let's hit it over right now. it goes into through the second straight day. in the back to back loss. it is also settling lower. this is after the bell. we have more on the big market movers. here is what we are covering during the be very busy hour ahead. the world on edge. continue to escalate. they are pressed on the view of the stern warning. the president is sending a strong message to north korea in the kind of language that north korea understands. meanwhile u.s. airmen have arrived on the tiny u.s.

territory of guam. we will get a live report from washington. the threat of a nuclear north korea leading back to back losses for the stock exchange. i have to say the market was down a lot further before if the threat of a nuclear war doesn't bring this market down nothing well. >> you make it great point. it really is trying to understand what is going on. with back to back losses. it changes the way that it moves to gold.

such as disney for example. it came out with the earnings after the bell. and obviously now the ties with netflix. it is down about 4%. about 30 negative points. we watch that so closely. it has been under ten all year. the biggest today gain that we have seen in three months so you can see a pop there. there is certainly really some jitters. is a little better than expected. it is jumping up to a half percent. they make tomahawk missile. this as now they're they are getting some inquiries about finding missile defense system. in what could come into big sales.

thank you very much. so take a look at gold snapping s5 date losing streak as investors flight to safety today. it is gaining more than $16 now to end a 1273. the highest settlement in two months gold is now up 11% for the year. they are waiting on the markets for the second straight day. he is also with fox news. good to see both. jonathan as i told nicole if the threat of nuclear war doesn't do anything but cut 36 points what well. that's it certainly ended off the lows. there are some worrisome signs here. the market was overbought. looking at the internals. only about 90 new ones. there is something eerie about

this. back then it was overbought. are you saying that we are going back into an 87 style crash. i think at lost 20% in one day. i'm just saying back then it was not over evaluation. we were seen the same type of analysis right now with trump and north korea. let me just put out the optimistic side of this. if you factor disney into today's information. we probably would've have a positive market. despite all of the global imaginations we still have a pretty positive market. >> the markets are hanging in there. and did you think we forgot it. the markets can go down. they had been going up and up and up. hitting all-time highs. almost every day. even with that geopolitical tensions and risk.

treasuries are still there. we have have some breaking news by the way on stock. the parent company reported reporting fourth-quarter results. we are looking at some numbers for some earnings-per-share. and that was a beat for the parent company. the earnings-per-share of 66 percent. the revenue was $6.75 billion. just shy of the estimate. it's up right now. one third of 1%. the company continued to grow its cable channel. 5% advertising gains. for future collusion. we are watching as well. they also had a very successful broadcast.

we also had the executive terror chairman coming out with some statements. it proves to be the right strategy. in driving the strategy of our brand. it reflects our deep commitment to creed of excellence all of our entertainment production businesses. the stock is trading slightly higher. and we like it when there cable division does well. divided over taxes. some lawmakers are now in favor of the scaling back the goal of comprehensive tax reform in order to pack's tax cut by the end of the year. there are new signs that the house is coming together on tax reform. they spoke with house speaker about where the gop stands now.

now that they had put that aside and we are neck and do that. he said now or at 97 percent. well had to make some things permanent in order to fit inside the box. let's see it. so much of the investment rally has been predicated on what they promised would be the biggest tax cut in american history. i think this will be a real boost to some quickly eroding confidence. and keeping the economy going. if we don't get it by the end of this year. i think the markets will sell off.

it is coming back to the u.s. i think the border adjustment tax they may have been at distraction. they take it away and everyone is so relieved that they died with what's left. i think many investors with republican president and house and senate a lot of investors are saying it's not now it's when. meanwhile a new legal concerns over at google. more than 60 women's there this is according to new reports of the guardian newspaper. and all of this is coming as the ceo is preparing for a town hall tomorrow after the company fired an employee with a very controversial memo about them. only 20% of google employees our women should that be

addressed somehow by the company or doesn't need to be at all. 73,000 americans employed by google. i would imagine that there would be at least one disgruntled employee. i'm not an antifeminist but i would say please don't hire me because i'm a woman hire me because i'm the best person for the job. and that was his point. we are throwing people into positions just in the name of diversity. i think it's been described although he was fired. they suggested that his argument was it really looked at because what he was saying was that in order to hire more women and they may want to

lower standards and that is what he was really against. do you think he have a point or not. it's a standard. that has made google so successful up to this point. that is what makes it a target unfortunately. that is really the fear here that the social justice warriors to make their way to the board room. they have the best minds. i would just like to say that the people they sell their wares to half of them are men and half of them are women. are you kind of missing out on training. i don't think so. as long as you are open to hiring anyone and everyone.

it might not be a great representation but in the specific industry that is the cultural personality that may be for men. thank you both very much. interesting discussion. they are now conducting a raid at the former more on this developing story. another attack in paris. what we now know about the suspect. and the state department just wrapping up its briefing to the press. what they are now saying about the threat of a nuclear warhead from north korea. the time to deal with this threat is running out and our options are slim. his thoughts on what the president should do right now. the united states is on the same page. whether it is the white house or the state department or the department of defense we are speaking with one voice.

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tensions are rising the nicest territory of guam. they warned of a fire in fury if north korea threatened us again. which of course it did. they are inside the state department. as the white house in north korea. they are planning to target. the secretary of state was watery -- offering a reassurance.

now that they can sleep well at night. i've no concerns about this particular rhetoric in the last few days. i think the president again he felt it necessary. it was directly to north korea. i think the president was just reaffirming that they have the capability and we will do so. so the american people should sleep well tonight. they are talking about fire in fury towards north korea. the united states is speaking with one voice on this. they are returning from nearly a week in asia. to enforce sanctions and previous sanctions against north korea. that in a way to halt the

financing. and try to isolate north korea to get it to change his behavior. he spoke directly over the week with russia and with china to countries he notes has diplomatic channels open and he's asking those countries to use those channels to commence north korea to halt its weapons program. here is lieutenant colonel. thank you so much for joining us. you had outlined some pretty exhibit aggressive steps. what are some of those. we all need to understand that the target of of these measures. with the president and secretary of defense aren't necessarily aimed at the little office. they are actually aimed at

president chee in china. the only leverage we have is with the president. unless he realizes that we are dead serious he second act. up to 20% of the north korean population of 25 million is likely to flee on foot and take to the sea like the boat people from vietnam. here are the ten things that the present should do now to back up the rhetoric with action to convince him that we are serious. press hard for them to bring in as many systems as we can deliver. ask them to provide those systems so that they can help protect their cities from the north korean artillery. return the technical nukes that we went through in the 1990s. deploy another character

strike group. an air to air tankers. deploy search and rescue efforts. ask him if we can base some of our assets to recover our air groups. there will be some that are shot down. unlikely that he will agree. it might wake them up. deploy them to the mercy. and the comfort and now send them out to the region. everybody can see it. that will leak by the way. pray that they see the light.

that was can be my next question. this is sure of actually firing a shot or anything like that. would have to do all of these things anyway in order to get into position. if you were going to actually attack or try to take that action are any of those steps would we have to negotiate with other people. you mention the idea. it would us in send a clear signal. specifically when you talk about putting weapons in the region. obviously they would have to agree to bring in those that we took out in the 1990s. you have to agree to ask for every possible. these are all major steps that are aimed there.

i don't think you will get through to the little dictator. but these could very well get that focused on the problem. it is deadly serious. those options are very simple. he would have to issue his orders. and what is the final best outcome. if he is removed from office there is not necessarily anyone there who could move into the fold. there are so many problems that would spread out like dominoes as a result. what do you think would be the best outcome. see mac the best outcome i think we could hope for is that the chinese intervened and give him a place to live outside of beijing. and make sure that the person who has installed in power. they are the power in that area.

they can influence this in ways they have not tried to do yet. and that means basically a regime change but on their terms. and it will not give them something that gives him a 17 them 17 more years of negotiating. thank you for joining us. we appreciate it. you can be sure to catch the road stories on saturday and sunday night right here on foxbusiness. paris on edge. they are searching a building in the suburb west of paris believed to be linked to the chief suspects. the prime suspect is in custody. he is accused of the liberty's slimming out and there is still no word of any potential motive but one can assume. loretto lynch. why did she need to use the fake name in the first place.

what authority does the president have president have over congress when it comes to dealing with north korea. judge napolitano has all of the answers coming up. potsch: a real treat for you today. michael: awesome. potsch: i'm going to show you a next generation pickup. michael: let's do this. potsch: this new truck now has a cornerstep built right into the bumper. gary: super cool. potsch: the bed is made of high-strength steel, which is less susceptible to punctures than aluminum. jim: aluminum is great for a lot of things, but maybe not the bed of a truck. potsch: and best of all, this new truck is actually- gary: (all laughing) oh my... potsch: the current chevy silverado. gary: i'm speechless. gary: this puts my ford truck to shame. james: i'll tell you, i might be a chevy guy now. (laughing)

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. david: loretta lynch's alias revealed. the former attorney general using the name elizabeth carlisle for official justice department e-mails, including e-mails surrounding her tarmac meeting with former president bill clinton. this according for the american center for law and justice, here now to react, jordan sekulow, american center for law and justice executive director. congratulations, it's like finding a needle in a haystack, you were going through hundreds of pages and came up with the e-mail elizabeth carlisle, thanks to all who worked on this, talking about dealing with the press and her meeting with bill clinton, and she signs it a.g.. apparently the inner circle at the justice department knew she

was using this alias? >> that's right. this is the first time, david, that through foia requests and documents that we figured out from a number of groups who file the foias, we found out exactly what the e-mail alias account was for loretta lynch. she acknowledged through attorney previously she had alias e-mail account and no one knew what it was. if you go back through past foias even, you may find instances where the a.g. iso, mails that you would not have known before. david: she actually replied. what you did jordan is break the code. now that you've broken the code, all kinds of other foia requests, freedom of information requests will discover her e-mails. she claims and put up her statement. she claims that all other attorneys general or lot of other attorneys general have done the same thing, former attorney general lynch did not use her name in the handling of government e-mail address.

address was known to individuals who process foia requests. did you know she was using alies? >> no, and really, the idea it was known to individuals processing the foia request is to redact a lot of the information from her. i don't think it was to expose it to the people filing the foia information. david: now jordan, aren't their rules about putting information on personal e-mail or alias accounts, she claimed she used the government's server but still using alias? >> the rules would be when you're filing to make sure, and that's why we have to go back and when people file requests for information related to the attorney general, that they were getting the responses now that we know the alias existed. i don't know that it's illegal for the alias to exist. i don't think there's a problem there as long as you are on the server, like you said, so long as you are not hiding information that should be available to the public with the alias. david: talk about that

information. we know irs -- former irs official lois lerner, going after the tea party that she also used an alias, we just discovered what that was. might we reopen her case, or at least you in the private sector do that? >> we're still involved. in depositions with that case. we represented all those groups that were still waiting. they've all gotten stat us from the irs thankfully but doing depositions, we're still in federal court with lois lerner and the irs on that. david: jordan, they're giving me a wrap, i have to point out one other thing in the long list, 100 pages, a letter from the "new york times" reporter says hi melanie, and the melanie is the press officer at d.o.j., i'm a white house correspondent for the new york times and i've been pressed into service to write about the questions raised about attorney general. almost like he's apologizing to have to cover this. >> and he actually went back

later through e-mails and providing the text to the department of justice before it was published to comment and edit it. so you've actually got that in the e-mails as well. and i will tell people as we discussed before going on the air week just discovered the white house involvement that the talking points that were redacted in this were forwarded along to a white house assistant press secretary. david: very important. so it does go directly to the white house, and there were questions about that. jordan sekulow, congratulations, amazing discovery, appreciate you coming on. >> thank you. kristine: fbi agents raided the foam of paul manafort on july 26th after obtaining a search warrant. agents took documents and other materials related to the investigation of russia meddling in the 2016 election. we'll keep you updated with developments as they come. david: the dangerous leaks from inside our government. how the release of classified information is corrupting our

national security? coming up, a former cia station chief on how the leaks are also hurting those who risk their lives to protect us? melissa: plus expecting progress in our nation's capital? the nerve. that's all i can say. senator mitch mcconnell finding himself in the hot seat today, and president trump is now responding to the majority leader. >> there's one person in washington, d.c. right now delivering on his promises. that man is president donald j. trump, and the rest, they are phony baloney. ♪ [brother] any last words? [boy] karma, danny... ...karma! [vo] progress is seizing the moment. your summer moment awaits you, now that the summer of audi sales event is here.

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. melissa: senate majority leader mitch mcconnell taking a dig at president trump after congress failed to pass any major legislation in the first 200 days of this administration. >> our new president has of course not been in this line of work before, and i think had excessive expectations about how quickly things happen in the democratic process. melissa: the president firing back earlier today tweeting -- he ran out of characters there, you can tell.

here now is kirsten haglund, conservative political commentator. i don't think he has excessive expectations about how congress works. i think he's expressing the frustration that everyone who's not a snail in congress is snailing. what do you think of my thesis? >> very true. in this respect, he was 100% spot-on because they have had seven to eight years not just talking about the issue but craft a plan they can unite around. crafting legislation can be a slow process, getting a plan to put on the floor everyone that agrees on, that should have been done. melissa: see, i think the impression you take away after you watch things like this go by is that they're invested in things going slowly. >> right. melissa: that both parties are part of the slow molasses that gummed up our entire system and don't want things to move along and get better because that's what gives them power is the slow movement. is that too cynical of me? >> no, on the one hand sometimes moving slow is a good

thing and founder created lots of checks and balances and political machinations is well thought-out and well debated. melissa: taking it to the xeem. >> since the founding to make this slower, and that's -- this attitude among the people, this frustration, is really reflected in the poll numbers, and as low as people talk about president trump's approval ratings are, congress fell below 20%, even among republicans, that approval rating is so low. mitch mcconnell doesn't have a leg to stand on here. melissa: dan, the president's social media guru who sometimes does some of the tweets was tweeting in his own voice and said -- i mean, i think, one of the big frustration says that they always blame rules, but they're the ones that make the rules, that's their job, and they also seem to change them when it suits what they want to do.

we can't do this until we do this, and doesn't work out. oh, we found a loophole. magically we can work on this, you start not believing any of their excuses, again, am i, too, cynical? >> i think you are accurately reflecting what americans feel and donald trump is giving voice to one of the reasons why the american people elected him, that was to come and stop this red tape and this very slow process. what will be interesting the next thing upon the dock set tax reform, which will likely move a little faster because it's something more of the gop is united around than health care, they are still very united but divided on health care. melissa: talking about that earlier on the show, grover norquist said he had spoken to house speaker paul ryan and ryan said they were about 80% on board when they had the ridiculous border adjustment tax, now looking at a straight bill, i think that was a conin the first place to throw people off in the senate what was

going on, they feel they have 97% was his number, of republicans on board. do i dare get my hopes up that they're actually going to do this because it's so necessary? >> i think the political season over the last year and a half can't predict anything because everything has been just so out of the ordinary. however, this is something that i think everyone can unite around, they need tax reform, individuals need tax reform, and republicans know going back into the districts as they're right now. mitch mcconnell in kentucky in his hometown state, they need to go back with major wins, tax reform hits people in the wallets, they feel it immediately. this is something they want to go back to the districts with. melissa: when something like this happens, the president's enemies say look, they're criticizing him. when he fights with the republicans, it's he's keeping outsider status, maybe it does him good. we'll watch. thank you so much, appreciate your insight. david?

david: new report from the department of homeland security showing a quarter of federal prisoners are illegal immigrants, most of whom are facing deportation, in compliance requiring transparency on prisoner immigration status. >> that is amazing, the war powers of the president. commander in chief threatening to unleash fire and fury on north korea, but does president trump have the broad authority to act? judge andrew napolitano is here and has the answers as always. that's next. >> he's saying don't test america and don't test donald j. trump. we're not just a superpower, we were a superpower, we are now a hyperpower. the message is very clear, don't test this white house, pyongyang. poor mouth breather.

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. melissa: slamming the president's strategies, some lawmakers on both sides of the political aisle criticizing president trump's promise to meet north korea's aggression with, quote, fire and fury. can he take action without them? here now, the judge. judge andrew napolitano, fox news senior judicial analyst, break it down for us. >> the president has the authority under a 1973 law called the war powers resolution, which was passed over president nixon's veto, to engage american military for 90 days and then report to congress, and then a second period of 90 days and has to stop at the end of 180 or get authorization from congress. that's the statute. the constitution says only congress can declare war, and if you read james madison's notes on that they were adamant the president wages, the congress declares, the president can't pick the enemy,

only congress can. congress has twisted that in the vietnam war cambodia incursion era. so short answer, can donald trump use the american military in north korea without going to congress? unambiguously, yes. melissa: and preemptive strikes, does it matter if there's been like direct antagoization? >> there are treaties that regulate who he can attack, but the general law is if he has a sound reason to believe that an attack on america, american property, american people, american allies is imminent, meaning within a day or so, he can engage in a preemptive strike and do that lawfully. melissa: why is everybody jumping all over him for this, then? >> well, i don't know the answer but i can guess that the language of more firepower than ever before in history either was donald trump's hyperbolic

way of trying to scare kim jong il or talking about it, he meant it literally which case he meant nuclear weapons, which would be out of line because that would kill innocents. melissa: he said we have more firepower than we've had before, that's review. >> said he would use, bring it to the table. melissa: he's bringing it to the table, by virtue of having it. >> i don't want to defend his attackers, i am not among them. you will say why are they attacking? some of them believe, like john mccain, that the language the president chose actually exacerbates things and gins this guy up. i would like to believe that the president's language was vetted by the intel community who told him this is the type of language that will settle this guy down in north korea. war has to be under all law and under the principle of just war, david asman is familiar with that principle, has to be a last resort. melissa: yeah. >> all other rational means to prevent violence have to have failed before you justify

pulling the first trigger. melissa: seems like we've tried all other types of talk. might as well try the tough talk. >> i thought that what nikki haley did this week was truly remarkable to get china and russia and the united states to agree on something like this, but these are economic sanctions, they are in the pipeline, it will be months before the squeeze is felt over there. melissa: it's true, who knew she was going to be such a superstar at the u.n., speaking of superstars, judge, thank you. >> sweet. david: i remember our debates on the war powers act, judge. >> me too. david: welcome to the supreme court, ladies and gentlemen. meanwhile we could see the most active hurricane season in seven years, according to noaa raising outlook on the likelihood of tropical storm and hurricane formation by 15%, the agency calling for 14 and 19 named storms for the potential for five major hurricanes, there is a hurricane named franklin

nearing mexico right now. the agency has been known to get it wrong in the past. take it with a grain of salt, melissa. melissa: tough to predict the weather. david: it is. melissa: threat to intelligence, why a former cia spy says the leak plaguing the trump administration are posing a big threat to our national security. plus if the fire and fury thing doesn't work, why not try to hug a terrorist? a controversial way to stop extremism. it's a great idea. ♪

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. david: in a world as dangerous as this one, the leaking of sensitive or top secret information is particularly heinous. leaks not only endanger lives, they jeopardize national strategies to keep our country safe. that's why the leaks have to stop.

here for analysis is a man who's like literally depended on secrets being well kept, daniel hoffman, spent a total of five years in moscow. daniel, good to see you, thank you for coming in, and thank you for your service. first want to talk about north korea which is in the news, a get a lot of people saying we've got a good cia, use them to take out the crazy nut before he starts a nuclear war, to which you would say what? >> i begin saying this, we have three concerns about north korea with nuclear arsenal, first they might use nuclear weapons, but secondly, an issue of proliferation that they could proliferate the nuclear weapons to state or nonstate actors with nefarious designs on homeland and third in the event of war in the korean peninsula there could be loose nuke scenario. david: if we take this guy out, kim, specifically, isn't it conceivable that we could talk turkey with the generals who would be left alive? >> it's a risky endeavor, you

could certainly try to drive a wedge and break the hold of the regime on the population and the regime on its nuclear weapons, but that is a risky endeavor, and you better know where all the nuclear weapons are beforehand because they could certainly launch we don't successfully -- david: talk about risks, people are risking all of our lives, but specifically risking the lives of people like you, are they not? have lives been put in danger by the leakers. >> i spent my career trying to protect human sources, there are foreign intelligence services, ruthlessly hunting for these people. they're looking for illegal disclosures of sensitive information in the media, trying to expose sources and methods. in addition, when human sources see that information is leaked, it degrades their trust in us. david: they can also reverse and figure out where the leaks came from. they can track down the sources? >> absolutely. from my experience serving in russia, that's exactly what the russians do.

david: they're endangering lives. all right. talk about russia now, because you know it very well, the russian lawyer, we have manafort in the situation, donald trump, jr. set up the meeting with manafort, natalia, she is clearly a spook, right? don't you think she's a russian agent? >> i wouldn't call her a russian intelligence officer, i would call her a fellow traveler. doing the bidding of the kremlin as a lawyer. david: she was not only bidding to those who were supportive of donald trump, she was also working with at various times fusion gps, which is a service that came out with the trump dossier putting out stuff against trump. isn't it fair to say that the russians, rather than working for one side in the u.s. election were working against both sides? they just wanted to create chaos in our electoral system. >> the conclusion i've drawn

based on the evidence is what russia wanted is to soil our democratic institutions and in particular our electoral process. david: they're always looking, going back to the 80s and before that, looking to discredit our system in the eyes of the american public. are they not? >> right, vladimir putin has one eye or both eyes set on march 2018, he'll stand for election, and what he's ultimately concerns about is his own regime security and cognizant that his own opponents, many who will risk their lives protesting on the streets of russia derive ideological inspiration from the united states. he wants to degrade that. david: any evidence of any collusion between the trump administration and the russians? >> i haven't seen any evidence, no. david: daniel hoffman, great to you have on. >> thank you very much. david: thank you for your service. >> thank you. david: melissa? melissa: great interview, good stuff. very friendly answer to terrorism. yes, that's what i said. police in denmark's second largest city are hoping to stop

the spread of extremism with a hug. it is a model of deradicalization and trying to steer extremists down a different path by offering them kindness. i'm sure it's going to work, i have no doubt. david: i loved your read on that. melissa: i'm a little cynical. david: paris is thinking about adding activity to the 2024 games, what that is and why it is making so many people furious? that's coming next. ♪ ♪ i'm... i'm so in love with you. ♪ ♪ whatever you want to do... ♪ ...is alright with me. ♪ ooo baby let's... ♪ ...let's stay together...

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melissa: video gamers rejoice. you could become an olympic athletes, they are considering adding competitive video games to the 2024 olympics in paris, come on. david: unbelievable, there was

an attempt to add them to the 2008 beijing olympics, it was reject. we're trying to think of other dumb things. melissa: if you don't need gatorade, it not a sport. "risk & reward" starts now. >> they will be met with fire and fury like the world has never seen. >> don't test america and don't test, donald trump. >> president spending a strong message to north korea in language that kim jong-un would understand. u.s. has the unquestionable ability to defend itself. >> we're now a hyper power. >> fire, feuery an,y and frankly power, the likes of which world has never seen