revealing a sponge bob pendant stuck in a toddler's throat in saudi arabia. they removed it and the boy is fine but it probably wasn't his best day ever i'm going to guess. >> that kid is watching too much sponge bob. >> sponge bob is brilliant. see you later, everybody. "happening now" starts right now. jon: a fox news alert, digging out and trying to stay warm. that monster blizzard dropping up to three feet of snow in some areas of new england. hope you're having a good morning. i'm jon scott. heather: and i'm in for jenna lee. welcome to "happening now." thousands of homes and businesses are in the dark including the whole island of nantucket. a few miles down the coast from boston, the blizzard washed out a section of seawall flooding one neighborhood. that breach in the town of marshfield just west of cape cod and now more snow could be on the way, though not as much as what is already on the ground.

across massachusetts, maine and other northeastern states so let's get the very latest right now from david lee miller. we saw you driving on the way this morning on fox and friends first. you managed to get there. you were in marshfield massachusetts, correct? >> that is correct. and the locals will tell you, heather, marshfield is famous for its lobsters. now it's famous for something else. take a look. it's famous for having lobster traps in the middle of the town. about a dozen of these traps were marched inland by the massive blizzard from which the community is still recovering. there was serious damage to about a dozen homes that are here along the oceanfront. we have some video that explains why the damage is so severe a seawall was not only breached but the force of the water actually broke chunks of the concrete and you can see this not just on the videotape but

you can see the force of the water and what it caused on some of the still shots that are tight shots of the seawall or what's left of it. damage very, very serious. it makes this community much more vulnerable to further damage -- i should say when another storm takes place. that said heather, over my shoulder, take a look at one of the homes that experienced a great deal of the damage. we talked to the homeowner here. he's lucky, he says to be alive. he was hit in the face by flying debris at 4:30 in the morning when the sea water during the high tide burst into his home. he described some of the damage caused to his home. >> it's wiped out. it's a loss 100%. i mean all the lower walls are caved in and stuff so i don't

know what the next step is. i just don't know. >> and many in this community still do not have power. there are utility crews here working as fast as they can but the job they face is a difficult one. we do expect that the governor is going to visit this community in the next few hours and lastly recovery efforts continue at local airports. logan airport in boston is gradually getting up to speed. flights are resuming but they do not expect regular full service to begin until tomorrow. throughout the day there are have been a number much cancellations. in the new york area la guardia, more than 150 cancellations. j.f.k. more than 100 and newark, 70 cancellations. this recovery effort taking place, heather, as boston prepares for, shall i say, another storm. they are expecting up to six

inches of more snow at the end of the week. heather? >> yeah. let's hope maybe maybe it passes them by this time. david lee, thank you. >> a busy day ahead on capitol hill with two big hearings underway now on the nation's top law enforcement officer and how we spend our tax dollars. doug is the director of the congressional budget office, testifying on the budget and economic outlook but -- plus senators get their first look at loretta lynch. she laid out her vision. listen. >> should i be confirmed as attorney general, my highest priorities will continue to be to ensure the safety of all of our citizens to protect the most vulnerable among us from crime and abuse and to strengthen the vital relationships between america's brave law enforcement officers and the communities they are entrusted to serve. >> let's bring in tom, the

executive editor of real clear politics. loretta lynch would replace eric holder assuming she's confirmed. is she holder 2.0 or something completely different? >> well she's going to present herself most definitely not as holder 2.0. she mentioned that in her statement and look. she's going to try to carefully thread the needle on some of these issues. the republicans, they despise eric holder. most recently over the obama executive action on i mean grapgs. loretta lynch will defend obama's position but i think she's going to go out of her way to impart to the senators that she is definitely not eric holder 2.0. she's her own person and i think that's why she'll ultimately win confirmation, i think. >> republicans have to be a little careful. they can't be seen as beating

her up just because she is the president's nominee. i mean they're going to probe her for any weaknesses that they think she might have. they're going to try to get some ideas on her view of her role as attorney general but they can't be seen as beating her up, right? >> right. she's going to face tough questions but i think it won't appear as bullying or you know, too tough on her. and that's why we've already had a couple of republicans who sits on the committee who said he's not going to vote for her and others have said they've -- they're looking at red flags but ultimately, i haven't gotten any indication from anything i've seen or red or heard that her nomination is in any jeopardy. she'll face some tough questions and i think carefully thread the needles and give answers that will win her confirmation without alienating the administration or making headlines that will present bad news for the obama administration. >> for the senators, this brings up an opportunity to make the

points about eric holder's stewardship of the justice department they don't like. >> right. they have -- as you know jon republicans really have been at odds withhold -- with holder. they want to impart to this nominee those frustrations they have with the previous attorney general and sort of lay down the markers, if you will so that they can perhaps move forward with a new nominee, a new attorney general on a better footing. jon: so the other hearing we were talking about the head of the congressional budget office talks about -- is going to be talking about the economic outlook for the country. what are we expecting to hear from him? >> well it's a go aheadod news/bad news thing. they project that unemployment

is going to continue to decrease in the coming years. they've also projected, i think, 12 million fewer americans are uninsured which they attribute to the affordable care act. that's good news that the administration is touting and democrats will point out. the bad news which republicans will highlight is the fact that after about 2017, deficit starts to go back up significantly into the foreseeable future and republicans will point out that despite this dip in the deficit, there's still structural issues out there regarding entitlement reform and that need to be addressed and that this president hasn't done that. so both sides are going to have something in this report to highlight and to make their case. jon: and the obama administration is looking to spend more money, right? budget increase? >> right. president is going to submit his new budget to the republican controlled congress next week and we already have indications that he's going to be seeking about a 7% overall budget increase including increases for some defense spending for

some health care related stuff so it's teeing up a big fight with this incoming republican congress starting next week. jon: and one fight administration has apparently backed off on with a plan to tax those 529 college savings plans that have been tax-free in their current setup, the president was going to boost taxes on those. he decided to back off of that after getting feedback from democrats. thank you. >> thanks, jon. heather: new attorney general not the only change coming to the president's cabinet. confirmation hearing for defense secretary nominee ashton carter is set for next week. now, carter would replace chuck hagel amid tensions between the white house and the pentagon over some key national security issues like the threats of isis and other terror groups. kevin corke is live at the white house with more on this.

hi kevin. >> heather, good day to you. without a question, ashe carter will be facing criticism. especially regarding their foreign policy has simply not been directed in a way that the pentagon has felt like would have been successful. and when carter faces the music, he will no doubt face very tough questions about how he might turn things around and that's from yemen and iraq and syria afghanistan. there are so many hot spots right now in the middle east and the real question becomes, how might he turn things around? as i mentioned a steady stream of criticism from military leaders like jack keen. they're saying with no coherent plan from the white house white house by the way that simply refuses to identify the enemy, the pentagon will simply keep lurching from crisis to crisis. >> the danger is we're going to see increased domination of countries by radical islam and they will export that out of the

region to hurt kill people in europe who are sympathizing with their geo political views as well as the united states. >> if confirmed, carter would be tasked with the strategic operational and overall trabs -- transformation of a pentagon with sweeping changes home and abroad. we don't know how much he won't get done. in the last couple of years he's with the obama administration so he has his work cut out and tough questions will be coming. heather: thank you, kevin. >> you bet. jon: jordan agrees to meet demands much isis and release an iraqi woman held on death row in exchange for a pilot. a new video is threatening lives of the pilot and japanese journalist if the convicted female terrorist is not set free. greg joins us live from our london bureau with more on all of this. greg? >> jon, it is about two hours

past a deadline set by isis for this alleged prisoner swap. we've been on the phone to officials in jordan and still no word about any actions on this. now, the terror group isis said the japanese journalist and jordanian air force pilot, both prisoners of the group, would be executed by 9:00 a.m. eastern time today, according to one reckoning, if the jordanian government did not release the woman who is convicted and sentenced to death for her role in suicide bombings in 2005 of aman jordan hotels. that attack, that spree of attacks left 60 people dead, including four americans. her bomb belt just didn't go off. she's said to have been closer with the former and now dead boss of al qaeda in iraq. and yes jordan did announce earlier today that it would release her in exchange for their pilot.

his plane went down over isis held syria last month. there was no mention in that announcement of the japanese journalist which is why his family and friends continue to press the japanese government for the release of goto. he's been held captive since october. he was in syria to try to rescue another japanese man who was held by isis. he apparently was executed beheaded last week. now, isis had been demanding 200 million dollars for the release of those two japanese hostages. nobody was biting on that demand. now they seem to be taking a new tact and the people privy to what is going on say this could be if the prisoner swap goes through, a very dangerous precedent set with a very dangerous group. back to you. jon: greg keep an eye on it for us. thanks. minutes from now, we'll talk with a guest who says the release of this iraqi prisoner would be seen as a major victory for the isis terrorist group.

that's coming up. heather: also tensions are high in israel as a new round of clashes take place along its borders. militant group claiming responsibility for the death of israeli soldiers plus a big heist at wells fargo with a band that's using an s.u.v. to crash into the building but they weren't after the cash. and we want to hear from you. how important are tax benefits? you heard jon talking about that, like the 529 college savings plans. how important is that to you? our live chat is up and running. just go to fox news.com/happening now and click on america's asking to join the conversation.

i know... this third shift is rough... it's just a few more weeks max! what are you doing up? it's late. i just wanted to have breakast wih you.

right! now you're gonna ask for my credit card - - so you can charge me on the down low two weeks later look, credit karma - are you talking to websites again? this website says 'free credit scores'. oh. credit karma! yeah, it's really free. look, you don't even have to put in your credit card information. what?! credit karma. really free credit scores. really. free. i could talk to you all day. jon: right now some crime stories we're following. a modern day gold heist in san francisco and an s.u.v. crashes into a wells fargo museum in the heart of the city financial district and the bandits make off with gold nuggets from a display case.

gold has an estimated value of $50,000. surveillance video not the only big clue from this convenience store robbery in michigan. that's because one of the suspects left his wallet on the store's counter and with that police were able to track him and his partner down. back in california the hunt still on for the suspect wanted in the laundromat robberies in two different towns. man seen on surveillance tape prying over washington machine boxes and then stealing money inside. heather: lebanese group hezbollah is claiming responsibility for a deadly attack on an israeli military convoy killing two soldiers. israel responding with artillery fire across its northern border. john is joining us from jerusalem with more on this. john? >> well, heather, the idea of israeli military israeli defense forces confirms an anti-tank missile was fired at

one of the vehicles along the border with lebanon early this afternoon. take a look at some of this video. you can see the damage. one of the vehicles it appears, was really blown apart and it looks like others were damaged as well. israel mentioned it fired back at hezbollah positions in lebanon with heavy artillery fire. we're talking about cannons and air strikes from israeli fighter jets. i actually saw and heard some earlier today. it's unclear how many positions were hit and if there were any casualties in lebanon but the israeli military has confirmed that two of its soldiers were killed, seven others injured. wounded were airlifted to area hospitals. now, hezbollah claimed responsibility for today's attack saying it was retribution for israel attacks on one of the military convoys along the syrian borders last week. five hezbollah operatives were killed in that attack along with an iranian general and since

then both hezbollah and iran have been threatening to retaliate. yesterday four rockets were fired at israel. two landed on the syrian side of the border, two in israel but there are no damages or injuries. but there was question whether there was a deliberate act or stray fire from syria as has happened before. they thought today's attack may have been deliberate but i want to be clear, there's no confirmation of that and no group and no one has taken responsibility. that said, the israeli military remains on high alert along the borders with lebanon and syria in the heist and at this point, israel may not have fired its last bullet in this round after today's attack and heather, that may determine what happens next so tensions are high here in israel. heather? heather: we'll check back with you to see what happens. thank you. jon: as we told you a moment ago, isis is demanding the release of a convicted terrorist

or the group says it will kill two hostages. why even agreeing to negotiate a prisoner swap could be a victory for the islamic state. we'll talk to a guest that has that opinion and what should have been a routine police raid. officers want to know how two military tanks wound up in a warehouse full of stolen goods. push your enterprise and you can move the world. ♪ ♪ but to get from the old way to the new you'll need the right it infrastructure. from a partner who knows how to make your enterprise more agile, borderless and secure. hp helps business move on all the possibilities of today. and stay ready for everything that is still to come.

jon: police in brazil make a strange find while on the way to recover stolen goods. two military tanks found in a warehouse. officers turned the investigation over to the brazilian army which is looking into how the war tanks ended up there. the warehouse owner is under arrest but his family insists he bought the tanks legally.

unfortunately, police also recover hundreds of tv sets, car parts and a stolen tractor trailer along with the tanks. heather: jordan's government says that it is swiling to swap an iraqi women held on death row in exchange for jordanian pilot captured by isis last month. she was convicted in 2006 for her involvement in a 2005 terror attack that killed 60 people. joining us now is tom, the columnist at the national review and the daily telegraph and a fellow at the steamboat institute. thank you for joining us. >> great to be with you. heather: tell us what is the significance of this woman to this group and what will it mean, what signal will it send if this prisoner swap is successful? >> well, this lady is very important to isis because the group that she was associated with before, al qaeda in iraq which carried out the attacks in jordan that you mentioned, is

essentially the precursor organization to isis. it's the original one. so if they can bring her back to the islamic state now, you can expect -- in fact, you can guarantee she would take on a very, very important role a central role in the group's propaganda which is being so important in terms of their expansion around the world as we've seen in libya, in lebanon, jordan elsewhere, in europe now with the recent belgium arrests because it appeals to this notion of ordained organization that look, this woman was responsible for -- sister was responsible for the attack in jordan and we've brought her home and god's purpose for her was to lead the group forward. that ideology as much as it's hard for americans to care about freedom and justice to understand is central to how the group is able to operate effectively. heather: reportedly some attackers as she burst into the hotel lobby some witnesses say they were screaming, god is great, god is great. so it would tie into what you

were just mentioning. what do we know about this specific group? they're referred to as the tripoli province of the islamic state. >> yeah. essentially what this is is the expansion of the islamic state ideology through existing what the extremist groups the branch of sunni islam that a lot of organizations, isis al qaeda belong to and groups of individuals who have a profound hatred for the west and secular democracy see what's happening as the islamic state see the islamic state saying, listen. you can join us you can become part of the global state. just adopt our name. it's sort of rebranding and development of the effort around the world and again this is the group problem. what i always argued unless you address isis very aggressive until iraq and syria specifically, it continues to metastasize because it continues to say to people wow. if they're still surviving

fighting the united states they must have got on their side so i should join them. it spreads and spreads and stredz. heather: what about the precedent of negotiating with them? jordan seemingly willing to do this prisoner swap. the u.s. is their main ally. we oppose any sort of negotiations with terrorists. what type of precedent will this set if this, in fact happens? >> well look. i'm not going to criticize the jordanians if they want to bring the pilot back. the lieutenant who is the pilot who was shot down was, you know, serving courageously. but the problem is this is a very -- whenever you do this there is an inherent cost to it in the sense that the propaganda element we're talking about, the united states has done similar things. i think the broader issue, there can be no qualification is ransom payments that france and germany, for example, are happy to do. heather: originally the group asked for $200 million. >> exactly so those are debt payments to go to someone else but again, there is a cost to this so we always have to bear

in mind the kal lags of again, bringing someone home but at the same time probably enabling the group through that transfer again, to develop propaganda examine to continue that spread of terror as we were talking about. heather: also what does it mean for jordan's coalition to band together to fight isis? tom, thank you for joining us. we appreciate your insight into this. >> thank you. jon: the armed forces doing more with less after budget cuts. now military leaders say that approach will not work as they continue to try to fight against terror. also how apple's latest earnings report could affect your bottom line. we're live at the new york stock exchange on the day after the dow's big drop. the latest next. huh, fifteen minutes could save you fifteen percent or more on car insurance. everybody knows that. well, did you know you that former pro football player ickey woods will celebrate almost anything? unh-uh. number 44... whoooo! forty-four, that's me! get some cold cuts...

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>> a quick look at what is still to come on "happening now." a senate hearing over the budget on national defense. what our military leaders say they need to better protect the united states. and tiger woods is back in the headlines with a missing tooth. he is explaining how that happened. we are taking stock of the market after the dow dropped 300 points. right now it is up 23 points. about 14% to 17,411.

yesterday's slide was among the worries of a global slowdown. but today we have impressive earnings from some of the big markets. nicole is live from the u.s. stock market exchange. >> reporter: we dropped almost 300 yesterday and now the dow is up 27 points and some is because of bowing and technology. technology stocks are doing great today. we are seeing yahoo because they announced the tax free-spin-offs and apple apple apple is ruling the street selling over 75 million i-phones. they sold 34 i-phones on average every hour on the quarter. china says they are poised to

continue to grow abroad as well. they have been patience about raising the rates so we will wait and see what happens. >> don't miss our sister network and inyou are not sure if to find the fox business log on to foxbusiness.com/channelfinder. that powerful blizzard is moving out of the northeast leaving mountains of snow

buried cars, freezing cold homes and airline passengers cooling their heels and guess what? it isn't over. we are tracking a new storm now. >> reporter: that is right. we have another system that is going to be generally weak across most of the northeast on friday. but the exception is northern parts of new england. i want to share totals from the last system because it was powerful producing two feet in massachusetts, connecticut, new hampshire and in eastern long island less than a hundred miles east of new york city we saw more than two feet of snow. this is orient new york with 30 inches of snow small out there. the system is getting the northeast and we have lingering showers in maine but most is over and done with especially in terms of accumulation. you can see the snowshowers in

northern part of main where they saw two feet of snow. current temperatures for cleanup is told. single digits in boston and bangor maine, the current temperature is zero. here is a look at the computer model. by thursday night we will see the snow coming down across parts of the northeast and it will intensify and potentially produce more than six inches of snow. the potential for a foot of snow is there so winter watches have been issued. and further out in time early next week, there is another storm that could impact the northeast. we will keep you updated on those details. >> we should not put the shovel away yet? >> reporter: not yet. it looks very active in the northeast. the senate armed service

committee holding a hearing on the impact of military spending cuts ahead of the president's budget release. they are asking for more money over the growing concern in isis. heather is here with us. >> reporter: the senate is testifying before the committee about the grave threats of sequestration will have on the military. john mccain said this: >> many aircraft is too hold and our navy has too little ships. >> reporter: they are warning it will make difficult to conduct wars in the future. army chief warmed if it isn't repealed the active duty army will be cut by 150,000.

>> this is the most unsure i have seen the department in my 30 years of service. in the first gulf war has planes that were younger. we have 12 fleets of airplanes that qualify were antique license plates in the state virginia. we must modernized. >> reporter: flights into baghdad were curtailed after flights were fired at a commercial flight from the united emrites. a little girl on board was hit. and adam shift, a senator, is offering a bill to allow three

years to fight isis but bar united states ground troops. >> thank you. ups a apologizing to one family not pause the package was late but because of the delivery man's bad behavior. and jodi aries trial is over and she wasn't called to the stand. how will that affect the verdict verdict? we will have the family. joe conchaeddi aries

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presidential presidential candidate, said he is sorry for staying angry tea party members are making american sniper a hit. but why make it about politics and why are people on the left howling? >> and eighth graders demanding schools teach sexual consent. is this a good or bad thing? we will get into it. >> all that plus our hash tag one lucky guy. >> i have not sign american sniper yet. maybe this weekend >> if you need a buddy, i will go with you. >> it is good. new information on a case we have been following closely here on "happening now." the defense rest in the second penalty phase for jodi aries. aries was convicted two years ago of brutally killing her ex-boyfriend but the jury deadlocked on sentencing her to

death or life in prison so we had a second trial. we have two attorneys here and i said earlier in the program she is not going to testify. but that is in the open court phase of the trial. she actually did testify as a secret witness. she was on the stand for two days being questioned by her attorneys. the judge isn't going to three out that testimony. not like a juror could unring that bell anyway from her head but i am surprised the judge is allowing that to stand even though prosecution didn't get a chance to question her. >> i am surprised, too. when i was a former prosecutor and da i always had the chance to cross-examine. for this to happen in this case it is crazy. there is nothing more affective

than a powerful cross examine because you can expose the lies. i think juan martinez is going to face obsticals trying to get the death penalty. >> she is getting kid-glove treatment from her attorneys. she was able to trash, travis alexander, her late husband who she admitted murdering and establish a relationship with the jurors who decide whether she lives or dies and they didn't have to put up with any cross prosecution. >> in the second retrial in the death penalty phase the jury doesn't get a complete picture.

they don't hear what about the crime, the photographs, the bloody scene and all of the lies jodi aries carried out. they only get a snapshot. so as anna said it was important for juan martinez to come in and show she is a pathlogical liar and many inconsistency. and they will never get the death penalty conviction now. >> i wonder if this is just clever defense work ana, for jodi aries to get up there and her side said there was a secret witness who would not active if there were going to be reporters in the room. so they had the court officers

the lawyers, judge and jury and she talked two days. after reporters filled suit saying you cannot do that ex exclude us from the courtroom, and the court said okay but we are letting that stand. >> i would say that is amazing defense work if they could foresee the future. i think my the court not striking her testimony, juan martinez is having to put on a show that the defense's case was riddled with inconsistency. women don't generally get death. so juan martinez has a huge uphill battle in securing this sentencing and convincing all of the jurors she is worthy of getting sentenced to death.

>> do you agree john. >> no and another reason is in arizona you have to prove she acted in a depraved manner. and the forensic siexpert testified about her being a battered room and testified about alexander texting four women at once at one point 12 women at the same time trying to get sex. the jury has doubt now she acted in such a manner. she will not get the death penalty. >> she could get live or 25 years for life which allows for parole. we will let our viewers know what happens for sure. thank you both. still to come, a ups driver is out of the job after a homeowner catches his bad behavior on camera.

what the driver is accused of doing while delivering a package. plus taylor swift back in control of her social media accounts after they were hacked. what hackers are threatening to do and what the pop star has to say about it.

>> ups has fired one of their drivers an a houston home captured the driver's bad behavior on video. you can see the driver throw the package over the gate. and then he apparently relieves himself on the side of the house. yes, the homeowner was tipped off after finding items in the box were damaged. ups has apologized to the

homeowner. we have the fox 411 on tiger woods who is finally explaining what is up the with the missing tooth. and taylor swift gets hack and the hackers say they have naked pictures and are ready to release them. let's get the latest from julie. tell me a woman isn't coming after taylor -- tiger. >> this isn't the smile we are used to seeing on the golfer. he said while in italy, a photographer was kneeling in front of him and stood up and clocked him in the chin. he said one tooth was chipped and the other was cracked and he had to wait until he got back to florida to get fixed. and he said the nightmare only grew worse because he had to fly back to florida with tremendous

pain and couldn't eat or drink on the plane. can you imagine going through all of this and not being able to drink? despite rumors the tooth story is made up he insist it is a true story. it was a photographer. not a woman. don't want to jump to conclusions. and another true story. someone hacked into taylor swift's twitter and instagram. the group sent out post asking for follows and threatened to send out naked photos. the hacks didn't last long. the tweets were deleted within 20 minutes and she posted this ps any hackers saying you have nudes, you would love that. have fun photo shopping because you have nothing. taylor has 51 million followers and 20 mill on instagram so it

was one of the higher breaching. they are taking it seriously sense many nude photos were taken from cell phones last year. i like the pssh. how do you say that? >> here is what we are working on for the second hour of "happening now." we are learning every day medications could increase the risk of dementia. pills you have in your house right now. and millions of people are insured through obama and now republicans are taking control at tossing the whole thing out. and three kids clucked from a burning home by a firefighter and it is all recorded by his helmet on camera and how important are tax benefits like the 529 college saving plans to you? we want to hear from you.

go to our website and click on america is asking to join the conversation.

heather: we will see you back here in an hour. jon: "outnumbered" begins right now. >> this is "outnumbered." i'm andrea tantaros. with us here today, harris faulkner host of brand new show on the fox business network "kennedy," kennedy is here. actress, stacy dash. concerned veterans for america and fox news contributor, pete hegseth is you'd numbered. we're both on a freedom tour. >> we are. i brought pizza hut today . >> you know the way to a woman's heart is through her stomach. you are officially