free beer for a parade, people are already going to be drinking. they don't need to be held. that's going to do it for us. >> thanks for being here. "outnumbered" starts right now. >> harris: fox news alert, wild day on wall street, the stock market is continuing to function at this hour with the dow attempting to regain some ground after record-setting dives. yesterday, it dropped by more than 1100 points. the longest single day slide in history for the dell wiping out all 2018 gains. we'll continue monitoring the markets and bring you a detailed update later an hour with my friend. another fox news alert here, the growing conflict in our nation's capital over two memos. in the house until committee voted unanimously now to release the democratic memo on fbi surveillance practices. democrats say it counters the g.o.p. version which came out last friday. now it's up to president trump to decide whether to allow its

release or not. this is "outnumbered." i'm harris faulkner. here today, cohost of after the bell from fox business, melissa francis. republican strategist and fox news contributor lisa boothe. former deputy spokesperson for the state department and fox news analyst, marie harf. joining us today on the center seat, senior judicial analyst judge andrew napolitano. an iconic laugh and perspective that we enjoy all the time. >> judge napolitano: pleasure to be here. >> harris: i mentioned that the dow and hell will break it down for later this hour. i can't wait to get your thoughts on it. >> melissa: this is because of growth. remember, no one is forecasting recession. it's because of good news. that's why the market went down. that's when one fought for you. >> harris: will wait another 20 minutes you get rest. >> judge napolitano: so now the market will be lower than it is. >> melissa: that's okay, don't worry about it. >> harris: president from now has five business days to decide what to do about that democratic memo on fbi surveillance. democrats rode as a rebuttal to the public and my mother came out last week.

they voted unanimously last week. had some concerns about what will happen next. it was hard for the republicans on our committee to block release of this. i am more concerned that they make political reactions, not reductions to protect sources and methods that's why we are going to insist that the department of justice and the fbi report to us on their reactions they think are necessary so we can segregate any political interference from the white house. >> harris: the white house says in a statement the democratic memo will be handled the same way the republican memo was handled. meanwhile, house until chairman devin nunes is defending the republican memo, blasting democrats this way. >> we have a clear link to russia. we have a campaign who hired a law firm, fusion gps, who hired a foreign agent who went and got information from the russians on the other campaign. this seems like the counterintelligence investigation should've been

opened up against the hillary clinton pain when they got a hold of the dossier. >> harris: chief congressional correspondent mike emanuel is on the help for us. >> that ten page classified memos being reviewed at the white house in the same fashion that the original republican memo was studied last week. it's up to president trump to determine over the next five days with her has objections to its release to the public. a source who has read the democrats memo tells my colleague john roberts that it is filled with sources and methods taken from the original document. that source tells roberts this was done tactically to force the white house into either denying release of the memo or significantly rejecting it. earlier, house speaker paul ryan made the case for transparency as possible. >> what you see here is republicans are letting all this information out there provided that we scrub for sources and methods. the republican memo was written to make sure that sources and methods were not compromised so that full disclosure could occur. we do not know whether that's the case for the democrat memo.

it has to go to that scrubbing process. >> top republicans on the intelligence panel, devin nunes and trey gowdy are acknowledging the fbi disclosed in a footnote there was political bias in its application to survey all former trump advisor carter page. nunes said a footnote something political is a far cry from telling the american people at democrats and the clinton campaign and paid for dirt that the fbi used to get a warrant on u.s. citizens and another campaign. he says he read the footnote but it took longer that way than just saying the clinton campaign and dnc paid for it. a key democrat waited earlier today on fox news america's newsroom. >> hours bolsters the crowd ability of the fbi to point outy actually did go through the cor. the voluminous amount of evidence was presented to the fisa court. they mischaracterized andrew mccabe's testimony to our committee. also, they did disclose to the court that there was a political motivation of one of the witnesses in a much larger

wreckage that was omitted. >> unanimous vote last night in the house intelligence committee may have surprised him democrats after they voted against releasing the devin nunes republican memo. >> harris: mike emanuel, thank you very much for setting it up with the facts. so adam should've said i hope it's redacted along political lines and not for anything that would expose our national security. why should there be anything like that in their? >> judge napolitano: there was a source and a method that was highly embarrassing to the fbi because it was on unlawful one. you have to read between the lines to see it. >> harris: where? >> judge napolitano: it's a three word phrase in a republican memo which refers to christopher steele as a longtime fbi asset. that violates an agreement between the american government and the british government not to recruit the agents of the other side. it occurred before 2009, it was espionage because he was a british spy at the same time he was american spy.

that phrase is what chris wray, the director of the fbi and rod rosenstein, the number two person in the doj, lobbied for week to get devin nunes to excise. just that three word phrase describing him. >> harris: why didn't he? >> judge napolitano: a longtime fbi asset, we don't know. congressman nunes has not been confronted with this but it's caused a major headache on both sides of the pond. so you see sources and methods can sometimes not be apparent to people. >> harris: all those attorneys looked at that? >> judge napolitano: without a background knowledge of it. >> harris: help with those attorneys look at that and not catch it? >> judge napolitano: they do it but i decided to keep it in there. the question is why? and i don't know the answer. >> melissa: can you ask devin nunes this question? that was for sure somebody colluding with the russians. it was the dnc as i hired fusion gps and they recruited a

russian agent to write the dossier. >> judge napolitano: that is a brilliant summary by devin nunes of why a bob mueller needs to expand his investigation to see of the influence of the russians not only came through donald trump's campaign but through mrs. clinton's campaign as well. for all we know, he's looking there and we don't know about it because his investigation. >> melissa: there isn't any question that it came from the russians. >> marie: can i just jump in for a second. it will not let the judge answer that one point. >> judge napolitano: of the was prepared by chris steele, former british mic. and he had russian sources. if you read the dossier, put a side of the salacious moscow hotel room part. the rest of it accuses then mr. donald trump of very, very, very serious money laundering involving russian mobsters in the kremlin officials. it's never been verified, it's never been vouched for by the

fbi, even though chris steele was an fbi asset who is being paid by the fbi at the time he was preparing this. >> melissa: so they may not be guilty of colluding with the russians because you may have been lying about the whole entire thing? >> judge napolitano: that's what i'm saying. >> marie: i think the difference is whether or not anything comes from it, trump campaign officials work with the russian government officials or officials went to the russian government in their attempts to meddle in our election. there's a difference in the intelligence world between having a sub source that may be a russian citizen and in terms of the collusion or conspiracy to collude, that may be illegal difference. but the bigger point here is that the fisa warrant, and we can debate whether isa should be in place or not. i know you have strong thoughts on that, there is no indication that the fisa warrant was gotten in any improper manner under current law. >> harris: even though it depended on something they knew

was paid for by the opposition political party? >> marie: there was multiple evidence in this. are you accusing the fisa judges of being a moral by saying this? >> harris: i'm saying in terms of what was brought to them, they didn't get to see the total picture. from talking about the process to get there. they didn't know who paid for it. they didn't know who paid for it. that's the morality were talking about. >> judge napolitano: you have a court that meets in secret and there's nobody there on the other side. as a result, there is no one to challenge these things. as a result of that, this court grants north of 99.9% of all applications i have never heard of a court that graham sat high a of applications. >> lisa: what i think the judge mentioned earlier is the underlying concern here is that the dossier is unverified and has not been corroborated.

andrew mccarthy has a right up in the national talking about how christopher steals sources are third and fourth hand accounts and even he himself in cases that have been brought against him said they can verify the sources that he used in the information that he used in his own dossier. i think that's the underlying concern and another big concern in all this as well is the fact that if hillary clinton had won, would we be talking about russian meddling? would adam schiff care about russian meddling and the election? with the speed being investigated by congress? with the media even care about all of this? i think if your answer is no, that in itself should be troubling for a lot of people. >> melissa: can president trump do this in 2018? can he go and higher fusion to go gather unverified, very bizarre evidence on someone that may or may not be true and then bring it to the fisa court and go listed on the other campaign?

>> harris: he's the president though. >> marie: but the fisa court -- >> harris: he is at the center of the republican memo and he was asked on laura ingraham show last night, what about the trip to russia which may have tipped some things into motion? he said this. >> i've got it. i think going to moscow in july july 2016, you're just setting yourself up for scrutiny. if someone in the trump campaign, did they okay you going? did you ask them? >> i give them a heads up. i said it's fine to go, but you have nothing to do with the trump campaign. we'll go for it. again, i was an informal, unpaid advisor. >> judge napolitano: two comments, lower is exactly correct and right on the mark grade you go to moscow, you brag about going to moscow, you're looking for a campaign at that time. he was not working at the time

the survey was started. trump's people had gotten rid of him. you're putting a big target on your back and he had to have known that. >> melissa: maybe he wanted to. to me, seems like he someone who wants attention. what he's talking about being an informal advisor to the kremlin and an informal advisor to president trump and he tells that he never texted, emailed, or ever spoke to president trump, talking about the classes he took. he smiling throughout all these interviews, seems like somebody was trying to draw a ton of attention to himself and may have had nothing to do with anybody. >> judge napolitano: for warrants on him, and the first based on the dossier and whatever nonsense they gave the fisa judge print the second is based on what they heard in the first period of the third is based on what they heard in the first of the second. the fourth is based on what they heard in the first three. so whatever they're listening to him saying, it's feeding their fbi and doj basis for getting another warrant when these have a shelf life of 90 days you are to renewing. >> harris: which is why i said yesterday no matter how redacted

it is, perhaps helpful for the american public to see evidence in all this and we'll see what happens. we continue watching the dow jones. we'll watch it now if they popped up on the screen. it's been a turbulent couple of days. >> judge napolitano: when we sat down here, it was down by 300 points 13 minutes ago. >> harris: is that what we are saying you back what we can expect from the markets in the economy overall we will talk about later this hour and a new report that president trump's attorneys have advised him now to reject a potential request for an in person interview with robert mueller's investigation of the russian contacts or any collusion with the campaign. the judge agreed with this, he doesn't want the president to sit down. will his president and the team comply? what will be the fallout if he doesn't sit down with mueller? [ click, keyboard clacking ]

[ click, keyboard clacking ] [ keyboard clacking ] [ click, keyboard clacking ] ♪ good questions lead to good answers. our advisors can help you find both. talk to one today and see why we're bullish on the future. yours. talk to one today and see why we're bullish on the future. let's team up to get the lady of the house back on her feet. and help her feel more strength and energy in just two weeks yaaay! the complete balanced nutrition of (great tasting) ensure with 9 grams of protein and 26 vitamins and minerals. ensure. always be you. we know that when you're spending time with the grandkids every minute counts. and you don't have time for a cracked windshield. that's why we show you exactly when we'll be there. saving you time, so you can keep saving the world. >> kids: ♪ safelite repair, safelite replace ♪

so we sent that sample i doff to ancestry. i was from ethnically. my ancestry dna results are that i am 26% nigerian. i am just trying to learn as much as i can about my culture. i put the gele on my head and i looked into the mirror and i was trying not to cry. because it's a hat, but it's like the most important hat i've ever owned. discover the story only your dna can tell. order your kit now at ancestrydna.com.

>> i'm looking forward to it actually. there is but no collusion whatsoever. there's no obstruction whatsoever.

and i'm looking forward to it. >> marie: that was president from two weeks ago seeming optimistic about a potential sitdown interview with special counsel robert mueller's team as part of its russia investigation. since then, trump -- fox news has reported that president trump's lawyers were leaning against the idea. they are where the president could get caught in a so-called perjury trap, now a new report they have advised the president to reject a possible request for sit down a special counsel. if did not interview, mueller could subpoena the president, testify before a grand jury prolonging the probe. the last time we were on the show together, you had mentioned that michael flynn, you believe he got caught in a perjury trap. do you think that president trump is subject to the same fate? >> judge napolitano: yes, i do. i think even more so. the president being diplomatic does not always use an economy of words and has strong opinions on so many things is likely to get in a q&a with his interrogators, might be bob

mueller or fbi agents, which will get him in trouble. so they could limit the scope of this conversation just one topic. but if the president's answer veers off that topic, then the question or ask about the answe answer. and the president is not always disciplined when it comes to answering. the standard advice is you don't talk to a guy who owns a grand jury and bob mueller has two. when he can take what you said that contradicted other things, presented to the grand jury, and get you indicted for lying to the fbi among which is what happened to papadopoulos and flynn. >> lisa: what option then does mueller have on the table to utilize? let's say president trump says i'm not going to sit down with you to the advice of counsel, then what does mueller do? >> judge napolitano: now it flips. now bob mueller want to interrogate the president because he wants to know what his thinking is. he also doesn't want to put the president before a grand jury without knowing what the president is going to say. so the president doesn't agree to the initial interview, will

bob mueller subpoena him before a grand jury having no idea what the president will tell the grand jury? that's a dangerous environment for mueller. >> harris: it is and i imagine it would be mueller's last resort. what are some of the other dance moves that we could see him try between that and the subpoena? would he agree to a short time in our two with the president what are some of the other things? >> judge napolitano: i would think the president's lawyers are trying to negotiate an interview limited integration and limited and subject matter and it would try to prepare the president for the interview by persuading him and talking to him. >> harris: may be writing the rest of it out. >> judge napolitano: i think written questions is not going to be helpful because the lawyers will write the answers to those questions. if bob mueller has gaps in his case against the president whether it involves a conspiracy to help the russians back hillary or whether it involves obstruction of justice, those gaps can be filled by the answers president trump gives in

the interview, that's why he should never, ever ever submit to that interview. >> lisa: is in the president sort of if he does, if he doesn't? what say if he does want to sit down with mueller, than the left and the media are going to say he had something to hide. he said he was going to. so where does the president go from here? >> melissa: if it were a mere member of my family, even if i knew i was in this, i wouldn't go. i would do everything not to go and as i was forced to go. i think that he covered himself a little bit with that sound bite we just heard. i sort of interpret that as i'm going to go, absolutely willing to go, and later he could say my lawyer told me not to, you know i want to. i told you i wanted to before. so that's kind of how i read that. >> marie: the optics of that for a president and a team who is it over and over and over again there's no collusion, there's no obstruction, we have nothing to hide, we are totally innocent is not just going to be the left that says if you're totally innocent, why are you coming forward in answering

questions? but bill clinton as president had to do it. they negotiated, they came to the white house. >> harris: i don't think anyone holding their breath on what the former president had to do. >> marie: there's a president for a sitting president under investigation to be interviewed. >> harris: is also pulling out there that shows that it's north of 70% of people that said they would like to see the president sit down with mueller. they use all the president and not just in this one sound bite but over the course of the last week or so say absolutely want to. if you've ever been involved in any sort of legal case, it's fine if your attorneys tell you. that's what you're paying them to do. there's about to tell you. >> judge napolitano: the president has such self-confidence and his ability to deal with the political side of this, he should defer to his lawyers and the legal side. he's got to protect his political flank and his legal flank. he can deal with the political flank and let the lawyers deal with the legal. >> lisa: we are going to leave it there. thank you for your insight on this. house lawmakers planning to vote

as soonest today on a stopgap plan to keep the government funded. a top democrat warns the bill is dead on arrival in the senate. so as the deadline is approaching, who will take the blame if we get another government shutdown? plus another volatile day on trading and wall street after the dow is nearly 1200 points plunge yesterday. the white house saying we have to see the big picture when it comes to the economy. stay tuned. mom and dad got a new car...

it's not theirs. it's mine. mine. mine. and it always will be, forever and forever. the new rx 350l with three rows for seven passengers. experience amazing at your lexus dealer. my healthy routine helps me feel my best. so i add activia yogurt to my day. with its billions of live and active probiotics, activia may help support my digestive health, so i can take on my day. activia. now in probiotic dailies. >> harris: this fox news alert now. fox news can confirm, we all can, a showdown on capitol hill ahead of thursday's budget deadline. house lawmakers expected to vote as soonest today on a short-term spending bill that would fund the government through mid-march. remember, we are coming up on that next date, february 8th

where they could shut it down again. we want to extend this year of defense spending will be part of it. house conservatives are pushing for legislation that would avoid leaving the military in limbo. watch. speak of particular plan is a good play call, i'm sure it'll keep the government open that wy and hopefully fund our military men and women for a full year. obviously, that's their choice but it's going to be up to democrats to decide if they want to keep them men and women hostage then they'll have to deal with it on wednesday or thursday if the bill comes back. >> harris: but top senate democrats chuck schumer is warning the house bill would be a dead on arrival in the senate. >> sending this to the senate, cut programs crucial to the middle class would be barreling headfirst. there is no way we will reach an agreement that can pass the senate. and it would jeopardize the

positive discussion going on right now about the budget, disaster aid, immigration aid, immigration, and more. >> harris: while schumer was slamming the house plans, he said there has been some process and sent in negotiations a spending plan. i heard you say, common abyss, where we going here? what he said was going to. they only had six legislative days. >> judge napolitano: think of the federal government is the largest most expensive biggest spender in the western world. could any corporation act like this and expect to be successful? >> melissa: they are the least efficient corporation of all time. everyone on the board should be fired immediately. if i were a shareholder, i would sell hard. >> harris: we are shareholders shareholders. >> melissa: i cancel my shares shares. >> harris: usually you you don't like feeling your person going shopping.

>> judge napolitano: why can't schumer agree with trump on a legitimate year-long budget? >> marie: the biggest problem isn't schumer, it's mcconnell. the senate republicans and the house republicans are on a very different pages in terms of what a stopgap measure should look like, whether it should be a year and mcconnell and paul ryan and donald trump are all three in different places. the democrats need to get on board the republicans need to get their problems. >> harris: you hear people talk about i had representative gallagher on set with me last week and said we should be working every weekend, all these extra hours. i realize i'm new in congress and i said you are near. why are they around the clock? >> lisa: come back a year from now. why aren't they there >> lisa: it is a mess and we have long seen this breakdown in the budgetary process but it isn't just republicans to be fair. congress can't even agree on a two week spending bill for

short-term spending bill for these, how in the heck are they supposed to agree on 12 different appropriations? >> melissa: because it's their job. >> lisa: i understand that, but that's ultimately the problem at hand for congress right now is it's hard for them to agree upon anything. but i will say, i do think that democrats did themselves no favors and shutting down the government only daca. they weaken their hand heading into more of these sites as well as looking at the debt ceiling fight. >> harris: i have a question. who is a politically benefit to kick the can down the road on dreamers and daca? who benefits from that? >> judge napolitano: i don't think anybody does but the last time schumer suffered from it maybe because of what the president dealt with but schumer was a goat the last time around. >> harris: not the greatest of all time, you mean a real goat.

>> lisa: not tom brady goat, or no longer the goat now. the question i asked is this march deadline, this deadline i'll put" that present trump put in place is seems like he was open to extending that. you talk about daca, maybe there's more time and maybe there's not. >> judge napolitano: there is more time. >> harris: political, and i've got democrats you can say we couldn't come to an agreement, but we are still working on it and you have republicans saying basically the same thing. >> marie: were publicans are in control. >> lisa: they don't have enough votes though. >> melissa: the president says stop with the politics and get the job done. that resonates to the american people. >> harris: dropped the mic there, we'll move on. if you've been watching the markets and wondering how your 401(k) and retirement are doing, we have an expert on this. >> melissa: is better. >> harris: we are closely watching the dow the day after the big tip. the largest one-day loss in

history where it stands now, what it all means. we will talk in depth about it. president trump again is going after nancy pelosi for calling workers bonuses crumbs. what he says he believes she may be the g.o.p.'s secret weapon. the g.o.p.'s secret weapon in 2018. >> i just hope they don't change her. there are a lot of people that want to run around. she's really out there. i'm supposed to make a deal with her?

♪ if you have moderate to severe plaque psoriasis, little things can be a big deal. that's why there's otezla. otezla is not an injection or a cream. it's a pill that treats psoriasis differently. with otezla, 75% clearer skin is achievable after just 4 months, ... with reduced redness, thickness, and scaliness of plaques. and the otezla prescribing information has no requirement for routine lab monitoring. don't use if you're allergic to otezla. otezla may cause severe diarrhea, nausea, or vomiting.

tell your doctor if these occur. otezla is associated with an increased risk of depression. tell your doctor if you have a history of depression or suicidal thoughts, or if these feelings develop. some people taking otezla reported weight loss. your doctor should monitor your weight and may stop treatment. other side effects include upper respiratory tract infection and headache. tell your doctor about all the medicines you take and if you're pregnant or planning to be. ♪ otezla. show more of you. this time, it's his turn. you have 4.3 minutes to yourself. this calls for a taste of cheesecake. philadelphia cheesecake cups. rich, creamy cheesecake with real strawberries. find them with the refrigerated desserts.

>> melissa: fox news alert for you, we are watching dow after it dropped more than 1100 points yesterday. that was the largest single day point slide in history. now percentage. it wiped out the 2018 gains falling below 25,000, dipping into correction territory if you had close they are. while it was the biggest single day point decline we've seen, much steeper percentage drops in the past.

what has deputy press secretary hogan ghibli is not concerned. >> the fundamentals of the american economy are really strong. scene 7000% increase in the stock market. we heard on the obama admin attrition that 1.9% gdp was a new normal, that manufacturer would never come back to our shores. all of those things have been turned around under this president's policies, not to mention that gdp is hovering around 3% for the first time in the better part of a decade. >> melissa: two very important things to keep in mind. this is a reaction to good news, not bad news. so normally we see the market drop because you see growth. you see growth out there and that means that the fed is probably going to tighten up. we might be seeing some inflation out here. because of good things going on. here's the thing to remember. the company, the stock that you like a week ago is a lot cheaper now but profits are still going out. it's a better deal because profits are going up. if i was allowed to buy a stock which i can't because my job and my husband's job.

that apple is looking delicious. >> judge napolitano: said the fed is going to tighten up, so you mean is the fed might increase interest rates which will make it more expensive for companies to borrow money which will make it more expensive for them to run their businesses, which is going to lower their stock value. >> melissa: first of all, they got a big tax break. they have more money than they can use. i think the tightening of interest rates has to do with what you've seen in the treasury market. that's one of the reactions are one of the normal computer trading algorithms is when you see stocks going one direction, bond yields go on the other direction, that's one thing we are reacting to. it's more meaningful the interest rates for individuals because as you have a card that we are locking out a home mortgage, if you're looking at one right now, lock that down because we have way too much to lose free money for the entire last administration. now it's getting pulled in and those chickens are coming home to roost. the economy is booming. if that's what started this and that's good news, not bad news.

>> harris: the other thing that's happened that you can see and you know this from pulling and you know this from the rise and balances on your mastercard and your visas across america is that people feel not only just more confident about the economy, but they're beginning to do the one thing that we had a question mark about. when will mainstreet feel some of what wall street is feeling? this is an answer back to that that actually is positive. >> melissa: inflation which we are seeing a wages which is great. that's what we've been asking for all along. people are getting richer on wall street, but we are not seeing wages go up. it is equalizing, this is great for mainstreet. >> lisa: that's also we've seen a tightening on the generic battle as well. if your member back in september, they were losing by 15 points which was incredibly concerning looking at the 2018 midterm elections and it is only a two-point deficit they've been able to close that gap so i think the calculations at

speaker paul ryan and republicans made when they said that once americans start seeing more to come pay once they start seeing the benefits of a tax reform law, their opinions on this are going to change in their opinions about us are going to change and i think we're seeing that. the midterm elections are still really far away so anything can change but wait we're seeing right now is there calculations were correct. >> harris: we are going to move on but will come to you first. president trump is touting his tax plan. he was there in ohio yesterday i went after democrats at the same time. the president is once again calling out representative nancy pelosi. for referring to workers bonuses as crumbs, comparing it to hillary clinton's deplorable gas. watch. >> nancy pelosi again said that's crumbs. she's a rich woman who lives in a big beautiful house. in california. who wants to give all of your money away. i think the crumbs will be equivalent, and i said that's the other day for the first

time, when i first heard the word deplorable, i thought it was a bad thing. but i had no idea it was not going to be good for our opponent. >> harris: the president also said pelosi may be the g.o.p.'s secret weapon. he said the tax cuts should pay dividends will republicans and 2018 and 2020. >> she's our secret weapon. i just hope they don't change her. there are a lot of people that want to run around. she's really out there. i'm supposed to make a deal with her? >> harris: pelosi fired back in a statement saying "republicans have been caught red-handed enriching their wealthy corporate donors at the expense of working families and the american people recognize the tax scam for exactly what it is." here's what is conflicting about this. people this week, and maybe even on friday began opening up their paychecks and seeing the big difference.

for some of them, hundreds of dollars. so i'm wondering, where do democrats find an economic message this time around? is going to be harder because of much more positive when they couldn't find it when things were not as positive last year. >> marie: the midterm election as we talked about a lot as a district by district message and there are a lot of districts and states like new york, new jersey, california, illinois where people are not actually going to get more money this year because of the state and local tax issue because of these very wealthy states not getting benefits in the same way the other states have. so when the midterm election, i think the democratic party has found candidates who match these districts in the same way that republicans always say to me you can just run against donald trump. you have to have a positive message. republicans can't just run against nancy pelosi. >> harris: i want to make sure you understand. what you're saying is the democratic rebuttal to tax plan, job creation, positives for republicans is to go to those 14

or so states that are missing their taxes and try to drum up insensitivity there? >> marie: what i'm saying is that you win back the house by getting a couple dozen seats and there are a couple of dozen seats and states that are not benefiting from the tax cuts, not for the democrats to win. it's a political argument. midterms are not about a national message. is there about a district by district message and the they are outraging their counterparts across the district. speed of the president says he wants to run against nancy pelosi because isn't she the biggest fund-raiser they have right now? >> marie: she is certainly one of them. you have younger democrats like joe crowley, like south moulton who have formed their own fund-raising organizations and are supporting younger candidates, particularly veterans and those members if they win are going to owe their allegiance not to nancy pelosi but to these other members. >> lisa: you're right. a district by district matters. i don't know if there's enough to make the 24 seat advantage.

>> marie: there is in those states. >> lisa: i had to look into that, i don't know that. >> harris: did you just say you don't trust her? >> lisa: the reality is, nancy pelosi can be weaponized against democrats. it's happened before. in 2010 when all of these ads had nancy pelosi deterring them. we saw that also in the special election that democrats were desperately trying to pick up 158% of voters in that district had negative opinions of nancy pelosi. is it going to work everywhere? no, but is an effective strateg strategy? when he needs to do is what he did in ohio yesterday were he to the state of the union, gave the states that people that are benefiting as a result of tax reform and use that. i think that's effective. >> harris: last question. does the president need to talk right now about the stock market? when he was on the ground at the airport in cincinnati, you have a side-by-side picture on most of the networks including this one because we are waiting for

him to finish talking with everybody and get into the motorcade. he had the side-by-side shedding its greatest point loss. >> judge napolitano: getting right on the plane. taking credit for going up, has to give a melissa francis like explanation. >> melissa: he could. i think you should stay away from them. i would stay away from it from a while. i think everyone is biting their nails. i don't know if that's his forte necessarily. i don't know. i could write it, i'll send it over. >> marie: i'm looking at the bottom of the screen, up 132. i would say just everyone, seemed to stabilize. >> harris: that's what i said, enjoying "outnumbered" ." vice president mike pence is not ruling out a potential meeting

with north korean officials during his visit to south korea for this weekends winter olympic games. whether any interaction will take place and what that could mean going forward. stay close. smile dad.

i take medication for high blood pressure and cholesterol. but they might not be enough to protect my heart. adding bayer aspirin can further reduce the risk of another heart attack. because my second chance matters. be sure to talk to your doctor before you begin an aspirin regimen.

swho live within five miles of custyour business?-54, like these two... and that guy. or maybe you want to reach women, ages 18 to 34, who are interested in fitness... namaste. whichever audience you're looking for, we'll find them we're the finders. we work here at comcast spotlight, and we have the best tools for getting your advertising message out there. anywhere, any way your audience watches. consider them found.

>> melissa: more "outnumbered" been just a moment but first, let's touch base with harris on what's coming up in "outnumbered" over time just minutes away. >> harris: we've got a big show coming up. lawmakers are talking about actually seeing the intel behind the g.o.p. and democratic surveillance memos. texas republican congressman john ratcliffe is one of them, and he will join me. his thoughts on whether president trump should release the democrats memo and was the fbi properly notified that the anti-trump dossier was paid for by hillary clinton's campaign? and was two days until the next government shutdown deadline, can congress agree to yet another short-term funding bill? republican marsha blackburn, former chairman of the budget committee, democrat henry cuellar together standing next to each other will join me in the next hour. and we will be talking about that. outnumbered overtime at the top of the hour.

>> melissa: look forward to it. vice president mike pence is leaving the door open for potential interaction with north korean officials during his visit to south korea for the upcoming winter olympic games. watch. >> president trump has said he always believes in talking. but i haven't requested any meeting. we'll see what happens. my message, whatever the setting, whoever's present will be the same. and that is that north korea must once and for all abandon its nuclear weapons program and ballistic missile ambitions. >> marie: this is the rogue regime is ramping up its rhetoric against the united states after reports that they are considering carrying out a preemptive strike on north korea known as a bloodied nose attack. the news agency saying "don't like trump? should know that his backbone would be broken to say nothing of a bloodied nose and empire of america would go to hell and a short history of the u.s. would

end forever. of the moment he destroys even a single blade of grass on this land." just as an american, that was hard to read. we were talking before the show about should he meet with them? could be an opportunity to have a discussion about a pretty serious national security threat. >> lisa: we are also talking about with his parents, his father a way to counter the propaganda of the north korean and simple matters here. president trump has also tried to unite the world against north korea so it's an important reminder of who north korea really is by having his father in attendance. one thing that president trump has done well is brought faces to issues that americans care about. he did this at the state of the union with the north korean north korean defector holding up his crutches. that was a powerful moment and i also think this is another powerful moment that the olympic games as well.

>> marie: right now, there are probably people trying to figure out whether or not they should be some sort of conversation. what do you think? >> judge napolitano: i don't think mike pence would've stood there saying i'm here if anybody wants to talk to me without their having been some communication. in the meantime and the state department with north korea already. don't have any illusion, you're negotiated with the monster. but the optics of negotiating particularly should be god forbid violence in the future, the optics of negotiating would make the violence more palatable when it happens. >> marie: and maybe look like the u.s. tried to avoid some sort of conflict. >> judge napolitano: always better to talk than to fight. >> melissa: maybe it's a message that we are here, maybe it's not kim jong un but whether it's the under surrounding countries and other people within north korea. that is always possible, is it not? >> marie: there's been this interesting backdrop of the north koreans of the south koreans training together, their athletes training together, going to march together under one flag and opening ceremonies.

>> judge napolitano: are they all as crazy as he is? >> marie: that's one of the biggest question of the intelligence community has. if there are rational people, they very often get disappeared. the question is is he rational or not and if he is not, that's a really scary piece because deterrents don't work, then those pieces they put out there on the table could mean nothing. at the limits are supposed to be this happy celebration of international sport, but so close to one of the world's biggest conflicts right now. >> judge napolitano: they opened up trend over a ping-pong game. >> marie: conversely over the cold war, that they finish the soviet union. >> melissa: we shall see. we have more "outnumbered" for you in just a moment. the best simple dishes ever?

great tasting, heart-healthy california walnuts. so simple, so good. get the recipes at walnuts.org. the morning walk until... it... wasn't. don't let type 2 diabetes get between you and your heart.

even if you reach your a1c goal you are still at risk for heart attack or stroke. talk to your health care provider today about diabetic heart disease. and find out more at heartoftype2.com. your heart and type 2 diabetes. make the connection. the roasted core wrap.belly fat. 3, 2, 1... not cool.

freezing away fat cells with coolsculpting? now that's cool! coolsculpting safely freezes and removes fat cells with little or no downtime. and no surgery. results and patient experience may vary. some rare side effects include temporary numbness, discomfort and swelling. ask your doctor if coolsculpting is right for you and visit coolsculpting.com today... for your chance to win a free treatment. >> melissa: thank you for judge napolitano. at the market is up 343 points. >> judge napolitano: i love the melissa francis explanation and i wish the president would adopt it. >> melissa: it's all good news. >> lisa: what should i say? >> melissa: it's good news, it's about growth. locking your mortgage, that's what you should do. locking your mortgage. >> judge napolitano: pleasure to be here. >> melissa: it was a lot of

fun. we will be back here tomorrow at noon eastern and now, here is harris. >> harris: let's begin with the battle over the dueling memos. i'm harris faulkner. the democrats were rebuttals now on the president's desk. they unanimously voted to make it public. president trump has five business days to decide whether to allow its release. declassify a potential of the same way he did the g.o.p. memo, that's what we are watching for. at the top democrat on intel adam schiff says democrats want to make sure the unit administration does not redact the memo for political purposes. >> we want to make sure that any reductions that are made are fully explained to work committee by the fbi or department of justice and likewise by the white house. we want to make sure the white house does not redact our memo for political purposes and obviously, that the deep