[closing bell rings] the dow off 160 points. the vix, the fear factor going up just a little bit. the dow under 26,500. that will do it for this year. let's go to melissa and david "after the bell." melissa: stocks sinking into the close after friday's record run. the dow ending the session at the lows. you can see it there, looks like it will be down about 180 points. s&p and nasdaq slumping, final minutes of trading as well. i'm melissa francis is i'm david asman. a little bit of news today. a lot of stuff going on. so glad you can join us. this is "after the bell." what else is driving today's selling, but here is what else we're looking again. very busy news day. we may see about the classified memo about bias in the justice department and soon of the fight coming to a head whether to publicly release a document that allegedly reveals misconduct by the fbi and their improper targeting of trump campaign.

the house intel committee expected to vote within next couple hours if not minutes this is the fbi's second-in-command, andrew mccabe reportedly leaving his position after months of complaints over conflicts of interest. was he forced out? we'll have a live report from the white house we'll speak with former fbi assistant director bill gavin, florida congressman matt gaetz of the house judiciary committee. he has seen the memo for more how this could have gone down and if there was anything about mr. mccabe in the memo. diane black, liz peek, dan heninger, linda mcmahon. do we have room for more? melissa: good lineup. market dragged lower by shares of caterpillar, chevron and apple. nicole pettalides on the floor of the new york stock exchange. nicole, talk to me about the selloff. >> you can't have up days and records every single day. the big picture here we are seeing some selling across the

board. just about every sector was to the downside except for one small sector in the consumer area. so the selling was broad based. big losers energy, utility, telecoms were among the big laggards. stocks sold off as bond yields moved higher. they have the inverse relationship. the dow moved to the low of the day. there was some accelerated selling going into the closing bell. not great for the bulls. obviously that is not what we want to see when trying to move to the upside. look at the treasury yields you see the 10-year bond moving to 2.7%, above that level. that has been crucial. the vix, the fear index also accelerated into the end of the day. had been about 13%. it moved higher throughout the day. it was 22% to the upside. there it is, 23%. closing at 1363. this is the highest level and highest closing level for the vix which is a gauge of fear and nervousness on wall street. haven't seen a close that high since august, mid-august.

caterpillar, one of the names that did weigh on the dow jones industrial average. it was the biggest loser, down 2.7% this is all concerns over margins and also that there is concern regarding trade and nafta and negotiations have not been very optimistic according to some of the analysts. that weighed on caterpillar, big picture. then there is good ol' apple. apple weighed across the board despite tech stocks hitting highs. apple sunk 2%. the nikkei reported that apple could be cutting their production in half of the iphone x. that just shows that they're not getting the huge demand that was anticipated for the independent phone 10. and that weighed on the stock. has been talk since last week. we see it down 3 1/2 bucks today. back to you. melissa: nicole, thank you. david. david: another loser, mr. mccabe, suddenly removed, fbi second-in-command, andrew mccabe is apparently leaving the bureau. the news coming a day before

president trump set to deliver his first state of the union address tomorrow night. our own blake burman live at the white house with the latest. blake, do we have any confirmation yet from the fbi? reporter: a source tells fox, the number two at the fbi, andrew mccabe, was essentially removed from his post there. when you add up all the accrued time mccabe had, keep in mind he was set to retire in march anyway, when you add up all the time this was essentially the very first day he could leave the bureau to receive full pension benefits and that is exactly what happened. the president has been very critical publicly of mccabe. just last month sending out two tweets in his direction questioning mccabe's intentions. but at the press briefing earlier the press secretary sarah sanders said the president had no role in mccabe's removal. in fact many were surprised the when the news dropped. sanders took it a step further that the president applied no

undue pressure on the fbi. >> the only thing the president applied pressure to make sure we get this resolved so you guys and everyone else can focus on things americans actually care about. making sure everybody gets the russia fever out of their system once and for all. reporter: former head of the department of justice, eric holder came to defense of twitter, writing, deputy director andrew mccain has been a dedicated public serve who served this country well. sanders would not characterize mccabe in the same manner. >> i don't have a personal relationship with him. i will not describe him. we talked about some of the concerns that we have with some of the actions that he has taken, but in terms of anything specific regarding the deputy dec tore, particularly the news reports of today, i would refer you to the fbi. reporter: interestingly enough, david, as all of this was happening here at the white house the head of the fbi,

the director chris wray, the number two at the department of justice, rod rosenstein were here at the west wing. they were meeting with chief of staff john kelly. david: probably smallest thing he talked about, get as full pension at age of 49. i want some of that government action. blake, thank you very much. melissa. melissa: here is bill gavin, former fbi assistant director. thanks for joining us. what do you make of this whole situation? >> melissa, this was something in the works i'm sure. andrew mccabe lasted this long so he could reach his 50th birthday. it is not obtaining full pension at 49. you have to be 50 and serve 20 years of full service. adding annual leave and sick leave takes to retirement date in march. if it is something that should have happened earlier? that is open for debate. it shouldn't, it shouldn't be the last step of people removed

from those positions in the fbi headquarters. melissa: if all this could be predicted, he had accrued time, all that kind of stuff and you get to retire with full benefits at 49, i think to our audience sounds like quite a sweet deal, why did it come as a surprise? why all the hoopla if it is just standard? >> i can't explain why that is but he won't obtain the benefits at age of 49. he will have to be age 50 to obtain those benefits. it is, those are things that perhaps as this goes down the road if there is something somebody finds has been done wrong or there has been some criminal involvement, those are things that will be negotiated or worked on subsequent to his retirement but right now, he is a federal employee who has the right to retire at the age of 50 in march. i'm sure that is why he took the date today to leave. melissa: no, we understand. go ahead. >> i was going to say the other side is, that the four-page memo

soon to be released i believe may he might very well know what is in there. that might have hastened his withdrawal as well. melissa: depending which universe you're coming from right now, whether #releasethememo or #russian collusion you read something different into this. half the planet thinks he is retiring on the day the memo is likely to come out. the other half thinks he has been forced out by the president as the noose tightens around his neck, vis-a-vis russian collusion. introducing this third possibility that this is his vacation days that he has built up, that he can get paid until his 50th birthday is yet a third thing to read into it. and it sort of leaves the whole world a little bit confused, even more confused what is really going on in the law enforcement community. how do you respond to that? >> it's a difficult set of circumstances. any of those possibilities,

melissa, as you said are possibilities. we are going to have to wait and see how this unfolds. it's a work in progress as it were. there are other shoes to drop this in this thing i'm sure of that. melissa: bill gavin, thank you. david: the markets barely moved after the announcement that fbi director andrew mccabe was removed or is about to be. let's bring in liz peek, columnist for "fiscal times," dan henninger, deputy editorial page editor for "the wall street journal" and fox news contributor. for two hours of coming resignation and if it hasn't all happened the markets yawned. they recovered a bit but ended the day down at the lows. the market thinks all this stuff in the beltway is bloviating. what do you think. >> i think it is more than bloviating, david. i think the mccabe was coming,

coincident with the release of house intelligence memo. if the market is not reacting to any significant way, david, it may be because it is discounting the possibility of a national crisis at the level of the presidency. david: dan, you have sources very close to what east going on there. are we close to any kind of crisis? >> i don't believe we are getting close to a crisis. we've been into the russian collusion story for at least a year. i don't believe mr. mueller is any closer to taking down the president as we might put it. that i think is being discounted. the question has kind of shifted over to what was the involvement in the fbi whether it had gone over the political lines and that is what is going to be raised when this memo is finally released. i don't think that quite reaches a level of a national crisis. that is why the market is backing off some from the prospect that the president could be put at risk. david: the liz, has been indifferent to what i would call

beltway hysteria for several months even going back to the beginning of the trump administration. just a couple weeks ago when we were right on the verge of a government shutdown, friday before we were, the market closed at another record high, it was up to 26,071 points. even before the government shutdown the market says, so what? >> that is because the economic news has been absolutely overwhelming and has been the response to the tax cuts. we're talking about s&p earnings in the first quarter may be up 20%. up 18% or so for the entire year. plus i think the next shoe to drop is capital spending is accelerating. that is bringing in what i would call kind of a tipping point in the market. people are now worried about growth accelerating, what does that mean for interest rates, inflation, et cetera? i think the market is a little skiddish. we had a historic run here. the possibility of a drawback has been much talked about. it may be because the good news

is simply such good news at this point. david: dan, i don't want to add to the hysteria, there is enough his tariqs in beltway we don't need more panic but the media will speculate that mccain, mccabe was forced out by the white house even though the white house is saying that is not true, could that being a sell rate the hysteria? >> the media in the washington deeply in the russian collusion narrative, no doubt about it. as far as the white house goes i think the president would do himself a favor stop tweeting about people like andrew mccabe and let the process unfold because those tweets undermine the idea there is really nothing going on there. at the moment, that appears to be the case. so why make it easier for them to run a narrative that this, someone like mccabe is being forced out by the white house, when in fact that is not what is happening. david: dan, and liz, we have to leave it at that thank you both very much. appreciate it.

melissa: we're waiting results of a big vote on capitol hill, the house intel committee deciding whether or not or not to publicly release a damning memo under the fbi under the obama administration. republicans believe it could illustrate how the fbi improperly spied on the trump campaign. florida congressman mat gates sounds off on this and more -- matt gaetz. president trump delivers his first state of the union address tomorrow night. we're hearing republican leadership now issued with the latest proposal with less than two weeks to go before a government shutdown? we'll speak with congressman diane black, from the capital next. >> we think it is in total alignment with what the american people want. look, this is, i think the president has hit a brilliant sweet spot here and i can't imagine why democrats or any republicans wouldn't support this because it solves the four

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david: approaching a crucial deadline, the left and the right can't seem to come to an agreement when it comes to immigration and what to do with the hundreds of thousands of so-called "dreamers," who are potential i, potentially facing deportation. adam shapiro live inside of the beltway. adam, will they be able to strike a deal, march 1st is the deadline? reporter: march 5th i believe. march is the important thing, when the daca program will expire, a lot of things will be sent into motion which could lead to deportation of 800,000 people. the administration was proposing a immigration deal would clear clear those 800,000 up to

1.8 million "dreamers," what president trump proposed along with request for $25 billion to build a border wall. where do you go from here? on capitol hill a lot of people trying to work out deals but the problem solvers caucus, a bipartisan group of democrats and republicans proposed what could be a foundation for compromise and a deal. what they're saying, you will have a path for citizenship for "dreamers," talk at that students a as long as here by 2012. 1.59 billion for border wall funding, not the 25 billion president wanted to begin design of a wall. end to chain migration, not citizenship for parents of "dreamers" but three-year renewable legal status for those people. kirstjen nielsen, head of homeland security talked about need for a compromise. >> this is a compromise the president offered as compromise

listening to many parts on the right and left but will continue to work with whoever wants to work with us to get something passed. reporter: there is opposition to what even the president is proposing from conservative republicans. lamar smith from texas said this >> i don't think we get to an immigration bill by february 8th. i think, as the senate has promised, senator mcconnell promised there will be some debate on immigration bill on february 8th but we have a ways to go as we should. reporter: david the chance of something getting done by february 8th, we hit the funding situation for the government, as our producer pointed out milli-vanilli would have better chance of getting another grammy award. melissa: my goodness. david: thank you, adam. we'll talk about the grammys coming up. melissa. melissa: house leader nancy pelosi is tearing into president trump's immigration plan, her comments angering members of her own party. take a listen.

>> last night the president put forth a plan, let me just say what i said last night that plan is a campaign to make america white again. melissa: here now is republican congressman diane black from tennessee. she is on the budget committee and the ways and means committee. you know, honest question, i always wonder, does it impact the negotiation when politicians go out to the camera and say things like that, or do you understand she is sort of talking to her base and everybody has this rhetoric and when you come back together, it is like that didn't happen? what is it really like behind closed doors? >> i'm just going to tell you my experience with miss pelosi, she has a pretty good heavy hand with her own conference but i know behind the scenes dealt with her own members they're not all agreement with her. they're getting worn out with the political partisanship she just spews all over the place. it is not even reasonable what she says. so i think most people that are rational people here, are willing to sit down and talk

about this issue of daca and securing our borders. the first thing for me is absolutely the safety of our country and securing the boredborders. we have to come to consensus what that means as far as dollars go. we talk about other things like visa lottery program and other pieces, the chain migration. melissa: i also think if you watch president trump's negotiating style, one of the things that he does is give the other side what they have been asking for out of the gate and it sort of throws them off balance because then what do they have to complain about? that is what happened here. they were screaming daca, daca, gave even bigger than daca. the original number was 700,000. you know what? i will push it up to include the family too, go for almost 2 million. democrats didn't know what to battle back against. so they kind of started yelling about the rest of it and on the back of everyone else, you know,

this is indifferent kind of negotiating technique they're not used to. your thoughts on that? >> pardon the old phrase, egg on your phrase i think you're exactly right because the president even opened up the doors to the media to come in and see he is sitting at the table. he wants to speak in bipartisan way how we get this resolved. on top of the list is security. we can work down from there. i will tell you frankly that the pieces he put on there with daca are not what we had originally heard from the president. melissa: right. >> so there are a number of us conservatives are not on board with him there at this point in time. we believe that perhaps there should be, yes, a legal status but, path to citizenship would be something that would be more difficult for us because that was not what was talked about. but this is all in negotiation. we'll hear what the president has to say first of all. then we'll sit down and talk about it. that is what we should be doing rather than having as

nancy pelosi does this venomous talk that gets everybody upset and even her own members are unhappy with her about that. melissa: it was interesting starting point, put something in there something everyone would love and something everyone with would hate and started negotiation there. he didn't come down where people expected. congresswoman black, thanks for joining us. hope you come back soon. >> thank you for having me. david: she may come back as governor of tennessee. she is running for governor. taking his place in history. president trump preparing for his first state of the union address like a lot of other presidents before him, should he take a victory lap on the economy or is it too soon? we'll talk to art laffer, former reagan economic advisor next. >> i think he will try to lay out the case for infrastructure and the case for stronger military and that our policies, generally speak having been working. ♪

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>> we worked together to bring down spending, tax rates and inflation. employment climbed to record heights. there is only one description for what together we have achieved, a complete turnabout, a revolution seven years ago. america was weak and freedom everywhere was under siege. today america is strong and democracy is everywhere on the move. david: that of course was president reagan touting the economic turnaround during his final state of the union address 30 years ago. will president trump strike a similar tone tomorrow night when it comes to the strength of our economy? here is now art laffer, former president reagan economic advisor and laffer associates. that was seven years after the reagan presidency. he did a lot of stuff after those seven years. we only had one year for president trump. a lot of people are saying that is too soon to claim economic

turn around. what do you say? >> those people may be right, trump's first year was much, much better than reagan's first year, than kennedy's first year or clinton's first year. of all the great presidents for economic growth, trump has done the most in the first year of every president on economics. that is amazing what he has done. this tax bill is spectacular. now the fruits of this tax bill will be coming in, six, seven, eight years. david: right. >> reagan's were wonderful too, don't get me wrong. he was spectacular. david: he had to live through year-and-a-half of a pretty nasty recession. the one thing i think it is fair to credit president trump with, is this deregulatory program. in the last year of the -- we had to look it up, in the last year of the obama administration, the federal register which is the book that lists all of the regulations we had was 97,110 pages. that is by far an all-time record. this president trump, has

removed 22 regulations for every new regulation. that has to be a record as well. >> that is wonderful but the reason we had a big downturn with reagan because we phased in tax cuts. david: that's right. we talked about that. >> deferred income and out put of employment. we had a big downturn. trump avoided that mistake. david: good point. >> the senate wanted to but we didn't. the reason you get the little dip in the fourth quarter, because we knew the bill would pass, but would start january 1st. that is why you get a little downturn -- david: because a lot of naysayers on friday saying that it didn't meet expectation. >> yes. david: therefore that was proof that you know, that the economy isn't as wonderful as trump says and you say not so. >> it is proof that the economy is as wonderful. believe me it will catch up. if you had income you could realize last quarter of last year or first quarter of this year, which would you do? one at 21% tax rate.

one at 35% tax rate. duh. david: is there room to grow from here? >> there is huge room to grow. david: have we shot too high, too fast, too soon or is there a way to sustain this over the next few years? >> this tax cut, these policy changes can sustain this type of growth for a long, long time. in fact, i believe it is going to accelerate the growth. would i guess that the next two years we'll see average annual growth rate of somewhere in the 4% range. that is much less than it was in reagan from january 1st, '83, to june 30th, '84. that was 12% growth or annual rate of 8% then. david: we'll save the tape because you claim that the last quarter of 2017 was slower than expected because people were deferring some of their, some of their investment until 2018 when the tax cuts kicked in. it won't be long. that means that the first quarter of 2018, according to you will be spectacular? >> i think it will be much better yes, than the

fourth quarter of last year, yes. david: you wanted to say something about congresswoman black? >> she is most wonderful person. she will be our next governor. she is absolutely wonderful, david, thank you for letting me say that. i really think she is amazing. she will make a great governor in this wonderful state, which should be example for the whole country. david: we would like to invite her competitor who happens to be would come on as well. >> i was thinking of running but i'm not going to run. david: art laffer, we need you in your field, not in the field of politics. we need you as a truth sayre, not as something else. art laffer, thank you. >> thanks, david. melissa: u.n., president trump welcomes members of the u.n. security council to the white house rallying support bense a major terror exporter. david: another attack rocking afghanistan. why now? what is going on there? peter brookes weighing in on this increasingly tense situation. ♪

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not just being in the military, but at home. she thinks she's the boss. she only had me by one grade. we bought our first home together in 2010. his family had used another insurance product but i was like well i've had usaa for a while, why don't we call and check the rates? it was an instant savings and i should've changed a long time ago. there's no point in looking elsewhere really. we're the tenneys and we're usaa members for life. usaa. get your insurance quote today. melissa: the atrocities that -- >> the atrocities that they're committing and killing their own people and those people are women and children, many, many women and children that are totally innocent, it is horrible. so there is no talking to the taliban. we don't want to talk to the taliban. we'll finish what we have to finish, what nobody else has been able to finish, we're going to be able to do it. melissa: carnage in kabul, president trump commenting on violence where 11 afghan

soldiers are dead, with an attack on a military outpost with the islamic state claiming responsibility. this follow as string of attacks claimed by the islamic state and the taliban. peter brookes, heritage foundation, senior fellow. start with why are we seeing this right now? >> that is interesting. a couple of dynamics could be going on. melissa, the president has new strategy. we're starting to up number of troops in afghanistan, probably up to 15,000. not perfect time of year in afghanistan, fighting season, spring, summer into the fall. this is cold there. so these attacks can be more effective. the taliban and islamic state want to undermine the credibility of the government, the people's support of the government. that is important to any sort of insurgency. i also think if you look at the recent attacks they have almost evenly split between the islamic state and taliban. they're competing with each other for followers, funders and foot soldiers as they move

forward. melissa: some linked idea that the president pulling back funding to pakistan. they have been our frenemy and not our ally they should be. do you think there is a connection there. >> they could be. that is risky on the part of pakistan. the relations between the united states and pakistan are very difficult. the haqqani network, al qaeda affiliated, and taliban, which is al qaeda affiliated have found sanctuary in pakistan for quite some time. the president held back aid to pakistan because of this concern. very difficult to win in began if the bad guys are able to find a place where they can recover, rest, and plan across the border in opposing state. melissa: we are looking at the carnage on the side of the screen here. it is just difficult to look at. what do you think is the proper response for the u.s.? >> well we have to continue with our strategy. we have a new strategy, a new policy. now the challenge is

implementation. we need to continue to train and advise the afghan forces to take on this fight. that means pushing our troops down to a lower level, to advise more on the battlefield. once again this is a new strategy. we have to push forward the implementation. melissa: i want to bring you over to iran now. officials from the u.n. security council in d.c. viewing weapons parts linked back to iran, and they were given to rebels in yemen that were backed by iran. >> right. melissa: what impact does this evidence have on all the sanction agreements that we're seeing that are in place with iran? is that the point of bringing out this evidence? >> i think there is a couple of things. first of all iran denied they were supplying weapons, especially missiles to the houthi rebels in yemen in the yemeni conflict. if they are, i think that is what they're trying to prove here, this shows they're in violation after u.n. security council resolution preventing countries from providing weapons into the yemeni conflict. there are two things there. i would imagine that the

administration wants to also talk to these u.n. court council members about the iran nuclear deal. secretary of state rex tillerson is in europe right now pressuring some european members to renegotiate the deal, to tighten the deal, to get, add things like ballistic missiles. so a lot of people who are partner to the iran deal, p5-plus-one are here in washington to see the trouble iran is up to, to view the evidence even though iran denies it. melissa: do you think they made a compelling case? >> i wasn't there so i don't know. melissa: what the other side wants to hear? you can bring the evidence to bear but it depends, on the other side are people that want to do business with iran because they want the market, all that sort of thing. there are financial interests. do you think if the evidence was there, you know, that the other side is interested in hearing it? >> there is nothing like evidence. nothing like physical evidence to be compelling to this case.

you're right though, melissa, these other countries have different interests than the united states and iran. talking about russia, china, talking about other european nations doing a lot of business there. hopefully they came down to see it. that was good, right? melissa: yeah. >> they had lunch with the president. that is positive. rex tillerson is putting out diplomacy, putting out working groups with european countries, to talk about challenges with iran and ballistic missiles, problems with the deal itself that allows uranium centrifuge enrichment and as well has a sunset provision that allows the deal to end. if the president says we don't do something about it i will walkway from it. melissa: peter brookes. thank you very much. david: a lot of bad actors in this world. afghanistan. any way a shake-up at the fbi is the top story of the day with andrew mccabe out an capitol hill vote that is coming soon. does the so-called explosive fbi memo have a chance of being made

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david: big shake-up at the fbi. fox news confirming top fbi official andrew mccabe has been removed from his post as deputy director, after weeks of complaints of bias in the department. we have matt gaetz, house judiciary committee. first of all, congressman, sometime around 5:00 the house intel committee will vote whether or not to release this memo. even if they vote to release it won't be a couple days until we see it but is there anything in the memo, you read it, i know you can't be specific about it, but was there anything in the memo that might have lead mr. mccabe either to resign or be dismissed? >> unfortunately i can't answer that question because potentially confirm or deny what was in the memo. based on what is publicly available, the text messages, particularly between peter

strzok and lisa page referencing meetings in andy's office to discuss their insurance policy to save the american people from donald trump, that to me was sufficient basis for the mr. mccabe to move on. david: have we confirmed that the andy in the text is andrew mccabe? >> seems obvious to me based on totality of the facts that is the case. mr. mccabe may have a different viewpoint. that may be hard to maintain in factual inquiry. david: you have friend on the house intel committee. you read the memo. do you think it will be released? is that the decision they will come? >> i do. i think chairman nunez and republicans members of the intelligence committee have done a fantastic job. this memo culminates a year-long investigation they have been on to insure that the fbi and department of justice would be free of the type of political bias that some of us are so concerned about. david: all weekend, congressman, forgive me for interrupting, we've been hearing drumbeats from democrats and mainstream

media there is not a bias at fbi and doj. that you republicans are beating up on fine institutions. eric holder chimed in with his tweet or text message. said fbi deputy director andrew mccabe is dedicated public servant. he went on to say about bogus attacks against the fbi and doj. your response. >> on eric hold's watch, that the eric holder did no favor by bringing politics into the hallowed institutions we have to rely on to be unbiased no matter who is in power. so i think his comments are entirely misplaced. look, not just republicans who are saying this is troubling. it is the texts, the actual words that these people are using, talking about, you know insurance policy against the president. that undermines our democracy. we have to release the memo. david: texts between mr. strzok and lisa page, a lawyer at the fbi. first of all andrew mccabe. there is peter strzok.

but andrew mccabe is investigated for possible conflicts of interest over his wife's use of democratic funds while he was leading a clinton email investigation. now it is true that he wasn't doing the investigation at the time his wife was running. do you think there was conflict of interest there significant enough for him to step down? >> i think andrew mccabe is stepping down not likely as a consequence of his wife's activities but of his own. whether or not politics influenced decisions he made will be up for history to judge but i think the evidence laid out pretty clearly you had a group of people, mccabe, strzok and page who hated donald trump and they allowed that personal belief to manifest in actual decisions, actual investigations. things happened that should not have happened. when we released this memo we'll have a very clear understanding of abuses and bias that has infected these institutions. david: okay. there is a long list. for those in the media who say

there is no evidence of bias all you have to do is go into the fox news website. you will see a complete list of some of the people. we didn't talk about bill prestep from the fbi counterintelligence or bruce ohr, from the justice department, his wife was working on the trump memo. matt gaetz, thank you very much. please come back. >> good to see you. melissa: tax cuts, job growth, killing regulation, president trump is expected to take a victory lap for the booming economy for the first state of the union address tomorrow. is the small business community among the nation's winners? linda mcmahon joins us on all of this after the break. then at your next meeting, set your seat height to its maximum level. bravo, tall meeting man. start winning today. book now at lq.com

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melissa: when the president delivers his first state of the

union address tomorrow night, much focus expected to be on his sweeping tax reform bill. we heard from big corporations praising reform and passing along tax benefits to workers. what about small businesses? joining me linda mcmahon, administrator of the small business administration. thanks for joining us. what about that? we have heard from big businesses. how is it impacting small businesses? >> it is clearly having a very positive effect, melissa on small businesses. i've been touring the country almost a year i have been in this position but i started my touring last may. all i heard from small businesses they wanted to see regulatory relief and tax reform. now that is in place, we have already seen the benefits from regulations being lifted, and now tax reform is in place and many of the, every business to a single one i spoke to, said they would invest in their company, whether they were having more hires, raising wages, providing more benefits, producing more goods and services.

the proof is in the pudding now. i have every confidence that those small businesses will do exactly as they said they were going to do with these tax cuts. david: talk to us a little -- melissa: talk to us a little bit what within the regulatory burden has been lifted. what are specifics you can point to for small businesses? >> it is more about the volume of regulations because you know, small businesses, the ceos, they're the ceo but they also can be the janitor, the accountant, receptionist, every other thing. when they have to focus on regulatory compliance, much of which they don't even know about, it takes away opportunities for them to do their jobs and to grow their businesses. so rather than any specific regulatory reform, what i have heard most often is, while they wouldn't point to any particular reform, they said wow, we have so much less now to respond to in terms of regulations, we're really able to focus more on our businesses. melissa: do they make the connection that that's related

to washington and to the administration? >> absolutely. they are so grateful. you know, president trump, really mandated that for every new regulation there was going to be put in place, two had to be taken away. he far exceeded that by 22 to 1 and i think that speaks volumes what is happening to grow business across our country. melissa: a lot of people say this tax cut and this tax plan was about the very rich. you heard that talking point, corporations and very rich on the backs of the middle class and everyone else. it seems like it would include those people that you are talking about in the corner store themselves and doing every single job but one. they wouldn't necessarily see the tax relief necessarily already. do they feel confident it is coming despite a lot of talking points out there saying it is not coming? >> they're very confident it is coming. we're looking at about what,

$5.5 trillion in tax cuts? 3.2 trillion of that, 60% is going to middle income families and small businesses? that is going to make a significant impact. small businesses will be able to deduct 20% off their taxable income before they even get into the reduced tax brackets that are going to give them even greater benefit. this is win/win. melissa: i hope that is true. i talk to some people that gave up on their business at the beginning of the year. i tried to explain what was coming in terms of reductions and relief. they got out exactly at the wrong time. what is the most surprising thing you've seen in your first year on the job? >> i have been incredibly impressed by enthusiasm, optimism all across the country from small businesses when they were anticipating regulatory reform and tax reform. they were so anxious to get started. at sba, quarter over quarter, first quarter we are up about

18, 20% in loans, in our seven-day programs indicating that optimism is real because those are requests for loans for small businesses to start through investment. melissa: to expand. they have to believe the revenue is coming in order to do it. linda mcmahon, thank you. thanks for your time. good luck to you. >> thanks, melissa. david: she is also a heck of a businesswoman by the way. take as business person to be able to know what bothers business. enables them to grow more. melissa: very true. david: president trump set to give his first state of the union address tomorrow. so what happens when college students are asked about how the speech went before the speech actually happened? we'll show you coming next. i . incredible. no way. start your year off strong a new chevy truck.

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it. >> it's not up there with most. >> hopefully everything that he's outlined can be overturned by the public's opinion. melissa: what even happened? it didn't happen. david: it didn't happen but it will and we'll cover it risk & rewards starts right now. >> the president wasn't part of this decision-making process and we would refer you to the fbi where christopher rey serves as the director which as i said last week and i'll repeat again today the president has full confidence in him and has put the decisions at the fbi in his hands. liz: breaking news coming in fbi director christopher rey reportedly put pressure on fbi deputy director andrew mccabe saying you'll be demoted and conflicts of interest and after criticism from the president toward andrew mccabe who reportedly chose to leave instead. we're on that story and