>> we know another life is at. >> that will do it for us on "outnumbered." now "happening now." >> you all need to get back. [bleep]. >> told you how violent instigators were inserting themselves into law-abiding protest. >> if you're in the middle of the street, you're unlawfully assembled and must disperse immediately. >> let's give attention to the peaceful, not those kind of call attention to themselves, let's not polymerize the active criminals. jon: protest flaring up in ferguson, missouri, as attorney general eric holder rises to the center of the firestorm. welcome to this new hour of "happening now." molly: tensions at a fever pitch

in ferguson making growing calls to arrest the officer who fatally shot an unarmed black teenager. now eric holder will meet with authorities on the ground and with a team of federal agents. promising a thorough investigation into the fatal shooting of 18-year-old michael brown. live in ferguson, missouri, with the very latest. the attorney general has just arrived, correct? >> and asses case news generating extra ordinary federal attention. touching down around 11:00 local time now meeting at the community college with community leaders. after that he will head to the field office in st. louis. it is said the fbi flooded the zone, more than 40 investigators working primarily the area where michael brown was shot rounding up witnesses. the grand jury is also get in the case.

demonstrators gathered outside the justice center. a lone supporter showed up, police put her in a car and whisked her away apparently for her own safety. the grand jury process could stretch into october according to the county prosecutor but there is no timeline. molly: what do we know about the condition of the officer involved in the shooting? >> we know the chief of the justice ferguson office was treated for swelling to his face and his head because of injuries received in the course of the arrest. now there's information he was hit hard enough to break the bones around his eye. that information coming from the gateway pundit reporting the injury is an orbital blowout fracture to the eye socket. it shows a leak with the county prosecutor's office. they said it did not come from them, won't confirm or deny it, saying the information be part of the grand jury investigation

which has just started today. molly: thank you very much. jon: with more on information on the ground in ferguson and police report naming him a robbery suspect we're joined by national breaking news reporter for "usa today." you have been on the ground and have filed many reports. it sounds like last night was culminating of the last 10. are they community is finally starting to get a handle on it? >> i think so. captain johnson leading the police response: this a turning point. he said the protesters did not have to be teargas, he said protesters largely dispersed peacefully and having been there, i can tell you protesters were more calm than protesters considering themselves peacekeepers forming a line in between the protesters being

rowdy and police officers the people are starting to listen to peacekeepers and calm them down. people walking around in circles to keep from being arrested because you cannot stay still. people said i just need some rest and other people leaving because of that. jon: is that the case people out on the streets legitimately protesting about what happened to michael brown and others out there to cause trouble? >> i think some people are very off message to say justice for mike brown said hands up, don't shoot which is a rallying cry, and then there are them pick me up water bottles and throwing them at police. other people pushing other people around in the crowd trying to say we should rush the police. there are the people who want to protest safely in a couple of

people who are going to be throwing water bottles and a tech a nice people. i was in the crowd when protesters were telling the people throwing water bottles to stop, we have to be here for michael brown, we don't want to cause trouble. jon: a community is trying to police itself, seems good where both the attorney general, is there any way to assess his only been on the ground for an hour or so, but anyway to assess with that is going to do to the situation? >> honestly it is probably going to help calm the situation because a lot of people were excited eric holder was coming. showing people of ferguson they do care about them. he is meeting with community leaders at a community college which gives people the idea he is not just here to talk to the fbi, here to talk to people of ferguson and those who started protesting. if people feel the meeting went

well, this will calm things tonight. jon: the police report that says michael brown was a suspect in a strong-arm robbery and this report that this police officer apparently had some fractured bones in his face as a result of his altercation with michael brown, how are those being received on the streets of ferguson? >> i think people said with a really want is people to look at what happened, they want a fair and thorough process. some people were surprised there was a robbery report, but some thought it was a character assassination. people thought he had robbed the store, does not mean he should have been shot to death. some people say even with that release report, he didn't deserve to die. some say this is evidence

meeting is to understand, is more complex shooting a black unarmed boy. jon: thank you. molly: fox news alert, u.s. intelligence now saying the horrific video of a beheading of an american journalist is authentic. the video shows the execution of 40-year-old james foley from new hampshire kidnapped in syria nearly two years ago and the terror group threatens to behead another journalist if the u.s. keeps up airstrikes on isis targets in iraq. moments ago spoke about their son and killers. >> it is very, very complex, they believe very strongly in what they are doing, they knew

jim was innocent? molly: amy kellogg live in london with more. >> he giv gave tribute to his dedication and work and very poignantly the story we had heard james foley had given comfort to other prisoners who were younger and weaker than he was during his two years in captivity in syria. we heard from president obama spoke about no religion advocates the slaughter of innocence. by the story not least of which, the killer according to the tape has a london accent and there is a lot of shock about that and prime minister david cameeron hustled back from his vacation

to meet with the security chiefs. it is believed that the killer is a britain citizen. he was not yet identified. authorities are trying to do. that there are 500 brits fighting in syria and iraq and analyst say they are violent. and there is 900 jihaddist from france and far fewer going over from the susa and canada. there is the not a coherent government strategy in britain for dealing with nonviolent extremism and getting to be threats to society. and people asked all day that how is it to the point of twisted ideology that appeals to so many people and how they have become so violent. >> it is not necessarily the

beheading that entices them but this is the way of getting back at the u.s. the u.s. has air power and ground power and their way of hurting the u.s. to sum up. there is a fear that some of these violent jihaddist over in syria and iraq could come back here to commit violent acts on british soil. molly. >> amy, thank you. >> the american journalist james foley, the latest person brutally murdered by islamic militants. you recall that daniel pearl was beheaded by his al-qaeda kidnappers in pakistan. his cantors released a videotape of his execution. in may 2004, nick berg was beheaded in iraq by an islamic

extremist that posted the video on line. and a extremist group in saudi arabia bewoulded paul m. johnson junior. and a britter solder was murdered in the streets of london by two islamic fanatics as he left his barracks. >> and former attorney generally sullivan won the alaska gop primary. he will take on mark begich in november. here's the latest with this. >> dan? >> hey, molly. this is a big victory for the republican establishment that got behind dan sullivan and figured he was the best chance of flipping the all important u.s. september seat. karl rove and his pack threw a million dollars over the race

and attacking begich and this is sullivan's first run for officers and he was tested. joe miller had a strong second place finish. and getting miller's enthusiastic supporters will be key for sullivan. he will have to tie begich to president obama who is unpopular in alaska. >> republicans if they are smart, they will hang begich's voting record around his neck and watch him sink. >> begich is a skilled politician and knows the state and defied the odds before. the super park hammered sullivan trying to have him lose or weaken from the general. expect begich to highlight his position on gun rights and

energy. they voted together on every single. it was not a selective. but alaskians we focus on the issue of that matter. >> sullivan's campaign told us that he lost his voice in the campaign in the last couple of days and why he's not doing media. he will have to find it quickly. the race is over two and half months long. and he will have to find that quickly. it will be a very bruising campaign against a good politician and mark begich. >> we appreciate the update, thank you. >> could the alaska race be one of those seat switches that republicans are hoping for that lead to a shift in power in the senate? >> and the brutality of isis is hitting home to americans with the appalling murder on camera of a journalist from new hampshire. how will the u.s. military deal with the growing terror threat.

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see car insurance in a whole new light. liberty mutual insurance. >> the obama administration said over and over again that there will be no american groups on the ground in iraq, will the president keep that promise? he admitted underestimating isis and there was a release of the video showing the beheading of american journalist james foley. the ceo of wit twit suspending accounts relating to graphic images. thank you. >> rick was a former diplomat and advisor to the ambassador to the united nation. >> thanks. >> it is horrific video.

and the president spoke not only about james foley but isis and said it was like a cancer and said they need to extract it and no place for militants in the 21st century. your thoughts on what he said and is he sending the right >> he had a dramatically different tonight. he looks more serious and it is good to see, it is a problem for a very long time and we have seen over and over and over again, the national security council and this president underestimate islamic terrorist and that can't happen anymore. i forced myself to watch the video. it is horrific. but i think every arab moderate and every person in the middle east and every person that cares about what we are doing over there, needs to watch the video. it is terrible and hard to watch. but we have to understand what

we are up against in order to react appropriately. i am tired of hearing no more boots on the ground. this is a president and a national security council that keeps taking the threat of military action off of the table. we just had susan rice send a letter to speaker boehner saying please stop and take away the iraq war authorization. she is a national security advisor, she needs to have tools on the table. every available tool. >> the u.s. air strikes and video that was put out and prop gappeda from the militants that they put out on the murder of james foley. why the timing of this? does it have to do with the air strikes. they have held james foley two years ago, what does that mean? >> americans need to realize that isis has been doing the brutality for years. in syria when the president

talked about a redline and president obama said we would do manage and we didn't, we have seen isis grow inside of syria and balloon out throughout the entire region. this has been coming and again, when the president underestimates the problem, that is a danger. i hope today he understands the seriousness of it. we have seen the british leader come back from vacation and i think the president of the united states needs to come back from vacation and show how serious he is on this. and the killer spoke excellent english. >> it is becoming a worldwide problem. we should have known from the beginning. it is not just a issue over there. it is affecting americans. >> absolutely. i think a lot of people are watching that video and listening to the words. is this something we have coming to the home front? >> it already happen on our home

front. this american represents all of us. and tony blanken told us that this group isis is not going to come after american interest. he said that. clearly they are coming after american interest and we need to get serious about it. >> thank you, rick, for being here. >> john? >> the governor of texas smiling for his mug shot. rick perry turned himself in and calling the charges against him an example of run away politics. how is he doing in the optic's war. >> and a department store accused of treating people differently because of skin color. what macy's promise to do in the future. so ally bank really has no hidden fees on savings accounts?

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>> we talked about it on "happening now". another candidate backed bite republican establishment beats a tea party challenger in the state of alaska where dan sullivan won the gop nomination for the senate there. with it, a big stake in the gop take over in the senate. and we'll talk politics with dave ka ffne. david, first of all no surprise that joe miller was beaten in alaska. he was the tea party challenger and popular with the tea party faithful, but he didn't have the money that the victor had? >> no, dan sullivan coalesced early the establishment support and he had good financial support out of washington and outside groups and joe miller was never seen electable. but he had a better showing than

more people anticipated because of his performance in 2010, republicans were loathe to support him. so look, this is another race where a republican establishment got their preferred candidate and they got every candidate they wanted in all of these senate primaries and now the big question is, can their lot of candidates convert in 75 days here and get six seats for senate control? >> the new york times did complicated and thorough number crunching and they come out with a 20 percent chance of all of the possibilities and all of the permulations that g go into this mix. and 26 percent that the republicans have a two seat and they win eight seats and 18 percent chance according to their calculations end up tied with 50 seats and the

vice-president joe biden would continue to vote. you say it is a coin flip. are you arguing with the time's strategy or are we splitting hairs. >> i am a little bit. i talked to a group that is invest negligent senate races and they believe it is a 55 percent chance that the republicans take over the senate. they are in the window of 4- 8 and they need six to convert. if the election were held. they would get south dakota and montana and west virginia and arkansas which they have a marginal lead in and two out of five remaining states. alaska, north carolina and louisiana and then throw iowa and colorado. that's the big question. all of them are margin of error races and the democrats have a small lead.

can they win two of those five? if they get two of the five states they get the senate. that is just to six seats and that is 50- 55 percent chance and not exactly in the 75 or 85 percent chance at this point. >> and we'll talk presidential politics now. it is presumed that rick perry is back in the hunt for the nomination, not this year obviously but in 2016, and all of the sudden, he gets indicted by a grand jor, what will that do to his chances. democrats even are saying the indictment is a load of hooey. he won the optic's war yesterday on the site, because the democrats came to his defense even ted cruz came to perry's defense and said that this travis county prosecutor had a history of political prosecutions over the years and

that being said, have you heard of a presidential candidate on the trail that has an indictment next to their name? it is unprecedented if rick perry were to run for president underindictment and imagine him going through a jury trial that could be potentially embarrassing. and they can get ugly depending on the discovery and witness accounts and depending on who testified. and just going through the process is not going to be helpful especially when rick perry was sort of going through a boon of publicity and having his reputation. >> maybe we can put up his mug shot. i think people saw it. he has a small grin on his face. and the governor doesn't seem to be too bothered by. this off in iowa and doing campaigning or so it would seem.

dave, thank you. >> thank you, jon. >> attorney general eric holder is in ferguson, missouri to meet with the the investigators in the michael brown the shooting. what did he hope to accomplish with the trip? and hopeful signs that the housing market may be perking up. the kids went to take zznana's house... like... for the whole weekend! zzzquil, the non-habit forming sleep aid, that helps you sleep easily, and wake refreshed. because sleep is a beautiful thing.

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a fox news alert. america's top law enforcement officer is on the ground in

ferguson, missouri. attorney general holder meeting with leaders and federal investigators in the michael brown shooting case. his visit comes as the grand jury begins to hear the evidence that could take several weeks. we'll start with you, fred. what does it mean when the attorney general inserts himself in a case like this? >> i think it is extraordinary, jon that the attorney general is travelling to missouri at this point. some people can take that as intimidation. you wait to see what happens and gather up the evidence. the fbi is there to conduct the investigation and the attorney general doesn't need to be there. and what goes on with the missouri grand jury. the federal government can't indict without the grand jury.

for him to go is volatile at best. >> and in the lead in, the grand jury is beginning to hear the evidence. why not wait for all of the evidence to come in and the facts to come out and then make a decision? >> i absolutely agree. i mean, this is highly unusual for the federal government to get involved in a case like this so early on. but obviously holder is going out there as a symbolic gesture to show the people that the administration is taking the case seriously and it is it a priority for them and calm the tension and i get that. because the world is basically looking at what is going on in ferguson. the world. the issue is, jon, can holder be objective and not personalize the case. so far, he's made statements publicly crit sidewaysing the local police in ferguson. that is improper.

he critized the police response to the protest and the release of the surveillance footage of mr. brown committing a robbery prior to the incident and i think quite frankly he is know better. >> this is what his boss, the president of the united states said regarding the matter on monday. >> i have to be very careful about not prejudging these events before the investigations are completed because although these are issues of local jurisdiction, you know, the doj works for me and when they conduct an investigation i have to make sure i don't look like i am putting my thumb on the scales one way or the other. >> if he doesn't want to look like he is not putting his thumb on the scales, why not tell the attorney general to hang back and let the facts determine how they prosowed. are you suggesting that there is

a disconnect between what the president said and does? >> maybe between what the president said and the attorney general does. >> but the attorney general works for him. president obama signs his paycheck and if barak obama told his cabinet member to not go there, he doesn't go. there it is good cop, bad cop. and barak obama calls for peace and reasonableness and at the same time sends the attorney general. when i worked if federal law enforcement, there is a tension between local law enforcement and the federal law enforcement. feds are like a gorilla and they push people around and sending the attorney general down there, until there is hard evidence that there is a crime committed, it is inappropriate. >> sending them with fbi agents and i have seen that in cases that i have covered. this report from the new york times and this quote. mr. holder has been tracking the

events in ferguson since he read the first reports a few hours after mr. brown's shooting and dashed off an e-mail to aides to be briefed and grew angry that over his objection, the local authorities released the video and showing an apparent robbery by mr. brown. you referred to that video earlier. the attorney general is convinced he was a innocent young man killed and he doesn't want the waters muddied by showing a 300 pound six foot 418-year-old shoving the clerk around walking out with cigars he didn't pay for. >> and they are calling for transparency. and that video had to be released and it goes to the officer's state of mind and victim's state of mind. did he have a propensitiy for violence and the attorney

general publicly critizing what the police are doing when the investigation is ongoing it is improper. protestors have a right to protest, it is a first amendment right. but there are looters. a lot of them are violent and attacking the police and throwing molatov cocktails. they are going to be in trucks and military dpeer to insure order in their jurisdiction and the comments of the president are contradictory with the actions of the government. >> fred, quickly. >> look, john, if it turned down a young man gunned down trying to retreat. we haven't seen evidence of that yet. let the investigation go where it goes and let the feds then step in if it was done improperly. >> thank you for having me. >> and a couple accused of

murder on the resort island. the body was found inside of a suitcase and in the trunk of a taxi in a luxury daughter. the woman's daughter and boyfriend were arrested. the couple placed on suicide watch in custody. a complaint of disorderly conduct was filed against sca fer. and one received more than 840,000 in a cruise line settlement three years ago. >> and crews making progress against a california wildfires. 1,000 people driven out of their homes allowed to return. that fire burning near yosemite national park and firefighters say it is 35 percent contained. at least eight buildings were destroyed and two firefighters suffered minor injuries. the cause of the fire remains under investigation.

if your home is your castle, castles are back in demand. homeowners are making more trips to the hardware store and more people are sending in their mortgage checks on time and home sales are bouncing back. what is not to like? sounds like good news all around. >> we are seeing mostly good news, new homes not so good news and i will tell you why. look being at the rest of the summer, the housing market is recovering after a long harsh winter. home depo had solid earnings and showing that u.s. sales increased. and they are expecting big ticket sales to rise in the second half of the year. lowes which is the second largest home retailer anticipating that spending will also go up. we are watching the u.s. housing starts and those rebounding in july. the housing market is reagaining

its footing and construction of new homes rose 15.7 percent last month. that is the best number since november. and more americans are paying mortgages on time. transunion said late payments have fallen to a six- year low and not to mention foreclosures have decloined and we are not seeing new house sales compared with last year. they are lagging a bit behind and building permits are up which is a positive. >> if the building permits are up and they sense something that we are not seeing in the real estate market number. and the job numbers are positive. but we are looking at softer wage growth and local participation at a low from the early 80s and 70s. >> and lot of mixing things. >> thank you. >> thank you. >> and bomb blasts in gaza as peas talks are scrapped.

israel launching new air strikes after defense officials said hamas violated the ceasefire by firing rockets in israel. and crews searching for people trapped in mud and debris after a series of deadly land slides.

>> hi, everyone. i am gretchen carlson. tons of breaking news going on. lieutenant governor of missouri critizing his boss for the situation handling in ferguson. he said governor nixon and prejudging the facts before they come to light. plus, president obama takes a break from the vacation to address the beheading of an american citizen. will that stop terrorist group isis from striking again? find out in the top of the hour. >> taking you to japan now.

torrential rain is causing flash flood and mud slide. officials fear the death toll will rise. rescue crews are looking for survivors and searching through damaged buildings and resident struggle to navigate the flooded streets. more rain is likely in western japan. more mud slides and flooding are possible. >> isis beheaded james foley and they are threatening to kill another. this is a latest brutal murder carried out by isis. and one military expert said we are dealing with a dibollical enemy. how should the u.s. stop the thugs. we have general bob scales. thank you for being here.

>> hi, molly. >> we talk about messaging. the president used an analogy back in january saying the analogy we use and this is accurate. just because they put on a lakers uniform doesn't make them kobe bryant. he talked about a common effort needed to extract the cancer. we are talking about the rise of the militant group. on messaging, how is the president doing and is this a different tone? are we going in a right direction? >> no, it is very poor. let's face. it whether we like it or not isis is at war with us. and given the fact that we have done 90 air strikes we are at war with isis. it may not play like the invasion of iraq. but people are being killed as we have seen sadly with mr.

foley's death. isis is building a state- like instruct and you are once they consolidated that going after us. and the president and the american people have to understand that frankly and sadly. we are in this for the long- term, molly. >> we have seen air strikes and that's one of the reasons that this group put out the beheading video. are they saying we are bringing it to you, now. is that the message they are send nothing the propaganda film? >> there is no question about it. recall in afghanistan, the taliban beheaded one of our correspondents over the air strikes and air strikes are a down payment. the president said there will be no boots on the ground. excuse me, there are 1500 boots on the ground estimates say. there will be more to follow. the united states has to go after isis and humanitarian aid

and economic sanctions and diplomacy won't work. they only understand violence am start killing them. >> there's nothing that can be done diplomatically with a group like this? >> they only understand one thing as i said before and that's violence. this is a war against the west. this is a war against the unbelievers and they have demonstrated they are probably the most dgroup that will take of effort and many allies and a campaign and a strategy until we get on top of this. for now, this is the most potent threat against the united states and the world today. >> wow. major general, thank you for your insight today. thank you for joining us. >> thank you. americans who are tired of war should mark the general's

words. more violence in gaza today. israeli planes striking the home of a top hamas military leader. we'll go live to gaza city. these pajamas are really a hug.

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new violence between israel and hamas. israel targeting the home of the terror group's military chief in new air strikes. the latest truce collapsing along with peace talks. we go to gaza city now. >> reporter: we saw the first rockets that were launched yest gaza breaking the cease-fire. israel says roughly 180 rockets have been fired from gaza toward israel by hamas. most of them hit open areas. 34 were intercepted including three that we watched last night as they launched from close to

our position and headed up into the sky being knocked out by the iron dome missile defense system. the response from israel has been powerful and violent and unrelenting with strikes all day yesterday throughout the night and all throughout the day. 100 strikes in all including one that destroyed a home of the leader of the hamas military wing. his wife and infant son reportedly were killed in this targeted attack but despite early reports that he was also killed, hamas says he's alive supporting his nickname the man with nine lives. a hamas spokesperson went on tv saying israel failed and it murders women and children and buried any chance at peace and then hamas issued ominous warnings saying that all flights into tel aviv should be canceled starting at 6:00 a.m. tomorrow morning. it said that israelies should not gather in large crowds and people should evacuate their homes if they live anywhere near the gaza border. we can tell you that the rocket

fire ratcheted up since that attack but it's been mostly ineffective. we can tell you that israel called up some 2,000 reservists that were sent home a couple weeks ago so we could be seeing a big ratcheting up of action here. >> obviously this threat on the tel aviv airport economic as much as anything. >> reporter: if they take it seriously, then yes. >> rick, thank you. fox news alert on ebola. the world health organization now says the death toll from the outbreak in west africa has claimed 1,350 lives. this comes as clashes erupted in liberia after that country took steps to stop the spread of the deadly virus. an angry crowd gathering around. more news as we get it.

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hospitality. >> there's no generjenna baby y. dispel any rumors. do you have another two hours in you? >> do we have another two hours? >> tomorrow. >> i'll be back tomorrow. "the real story" with gretchen carlson starts now. we do start with a fox news alert. president obama speaking a little over an hour ago condemning the murder of an american journalist beheaded by an isis terrorist. i'm gretchen carlson. welcome to a busy day on "the real story." james foley had been missing since thanksgiving 2012 when he was kidnapped in syria. in a tape verified by the national security council now, a black hooded man takes foley's life in what he says is retaliation for u.s. air strikes in iraq. 84 air strikes across iraq in total since august 8th. those terrorists now threatening to behead another journalist and threatening americans everywhere. the president warning