patpatrick kaisar from brandywi. here is the closing bell. melissa francis and david asman for the "countdown to the closing bell." cheryl, i'm sorry. cheryl: thanks, liz, this is history. history on wall street. managing to eke out north record close, the ninth in a row, the longest streak of records in more than 30 years. not for the s&p and nasdaq. looking good. we like this down number. i'm melissa francis. david: one out of three ain't bad. we have you red wi big market movers. here is what else we have for you at this hour. president trump holding a strategy session with the white house, after making strong comments about the state of our budget, saying our finances are really just a mess. what he plans to do about it coming up. also tesla, is coming out with

its quarterly report any moment. the stock is up 50% since december but can it survive a world without government subsidies? we'll bring you the numbers when they come out. iran is warning america to be ready for a quote, strong slap in the face. what does that mean, as it concludes tests of its military arsenal. ambassador john bolton how respond. cheryl: back to these markets. the ninth straight record close. we haven't seen this type of action for the dow since 1987. 30 years since we had this many winning streaks in a row. the dow closing near session highs up about 25 points to a brand new record high. let's go straight to adam shapiro on the floor on the new york stock exchange. adam, it wasn't a guarranty, touch-and-go, about 2:00 p.m. a little bit of a dip. there was some volatility. what happened? reporter: see it there on the chart, 2:00, we got the federal reserve minutes, meeting minutes

from the last federal reserve meeting. they talk about raising interest rates and talk about it gradually and they could do the the next meeting in six teen days. you see the dip. it closed about level we were out at 2:00 when we got that news. look at some of the stocks that did well today. there is big news about dupont and dow. eu regulators on track to approve that merger and both hit all-time highs today. in fact this is what, going to be the combined company $130 billion capitalization. both hitting all-time highs. facebook hitting all-time high today, not a bad day for them. they're negotiating th major league baseball to live stream a game a week. a lot of people paying attention to that. twitter won't be only one doing that thing. amazon, if you spend $50 and get $8 in discount. big thank you to customers.

apple moving in all-time high. moving into spaceship. giant doughnut. millenials call it a spaceship. we call it a doughnut. back to you. cheryl: thank you very much. of course another historic day on the street. all really that trump rally. the dow really has been since the election been doing amazing. you're looking at the 11th record close since the inauguration even for donald trump. 76% surveyed they believe their business will be postively affected by the new administration. these are business leaders, executives, interviewed by jpmorgan jpmorgan. hire to weigh in, jonathan hoenig, capitalist pig hedge fund and fox news contributor and kevin kelly recon capital partners. kevin, look at numbers, where we've been and where we were after november and the inauguration, is this all donald trump? >> i think it is and one of the reasons why it is not just donald trump though but it is also the legislature. we have the house.

we have the senate. they're able to effect a lot of changes. if you go back to the lasted a administration, business didn't have the confidence to lay out capital expenditures because one of the biggest things they got hit with was obamacare. it was a tax on them. so you even saw that came through on the jobs numbers where businesses of 49 people and less barely contributed to the jobs numbers, 12% of new jobs added. that will be a big reversal. companies are excited to hire more. it is a lot of confidence and this administration is focused on growth. we had mediocre growth, sub2% gdp numbers. this administration is targeting, 4%. that is another great news for businesses. cheryl: jonathan, the 28th record close since the election back in november. you get this jpmorgan survey even middle market executives, mid-sized companies, 80% of them are optimistic and think this rally will continue. there is a lot of optimism out there. >> tremendous.

cheryl, the market had been in all-time highs the summer before the election. but to your point since the election, optimism not to mention in the market has soared. this surge of optimism among professionals and ceos is almost tremendous, really historic. that tells me expectations are high, however. my only worry, i'm a trend follower, i think the market goes higher from here but expectations are high. fear is low. so if the president doesn't come through on some of these promises of cutting taxes, cutting gulation, that is when i fear we could see troubles for stocks. otherwise the sky is the limit. cheryl: things are good you have a beard growing which i haven't seen. looking good. president trump right now is leading a strategy affairs session and we're told tax reform and effort, tax reform and effort to repeal and replace obamacare are among the chief concerns of that meeting. i want to bring in fox business's blake burman. he is standing by at the white house with the latest from the white house. blake? reporter: chairman, this is the

third major meeting that the president held on this day. the legislative strategy session ongoing right now. and that comes off of two different budget meetings he hello earlier this afternoon with members of his senior staff. a lunch meeting. then another one in the oval office. the president today when talking about the budget described it as a moral issue an once again, he and the folks here around the white house are saying this. it will be in terms of the big-ticket items here, obamacare going first. and then tax reform coming after that. take a listen to the president and the white house press secretary from earlier today. >> health care is moving along nicely. it is being put into final forms. as you know before we do the tax which is actually very well-finalized, but we can't submit it until the health care statutorily or otherwise, so we're doing the health care. again moving along very well. sometime during the month of march, maybe mid to early march, we'll be submitting something that i think people will be very

impressed by. >> we've got obamacare, the budget and tax reform. it will be a very busy march and april for us. and we've been continuing to work with congress to make sure that's implemented. reporter: by the way you heard sean spicer say busy, it will be a busy day here on the economic front tomorrow as well at the white house. as many ceos in the manufacturing industry will be here. we're told the president and the vice president will be in on the meetings, cheryl. cheryl: a listening session. you hope they listen to the ceos, blake. you will be all over that tomorrow. blake burman, thank you. david: president trumps aiming to stretch the dollaa lot further under his leadership. take a listen. >> the finances of our country are a mess. our moral duty to taxpayer requires us to make our government leaner and more accountable. we must do a lot more with less. david: jonathan, leaner and more accountable, yet he is still going ahead with his plan for

the infrastructure which is going to cost billions much the last i looked, there was never an accountable infrastructure spending program. whenever the government gets involved in spending project whether local government or federal government, always unthe cable. >> bridges to nowhere. somewhat mixed messages to the trump administration. i was delighted to hear the president talk about spending, deficit and debt as a moral obligation. let's see some activities and follow through on this he talked about tax cuts. great. he talked about health care. great. what about spending cut? david: right. >> that is really issue here. your point of talking of a wall and infrastructure, frothing ears in terms of economist perspective, that is higher deficits. david: kevin, give the president credit, he has cut back on regulations tremendously. he has a outline, basic outline of a tax reform program, hopefully the sooner or better for that.

adding on is easiers than taking away. taking away whole bureaucracies he said he will do, draining the swamp, you're up against pretty entrenched interests inside the beltway. >> a lot of lawyers and lobbyists throwing special interests. david: how do you cut through that? >> here is how you cut through it. you have government agencies look what they can cut. guess what? "the washington post" reported on this about $150 billion could be saved by the department of defense. you can find that. david: sorry to stop mid-sentence. we have tesla earnings. reporting their foth quarter earnings. going right to adam with the numbers. what are they, adam? reporter: the loss was bigger than the street expected, 69 cents adjusted where street expected 43 cents. revenue is a beat. they came in at 2.28 billion. want to give you numbers here that investor will want to pay attention to. they say they expect to deliver 47 to 50,000 model s and model x vehicles the first half of this year but when you look at the report they're having difficulty

quarter over quarter in deliveries. vehicle deliveries in the last quarter 22,000. the previous quarter from that they were able to deliver 24,000. makes you wonder what is going on with production. but that revenue number has investors happy. in the after-market trading up 1.2%. david: interesting, adam, thank you. the panel is back with us with automotive expert lauren fix. good to see you. i have to ask you why you think it is the stock has been up 50% despite the fact that you have a president who said he is against the kind of subsidies many people say tesla is dependent on? >> you notice today when the market closed it was down over $4 a share. i think the market is starting to be very smart, when you purchasedsolarcity which is a loss, adding on to his losses, that is not helping. on top of this we believe scott pruitt, the new gentleman in charge of the epa, he could stop the carbon credits. the openly way elon musk is making my none any. david: let me stop you there.

lauren, is it true that is the only way he can make money? because a lot of people that like the cars. >> it is not about liking the car or not. you're in business to make money, right? david: right. >> if you're not making money you can't have a loss and make it up in volume. it can't happen. with a statement of half a million model 3s by 2018, no the a chance. they sold 450 total market, hybrids and evs. you can't take 100% of the market. it is not possible. david: interesting. kevin they're still losing money as we saw right now, they're losing money more than expected part of this because of their solarcity incorporation. this is another elon musk company. they incorporated into tesla. it is now no longer tesla motors but just tesla. was that a smart move or not? >> high capital cost embedded to it. the stock had a huge run-up 50% the last few weeks.

they will end up doing another capital raise with the stock at this level. that is another way to subsidize the business. david: i see. >> he alluded to that before. this is really tough, given the fact they want to use the same production line to do the model 3. they have had production issues. david: right. >> they will need to raise more money. david: remember all the years amazon was losing money. we know what happened to them. adam is looking more at the numbers. go ahead. reporter: this is really important. tesla vehicles in production have the hardware necessary for full self-driving. so in other words, every car they're producing now going forward is capable and they say full self-driving. the stock still continues to gain up1.6%. david: jonathan, that is a plus right? >> tremendous, david. your point is spot on. amazon has not made money. the stock is gangbusters, 10,000 percent plus over decade. i see exactly same thing as tesla.

david: you're such a free market guy, i'm surprised jonathan. you're so free market-oriented they haven't lied in part at least on government subsidies, have they not? >> yeah, david. the oil companies did we develop under president obama. at least a lot of my screens, clean energy companies, etfs like fan, tan, tesla, are doing very well right now much to my surprise. david: we started with negative comment from lauren. we end with positive comment from jonathan. thank you very much. cheryl. cheryl: new announcement from nasa. evidence we may not be alone after all. david: water flowing at a 100 years. portion of san jose, california are under water. thousands are evacuated. we check in with san jose's mayor as there appears more rain in the forecast. cheryl: more fallout from the mainstream media with the white house immigration orders even as more americans say they are against sanctuary cities. charlie hurt from "the washington times" will give us his take.

>> we have to stop calling these praises sanctuary cities. they're outlaw cities. they are safe spaces for criminality and people are sick and tired of it. with x1 you get the best of the oscars.

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expect ad reaction but this is really beyond the pale, is it not? >> it really is and what i think is most interesting, especially that headline from the "new york times," talking about assault on american values, well, all donald trump is doing here is enforcing the laws that are on the books that have been on the books for a very, very long time. david: right. >> and also, not only that, these are laws that have been supported by people like barack obama and hillary clinton. david: more than supported. they were pushed even harder by barack obama than donald trump. barack obama averaged with a three million deportations you had in his two terms, that was an average of 1000 a week. donald trump is much less than that. plus, trump is deporting 75% of the deportees are felons, with barack obama, the best he had, the best year he had was 52% were felons. so, i mean donald trump is doing much less harm if you will to innocents than barack obama ever did?

>> and also, david, don't forget, one of the reasons that the obama administration was able to claim more deportations than they were actually performing is the fact that they changed the definition of what a deportation was. david: right. >> if they did manage to turn somebo away at the border which was not ve freently, they would count that as deportation. that has never been counted as deportation before. david: charlie, i have to play a clip from something fox news did, while the mainstream media is doing what they do, our own steve harrigan from fox news channel is doing a terrific series of report. >> actual reporter. david: actual reports of actual people that deserve to be there is one woman in particular he talked about last night on "special report." let's play the clip, get your reaction. >> deported, came back. >> that means keeping out people like ma con concepcion she suppy

meanted $70,000 a year dealing meth with 900 in food stamps. david: repeat that, charlie. $70,000 a month dealing methaphetamine and getting $900 a month in food stamps, and illegal, living with another felon. you never hear these reports in the mainstream media, do you? >> you really don't. the reason that democratic politicians like barack obama and hillary clinton, the reason that they stopped pursuing this is because they suddenly discovered a whole new sort of voting block that they thought they could utilize to their benefit in among illegals or the hispanic voters. so they sort of changed their tune. but what i think is interesting exactly cases like the one you just mentioned, david, those things, if donald trump starts focusing in these sanctuary cities where the sanctuary cities are protecting people like that as the federal government is trying to do its job per the instruction of congress and voters, trying to deport these people, and it

turns out they're bad actors, donald trump will win that fight hands down. david: he already has. charlie, 80%, there was a poll out, just came out, "harris poll," harvard "harris poll," by no means biased to right, 80% of americans are against sanctuary cities. >> you watch. every single case that comes out where you have somebody doing something bad, feds trying to deport them, a city like san francisco, sitting down refusing to turn them over. the other thing interesting about all this. david: quickly. >> money that the feds give these cities, is often specifically designed to enforce those immigration laws. if those cities refuse to do that, then there is no way those sanctuary cities are going to win that fight. david: that fed money may be drying up pretty soon. charlie hurt, from "the washington times," thank you very much. charlie. thank you. appreciate it. cheryl. cheryl: mainstream media meltdown and that the press's job, control what people think? david: what?

cheryl: yeah. guess who said it. coming up next howard kurtz to tell us what he really thinks of that statement. to give the usa a quote, slap in the face? coming up former ambassador to the u.n. john bolton responds to the latest threat from iran and you might remember president trump listens to what he says. >> john bolton, we'll be asking to work with us in a somewhat different capacity. john is a terrific guy. we had really good meetings with him. knows a lot. he has a good, good number of ideas that i must tell you agree very much with. ♪ this is the silverado special edition. this is one gorgeous truck. oh, did i say there's only one special edition? because, actually there's 5. aaaahh!! ooohh!! uh! holy mackerel. wow. nice. strength and style. which one's your favorite? come home with me! it's truck month!

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cheryl: controlling exactly what people think, that is the job of the mainstream media, according to msnbc's mika brzezinski, not president trump. >> he is trying to undermine the media.

trying to make up his own facts and it could be that while unemployment and the economy worsens, he could have undermined the messaging so much that he can actually control exactly what people think. and that is our job. cheryl: howard kurtz, fox's media analyst. howard, is it their job to control what people think? >> looking at my twitter feed i'm doing a lousy job of controlling what people think. if mika brzezinski that president trump and mainstream media are having a struggle influencing what people think. bucontrol, i can only assu she misspoke, that is not by any stretch of the imagination is our job. our job report the facts. perhaps provide analysis. perhaps provide commentary in the opinion side of the business. and let people make up their own mind.

cheryl: i got to tell you, that whole conversation went back and forth. to joe scarborough. he compared him to mussolini and lenin. this is part of that schtick now, they're smarter than the rest of us and we should listen to them for how to think and feel and believe. >> what is surprising about that, joe and mika on their msnbc show did a lost interviews with trump during the primaries. then they went through a period estranged. they acknowledged having several private mights with the president. turn around and talk about lenin or mussolini, talk about control, fortunately in a democracy, no president or news organization fetes control. we all agree on that. cheryl: senator mccain eloquently said that over the weaken. a lot of journalists are worried about their safety. you have op-eds and blog posts from journalists around the united states saying we'll have some type of a putin moment with donald trump. i mean it has gotten a little ridiculous but do journalists

need to be afraid for their safety under donald trump? >> i think that is just hogwash. it is almost propaganda peddled by critics of trump. it can be inherently dangerous business to go into war zones and covering riots and crime that sort of thing that has been true for decades. i don't think that has changed because donald trump sitting in the white house. cheryl: howard kurtz, voice on all things media. we love his show by the way. thank you, howie. david: smart man. good show. democrats continue to blast the president, even trying to pull republicans to their side but will the constant ridicule and stonewalling vanely backfire? cheryl: plus, nasa making an out of this world announcement today. this is pretty cool. they made extraordinary discovery. that is coming up. ♪ just like the people who own them, every business is different. but every one of those busisses will ed legal help as they age and grow.

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he ♪ cheryl: the trump rally rolls on. the longest record streak in more than 30 years. 1987, guys. not for the s&p 500 and nasdaq and russ. david: sly and "the family stone," i live that song. secretary of state rex tillerson

is on the way to meet with president pena nye the -- nieto. >> i would argue we have a healthy relationship with the mexican government and mexican officials. we would echo the same sentiment. i think the relationship with mexico is phenomenal right now. there is unbelievable and robust dialogue between our two nations. david: that is not what the press says. we know the press hasn't told you everything in the past. here is the heritage foundation latin america policy analyst. anna, first of all look at the trade stats. mexico heavily depends on the united states. they send about $294 billion worth of goods to the united states. that's 1:00 quarter of its entire economy. gdp of mexico is 1.1 trillion. more than a quarter of their economy is relying on trade with us. we have them over a barrel, right? they don't have any bargaining position.

they have to do what we tell them? >> essentially. it is clear we benefited from bilateral relationship. moving forward into the negotiations, renegotiation of nafta and recalibration of the u.s. mexico relationship where we will and rightfully prioritize issues of border security and immigration, i mean we undoubtedly have the upper hand and we're negotiating from a position of power. feels great to know we have a president, right, taking advantage of that for sure. david: they need us more than we need them. let's talk about the wall though. >> yeah. david: for the moment put aside the issue who will pay for it. the fact is a lot of mex cans are here in the united states. they send money back to mexico. i've heard $24 billion. some figure like that. a huge part of that mon economy is the money sent back. if we put up a strong wall and deport a lot of ill legals that are here now. they lose a lot of money and

that money dries up, right? that is not good? >> remittances from families in the united states to families from mexico helped to alleviate and take the burden off the mexican government, whether it is social services or whatever. we should rightfully, like president trump rightfully said we're looking to deport criminal aliens. david: right. >> we're looking for people who are violent criminals. that should definitely be the priority. i think regardless -- david: for some of those meth dealers have a lot of money they'rsending back to mexico. >> 100%, of course. there is definitely a lot of money in the illicit narcotics industry. that is multibillion-dollar industry. david: let me ask the 20 billiondollar question, who does pay for the wall? >> i think border security is something, and updating the border and making the border more efficient is something both countries definitely need to look at. nafta has been in place 20 odd years and we need to update nafta. we need to recognize, the

mexican government undoubtedly recognizes the importance of border security. look on what they're doing on their southern border of guatemala. that is reason we're not seeing number of central american migrants coming. whatever form the wall takes place. david: in many ways we have a much tighter control immigration policy if you're a foreign try getting a job, good luck. >> 100%. david: thank you very much. appreciate you coming in. cheryl? cheryl: predicting a split for the gop. democrat nick minority leader chuck schumer says that angry republicans will soon break from president trump. >> when you talk to republicans, quietly in the cloakroom and the gym, they are having real problems with him. my prediction, he keeps on this path which is likely, i don't think he will change, within three or four months you will see a whole lot of republicans breaking with him. >> i hope so. >> that is the salvage of america. cheryl: here is kirsten haglund, conservative political commentator and leslie mash sal,

liberal political commentator and fox news contributor. i love you both. due believe senator schummer? >> what is so ironic, cheryl, senator schummer talk about the possible division and break up of the republican party where the democrats have their own fish to fry in this area. you have very, very old bench in the democratic party. you don't have ton of young people. very few are not exercising leership the wing of very liberal, bernie sanders voters are a huge part and are really driving the democrats right now and that is not who the american majority is in this country. very ironic. but of course not, the thing about republicans they have gone through and have their divisions. and you see what is going on at cpac. they do support him and they will and make the government more efficient and work well as possible. your point like a family. we all disagree with our family at some point. i want to get your reaction to what maxine waters added on to the theme. listen to this.

>> i just think the american people had better understand what is going on. this is a bunch of scumbags. that is what they are. >> those are very strong words, congresswoman. >> all around making money. cheryl: leslie, scumbags, a little harsh. >> well, first of all name-calling regardless which side when you're elected official is not other thanly low but it is, when they go low, we'll go high. it doesn't feed into that narrative but what she is saying is not something just democrats, if you look at town halls are expressing. the majority of americans want the president to release his tax returns. the majority of americans want to really know what happened with russia, was there tampering in our elections. there are many trump supporters especially here in the state of california who, like their health care, obamacare and want to keep it. who do not want a wall. do not want mass deportation. most trump supporters i know here in cali and throughout the country, voted for him to improve the economy and bring

jobs back. they're not seeing a lot of that and they're angry. the republicans have more to lose here because the republicans have the majority. the democrats don't. cheryl: kirsten, both to you first, kirsten, seems to me both parties have something to lose. >> oh, yeah. cheryl: if they continue this name-calling and frankly juvenile behavior. >> absolutely. that is what they're doing in the press. we see them every day talking about this. what journalists want to cover in those white house press briefings. at the end of the day you're right, they are ones that will have to make the changes. however i will point out in 2018, democratic side, those senators have really difficult map. they're in a lot more danger of doing exactly what the gop did under obama and they got so mad at them for doing, for stalling absolutely everything and obstructing paying for it in the midterms. both sides have got have key players to come on to common ground even if they don't admit i had on television. cheryl: leslie, last word. >> there is difference between

democrats and republicans coming together and republicans coming together to get behind the president. who had unpresidential behavior. who outright lied. offended key allies leaders in the nation. that doesn't help the reputation for the united states. republicans will care more about their job than their relationship with donald trump. you watch come, august being september. cheryl: there is a lost fish to fry in all of this. kirsten, leslie, we all get along. >> take outside of the beltway. take it outside of the world. we may not be alone after all. nasa making a major announcement. european scientists discovered seven earth-sized planets orbiting a earth size star like our sun warm enough for liquid water to exist, key element for life. 30 astronomers from eight countries are working for eight years to verify. cheryl: in a year we'll need to go there. david: maybe sooner than that. cheryl: worst flooding in a century.

severe storms beating down on california once again, forcing tens of thousands to leave their homes. coming up next we have the mayor of san jose, california, speaking out on the recovery efforts and when resident will be able to hopefully return home. ♪ dear predictable, there's no other way to say this. it's over. i've found a permanent escape from monotony. together, we are perfectly balanced, our senses awake, our hearts racing as one. i know this is sudden, but they say: if you love something... set it free. see you around, giulia ♪ i love how usaa gives me the and the security just like the marines did. at one point, i did change to a different company with car insurance, and i was not happy with the customer service. we have switched back over and we feel like we're back home now. the process through usaa is so effortless,

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david: the city of san jose, california, facing the worst flooding it has seen in 100 years, forcing 14,000 residents to evacuate as coyote creek has overflowed leaving 40 homes underwater. fox business's hillary vaughn is live from l.a. with the latest. hi, hillary? reporter: hi, david, as many as 50,000 people are evacuating their homes as the flood of the century takes over northern california. here is what caused the overflow. heavy rains filled a local reservoir which breached its wall and began pouring into the creek below. check out the images from our chopper cam. you see the brown water gushing

through the street and overpouring garbage and sewer lines. 200 people were rescued after deluge of water drowned homes and cars. residents had no warning coyote creek was overflowing until it was two lates. boat navigating door-to-door to get rescueees out. they were rinsed with soap and water before being bused to shelters. no word when people are allowed in their homes. they're still focused about getting people out of harm's way. david: awful situation. hillary vaughn, thank you very much. appreciate it. cheryl? cheryl: actually we are joined right now by san jose mayor, sam liccardo, he joins us via phone. may, thank you for joining us. >> it's a pleasure. cheryl: one of the things i want to ask you first, our reporter said a lot of those people along the creek, we heard them this morning saying it happened so fast, they didn't get any warning and, that was obviously frightening but destructive to a

lot of the homes along the creek. have you figured out yet today why they weren't warned that the creek was overflowing as bad as it was? >> well, warnings did go out through various forms but it is obvious not everybody got those warnings and there is a real failure there that we need to understand better so we fix it going forward. the clearly the first time residents are hearing that there's a need to evacuate is when they are greeted by a firefighter in a lifeboat, then that is too late and there is a real problem there. cheryl: mayor, do you have any idea at this point how many homes have been damaged? and also how many evacuations are still mandatory at this hour? >> we've evacuated 14,000 people, and we've got a discretionary evacuation over much larger area, more than 30,000. at this point we were fortunate that no one has been harmed, there is no loss of life.

that is real testament to our first-responders, particularly our firefighters who saved several hundred people through lifeboats. great effort by a lot of very tired first-responders, but really no word about when we can get folks back because we're not out of this yet. we have another storm coming in on sunday. cheryl: i was going to say you have more weather coming in on saturday and sunday. we're looking at forecast, it is rain all day saturday and all day sunday. that will be another problem for the bay area as a whole. i want to ask you about traffic. the 101, 280, those are major thoroughfares. you are the heart of silicon valley. what about highway and closures? >> we're opening a couple lanes on northbound 101. lanes particularly southbound are still closed. we're going to need to see the water drain out of those freeways before we can get them open again. cheryl: just so our viewers know across the country, 101 between

san francisco and san jose is the road to get you between those two major cities. really quick, as far as the weekend goes, what kind of preparations are you putting in place? >> we'll be very vigilant. certainly in those low-lying neighborhoods where we see high-risk we'll continue to keep people out of those nabe bods and have them secured with police officers to make sure there is no looting. and we'll have to do everything we can to provide people the kind of a warning they need and other areas to be able to get out safely. cheryl: mayor liccardo, thank you very much for joining us. i know it has been a busy and difficult day for you. we appreciate it. >> thank you. cheryl: the 101 is shut down between san francisco and san jose, all day. david: that a key road, as you point out in silicon valley a lot of businesses could be affected. threatening to give the united states, a strong, quote, slap in the face, why iran is putting americans on notice. next, former u.n. ambassador to the united states john bolton

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david: breaking news. senior administration official telling fox news's john roberts what is likely to be be in the new executive order on extreme vetting. this will come down on friday. it is going to include the same seven countries as the original order. the new order will drop language regarding indefinite suspension of syrian refugees. they, the syrians will no longer be singled out. it calls for temporary suspension of admission from refugees from any country until things are put in place. those countries don't have the facilities in the future only

refugees from countries whose vetting procedures meet standards set by the united states will be allowed in. former u.s. u.n. ambassador, john bolton and senior fellow at american enterprise institute and has good connections with the trump administration. we heard donald trump heaping praise on him, that there will be a place in the administration someplace we're happy to say for him. about this new executive, order, ambassador bolton, first of all, they say we don't have to provide anymore evidence why these seven countries are put in, specifically singled out because the obama administration already did that. do you think that is enough or will another court reject that claim? >> well, it should be because after all, this goes to the heart of the executive branch's authority to ascertain and declare threats to the united states. when you have people in black robes saying, well, i don't think x is such a threat, you have lost control of the president's ability to carry out his functions. let me give you one example.

it astounded me in the ninth circuit argument, this apparently didn't come up, iran has been on the list of state sponsors of terrorism for decades. so to me, given that government's duplicity, anybody coming from iran is subject to scrutiny. david: although we should say this particular new order, john roberts is telling us, specifically exempts people who have legal status from one of these countries, that is green cardholders. i'm not sure if that includes h1b people, the specialized workers that some companies are allowed to get in. are you? >> well i wouldn't be surprised if it does, and i think that was one of the objectives of the revision to take away more egregious examples that people could point to why the order was out of bounds. but i must say, i think the executive authority in relating to the entry of aliens into the united states is especially when backed by congressional legislation as the first executive order was, i am very

wary of having the judiciary get involve in it. i think it is way beyond their competence. david: particularly when they rewrite the law to include stuff not in the original law which is clearly what the ninth circuit panel did. you mentioned iran. iran says you know, revolutionary guard commander just threatened united states, and i'm quoting him now, with a strong slap in the face after president trump placed tehran on notice following their launch of a bay ballistic missile which is against a u.n. edict ainst them. how do we respond, ambassador? >> i think they're testing and probing the new trump. candidate trump was extremely critical of the new deal but the deal has not been abrogated. the ayatollahs are seeing how far they can get. this is very crittal time, where the president is faced with a lot of priorities in the early days needs to come to some strategy here long-term, and

near term as well how to deal with this iranian threat,orist. david: unbelievable situation we have here. ambassador bolton, i hope you let us know as soon as you get a job there. they clearly want you. the president is talking about what a great guy you are. how we have to find a place for you there, i know you can't talk about it. >> let me know if you hear anything. david: okay. i'm sure your sources are better than mine on this particular subject. ambassador john bolton, wonderful to hear from you. thanks for coming in. cheryl. cheryl: political balancing act on college campuses. one lawmaker push to make sure schools are diverse enough, starting with political affiliations of its faculty.

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>> creating partisan balance, an iowa state senator is proposing a bill that requires teachers it doing close --

disclose for. fall within 10% of each other to which i say good luck. a liberal arts college, these days has no tolerance for liberalism. >> is that even legal. david: "risk & reward" starts now. liz: secretary of state rex tillerson and homeland security secretary john kelly in flight to mexico. this after a day white house announces tougher illegal immigration reforms, including a law enforcement hiring surge. end to catch and release policy. now this, just in, details on what is likely in the new executive order on immigration. we have it all, welcome to "risk & reward," i am elizabeth mack donald i