bill dew. heather: it's true. bill: that size of mountain dew will keep you up all night. have a great time with your sister. heather: i will. i'll see you monday. bill: have a great weekend. jon: fox news alert. the weakest jobs numbers in a year send the stock market tumbling. what does it mean for the reoffer cover rean rerecovery. heather: i'm jenna lee. employers created 79,00 69,000 jobs in way the unemployment rate is at 8.2%. we are seeing reaction in the stock market, trading lower by 224 points. a big report, so we decided to bring in a big gun if you will, neil cavuto of the fox business network, host of your world,

neil cavuto khoeupbs u joins us now. is this all because of the jobs numbers that we are seeing it lower today. >> reporter: i think that and what is going on in europe. we are so focused on the slow down of our economy that sometimes we loose sight that a lot of these european countries barely have economies. greece is going from bad to worse. i hate to say it my mother country italy is in trouble. spain is in trouble. some of them are on the ropes. the report was startling in its breadth of problems here. you pointed out that not only the latest month bad but the prior months were revised downward. we have seen average job growth in the past couple of months a little north of about a hundred thousand. at this stage in recovery, jenna we should be seeing at least three times that. in order to get us down to just 6-something unemployment we should be seeing something in the vicinity of 400,000 jobs being gained.

we are a long way from there. the fact of the matter is is that this recovery is looking tepid. and we've seen it in other numbers. this latest news just confirmed it. now the question is whether we are just flattening out or reversing into something worse. heather worse. jenna: it's interesting because we've seen this pattern last year as well that we started off stronger in the job market and may we started to drop off and we picked up in the fall. this is a little bit of a different year because we have an election year, there is a lot of different dynamics at play. we will be seeing these numbers over the next 24 hours. our weekend newspapers will have them around the country. when we see job creation of 69,000, what should we consider when we see that number? >> reporter: i'm always concerned about the psychological affect it has. i know it gets beyond some of what is going on here, jenna. when you see a headline like this. or a bulletin or the start of you and jon's broadcast you start to think, i was getting a little optimistic, maybe i

shouldn't. i'll cutback on purchases. it's already been evidence in retail sales and companies cutting back on their investment spending. they are guarding their cash. a lot of consumers aren't opening up their wallet. it has a psychological affect of destimulating the economy. the juice that we need to keep the economy going, people get scared and keep their money close. that's why you're hearing these reports people are planning fewer extravagant trips, a lot of businesses are cutting back on plans for equipment. jenna: what is the reason behind the fact that the private sector isn't creating more jobs or even the public sector, why is there not more job creation now. >> reporter: we hear a variety of things on this. it's an uncertain future. keep in mind the tax rates, the payroll tax issue. all of these are backing up like the planes at georgia guar

laguardia. a lot of business guys work under the belief, all right give me your worst case strategy. if the worst case strategy is all those rates go up, regulations remain in effect and we're going to see the healthcare law, even if it's stymied back by the supreme court there is still enough of it left over that the burdens are going to be extreme for business, so why in an environment like that would you certainly hire more people? that's why, jenna you see a lot of these companies just sort of buying back their stock and that's about as much as they are going to do with that dough. what had been a $1.8 trillion corporate cash pile is now north of $2 trillion. they are hoarding cash, like what you and i would do in an emergency, keeping it tight, not spending the frivolously. jenna: thank for joining us early.

we always appreciate it. a programming note, we want to alert you to the fact that kneel has a really big interview and a lot coming up on the coverage of wisconsin's recall election. he's going to be interviewing governor scott walker live from wisconsin on monday and tuesday, that is starting at 4:00pm eastern time right here on the fox news channel. you can catch him today at 8pm eastern on the fox network. jon: polls show that the republican governor there, scott waeurbg is slightly ahead of milwaukee mayor tom bar receipt. both candidates are pulling out the big guns ahead of tuesday's vote. former president bill clinton will be campaigning for barrett today. nikki haley campaigns with walker. mike ttomike tobin is live for us. >> reporter: the democrats will pull out their biggest gun yet in the recall campaign, bill

clinton will step up on the stage you see behind me there. the republicans are pulling out their own guns. governor chris christie of new jersey has been here. nikki haley is expected later today. we've seen bobby jindal of louisiana coming out here to stump. the goal is to motivate the base out to the polls. here in wisconsin the minds were made up long before the recall was official. the undecided vote is within the margin of error and barely a factor at all. the pundits have long said the side that wins is the side that motivates its base to get out and vote. we've seen tremendous focus on the ground game, orbgs going door tow door trying to influence voters one-on-one in their homes. organizers are sending advance to poor areas to give people rides to polls. one woman voted in early voting saying that was the first ballot she had ever cast. she is 54 years old. jon: last night was the final tee bait between walker and barrett. any fireworks?

>> reporter: much like this campaign it has focused little on the original arguments over collect tiff bargaining and union rights. the real fireworks we saw came from the political barbs that the two camps have been flinging at each other. >> so everybody is clear the mayor doesn't have a plan and all he has is attacking me. that's what you heard loud and clear here. the mayor did not answer the question because he does not have a man. >> i'll answer the question. i'll tell you right now i have nothing to do with that. you should be ashamed of that commercial scott walker. >> reporter: governor walker goes into the home stretch here bolstered by new jobs numbers and as you mentioned a slide lead in the polls. all of the people here in this park and president clinton are hoping to close that gap. jon: no sign of president obama yet, right? >> reporter: not yet. jon: thank you. jenna: new information on secret orders that are not so secret any more. these reports, now that we have

confirmed also these series of secret orders that are waging a whole new kind of warfare in cyberspace. a senior national official confirming to fox news that the president ordered to speed up a wave of cyber attacks on iran's nuclear program in his first months in office. the operation code number olympic games at the country's main nuclear in a silt. the warm was named stutsnex. this was of particular importance. molly henneberg is live with more on this. >> reporter: we've heard of computer worms or viruses destroying other computers or stealing data but this one seems to have gone further by instructing other machines to malfunction or self-destruct. the olympic games operation started under the george w bush administration and reportedly

sped up under president obama targeting iranian president's ahmadinejad main plant. the stutsnex worm would call wave after wave of destruction in the spinning centrifuges while showing that everything was operating normally. introducing it to the plant was a big hurdle for the americans and israelis. one architect of the secret plan told "the new york times" that getting stutsnet into the plant, that was our holy grail. it turns out there is always an idiot around who doesn't think much about the thumb drive in their hands, suggesting that perhaps an unsuspecting worker there may have carried it in. in 2010 the stutsnex escaped and started replicating itself around the world. still president obama ordered the olympic games operation to continue. but the affect of the plan appears to be temporary, maybe setting back iran's nuclear

ambitions by a year or two. one final note here, one former senior intelligence official who was part of the program talked to fox and is, quote, shocked that so much of this covert program has now become public. jen jenna. i missed it, happy birthday week to you. jenna: i appreciate it. now we're in a whole other month. june 1st. thank you very much. we'll have more on this big story throughout the day. jon: the john edwards traoeurblgs the latest high profile case in which the justice department failed to secure a conviction. there is no indication that federal prosecutors will push for a new trial after he was acquitted on one count and the judge declared a mistrial when they continue reach a verdict on the other five. it also adds to the rocky record of lanny brewer who runs the justice department's criminal division. james rosen is keeping and eye on this.

>> reporter: the administration of justice is always bound to strike some observers as tainted or politicized. privately however even justice department officials have described brewer's tenure as troubled, unwilling to categorize it as a failure but conceding a series of high profile missteps by him and his team. cases in point, doj has yet to bring charges against any big fish for the wall street meltdown. brewer had to apologize publicly for failing to raise alarms about the practice of gun walking which might have aeu srerbted the fast and furious scandal. as well his division was forced to abandon a high profile sting operation in which fed red light officials posed as representatives of an african nation looking to extract bribes from u.s. firms. there is the perjury trial of roger clemens, accused of lying to congress about his alleged use of steroids which he denies. they are presenting the case in federal district court in washington. it's the us attorney's second

swing at clemens after a mistrial last year after prosecutors made improper statements. in the case of john edwards, the democrat who was the 2004 vice-presidental nominee, legal analysts had from the start questioned the novelty of the prosecution's case against him. earlier today one of the jurors praised doj for bringing the prosecution. >> i'd say it was money well spent. it's elevating to the world the need for stronger finance law and it's elevating what candidates can and can't do as it relates to a campaign. >> reporter: the head of doj's public integrity section the unit that oversaw the edwards prosecution and reports to general brewer told "the new york times" before it collapsed quote, we are trying more cases than ever in this section laps in the next hour i'll be

speaking with a former doj official who worked closely with attorney general eric holder and who defends the record of his top lieutenant, lanny briar. that is ahead today on fox news. keep it here. jon: we will do so. jenna: surrogates are supposed to speak on the president's behalf. jon: to help them too. jenna: some like bill clinton are breaking ranks with the campaign and choosing not to attack governor romney's success in the private sector. why are so many surrogates straying off message? we'll talk a little about that in a fair & balanced debate. jon: june has an interesting history when it comes to presidential polls. larry sabato on what they really tell us about who will win in tpho*f. jenna: this toddler is missing. she disappeared months ago and now investigators are dropping a bombshell about her fate. that is next. wake up!

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mccain up over then senator obama by one percentage point. our next guest says what the polls show in june is not a very good indication of who is going to win in november. let's talk about it with larry sabato the director for the center of politics at the university of virgina. you've taken a look at the historical record and you say that june polls are not a very good predicter, larry, why? >> jon, that is absolutely true. be ware of the june polls. the last eight presidential elections, using gallop, not to jump on gallop, but because gallop is the gold standard, six of the eight elections their june polls projected the wrong winner. now they weren't trying to project, they were simply measuring what existed in june, but that's the whole point. you can't tell what the november results are going to be from what the june polls say. that is the message people should take away. they should look at june polls and say, gee, isn't that interesting? and then turn the page. jon: so in 1980 jimmy carter was

going to beat ronald reagan as of june? >> by a mile. he was way ahead of ronald reagan in june, and reagan beat carter by 10 full percentage points in november. jon: in 84, reagan against mondale? >> that was one they got right. the only two they got right was landslides. reagan's landslide over mondale although they had him up by only half of what reagan beat mondale by. and bill clinton beat bob dole by 8 percentage points. and they had that pegged right. the other cases were in the right direction. jon: michael dukakis in 1988 # was way a head of h.w. bush. >> reporter: michael dukakis led

by 14 percentage points in june of 1988. of course, president bush the 41 actually won the election in a near landslide with 53.5% of the vote in enough. just a complete turn around. jon: there are a lot of voters out there saying if these polls don't matter, why do we take so much of them? >> well, because we have to fill the time between now and november, jon, that's one important reason. i think it's also useful to trace what happens during the campaign. what happens, when it happens, why does it happen. you have to take polls all the way along to really see the story unfold. it's also useful because it tells you which groups in general are backing the candidates. hey, i can tell you today that men will end up voting for mitt romney in november, and women will end up voting for barack obama in november. we just don't know the per p sent averages. will it be a landside among men

for romney or among women for obama. jon: larry sabato from university of virginia. larry, thank you. jenna: there is a big question of what is next for john edwards. he's no longer facing the possibility of 30 years in prison at least for now after the jurors acquitted him on one count and the judge declared a mistrial on all the others. what are the chances that prosecutors will try and retry this case? that is a big question today. we will talk more about it with judge alex next. we are watching the dow take a very steep dive after weak numbers on jobs and a tough month in may. lots of 401ks taking a hit today. more on that coming up. graduation, huh ?

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jenna: today john edwards is a free man following yesterday's verdict in the corruption trial, this after deliberating for nine days, jurors acquitting him on one count of violating campaign finance laws, but failing to reach a verdict on five others. leading the judge to declare a mistrial on those counts. so what are the chances really of prosecutors retrying this case? what does the case tell us about the law in general. judge alex is a former florida court judge as well. do you think there is a retrial? >> no. jenna: why? >> i think the prosecution gave it their best shot and they didn't come close. at this point they walk away. his career is destroyed, he's done.

jenna: you think even with that statement at the end there, where he says i'd like to go on, god isn't done with me yet. >> he's done except in his own mind, but he's done. i think the prosecution, it was a difficult case, and i think frankly i think they knew it was a difficult case and they brought it more to send a message to other politicians, we will come after you. jenna: some had suggested that the judge should have been tougher on the jury, ask them to deliberate more, let this go on a little longer. what due think about that? >> no, i disagree. if the jury had come around and deadlocked in day absolutely. they deliberated for nine days. it's not like they really weren't trying here. jenna: how do you know as a judge? >> it's kind of a gut feeling. you know the length of the case, you know how long it took to try. i had a case that i tried for four and a half months, so obviously that jury i would not expect to come back with a verdict very quickly. there was a lot there. it's a gut feeling, after you've tried so many cases, and i've

tried hundreds, and with the tv show thousands. you get a feeling of how long they've deliberated and how much is enough. jenna: sometimes when you watch a story like this you come to the conclusion, is there a bigger picture that we need to discuss. some brought up campaign laws, and suggested even in a court of law and experts and a jury of our pierce that the campaign finance laws are no difficult and challenging to work through that it really shows that maybe the laws are not effective. they need to be updated. what is your sense of that as a judge, someone who knows the law? >> it's always better if the legislature can rewrite laws so that they are simpler. that being said there are a lot of aspects of the law that are complicated. it's the lawyer's job to break it down and make it intelligible and simple for the jury. even the concept of reasonable doubt, jurors struggle and pull their hair out over what does reasonable doubt mean. you can't just say well it's too come phra indicate, tha complicated.

that's the lawyers job. if it can be written in an easier way the legislature should do that. you can rewrite them as many ways as you want there will always be a buffer between the mol teugs and th politician and the act and you'll never overcome that hurdle. jenna: do you think that that's whatted w-rdhas what edwards did, skirt the law? >> yes, that's what he did. jenna: great to have you here. jon: a dismal jobs report sends the dow into a nose dive. what today's employment numbers mean. the chief economist from moody's.com joins us hrefplts the case of a missing todd lar from maine, what police are saying now about little ayela reynolds. the general's your soul mate?

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jenna: well, "happening now,"

this is the big news of the day. what's happening with the economy and the job market and the stock market right now. you see the dow in a steep selloff today, down 220 points. this is following that weak jobs report for may. the labor department says the unemployment rate rose to 8.2%, the economy created only 69,000 jobs, that's only because there was an expectation of much more. mark zandi is chief economist and co-founder of moody's economy.com, he's also one of the most prominent economists in the country, so it's nice to have you back with us, mark. >> thank you. jenna: let's just start with the why. why are we not seeing more job growth? >> well, jenna, it's a great question. my sense is that business people are just very nervous and skittish. you know, they've been through a lot in recent years, near-death experiences not too long ago, and if anything just goes off script a bit and, of course, europe is going way off script, they pull back, and they stop hiring. it's not that they're increasing layoffs, layoffs are very low,

it's just they stop hiring, and i think that's what we're seeing right now. jenna: let's look ahead then. if that's the dynamic we saw for the may report which was last month, here we are june 1st, what do you see for the next six months? >> well, that depends on policymakers in europe and here. in europe they've got to nail things down, make sure that greece doesn't exit, or if they do exit, it didn't disorderly. and here at home we've got to address the coming so-called fiscal cliff. as you know, under current policy we have some big tax increases coming, big spending cuts, the economy's going to have problems with that, so we need to make some changes. it's up to policymakers to get it together, do a few right things, and i think we'll be okay. jenna: there's a lot of different ideas, obviously, on what's the right thing to do. the white house has said this morning that they want to stay the course, this is more sign that we need to stay the course. they're calling on congress to do more. critics say it's time to do something completely different here, congress isn't the answer. who's right?

what's your opinion? >> well, i think the policymakers have done a lot of right things. the economy's clearly in a better place than it was a couple, three years ago, and i think we do need to stay the course on things we have already put in place, but they do need to address the coming tax increases and spending cuts and also the debt ceiling. as you know, the treasury debt ceiling is going to come up again early next year, and it's very important that policymakers don't play the same kind of brinkmanship around that debt ceiling that they did last summer because last summer, the last time the economy stalled out, it was fear that we'd have a default on our debt and a downgrade on our debt. we can't go through that again. jenna: just really quickly here, when you say the right things as far as taxes, do you mean extending the bush tax cuts for another year or maybe another two years instead of having them cut off at the end of the year along with a few other things? >> well, at least for most of us. i mean, i think there's general agreement among republicans, democrats that the tax rate should not go up for lower and middle income households, so at

the very least, we should be able to do that. i think if we do do that, we'll be in okay shape. jenna: quick final question, do you see recession in the future as far as the next 12-8 months? >> no. jenna: you don't see that? >> i do not. i think the fundamentals of the economy are much improved, and they will shine through if policymakers can get it together. and, you know, there's a lot of angst about policymakers getting it together, but so far when push comes to shove, we do come together, and we do the right thing, and i fully anticipate they're going to do that again. jenna: it's not always pretty, right? maybe not the best presentation when it comes to that. mark, always nice to see you. we appreciate it very much. >> thank you. jenna: apology goes with this as well from the editorial page at "the wall street journal", and this gives us even broader context with us on the politics now. look was mentioning -- mark was mentioning policymakers have to act. it is a lame duck year though. >> and an election year. not much, i think. it probably means that the central bank, the federal reserve will do another round of

monetary easing -- jenna: and when does that mean for us, the dollar and interest rates, all of that? >> it means they'll try to keep long rates down, but they're already at such record lows, you know, mortgages you can get under 4%. i mean, it's extraordinary in many parts of the country. i don't know how much good that will do, but they'll try. there's also going to be an acceleration of the debate, i think, over the taxes and spending expirations at the end of the year. you're going to see that move forward because the obama administration's going to want to put more pressure on congress. because you can't argue the results now, you want to argue about what people should do. and that's how they're going to try to change the debate, i think. jenna: paul, for democrats or republicans, are there there new ideas out there? are all the ideas exhausted and either side has picked which ideas they've decided they're going to take? is there actual innovation? should the average person expect maybe a brand new idea for job creation in the country? >> well, i think there are differing ideas. the obama administration has basically made the bet over the

last few years that if you increase government spending, it will general mate growth. i think we're seeing that is, essentially, a failed strategy. jenna: well, it shows some growth. >> yes, certainly from the depths of the recession, but the recession was always going to recover. the problem we've had is each time we get a recovery coming, the middle of the year falls off, so there's no durable expansion which is the kind you want, one that lasts. i think you're going to see a philosophical fight over the role of government and whether taxes should go up on some people or whether or not we should have tax reform that lowers rates for everybody that gives more people more confidence. and rather than having this helter-skelter temporary policy, let's put in longer-term reforms that will give more people more confidence over time. jenna: you know, a quick final question for you, paul. we see the unemployment rate go up by a tenth of a percent, it's significant, but it's harder to feel that on an everyday basis. one of the things we look at are gas prices, and they have come down over the past month.

and sometimes that gives the public more of an immediate feeling on the economy and how bad things are out there. what do you think the dynamics are really going to come into play when we move towards the election and a choice on the philosophy of policies? >> there's no question that lower gas prices make people feel a little better because the pocket change is better. they can afford more. jenna: right. >> but the general confidence is going to be struck nonetheless when you're not seeing more job creation. so in that sense there's still going to be, in my view, a general sense of malaise. if you can't create more than 100,000 new jobs in the private sector, and we haven't within the last two months, people say, wait a minute. okay, i'm okay in my job, but what happens if this goes down further? and then businesses say, you know what? we're not going to take the risk, we're going to wait until after the election. so i think there's going to be a little bit more of a seizing up in the next few months, and that's dangerous because there's no margin for error. jenna: very interesting, paul. there's all those questions, is in the new normal, or should we

expect something different? >> we have to expect more. we can't continue for very long with this kind of economy. jenna: i think you'll be discussing this, by the way, on your show. watch the journal editorial report hosted by paul gigot tomorrow at 2 p.m. eastern time right here on the fox news channel. paul, thank you, as always. jon? jon: some new developments to tell you about in the disappearance of the maine toddler who disappeared just before christmas last year. police are saying they no longer believe she is alive, but they say their investigation into what happened to her is far from over. jamie colby is live with more on that. jamie? >> reporter: hey, jon. ayla reynolds vanished december 17th, and though police have still not named either a suspect or a possible motive in this case, they still believe foul play was involved. now they no longer believe the 20-month-old is alive. >> the searches, the dives and the evidence gathered at this point, we think it is highly

unlikely that ayla reynolds will be found alive. nothing points in that direction. >> reporter: well, police say ayla's father refusing to cooperate even though he, his girlfriend and another friend were all home at the time he says that ayla disappeared. police have been searching for the toddler for more than five months. cops renewing their plea in a press conference just held to report any additional leads about ayla's disappearance. and her mother's family, the reynolds, jon, who have been fully cooperating authorities say, they say they're devastated by these latest developments and insist ayla's father justin knows what happened. >> come and face me like a man, justin, and tell me where my granddaughter is! you want to see someone pissed off now? look at me, justin! >> i think the news i just found out, i would never want any participant to find out. i think, like, my worst nightmare has really come true.

and what hurts the most is i don't even know where she's at. >> reporter: authorities want to remind everybody a $30,000 reward expires june 30th. ayla last seen with a cast on her broken left arm wearing polka dot pajamas with the words "daddy's princess" on them. if you have any information, please, call 911. jon? jon: such a sad story. >> reporter: truly. jon: jamie colby, thank you. jenna: back to politics. they're some of the biggest names in their party, but these three democrats including president clinton not always towing the line for the obama campaign from the outside looking in. so why are these surrogates refusing to attack governor romney's career in the private sector? we're going to talk a little bit more about it. plus, they're a morning treat for millions of americans with a sweet tooth, or really any time of day, right? there's never a bad time. one day after we heard about a crackdown on those big, sugary drinks, doughnuts finally have their day. we'll explain.

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jon: you're inside america's election headquarters, and here's an interesting nugget. some more high-profile democrats are breaking ranks with the president over his campaign attacks on governor romney's record at bain capital. the firm that he used to head. former president bill clinton actually complimented the governor on his success in the private sector. listen. >> i don't think that we ought to get in the position where we say this is bad work. this is good work. i think, however, the real issue ought to be what has governor romney advocated in the campaign that he will do as president. what has president obama done, and what does he propose to do? how do these things stack up

against each other, that's the most relevant thing. there's no question in terms of getting up and going to the office and, you know, basically performing the essential functions of the office, a man who's been governor and had a sterling business career crosses the qualification threshold. jon: a sterling business career, he said. this follows other democratic surrogates who seem to have strayed from the obama message as well. cory booker, the mayor of newark, new jersey, raised eyebrows after saying attacks on romney's time at bain were, to him, quote, nauseating. meantime, massachusetts governor du value patrick actually focusing attacks on romney's political record said, quote, bain is a perfectly fine company. so let's talk about it with radio talk show host monica crowley, a fox news contributor, alan colmes is with us as well, the host of the alan colmes show. don't hit each other -- >> hello. very, very close here, you know what i'm saying? [laughter] jon: we don't have the --

>> can we get a partition? jon: let's get a glass frame, maybe the cone of silence. monica, it's one thing -- we're going to talk about bill clinton in a minute, but deval patrick, he and the president are like this. >> so is cory booker. look, it's interesting when a campaign team sends out surrogates because you know youu can only control them to a certain extent. they have their own views that may not necessarily be those of the president, and in this case i think you see a lot of democrats -- those you just mentioned, and there are others -- who might be a little more wary about speaking out and really refuse to accept this wholesale attack on capitalism which is what president obama's essentially running on. >> can i point out that mitt romney surrogates are former candidates who beat the hell out of him for months and months and said he couldn't be president, didn't win, didn't deserve it and was not qualified -- jon: yeah, but -- >> those are romney surrogates. >> [inaudible] >> of course you're not. what about the nonliberal media

that wants to play divide and conquer? let's put space between obama and everybody else -- jon: but these aren't the media, these are obama surrogates. >> except i don't buy the notion that they are somehow saying something other than what obama's saying because the media, i think, is getting it wrong. they're not putting down capitalism or bain capital, they're simply saying because mitt romney ran a company and did well and made a lot of money, wait a second, that doesn't make him necessarily the best candidate for president of the united states. that's what the issue is. that's not the resumé notch you need to be president. >> if that's the question, then what qualified barack obama in 2008 to be president of the united states? by the way, this campaign, this election is going to be a referendum on barack obama. >> it should be. i hope it is. >> mitt romney's leadership at bain or his leadership -- >> but romney's trying to make it about it. >> it's about this man's record which, of course, he cannot run on which is why he's stuck demonizing him. >> did you hear that? monica crowley says she doesn't want him to run -- it's a she, right? [laughter] doesn't want him to run on his

record on bain cam capital or run on -- >> i did not say that. >> he won't talk about governor of massachusetts. why isn't he talking about his record as governor of massachusetts? >> actually, he is. he and his team are. he talked about it even as recently as yesterday, how as governor he brought down the massachusetts unemployment rate from 5.6 to 4.7% which, by the way, today sounds pretty good. >> the context was the national average was actually much lore than that, the national average was 4.4%, he was getting more unemployment than the national average. his record was worse than almost every other state in the nation. jon: i guess we can't talk about it because i'm getting the wrap. >> something we said? is. [laughter] jon: yes, in fact, we did but today's unemployment numbers not so good for the president. we'll see how it shakes out. monica, alan, thank you both. >> thank you, jon.

>> more. more. [laughter] jenna: delicious, right? you might want to know that today the national doughnut day. i already see monica looking happier along with alan because of the doughnuts. see, everyone comes together, julie. the doughnuts bring everybody together. >> reporter: it really does. especially homer simpson, and i don't want understand why the producers didn't supply me with a prop. anyway, it's national doughnut day, and to honor the 75th annual event, the largest box of doughnuts ever created. but it's not all about making the doughnuts today. they plan to donate $25,000 to the salvation army at madison square park today. the national holiday is actually held annually on the first friday of june, and it was established by the salvation army back in 1938 in chicago to honor doughnut lackeys who served treats to soldiers during world war i.

and by the way, here's an odd coincidence, new york city mayor michael bloomberg was among those who signed a problem procn letter for the doughnut event just one day after the mayor declared war on soda. and among those criticizing, house speaker john boehner who addressed the soda flap moments ago. >> mayor bloomberg, but are you kidding me? [laughter] come on. don't we have bigger issues to deal with than the size of some soft drinks that somebody buys? >> reporter: bloomberg stands by his plan, by the way, today for a first in the nation ban on large servings of soda and sugary drinks. my only concern is does this include my large soda that i get with my jumbo-sized popcorn at the movie theater. jenna: then you miss the movie. >> reporter: yeah, exactly. jenna: we'll work on getting that doughnut to you by the way. thank you very much for that.

jon: hmm, doughnuts. jenna: now you're distracted. jon: a luxury place, phil keating is going to tell us about this private island paradise, and it could be yourss oh, look at phil. ♪ your curves. smooth, rich, never bitter, gevalia. support team usa and show our olympic spirit right in our own backyard. so we combined our citi thankyou points to make it happen. tom chipped in 10,000 points. karen kicked in 20,000. and by pooling more thankyou points from folks all over town, we were able to watch team usa... [ cheering ]

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jon: prices are down, mortgage rates are low, so now is your chance to pick up, yes, your own private island. there's one on the market in florida, for instance, east sister rock island. 1.4 acres, a three-bedroom house with its own mote all for the -- moat, all for the bargain price of $12 million, but first you've got to kick out the squatters like phil keating who's there now on a tough assignment in the keys. phil? >> reporter: yeah. the funniest thing that ever happened to the man who owns this house is he found about 12 cuban refugees one morning.

they were dry foot, so they ended up on the mainland, but there's more and more of these private islands for sale right now, about eight in the keys alone, and depending on the price, it's true. you don't necessarily have to be super rich. >> going to east sister rock island is like a little cruise ship that doesn't move, you know, that's what i call it. >> reporter: and it's been a self-contained wind and solar-powered aqua marine circle of paradise a quarter mile from the mainland yet a world away from city life. >> a lot of peace and quietness. if we want it. no crime, no noisy neighbors. the only noise here is the ocean if you want to call that noise. >> reporter: but after 20 years of amazing snorkeling and sunsets, they're selling. asking price, $12 million. in fact, private islands like these are a rebounding real estate niche. private islands inc. lists about 500 of them, various sizes and

amenities and for as little as 200 grand. buyer beware, an island is not always an oasis of lethargy. you've got to have a helicopter or boat just to get there. >> it runs 360 degrees -- >> reporter: and bob warns potential buyers, hurricanes are potential threats. >> there's only one occupational hazard here. we like to drink beer down here. >> reporter: now, from the mainland, the island is quite visible, it's only about a quarter of a mile, and the depth of the water down here in the keys around 4-6 feet, so you could tentatively walk across. this being the first day of hurricane season, yes, this house and all of these islands are hurricane proof. the house has been around for about 50 years, no problem so far. back to you, jon. jon: makes me want to break out the jimmy buffet music. >> reporter: no kidding.

and the margaritas. jenna: we have a lot of big new stories coming up next hour, we'll be right back with more "happening now." welcome to hotels.com.

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jenna: nearing high noon here on the east coast, and we want to show you what's happening on the stock market today. if you take a look at the dow, it's been one of the worst days for the dow jones industrials of the year so far. we're off the lows, i should mention, but we're still down about 200 points. this is after a few very important news items. the biggest headline for us here at home is what's going on with our job market. that's going to be one of our top stories of the day, but a lot of international news playing into the markets and making investors nervous about the next few months ahead and where the world economy is right now. we're going to have continuing coverage of all of this on "happening now." jon: brand new this hour, a courtroom battle, i should say, in the case of a missing oregon boy. 9-year-old kyron horman vanished almost two years ago. now his mother is filing a civil suit against the last person

known to see him before he disappeared. we'll tell you why. plus, out of control wildfires in new mexico, the largest ever in the state's history, burning virtually unchecked. and could anyone survive this? a taxi driver and his passenger stranded in torrential floodwaters. we have the dramatic pictures of the conclusion you have to see. ♪ jenna: well, this is one of the big stories, as we mentioned, the u.s. economy really taking another hit. the jobless rate heading up again. we're glad you with us, everybody, i'm jenna lee. a lot of different items we have to get to. jon: a lot of stuff to get to on this friday, i'm jon scott. it's a dismal month for job seekers, employers only adding 69,000 new jobs in this country in may, that's the lowest number added in a year. and the unemployment rate ticks back up to 8.2%. it's all fanning fears that the

economy is sputtering. chief white house correspondent ed henry live at the white house for us right now. ed? >> reporter: well, jon, obviously, these are awful numbers for the president. he's out on the road today, he's going to be talking jobs in a little while in minnesota, then he heads to his hometown of chicago to raise some campaign cash. obviously, the election very much on his mind, but the economy as well. they're, obviously, tied in. a little earlier one of his spokespersons on air force one was telling reporters that, basically, they want to highlight the fact that there have been 27 months of positive job growth, but they acknowledge inside the white house that it's just not growing fast enough. josh was asked whether they fear a second recession now coming up. he down played that but noted that there's still a lot of headwinds, and that's why they want congress to act on more economic measures, a sentiment echoed by alan krueger, one of the president's top economic advisers. >> we face some headwinds coming from europe, we had a spike in

oil and gasoline prices which, fortunately, has been receding which should help going forward. and also a number of analysts have pointed out that warmerwet over the winter -- warmer weather over the winter probably brought some work forward. >> reporter: republicans simply not buying those explanations, the presidential nominee mitt romney put out a blistering statement this morning that basically said there's been a cascade of bad news, he called these devastating job numbers on top of the fact that consumer confidence took a hit earlier in this week in a report. house speaker john boehner also said this is just a disaster. take a listen. >> another month of dispint oing job gains -- disappointing job gains. it's pretty clear that the american people are hurting, small businesses continue to avert hiring any additional people, and it's clear that the policies that we've seen are not working. >> reporter: and this is why one of the president's top

advisers told me earlier this week the white house is going to be bracing every month now as we get these jobs reports between now and november for that number because it could really set the tone of the campaign. if they're able to turn it around in the months ahead, this summer, for example, the president could make the case that it's slow, but we're turning the corner. another month like this, say next month or the month after, it's going to be very hard for him to make that case, and it's going to help mitt romney out on the trail saying he wants to fix all this. jon: and even some of the previous month's numbers were revised downwards, so even looking in the mirror isn't so good. >> reporter: that's right. april was revised downward. there had been decent job growth, somewhere in the low over 100,000, now it was revised below even that. and if you look back just a few months, december, january, things were picking up a bit. the job numbers were pretty decent for this president. as you say, last two or three months it's taken a turn that is not working out for them right now, and that's why they're under great pressure, jon. jon: ed henry at the white

house. you can see the little gray cloud hanging over the white house. >> reporter: just the weather. [laughter] jon: thanks. jenna: new information on a u.s. cyber attack or u.s. cyber attacks against iran. within months of taking office, president obama told his national security team to speed up sabotage efforts targeting iran's nuclear program using cyber weapons like the stuxnet worm. morgan wright is a cyber terrorism analyst, peter brooks is a former deputy assistant secretary of defense and senior fellow of national security affairs. this is certainly one of the big stories of the day. a big report in "the new york times" that's also been confirmed by our sources here at fox about what we're doing when it comes to cyber warfare. peter, even though this report is fascinating, does the public need to know about this? >> i don't think so. i'm very, very concerned about that. we've had a litany of leaks out of this administration going back to the usama bin laden raid, the pakistani doctor, the yemeni bomber, the asset we were

using there and then this. this is very sensitive stuff. we shouldn't be exposing our intelligence sources and methods. it opens us up to attribution, people will say, well, if america can do it, why can't we do it? also i'm really worried about retaliation. you can't forget that iran is no slouch when it comes to cyber operations. and we have to be very careful that iran doesn't try to do something, attack an american nuclear plant, for instance. jenna: that's why we have morgan here, by the way, because you're the cyber terrorism expert, and we were talking earlier this week about flame, this new, this new worm that's gone into computers in the middle east, and everyone was wondering who was behind it. if the code is out there now, and "the new york times" has reported that it is, for stuxnet how easy is it to copy, and how much is the information that's out there today help someone achieve that? >> stuxnet is easy to copy if you copy the program. what's more difficult is to decode everything that's a lot

of the analysis that's been done shown that the programmers went to great extent to on few candidate and hood the program -- and hide the program itself. while very few nations on earth have the ability to have drones or stealth drones, there's no shortage of people with fabulous computer skills who intend to do harm. so you could take something like this, i could bring 100 people together and work on something like this where i would not have access to major weapons systems, but i've got a lot of bad guys out there with bad intentions who know programming. jenna: you know, morgan, if we create a program like this, do we automatically know how to protect ourselves from it? >> i would like to say, yes. i don't have any, obviously, classified knowledge of that. but you never want to create something like this. it's like some of the old movies like con john and virus. you don't want to create something that you don't have the antidote to, so a lot of stuxnet was programmed to insure that it didn't spread. a programming error made it spread, but it was designed to not attack certain systems.

so we've got to be very careful. this is a double-edged sword, right? if somebody decodes this, this is a powerful weapon that can be used against our own critical infrastructure. jenna: and what was really remarkable about this weapon, peter, it actually produced physical damage within the nuclear plants, and that's the first time we've seen that, where a bug inside a computer could actually do something physically to the plant that was surrounding it. you mentioned the bin laden raid, and i wonder because as part of these reports we understand it that engineers and maintenance workers whether or not they were officially spies or unbeknownst to them were carriers of this bug were part of this plan. how damaging is a report like this to future cyber attacks? >> very good point, jenna. i mean, there's not only the fact that we had to develop this code as morgan pointed out, we had to get it into the system because there was a break, a firewall between the outside and the inside s so this was an inside job. we had to get it into their computer system via a flash

drive or a computer or something else. and when people be, they talked about the human intelligence element of this and the operations, and that's very, very sensitive. and people are going to start to wonder if they should work with u.s. intelligence. the iranians fired people, i'm sure there's going to be investigations. who knows what's going to come down the road, so this is very damaging to our intelligence operations in general. you know, we have to be very cautious about exposing our bag of tricks that makes us an intelligence superpower. jenna: and it brings up the question about when you want to go from being covert to overt. we hope to have you both back. thank you for your expertise, morgan and peter, and thank you very much. >> you bet. >> thanks for having me. jon: a fox news weather alert for you now. the atlantic hurricane season officially begins today. for the moment, it looks pretty quiet, but forecasters are predicting 9-15 tropical storms expected this year, as many as eight of those could become

hurricanes. steve harrigan -- that's your name -- jenna: sounds like hurricane. that's actually a good nickname. j jon i was just thinking, he's seen quite a few hurricanes himself. steve, it's friday, and i am so glad. go ahead, steve. >> reporter: jon, they're calling it a moderate season, this according to meteorologists at noaa. they predict anywhere from 4-8 hurricanes, and they expect possibly 1-3 to develop into category 3, 4 or 5, winds in excess of 111 miles per hour. we've already had two named tropical storms before the season has already begun, but experts say don't draw anything into that as to what the season -- which will probably peak in late august -- has in store. so far, the predictions from noaa have gotten increasingly accurate. last year they said there'd be 6-10, there turned out to be seven. but they don't predict how many

will make landfall in the u.s. last year it was just one, hurricane irene, and even in quiet seasons, there is still real potential for danger. florida this summer is marking the 20th anniversary of hurricane andrew, a hurricane that caused devastation in south florida, $25 billion worth of damage. now, it came at the end of a very quiet hurricane season with just six named storms. jon, back to you. jon: oh, i remember andrew well. i was living down there back then. steve hairy michigan. jenna: steve hurricane. i like it. [laughter] all right, we have some ore big news to get -- other big news to get to. two murder suspects bust out of jail, and we're finding out who helped them escape. remember the hacksaw escape we told you about at the beginning of this week? more on that in just a moment. plus, the political impact of today's job numbers. how the campaigns will talk about some of these gloomy figures on the economy.

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jenna: well, right now some new information on a few crime stories we're following here on "happening now," including this one out of maine. police in maine don't believe missing toddler ayla reynolds is still alive. police are asking anyone with information about little ayla to contact them. police in arkansas, in the meantime, arresting two murder suspects who escaped from a county jail. the pair broke out on monday, apparently using a hacksaw to cut through the bars. listen to this. police now say one suspect got the hacksaw from his mother. there she is. well -- police in west lake, ohio, arresting a woman dubbed the cleaning fairy. this is what she does, apparently. 53-year-old susan warren is charged with breaking into a home last month and cleaning it. not cleaning it out, just cleaning it. jon: what? jenna: while the homeowner was

upstairs asleep. many of you are thinking, please, cleaning fairy, please, come to me. but she was arrested. jon: yeah. strange stuff. hey, jobs and the economy remain top concerns for voters five months before the presidential election. today's down beat numbers adding a sense of gloom to an already bad situation. both president obama and governor romney are putting a spotlight on their very different plans to try to get the economy back on track. byron york is chief political correspondent for the washington examiner and a fox news contributor. you're quite a good writer, byron. if you were writing the speech for the president on how to respond to these jobs numbers, what do you say? >> boy, it's tough. these new numbers, 8.2% unemployment, 14.8% of the people who are unemployed or unemployed and just have stopped looking for work but would like to have a job, they're terrible numbers for the president. he's going to continue doing what he's been doing which is to say look at where we started.

things were absolutely horrible in january, february, march of 2009, and they have been better under my watch, and they will continue to improve with their ups and downs. it's just a tough argument to make. these figures fit completely into mitt romney's campaign plan. jon: well, with the unemployment rate actually going up as a result of people going back into the labor force be trying to find a job, i guess maybe they were encouraged by some of the previous month bees' reports -- months' reports, but those jobs just aren't there. >> no, they're not. and job creation figures are not only bad in may, but they turned out to be worse in april than we thought. i mean, the numbers are just very bad. and romney is determined to make the economy and jobs the central focus of the campaign. he tries not to get distracted by donald trump or the war on women or talk about whether or not he put a dog on top of his car 30 years ago.

he's absolutely convinced that he needs to talk about jobs and the economy every single day. jon: you know, at the same time, i mean, voters might not be happy with the way the economy is looking right now, but they still like president obama personally. that's what the polls show. is that enough to get him reelected? >> well, they do like him, and they do realize the mess that he inherited, there's no doubt that the economy in january of 2009 was just in freefall. so the voters do factor that in, but as far as we know from prior elections, i mean, if unemployment is still very, very high and people do not think that it's getting better, i mean, it could be high if people felt it was on a solid downward trajectory, but if they don't feel it's getting better, i don't think whether they personally like or dislike barack obama is going to play a big role in their vote. jon: talking about people who like barack obama, milwaukee mayor tom barrett would like him to come visit, and, you know,

shore up his campaign for governor. he's trying to unseat scott walker in that recall election. the president a no-show so far. why? >> he is not visiting. and he's in the neighborhood. he's doing six fundraisers in minneapolis and chicago today, so he could just pop by, but he hasn't. the reason is that the reforms that governor scott walker instituted that set off this whole protest and now recall election which was, basically, cutting into some of the collective bargaining powers of public employee unions, making them pay more for public employees, pay more for health care and their pension benefits, those are turning out to be popular. the public approves of those, and the president was really on the wrong side of those. he sided quite openly with the unions last year when this whole thing broke out, and he looks at his numbers in wisconsin, the latest marquette university poll, he has an eight-point lead over mitt romney, so he's doing pretty well there. and i think he sees nothing for him, for his re-election chances

in flying into wisconsin and associating himself again with policies that have now proved to be unpopular. jon: but you do have former president clinton going in there and campaigning, you know, trying to fire up the democrats. does it, does it make, you know, the sitting president look weak if the former is willing to do a job that the current president doesn't seem to want to do? >> well, democrats would certainly like to see the president come in and to this, and he's decided not to. bill clinton's certainly the next best thing. and you have to remember, the obama campaign is trying to say, well, the results of this election if scott walker stays in office has nothing to do with the presidential contest, doesn't mean anything about barack obama or mitt romney. but the fact is this race means a lot for democrats around the country and especially for their supporters in the labor unions who are extremely important to provide money and muscle to democratic campaigns. this is a big deal for democrats, and they really wish they could have seen president obama come in and try to help

their side. jon: well, like you said, he's in the neighborhood. i suppose it's not too late for air force one to make a quick jaunt -- >> i'm sure it would be cleared for landing in wisconsin, yes. jon: i'm sure it would. all right, byron york, good to talk to you. >> thank you, jon. jenna: the biggest wildfire in new mexico ever is seen burning through tens of thousands of acres. the governor is warning folks out there to be prepared. next we're going to talk about the direction that this fire is taking and what's ahead. also, you'll remember this name, kyron horman disappeared almost two years ago from his school in oregon, and now his mother is suing the last person known to see him. will it help police find the little boy? we'll talk about that next. [ male announcer ] if paula ebert had her way,

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jon: right now a massive wildfire raging out of control in new mexico's wilderness. the forest fire becoming the largest in state history fueling concerns that this could be a very dangerous fire season. julie banderas has a look at it live from our new york city newsroom. >> reporter: the massive fire fueling concerns at this hour that this is just a preview of things to come as states across the west contend with a dangerous recipe of wind, low humidity and a long drought cycle. the white water baldy blaze, it's called, has charred more than 190,000 acres so far, that is nearly 900 square miles -- 300 square miles making in the largest wildfire burning in the country. the terrain is being described as impossible for firefighters to address. they are, however, doing burnout operations along the fire's northern edge in an effort to slow down the blaze. more than 1200 firefighters right now fighting this thick near the arizona border.

experts say it's highly likely that western states are going to need outside resources to fight them, so agencies in new mexico, colorado and arizona are bracing for the worst. jon? jon: that is an awful situation there. julie, thank you. >> reporter: sure. jenna: well, we have some new information today in the case of an oregon boy missing for nearly two years. his name, kyron horman. he disappeared without a trace from his school, and now the boy's mother is reportedly planning to sue the last person known to see him. that's kyron's stepmother. can this help solve the case? fred tecce is a former federal president and jennifer bonnjean, nice to have you face to face. fred, let's talk about a civil lawsuit. what is the dynamic of civic versus criminal lawsuits? >> first of all, in a civil lawsuit all you're talking about is money. that's all you get in a civil lawsuit for the most part. the second part is to win in a

civil lawsuit, you have to prove your case by what's called a preponderance of the evidence, and i tell juries you put the scales there, and if the scale tips ever so slightly in the favor of one side, they win. jenna: and that's it? >> that's it. jenna: and then what, jener in? the step fore was the final one -- stepmother was the final one to see the little boy. does she go to jail? does she have to pay money? what happens if she's found guilty in the civil lawsuit? >> the remedy would be money damages, but i highly suspect the real purpose is to breathe new life into a stagnated investigation. what they are trying to do is to get terri horman to speak. they believe she is hiding information, and by bringing this civil lawsuit, perhaps depositions or at a trial they would get, force her -- but she still actually has a fifth amendment privilege, and i sincerely doubt she would actually cooperate, she would exercise her fifth amendment -- jenna: and by the way, on the

screen is kyron's father. he's now estranged from his ex-wife who is the stepmother of kyron who's back on the screen. is that an effective strategy, taking someone to court in the hopes that maybe there's even a murmur that turns up something for a criminal case? >> no, and i'll tell you why. i think it's a bad idea all around. the woman's going to assert her fifth, you're not going to get a single thing there her. and you know what? in civil litigation, both sides get to do discovery, so if you're the accept -- the stepmom, you try to go on a fishing expedition to help your defense further down the line. for what? to get a money judgment against a woman who's got nothing? i don't see it. jenna: it's interesting, because we've been covering the etan patz case, and his parents sued a known child molester who was in prison and won the case against that person, and now there's a different person that's in custody for, you know, the criminal activity.

>> right. jenna: so it brings up a lot of questions, jennifer, about, again, the strategy behind this, but also the timing of it. etan patz's family waited much longer than two years. this family's doing it within a two-year time frame. what's behind the timing? >> i believe that under the oregon law there is a statute of limitations that requires them to bring it within two years. so they're probably -- that's probably motivating the timing of it. but also it looks as if the family, the parents are frustrated. they want to keep the media focused on this case, keep the pressure on the police, and they want some control over it. so i think that's what's motivating their interests in bringing the lawsuit, not so much money. jenna: well, if that's the goal, it looks like they're achieving it because we're talking about it. you just wonder if there's ever going to be that break. >> you hope so. it breaks my heart to see these cases, i can't stand it. >> but if they don't even have probable cause to arrest her, chances are they -- what's the evidence to establish in a civil

lawsuit that she's possible responsible? jenna: we'll look forward to see what that evidence is. jen and fred, nice to have you. >> thank you for having me. jenna: fred also brought his son who's taking over for me on set, so i may not be here -- >> i've got news for you, he's a heck of a lot better looking than i am. jenna: a.j., just relax. keep it easy there in that chair. [laughter] brad fred and jennifer, thank you very much. jon: he just doesn't have his law degree yet. usama bin laden was the top name on president obama's kill list, a list that keeps getting bigger. we'll look at how the media is covering the release of this story. plus, some amazing video as a taxi ride nearly ends in disaster. [ male announcer ] what's in your energy drink? ♪ wer surge, let it blow your mind. [ male announcer ] for fruits, veggies

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jenna: today's jobs number is not necessarily a good sign for the economy. it is one month but still some significant questions about what's ahead for the job market. a lot of people out there are so discouraged they have no hope of really finding work, that they're simply dropping out of the job market and that is a different dynamic maybe not portrayed in these numbers. rich edson is live with us from washington with the fox business network with more. hi, rich. >> reporter: good afternoon, jenna. economists expected the united states to have added 150,000 jobs last month. we got less than half that. the government says employers hired 69,000 last

month, created fewer jobs the month before than first thought and the unemployment rate increased to 8.2%. that is largely considered an overstatement of the economy's health. the traditional unemployment rate fails to account for those who have stopped looking for a job, many because, they think they can't find one. include those folks and others working part time when they want full-time work, and unemployment is near 15%. on top of that, the percentage of americans with a job or looking for a job has been steadily falling for the last decade and getting much worse since the recession. in 2002, nearly 67% were working or looking for work. this year, that's fallen and stayed below 64%, though it was up slightly last month. the former commissioner of the bureau of labor statistics says that decline may seem incremental but it's not. >> what has been unprecedented during this recession we've had a real drop in the labor force, something like over 2% of the population has dropped out of the labor force which

is very unusual. that is unprecedented. and that amounts to something like six million people who are out of the labor force. >> reporter: economists have offered a host of factors why americans stopped searching for a job. some claim government benefits provide a disincentive to look or baby boomers are simply retiring. still the primary cause repeatedly cited, lack of jobs. jenna? jenna: tough out there, that's for sure, rich. thank you. jon: president obama's personal oversight of a terrorist kill list, it made headlines this week. so how did the news media handle did the release of this story? let's talk about it with judith miller, pulitzer prize-winning investigative reporter and kirsten powers, columnist for "the daily beast", both of them fox news contributors. this rather extraordinary series in the "new york times" talks about the fact that the president himself puts his stamp of approval on the names of the people who get targeted for drone strikes, judy.

first of all the existence of the list, maybe not a surprise but the paper obviously had some access to top administration officials to write this story, right? >> and not just that paper, not just "the new york times", jon. it was also "newsweek" magazine, which had actually, came out a day before "the new york times" with it, just a very similar story about the existence of the list and the president's assertive role in screening the names and deciding who gets to live and who gets to die. this was definitely spoon-fed to these reporters that the white house wanted this story out. it wanted to explain this program and it did so in the best possible light. jon: kirsten, you agree? >> yeah, i don't think they wanted to explain the program as much as they wanted to cast the president in this very decisive, aggressive light which is what they did. had this exact same information come out under the bush administration right now people would be

trying to, would be actually having calls to try george bush for war crimes. i mean there is no question, reading this, the way it was cast in such a positive light when president obama as a candidate probably would have condemned this type of behavior. jon: the irony here is so thick. i mean this is the president who condemned george bush and his cia for putting khalid sheikh mohammed through waterboarding. as far as i know khalid sheikh mohammed is still alive. >> he is still alive and three people were subjected to water boarding that the bush administration acknowledged versus dozen, dozens of people, some of whom are americans who have been killed by president obama and left is totally silent. jon: it is okay to kill terrorism suspects, but you can't waurd both them? >> not only that he expanded a the definition of a what a militant is who include a wide variety of people

likely not guilty of anything. not just that he is targeting people who may be terrorists or that they believe are terrorists, also civilians are being killed. jon: why is the left not out rioting in the streets over this? >> they have been so silent on the foreign policy issues. a handful of people, glen greenwalled at salon lone voice in the forest. a lot of liberals coming out not condemning but approving this which is beyond outrageous when you consider the types of attacks made against george bush which i think were accurate but now president obama is using same war powers he was you know criticizing him. jon: this list is apparently discussed every tuesday in the white house. >> right. jon: there are two dozen of the nation's top counterterrorism people there and at least two of them, apparently verified all of the facts in these articles to the reporters. so you've got, i don't know, i don't know who these people are, but a couple of the top terror, counterterrorism people in

the country are talking to the press about this. >> right, tom donalin the president's national security advisor went on the record. quoted about the program, why is was essential and why it was important and how it was protecting us. look the president has a very tough record on counterterrorism. it is a record he can be proud of. there hasn't been a strike since 9/11. jon: and the white house wants to amplify that. >> absolutely. why not? it is election season. let's not pretend there wasn't certain benefit to the white house getting this information out now. jon: let's talk about another campaign related issue, campaign surrogates. they play a big role in this presidential race. seem some of them lately have let their thoughts get in the way of the message. we're talking about well, bill clinton, for instance. went on national television and said, hey, i don't have a problem with bain capital. mitt romney has a sterling record. >> that's right. jon: what is going on there? >> file that under unhelpful i would think.

jon: so -- >> he dimt get the memo. jon: you've got cory booker, the mayor of newark who was the first one who really left the door open? >> you have a couple other people. jon: duval patrick. >> the thing they have all in common they have a close relationship with wall street and with the people who are in private equity. i think they're probably covering their own flank. the president, president clinton i'm sure receives a lot of donations for his foundation from these types of people so it doesn't surprise me would come to their defense but i think that it does definitely undermined the argument that the palm administration is making. jon: so why aren't there big screaming headlines, mr. president obama, you were wrong? i don't know. >> i think there is a kind of division within the democratic party and even within the president's camp whether or not these attacks on bain capital and on wall street are really very helpful. whether or not they're going

to dry up sources of funding. i mean there were many, many people who were very uncomfortable with this mode of attack. they felt that it was going to undermined the re-election prospects and i don't think that issue has really been settled as we've seen from the kind of weak performance of the surrogates. they will not stick to the message. jon: ironic on the very day the president was attacking bain capital he was having a big fund-raisers with a bunch of venture capitalists in new york city. >> very ironic. he already started to, previously was that the democrats were getting more money from wall street people and now because of the, what wall street feels are the attacks against wall street, by the administration is and by democrats they're already starting to pull their money back. >> all right. kirsten powers, judy miller. thank you both. be sure to catch "news watch" tomorrow, 2:30 eastern time. we cover the could haverage of the big stories of the week. right here on fox news channel. thank you both. jenna: we have amazing video

for you ahead. holding on for dear life. torrential floodwaters trapping a taxi driver and his passenger. the incredible conclusion and all the pictures next. when you have diabetes...

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they have carb steady, with carbs that digest slowly to help minimize blood sugar spikes. [ male announcer ] glucerna hunger smart. a smart way to help manage hunger and diabetes. jon: check this out. looks like a scene from a disaster movie. floodwaters rising over a dam, stranding a taxi driver and his passenger who were trying to drive across it. it happened in southern china. both of them got out, clinging to a pier on the dam as the rushing water surround them. the female passenger was ultimately washed downstream and rescued by firefighters. the driver though remain trapped. finally rescue crews used a crane to give him a rope and a life vest. he was pull out about an hour later. amazing video. jenna: wow! growing concerns over potential cuts in defense spending. on the pentagon chopping block, $1.2 trillion over the next decade.

republican senator lindsey graham now warning the cuts could leave our military vulnerable to new threats from iran and unprepared for the growing military strength of china. peter doocy live in our d.c. bureau with more. peelter? >> reporter: jenna, on tuesday and wednesday of this week we senator graham as he flew all across south carolina and meeting with military leaders and and constituents in towns near military bases. he sounded alarms about sequestration which are the $600 billion automatic across-the-board cuts triggered by the debt reducing super-committee failure to make a deal in november. these cuts are scheduled for six months from today and senator graham said they would be devastating because the cuts make it impossible to plan or prepare for the worst and like you said, because iran is provocative and china is rising so gram says now is not the time to turn the military into a hollow force. >> it means units without enough people to do the job. it means people without the

equipment they need in the 21st century to protect america. remember those film images in world war ii where all the draftees came in when world war ii started? training with broomsticks and had cardboard tanks. it won't be that dramatic but it will be pretty close. >> reporter: the defense secretary leon panetta is largely on the same page as senator graham. >> the last damn thing i wanted to do was hollow out the force. we've done this in the past. i don't want to repeat that lesson. simply cutting across the board and hurting everything. >> reporter: cuts to bases and personnel will have a big hipple effect here in the states. bases in rural areas in south carolina are big money makers for small towns. >> they wouldn't be able to find jobs to do the kind of work they're doing now. they would have to look elsewhere. so you would lose a very valuable citizens. >> reporter: senator graham wants to meet with president obama and a group of

bipartisan senators at the white house to find some substitute cuts before the election but the white house said yesterday they are willing to make a deal but only if a balanced approach is included and they complain that republicans so far have resisted since republicans focus so far only has been on cuts. jenna? >> meantime the deadline looms. time keeps passing so we get closer to that point. steve, thank you so much. sorry, steve. call you your father's name. how does this happen to you? >> reporter: it happens. jenna: it happens every once in a while? >> reporter: yeah. jenna: he is saying of course. peter thanks. >> reporter: yep. jon: some emotional new testimony as attorneys wrap up a bizarre case, dubbed the spray tan murder trial. the latest developments ahead. plus, one state gets a major money boost from an industry that you might not suspect. how suddens are helping the economy stay afloat. ] [ marge ] psst.

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this one is for all you twice out there who take heat to your wives for sitting around drinking too much beer. here is an excuse t saving the economy. a new study reveals the craft brewing industry in colorado is a money-making, job-creating machine. alicia acuna, live at the breckenridge brewery in denver. alicia? >> reporter: hi, jon. researching this story we found out they toss back quite a few cold ones in this state and that means jobs. many places have identifying fare. maine as lobster. louisiana, crawfish. georgia has got peaches. try getting a bad cup of coffee in seattle. then there is colorado, a

signature provision requires consumers show i.d.. colorado brews more beer than any other state. the niche growing at lightning speed, craft beer. when denver beer company opened last year, they were swamp day one. >> we had, my father-in-law washing glassware. he was here to have a few beers. my mother dragging garbage out. patrick, the wife, was busing tables. >> reporter: a craft brewer produces less than six million barrels a year and independently owned. one sign that is good, banks lending money. >> it has, i have to say, gotten a little bit easier because there are more bee leaves in the craft beer business. >> reporter: a recent study reveals the craft brewing industry here is providing a $446 million boost to the state's economy. colorado has 6600 brewer brewery-related jobs and 139 licensed craft breweries. >> that is attracting business people's attention right now. >> reporter: denver beer had

to add fermenting space early on. >> i just think all because of the denver consumer really taken hold of craft beer. >> reporter: coloradans consume the highest percentage of draft beer in the u.s. it also tops list like most active, least obese. how can one place be the fittest and the thirstiest? something here just doesn't add up and no one seems to care. colorado brews an estimated one million barrels of craft beer a year. jon? jon: alicia acuna, in denver, with one of my favorite stories of the day. alicia, thank you. jenna: he took that whole thing in. it is friday. jon: it is a bite state, colorado. i love colorado. jenna: well, this is some remarkable news coming up. a chilling new detail in the hunt for a father wanted for murdering his two daughters in a suspected honor killing. coming up, where a dangerous man might be hiding in plain

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>> the trial of the florida real estate executive accused of murdering his wife resumes on monday after what has been an emotional trial in general. julie banderas has more from our new york city newsroom. julie? >> reporter: tearful day in court for adam kaufman as the prosecution called two rebuttal witnesses as his brother seth took the witness stand. he described what he saw when he and his fiance when he rushed over the day eleanor a kaufman decide. i saw adam completely hysterical. she was lying on the bedroom floor and emts were working on here. another key witness to take the stand, the defense called former chief medical examiner of new york city, michael baden who told the jury, lena's death was caused by art condition, not a murder. rebuttal witness was a woman adam started