be dealing with this north korean missile that flew over japan. the stock index futures are pointing sharply lower. miss stuart varney, he is in for lou dobbs. reporter: good evening, i am stuart varc varney in for lou dobbs who on vacation, two breaking stories tonight, north korea firing a intercontinental ballistic missile over japan. the white house response is expected any moment. stock futures are way down. more than 100 points lower for dow jones, other big story, millions of texas residents are stlu struggling with record-shattering rain, rising rivers and floodwaters, 8

least 8 people have died as a result of the slow moving storm, torrential rain to continue over parts of texas and louisiana over next several days, with catastrophic flooding expected to worsen, fox report trace gallagher in houston with our report. reporter: in texas alone up to 50 countries are told to expect up to 50 inches of rain by thursday, two feet has fallen in houston area since weekend. in all, harvey so far has produced 9 trillion gallons of water. with the catastrophic flooding and mandatory evacuations, officials in houston say that situation remains very dangerous. >> seniors, those with disabilities, those in life-threatening situations. reporter: 56,000, 911 calls have been reported. overwhelming the system, with two thousand residents

evacuated so far by air and boat. thousands more, forced to seek a dry escape. >> roof went, and attic got wet, that soaked top floor, it got wet, it just pancaked. reporter: federal official say 30 thousand people are staying in temporary shelter, 30 thousand more may need it. this could approach capacity. >> i have staying here, for time they let us stay here until the rain stops then go home. reporter: two area reservoirs released more water. >> with the rain comes vultures. >> we had 4 people tried to loot, they were arrested, folks move in from other states and cities, and regions to loot. create problem. reporter: a scene played out across texas in communities big and small, stranded on roofs, cars and trees.

>> we're still breathing, but it humbled us, it did. if nobody is humbled by this, something is wrong. reporter: and they kept moving to southwest louisiana, with some coastal area like corpus -- corpus christi beginning massive clean up, 450,000 people may require federal disaster assistant. >> we'll get through this federal government will be there, to help rebuild texas. and all of the affected areas. reporter: texas national guard troops have been mobilized, 3,000 on the ground. we have just gotten word in conroe, texas, there are mandatory evacuations because of concerns of a river over flowing its banks. in wood lands -- in the woodlands, texas, trace gallagher, fox news. hi.

>> deploying federal resources, as fox news chief white house correspondent john roberts reports, aim to show administration is engaged and responding to challenge of this natural diswasser. >disaster. reporter: the true scope of this disaster, have yet to be assessed. but this afternoon, in his first on camera response to it, president trump appeared confident with how it is going so far. >> a great honor to have you. reporter: appearing in oval office with finland president, sauli niinisto, president trump acknowledging hardship that texans are enduring and praised government response to the disaster. >> the coordination between all different services has been going very well. great respect for the governor. reporter: trump will get a first hand look at rescue and recovery effort when he and first lady travel to texas tomorrow. houston, where first responders are stretched is

not on the itinerary. single most important thing is safety and security of those still in harm's way. including first responders. who have been so terrific. and brave. reporter: president made a point of showing how engaged he was on half over weekend. -- harvey over the weekend, tweeting about the storm. >> i know everyone in this room, and on president's team, has been moved by the images and stories of people who are sufficienting in texas. -- suffering in security and exchang2ebgs particular,texas we're working quite now to provide assistant as quickly as we can. >> aim of money needed to be in billions, president trump was asked whether his ongoing criticism of many members of congress might make getting that money difficult. >> i think that you will see very rapid act from congress. from the president. and you will get your funding.

reporter: president trump went into storm determined not to repeat mistake of bush administration in 2005, former general, russell, who coordinated military response to hurricane katrina did not give president or state full marks. >> they don't nearly have enough troops there now or on the way it be able to deal with this. there should be in secon excess of a hundred helicopters. reporter: the size of storm and length of disaster still unfolding is by called unprecedented. they admit federal and state officials alone cannot fully address the scope of emergency response. >> this will be far greater than fema coordinating mission of the entire federal government, we need citizens to be involve. involve. reporter: president will begin his trip to texas in corpus christie tomorrow.

then -- corpus christi then move to austin to meet with texas governor abbott, later in week, he may go back to texas, likely houston, and perhaps louisiana as well. stuart that would likely be saturday. stuart: thank you, john. >> rain and flooding in texas has not stemmed tide of poll tables in dc -- politics in dc . as james rosen reports, staff changes continue. >> europe is at war, america is at war. and jihadis are already in place. reporter: with firing on friday of gorka, trump white house lost last prominent foreign policy hardliner, going tgorka lost key backers when flynn went sense packing. >> idea that secretary

tillerson will discuss military masses is nonsense call. reporter: in his resignation letter, he noticed absence of term of radical islam from the latest afghanistan address. >> i think he is wrong. i think that it shows a lack of understands of president's broader policy. reporter: in same appearance on fox news sunday, tillerson was slightly less direct in declining to endorse president trump's post charlottesville retchill rhetoric. >> steech i gave to state department. >> on issues of course, president maintains his own hard-line, reporter john swan of publish story, detail confirm by fox news, recounting a scene from first week of august. for last 6 months, the same group of geniuses.

bring me. president told his new chief of staff, i want you to know this is my view, i want tariffs, i want someone to bring me tariffs, and added gary cohn who opposed tariffs. had his shoulder slumped and was appalled by situation. >> president told his chief of staff, i know there are some globalists in this room, they reject tariffs but added, i want tariffs. >> thank you very were. >> we'll have much more on north korea missile launch with ambassador john bolton, coming up. >> white house is expected to issue a response shortly. coming right back with much more. stay with us, please.

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stuart: president trump striking a unifying tone today. >> recovery will be long and difficult, federal government stands ready, willing and able to support this effort, we see neighbor helping neighbor, friend helping friend, and stranger helping stranger, you we is all over, on television, such incredible work and love. and team work. we're one american family, we hurt together, we struggle truth, we endure together. stuart: joining me now to discuss the president's response to harvey, and impact on his agenda ed rollins. he is known at "the dean" on this program i believe. >> thank you, because i am hold. stuart: i'll give you a contest on that one. president using unifying

remarks, do you think he has done things right so far. >> a superb job of being prepared for this, combination of general kelly, chief of staff, head of homeland security understands all things that need to be taking place, going down tomorrow is risky when you go to site. they have been careful about that. equally not going down as george w did not go, they will go to corpus christi, they are carefully coordinating, i can second guess only trying to help. stuart: on his growth agenda, a lot of money needed to rebuild. >> i thought -- stuart: where is it coming from? >> congress, there is not enough money, fema does not have enough money, and flood insurance programs are underfunded. you are in a long-term 10-year rebuilding, so much of this

damage will be infrastructure. stuart: does some money have to be in the budget, has to be discussed in early september? >> no question, there will be an emergency-type of situation. not this budget they since but they will do an emergency supplemental. stuart: bottom line so far so good for president handling of harvey. >> absolutely, it has been positive. stuart: talk to you about launch of north korea intercontinental ballistic missile that flu over jobs -- flew over japan 341 miles, for 1700 miles, u.s. did not attempt to enter septembe en intercept it some call it an act of war. >> it is getting very close to an act of war. critical thing, we're all connection world wide with tv stations, they know what is going on here. they know that president is distracted by a major disaster in a major state, and equally important 7 fleet had two

ships destroyed in out of service. admiral in change, based in tokyo, he was just dismissed. so my sense is that they know what they are doing. stuart: to intercept it? could we if we wanted to? bearing in mind condition o of 7th fleet. >> i don't know that. we were not prepared for this launch. we have exercises with south korea, as we do every year, that was a warning shot, president made clear again, this is unacceptable. i am sure that japanese are furious. stuart: what do you think the president's response should be. >>nbe. >> my response would be, take about 3 submarines, they have enough nuclear weapons to destroy the country, i would

put one on each conner of north korea -- corner of north korea, tell them next time they do this, we will fire one over them. stuart: we did that last time? we did nothing. >> i think that we were hoping they were backing away, we now know they are not. >> ed rollins thank you so much. >> thank you. stuart: on wall street, stocks closed mixed today, dow down 5. s&p up 1. and nasdaq up 17, volume on big board 2.6 billion shares. >> gasoline, soaring to a near -- well 2 year high. hurricane harvey forces all refineries to shut down across south texas. >> uber's board electing ceo of expedia. i am sorry. -- new ceo. in its push to go public. and reminder, listen to lou's report 3 times a day, coast-to-coast on salem radio network. >> up next, it was less than a

week ago, that secretary of state tillerson praise north korea restraint. >> i think it is worth noting that we had no missile launches or provocative acts on part of north korea sinces adoption of u.n. security council resolution. i want take note of it and acknowledge it. i am please to see that regime in pyongyang has certainly demonstrated some level of restraint. we have not seen in the past. stuart: but, north korea has just broke than restraint. flying a missile over japan. we'll take up the north's provocations with ambassador john bolton, next. ron! something's going on at schwab. oh really? thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms... again. and online equity trades are only $4.95... i mean you can't have low cost and be full service.

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stuart: we're following a developing story, pentagon confirming that north korea has fired a missile over japan. we're awaiting a white house

response become any moment, this is third time north korea sent a missile to japanese airspace, most recent in 2009. news comes as south korea intelligence also suggests that north korea could be prepping for 6 nuclear weapon test. officials say, they see new activity the test site. and north korea official dialed up rhetoric against u.s., it carries out annual war games with south korea. for more on north korea, we're joining by former u.s. ambassador to united nations, john bolton, this highly provocative, some would call this an act of war. >> well, but it's nothing new. that is important for people to understand, this is how north korea behaves when it does not yet have confirmed capability to drop nuclear warheads on targets across the united states, if you don't like their behavior now, just imagine how it will be if the

outcome of the present crises is we leave north korea with its continued ballistic missile nuclear weapon program. as the trump administration is doing, following essentially the same policy as last three administrations, which is brought us to this dangerous point. if we continue, the outcome is absolutely certain. stuart: just the other day, the day before yesterday, i think north korea launched three missiles, today launched another, a intercontinental ballistic missile. this is an icbm, while pr provocative. we've saed i said in the past we'll do something about it if they do it again, they have done it, we have to take strong action against it do we not. >> two things, there is no evidence that i am aware of that any u.s. or japanese antimissile batteries attempted to engage this.

stuart: pentagon said they did not attempt. >> first question is why not, and i think it should highlight that despite rhetoric we heard about capabilities of our missile defense batteries, they are impressive, they are nothing like what we need to defend continental united states because of 8 years of national missile defense program evice -- evice rated by the obama administration budget. second, you know it is a fact that north korea continues to behave in a belligerents fashion. i wish there were a diplomatic solution here. mine is to try to reunifi two korea, but we're running out of time, for those say there no possibility of any scenario we could imagine of of are use military force against north korea, think again, if we

leave north korea continuing down this road, they will have capability to use nuclear blackmail, and threat of nuclear weapons. to force u.s. forces out of south korea. out of japan, the threat to american peopl american homeland, this is serious, we're talking about leaving this rogue regime, with the world's most destructive kif bail tie, i don' capability, we should not sit still for that. stuart: web site report that president trump wants tariffs on china, is that a threat? an attempt toicker ceas economieic -- exercise leverage on china. >> i think we should be exercising leverage on china with respect to north korea and i'll be arguing in a piece in "wall street journal" tomorrow, with respect to china's relationship with pakistan to get them to join with us, in stopping pakistani support for terrorism in afghanistan, i tell you that american business community,

will balk at the idea of any substantial economic sanctions again china. the president has a tough decision, chinese have sucked us in for third years, inflicting pain on china economically manies bearing pain here, th the bigger pressure we need to rebuild our navy, place it clearly on western edge of pacific ocean, and apply that pressure on china, i think that is all they will answer to. stuart: there is a new peak in the confrontation. it is more dramatic confrontation new than 24 hours ago? >> well, that is true, but this is going to continue, anybody who thinks that a 3 or 4 week lull in north korea missile testing, or nuclear web awith the help from the dave thoma-- weapon testing has not studied history of

last 25 years, of north korea behavior could or while on the subject, iranian behavior. stuart: got it mr. ambassador thank you about thank you. stuart: we're coming right back with much more, stay with us. >> sheriff joe arpaio showing his gratitude after the president pardoned he him last week. >> live that president, he supports law enforcement, imvery humbled. stuart: congressman frank said that case against sheriff joe arpaio was a political prosecution be he joins us. >> violence breaking out at a rally in berkeley, antifa anarchists attacking trump i i i i'm so frustrated. i just want to find a used car without getting ripped off. you could start your search at the all-new carfax.com that might help. show me the carfax. now the car you want and the history you need are easy to find. show me used trucks with one owner. pretty cool. [laughs] ah... ahem... show me the carfax. start your used car search and get free carfax reports

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stuart: i'm stuart varney in for lou dobbs who is on vacation. people from texas and louisiana are affected by flood watches and warnings from hurricane harvey. 14,000 people have been forced into temporary shelters. fox news correspondent matt finn is in houston with the latest. reporter: we have another heartbreaking devastating scene to show you. this neighborhood is slowly being flooded. we watched multiple families rescued from their homes by boat. families with children and dogs.

we watched them be rescued from their home by a boat. what is running through your mind? >> at first we thought if it was street level we would stay home. but the electric test went out, so we decided to leave. reporter: i'm worried my garage is not properly closed. reporter: what does it look like to see your house and everything you worked for? >> i live here for 35 years. reporter: did you know this storm was coming in did you expect watters like this to hit your neighborhood? >> i lived here for 35 years and this is the first i experienced. reporter: you are leaving your warm, comfy home to go to a shelter at a high school. >> and we don't know when we are

coming back. hopefully soon we'll be coming back. reporter: city want to bring in another neighbor who just abandoned her home. i believe your name is ann. talk to me about what the past 24-48 hours looked like for you. >> lots of moving around. luckily we are in a multi-storey house. moving things upstairs trying to make sure family treasures were safe and sounds before we left. reporter: this is sad for to us watch. how are you feeling? >> i feel we are luckier than so many people in this city and region. we know our house will come back. it's a big mucky mess. but we have wonderful neighbors and we know they will be back with us, and we'll get through

it. reporter: that's the spirit. >> i would like to say a quick thank you to the coast guard and fire department responders. they are wonderful. reporter: this is the scene across many parts of houston and texas. people abandoning their homes because of this historic flooding. stuart: former maricopa sheriff joe arpaio is considering another run for office. he's eye be the seat -- he's eyeing the seat of senator jeff flake. joining me, congressman trent franks. congressman, well come the program. good to see you tonight. stuart: is it possible sheriff joe is going to primary senator

jeff flake if senator flake doesn't do the right thing by the president's growth agenda? is that a threat being held in reserve? >> i don't know, stuart. it's hard for me to peak about that. i haven't had any conversation with sheriff overabout that. i can understand his frustration right now. i think the man has been drug through the mud as much as you can imagine. i think his prosecution as i said many times, a political one. and people don't realize george soros came in from outside arizona and spent over $2 million i understand just attacking sheriff joe in his last election. any time george soros is going after a guy, he must be a pretty big guy. stuart: what got me was the

refusal to allow sheriff joe a jury trial. isn't that america? >> well, there is no question about that, stuart. that's one of the biggest points anyone could make. there is a clear reason in this case, that is, a jury of joe's piers would have -- of joe's pierce would have ajude kateed him and he would not be facing a conviction or jail time in my opinion. they say it isn't enough jail time, i think they made sure that they would ask for just exactly enough jail time, if they asked two or three more days of jail time he would have been given as a matter of law a jury trial. this was set up in a political and unjust way. i'm glad the president had the courage to say no we are not

going to let that happen and put it right. i heard your comments prior here to the people in texas, the president really respond quickly and decisively in texas. i used to be a texan. they are the toughest people in the union. but the's great we are responding the way we are today. i have to be somewhat careful being an arizona member of arizona. stuart: the north koreans fired an intercontinental ballistic missile over japan. we did not try to intercept it. what do you think our response should be to a clear provocation? >> north korea has watched several presidents in a row, mr. clinton and mr. obama making tremendous concessions to them without sort of securing the

hostage in these cases. and they think they can do it again. i think they are making a mistake. my first recommendation when they were preparing to launch their first test was to position our aegis capability in areas where it would be effective to shoot this down early on so they would understand we are serious. i think we have to make sure they know to go after us is a terrible mistake. but i also think we should tell the whole world that you can either trade with north korea or trade with america, but you can't do both. our economy is somewhere in the neighborhood 1,000 times of north korea's. we have a great deal more pressure. there are a dozen or so chinese companies that prop up china's economy. you know i believe in the importance of being able to

defend this country against incoming missiles. stuart: arizona congressman trent franks. thank you for being with us. we appreciate it. stu report former chair of hillary clinton's campaign, john hillary clinton's campaign, john podesta, is being investigated this is not a cloud. this is a car protected from storms by an insurance company that knows the weather down to the square block. this is a diamond tracked on a blockchain - protected against fraud, theft and trafficking. this is a financial transaction secure from hacks and threats others can't see. this is a patient's medical history made secure - while still available to their doctor at their fingertips. this is an asteroid live-streamed to millions of viewers from 220 miles above earth. this is ai trained by experts in 20 industries. your industry.

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stuart: a group led by john podesta has been subpoenaed. ed * was among a group working with paul manafort with the ukrainian government. and records are being subpoenaed. the. >> there is almost too much evidence. if anybody is look like perhaps

mr. mueller, for russian involvement with u.s. political operatives, no further than thee podesta brothers. john podesta was given 75,000 shares in a firm called jule. the russian government or entity of the russian government pumped $35 million into that particular company it was suppose to be a green energy operation and surprise surprise, it's gone. stuart: this is john podesta who ran hillary clinton's campaign receiving millions of dollars at least indirectly from russia. >> that's correct. he also represents the largest russian bank that is involved in

the uranium one fiasco hillary oversaw in 2013. the plot lines are so thick, anyone who wants to look at russian collusion, you need to look at the podestas. the trump people are quite boring. it's quite dull. stuart: is robert mueller looking at the podesta collusion-russia effect? >> there have been subpoenas issued which leads you to believe someone is at least look at it. it doesn't take much. you pull on these strings of yarn and it will unravel. there is almost too much evidence. stuart: what is with the retroactivity? does that mean they were caught not disclosing germane to the investigation?

>> it would be terribly awkward if in the middle of the hillary clinton campaign while they are frantically screaming russia, russia, russia, mr. podesta files these forms showing real russian involvement with the ukraine and the uranium one deal. if you start make those disclose iewrs. podesta also reports he was actively lobbying u.s. media outlets including "new york times," washington times and the "new york post." they are work on political angles and news media angles. stuart: do you think that i will ever see the words russia, collusion, podesta on the front page of the "new york times"? >> no, you will not. stuart: thank you, sir. be sure to check out lou's new

spy thriller, putin's gambit. jack tweeted this. great read. didn't even wait for paperback. every viewer whose comment is read on the show will receive an autographed copy. up next, more outrageous behavior from the left which seems to be labeling all conservative opinion as white supremacist. >> the democrats will always stand up to hate speech whether it's coming from the president, the nazis, the anti-semites and the racists.

stuart: in our online poll last week we asked you, should the president accept gary cohn's resignation? 81% of you said yes he should. scenes of heroism from texas as first responders and regular citizens pitched in to rescue victims of hurricane harvey. in berkeley, california, members of antifa assaulted a peaceful

conservative rally. katie frates and founder and ceo of american majority, ned ryun. it seems to me and i'm passing judgment here, that all conservative opinion is brand as racist so it's okay to run it out of town. i think that's deplorable and outrageous. katie: i do agree with you. for democrats or anyone in the mainstream media to claim antifa is washed of all guilt because they aren't violent has been proven false time and time again. these are not nice people. they want violence and that's not going to solve anything. i'm not sure what they are trying to accomplish, but it's

not love and togetherness and unity. stuart: where is the outrage from the left. this is street violence. peaceful protesters beaten up. where is the left on this? where is the media on this? ned: you ask a good question. most of of the mainstream media looking the other way turning a blind eye to the thuggery of antifa. they are distinctly un-american in their behavior and beliefs. yesterday they were chanting no trump, no wall, no u.s.a. at all. the thing that they need to be disavowed. but the thing that is troubling to me is this. now it's looking as though the mainstream media and antifa and some in the democrat party, they want to smear all of us who are

trump supporter as full of hatred or bigotry and saying if we hold opposing views we are full of hate and should be confronted with violence. stuart: they are legitimizing beating up people in the streets. because they are white supremacists and they are racists. it's the suppression of free political speech in the united states of america. katie? katie: one of the problems you are seeing is everything has become kind of 2d. there is no kne new nuance leftn politics. people say you are a leftist or you are a communist. there is nothing deeper going on

here and that worries me in an age of twitter and facebook where you only have 140 characters. it seems intelligence has gone down the tube and you are seeing that in how people are reacting to each other. >> i think the left will be looking at anything they can put up against president trump. they look for more any chink in the armor. they are look for something to do wrong to condemn him. ned: so far the response to harvey has been superb. very strong response so far by the trump administration. something katie said, there is an attempt to dehumanize anybody you disagree with. if you look at antifa you realize they are not for freedom of speech or assembly.

but you know how we settle our differences in america? we settle them at the ballot box. stuart: i have lived in america for 40 years and i became a citizen two years ago by choice. america was not like this when i first came. what happened? how did we get to this place, katie? katie: that's a pretty loaded question for the time i have. but it's been a creeping process for a long time. i don't think i can pinpoint quite one thing. but obama and trump have stoked fires and let things simmer. trump is not denouncing people two days after charlottesville. people made errors saying this isn't okay and isn't american. >> i think it has been denounced.

if we are going to play this gotcha game and look back at our history and say you did this wrong, it doesn't allow us to focus on the future. one of our real problems is this. the mainstream media stopped being journalists reporting facts. their world view and agenda is a very troubling thing because we don't know the truth. stuart: it's punditry opinion wrapped up as news. the media is a disgrace largely. katie, ned. i have had my moment of outrage. thank you very much indeed. we appreciate you being with us. that's it for us tonight. we thank you for joining us. you can catch me week days on "varney and company." we start 9:00 a.m. eastern time sharp. tomorrow morning we are going to

be dealing with this north korean missile that flew over japan. the stock index futures are pointing sharply lower. tomorrow morning we'll get into it completely. good night from new york. kennedy: tonight america's fourth largest city is unwater. the president expected to survey the damage tomorrow. can he generate some good head lines after weeks of bad ones? berkeley once again descending into violence after a conservative group shows up to protest on campus. hit the lights because it's time to shine. the unfolding harvey disaster is impossible to comprehend just yet with one meteorologist describing it as a once in a 1,000-year event.