it will be driven more so by earnings and valuation. in other words by internal issues, than external issues. range of outcomes is difficult to forecast. it can be rather nasty. ♪ closing close -- [closing bell rings] liz: earn any thank you very much. david: do you reversing gains sharply this afternoon when startling new. >> reporter: came out of north korea. i'm david asman. melissa: i'm melissa francis this is after the bell. we have all the details in this very busy hour ahead. nuclear north korea. details of a new report showing the nation may now be cape ann of launching a minaturized nuclear war ahead. the president -- warhead. the president responding with a warning moments ago. >> north korea best not make

anymore threats to the united states. they will be met with fire and fury, like the world has never seen. he has been very threatening, beyond a normal statement. and as i said, they will be met with fire and, fury and frankly power, the likes of which this world has never seen before. melissa: so there is that. we'll have more on all of it. a live update from the pentagon coming up. more breaking news from disney, ending the day higher. but details from its latest report out any minute now could change things for tomorrow of. the plight of espn is once again in focus. we'll bring you numbers you need to know when they come out. david: back to the markets. the dow plunging as reports came out about north korea nuclear capabilities. nicole petallides on floor of new york stock exchange. nicole, did the north korean news weigh in on this market?

certainly seemed to. >> absolutely. look at intraday chart right around lunchtime the news about north korea's capabilities that started to weigh on the markets. we had been up 60 points on the dow jones industrial average, moving to the end of the day. you see president trump's tweets and comments, moved down to the bottom of our trading range, which is minus 61 points. recouped half of that. the dow is down 32, after nine straight closes of records, well today, there is no record close. however we did hit an intraday record high on both s&p 500 and the dow. but one area that shows strength is retail. those retailers that have been crushed by amazon, online shopping, promotions and the like, did so well today. michael kors up 21.5%. polo ralph lauren up 13%. both came out with their quarterly numbers. ralph lauren you fewer discounts helped them along.

coors doing well in north america and europe. those retailer shined. dean foods. think of number one milk pros -- processor. the worth selloff in 20 years. this is sales of milk. they have trumoo land o' lakes. this is parent of all the companies. that got hit hard. the vix, which keeps closing below 10. it moved up with a pop and closed 11 and change. you can sense a little bit of jitters at the close. david: if it wasn't for north korea we would have been positive. thank you. melissa. melissa: investor weigh more details on opec. owe wrapping up the two-day meeting today. concerns remain over the global supply glut.

david: so will the gloom and doom get worse or lighten up a bit? today's market panel, gary kaltbaum from kaltbaum capital management. also a fox news contributor. lenore hawkins from tematica research. gary, recovered a little bit. down 33 on the dow. nasdaq went down much further. will tomorrow be a better day or will things get worse? >> i think the market is in good stead. it's a little overheated here in the short term so maybe it pulls back. leave no doubt, when you talk about fury and the world has ever seen, people have this idea of hiroshima. all of sudden you get all worried about something like that. definitely north korea is in play to a certain extent. i tell you overall the market is okay in here. i haven't seen anything that tells me we're getting in big trouble anytime soon. david: lenore, this is tough president. a lot tougher than his predecessor. probably tougher than george

bush was. is that helpful? is that seen as a good thing by the markets or not? >> i think what will be tough for the markets we don't really know. he sound tougher. he talk as lot tougher but also had a much more volatile administration so far. we really don't know so far. david: how does he mcyou feel, lenore? how do you particularly feel? do you think markets ride this through because of a strong guy in the white house or just the opposite no i think policy by it twoer is a little unnerving for the markets. at white house not everybody is on the same page. that makes for increased volatility. when we look at markets, we see such suppressed volatility. if you go back lifetime of the vix, all the times it has been below 10, over 60% of those have been this year alone. when you have suppressed volatility for that long of a time at some point if you go back to the mean you will have to have hypervolatility. that has got me nervous.

melissa: d.c. gridlock is paralyzing corporate america. research revealing uncertainty in the nation's capitol is forcing companies to put important hiring investment decisions on hold. this is according to "the washington post," lenore. this is exactly the opposite what we had been hearing up until now. that business had been taking risks because they felt like those tax cuts were on the way. they felt like this administration would allow them to get their business done. are we now seeing the inverse because congress has proved itself once again to be wildly inept? what do you think? >> well, when we came in we got the trump bump. everybody was excited. we'll see deregulation, tax cuts. it would be great for the economy. we'll see inflation return and economic growth come back. that was putting awful lot on administration dealing with a congress that is dysfunctional. melissa: i have to put you on hold just a second. we have breaking news. disney reporting third quarter

results. we want to go back to nichol for the numbers. what do you see? >> earnings per share, by the way they're making an acquisition. that is big news. ending streaming deal with netflix. that is the top number one news. shares are down 2.3%. , per share coming in slightly above what was expected. we saw 158 versus 155. 14.24, versus 14.42. looks like revenue came in a little bit light. the news is all about netflix and major league baseball events media that was formed. this is what we're talking about bam tech, they are making a big investment in that. ending their deal with netflix for streaming. now they do have to wait for regulatory approval to do this deal but this is a big one for overall, for disney. everybody wanted to know what was happening with their different areas.

they have media, networks, consumer interactive studios, the parks. we'll break it down one by one. this is not the headline of espn losing more subscribers. everybody is tired of that. so they needed something new to show that they're going to be, reading the report, they will have to show how they will grow. this may be a way to do the. major league baseball advanced media. they have to await regulatory approval on this one. melissa: can't wait to see the parks numbers. it has a huge influence next couple quarters. we'll go back to you on that. gary and lenore is with us. kevin mccarthy movie critic and fox news contributor. kevin, what do you think of what you just heard? >> i think disney is obviously going to have an amazing year regardless any numbers coming out. "star wars" coming out with december, clearly and thor

ragnorak. melissa: what do you think about netflix and this acquisition? >> netflix deal is smart move. i'm not too familiar with the netflix acquisition. more like on movie reviewing aspect of movies. melissa: okay. >> i think that the, i think it's a smart move. melissa: definitely. lenore, as he mentioned, they're just killing it with "star wars." there will a "star wars" park. that looks like it was the smartest deal that was ever hatched. what do you think about what you have heard? >> marvel deal as well. melissa: right, of course. >> what, 4 billion for that? i think they have had a 3 billion, for the 12 movies. that is 3 billion they spent to produce those 12 movies has generated 12 billion in top line revenue. so that is all good. i will be curious to hear the reaction to amazon getting the deal for 10 nfl slots. melissa: yeah. gary, obviously the stock is down. i guess investors are looking at a miss on the revenue side. do you see that as maybe an

opportunity given all the stuff they have going on? >> here is the problem, when you do $55 billion in sales, even with "star wars" it is very tough to grow a company. for this quarter earnings were down, sales were flat. i'm not so sure it gets that much better going forward. look, these moves they're making on the streaming side, that is because they have to. they have no choice at this point in time. there is massive competition, competition for people's eyes and ears right now. it is a very tough environment. disney one of the greatest brand names in history. they are a colossus, they are a tough to grow going forward. the stock will be average going forward. melissa: kevin, respond to that from an entertainment point of view. do they have stuff going forward that is on a bigger blockbuster than so far? >> big is them, "beauty and the beast," guardians of galaxy

volume 2 and cars 3, and i think the films in the disney plate as some of the films in the warn are brothers slate, but i think this is coming up, thor:ragnorak will be huge. "star wars" opens in december. a lot will fall into first quarter of next year. melissa: without question. we want wait to see it. kevin, thank you. nicole, she has a little bit more on these earnings. nicole. >> break it down here. we are watching for any news on the box office. they had a lot of winners, "guardians of the galaxy." i don't know which one you have seen, "pirates of the caribbean" and "cars" 3. we'll talk about the cable network revenue for the quarter, decreased 3% to 4.1 billion. also the costs that they were facing over at espn ultimately, they had rising costs, not as much advertising, and talk about contractual rate increase for nba programing. so the decrease in espn was due

to higher programing costs, lowered a revenue. david: nicole, this is david here. can you hear me? i'm looking at quarterly operating income at cable networks decreasing by 23%. melissa: she said that. david: that is an enormous number. >> 23%, operating income decreased by 23% to 1.5 billion. depends how you break it down. also the last thing, parks and resorts, whether you love them or hate them, but here it is revenues for the quarter increased 12%, 4.9 billion. seems to be a bright spot for disney. david: yeah but cable is definitely not. that may be why the stock is down about 3 1/4%. gary and lenore is with us. bring in media journalist john friedman to discuss espn. i'm assuming, i haven't seen the espnbreakout, i'm assuming that had a large part to do with 23% decline in cable, right, john?

>> you bet. espn is the face of disney television prays but abc too but espn they think is hipper version of television but not anymore. espn needs relevance. espn is yesterday's kind of innovation. david: lenore, sometimes businesses get fat and happy if they have a corner niche in the market. they used to have it with espn but not anymore. those companies that get fat and happy can't change. >> no. media networks account for 45% of disney's operating revenue. particularly espn costs are very difficult to cut there as they're getting a hit to their revenue. what we're seeing is about a 3% annual attrition in subscribers, in you viewership to espn. it is outdated model. that will not be easy one to do no matter what they do on movie side. >> netflix, everybody loves it. it dropped 5% today. now down 3% after-hours on disney news they will not stream

with them anymore. that deal will end in 2019. now netflix is dropping 3%. melissa: that is a great point. david: long legs to the story. thank you to everybody. appreciate it. melissa. melissa: attorney general jeff sessions fighting back, blasting chicago mayor rahm emanuel over his sanctuary cities lawsuit. this as one major u.s. city abandons its sanctuary status and now is working with federal officials. florida congressman ron desantis weighs in. david: north korea, apparently readying itself for war. the nation may now be capable of launching a nuclear warhead on the icbm. the latest details live from the pent -- pentagon. retired general thomas mcinerney responding here next. ♪ ♪ ♪

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melissa: president trump speaking moments ago of the opioid crisis in america and the steps the white house is looking to combat it. >> we're also very, very tough on the southern border where much of this cops in. we're talking to china where certain forms of man-made drug comes in and it is bad. we're speaking to other countries and we're getting cooperation but we're being very, very strong on our southern border. david: of course the president also talking about north korea today. "washington post" reporting that country now has the ability to make missiles capable of carrying miniaturized nuclear warheads. here to comment fox news pentagon producer lucas tomlinson. it is more than "the washington post." others confirmed this information from one of our intel agencies, right? >> well, that's correct. both japanese and pentagon officials are not pushing back on this new dia report first

reported by "the washington post." it also echoes what a top u.s. air force officer said just two years ago in washington when he said that north korea does have the ability to miniaturize a nuclear warhead and place on top of a missile but it is noteworthy that north korea still has to demonstrate that operationally, something the u.s. military does four times a year with its long-range intercontinental ballistic missile tests. they hit a specific target and warhead reenters the earth's atmosphere, something north korea has not demonstrated the ability to do. look at last major north korea ballistic missile tests. july 4th, first time north korea successfully tested a intercontinental ballistic missile. it flew 1700 miles into place in the air for 39 minutes. they designated the missile the kn-20. three weeks later the north koreans launched a long-range,

intercontinental ballistic missile that went higher, 4300 miles and was in the air 43 minutes. was longest and fartherrest missile test in the history of north korea. the u.s. military has ballistic missile defense. there are interceptor missiles at two air force bases in alaska and california respectively. in late may the u.s. missile agency successfully shot down a ballistic missile in space launched from the pacific. a month later the u.s. navy conducting a ballistic missile test from a guided missile destroyer from the uss john paul jones, that test failed. which raises questions what comes next. a lot of people think there are no military options however the top general for the u.s. special operations command says one exists. it is $600 billion option. david: whoa, holily mackerel. lucas, thank you very much. melissa. melissa: here to react

lieutenant-general thomas mcinerney, fox news military analyst. what do you make of this you just heard? >> certainly complicated our problems, melissa. there is no doubt they are on a faster track than initially thought thanks to the obama administration. now we have to move into very difficult situations. number one i would form a pacific area treaty organization just like we have nato composed of south korea, japan, australia , new he see land, thailand, philippines and maybe formosa. but the more important thing is we must be prepared for both a conventional and a nuclear response to this growing threat. melissa: does it make sense, i guess the question now is act sooner rather than later with a military response? there are obviously a lot of people saying that we need to put more pressure on them through china and with sanctions

but at what point do you say, now they have seem to have so many weapons it has gotten to a dangerous place where we have to do something very definitive to stop the advance? >> i'm from the john bolton school of diplomacy, melissa. i do not believe the chinese are going to help us until maybe the very end. melissa: yeah. >> they created this monster. let's not kid ourselves. they gave them the technology along with iran and others that have enabled north korea to get where they are. so i would start building up our forces in the pacific and hopefully we would get our allies to participate in this buildup. melissa: what do you mean they won't help until the very end? what is the very end in your mind? >> i think when they see we're going to destroy north korea either conventionally or with nuclear weapons, they will finally see they created a monster. that they have to rein him in. melissa: i'm afraid you're right about that. general, thank you for joining us. we appreciate your insight, sir. >> thank you, melissa.

david: a little brief on disney, shares are dropping 3% after-hours after releasing the third quarter results. the company is announcing it is ending its agreement with netflix for subscription of streaming new releases. that took its toll as you can see on the after-hours trading. melissa: absolutely. the trump administration focusing on a new threat from north korea. we were just talking about that, and an opioid crisis hitting america hard. senior counselor to the president kellyanne conway and health and human services secretary tom price are getting ready to hold a press briefing in bedminister, new jersey. we'll take you there live as soon as it begins. why was former attorney general loretta lynch using a alias email account? jordan sekulow from the aclj was part of the group that uncovered lynch's alias, he is here next. ♪ hold on dad...

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david: so is health care reform remains at a standstill, americans are hoping we'll have more success with tax reform but charles krauthamer has a warning, take a listen. >> we are so far behind on tax reform, and also incidentally on infrastructure, that we may not get a tax reform at all. the best we might get is tax cut, because everybody agrees on tax cuts. that could blow a hole in the budget. so i think rocky days ahead. david: here to respond, art laffer, former economic advisor to president reagan. so, dr. laffer, what do you think about dr. krauthamer's warning? >> i love charles. he is wonderful, probably most intellectual person in ages except for you, david. forgive me. david: please. >> a love, lovely, but he is totally wrong that this will lead to a hole in the budget. he is wrong, wrong. if we cut the corporate tax rate, to 15%, from 35%, just for

that would pay three times over for goodness sakes, 10 years it would. phenomenally positive pro-growth stuff that will lead to surplus. did we have tax increases during kennedy? that is why we had a surplus? do you think we had tax increases with reagan, that is why we had a surplus? no. economic growth led to -- david: you're sensible because you're out of the beltway. not everybody inside the beltway thinks like dr. krauthamer does. grover norquist thinks we'll get successful on tax cuts, not whole tax reform, chewing at a bit for the taxman. maybe corporate tax rates. maybe simplification, what do you think? >> yeah i think we get a corporate tax rate, to be honest with you. that is where we get pump of adrenaline into the heart of the economy. that will send the economy soaring. that will make us competitive with the rest of the world. all businesses moving into the u.s. it will be nirvana!

just joking. it will be very good, david. and that is the one that really we need now. david: what about smaller companies, art? what about the non-incorporated companies. subchap are ss, et cetera, will their rate be lowered? if it is big corporations get the break and little guys don't, that doesn't seem fair. >> chapter s companies don't pay corporate taxes as it is. what do you want? they pay personal income tax. they are pass of this through corpses. how can you cut a tax already zero? david: if we have the corporate tax cut down to 15%, shouldn't we guarranty smaller businesses also get that cut? >> yeah. well they should before they get it to the person. but what they do, they get profits right to the individual himself. now should all the people who get paid dividends from the big companies not pay personal being income taxes on that? i wouldn't say so. david: what about us regular folks that pay individual tax rates over 50% when you add everything in? will we get any kind of cut in

the first going at this. >> you know i feel very sorry david, for i do, working for such a small business as fox. david: anybody who pays taxes, anybody who pays taxes feels they deserve to pay less taxes. >> yes they do. i think we should have a flat tax across the board the way jerry brown potatoesed it in -- proposed in 1992. david: do you think individual tax rate kits? >> i don't know individual tax rate cuts this year. wow! bell get tax cuts in 6th, 7th, 8th. david: that is pretty far offer. >> come on. i'm 77 david. you're a youngster. you will be able to make it -- david: 7th year of donald trump? you don't think any sooner than that? >> i didn't say that. i just don't want to lead to false expectations. david: after saying we'll have nirvana? what about simplification, art? we have seven individual rates. shouldn't we be down to three rates mnuchin and other economic team members want? >> three rates are clearly

better than seven. i think we should have one rate to be honest, one flat rate, everyone just like jerry brown did. 13% from the first dollar to last dollar. everybody pays same rate. david: they keep repeating mantra, mnuchin and gary cohn, simplification will be at the heart of our tax plan. do you think they will get it now? or will it be a couple of tax rate cuts? >> i think we will get simplification. i think we will get rate reductions. i think we'll get corporate rate. i think we will pass healthcare. now if you think it is all going to be done this year, i don't think so myself but if it is done next two or three years, life is long, long run. it is a marathon. david: i know. once you get the tax cuts the economy comes roaring back. we saw it happen before. sooner the better. melissa: we want them now please. >> i want them now. i like chocolate. i want my chocolate you now. david: this is more than chocolate. the economy needs it. >> i'm with you 100%, art laffer, we love. >> you thank you, david.

melissa: sad breaking news for you now. legendary country singer glenn campbell passed away after a long battle with alzheimer's. he was 81 years old. our thoughts and prayers go out to his family. take that. a breathe right nasal strip instantly opens your nose up to 38% more than allergy medicine alone. shut your mouth and say goodnight, mouthbreathers. breathe right.

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withhold federal grant money to sanctuary cities. sessions says chicago should adopt a tougher immigration policy as it battles with one of the highest murder rates in the country. joining us now republican congressman from florida ron desantis. sir, thank you for joining us. what is your take on this lawsuit? it is sort of amazing that they don't want to follow federal law but they would still like to have federal dollars. >> that is exactly right. here is jurisdiction that does not believe in complying with federal immigration law and yet they want to have these law enforcement grants. i think attorney general somethings is right to say you guys got to get with the program otherwise we'll turn offer the spigot. the fact of the matter is, when you don't enforce federal immigration laws you of course will have more crime in your jurisdiction because if you enforce the laws, criminals would be deported before they go on to commit crimes. but i think it fosters a disrespectfor the rule of law that is not conducive to having

safe communities. melissa: what do you think about the idea they say it has chilling effect on the whole immigrant community? when there is crime going on they won't come forward if they're being abused? this is very common argument they make all the time. they won't come forward to be witnesses in crime they have seen. they won't help police and actually hurts police work? >> i don't think that needs to be the case. melissa somebody is committing a crime and they get arrested and brought to the local jail and get booked, checking their immigration status makes a lot of sense in that particular instance. particularly if they're convicted of crimes here illegally you have to let i.c.e. know so the people are removed from the country. if you have a run of the milcoming up to a report a crime, you don't sit there to check their immigration status. that is not the way it is. i understand why people say that. but i think in practice that is not how this stuff works. melissa: so one of the other arguments being made it is very hard on the law enforcement officers who are out there

trying to do their job. now they know their mayors are, you know, they're in these liberal cities. they will not comply with this law. so then that local law enforcement is one who is punished an doesn't get the money they need for things when they're sort of caught in the middle of these two battles, how do you feel about that argument? >> well look, i think it is unfair to rank and feel officers doing their job. the question who to blame for that? you don't blame jeff sessions for enforcing law and order. you blame the political leadership in those cities for insisting on lawlessness. so they're the ones that are to blame, not jeff sessions. melissa: miami in your state of course is taking the opposite stance giving up its sanctuary status. what is the dialogue like down there? what are people in florida saying about all of this? >> well look, i think the mayor looked at it, and said, here we don't want to be obstructing federal law.

we want to get the grant money. understand what we're asking the, federal government is asking local communities to do, not to convert every police officer to immigration agent, far from it. if you have somebody going through your justice system and person is here illegally they get convicted of a crime, we have to deal with reality to let i.c.e. know so the individuals can be processed and returned to their country of origin. melissa: congressman, he desantis, thanks for joining us. >> thank you. david: common sense when it breaks out in some parts the country. breaking news, north korea is growing the nuclear program at alarming pace. growing signs that the rogue regime is ready for war. kellyanne conway and health and human services secretary tom price about to hold a briefing in bedminister, new jersey, where the president is. we'll take you there live when it begins. ♪ copd makes it hard to breathe.

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david: as promised kellyanne conway and health and human services secretary tom price are speaking to the press in bed anyone sister, new jersey. this is the new jersey white house. let's listen in. >> that we see the number of overdose deaths and number of individuals addicted to medication decreased and and he has made certain we understand and appreciate this an absolute priority of his administration as it has been from day one. one of the things we've done to try to bring a voice to it and bring faces to it is to go around the country in multiple states and to visit communities and try to find those best practice, what's working out there, what hasn't worked. talk with those families that have been devastated by the addiction crisis. talk with folks who have been addicts and have recovered.

what is it that worked? and it is so uplifting and inspiring to hear the stories of many of those individuals. one of the president's senior counselors, kellyanne conway, accompanied me on many of those trips. she was at our meeting today. i know she wants to say a few words as well. kellyanne. >> thank you, secretary price and it is very nice to have the acting director of omdcp richard obama -- baum as well. the secretary and i traveled to number of different states and we heard harrowing and sad stories but increasing met those who successfully gone through treatment and recovery. we're heartened to learn that many people beating opioid epidemic. we recognize this is a polly-drug problem in our nation. we are a nation that consumes legal and illegal drugs at very high and alarming rate. the problem is have complicated. currently we're on the losing side of this war.

with the president's leadership and first lady's involvement across different spectrums of cabinets and agencies, different departments in the west wing, we're confident we can help those in need across this country. we know that this involves public health, the medical community, health care delivery system, law enforcement, education, local and statewide elected officials, devastated families and those in treatment an recovery. we have presidential leadership on this issue but we full on know most of the great work is done at the state and local levels, those close to the need know best how to help them. we didn't get here overnight and we know we can't solve the crisis overnight either. i would like to bring attention to other areas with respect to the opioid and drug epidemic that sometimes go uncovered. 52-point% increase in outpatient veterans he treated for substance abuse disorders from

1995 to 2013, it is an increasing concern that addiction is plaguing our veteran community as well. we're working with secretary shulkin on that. the next generation of crisis is being seen in number of newborns that are born addicted to opioids and other drugs. in fact in this country now, nih estimates that every 25 minutes a newborn is born addicted to opioids. we are working hard on to also stop the import of fentanyl into this country and work with those governors and health commissioners and others within the states who are interested in reducing the number of pills and days in a prescription an also in, working with curriculum so our medical professionals are more educated and more conversant and versed in prescribing methodologies as well. president trump and the administration are working tirelessly toward this and i would just say that having

traveled this country and studied this issue very closely no state has been spared and no demographic group has gone untouched. this is not a young or old, black or white, urban or rural, it has attacked our communities in varying degrees. this is issue in search of bipartisan support and bipartisan solution. we do hope those in the position with advocacy and solutions and those charged with covering this issue as well will agree it is non-partisan in search of bipartisan solutions. thank you very much. >> happy to take a question or two, yes. >> secretary, a couple of questions. several attorneys general, including some republicans said manufacturers of opioids should be sued and are culpable or should be legally culpable for parts of this crisis. do you agree with that if what is the administration's

orientation to those laws? >> there are a couple suits out there already have been begun. i think that this gives voice and punctuates the damage and the harm that people have felt because of this crisis. there isn't a position that the administration has on these, on these suits at this point, but it is clearly gotten the attention of the pharmaceutical companies. some of, have analgized it to the the tobacco issue and master settlement that occurred, 20 years ago with the issue of tobacco. whether this is something analogous to that i don't know. >> [inaudible] >> what i see is that there is, that we continue to move in the wrong direction on the number of individuals that are not only addicted but the number of individuals that are losing their lives to addiction.

and so the president is absolutely committed to solving that problem and we are going to turn over every single rock to make certain we're identifying every single thing that could move us in a the about are direction. >> [inaudible] >> the president certainly believes it is, we will treat it as an imagine, and it is an emergency. when you have the capacity yankee stadium or dodger stadium dying every single year in this nation that's a crisis that has to be, has to be given incredible attention, and the president is giving it that attention. >> mr. secretary thank you. i am curious, those of us old enough to remember the crack program 20 plus years ago, how is this different? and how is the approach to deal with the opioid problem going to be any different? are we just going through a cycle after new crisis every 20 years and the public forgets? what is different here?

>> it is different for number of reasons not the least the magnitude and numbers of individuals is being cumming to addiction and losing their lives -- succumbing to addiction and losing their lives. this is relatively recent sent. in the past 10 to 15 years these numbers spiked up. so the difference is, that the crack cocaine issue, which was a terrible, terrible issue but it didn't have the potency of the medication that exists right now. right now carfentanil and fentanyl exist in a way that kill individuals with very small doses. the cost of illicit drugs. the cost of heroin, for example, is significantly lower than it has been. so the access to these drugs is that much greater. so, it may be cyclic in terms of generational engagement or involvement, but as kellyanne says, this knows no age distribution.

it is affecting folks young and old across all demographics in our society. so we believe that it is, that it is different if only because of the potency of the medication and the numbers of individuals who are succumbing to it, yes, ma'am. >> i do have a question for kellyanne, but first to you, why has the president not officially declared the opioid crisis a national emergency? does he plan to? >> most national emergencies that have been declared in the area of public health emergency have been focused on a specific area, a time limited problem, either infectious disease or a specific threat to public health. two most recent come to mind are the zika outbreak and hurricane sandy. so, we believe that at this point that the, the resources that we need or the focus that we need to bring to bear to the opioid crisis, at this point can be addressed without the declaration of an emergency,

although all things are on the table for the president. >> not, that he would do that but on the table? >> all things are on the table. >> kellyanne conway, if you would like to weigh in on that. if i could ask but the president's comments on north korea. he said north korea if they continue their threat will be met with fire and fury like the world has never seen. can you explain specifically what he met by fire and fury? is is that military action. >> no, i can't. i think the president's comments were strong and obvious. all of you covered them live. i would defer to other members of dr. price's cabinet to comment further. >> anything you want to add to the emergency status question? >> no. because i will leave that to the health professionals but i will tell you that the president and first lady are taking very seriously what is an absolute epidemic. they see it that way also. we are at a very peak level and one thing i should have mentioned earlier that is a very

important component here, destigmatizing misuse of substances. we find time and again people are just too fearful to come forward to admit they have a problem. admit it to the people closest, family members, friends, colleagues. something we discussed with the president and first lady at length are the different accounts that we have heard in states. you can see the stories for yourselves. we're so sorry, mr. and mrs. jones, we tried to save your son. in fact we resuscitated him three or four times over the last six or eight months but this time he was too far gone. they say who, what, they don't even know that they're son or loved one has had a substance misuse disorder, a substance abuse disorder and it sometimes the privacy laws don't allow parents of a 19-year-old in fact to be notified. this is something of which we're very aware also. >> yeah? david: that is tom price and kellyanne conway talking about the crisis of opioids in this country.

there is another crisis overseas. that of course is north korea. as we learned today, at a lot of from information and leaks from the defense intel agency which is pretty good, and the sources on this have been not denied by the administration. in fact we're finding confirmation all over the world, that north korea found a way to miniaturize atomic weapons. they have an icbm, intercontinental ballistic missile, putting it on one of those makes it a very dangerous country. author of the end of the asian century, michael oslan. michael, first of all are these leaks accurate? >> we don't know, but for a deck played plus north korea has been moving to this day. no doubt if it is not accurate on this report it will happen and happen real soon. the question is how many nukes might they have? can the warheads survive reentry? there is a lot of questions but no one can deny if we haven't

crossed the rubicon we're standing on a bridge over it. david: michael because we have to shorten the conversation, i will cut to the chase, how should our commander-in-chief respond? >> we have to get rid of the fantasy of denuclearization. the north told us it won't happen. that meaning in shuns are a waste of time. a way for north korea to run out the clock on the trump administration. we have to accept that north korea is nuclear capable weapons state. we have to look at real and new articulated deterrent strategy and containment to keep them in the box. we're at a point we never wanted to get to but we failed for 25 years. we have to think realistically what north korea has, what they're not going to give up. how we control them. david: very quickly, miniaturization process and icbms, general jack keane who seems to know a thing or two how the world works thinks they come directly from china. what say you? >> china has given different types of help, whether or not

they given them the final push over the line. in the end we'll never know. the truth is they have the weapons. they are never giving them up. the idea is how to control them. david: michael auslin the end of asian century but i perhaps say not yet. michael thank you. melissa: very busy day here and abroad. more on the new threat from north korea and how americans could respond. ♪

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>> the market was doing fine until we got this north korea news, you can see how it dropped as a result, it improved toward the end. the question is will the market freak out or plummet. >> this is one of the last pieces to puzzle of north korea march toward nuclearization, the idea they would have a miniaturize nuclear warhead that would fit on an icbm.

>> general keen'sing is it mighsuggest it might have been china that supplied hard way may be frightening. >> that is it for us, "risk & reward" starts right now. >> north korea, best not make any more threats to the unite united states. they will be met with fire and fury like the world has never seen. he has been very threatening, beyond a normal status. as i said, they will be met with fire, feuery an fury and power, the likes of which this world has never seen before. liz: president trump with a stark warning to north korea after an alarming new report they can now pr produce nuclear bombs small enough to