at 4:00 in the morning. >> whole different time. liz: stop doing math, everybody. [closing bell rings] liz: we're old. robert, thank you so much. dow is up five. that's a record. if we hold, s&p is a record. see you tomorrow. melissa: stocks fighting for gains but positive right now. another historic day. the dow at a new high, right? anything positive, any close in positive territory which we're doing right here, is a new record on the dow. the s&p and nasdaq we'll let you know how it settles out. nasdaq negative territory. s&p, i hope i didn't jinx it. david: no. you can't keep this market down. that is the -- i'm david asman. glad you could join us this is "after the bell." more on big market movers. here is what else we're covering for you in another historic hour. white house chief of staff john kelly, he is a marine general who became head after gold star

family when his own son was killed in battle, making powerful appearance at the press briefing here this afternoon to address the controversy about the call to widow after fallen soldier. we have tape and reaction. meanwhile the president saying i think we have votes for budget and tax cuts, but if they don't pass the budget, passing tax reform is very unlikely. live report from the white house and capitol hill. stark new warning from the u.s. homeland security department. why one top u.s. official warning isis and other terror groups are planning to carry out another 9/11-style attack. melissa: a very powerful message today from general john kelly, the white house chief of staff, getting an emotional response moments ago, defending president trump's call to the widow of the fallen u.s. soldier killed in niger. our own blake burman is live at the white house with the latest. that was something, blake. reporter: it really was, to sit there, to listen to john kelly.

this was an unexpected appearance, him in the briefing room today. not only is he white house chief of staff, not only a war-time hero as general, but he is also a gold star parent himself, with his own son killed in action overseas in 2011. kelly came out to the podium, gave full defense of president trump, commander-in-chief and the phone call the president made earlier this week with the widow of sergeant la david johnson. johnson was tragically killed in niger earlier this month. his remakes were flown back home to south florida earlier this week. congresswoman frederica wilson has been at the center of this controversy. she has been the lead critic of the president, saying she listened to phone call between the president and johnson's widow earlier this week, saying that phone call was incentive because the president said during the phone call, she says, johnson knew what he signed up for. and other family members have echoed similar criticisms toward

the president, and, in that phone call as well. but kelly in that briefing absolutely backed the commander-in-chief saying his message was the right one. >> in his way tried to express that opinion. he is a brave man, fallen hero. he knew what he was getting himself into. he enlisted. there was no reason to enlist. he enlisted. he was where he wanted to be, exactly where he wanted to be with exactly the people he wanted to be with when his life was taken. that was the message. reporter: kelly also said he recommended to the president not to make these kind of condolence calls because of how hard they are. but he also said that the president makes these calls. in doing so acts very bravely. kelly chastised the congresswoman from south florida, frederica wilson, saying her participating in that phone call, between the president and between the family of the fallen soldier goes past

the point of something that should be kept sacred. >> it stuns me that a member of congress would have listened in on that conversation, absolutely stuns me. and i thought, at least that was sacred. reporter: kelly also added that president obama did not call him when his own son was killed six years ago. but he also david and melissa said, in no way is that criticism of the former president. back to you. >> he said he was so upset, he had to walk around arlington. reporter: arlington national cemetery. melissa: that was really something. what a press briefing. blake, thank you. reporter: thanks. david: here is bob cusack, "the hill" editor-in-chief. there is a word we just heard from the general, repeated by blake, which is sacred. i honestly thought we had reached a point where word in the true understanding of it was

beyond dimensions of the beltway. this is for me, this is one of the most hopeful moments, what i heard general kelly, restoring a sense of sacred to a place, i thought had completely lost sight of it. it hasn't. let's play a little more what the general said before i ask you to respond. to ahead, play the tape. >> when i listened to this woman, what she was saying, what she was doing on tv, the only thing i could do, to collect my thoughts was go walk among the finest men and women on this earth in arlington national cemetery. a young man, young woman, going out and giving his or her life for our country. let's try to somehow keep that, keep that sacred. but, it erode ad great deal yesterday by the selfish behavior of a member of congress. david: bob, i really want to keep that, what we just heard from general kelly sacred and

have that be the last word on this subject inside the beltway. will it be? >> i think so in large part and credit to general kelly, a very impressive man and picked the right words to take politics out of this. he is a gold star parent himself. he is a genuine man. i thought everything he said today was genuine. i think he diffuse ad situation that was really getting out of control here where you have, you have a tragedy, number one. then you have, really ugly politics and fingerpointing, really taking away from the big picture and what we should be focused on. david: it did get out of control, it was out of control. reminded me, of a totally different situation back in 1950s, when somebody said to senator mccarthy, one of his aides, sir, have you no decency?

it was one of those moments in political history this is business channel, we don't usually start with politics. we'll get to the markets but this really transcended politicsit transcended the moment, didn't isn't. >> it did. especially, general kelly was a big part of this story. trump mentioned the whole, that president obama didn't call him, but then kelly also going out and saying, yeah, he didn't call me but that doesn't mean i'm criticizing president obama, really diffusing situation. he is perfect the chief of staff for president trump. showed that in press conference last time he had it. he especially showed it today. i think the ugliness has really dissipated because of general kelly. david: again, i'm hesitant to bring politics in this at all but he is chief of staff at the white house. he does set a general direction and tone. the fact that a man who thinks and feels and senses the way showed us today is, probably the most important man in that white house has to be good for this presidency. >> yes.

he is definitely instilled order. he has gotten rid after couple of people, including steve bannon, he thought were detrimental to the trump agenda. so i do think that now, as kelly said, at a recent press conference, he was not brought in to control president trump, to stop him from tweeting, but to instill order. and that is what he has done. he is making sure that the information getting to the president is right type of information, and it is not a free-for-all. that is another skill set that kelly brings. and trump really appreciates him. trump says he will be chief of staff next seven 1/2 years. i'm not so sure of that. david: maybe after today he has better chance of that happening. i don't want to make advertisement for another channel, he mentioned an hbo show i think everybody should see. it was an hour 1/2 film with kevin bacon called, "taking chance." "taking chance" is name of hbo film. if you have hbo, look online.

get that movie. it is about sacredness of a gold star family and how important that is in our society. that is a great film. but again we can not take away from what the general just did which is extraordinary for the nation. thanks for sharing your thoughts. >> thank you. david: melissa. melissa: back to the market. back to the market. dow and s&p 500 closing at new record high. the dow turning positive in last minutes of trading, continuing to climb beyond 23,000. today we remember a day in history 30 years ago, black monday, a crash on wall street where the dow fell more than 22%. so that was 508 points. today you have to imagine that would be equivalent of the dow losing 5233 points. nicole petallides on floor of new york stock exchange. we've come a long way. >> no doubt. there are some traders on floor of the stocks exchange who were working at that time. it was a mentality we would never get out of those doldrums

and look what happened. you just saw the turnaround. you can't doubt america. look how it ran up. we have had obviously one milestone after another. today, the fourth record close in a row, for the dow jones industrial average. look at that run. most traders don't think that a day like that could happen again because of circuit breakers. taking a look also at the dow performance right now, we finished up five at 23,163. apple weighed on the dow. it came under pressure for two reasons. number one, they were cut off in china for apple watch. the cellular connectivity was cut off without explanation. that is number one. number two, more people are buying iphone 7 or 8s, because they don't the 8 is so much better. that weighs 20 dow points. names under pressure, hewlett-packard, verizon, philip morris, ebay. records, bass it back to you with an up arrow.

back to you. melissa: nicole, thank you. david: more records and president trump isn't tired of it yet. take a listen. >> people say, hey, this is where we want to be. you see stock market. we hit all-time high yesterday. i think we hit it about 49 times, mike. so we're really, we're really doing well. but we can, we can do something very, very spectacular if we're given tax cuts. david: many in the media are questioning records on wall street. look at this one headline from "business insider." if trump is doing so horribly, why is the stock market doing so well? let's bring in today's market panel. heather zumarriaga, vision four vice president. scott martin from kingsview asset management. fox news contributor. scott, i could have picked half a dozen headlines, trump is miserable but the market is great. to which you say what? >> i'd say, david, i tell you they love to make the obvious point, then take it negative,

right? or vice versa, whatever they can do to say it is trump's fault still market is okay what you see from the mainstream. i'm sure they're running out of little anecdotes. trump, administration will never get the credit they deserve, david, for the rally i think will continue, especially if we get tax reform because there is a lot of underpinnings. how about the fact we have business confidence and consumer confidence at multiyear highs? we even had business leaders we care about so dearly in this country, come out saying they have a relationship now with d.c. they never had in the history of their operations how well they feel received. melissa: right. >> that is stuff that underpins stock prices, why you should invest in stocks in your 401(k). david: heather it is not rocket science. precisely because we have pro-business president that business is doing well, right? >> tough to argue with that, david but you know that the media aside from trump.

they are running out of anecdotes, that is for sure. we have deregulatory environment all businesses happening and, corporate earnings are doing well. 80% of companies beat so far in s&p 500 on last quarter's earnings, so things are looking pretty good. melissa: senators from both sides of aisle, debating budget on the floor. many republicans seeing the budget as crucial last chance for tackling tax reform. adam shapiro is live in washington. adam, can we expect the budget to pass to pave the way for tax reform. that is the question. reporter: yes, the senate can vote later tonight, expected to happen before midnight. it is expected the budget resolution for 2018 will pass. it goes to conference. we'll have both chambers pass that and that then next is tax reform. this is last chance for

republicans saying to get their act together. that is not me saying that. listen to lindsey graham saying that. >> from the republican point of view this is the most important vote we cast in 2017 if we fail that is end of this party's ability to grow. >> i hope we get done with this tax process this year. if we don't get that done i think we don't have another opportunity to pass a tax bill in the next four years. reporter: that was senator roy blount, the only senator expected to cast a no vote for the 2018 budget resolution is rand paul because he is opposed to spending without paying for that spending. so this is expected to pass. of course democrats are opposed to the entire process because they say they're being excluded. listen to minority leader chuck schumer. >> i urge my colleagues on the republican side, reject this budget, come work with democrats, and we can produce

real successful bipartisan tax reform. reporter: so the tax reform ship is about to life the dock, not just yet, but honestly when they do pass this, we get conference committee, both chambers pass eventually the 2018 budget resolution, you will see kevin brady house ways and means committee chairman, he will drop the bill, his mark on the legislation as soon as conference committee sets out the legislation that is about two weeks from now. back to you. melissa: we'll keep watching, adam. thank you. david: by the way, wanted to say thank you to heather zumarriaga and scott martin, we changed things around. we thought we would have two segments. we didn't have time for two. melissa: you're so polite. david: they are good guys and waited for us. state of emergency at university of florida prepared for in preparation of today's speech by white supremacist richard spencer. the university spending $500,000 just for security. we'll take you there for a live

update. melissa: the governor of puerto rico praising president trump for his immediate response in the aftermath of hurricane maria. we'll get an update from the head of fema's team on the ground. david: also the isis capital may have crumbled this week but the threat from the terror group and others is still growing concern for our top security officials. >> make no mistake about it. the intent still remains. there are terrorists around the world who are intent upon using commercial aviation as their vector to present a threat to the west. ♪ copd makes it hard to breathe.

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every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. david: tensions rising at the university of florida is bracing as white supremacist richard spencer set to speak there today. security ramping up as governor

rick scott declaring a state of emergency for the event. he was same person responsible for organizing alt-right rally in charlottesville. from gainesville, fox news's phil keating. i heard half a million dollars for all of this? reporter: half a million dollars. 500,000 plus. the reason the university has to swallow that, not the national policy institute and white national it richard spencer who is one that wanted to give a speech here today, the previously ruled that, obviously, when they see live tv camera. you can not burden a speech with financial costs. otherwise, would end up being censorship because people couldn't afford to get the message out there. so right now the speech is ended. richard spencer tweeted out, he

has in fact left the campus. he is out of here. but these are hundreds and hundreds of people here, who are counterdemonstrators, counterdemonstrators. counterdemonstrators here and in fact they far outnumbered the alt-right, white national it supporters that came out here to watch the speech and take part in q&a. leave me alone, man. leave me alone. so richard spencer got his message out. we have a couple of clips, but i must set up with the beginning, most of the crowd was -- hey, buddy. just get out. >> why do you think that you need to suppress speech? the answer is because you know, that what i am saying is true. you know, that what i am saying is powerful. you that what i am saying is

going to change the world! and therefore, you all want to stop it. >> this right here what you're doing, is best recruiting tool for us that you can possibly ever give us. so i would like to thank all of you for showing exactly the kind of antiwhite hate. reporter: all right. we have trouble in the crowd. so clearly tensions have been rising. and, not everybody here likes the media, that is for certain. either way there was a lot of challenges for richard spencer to get his speech across today, because he was really shouted out and heckled out, for most of the speech, in fact -- we're going to send it back to you guys in new york. see you later. [shouting] david: we'll try to protect our reporter there. of course that is the left-wing that is going after what they see as problems with the right-wing. phil keating knows how to do this. he knows how to work his way

through a crowd. a very hostile crowd in gainsville. if we hear of any updates from that, we'll bring it to you in this hour. but you can see things are getting quite hot there, melissa. melissa: former president george w. bush appearing to take swipes at president trump today, but without mentioning his name. bush spoke at a conference in new york, pushing americans to protect democracy and oppose those things that may threaten it. he mentioned a sharpened partisan divide and atmosphere of bullying in american politics right now. >> bigotry seems emboldened. our politics seems more vulnerable to conspiracy theories and outright fabrication. our young people need positive role models. bullying and prejudice in our public life set is a national tone. provides permission for cruelty and bigotry, and compromises the moral education of children. melissa: on both sides. the former president also touted the benefits of free trade and

warned against what he called, the return of isolationist sentiment. david: threatening democracy, we saw an example of that with phil keating what he had to go through in gainesville. we're just trying to report, folks. that is all we're doing. amazon is getting ready to make a crucial decision all around the country. cities are urging the online retailer to pick me, pick me, for their new headquarters. so where is it going to end up? plus puerto rico still suffering greatly after being hit by hurricane maria. we have a live update from puerto rico coming up next. >> it is costing a lot of money, having fema, having military, having first-responders and we're doing that because we have a obligation to puerto rico, to humanity. we have an obligation to ourselves. ♪ introducing shield annuities,

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david: just a little housekeeping. just so you know, phil keating is okay. we reached him by phone again. we apologize for the fact some

protesters there were giving us the finger. melissa: yelling profanities. david: yelling f-bombs. we were not responsible. unfortunately they saw the logo, fox news. these are left-wing radicals out to make trouble. we'll try to be a little more careful. obviously it is live tv. you can't always govern what is shown. we thank you for your patience. melissa: authorities in puerto rico continuing cleanup efforts one month after hurricane maria made landfall, with the goal of restoring 95% of the power to the island by december. ricardo rossello met with president trump earlier and outlined what needed to be done. >> i petitioned the corps of engineers and i petitioned fema and our power authority to work together, so we can be aggressive and get results for people of puerto rico restoring energy as soon as possible, while keeping an eye on having

the opportunity to have a better system for puerto rico. melissa: joining me now on the phone from puerto rico is a fema director, federal coordinating officer on the ground there. from the press conference, we heard that exchange we heard today, it sounded like things were getting better, but tell me, what is it like on the ground there? >> well, thank you for having me. at this time we have 19% of the power restored but we have, we have installed 148 generators. we're keeping 67 hospitals open. 43 are on grid power right now. the others are -- support and we're maintaining that. we have one of the largest medical responses in puerto rico right now, in, right now, also we have provided 3.6 million gallons of bulk

waters to dialysis centers to hospitals, 10.5 million meals. 2.9 million gallons of diesel to make the generators working. we have established a process by which we can start doing debris removal in puerto rico. almost all roads in puerto rico have been clear of debris. we have roads open. we are taking care of our -- part of the island with 27 municipalities in the center of the island that have sustained heavy damages. we are taking care of dropping commodities by air. so, we have right now, again, probably about over 500 missions to drop food and water. melissa: we all have a lot of friends there, especially given the part of the country that we're in here, and they yell back at us when they hear about these statistics it is all, the

rest of the -- it is all san juan and rest of island is still suffering what do you say to people that say that to us? >> i say we have over 78 helicopters flying to the center of the island. we have dropped over 700 drops of drops of commodities to isolated parts of the island. we have all the food that has gone through the municipalities. now we have 74 voluntary agencies active in disaster working, cooking hot meals for puerto ricans all outside of the metro area. the metro area has power. the metro area has some supermarkets open. we understand that our assistance is going to all the island, all throughout the island. we have supplieded every municipality with commodities. the national guard is opening points of distribution in municipalities have large

numbers of population -- so we can duplicate the amount of commodities there. >> if people here in the u.s. want to send their family something there, what is working right now? last time we had someone on the show they said fedex is working. then i heard from is so many people, i tried to send stuff with fedex to puerto rico. it is not working. what helps for people that want to help out? >> right now the post office is 100% operational. we have right now, they might not be able to distribute to certain addresses because the fact roads are impassable or the homes are not, not present. you know, we lost many homes in the disaster. but actually they are delivering mail to the post office, most close to the home. [inaudible] melissa: your governor addressed the question today about corruption, about the idea there were some local politicians that were making off with some goods that came in, and you know we

hear a lot of stories like that. what can you say if anything about that? >> right now, we have to trust that the local governments are doing best effort to get food and commodities to everyone in the island. the state is actually taking action to look at that situation. we're concentrating on making sure that the mission critical aspects of our operation to deliver commodities to assist the power authority that right now has 72% of potable water going through the pipes, that energy is restored. we're concentrating on mission of support. the state government is looking at those actions. melissa: thank you for coming on today, telling us about the situation. we want to keep focus on that. we want people to know that we haven't forgotten people of puerto rico. please come back. thank you for your time today. very important. >> thank you for having me. david: we have some breaking news on the earnings front. paypal reporting third quarter

results. the company is up 3% after hours following a beat on both earnings and revenue. the company citing record customer growth for the quarter. they added 8.2 million more active customer accounts. good for them. melissa: what an hour so far. all right. david: just getting start, folks. melissa: planning another 9/11-style attack. how u.s. officials are monitoring constant threats from isis and al qaeda. david: plus paving the way for tax reform, senate republicans voting on a crucial budget resolution. a key measure getting the tax overhaul done. next senator john hoeven weighing in on the progress so far. >> if we get this done it will be historic, it will be the biggest tax cuts in the history of our country. and i can tell you we have tremendous support for this. we all depend on trucks.

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>> in support of the budget. >> pass a budget. >> a budget. >> providing legislative tools to advance tax reform. >> tax reform. >> cut taxes. >> tax bill. >> tax reform. >> pass tax reform. >> to those republicans and democrats too, you're welcome to join. melissa: talk of the budget and tax reform just not stopping. republicans, pushing their budget plan in order to get the ball rolling on tax reform. they are not forgetting about health care either. how can they get all of this done. here now republican senator john hoeven from north dakota. first, what do you think is

going to happen now with the budget? what do you think happens tonight? >> melissa, i think we'll pass a budget. it is going well. hopefully won't be too late. we'll stick with it to get the budget passed. we need to set up tax relief. so we can pass it with 51 votes. melissa: yeah. do you think it will be 51 votes? how do you think the whole thing will play out? what is your bet? >> we need to pass the budget so we can pass the budget with 51 votes. we hope democrats join with us. obviously concern if we don't get it passed, you're at 60 vote threshold. that makes it harder to get done. we're determined to get it done. melissa: i know the rules of game, but i was asking do you think it is that close? where do you stand on the tax position? do you feel like it's a good number of people? do you feel one-vote type situation? what does it feel like? what is the buzz? >> you mean on budget? melissa: no on tax issue.

as you start to talk about where everybody goes. i got to tell you if you fail on budget, people will freak out. all day long they have been saying it's a foregone conclusion. i'm speeding ahead to our pet issue here on fox business which is taxes. this is pro-growth economics. we have to unleash economy. we have to unleash businesses. we need to really grow. how is that battle shaping up in your mind in terms of numbers? >> melissa, it is going well, in terms of numbers, i think we get some democrats to join us but we don't know. getting to 60 would be difficult. we hope they will get on with us. but we certainly will have 51 we need and hope some democrats will join us. melissa: what will change along the way? we heard broad strokes. we heard about the corporate tax rate cut which is essential. but what do you -- there are things that seem like they may be dangled out there as perhaps bargaining chips. the idea of getting rid of the deduction for state and local

taxes, it is something that will drive you know, all of those representatives and senators in new york, california, the big places, that is going to be a tough sell to them. do you think that is really in the final tax cut? >> i think it will be, but that doesn't mean there won't be modifications. for example, allowing property tax deductions up to a certain amount. that might be, you know, concession or part of getting to something that is still works while still not allowing state and local taxes to be deducted, but maybe, exempting property taxes or allowing them to be deducted up to a certain amount. those are kind of things that may help bring some democrats on board. obviously we'll look at those kinds of things. melissa: what is the biggest hurdle what you heard so far in the details? >> we have very much focused that is tax cut for middle class. melissa: right. >> and something else you said is very important, this is

pro-growth. the benefit for just not only keeping more money after tax, a rising tide lifts more boats. economy pushes wages and income higher that is been stagnant. that is two-fer if you will. our focus is on the middle class. that is something we emphasized. but we have to make sure job creators get relief, small businesses, so you get the income growth as well. melissa: do you think the estate tax, does that become something that's a stumbling block? do you end up giving that away? they're panning this as tax break for billionaires as they try to pass along their money to -- that is one of their main talking points on the left. do you get rid of that part? >> certain think there is push back there, remember the death tax is taxing wealth that has already been taxed once or twice already. so, again, going back to capital formation and job creation, we should eliminate the death tax. we'll try to do that. yes there is pushback on other side. melissa: you're preaching to the

choir on that one. we don't like taxes of any type here on this -- all taxes, i never met a tax i liked. so there you go. john hoeven, senator, thank you for being on. we appreciate it. >> thanks, melissa. >> good luck to him. meanwhile everybody wants amazon in their town and today is the last day for cities to submit their plans. wait until you hear what some are offering. you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

melissa: time is running out. today is the deadline for cities to send in their pitches to house the newest headquarters for amazon. jeff flock is at a possible site for the online retailer to choose in chicago. jeff, do you think that is the winner? what do you know? give us the inside scoop. reporter: i got no inside scoop for you. there are hundreds of nominees out there, including what was the biggest post office in the world at one time. this was the old chicago main post office. the city is offering it to amazon. it has got millions of square

feet. it is a behemoth building. it has been say can't for 20 years. we have a drone that went up earlier that gives it sense of you normty of this. the eisenhower expressway runs beneath it. people all over the country applying for this. they think they have got what it takes. amazon says that is 50,000 square feet right off the bat. as many as eight million square feet. they need to be within 30 miles of metropolitan population center. 45 minutes of a international airport and mass transit to the site. cities, towns doing everything they can to attract them, new york lighting up empire state building in amazon orange. some people thought it was just halloween. anyway, one town in new mexico, no it was arizona i think, sent amazon a cactus to which amazon applied, unfortunately we can't

accept gifts, even really cool ones so we donated to the desert museum. what tax breaks will be donated to amazon and impacts on brick-and-mortar retailers as a result of mom-and-pops nobody is saying that, melissa. >> that is what they're saying. they don't accept gifts. i bet they look for tax breaks and good tax environment. chicago wouldn't normally be one. i they cut a special side deal. jeff flock, you're fantastic. reporter: we're good at making deals in chicago. i tell you that. >> offer you can't refuse. david: i say denver, colorado. jeff was mentioning halloween. here is another sign commissars of political correctness, halloween is considered too, i'm quoting non-inclusive to be celebrated in two elementary schools in massachusetts. the schools told parents, quote, it felt awkward planning something not everyone would

enjoy. one of the schools even replacing the name, halloween, with wait for it, black and orange day, melissa. children in these schools will now be spared a lifetime of trauma, answering that emotionally disabling question, trick-or-treat. melissa: i mean it is amazing. i understand in some places this could be for religious reasons why they wouldn't have halloween celebration. if we banned everything that didn't go along with everyone's beliefs, i don't know. david: saving all those psychiatrists of all the kids traumatized by trick-or-treat. melissa: remaining vigilant against those who wish us harm. terrorists planning more attacks like 9/11. how officials are responding to the persistent threat. ♪ often reveals a better path forward.

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melissa: breaking news. more people returning home in california to survey the damage from the deadliest wildfires in state history. the california insurance commissioner just announcing the preliminary cost of the wildfire losses, exceed a billion dollars, and are expected to rise. david: as well as the death toll. meanwhile isis may be losing ground in syria and iraq but acting homeland security director elaine duke reminding us of a continued desire by isis and other jihadi groups to inflict large-scale, 9/11-style attacks. with us now, dr. saudi jaster, president of the islamic american forum. doctor, good to see you. no doubt they're losing ground in syria and iraq, some question about the philippines but as they lose ground they become a wounded animal, more dangerous in enacting terrorist attacks

than they were before. >> absolutely. we forget their recruitment tool is jihadi attacks, vehicular jihad or attacks as they do in europe or whatever. they may lose territory. the territory was for them to put their flag down, to get oil reserves, food money, sex slavery, other things that allow them to have infusion of income but the ideology grows on the run, when they're victimized, they ultimately take credit for things they may not even have done. we've seen staccato increase recently of attacks. even al that bab which is not isis but growing into this jihadi brand, we saw in niger the attack that killed our four servicemen. ultimately they will continue to try to increase the brand and try to claim that they are going to do some major operation which might be a distraction so they can do some other attack through their viral mechanisms they already have. david: i don't want to downplay the enormous success we've had. this administration is staying on top of things, thinking ahead

of isis, as opposed to reacting to isis. how do you think now our strategy will change? now that we have squeezed them in syria, squeezed them in iraq, what do we do different now to make sure there is not another 9/11 attack? >> absolutely, we finally a president and department of defense that is waging a war decimating them militarily but what needs to change, we continue to a military "whack-a-mole" program unless we look at precursors, non-violent, islamist ideology which is salafi jihadism exists in many regional countries from iraq, saudi arabia, egypt, somalia, pakistan, et cetera. we will have to wage a war against the offshoots of tehran, the hezbollah law that filling vacuums isis used to have, which led to war in kirkuk against the kurds. i hope we don't abandon our real allies like peshmerga and kurds.

david: by the way that is a tragedy, now their allies, one-time allies, iranian related shia in iraq are going against the kurds. do the kurds survive, very quickly? >> i think they will, behind the scenes we'll be protecting them. but long term we need to shift what we're doing on the ground. david: got you. zuhdi jasser, wish we had more time. thank you for being here. appreciate it. >> thank you. melissa: debate president's plan for tax reform. senators ted cruz and bernie sanders going head-to-head. it is not policies making the headlines today. copd makes it hard to breathe.

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>> bernie i didn't interrupt you. >> you are not interrupting. >> it is the italian in me. >> some might say curb your enthusiasm. by the way, the impression that larry david does of you what spectacular.

>> some day. melissa: that was rehearsed that was great, risk risk starts right now. >> it stuns me that a member of congress would have listened in on that conversation, it stuns me. i thought, at least that was sacred. liz: a markable appearance by president trump's chief of staff, john kelly, a veteran whose son died in combat, in calling criticism of the president by a democrat congresswoman, unfair. welcome to "risk & reward." i am elizabeth macdonald, a somber appear answer in white house briefing room,