>> and thank you for joining us everybody. >> american nows headquarters starts right now. meanwhile we start with a fox news alert, a lousy jobs reports raising concerns about the strength of american xhechlt welcome hq. >> employers add a mere 113,000 jobs in the month of january. that is far, far less than the 185,000 most economist predicted. >> melissa francis is host of fox money. second month in a row, what is going on here? >> that's what is troubling about it. it is the second month if a row. we averaged 200,000 per month and we didn't think that that was that good. you need 350,000 to get back all

of the jobs we lost in this recession. now we have slipped below the 200,000 average. last month it was 74,000 and this it month 10014. they were expecting an upward revision and they didn't get either of those things. >> they predicted 185,000 for this month? >> yes. >> in december lousy job numbers were blamed on the lousy weather. can the same be sad for this january? >> port barnes asked the chief economist about that. he didn't think that weather was a huge factor in this. it is hard to say anything but a slowing economy. it is disconcerting. we grew at 3.2 percent and not great and something sort of a pick up. economist are thinking that we are growing less than two percent in the first quarter.

it is it a step in the wrong direction. does that scale back the stimulus? >> that is an interesting question. it is taking some of the money away. they are two troubling indications in a row, i personally think it is going to depend on the gdp number. it is giving people pause and one of the reasons why the market is up and not down. they are thinking that janet yellen will think twice about the taper, >> the labor force kicked up a notch and that is good? >> it is still at record low. labor force participation is 63 percent. it went slightly higher and some are saying that has to do with the fact that unemployment benefits expired and people who are no longer getting the check and jumped in with both feet.

the problem is they are looking for a job and doesn't mean they are finding one. we need a strong economy for these folks who are looking for a job. >> are there bright spots to be found? >> the construction was a positive. weakness in retail and also in health care which is odd. obviously obama care is putting more jobs in the health care industry you would think. the retail being weak is unfortunate. as we can see this unemployment rate not improving and so now people getting a job this month, it means even less money to spend on retail. >> we hear that money is moving? >> we are moving to 2 o'clock p.m. they can come over to fox business network and catch us in the heart of the market hours. starting on monday. >> that is fantastic and you have a cute promo.

>> we do and can we so. it they had a fantastic truck. >> we'll play it later. >> you are going to be jealous when you see the truck that they built for me. i will tweet it out. >> i bet i am. i need a truck. thank you. >> fox news alert. we could see one of the biggest obama care delays and this one lasting three years. fox news confirmed that the obama administration is considering the request of coping health care plans that were cancelled through 2016. michael joins us from the weekly standard. we are talking about six opinion 2 million cancelled policies and of course, the president

famously called them substandard and junk. if they are junk, why would he allow them to continue for three years unless they are better than the obama administration. >> if the administration is fu're going through the display, it is a stunning lack of confident in their own program. the affordable care act was supposed to help people find affordable insurance plans. we need to delay it so we can help them find opportunities to buy health insurance and that it undermines the purpose of the law. >> what about the poll tigs of this thing? let's extend until past midterm lecs in november. and we don't hurt democrats with angry americans. it would be stunning to extend beyond the presidential elections in 2016?

>> the administration is getting worried that the democrats are losing control of the senate and last two years of obama administration there would be pressure to make changes for obama care and repeal it although obama will not probably sign that. they are getting nervous. >> what about the lawlessness of. it this is the 26th exemption or waiver or delay that would have been done by the president and administration. is it clear lawlessness. >> it is in the 26. that is amazing. i don't know. i think we will probably find an answer to that in 2014. it didn't solve the question of

whether or not it is the will of the american people. 2014 will be a good chance for americans, there is a lot of senators up for reelection and democrat senators that voted for obama care and the republicans will push that issue in the election. we'll so polls in colorado and new hampshire that show that democrats could lose. >> michael, three months ago, harry reid called republicans anarchist because they wanted to delay obama care for a year. and now the president considering a throw year delay. that would be saying to his successor, i created a mess and you got to clean it up? >> i think the white house is in more trouble than they predicted. and the republicans should be saying you finally come around to the vow we talk it about for

months and years even. i think the president is thinking of the legacy of not only his president so but the health care law and by pushing this, i think he's indicating it is in a lot more trouble they thought and they don't know what to do. and they are moving around in a way for here and three years and they are pushed back on their heels a bit. >> the other thing is, 3 million have enrolled in the private obama care plans and you have to offset that by the 6.2 million who had plans under obama care. so essentially if you wipe it out with a three year delay, the white house gets to brag that there is no net deficit here, right? >> think about the number and throw million who are signing on plans. they are people who were kicked off old plans and putting on new

plans that are more expensive. it is not as if it they are getting a lot more. >> only ten percent of those enrolled in obama care are previously uninsured and you will have 31 million people ten years from now. who are still unemployed and no change after 2 trillion in taxpayer money is spent. michael warren, i have to leave it there, thank you so much. >> thanks, gregg. the winter olympics are underway in sochi, russia. security there is described as extraordinary and allegations that russian is spying on olympics tourist in their own hotel rooms. johnathon hunt is live from the newsroom. >> the serious stuff first. thousands of athletes, and visitors and dignataries are

streaming in to russia through the moscow airport to sochi for the opening ceremonies that is under way right now. security is very, very high indeed and the tsa announcing last night they are banning all liquids and lotions on any flight from the u.s. to russia. if that lotion is carried in a carry on bag. that is a warning that terrorist might try to put explosives in tooth paeft tubes and bring down a plane using that kind of a device. but none theless. the olympics is no different than any that preceded it. >> you can't mention how many threats on each of the games before we had the threats on athens and maybe you remember

the situation in salt lake city that there were many, so you cannot think about the games in that way. >> there are aspects though. personal privacy one of them and there are concerned about security cameras in tourist and journalist hotel rooms and those concerns prompted by a comment by the russian deputy prime minister reported to have said yesterday, we have surveillance video from the hotel, that shoes people turn on the shower and direct the nozzle to the wall and leaving the rom for the whole day and leaving us to know how they were watching everybody in the shower. russian officials saying that that is not the case at all. that was simply an instance of

being lost in translation. you choose whether you trust the russians. >> i feel nervous. thank you so much fox nows alert. a missing six day old baby found alive. police saying baby cadden was found in iowa swaddled inside of a tote bag outside of a gas station in a are you tone search when a officer managed to hear the bab crying. the police are focusing cadden with his parents. and kristin smith is considered a person of interest and arrested on unrelited charges in iowa. >> nice to report good news. >> what a cutie. >> new efforts to protect the american power grid and what congress is considering to do to

shield it. >> and al-qaeda teaching young children, that's right children, the tools of the trade. a disturbing report on the next wave of possible attackers. i have the flu, i took medicine but i still have symptoms. [ sneeze ] [ male announcer ] truth is not all flu products treat all your symptoms. what? [ male announcer ] alkseltzer plus severe cold and flu speeds relief to these eight symptoms. [ breath of relief ] thanks. [ male announcer ] you're welcome. ready? go.

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>> days after an ice storm do you understand trees and power lines, hundreds of thousands of neme the dark with no heat what so ever. officials compare the damage in pennsylvania and maryland to a hurricane. saying that they have no electricity along with 50,000 in maryland. and crews from canada, called in to try to help restore the power. >> there is a new push to protect the american electrical grid after concerns that it is vulnerable to terrorist acts. there was a report of a sniper

attack in a power station in northern california. ca kt, the reports are chilling. last april and only now coming to light. authorities wanted to keep it under wraps not wanting copycats. there were gunmen opening fire on the electrical substation in california and clipped the fiber optic lines to the phone and 911? >> yes. >> was this a dry run for terrorism in >> yes, you have to assume the worse. we are finding out about it a year later. it is chilling. but that is a terrorist attack we know how to event. beef up security in electrical facilities and electric grid and power grid and substations. i am more worried about a cyber

attack. you don't have to have somebody to show up in the power station. you can do it from a computer from halfway around the world. we know that other country's intelligence services tapped in the entire american infrastructure and power stations and electrical grids and everything that we need to have modern life. we are vulnerable country and everything is on the internet. and we are the most equipped to defend ourselves and we don't do it. >> back to the power grid. we know how to fix that? >> we are not fixing that? >> why? >> these companies are trying to trim costs. the federal government wants us to have a new expenditure to provide security. there is no uniform standard of how they should be xrekted. >> senator feinstein called for

security standards for substations. is that the worry? >> that is one of the answers. this is not one silver bullet protects the entire american electrical grid and water and supply and everything else. it is a series of things. one how to prevent a physical attack and defend. and how dow know when a physical attack is coming. they clip the phone lines and internet. who do they have call? >> by the way, the fbi has no suspect and don't believe it is terrorism. >> expect for the electrical company said it was terrorism and well scouted. it was not a bunch of teenage guys. it was a commando raid and finally getting attention. >> back to the cyber attack that concerns you more, what is the answer. >> back to building various ways to harden facilities.

and 2 billion in what we waste to aid in pakistan, we could use to harden our cyber and electrical infrastructure. joel brenar who is a former director of intelience for nsa wrote a book called glass houses describing the cyber attacks. >> thank you, kt. >> what is coming up? >> the new fierce of al-qaeda and babies and infant service showing them in head gear holding guns. the disturbing new report of the future of terror. >> and new testimony on the irs targeting scandal. a law maker telling law makers it is far from over and the justice department is a sham. >> and this sunday marks 50 years to the day for lads from

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it was not 64 years but 50 years ago that the beatles storm the united states. look at that. listen to the reaction. it is intense. it is 50 years sense the young lads came to sxheshg changing

music and pop culture forever. 70 million viewers tuned in and the rest is history. >> i remember it like yesterday. my sister and i watched it dancing in the living room. >> really. >> what is your favorite beatle song. >> tell us why it is your favorite beatle song. first send us a tweet@alisyn camerota. >> and to me@greggjarret. >> pictures showing babies dressed in al-qaeda head gear holding guns and posted on line for the world to so and we are learning details of a disturbing new report on the future of the fighters. >> they are the called the children of al-qaeda and

a junior twist to the dangerous islamic threat that we followed in syria for the past months. twitter lines like world's youngest terrorist posted by parents and said to be militants. this is perhaps more alarming showing more grown up kids in training camps. and giving instruction on a variety of weapons. they are called the cubs of al-qaeda. and these kids are getting prepared. and a lot of it. and they are barely old enough to hold a gun and patrolling battle scarred cities. and according to the report released by the un young people are recruited for roles in the fight with the opposition and dying for the cause and there is evidence of tone --

teenage activity. they are victimized by the assad regime as well. and more than 10,000 children are killed and maimed and torteured and used as human shields. the bottom line syria is not a nice place for kids or grown ups and could be dangerous and spreading from there in years to come, back to you. >> greg, thank you for the update. >> chance are you heard about the exchange. bill o'rielly grilled the president. >> you are saying no corruption. >> no, there was boneheaded decision. >> no mass corruption. >> not mass corruption. not a smidgeon of corruption. >> not one but two hearings on that topic that suggest something larger than a smidgeon when it comes to corruption in

the irs. we'll debate that. >> and how a difference of words for what you play on medicare plans and the difference between paying 2300 or 3500. >> and afternoonient foot print. what they say about the ancestors and how they live many moons ago. i love to eat. i love hanging out with my friends.

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time now for a quick check of the head lines, a six day old baby reported missing in wisconsin found alive and safe a day after he vanished. police found cadden outside in a tote bag in a gas station. >> the u.s. postal service losing 350 million in the mounting losses could lead to cash flow problems for the rest of the year. that report as law makers are working to fish the agency's troubled finances. >> and at least foot prints 800,000 years old discovered by scientist on the eastern english

coast. it is the earliest evidence of life in northern europe. >> first, the irs scandal is real. it is not pretend. it is real. number two, the irs scandal is not just a boneheaded bunch of bureaucrats in a remote office contrary to what the president of the united states told the american people on sunday. and number three, the irs scandal is not over. it is continuing to this day and the department of justice investigation is a sham. it is a nonexistent investigation. >> there you have it ms, mitchell not holding back. the testimony from the attorney from the tea party groups and raising new concerns that we are not seeing the scandal and not enough done to investigate. it we will investigate it from

town hall.compolitical editor and talk she hosts and julie, fox news contributors and welcome to both of you. >> can we talk about abbey road. >> is that your favorite. >> i will allow you to tweet us on. that >> i already did. >> she call today a sham. and said it is it a nonexistent investigation. is it a nonexistent investigation and if it is it a real investigation why did president obama act like it was all over as well. >> i know what she is saying and what darril issa and others leading their own investigation said something. the president said there was no corruption. that implies criminal activity. i have yet to see the evidence so far. it may emerge. and i haven't seen it so far. i don't think anybody on the committee can prove criminal activity. >> no corruption or anything

illegal. but 80 percent of the people who were slow rolled for extra scrutiny were conservative and 12 percent were liberals. >> first of all he answered the question of bill o'rielly about corruption. he was responsing to that. and he said in terms of what the tea party was targeted. overwhelmingly conservative is targeted. i am a proponent and this applies to both sides of the aisle. whether it is obama or karl rove. these 501 c4 organizations are posing on both sides of the aisle as political organizations and i think the irs should crack down on both sides more carefully. otherwise the tax code is abused for a political agenda which is wrong on both sides of the aisle.

>> on sunday the president dismissed. and said it is boneheaded decision by agents in cincinnati. and suddenly there is an e-mail from the house ways and means committee. it is not a couple of agents in cincinnati but lois lerner and five deputy councils and deliberately designed targeting. and that undermine and belie the president? >> of course it does. he also said in previous interviews and discussions that there was no political motivation behind this either. that doesn't pass the lap test. look at the time line here. over the course of two highly contested election cycles. you have the irs populated by left bureaucrats cracking down on the president's political opposition through a series of

secretive targeting practices. and when they discovered it was going to be divulged to the public. they decided to leak it to the public and planted a question in a q and a and lying and admitting it was planted. >> their credibility is suspect. >> the white house changed their story half a dozen times when and how they targeted. and lois lerner, refused to testify before congress and, so the idea of no corruption and political motivation is lud krus. >> barbara bosserman contributed more than 6,000 to president obama's campaign. is that appropriate? >> listen, darril issa contributed how much to the republican campaigns and he is heading up a investigation. you have the deputy inspector

general saying he saw no corruption. you may say that is obama's treasury department and of course it is. i challenge guy or mitchell to point to the specific corruption. because you want to believe it doesn't make it so. there is no evidence. >> how is it possible that the doj and fbi is ending the investigation without interviewing a single individual of the 41 target itteted groups represented by jay sekelow. how can you end without talking to the alleged victims? >> i have no clue. you have to ask them. it doesn't sound thorough to me. in response to jowly. i am not saying there is proven crim activity, but there is new regulations that the the irs rolled them out governing 501 c4 and restrictive. it restricts the ability to

engage in political speech. >> good. >> the white house said it was done to clarify confusing rules that existed for decades without a problem and now e-mails are proving that the regulations and rules were starting to be written in 2011 which was not done in response to the scandal. there are things that don't smell right and why investigations are important. >> we'll see what happens. guy, julie, thanks. >> thank you. >> hospitals holding more patients for observation rather than admitting them. it could be costing medicare big time. >> ruth felton, she is a real fire cracker. even in her 90s and when she was 95, she fell late one night and taken to the emergency room

where doctors found she broke her pelvis in three places, listen. >> they said she would have to go to rehab and learn to walk again and learn to function again. >> that would mean a skilled nursing facility, which is expensive. her family said if she stayed in the hospital three days medicare would pay. and only if she was an inpatient and under observation. they didn't learn their mother was under observation. medicare paid nothing and leaving the family with a $17,000 bill. they are not alone. >> the inspectors calculated 600,000 cases last year alone. >> hospitals argue they are caught in the middle and as the government imposes fines under

obama care if patients are admitted and later returned. >> hospitals are penalized for excessive readmission and that is for a patient that is admitted and one of the reasons why physicians are more cautious admitting patients to the hospital. >> the government hires contractors and bounty hunters to challenge medicare claims three years and gives them 9 to 12 and half percent of the claims denied and creating a financial incentive for second guessing. >> they are held up in the appeals process for two and half years it is 1.5 billion that is tied up right now and hospitals are appealing the denials. >> and the hospitals win cent percent of the appeals and didn't help families stuck with big bills. they have 136 co-- sponsors for a bill to credit the three day

stay. as qualified covering for skilled medical care eliminating that loop hole. >> it is a critical case for the exflorida police officer charge. he is awaiting the decision of whether or not he will be released on bond. >> what he said about the confrontation with the victim and his wife's account is so much different. >> if i had to do it over again, it would never have happen. [ telephone rings ] [ shirley ] edward jones. [ male annncer ] with nearly 7 million investors... oh hey, neill, how are you? [ male announcer ...you'd expect us to have a highly skilled call center. kevin, neill holley's on line one. ok, great. [ male announcer ] and we do. it's how edward jones makes sense of investing. i'veot a big date, but my sinuses are acting up. it's te for advil cold and sinus. [ male announcer ] truth is twon't relieve all your symptoms. new alka seltzer plus-d relieves more symptoms than any other behind the counter liquid gel.

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run. and a hero injured in iraq will join us to share his story and a new home as well. all in the top of the hour. >> we'll see you then. >> thank you. that was emotional testimony of the wife of the man accused of murder over the argument of texting. >> curtis reeves will be finding out today if he will be allowed to post bail. he was in a movie theater when police say he got in a fight with chad olsen in a preview.

he was heard to say he was texting his young daughter. prosecutor said reeves is a red hot that overreacted. and the defense said he felt threatened by a younger bigger man. and good to see you both. >> hi, greg. >> we heard what the wife is saying now. but in the movie theater she said. there was no cause to shoot anyone to which the defendant, her husband said you shut your (bleep) mouth and don't say a word. assuming it is admissible in trial. >> this guy has anger issues. curtis reeves had the equivalent of road raged in of a movie theater. and it was popcorn. and this man should not be allowed out on bail because he

is a danger to society. and what are we going to do when he is at the grocery store and a lady gets close to him with his cart. he is a flight risk. at 71, if he is convicted of anything he is looking at a life sentence. >> do you see any reason that the judge granted him for bail today? >> it is not a death penalty case. in my view it is it a voluntary manslaughter case. he stood up and not the texting that caused the argument. it was tossing popcorn and the cop may have perceived that as a distraction for a more violent assault and withdrew the gun and fired. it is a tragedy. but you don't have time to think when your life is in dafrjt i think he will be allowed bail in the circumstances. >> you do nine years and and

actually serve six of. that the police officer observed what the accused said after the shooting. >> he said i can't. i can't, i can't believe what i have done. >> that is admissible and how incredible is that? >> it is conscious guilt. >> how can they be in fear of their life over popcorn. this is an excop and should know how to handle the situation better. >> that's why it is not a self defense acquittal. but it was heat of a passion argument and a gentlemen who is a former cop thinking his life was in danger and the other gentlemen was bigger than him. it was a reasonable fear. my guess is voluntary manslaughter at best.

>> can it be submitted for bail and another couple say they encountered them and he was mad about their texting in the weeks prior. >> yes, part of the bail hearing is not texting. is that admissible here? >> part of bail is not just a flight risk but hair trigger. we don't know how many guns he owns, obviously he carries one, not that he would be allowed to if out on bail. would the public be in danger? of course they would. >> you know what else the jury might hear, the dying declaration, admissible of the victim. he said i can't believe he shot me, the last thing he said before he died. that's in cripple datikricrippl incriminating, too. >> thieves caught red-handed with the goods they stole. >> i was happy.

i thought it was funny. these guys are the dumbest criminals. you're going to steal something and wear it. that's crazy, in the same area. >> they did at mcdonald's that landed them in trouble with the law and the dumb criminals file. ?

leno signed off last night as host of "the tonight show" after 22 years behind the desk. julie banderas live in the newsroom. tell us about jay's star-studded sendoff. hey, julie. >> yeah, leno's run as host second only to johnny carson at the helm for 30 years. tearful speech moving and sad to watch jay leno's heartfelt good-bye. he began by thanking the audience. >> you folks have been just

incredibly loyal. this is tricky. we wouldn't be on the air without you people. secondly, this has been the greatest 22 years of my life. [ applause ] >> on nbc in 1992, left in 2009 to return the next year after conan o'brien took over and failed in the ratings. "the tonight show" was filled with jokes about o.j. simpson, favorite pumplg line, tapped billy crystal to be the last who poked fun at leno being pushed out by nbc ♪ there's a sad sort of clanging from the clock in the hall, and the bells in the steeple, too ♪ all the executives that run nbc are popping in to say you're through ♪ >> his musical guest was his favorite country star garth brooks, jack black, carol crow,

kim kardashian, also gracefully passed the torch to jimmy fallon and then he bid his fairwell to "tonight." >> quote from johnny carson, the greatest to do the job. >> reporter: president obama high pressure had a taped good-bye offering him a job, ambassador to antartica. >> what a tear jerker. the beatles came to america 50 years ago. >> what is your favorite beatles song? your best tweets next? hungry for the best?

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this is my favorite beatle song. i played it at my wedding. >> beth, i love "all my loving." >> walked out of the church to

"i will." plays it on my anniversary. >> carol said "i saw her standing there" because i was just 17 when it came out. never mind how old. >> john rowland says it is impossible to pick a favorite album much less a song. so true. >> i am the walrus. >> fox news alert, officials in turkey say passenger on board a flight from the ukraine tried hijacking the plane and diverting it to the olympics in sochi, russia. hi, everyone, i'm gretchen carlson everything this is "the real story." istanbul, turkey, the suspect claim there was a bonl board, tried to enter the lock cockpit. but the plane landed reportedly with an f-16 escort. all the passengers still on board in istanbul. turkish police trying to convince the