threat, not only los angeles school police department, but -- excuse me? [inaudible] >> okay. i'm going to continue on as a result of that threat, los angeles school police department as well as los angeles police department and the if fbi were notified, and right now the threat is still being analyzed. in abundance of caution superintendent cortines has indicated we have chosen to close our schools today until we

can be absolutely sure that our campuses are safe. and until it is deemed safe by law enforcement, and concurred with our district officials, which we believe will be able to occur by the end of this day, we will keep those schools closed. the investigation is ongoing i'm not going to get into the details but ipts to say this. this is important, that threat that was received as far as the l.a. unified district is concerned, pertained to the l.a. unified district. there's been many calls. i can tell you that, we know of no other threats that we're aware of. unless other agencies have gotten a specific outside of lausd about things to the threats that we got to our schools only. we do not know any other information about any other threats within the county region at this time.

as i indicated law enforcement will continue to evaluate the threats. >> chief will you introduce the chief. >> i would like to introduce assistant chief vergas he's the assistant chief from lapd, chief andrews. [silence] >> good morning i'm george i'm assistant chief with the lapd and chief of operations, as was mentioned earlier, the school district received a safety threat that we're in the process now of validating or vetting.

what if any validity it has, as you can imagine we take all thrits threats seriously. nothing is more important to us than safety of our kids especially those that are coming to and from school that haven't been notified yet of this safety threat. we're doing everything we can to ensure that had we conduct a thorough investigation into that threat, and we'll be working with the school district as well as with the fbi to ensure that the public is informed as much as we can provide as soon as we can provide it. >> introduce -- this is steve president of the los angeles board of education. >> how much -- stand up. musical chairs. >> sorry guys. good morning. my name is steve zimmer i'm president of the school board of

los angeles unified school district, i'd like to speak if i could directly to families and employees. we are taking this action in abundance of caution to make sure that every child in l.a. unified school district and every employee is absolutely safe. right now, we ask parents and families if you've not yet sent your children to school, please do not send them to school. if they have already been dropped off, we will have families meet their children at the reunion gates of all schools. i want to be very clear, we need the cooperation of the whole los angeles today.

we need families and neighbors to work together with our schools, and with our employees to make sure our kids are safe throughout the day. we need employers to show the flexibility that a situation like this demands, and we ask you to show the maximum possible flexibility with your employees who are primarily mothers and fathers and guardians today in this situation. at our school sites, we have asked administrators and plant managers to report. we are not -- we're asking for teachers and other support, personnel to stay home today. once again, i want to reiterate on behalf of the entire board of

education, our support, the superintendent, for the chief of police, the actions that we're taking today are swift. they are appropriate. given the situation that we are in -- and we ask for the patience and the cooperation and support of the city. the education of our kids is incredibly important. the only thing that's more important is their safety. and the superintendent has acted in regards to that safety this morning. i now would like to introduce our deputy superintendent for operations dr. felma melendez who make a statement in spanish. >> can can we ask a couple questions? >> give us a little bit more about the nature of the threat

why you feel this is so serious that a school has to be canceled? >> later in the day after -- they continue the investigation and vetting as you heard the chief say with the fbi, we will make a statement. but not at this time. >> was it a broad threat affecting all of the schools or -- >> it was a broad -- it was not to one school, two schools, or three schools, it was many schools. not specifically identified. but there were many schools that's the reason i took the action that i did. >> electronic threat, what does that mean? >> there's a message. >> was there any make that will return to the yard this morning? what do you say to that? >> there was not a threat ahead to buses. the reason they were returned is because we're not picking up students. it was two students at school.

nothing more than that. does that mean that school -- >> at school students. yes. >> what you mentioned regarding the backpacks and other packages, can you collaborate on that? >> i can't. as a chief after he's met with the city police and the fbi, he will be making further statements on why i made the decision i made. >> more than 900 campuses. are you able to say whether these were elementary schools, high schools? >> let me tell you, i can't take a chance, and all schools, i've asked them to be searched today by the appropriate people and appropriate people are not necessarily teachers or support people if there is a problem, i want our chief of police working with the city police and working with the sheriff to develop a

plan. we have with six districts to work systemically through every one of those schools. some of them are very large schools, some of them are schools with three and four rooms to them. but i want every school, every early education center, every adult school, i want them searched, and a report made to me and to the board of education that it is safe. >> arrived early well before 7 a.m., all campuses evacuated for thing that was on campus? >> they've been told to go home. >> what happens to kids who may already be at school is? are you telling their parents to pick them up now or -- >> yes, there's been a connect ed. the board president reviewed that with you, that they've been asked to meet at a certain gate. the principal to be there, the plant manager to be there, no child to be left alone. i know it is colds.

we're making every effort to see that we get the notification to parents as soon as possible. but i am not taking the chance of bringing children any place into -- into any part of the building until i know it's safe. >> can you clarify then all students, teachers, staff, personal everyone involved in your campus. >> anyone on the campus that -- that is what i've done, yes. >> incorporates everyone. >> yes. >> concept you can't go into the specific threat. but a little context for our parents at home. how many school districts -- how rare do you get a threat like this? >> this is a rare threat. we get threats all of the time. >> i want to ask you -- why wases this one -- >> go ahead. i'm curious about this one in particular why you got this kind of -- >> i think the circumstances in the neighboring san bernardino,

i think what is happened in the nation, i think what happened internationally. i as superintendent am not going to take the chance with the life of a student. remember, we do get individual threats. we with do evacuate to schools. we do lock down schools, et cetera, and do not release students until we notified parents. so what we're doing today do except, we're doing this in a mass way. >> you mentioned earlier but at this point for those watching right now. there's an update later today. but where do but stand even for tomorrow? >> i have no comment on that. i've told you that i will release the statement before the end of the day. [inaudible] [speaking spanish] i want to introduce you to monica garcia board member --

she'll translate for us. >> let me bring everybody up to date request this story thus far. early this morning in california, in los angeles what described as a credible terror threat. that's the description reuters cbs said a incredible bomb threat deliver odd to the los angeles school system. the result wases that the entire school system was closed down. the gentleman in the jell-o baseball cap ramon cortines he's the superintendent of los angeles schools, he made the decision. close them all down, and search every single one of those schools. now, in the los angeles unified school district, there are 900 schools. all of them have to be closed -- have to be searched thoroughly, and are 640,000 students in that school system. all of them have to go home. this causes enormous disruption throughout southern california.

picture it. 640,000 children who should be in school will, in fact, be at home. what happens to the parents? what happens to the parents going to work in this is enormous disruption all around that's where we stand at the moment. the superintendent says he'll have a statement later on today about what happens tomorrow at those l.a. schools. >> reuters is reporting this is a credible terror threat reportedly a bomb threat. this is second largest school district ashley expr were just discussing thises in the country behind new york city, and ashley also pointed this out it affects parents too who drop their children off at work and thref to drive to work. because basically that's what happens in l.a. you drive -- they mentioned traffic jams, right? >> absolutely right jams anyway on l.a. freeways for a number of years. it's such a large city. 640,000 students, 720 square

miles where those schoolings are contained within. this is a huge undertaking to check every school. 900 schools. also buses were sent back to their depose as well. >> checking out, searching thoroughly 900 schools, enormous task. cannot be done in a matter of hours. >> they will not discuss the nature of the threat but he did reference san bernardino other areas that is called a terror threat o o opposed to a safety threat. but enormous responsibility on the part of ramon court he has it make the decision. he hears about it, he has to decide -- >> threats all of the time he's got to decide to shut them all down, close them all down, send children home or do i just run the risk and go with it? he decided to shut them all down. >> called fbi now on the scene and lapd trying to discern nature was threat. >> we have with with us on the

phone frequent guest on the program what comments on the goings on in california. my take away from this james is massive dislocation throughout california. throughout southern california. massive myc disruption and you say what? >> this is a breathtaking move if there wasn't any credibility it would be a blunder on part of the superintendent as you said l.a. school system is large, it's the second largest school system in the nation. it not only serves los angeles but 31 different cities in the area, and this is has to be taken very seriously. it's beginning to be o complete gridlock as far as roads are concerned, and -- >> i just can't imagine searching thoroughly 900 schools, i can't imagine the disruption of having 640 ,000 youngsters at home and not at school, and this is disruption extreme. >> yeah, i think this is the

reason that they just told everybody to stand down and not go into schools we don't have all of the information right now. but you know, there's -- there's this enrique marquez in custody to the fbi and there's been discussions that we've heard coming out of the fbi about other sleeper cells in los angeles. people are worried about that type of thing whether it's true or isn't. i think that -- i think that that is probably a very credible situation the superintendent said there are situation where is they get bomb threats all of the time but this is breathtaking action means there has to be something very serious underlying. >> you have to remember that back drop too, what's happening today is san bernardino shooting of the less than a couple of weeks ago. if that's the back drop if terror is the back drop you can understand that ramon cortines could not take any risk and had to do what he did because he had

a terrible terror threat. that's the developing sichghts and that is the story at the moment. nothing to do with it finance whatsoever, everything to do with disruption in southern california. we will take a short break, but we're back with more in just a moment.

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we have tear were front and center. security. the anxiety of everybody. by the way, if our viewers are just joining us, what you are looking at is los angeles.

all the schools are being closed. 900 schools will be searched. there was a terrible terror threat. back to my point of terrorist talking about economics. am i right wish to mark. >> mark. >> their strong suit normally has been national security. we saw president carter being a weak leader. we are seeing the same effect happening now. what does this mean. a week or two weeks ago when san bernardino happened, the fbi said that they did not have any credible threat. a false sense of security. the second largest school district closing. affecting over 604,000 students in families. the power of terrorism. impacting our lives every day.

republicans have an opportunity on national security. stuart: stay there for a second. i want to bring in steve hayes. i think it has political implications. your comments, please. >> tonight's republican debate. i would argue that there are two components to this. rising anxiety. the fact that we have had attacks. we have had the attack in san bernardino. some of the attacks homegrown. that is contributing to this anxiety. i think we have seen it especially over the past several weeks. you have a white house.

you have an administration did not only incapable of protecting americans from these kinds of threats, they are not leveling with the american people about the nature of the threat. about the scope of the threat. we have seen this on a wide for id of issues. providing bogus statistics. false reassurances about the dangers of jihad that he is releasing from 1 pound mole. you have the president say that isis is contained. you had the president say that al qaeda was decimated. the christmas day bomber was an isolated extremist. all along, this is not the threat that you have been told it is. we have everything controlled. it turns out, that was wrong. we find out today that the authorities did not check the

facebook postings of the g hyde had applied for a be set to come to america to get married did all the time she was talking about isis and her desired to join the fight. she was saying this on facebook. we did not check. we did not want to offend anybody. i do not see how that can stand in this background. you had the entire city of los angeles. >> what i think makes him even more extraordinary thing, the administration is promising the situation. a time where there is nowhere to go to the pace information. the administration, even if it wanted to bet, the syrian refugees could not do it.

the administration was not doing everything that it could to make sure that americans are safe and secure. i think that this is a huge story. it will continue to affect our politics and day to day lives. >> do you think we may get some change from the administration? >> no. there will be no change. we have los angeles going to be shut down. we are shut down in los angeles. total disruption for the entire city. i have to believe that the administration will respond to this and do something more than what they are doing now. >> i am sorry. i disagree with you. what we get from the president is a speech. we have our proposal that allows him to look like he is doing something. rather than fundamental changes.

>> we have seen it up close. we know what it looks like. two speeches in which he reviews his policy. >> i just do not get it. i really do not. >> i would love to be wrong. >> steve hayes. a pleasure. i appreciate you being with us. i will take you briefly to the markets. we have a rally going on here. a rate hike from the federal reserve. most people think it will be a miniscule hike. mostly symbolic. price of oil is up as well. thirty-six, almost $37 per barrel. the los angeles school emergency closure.

this could be a terror threat.sy that is what we're hearing. the latest developments in a moment. ♪ opens your nose up to 38% more than cold medicine alone. shut your mouth and say goodnight mouthbreathers. breathe right ♪ how else do you think he gets around so fast? take the reins this holiday and get the mercedes-benz you've always wanted during the winter event. hurry, offers end january 4th! then, a brutal act of teterror here at home.. it's time for a tested and proven leader who won't try to contain isis. jeb bush has a plan... to destroy them. and keep america safe.

jeb bush: the united states should not delay in leading a global coalition to take out isis with overwhelming force. announcer: tested and proven leadership matters. jeb bush. right to rise usa is responsible for the content of this message. nicole: i am vocal nicole petallides with your fox business brief. the dow jones industrial average is up. the s&p up 23. the nasdaq composite up 57. all of aeros. oil gains for the second day here. tomorrow, leaving the dow jones

industrial. chevron as well. disney, jpmorgan. these are all winners. stocks continue to do very well. up one and a half percent. of 25% for this year. we have a discount. 10% discount. a 20 year deal. start your day at 5:00 a.m. i will be here with all the breaking news you need. ♪

stuart: a story breaking out of california. all los angeles schools closed. 900 of them. 900 schools. all will be searched thoroughly. there was an electronic message delivered. it contained a threat. local media. your authorities have not used those words. what you are looking at is enormous disruption throughout los angeles. a fox news contributor with us now. happens to be now in las vegas.

i cannot imagine the level of disruption in los angeles right now. 640,000 youngsters will have to go home. 900 schools will be searched. parents have to decide what they're going to do. do they go to work or do they stay home? >> it is crippling, stuart. this is just the first day. we have to help that intelligence techniques are able to be used everywhere throughout los angeles. we cannot have schools closed today. what do we do tomorrow. what do we do thursday. what do we do friday. it may not be a big issue for east coasters. we are in our cars. we drive everywhere. having enclosed is a huge deal. >> this is a concern everywhere in the country.

it points out and up the power of those making these threats. they hold enormous power. if you can make one threat, a credible threat, you basically closed down a city the size of los angeles. you have enormous power in this environment where there is a terror threat. that is what is going on here. >> it is a little bit more than that. it must be more than just a digital or a call-in. there is no way that the school system would be shut down across the board all throughout los angeles if it was not followed up with some sort of intelligence. there has to be specific intelligence saying that there is a plan. there is just no way that a phone call can shut down schools. what we really need is an

administration to take this seriously. intelligence gathering techniques are incredibly important right now. our agencies need to be talking amongst themselves. we are at an appropriately so that we can stop these attacks while they are being planned. if they are being planned today, we stopped them today. >> the thing is, i think that there is a political element. administration. the threat from isis is being contained. there are other incidents where the president has talked down the anxiety which we all feel in this era of terror. i think that there is a political element to this. i do not think that it is favorable to this administration. >> you are exactly right. this administration came in

early end. from the moment that the campaign started. they were mocking intelligence gathering techniques. we need more gathering of intelligence. not less. stuart: thank you for joining us. very important story. appreciate. the dow jones average is up over 200 points. in a moment we will get back to it's t the big school closing they are and what caused it and what will happen.en back in a moment. ♪ before those little pieces would get in between my dentures and my gum and it was uncomfortable. even well fitting dentures let in food particles. just a few dabs of super poligrip free is clinically proven to seal out more food particles so you're more comfortable and confident while you eat. so it's not about keeping my dentures in, it's about keeping the food particles out.

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>> more on the breaking news now. all los angeles schools closed because of a credible threat. all of them will be searched thoroughly today. former nypd detect this. can you search thoroughly 900 schools and one day? >> there is only one good thing about this whole thing. they would never telegraph that they they're going to do something before they do it. you cannot just -- we have to go

in there. the search will take a long time. they must search those schools individually. >> we are told that it was a credible electronic threat delivered to many schools. many students. whether it was an e-mail, at this point, i do not know. they will be looking for backpacks and packages. have we ever seen anything on this scale before? >> what happened with the carnage that occurred there, we know that this guy that worked for the health department there had pictures of schools. i think everyone is on very high alert. though caution, we have to respond to these stupid things.

in fact, it went to these people that were on the school board and all of that. this is the life that we are living now. could it be real? absolutely. we have to respond to it. what we saw, we saw what happened a couple weeks ago with san bernardino. we have soft targets. we have these people that want to kill us. we must shut down immigration. stuart: thank you very much. >> 200 points. federal reserve decision on interest rates tomorrow afternoon. the los angeles school district. all schools closed. a threat to liberty electronic way. more on it after this. ♪

>> this is the story that broke about an hour, hour and a half ago. all 900 schools have been closed. sent home. they stay home. ashley, this is because the authorities received a credible threat. ashley: we have no idea what that is. it was significant enough to make this move. it is a huge situation. a huge sprawling school district. 900 schools. seven hundred square miles. it was his call. he heard about the threat. close it all down. he did that with a backdrop of terror in san bernardino. we get threats all the time. what made this one different.

he just said the student safety is a most important factor. >> the authorities have not used the word terror. >> that is correct. lapd reports indicating they are sweeping. taking the rest of the day to sweep through all of the schools and their campuses. any explosive devices in them. the extraordinary disruption throughout the city of los angeles. 640,000 children who have to stay home. >> right. 45,000 teachers sent home. the parents who after been to work, getting the phone calls now. >> all of this because of one credible threat.

andrew peake is with us. you are a former intelligence officer. i know what you are thinking here. this is not isis. why do you think that? >> i have to agree with both edell on this. if feels wrong. the two attackers or the male walked into a christmas party and just started shooting. calling in a thread ahead of time is something that the ira used to do. it is really not a hallmark of modern islamic terrorism. it feels wrong to me. >> you still have this enormous disruption. they have parents who may or may not be able to go to work today. it looks like to me that los angeles is going to shut down. it is chaotic.

>> this is a problem we have been dealing with for 14 years. terrorism really works. unfortunately, it is working increasingly well as we go forward. i think about reactions to the terrorist attacks. the whole city was shut down. all the schools are shut down. it is incredibly disruptive. it causes massive economic damage. you have to take it really seriously. i do not really see an end to it, unfortunately. stuart: whether it is terror or not, do you think that the administration has to respond? >> i think that that is true. they have totally gotten away from them. i was struck yesterday. the president was at the pentagon.

not by the president's statement, but the same day that saudi arabia was announcing a 34 member alliance. by the way, they were announcing it without any prior warning to the white house. we look forward to learning more about this. our allies, the ones in the line of fire taking matters into their own hands. stuart: one last question. we revealed today that the authorities did not check the facebook postings of the g hodge when she applied for a visa to come get married. had they checked, they would have seen that she was very willing, ready and able to join the fight. dad has got to go. >> it has. that is literally the only reason we did not check them.

if you were applying for any kind of job, people would look at what you say. >> so much higher than the standard. it beats me. stuart: former intelligence officer pete thank you for joining us. we have a series of guest lined up to deal with this situation. joining us right now is a democrat strategist. have i got that right? lagarde this of whether it is terror. regardless of that. the president will be under rate pressure. the entire city of los angeles has been shut down. i think that that is exactly where we are. i think he is struggling a

little bit with this. >> he is. i think that one of the things -- >> he is struggling. struggling on a sunday evening oval office address. he is not convinced america that he is going after the fact guys and he will stop them coming here. >> we are very scared. this hits home for us. the challenge around finding terror. the solutions are not just about military options. they are not just about putting more boots on the ground. they are identifying ways that we can support the local troops that are fighting isis. the fight is actually trying to

identify. at the same time, we need to get the u.s. community into an understanding of what the bigger picture is here. stuart: you do not think america understands the threat? >> what we are hearing from the hawks on the right are about trying to use more military option. use more methods to not let muslims into the country. crazy things on the table. only serving to reinforce the anxiety that americans have. the anxiety of americans. a president that is not recognizing the extent of the problem.

several presidents have had to deal with this scene. getting to the source of disrupting their recruitment. dealing with the source of desperation. >> they have been in boston. they have been in new york. stuart: what is the president going to do about it? >> it has to be a very deep source of how we deal with occupation supporting the local forces on the ground. stuart: weight. do you reject the idea? these people coming in on marriage visas or refugee visas. until such time that weekend that people properly. she is coming to join the fight.

>> absolutely put in the measures. stuart: what is that? >> we are in flaming anxiety. that is the intelligence. stuart: so why? >> we do not have to stop population's coming in that are quite frankly reacting. they want occupation gone as much as we do. stuart: do not let anyone in that will kill our children. >> there are people inside of america that are killing our children now. stuart: what is a president doing? >> i think what the president is trying to do is expand the role of the u.s. bring in our allies.

this is the work that we need to do to disrupt their recruitment. >> it is not reactive. >> more information. this threat, school board member. that is an interesting development. >> i think that there are a lot of questions that will be coming out of this. >> i think republicans -- make some suggestions. you can dismiss them. >> our foreign strategy policy is on terror. stuart: dismiss republican to come up with an idea from stopping this.

these attacks have been happening under republican. stuart: what? >> 9/11. we have five years of president obama. several weeks ago. that is not just the domain. >> we need to figure out -- stuart: the president is in the moment to seize the moment. he is not doing it. at least not so far. >> there is a lot more that we need to learn about what happened. i think the work is happening to identify what kind of ally we can continue to work together. this is not democratic problem. this is an american challenge. >> the nbc pulls. >> one out of four democrats say

they they fear that either them or loved one will be hit by terrorist attack. these are more likely to get into a car accident. given we see these incidents happened. the point is to put that fear into you. the best from all sides. i think the president i do not disagree with you. i do think the big ideas around getting into understanding workroom and strategy. i just want to see america reassured that we're doing something. stuart: we are on it. we will nail them. we do not want our children killed. thank you very much.

the g hodge that are here. what is the president doing? >> i am just saying. we need to get -- stuart: i know what she is saying. are you a little disappointed? >> , on. this has been a decade long problem. >> the last whatever it is. stuart: a new kind of terror. >> social media. >> the cdc, the nih and other agencies use social media to track things like stomach flu or drug abuse or infection. stuart: using it against the people coming here. alexis, thank you very much for joining. we do appreciate it did check that they board.

we are still up 187 points. more on the l.a. school shut down and the search of all l.a. schools after a credible threat. back in a moment. ♪

>> this is a rare threat. we get threats all the time. >> why is this one, go ahead. i am just curious about this one in particular got this kind of response. >> the circumstances and the neighboring san bernardino. what has happened in the nation. what happened internationally. i, as superintendent, am not going to take the chance with the life of a student. remember, we do get individual threats. we do you back you a schools. we do lock down schools.

we do not release students until we notify parents. what we are doing today is no different than what we always do except we are doing this in a mask way. >> all l.a. schools closed. 900 of them. all of them will be searched. 640,000 youngsters sent home. ashley: the associated press saying that this particular threat was e-mailed to a school board member and appeared to come from overseas. that may have given it a little bit more attention. the superintendent said that they get threats all the time. >> local media is calling this a credible terror threat. the authorities, like that gentleman there, they have not used that expression. was the disruption going on here?

>> the president is saying that they need maximum cooperation with all of los angeles today. the employer's need to show maximum flexibility. they are also saying no boots on the ground there. no threat against school buses there. they are searching for backpacks on campus right now. a broad sweep going on in the schools. stuart: parents not being able to get to their jobs today. lees, mr. employer, you be flexible. they level of destruction for the entire city. former l.a. detective with us today. i know you are calling this a form of terror. i think we should make a very clear distinction between economic terrorism or disgruntled individuals. organize terror by isis or g hodge extremists.

how do you see it? >> i think you are right. the superintendent or the school board, they will shut it down. i doubt if lapd without their approval would shut it down. maybe recommendations. they had a threat that came in. i have a feeling that there was some bumbling. some intelligence that actually connect did or somewhat confirmed what they previously were holding as an isolated piece of intelligence. >> your intelligence information of the threat delivered probably from overseas. you think that there is more to it? local intelligence. >> or maybe something that they are connected to. down the road or not, we do not know.

when you save credible threat, it is not specific time, date and place. that is how you can define it. there is some other intelligence that law-enforcement, military, the government is seeing that is connecting the dots more than a disgruntled student. a dispute with the parents. school board. something like that. they're doing that right now. anybody that can put in this call as a prank. no school day. shut down all of the schools paid this is all of them. >> surely, you know the district. can you search thoroughly 900 schools in one day? can you do it? they are taking the threat. they are giving every school and all of their security officers and their staff.

orchestrating some kind of a search that is out of place. out of the ordinary. of course, you have all the lockers for all the students. it is an immense task. virtually impossible. they do not usually call in and say it will be a terrorist attack. this could also be a dry run. this could be a dry run to see how law-enforcement deploys in these kinds of soft targets. just exactly what they do. they now know in the future in los angeles if this goes down again, though boy that cried wolf and will be slower. doing exactly the same thing. we know how they do it. how they give back you a. how they search. where they go. how they do it.

stuart: that gives the bad guys enormous power and that is a fact. thank you very much for joining us on a very important day. the new york state assemblyman state assemblyman will join us next. what about new york. what will we do if something happened here. we are on it. the dow jones industrials unaffected by what is going on in l.a. 175 is where we are. back in a moment. ♪ the only way to get better is to challenge yourself,

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not the other way around. stuart: if you are just joining us, here is the news. all los angeles schools, all 900 of them, close. they will search each and every one of those schools after a credible threat. we've got an update on this. ashley: over at fox news. the threat was received by a school board member. reviewed by the lapd. deemed credible. a bomb in a bad back and other packages in the schools. we are told that the lapd with from zero to 60s. they took it very seriously. stuart: a new york state assembly member. you know the gentleman who made

that they cannot spend there. the yellow baseball hat on. he is the guy that close them all down. it was his call. that is quite a call to make. >> making a call. it has been talking to some of the other folks that may have information. cortinas, when he was a chancellor in the city of new york. he will make a call. if he had the information that is credible. i do believe that he made the decision. stuart: a school chancellor in new york city. then he went to los angeles. now he is involved in this incident. you say that he would not make that call to shut down the entire system unless he really knew the ground on which he was walking was pretty solid. >> i will assume that is my statement. raymond cortinas, he is a very,

he does not like -- when he makes a call, he makes a call. he will get the advice of the mayor. stuart: that is him on the street right now. >> that is correct. eighty years old. >> 83. about to retire. very important to recognize. the safety of our children. it is critical, i think. and then, at the end of the day, we will find out if he is wrong or right. >> the disruption to los angeles is extreme today. more than a half-million people staying home. >> let's assume that he will be blamed if something was really out of proportion. we have to give credit to him.

we have 1.1 million students. we have 1700 schools. >> are you a democrat, sir? >> i think that you are. >> would you agree with me that this kind of development, whether it is terror are not, budget jerk the school or not, it plays to donald trump. he will do something. >> president obama has added an extra step to the plate. it will display on his side. stuart: you think that president obama stepped up to the plate? >> i think that he has done the job that he needs to do. for my point of view, it is secure. i think that the nation is looking at someone who managed

to get the information. he makes a decision that he has to make. stuart: you think that this decision in los angeles will play to president obama? >> this is a very divisive situation. >> increase support for the president or donald trump? >> it depends on the outcome of this investigation. >> supporting the president. [laughter] stuart: we have a major situation. >> talking politically in the way donald trump has been playing his political dynamics, i would say it will play to donald trump. the presidential debate. stuart: there you go. we appreciate you being with us today. very important stuff. a credible threat to los angeles schools. up next, we have a guest that

says, yes, that does play right into the hands of donald trump. back in a moment. ♪ it's the little things in life that make me smile. spending the day with my niece. i don't use super poligrip for hold, because my dentures fit well. before those little pieces would get in between my dentures and my gum and it was uncomfortable. even well fitting dentures let in food particles. just a few dabs of super poligrip free is clinically proven to seal out more food particles so you're more comfortable and confident while you eat. so it's not about keeping my dentures in, it's about keeping the food particles out. try super poligrip free.

stuart: all los angeles schools, all my hundred of them are close. all children sent home. the latest from ashley.

>> that l.a. unified school district has announced it will hold a press conference to give everyone an update at the top of the hour. stuart: i will be listening for the credible threat. how was it received. what did it say? dagen: against many schools. ashley: the threat appeared to come from overseas. this all took place in los angeles. maybe a couple of hours ago. that is when the story began to break. his attorney based in los angeles. he has an 8-year-old in a los angeles school. thank you for coming with us. how did you first hear that there was trouble at the school. >> my family received a telephone call from the

principal within automated message. phone calls to cell phones and e-mails. we were bombarded with messages. just after 7:00 o'clock specific time. stuart: what time would you have normally left? >> about 8:00 o'clock. stuart: you had some morning? >> there are some early before school programs for parents that work or for single parents. luckily, my family was going to take care of it and deal with this. this will have effects through businesses and other industries all throughout the los angeles area. >> one of the stores that you have been trying to cover here. that is in armistice or option for all of los angeles. you have children that need to stay home instead of go to school.

all of these employers that have to be flexible with your workforce. this is extraordinary in your city. there are single parents. in the court system that may not be able to come to work today. it may come back on the reels of justice. while parents are trying to deal with it. >> an update on that from ashley. non-credible threat. new york city schools. commissioner bill bratton. we do not see this as a credible terrorist threat. they are made to promote fear. we are very uncomfortable.

this is not a credible threat. concerns with people overreacting to it. thank you very much for joining us. very important day. your information is very important to us. boris exide is with us. mccain palin. this development in los angeles plays to donald trump. spell it out. >> over half the republicans where trump is best positioned to handle terrorism. all of that going on, there's no way that today is the day to turn. we do not know what happens between now. >> we do not know that.

oklahoma city was terrorized. stuart: pointing out earlier today, the backdrop to this threat in l.a. is a san bernardino killings and the paris outrage as well. the backdrop is terror. and abundance of caution to shut things down. prevent all, is not addressing the nation's anxiety. he is not holding our hand. he is not reassuring us. >> a believe that they are doing the right thing on national security and terrorism. only 20% believe that the country is heading in the right direction. chris christie could also have a strong position. donald trump on national security. stuart: why is it that it is donald trump who almost always

exploits these news developments to his own advantage? better than the other candidate? >> maybe it is because he is the best people to articulate it. understanding how i will handle it. they look for it the most different. >> you are a mccain palin guy. are you a trump guy now? >> i have not chosen a side yet. i think chris christie has an interesting candidacy. very interested to see what jeb bush does tonight. i also have this national security concern. he has an opportunity in there as well. >> the politics of the l.a. school shut down. thank you very much, indeed. the power of the threat.

it has shut down all los angeles schools. the judge after this. ♪ ♪ ♪ ♪

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stuart: all morning we have been telling you about the los angeles school district. throughout this time frame, nothing has happened on the market. there is no connection between what is happening in l.a. and what is happening on wall street. why is that happening? tomorrow afternoon, most of the pundits are expecting a very small rate hike by the federal reserve. surely symbolic. the market seems to like that one. let's get back to los angeles schools closing. i will repeat these numbers. they are huge. 900 school shut down. they have got to stay home. all of those schools have to be searched.

described as a rare, but credible threat to the school system. multiple schools. deliver this morning. apparently electronically. reports that it came from overseas. judge napolitano is here on this subject. what occurs to me is the power of those making the threat. we have shut down one of the largest cities in the world. >> in terms of the economic effect of the shut down and the geographic area of the shut down, it is truly enormous. 700 square miles. >> the gravity of the threat is reflected in the times. look at what just happened in san bernardino. none of us can second-guess the decisions made by the civilian and police authorities in los angeles. might they have viewed this

differently had san bernardino not happen. had there not been a pretty credible evidence that more people were involved. stuart: a week 10 days ago. a few miles down the road in san bernardino. to jihad assaulted for americans. maybe there were and that other people out there that felt the same exact way. how come the superintendent of schools in los angeles say everything is fine. do not worry about this. you cannot say that. >> we do not know what the fbi knows. i would like to think that that fbi people in charge of san bernardino have been in touch with the people in l.a. they even you wait the gravity and the credibility. >> the existence of some government secrets.

>> also disagreed on government secrecy. i want my government. that is the american government. >> i want my government to lie to the enemy. i want my government to confuse the enemy. >> very happy to know that your supreme court, the americans that you now are that the government may buy and cheat and deceive and confuse and confound , keep going on and on and on in order to distract the truth. i do approve of the government remaining silent. silence will enhance safety.

it would be insane for these people, he's fbi folks working very hard. about 20 hours a day. saying to the world. >> i think that you are all the most right. >> trying to find common ground and common sense. >> enormous power on the parts of the terror threat. >> a threat like this five years ago may have been laughed off. stuart: judge napolitano. we will see you tomorrow. no impact on the dow industrials. ashley: they receive the same threat that closed l.a. schools. they concluded it was a hoax. >> that is fascinating.

liz: the threat came from overseas and was e-mailed with e-mail to the school board member against many school. they basically shut down -- ashley: that lapd said yes. >> developing story. more on it after this. ♪ wow... yeah! okay... guys, i'll be writing a new language for machines so planes, trains, even hospitals can work better. oh! sorry, i was trying to put it away... got it on the cake. so you're going to work on a train? not on a train...on "trains"! you're not gonna develop stuff anymore? no i am... do you know what ge is?

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ashley: stuart: early this morning the california school system described what they called a credible threat. they closed down all the schools in los angeles. now we are leaving, and i right in saying this? precisely the same threat was received in the new york area. ashley: new york city got the same -- it was not credible. now bill deblasio, the mayor of new york and the police commissioner bill bratton say several other districts nationwide all got the same threat and investigators determined students were not in any real danger. stuart: i have some analysis. >> could be a copycat threat in virginia beach. stuart: was the same threat, the same threat. los angeles because of the proximity of san bernardino they blinked and closed the schools.

judge napolitano: the power of the threat. it is almost a test. here is an interesting historical fact, the police commissioner in new york city, bill bratton is the former police commissioner in l.a.. the same mindset saying if hybrid there i would not have closed the schools, i am here and i won't close the schools, this is a test, eyeball to eyeball, we are not blinking. ashley: bill bratton accusing l.a. officials of overreacting by shutting down the school district. stuart: telling los angeles you are overreacting. ashley: bill bratton. judge napolitano: and ray kelly, two of the savviest police commissioners in the country today and i would rely on bracken's judgment. if that is the case -- ashley: the person who wrote the note claim to be jihadists, the person was a prankster. that according to bill bratton. stuart: ramon cortines in los

angeles who used to be the superintendent -- judge napolitano: can't make this stuff up. stuart: because he blinked because of the proximity of san bernardino. top of the hour, 12:00 eastern time there will be a press conference from los angeles. we got to take a break but we will be back.

stuart: very important news just broke. new york city received precisely the same threats as los angeles. they closed their school system. what did the police commissioner in new york say about the threat he received? ashley: bill bratton said the person who wrote this note claims to be at jihadists but made errors the made clear the person was a prankster. he is accusing l.a. school officials of overreacting. stuart: now we are in a situation where we have a press conference coming up moments from now held in los angeles

where the lapd will be front and center explaining what happened in los angeles and why they closed the schools in new york and other places in america did not. extraordinary stuff today. neil cavuto, is yours. neil: is very confusing. two responses to the same threat. looking at the left, l a and the right, just outside our studio, it was a threat supposedly from abroad, that appeared to be a threat from abroad, new york city officials thought it to be a sham in l.a.. in california, what is going on, not far out from san bernardino attacks, they were not taking anything for granted, dismissing any such threats, there might have been something in this threat that got police commissioner bill bratton's attention in new york, as not credible. we don't know what that was that