>> and right now three developing stories we are watching this hour. worst president since world war ii. that's how americans are describing president obama in a new poll that must have the white house shaking heads. and the nsa spying program. and what it said about the government overstepping thfrment 212-year-old girls charged in an attempted murder dow in court today. our legal panel with the latest on the slender man stabbing case. this is a fox extreme weather alert. hurricane watch for north carolina as tropical storm arthur moves up the florida coast. welcome to the now hour of "happening now" i am son scott. >> and i am shanan bream in for jenna lee.

tropical storm arthur is expected to strengthen in to a hurricane tomorrow. that is 90 miles east of cape canaveral, florida. the question is where will arthur land. we have the latest, janice? >> hi, this storm is looking the best i have sewn it since it became arthur. we are seeing an eye beginning to form here. and hurricane runners are out there investigating and give information for the 2:00 p.m. advisory to update the wind speeds and even on the radar imagery you can see the eye that is forming and the stops are wrapping around the center of that and that is an indication of strengthening and expecting a hurricane in the next 12 or 24 hours and it might come sooner and the warm waters out ahead of the storm. there is a track and we think it will be a hurricane or brush or come on top of cape and we'll go

the carolinas and up toward virginia and this will move north and eastward. and we'll have to keep a close eye on cape cod, and the iowa lands. kwooel keep a close eye on the hurricane hunters investigating the storm. and the gulf stream, has warm waters ahead of this and supporting and strengthening this system. and if it doesn't interact with land we'll have a strong system in the next 12- 24 hours. this forecast model hugs the coast. if you live in florida, and carolinas and midatlantic area keep update on the category 2 storm with this forecast radar coming on top to coastal north carolina and midatlantic and northeast where we think we will not get as much rain and wind and surf as the folks on the southeast coast line.

and real quick, potential of severe weather today. we have a front that is moving eastward and that front will turn this storm to the north and east. and we have a lot of severe thunderstorm watches and now tornado warnings for parts of pennsylvania, and new york. and okay, we are seeing rotation on some of these storms and this is another big system that we are talking about. the cold front that is moving oast ward and interacting with warm and juicy air in the northeast and midatlantic and potential for tornados. and so a lot to cover can. and tornado warnings for new york and pennsylvania at this hour. shannon, back to you. >> thank you, jenna, very much. >> the storm could impact the way people travel this afternoon. 34.8 million americans plan to travel by car this 4th of july and the weather forecast is not

scaring people from hitting the beach in carolina. myrtle beach expecting 300,000 people. hotel rooms are filling up and savannah they are planning to be 80 percent full. plan ahead if you are heading that way. >> we have tropical storm arthur continuing to strengthen and we'll keep an eye on it. more than 200 firefighter battling a massive wild fire in the north california wine counsel row. >> people in napa county had been forced to leave. no jurisdiction are reported and the cause of the four is unknown. >> a now poll asked rentalistered voters to name the worst president since world war twochlt president obama comes in

first place. and 33 percent fully one- third of those responding rank him as the worst president in nearly 70 years and george bush is second and richard nixon who resigned office in disgrace came in third. 13 percent. and let's talk about what it means with our senior political reporter for u.s. news and world report, david, do the numbers surprise you? >> any time you are rated worst than richard nixon who was forced from office is not a good thing. but look at the top two presidents in the poll, obama and bush that happen to be the last two presidents. in all fairness it is about familiarity with the president and over time, even with george w. bush, people start to give the president benefit of the

doubt and look at him more favorably. but the more troubling poll number in the survey today is obama's approval rating which is at 40 percent which is near his all- time low of 38 percent. those are really tough numbers and head winds for democrats on the ballot in 20 authority 14. and as far as how obama is judged historically, it is more fair to look at that 2017. >> disapproval numbers are not good. when asked what about president obama's performance on things like the economy. 55 percent disapprove. 57 percent disapprove of his performance on foreign policy. and 58 percent on health care and 51 percent on terrorism and the only one where he seems to be in reasonably good shape is the environment where 40 percent disapprove of the job he's

doing. what happened to at least hope, if not hope and change here, david? >> you had a perfect storm of events with foreign policy unravelling, and crimea and ukraine and iraq all the way to afghanistan, and then you have the botched health care roll out and the problems in the va, and the scandal and sort of not knowing what happened with the irs and those documents, you have all of these things happening at once in the dead of summer. the one thing democrats are saying, thank gosh it is happening now when americans are less tuned in and maybe going off to enjoy the holidays and maybe not watching as much and consuming as much news. clearly those numbers are bad numbers across the board, and having the best number on the environment is not going to help

democrats in election year. that is usually not a voting issue. >> it is not as if all of those things happen in a vacumn. presidents a point people to run these agencies. the president is frequently surprised and he learned about the irs scandal by reading it on the newspaper or news media and that happens time and time again. and where are his underlines who are supposed to handle these issues? >> i think you so that reflected in the competency number. one of the lines in the survey, i think the number was 45 percent or more don't believe he is running a competent administration. and that's what you are seeing across the board with the cabinets, whether it is kathleen sebelius in health and human services or general shinseki in the va. lois lerner in the irs, and

these are obama people. these are obama's troops and they haven't been able to produce for him. and they haven't, you know, they are supposed to be the first line of defense when these problems a rise. you know, you can't blame him directly. but it is a fair critique to say these people are put in by him to cothe work and they failed and it is at the feet of the president to harness the blow back. >> one of the postwar presidents had the sign on his desk. the buck stops here. and more recent presidents land lower in the poll, number one rated president rated was ronald reagan and it was a quarter of a century since he was in office. david, thank you very much. >> thank you, jon. >> a federal over sight board

released a report looking into a program striking the right balance between security and your privacy. chief correspondent mike emmanuel is in washington with the latest. >> reporter: hi, shannon. the oversight board voted to adopt over the surveillance programs. >> over all the information is valuable and effective in producing valuable foreign enteleigence information. >> reporter: here are the key findings. prism gathering digital information is clearly authorized by the statute and allowing collection as implemented. core of the 202 program targeting persons outside of the united states fits the fourth amendment and there is a large scope of incidental collection of u.s. persons communication. and the panel made detailed recommendations to approve the

program. meanwhile on capitol hill there is liberals and conservatives joining forces to speak out about privacy and civil liberties and here is a sample. >> some say it is only records held anonymously and rarely accessed and what is your beef? what they rarely mention they don't believe any of your records have 4th amendment protection. >> it goes right to the heart of the values that the septemberor from kentucky and i and others have talked about. that is liberty, and security are not mutually exclusive. >> reporter: the bipartisan board said the board passes constitutional muster and employs reasonable safe guards to protect the americans. we'll see if paul, ryden and others agree. the attorney for oscar pistorias making shocking claims about the athlete's mental state. what he said and impact on the

outcome of the murder trial. a horrifying moment after a food truck explodes in a giant fire ball. >> i heard a boom first and then the fire came out of no wrchlt i was walking by and the truck just blew up and saw the ball and it hit me and i started running. >> what may have sparked the explosion? we'll talk about that and what happened to the mother and daughter who were working inside. plus, president obama taking an aggressive stand against the "do nothing congress". but should the president use executive orders for his own agenda. go to it fox news.com/happening now and click on the america's link and tell us what you think.

>> 11 people injured two of them critically after a propane truck exploded in norther philadelphia. check out the surveillance footage capturing the giant fire ball and throwing the entire block into chaos. >> i heard the explosion and sewn smoke and people running and yelling. >> is sounded like the ground was shaking. >> the telephone was in flames and people were burned on their front porches.

>> a mother and daughter who worked inside of the truck are in critical condition. authorities are trying to find out what cause canned the fuel tank to explode. >> the mental stage of oscar pistorias. the attorney read a psychological report. he suffers from post traumatic stress disorder and at risk of suicide. prosecutors say he shot reeva steemkamp in a rage. paul has a society in the kourp and has the latest. >> reporter: jon, oscar pistorias is at suicide risk. extracts of his mental state compiled by the psychologist were readout in court today. >> mr. pistorias is treated and continued to receive clinical

care by psychiatrist and clinical psychologist for his current condition. should he not receive proper treatment for his case he is at risk for suicide. >> fox news is shown the single page report by the three psychiatrist. he is now suffering from post traumatic stress and was not in the time he shot reeva steenkamp and he could tell right from wrong. fox news obtained a copy of the 50 page report compiled at the same time. in a last-minute ruling, the judge ordered we can only report the findings of the two photograph that mirror the psychiatrist findings. he could tell right from wrong. and mr. pistorias did not sufisser from a mental defect or mental illness in the time of the commission of the offense

that would render him criminally not responsible. the agent of pistorias was questioned on the statement that reeva steemkamp was special because she was the first girlfriend that the athlete to take her on assignments. pistorias also made plans to take his previous two girlfriends with him. vanzel didn't recollect or remember. jon. >> the defense is using the psychological report that came out of a forced evaluation in a psychological institution using it to help with his defense? >> reporter: they are trying to use it to help with the defense but works out better for the prosecution, because it shoes he was not mentally ill and you can't argue with that, jon. >> paul tisley reporting from

south africa. is president obama creating an imperial presidency? and the year of action and the next guest claims that the system that is used to balance the president's power may not exist. >> organizers in memphis are planning to get rid of the toupee that are part of the graceland tour. life with crohn's disease or ulcerative colitis

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travel to see graceland home of elvis presley. but fans may be getting the last look at his prized planes. the twin jets named lisa marie and hound dog two were solid after elvis' dais death and the new owners allowed them to be displayed. but elvis presley enterprises said it is ending that agreement. and the plane's owners hope to renegotiate. >> are you in the market? >> no. those old jets burn a lot of fuel. >> you are little more green than that? >> and new sku questions about president obama's use of executive order. he said he will go alone and critics, so sue me. and the use of excutive orders is dangerous. one critic is wayne cruise who

wroes a piece on forbes.com. this is threatening coming from a national government with lack of transparency and accountability. and wayne crews. wayne, thank you for joining us. >> and everybody hears about executive orders and there is a lot of different things. memos and directives that the president has been using? >> that's right. i looked at this last year and looked at the number of laws that congress passed was 72 and at the same time federal regulatory agencies put out throw 600 regulations and you have a situation of congress and regulators putting out 51 regulations for every law that congress passed and as we say in the office the constitution is not perfect but better than what we have now. we have laws passed by congress.

but obama is using pen and phone. and lately become more emphatic with respect to immigration rules and environmental rules and i was looking at this. he has the option of excutive order ares it is not excutive orders that it is coming from. he did do a rise in the federal minimum wage and put in protections for workers who tell about compensation practices in companies. but he's doing guidance documents and it is guidance documents and memorranda to agencies to affect this agenda and they are doing it, too. and for example, obama care extensions, there are 22 of those. how does this happen? no law got passed or regalways go through. when it occurred, the irs issued awe blog post and guidance document and memorrandum and press release.

>> and let me ask you. one of the first responses from the president's supporters and people on the left is critizing this as well. and they don't want this precedent for a republican president. president obama hasn't come close to the numbers that we have seen in the presidents doing it in the thousands. where do we get to an analysis of quantity versus quality. >> he is no where close to it franklin roosevelt who had thousands of those orders. but obama is not close to. that but the difference is now, the federal government takes over more and more components of the economy. education, the financial sector and health care system and cyber security and new min numb wage law and green energy and most of these should be in the province of the private sector. but the more the federal

government takes over. the pen and phone can be issued without executive order but just winks and nods to the agencies. >> and a lot of folks say those agencies are in a fourth branch. >> and it is thorough. think of the federal communication trying to reregulate telecommunication and media practices and in the nation's media and the financial sector, and some of the guidance and new notices coming out of the obama administration are looking at things like changing the rules with respect to student loans. one of them give the student an option of capping their payment on the student loan at ten percent of the income after they graduate. the thought is nice, but is that the role of the federal government to do? and it is a problem of escalation in the education costs and similarly the administration directed the

treasury department where employees are signed up in an investment program. this is the government nudge approach trying to regulate the economy. but what does that do? is it a smart idea for the federal government to push investments in the markets when the markets hit a peak? and data collection on wages and compensation and government contractors. all of this has a ripple affect. >> and there is a lot of tools to the executive branch and now perspective from the house and watch the lawsuit from the speaker over there. you have a thought provoking piece. >> 212-year-old girls facing attempted murder charges appearing in court today in a bizarre case involving the on line fictional character skwt slender man". tropical storm arthur just in time for the july 4th weekend.

phil keating is live in coco beach. >> reporter: hundred miles offshore the rain and cloud action that is the back side of tropical storm arsure and soon to be a category 1 hurricane by tomorrow. and on the front side of arthur, the entirity of the u.s. eastern coast line. we'll have all of the news you need to know to keep safe and it could be a wet july 4th weekend for millions, coming up.

>> fox extreme weather alert. tropical storm arthur is heading north and mill combrons on the east coast are preparing for the storm's wrath in time for the july 4th holiday. >> reporter: hi, we are on the pier that is popular with the surfers. off in the distance 105 miles northeast of us is tropical storm arthur and for the surfers tis a great day to play in the surf. for anyone on the eastern sea board you have to be careful about rip currents and flash floting and storm surge.

and it is packing 60 miles per hour sustained winds and they could get up to 80 or 85 miles per hour tomorrow. and it bears lot of punch. look at that photograph taken by the astronaut on the international space station. this is from 250 miles up. that storm will get larger and stronger. look at the happen of the eastern sea board. all the way to mine and canada, all of that coast line will be impacted by the tropical storm/hurricane over the next couple of days. in north carolina right now in the coastal beach communities cap hatters and wilmington. they are popular for the 4th of july weekend and summer weekend and this has a potential of what could be a category 1 hurricane and the national hurricane center is unveiling with the

first name storm system of the season. this great interactive map on your own computer go to the national hurricane weather website and click on the link and scroll up and down the coast line and get specifics on where you live or a certain zip code of where your loved ones live to see how dope the flash flood and storm surge will be. and that will keep you more safe. if you want to head out or stay put you will know where not to go. >> and the rip currents are dangerous in stops like this. when it comes to hurricane, more people die because of the storm surge and flash flooding than the flying debris or the winds. this map could be a great tool as we now get started with the 2014 hurricane season. >> interesting technology. phil thank you so much. >> reporter: yes. thank you.

>> new news in the in the slender man stabbing case. 212-year-old girls who stabbed their friend in name of the fictional character. prosecutor said the girls walked in the woods with a friend after a sleep over, whose identity is protected and stabbed her almost to death. and hours later they were charged as adults with attempted murder and bond set at half million dollars each. and we'll bring in our legal panel. heather, one of the lawyers, the lawyer for one of the girl said his 12-year-old clint is not competent to stand trial, is that a stalling technique or a case. >> the doctor for the prosecution and defense found she would not be comp at the present time to stand trial. the question is what they do with that information the judge ordered she be evaluated to see

if an insanity plea is in her future. it will so if the other culprit makes the same claim. >> i would think given the nature of the crime, 12 years old and both victims, and stabbing the friend, one of the knife plunges came millimeters of the girl's heart and they might have killed her. i would think a insanity defense would be i natural. >> something has to be westerning with the young ladies to commit such a heinous crime. and the minute i heard about the case, they will go for. that and because they are juveniles fit goes back to juvenile court, they will have to do something about the young ladies whether it is psychiatric hospital or something. >> in wisconsin if you are convicted as a juvenile, you can still go to jouf nile hall or what they want to call it until the age of 25.

and that is strict. >> and considering the fact that they are 12 years old and so many avenues are open. if they plead insanity. we don't know what the court will do. and one pleads insanity or the other and there is a lot open to them. it will tell us what they are going to do in the future. >> we'll get your thoughts on the next case. tinder is a website to try to light the spark between singles. one top executive claimed that the attention she received from a fellow executive was anything but tender. here is the text messages. you are a blank, for instance. she had dated and the relationship went south. how, you have seen the complaint, does she have a case.

>> it will be difficult because of the preexisting relationship and they dated each other. and his attorney would say it was based on that and had nothing to do with employment relationship because of the company. >> you are shaking your head or nodding your head? >> it is true. but she was apparently demoted and she was a founder of the company and suddenly as a result of the relationship issues she is no longer labelled a founder. if that is the case tgoes beyond a break up and that makes her case stronger. one founder is female and the other four guys said we can't call you a co-founder and you are 24 and you are a woman and that devalues. >> they were asking for a lawsuit. >> the fact she is 24. i don't care if she was 20 or 19, if she is a founder she is a founder and that is outright discrimination. >> there was a statement put out

by tinder and said we condemn these messages that came from the head of marketing, justin mateen. but we believe her allegations with respect of tippeder and his management are unfounded. they also said essentially that the case, you haven't heard everything about the case. >> that's what i worry about if i were her attorney. there might be text messages and that may implicate. >> she plays it cool and she is calm and getting berated and abused by a guy. >> once they do the discovery and see what the other side has that will be more information. >> supposed to be worth half billion dollars. >> big company. it is interesting that these types of players are acting these way. >> sometimes young executives don't necessarily make the smartest of decisions.

>> thank you both. >> thank you, john. >> we often hear about the struggle for recent college graduates to find jobs in this economy. now a student run venture fund is helping entrepreneurs to launch businesses while they are still in school. and laur is here with the story. >> reporter: investment firms are looking for the next big idea. and finding the funds is not always easy and that is where the dorm room fund comes in. >> certainly college campuses all over the country are fantastic aggregators of talent and that can express itself in the entrepreneurial landscape and they have to make a difficult choice. >> launched with first round cant captain and seems that student investors were given 2 million nationwide and the power to identify entrepreneurial

talent amongst their pieers. one is a pepper sauce that took off. >> it is in 200 stores and we would not be there withoutdom room and introducing us to people with functional expertise. >> and google and microsoft and facebook were launched by college student. the dorm room fund invested over 50 companies. fire fly is another example. it was a dorm room first investment and acquired by a massachusetts software provider. they scout on campus and take applications on lean. >> once we invest in that company and part of our community. we are in the trenches with them and provide them with resources and do everything that we can to get them to their next smile stone. >> as students help the

businesses grow. investors get returns on the company. and a relationship with the student founders in hopes of working with them again in the future. >> sounds like a win- win. thank you. >> dow, 17,000, anybody? that historic number is so tantalizingly close and could mean good things for the 401 k. and the man who headed nonpartisan congressional budget office is here to tell us. and the stars and stripes are flying ahead of the 4th of july. and have you ever wondered where old glory was made? we'll go inside a facility that makes american flags right here in the the usa. sfx: car unlock beep.

vo: david's heart attack didn't come with a warning. today his doctor has him on a bayer aspirin regimen to help reduce the risk of another one. if you've had a heart attack be sure to talk to your doctor before you begin an aspirin regimen.

>> hi, everybody, the gop fouling the so- call would war on women and we'll tell you about that and captaining often critized for not getting things done. they find times not to report the free trips like they used to. and we'll tell you how. and do you believe in ufo's. when and where people claim to spot et in the top of the hour. all eyes on wall street as the dow inches to the 17,000 mark and we get promising reports on employment and housing. why do many say our economy is stuck in neutral. we have doug,good to see you today. what do you think. numbers.

showing a private hiring at 281,000 jobs is that good enough? >> that is not good enough. the economy is growing at two and half percent at best and generating 190,000 jobs and we don't get down to normal unemployment for something like a year. and that is disconnected from the all- time highs you are seeing on wall street. >> what does that say to you? is the infrastructure there and what is driving that number? >> three important things. one is the fact that there are profits out there and they are largely driven by cost cutting and that's why the hiring is so weak. and the environmental factors. the u.s. is not doing well. but a lot of international money is pouring in the u.s. and that's fuelling the market rally to the point where some

international bankers issued warnings about the u.s. being close to generating another bubble. >> and i am going to read something that we heard from the federal reserve janle yellen and let you trandzalate it in a lay person. they are prepared to put interest rates to top price doubles. what does that mean? >> the fed has many tools and one of them is regulation and that's why they dedicated themselves to controlling bubbles and raise the amount that you have to put in a down payment for a house and don't buyero and buy stocks and also saying look, if push comes to shove we'll raise the rates and warn the investors off of the cheap money there for a long time to come. >> what do you expect from the job's report. >> we'll see 220 this happened jobs and it will be okay and not great. and people will feel the

distress on the ground. >> thank you, doug. for lending your expertise. >> and thank you. millions of americans getting ready to celebrate the red, white and blue this weekend. not all american flags created . >> reporter: it is the symbol of our nation and you would think all american flags are made here in america but that's not the case. we're live today at one of the few flag manufacturing plants left in this country and i'll have the banner story coming up next. where its biggest refinery has been attacked. more chaos over there means higher prices here but we can take control with renewable fuels like ethanol. it means more jobs and more security... less pollution and less pain at the pump. because it's time to stop letting chaos decide our... energy future. tell congress and the epa to stand up to big oil.

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♪ you're a grand old flag

♪ you're a high flying flag . >> it's a grand old flag and even grander when it's made here in the usa. claudia cowan is reporting live from a company that manufacturers more than 80,000 editions of old glory a year and that number could be going up. claudia? >> reporter: john, it's always a star spangled day here at the nonprofit factory north of san francisco where workers stitch together flags every day for the u.s. department of veterans affairs. by law the va can only by american made american flags but other departments buy flags manufactured overseas and that's prompting a battle cry for change. from the cotton bearing stars and stripes, these flags are 100% all american. a fact appreciated by the families of veterans who pass

away. >> we are trying to make the best possible product for our veterans. they deserve the best. >> reporter: but not every flag is created equal. until recently, banners covering the caskets of service members killed in action and paid for by taxpayers might have been manufactured in pakistan or china. that felt like a slap in the face to congressman mike thompson, a vietnam vet who toured the factory in his northern california district. >> i think it's offensive that u.s. flags be made, manufactured, any place else other than in the united states of america. >> reporter: as a result of his efforts, the pentagon is now required to buy american made flags and other agencies may follow suit. >> what i'm doing is i'm putting the third row of stitches on. >> reporter: more orders could mean more jobs for people like sue wilson, one of two dozen employees here with developmental disabilities and a sewing machine wiz. >> i love it here. i feel like a million bucks. >> reporter: that attention to

detail, pride of workmanship, evident in every flag made here and in honor of the fourth of july coming up on friday, here's some flag etiquette to keep in mind. a flag at night should be illuminate and never let old glory touch the ground and call the local boy or girl scouts and they'll retire your flag properly by taking it apart and burning it. john? >> good news. and we both agree that they ought to be made in the u.s. >> we're all about that. >> all right. thanks, claudia. will you see a fourth of july hurricane? we're watching arthur as that powerful storm gains strength and roars up the easterd. could it be a holiday weekend washout? starts with back pain...

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analyzed supposedly left behind by mythical beaches. they came from bears, cows, if there's no dna sample to run it against in the files, i don't know? >> there was a unicorn in there as well. good to have you here. >> thanks for having me. >> you're going to recognize our next host. thank you for joining us. "the real story" with jenna lee in for rachgretchen carlson. >> the u.s. department describing ahmed abu khattala as commander of the terrorist group responsible for the murder of americans at our consulate in libya. our chief intelligence correspondent is live in washington with more on what happened inside the courtroom today. >> reporter: this was a procedural hearing. no one expected