and what was it. >> did you have one? >> just bad breath. >> a las tois. >> and that is more on over time. "happening now" starts right now. fox news alert and good news for your bottom line. dow jones soaring above 18000 for the first time ever. >> nice, it is a rally powered by american growth and the strongest we have seen in a decade a live report from the the new york stock exchange is coming up. we are covering all of the news, it's "happening now". >> at long last the supreme court sets the date to hear a challenge to obama care. i few words in that could make it illegal and unworkable. what will the justices decide? >> plus, three terrifying attacks in just as many days and

now france is deploying soldiers to keep order in the streets. officials there refuse to call it terrorism. are these strikes related? >> and a daring mile high maneuver. five commercial jets performing an aerial ballet you don't want to miss. it is all "happening now". >> welcome to the second hour of "happening now". we begin for the search for answers and calls for understanding after the deaths of two new york city police officers. i am jon scott. >> and i am heather in for jenny lee. mayor de blasio is trying to mend fences and asking demonstrators not to demonstrate until after the officer's funerals are held.

they were shot by a gunman who bragged on line about the heinous acts he was about to commit. david lee miller has the latest. >> reporter: hi, heather. the healing process in new york city continues. as you mentioned a moment ago, new york city's mayor de blasio and joined by his wife visited the makeshift memorial for two fallen officers in brooklyn. this is the very sight where liu and ramos were killed by the gunman. at a new's conference yesterday mayor de blasio said attacks on police will not be tolerated. >> the attack on these two officers and assassination of the officers was an attack on the city of new york as a whole and on our values and democracy

and we cannot tolerate such attacks and anyone with the ability to help us stop them must step forward. >> reporter: at that very same now's conference. brinsley attended an antipolice rally and video of that event was found on the shooter's cell phone. not all groups will honor the mayor's request to stop the protest until after the funerals and the police commissioner billiam bratton is describing that as unfortunate. and the funerals for officer ramos is on saturday and officer liu's funeral is incomplete. his window thanked the city for support and reached out to the the family of the other slain officer. >> we would like to express our

condolence to the officer's family. this is a difficult time for both of our families. but we will stand together and get through this together. >> reporter: new yorkers and those beyond have opened up their hearts to the two families and now wallets are being opened. the tower's foundation announced that it is going to assume all mortgage payments for the families of the two fallen officers. the foundation is dedicated to helping first responders in need. heather? >> that organization does so much good work her in the new york area. david miller thank you. several potential presidential candidates are testing the waters this year and now national journal is looking

at the winners and losers of 2014. jeb bush comes out a winner by announcing a potential run early and setting the tone for other republican candidates. and while hillary clinton remains the clear front runner on democrats, she lost ground on her favorablity rating after reentering the political fray. we'll bring in bob can you sack. starting on the republican side. is jeb bush the number one contender right now? >> i think so. he is a top tier candidate and him getting in earlier boxed in marco rubio and rubio has not said whether he will get in but the donors are certainly lining up behind jeb bush. rand paul had a good year, he is a top tier candidate and a year ago, he wasn't. jeb bush's move put pressure on

hillary clinton. democrats are getting restless. i think she will get in. and watch elizabeth warren. she has said repeatedly she will not run. that is what president obama said before he changed his mind. she is the number one threat to hillary clinton on the left. >> the mag zone said hillary clinton is not doing as well as a candidate as a year ago, do you agree? >> you can look at it two ways. she's way up in the polls in the democrats but they are in the high 40s and not 50 percent. you have half of the democrats surveyed in the polls picking someone else. but at the same time she is lapping the field and we have a long way to go and the number one concern for hillary clinton is iowa. she finished third there last time in 2008 and she wants to win that and that is the liberal of the liberal voting and that's

why it is tough for her in the past and if warren gets in, that is the state to watch. >> what about jim webb and martin omolly. >> you never know. webb is an interesting wild card. he could go after hillary clinton on her foefrn policy experience. but the issue with webb is his fund-raising. he will not raise the money to take on hillary clinton and beat her. >> martin omaly, his lieutenant governor didn't win? >> no, that was a stunning results from the election. that was a huge win by double-digits and that hurt

o'malloy. he sees weakness in hillary clinton. but they are not backing the prominent democrat. that is a problem for o'malloy. >> chris christie's star has been tarnished even by the george washington bridge scandal and the official investigation said he didn't have going to do with that. >> i disagree with that assertion, certainly the year did not start out in a good way for chris christie. but the other shoehas not dropped in the bridge scandal. he's had a nice come back. he is head of the republican association and they did well on election night. christie is doing well going in 2015. and we have less than two years to go until that election and two years until the next president takes office. we'll watch it with you. >> it goes by quickly. >> it does. i was writing checks 2016.

i thought we had jumped two years ahead. >> you can pay all of your bills. and bombshell on the irs targeting group. the investigation by house republicans undercovering scores of documents and revealing evidence of bias and politics in the irs. conservative groups linked it to the the scandal but failed to link it to the white house. mike, why is this coming out now? >> it is the end of the congress and they compiled the report on 1.3 million pages of documents and a june 2012 e-mail from deputy commissioner stephen miller to his chief of staff. he told them about the irs targets of conservative groups. i wonder if i should do the hearing and use it to put a stake in politics in c4?

over sight committee staffers note he testified but never revealed what he knew. there is a progress report on the irs targeting. >> it was in fact all the way to the top of the commissioner level that this was allowed to it continue. and i think that gives a good reason for the next kong to continue the investigation until they have looked at all of the documents and put in the reforms to make sure it never happens again. >> reporter: the top democrat is not impressed. it is revealed that the republicans are leaking cherry picked documents to support the political narrative without allowing the committee members to see their conclusions or vote on them first. the irs was cut 45 million in the budget deal that congress passed last week. the agencies warning that they may need to furlough employees.

>> the irs has gone through cuts that have gotten in to beyond the fat and into the bone. >> what the republicans got the president to sign and the democrats in the september to agree to is a roll back of the irs' budget to 2008 levels. if there was not an irs in 2008 and couldn't do things, they are in trouble. >> reporter: the agencies a easy target up on capitol hill. >> thank you, motorcycle emmanuel. thank you so much in washington. >> well, more u.s. troops on the way to iraq. the pentagon said 1300 troops will be deployed next month. part of the noncom bat forces training iraq's military to battle isis' terrorist. jennifer griffin is live from the pentagon with more on that deployment, jennifer. >> reporter: jon, for the ninth

time since 22003. the new year will be marked by deployment to iraq. most of them are based in fort bragg, north carolina. ntheir mission will be to train, advise and assist iraqi security forces. this deployment is part of the additional 1500 troops that the the president authorized in november. >> reporter: the u.s. strategy is relying on air strikes like this one from december 18th that targeted a vehicle born ied. and there are currently 1860 u.s. troops in iraq. the new deployment announced by the pentagon will double that number. >> there is a weak plan and they need more forces to assist those indigenous forces. and we are are going at that

incrementally. and that is the pattern we have seen before. >> reporter: after the u.s. relaunched the military, there are yazidis still trapped on mount singjar. there are 20 yazidis girls that escaped from isis captivity. torteur and rape and sexual violence suffered by girls of the yazidis minority and the group called the islamic state highlights the savagery of is sis rule. 300 u.s. troops arrived in the base and brought with them tanks and armorred vehicles and rocket launchers. the pentagon said the u.s. troops from the 82 air-borne will not be engaged in combat. >> but they have the combat material it would seem.

>> a reminder to all of our forces that are serving overseas how far away from home. and thank you for all of you for what you do. we got word in sony pictures have given the go ahead to show the movie "the interview" it will be screened in a now hundred independent theaters. and one movie tweeted hash tag victory. the interview is a comedy about two journalist hired to assassinate north korea leader kim jong-un. and the nation's largest movie chains decided not to show the movie. and sony confirming that it will allow the release of that movie in independent theaters. that is good news. >> score one for freedom and fro speech. >> for sure. >> millions of people signing up for obama care next year.

it only works because the federal government helps them pay for it. now the subsidies are in question and the supreme court will make the call. >> and when and where your travel plans will be affected. . because i make the best chicken noodle soup. for every way you make chicken noodle soup, make it delicious with swanson®.

>> right now, the u.s. supreme court setting the date for the next skirmish over obama care. the justices will hear the arguments on march 4th, 2015, on

the legality of the subsidies on in states that did not set up exchanges. they help low and middle income families to buy their health insurance. we have tim obrian here. first out with what the crux it of the argument before the supreme court. >> although the case seems complicated it is simple. the tax subsidies go to taxpayers who buy insurance with a exchange by the state. 34 states have not established it and so how can there be subsidies. on the other hand said it would make no sense, it was a drafting error and a provision in the law that said if the state does the not set up the exchange the department of health and human services set up

a exchange. and in a way, it is a familiar issue for the supreme court trying to bind what a law said and what congress meant. the court will say there is a mrausible basis for the law we'll go with that. here there is a plausible basis. >> i want to put up key words for viewers to understand what is the question at hand. through an exchange provided by the state. and that is essentially what will be argued here before the supreme court. the federal government intended to pay subsidies for everyone in the country that qualified in the subsidies and those on the other side said that language was not in the law. from your point of view, how closely does the supreme court follow the exact letter of the

law? >> it depends. when you have a conflict as you do here. there are contradictions in the law, and customary for the court to look at the agency charged with implementing the law. and the internal revenue service said it does apply to everybody. when you have a case this tough and this close and strong arguments on both sides, don't just look at the law but the justices, look at the justices who voted a few years ago to find that law unconstitutional. i would expect them to be against this. would there be a fifth to throw it out. >> what does that mean for obama if they don't find for it. >> millions of americans will lose insurance and subsidies will go away and result in chaos. congress could fix the problem. but will not be ruled on until

late june. and it will be controlled by the republicans. and so any law that comes out of that and compromise will have a republican touch on it. and i expect that congress might hold that decision and say it is release man dates three months for states to set up their exchanges tlchl is no getting around it. it will be messy and the political debate will pick up with finger pointing. >> the supreme court picking it up in early march and hopefully things will get more simple rather than complicated. tim, thank you so much. >> well, a manhunt under way for a terrorism suspect. there is a 5 million bounty on his head, but he used to be be in american custody at gitmo. we'll tell you why he is free. and plus, new concerns over lone

wolf terror attacks in europe after three separate incidents leave people there rattled.

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>> and the justice department is offering up a 5 million reward for the capture of a former guantanamo bay prisoner that rejoined al-qaeda. he was held in gitmo in 2002 and transferred out in 2006 and and he completed a rehabilitation program in saudi arabia and now a top leader in the al-qaeda branch in yemen. >> the government of france is urging calm after a series of attacks left people hurt. witnesses say in each of the instances, the alleged attackers yelled allah ak bar and god is great. and french officials denying that the attacks are linked to terrorism. ryan, what is going on here?

>> basically france is in jihad denial. yes they have mental instability but that doesn't mean. >> that's what the french officials are saying? >> these people are crazy and so there is not a ton of significance behind. it not every person showed allah ak bar and rams their car in a crowd of civilians. the islamist ideology and concept of jihad was at play even if they were mentally unstable. it helped to shape that. >> australia tried to highlight the mental illness and down play the association with radical fundmentalist groups. is it a politically correct thing that the government is trying to do to stay politically correct and keep people calm? >> it is also comforting. and they are trying to ta narrow

do you know what qualifies as terrorism. terrorist groups don't have membership cards. you believe in the ideology and you adopt it and act accordingly. >> what happened in france is what happened in israel. hams encouraging attacks and they were encouraging palestinian to go out and run down israelis in the cars and trungs. we saw cartoons that encouraged that to happen. >> and this concept of a hit and run jihad is not new. most americans are used to hearing about the bombs going off and hijacking. it can be simple as ramming civilians. and they don't care so much about the spectacular terrorist attack. if they can do it, they will do it. >> i want to ask you about

afghanistan. there were reports about the province that is relatively stable and now the taliban is gaining strong strength there and why the significance? >> it is bad nows when the taliban gains everywhere. it is a frightening foreshadowing of what will happen in afghanistan. and i think you will see isis pop up there. and in the pessimistic new york times report, afghan police and military are holding the it could back and for me, it is better to have the afghans fight with limited success than having us to do it for them. >> fair enough point and nice to bring out both sides. thank you for your expertise, jon? >> as the christmas travel rush gets underway. a baggage handler gets busted. what he was putting on board planes and avoiding detection. a live report on that next.

>> former patriot aaron hernandez. the judge is not allowing legal evident in the trial. our legal panel weighs in on that. ♪soft holiday music ]♪

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for a free quote today,call liberty mutual insurance at see car insurance in a whole new light. liberty mutual insurance. >> this guy was helping to transport more than luggage. a baggage handler working in atlanta international airport is facing federal charges over his role in a stunning trafficking ring. he was smuggling guns on commercial jets. johnathon how did he do it? >> reporter: it started with the nypd and between the state and federal investigations, we know that two men were charged with the operation of smuggling

weapons to new york from atlanta. eugene harvey would use the delta id to bypass on days he was not on duty. harvey would meet in a passenger men's room with a former delta baggage handler. henrow would travel on to new york using a complimentary buddy pass. and the federal authorities said henry supplied hand gups and roifls to an undercover nypd officer. they found 18 additional guns in his back pack. delta is cooperating and take seriously any activity that doesn't up hold the commitment to it our customers and employees. harvey is suspending pending

determination from his job and after they arrested the other defendant. delta fires him in 2010 for allegedly a pucing the buddy pass system, heather? >> that guy broke so many laws in doing that. thank you for bringing it to us. >> nfl star aaron hernandez back in court for a pretile hearing. prosecutor trying to submit evidence they want to use. the judge ruled that the prosecutor can't talk about the other killings. or the final text message from odom lloyd. lloyd was fatally shot near hernandez home in june 2013. he pled not guilty. the murder trial is expected to take 12 weeks. we have doug and aiss.

and let's talk about the text messages, first. the prosecutions said these show that odon lloyd was in the car with hernandez and starting to get scared. you saw who i am with and wrote a second one. inform envelope indicating hernandez. the judge said they can't come in to it evidence. why? >> the judge ruled against it because of hear say. i it is not hear say because the victim is not available. he can't testify. he's dead. and so the only thing you have is a text message and put that on the stand and bring the sister on the stand. you can't keep it out because someone is dead. >> what is the legal rational. >> it is out of court statement by someone who available.

>> but he is deceased. most jurisdiction and the federal courts would clearly allow this it in on under what you call state of mind. but apparently in massachusetts, they really don't have that efdiary aspect. >> but the problem is, a fundmental problem with that. you can cloak it in hear say. but it can't be hear say or be allowed to be hear say because the victim is unavailable to testify. why? the defendant allegedly killed him. >> it is being offered in a standard for the truth of the matter asserted and meaning that he was in fact with hernandez. sometimes there are statements offered not only for the truth but the purpose. >> the judge is being very causes. >> appellate reasons.

>> he has a back up case behind. this he is in a heap of trouble because he has this trial and indicted in two other killings. >> that evidence will not be allowed in. and prosecutors said odon lloyd might have been killed because he knew something about the other murders. >> you bring that for motivation and the prosecutor doesn't have to show motivation but it helps their case. the judge is just worried about the appellate record, i get it but i don't understand why it would not be allowed in? >> i agree with you. and i think yours is better than the judge. there is a link. if he eliminated it is all one thing. and my background is federal. for not charging a conspiracy. it is all one situation. >> all of the killings happen in

two different counties. but again, if they charged conspiracy and said the second killing was linked to the first. >> those are two guys shot to death in their car outside of a boston night club and seen with hernandez that night it is my happening. and their deaths were a mystery until after odon lloyd was killed and then police are looking for a ballistic match. >> right. that's what the prosecutor should have done. it is a giant conspiracy and yes, two different counties but part of one conspiracy. >> the fact of another county shouldn't matter. >> a 6 or 10 week trial. >> and the celebrity dynamic, it is going to be interesting on the way it plays out. >> the judge was playing it very safe. >> thanks, you may want to hold off on the second cup of coffee. there is million of the single

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i am gretchen calcon. sony is decided to show the movie despite the cyber attack. and calling for mayor de blasio to resign. and should president obama address the murder of two police officers as hoo did with the brown death. >> wanting to it get back 40 or 60 percent of your time in one day? we'll reveal one tip to help you do that all in the top of the hour. >> most of us like our coffee hot but this might be a little much. curreg. and it is like one sewn here over reports of causing serious burns. the device can overheat. more than 200 people have suffered some kind of injuries.

more details on the, keurig website. >> did spite the fact that christmas is less than 40 hours away. we have a senior editor. >> there is a lot of great deals to be head especially winter apparel and toys and beauty. and those four categories you will find deep discounts. >> people are spending a lot on shipping. and any ways around that. >> and survey found that over 20 percent of people have been paying for expedited shipping. buy on line and pick up in store and you can do that at staples and at walmart and so that is a great way to get around those shipping fees. >> i can pick out a computer,

for example, and like cruising around walmart and picking up that item. order on line. even now it is not too late to do that. >> pick it up at your convenience in the store hours and the other thing to recommend this late in the game are gift cards. you can buy them from almost anything remailer and they don't have to worry that it may not arrive in time. >> a lot of people love gift cards and i feel get, and maybe we are not doing enough with the christmas gifts. >> it is a great point. gift cards lost their stigma. and now people love a little permission to it shop for themselves. they are popular these days and driving down the return rate. people love to shop for themselves. and same day deliveries.

>> and yeah, even now. and it is in mange be cities and that is important to be mindful of. amazon and bloomingdales and google express offer same day delivery. and shipping free on that it rafrms from $5 to 20. >> and same day dlefrty only in certain locations. if you don't have a bloomingdales they only do it in new york or where ever. >> it is popular and i wouldn't be surprised if spending on the country soon. >> we did for my son. he has so many toys, i said to his god mother. please don't buy him more toys. we came up with world vision and it is a christian based charity and you can buy as we did with my son a goat and two chickens

for a family overseas who needs the food in and my son loved it. >> i love world vision and they have gifts that you can buy that give back and they have gifts like fruit trees and they will give back to the community. and for kids that are loaded down with toys. that is a great thing. >> my five-year-old said i own those goats and chickens? he loved it still. and it meant a lot to me and his god mother to do. that >> it is a great lesson. and christmas is about doing things for other people. thank you so much for coming in and merry christmas and happy holidays. >> good reminder of how blessed we are in this country. >> and christmas is coming early

for wall street. it is up 117 points and over 18000 for the first time and talk about rolling out the red carpet. celebrating the start of a new commercial airliner with anairial stunt show. often enough, but thank you. thank you mom for protecting my future. thank you for being my hero and my dad. military families are uniquely thankful for many things, the legacy of usaa auto insurance could be one of them. if you're a current or former military member or their family, get an auto insurance quote and see why 92% of our members plan to stay for life. [ male announcer ] the rhythm of life. [ whistle blowing ] where do you hear that beat? campbell's healthy request soup lets you hear it in your heart. [ basketball bouncing ] heart healthy.

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make the best entertainment part of your holidays. catch all the hottest handpicked titles on the winter watchlist, only with xfinity from comcast. a fox news alert. republican congressman michael grim, the former fbi agent and former marine has pleaded guilty to tax evasion charges in a new york courtroom. he faces a charge of up to 36 months in prison. if convicted on all of the charges, he could have faced 20 years. this is apparently a plea deal

with prosecutors. michael grimm is the guy who was caught on camera threatening to toss a reporter off a balcony in the capitol. he represents part of staten island and part of brooklyn. not clear what his political future is. it's doubtful he can remain in congress after pleading to tax evasion. he apparently hid about $1 million worth of income from a restaurant he used to own in new york before he served in congress. michael grimm pleads guilty. faces a sentence of up to 36 months in prison. commercial airliners, you know the kind you board to fly to meet grandmother, are not supposed to have the maneuverability of a fighter jet, but don't tell that to these pilots at airbus. they took to the skies with their brand new a-350s in formation performing some amazing stunts during the process. take a look.

>> three, two, one. >> it's all part of airbus celebration of the first commercial delivery of the new a-350. the company says it already has orders to build more than 7,000 of them for airlines around the globe, but if you get on board one, you probably won't see another one off your wing tip. >> hopefully not. >> like these guys. >> those look awfully close together. does it make me nervous when i see a fighter jet los to another one? that does have -- how close together are those, do you think? >> i would think 50, 100 feet. something like that. >> is that safe for a plane like that? can they quickly turn on a dime if something goes wrong? >> all of these pilots, you know, talked about their maneuvers. a lot of these guys are ex-military anyway, and they're used to doing this kind of thing. you just don't normally do it with a passenger jet. no passengers on board, though. point that out. i'm sure they'll be keeping that video for a long, long time. >> you're a little jealous. >> let's talk about the markets today. they're flying high. the highest ever with the dow

jones. crossing 18,000 for the first time. the data indicating our economy is growing like gang busters. joining us from our fox business network is nicole, and she can explain it all. hey there, nicole. >> hey there. good afternoon, everybody. exciting time to see the dow crossing that 18,000 mark. it does mean one thing, and that is that the market continues to go higher and set record after record. not only did the dow hit a high, but also the s&p 500 hit a record high once again, and the nasdaq moved to the highest level since 2000. we did get in good economic news, and that was about gdp growth, basically showing the u.s. expansion at 5%. that's the best that we have seen in the same time period in 11 years. ultimately showing good news for growth. that's business spending, consumer spending, and that shows great news. what's helped the dow this year, some of the names that have led the dow. intel, united health care,

microsoft. those are some of the best performers this year. intel up 45%. united health up about 36%. disney, 26%. some other stellar performers, names you know well, jetblue, up almost tesla, facebook, and apple more than 40% each. the reason at least some of the traders would tell you, one of the reasons is low gasoline prices. better fundamentals for businesses that you see them growing, and, of course, a very accommodative fed keeping the interest rates low after they just finished the bond buying program. still accommodative fed. with all that, we're seeing dow, 18,000. remember the dow 10,000 happened in late 1999, but i want to just show you, dow 15,000, 18,000, and some of the guys think it's going to 20,000. i'm not jinxing it, but they do have the hats here to celebrate each milestone. back to you. >> all right. i do remember in the late 1990s juan williams saying i predict the dow is going to go above 10,000. >> here we are. great for the 401ks and ira's.

>> don't miss nicole on our sister network. if you're not sure to find box box, log on to fox business/chabl finder. >> i saw firsthand the lava flows off the big island of hawaii that are threatening a small town there. plus, a christmas tree that will put you to shame. it is dancing along with the music. see and hear how this tree became an on-line sensation. you total your brand new car. nobody's hurt,but there will still be pain. it comes when your insurance company says they'll only pay

three-quarters of what it takes to replace it. what are you supposed to do, drive three-quarters of a car? now if you had a liberty mutual new car replacement, you'd get your whole car back. i guess they don't want you driving around on three wheels. smart. new car replacement is just one of the features that come standard with a base liberty mutual policy. and for drivers with accident forgivness,rates won't go up due to your first accident. learn more by calling switch to liberty mutual and you can save up to $423. for a free quote today,call liberty mutual insurance at see car insurance in a whole new light. liberty mutual insurance.

zimplt a christmas tree in a minnesota home going viral. getting more than a million hits on youtube. take a look. ♪ >> well, the couple outside minneapolis, minnesota, syncing the lights to popular songs like taylor swift's "shake it off." the couple says this has been a long-time family tradition. the dad is a computer engineer, so that's how he got to be so good at that. >> that explains it. nice-looking tree. all right. we told you yesterday i would show you some pictures of the volcano while i was in hawaii last week on the big island. i rented a small plane, and look at this. this is the culdera. you can see the lava there that's boiling on the surface. this is up at the top of the

volcano basically. a few thousand feet up. this is the one that's causing all the problem. this is a vent to lower down the that's dropping lava down on to the town. >> oh, my xwosh. we've covered that story here. >> this is you flying? are you also shooting the video at the same time? >> i was. yeah. >> is that safe? >> i think so. >> is that safe? >> amazing pictures, though. >> we'll show you more some other time. >> everybody, have a great day. the real story starts right now. we start with the fox news alert because sony pictures now deciding on a limited christmas day release of the movie "the interview." i'm gretchen carlson. we're here to give you the real story. after pressures even from the president who said the entertainment company made a mistake to not show the movie, the alamo theater chain in texas tweeting, "sony has authorized screenings of "the interview" christmas day.