>> shepard: it's 3:00 on the east coast. noon on the west coast. 2:00 p.m. along the florida panhandle where right now the hurricane continues to move north and east. it crossed over land at a historic 155 miles an hour. maximum sustained winds and hit with drew dead force at tyndall air force base near mexico beach in the florida panhandle. let's get to the hurricane for a live track of the storm. >> i'm ken graham here in the operations here. it's 3:00 p.m. eastern, 2:00 central. the latest update on hurricane michael, you can see most of the center, the eye wall, the area of the strongest winds moving on

shore. we made landfall and continue to move north at a rapid rate. north northeast at 15 miles an hour. so moving quickly. a reminder. we're seeing the pictures inside the eye. it's a very dangerous thing. this thing is moving so fast, 15 miles an hour. as it moves north, you may have some calm inside the eye but it's dangerous. you'll have the back edge of the winds. we often see that to be incredibly dangerous. be careful. really just best to stay in a safe place in the shelter. so with time, let's look and see where we'll get the center moving. when you have a landfall this strong, 155 miles an hour hurricane, it's going to take time to reduce the winds once we made landfall. we still expect to have strong winds, hurricane force, moving in to georgia. so into the evening hours, central georgia, take the rain that we showed and look at the winds on top of it. could get trees down, power outages into georgia.

look at this wind field. tropical storm force winds extending out 175 miles. a strong system. so without a doubt, we have some time to go with this. we still need to be careful. flow around this system like this. you'll still have on shore flow on some of the beaches and the panhandle. the water will be slow to come down. some places more water on the way. think about how large this system is. we have tropical storm warnings on the atlantic portion of this storm from georgia and into the carolinas with some of this on-shore. what are the hazards? the rainfall, a dangerous situation with the rainfall. when you have the tropical systems a lot of moisture around the center and in the rain bands. so 6-10 inches of rain potentially. we're moving, the downpours are incredible. with time you'll see 4 to 6 inches in some of the other areas that will cause a problem with the wind and the rain. that is where we can see some trees down, getting into georgia.

storm surge is something that we've talked about for days. high values potentially. you really look at this. it's an area that is incredibly vulnerable to the storm surge. that's why we've been hitting it hard. half the fatalities is storm surge. with time, you'll see the water levels still coming up. we're not done with it yet. we've been talking about this. not just a coastal issue. we've seen the water, the barrier islands and pushing the -- the wind keeps pushing the water inland with time, this is the apalachicola river. northerly we drain the water out. in a situation like this, we're seeing the river reverse, pushing the storm surge in. we've been talking about not just coastal but well inland. to illustrate that, if you're living inland on these rivers, this is the coastline. look at the apalachicola river inland. the water level sharply coming up. that's miles and miles inland. that's something that we've been covering. it's still not safe to be

outside. a situation where the water levels can stay up. hurricane force through the evening. it's best just to stay shelter, this is the latest from hurricane michael, ken graham at the national hurricane center. >> shepard: ken, thanks. let's got panama city beach. jeff flock is there. how is it? >> this is our first look, shep, at the beach. trying to make our way next to the hotel. it's an air b&b. look at that guy. he's waving. she just went away. she's waving up there. look at that. somebody survived it. we'll see how the beach survived. come on, kyle. >> shepard: the signal will be in and out. we're saying with this. we haven't seen this yet. let's go. >> the surf is not as bad as we thought it would be.

obviously still surging some as we speak here. look, this could have been worse. you said earlier, 18 -- look at that. the railing just -- it's not catastrophic damage but that is the pool railing there. obviously collapsed. i'm looking down. see what other kind of damage i see. i don't see anything terrible, i really don't. i'm looking this way. you know, obviously storm fence knocked down. that sort of thing. i do not see any catastrophic damage, shep. we do obviously still see the scene of the gulf. but i tell you, this could have been -- over there. okay. we're up to our ears in surf here. no, this could have been a lot worse. that's your headline. certainly could have been worse.

>> shepard: you could have been 20 miles west. your winds ought to be coming from right to left now as you look at the beach from west to east, right? >> you called that two hours ago. you're absolutely right. that is now -- now it's passed us, occasionally you still get a good gust here and there. when that happens, you do get, you know, the whole sand blast routine. you're right. now they're coming this way. that's an indication the storm is passed us. you've seen the radar. you know it better than i do. i don't think the back end has a lot to it. that would suit me just fine. >> shepard: i think you're right about that. you'll get more wind and rain. stay safe, jeff. let's go east in panama city, close to panama city proper now.

rick leventhal is there. how is it look something. >> it's better than it was, shep. we're still getting buffeted by high winds. i had my wind meter out. clocked a gust at over 50 miles an hour. the cover came off and i went to pick it up and it took off. that is gone. the way stuff flies around out here in the wind. we do see a utility pole that came down and a couple trees. what is remarkable to me, how many trees are still standing. look at the forest beyond me. most of the trees are still up. obviously that's great. we do see some sign damage, minor damage here and there. we'll get a better look at it when the worst of this is over ander with getting pounded a bit here, shep. you know, the visibility has improved and the wind speeds have come down. the rain is still hitting us hard. >> shepard: so many people have been out in a boat when all of a sudden it starts raining and you

floor it, you go as fast as you can toward the docks and usually that is 40, 45, 50 miles an hour if you have a fancy boat. double that, what does that rain feel like at 100 miles an hour? >> it hurts. it stings your face. hurts bad. i'm trying not to get hit by it right now. i've had enough for the day. you know, it's been pretty rough out here. you know, this is what authorities were worried about, getting hit this hard in this particular location that hasn't seen winds this strong or -- the one thing that i can't tell you about, jeff flock was worried about a storm surge. must of panama city beach is at a 10 foot elevation. i don't see a lot of flooding here. we're a couple miles from the gulf coast. if there's a surge, it hasn't

reached where we're located. >> shepard: show people why that is. on camera four. there you go. here's why that is. here's the storm, right? here's panama city. the storm is here. where is the storm? it's come here. here's where panama city beach is, over here. this is the circulation, right? so everything over here is getting 140, 150 miles an hour winds. pushing enormous waves in apalachicola and port st. joe. huge storm surge. on the back side, the winds are like this. so here on panama city beach, the winds have come this way as the storm reached shore. you don't get a storm surge. you get bodied of water emptied out. the grand lagoon got emptied out into -- by shell island. got emptied in the gulf of mexico. you have the same really strong wind pushing it. now the storm has moved inland,

the flow is counterclockwise and all around this center, now the winds are coming out of the west. look at panama city beach. it's an east-west beach. the water is coming along. no great storm surge. when this is over, the people of bay county at least along panama city beach will be able to look back and say not that the meteorologists missed it, the 155 maximum category four storm, strongest thing you've seen in the united states in a long time and the worst storm ever to hit this part of the world, ever in recorded history. it didn't hit the big population area. it hid over here. it made a jog of 15 miles. that is the difference in that on the map. it could have just as easily hit panama city beach. in panama city beach, i bet you they got on their knees and said their prayers last night. if they're otherwise inclined, they got extremely lucky. this storm missed destroying

their lives by that much on a map. by wiping out the tourism industry and the center of the economic engine for the entirety of bay county. it missed it by that much. instead, hit tyndall air force base. i know they had largely evacuated there. i spent a lot of time at tyndall over the years covering stories back during local television. it's a lot of concrete block buildings and they can handle this sort of stuff. the u.s. military will get you organized and get you out. the rafters are out of there and they had a skeleton staff there and wore all hoping and praying they're just fine. we'll know soon enough. look at the eye of this storm. it's getting wobbly now. the huge rain band is heading to steel city, chippley. this is part of the panama city viewing area.

it's about to rain cats and dogs for you guys. you'll have hurricane force winds coming up. we must take a commercial break. i have to show you the dow first. the industrial average is in -- points-wise, this is an enormous day. we're off 2.3% with 45 minutes, a little more left in the trading day. we've been around this area hovering here. the nasdaq down even more. last check, the nasdaq was about 200 points, which amounts to about 2. -- what is it now? down 2.3%. oh, my gosh. it's like herding cats here today, ladies and gentlemen. down 2.9%, the nasdaq is. these are big single day drops after a few drops. it's all about yields on treasuries. when they go up, that puts downward pressure on stocks. today is not the day to look at

your 401(k). today is the day to be thankful that most of the florida coast along the panhandle from destin to panama city was spared this storm. because it moved east. thank the good lord. the news continues after this. george woke up in pain. but he has plans today. hey dad. so he took aleve. if he'd taken tylenol, he'd be stopping for more pills right now. only aleve has the strength to stop tough pain for up to 12 hours with just one pill. aleve. all day strong.

they won't hike your ratest foover one mistake. see, liberty mutual doesn't hold grudges. for drivers with accident forgiveness liberty mutual won't raise their rates because of their first accident. ♪ liberty. liberty. liberty. liberty ♪ >> shepard: new video has just come in from the big bend area east of apalachicola. lenark villages, which is along the coast. kelsie has this new video.

>> yeah, this is from a volunteer fire department about 45 minutes east of where this made landfall, east of mexico city. they posted about five or six videos, this is the most recent one. >> shepard: east of mexico beach here. >> that's what i meant. as they zoom out, you can see that someone is -- looks like they're filming this from the safety of a car. the side door there. somebody that is not out in the storm but still dangerous conditions. a couple more that they posted as well. >> standard construction. everything on stilts. sometimes garages underneath, like washing machines and stuff. but that first area has to be break-away and it is. water under the houses. >> the windshield wipers going back and forth. somebody trying to stay covered. >> it's a bad one. >> shepard: yeah, it is a bad one. this is far east of the center

of circulation. way far east of -- that's about to get picked up. we haven't seen pictures from where the worst of this was right there at tyndall air force base. we will eventually. the east side of bay county, the east side of panama city proper. another one here? you can see the construction, the coastal construction. this goes back really to opal and prior to that. opal back in 95. that changed the setback lines and changed how high you have to build your homes on stilts. so you put the home on stilts and use the underneath for storage or parking a car. the reason you do it, the water will go underneath the home and maybe leave it standing. looks like here that's what happened. >> looks like it. >> shepard: kelsie, thank you. i want to get to adam klotz. here our -- one of our meteorologists in the extreme weather center. adam, still moving ashore.

>> yes, a massive storm. you've been showing videos and pictures hundreds of miles away from each other. you don't have to be near the eye to be feeling the effects. there's rain falling in tampa, now close to atlanta. so a massive storm all associated with this. the eye wall -- remember, when the eye came on shore, winds of 155 miles an hour. we're getting close to the state line, alabama, georgia. winds still at 150 miles an hour. we're an hour drive north is where the storm would be if you're in a car. we're still talking about a category four storm. it's powerful and not weakening a lot because it's on land. here's some of the recent wind gusts. even as we move off the shore, still seeing winds at times up in the mid 60s. we had a recent one there in apalachicola. that was just completely taken down. that typically happens when you get winds closer to triple digits. you lose the sensors because the

winds are so strong. not surprised that happened in apalachicola. even though the center continues to move a little farther north because of that big broad rotation, there's still time for storm surge to pile up, especially in the big bend area. we're looking at the forecasted areas that could see if they're not already 10 to 12 feet of storm surge. that is where the storm surge will be the greatest, from apalachicola stretching to the big bend. it's on the eastern side because of the way the wind moves. still circling around the storm. that could force the water up what will be happening next and i'll leave you with this, shep, you asked about the storm being strong at a category four. we're going to be running into georgia as a category two hurricane. this will likely be a hurricane through the overnight hours. not becoming a tropical storm until maybe early today morning. it's so big, it's so powerful, it's going to run through georgia and run into the carolinas. it's going to be a hurricane

here probably the next 12 hours, at least something like that. >> shepard: wow, adam. it's on its way north now about to run into interstate 10, probably hit i-10 around marianna in just about an hour, 1 1/2 hours. these are live pictures from rosemary beach. so many of you have a connection to 30 a. if you have a home or a get-away or like the beach, if you're from the southeastern united states and you go to 30 a area, this is it. this is rosemary beach. along here, we have seaside and sea grove and sea grove place. you get to rosemary beach. let's watch. >> you can see an awning. it's blocking the street. we're going -- there's a turn around here. we're going to turn around. try to pull in to show you that. get a better idea what that was. there's power lines down here.

you can see briefly there. here's the damage that i was talking about. not sure what this was. it was something that was -- an awning of some sort. i don't want to move the camera much. once we stop -- back up a little bit. >> looks like another awning over gas pumps almost. >> as adam gets situated there, just looking at the streets, you can see the wind picking up because the rain is being pushed along on the roads there. he's getting closer to where michael made landfall. the conditions will pick up -- >> shepard: that's local coverage from fox 10 wala for the mobile and pensacola area. also fort walton beach. they moved to this vacation area. if you were to have gone to a place called rosemary beach 30 years ago, you'd see nothing.

right along 30 a -- there's older houses and some salty families that had vacation get-aways. nothing like it is now. county road 30 a is a place where people from atlanta and nashville and memphis area found a little get-away slice of paradise where things aren't too expensive and there's bigger plots of land. some of the most beautiful beaches you have ever seen anywhere on this earth. i have traveled, i will tell you. it doesn't get much more beautiful than this. allie's beach, seacrest, sea grove beach. those of you familiar know what i'm talking about. inland beach. sure, there's some awnings down. keep in mind that this was a place that they thought might get hit. instead, it was largely missed. wala's reporter is on scene and giving a live report for us. i want to listen in as he begins as he beginning right now.

>> its amazing how dramatically it changes here. last time we spoke, we were in the thick of some of the worst wind and rain we've seen all day. now some of it has died down. take a look at the mass cam. you can see what looks to be the edge of the storm. we can see it out over the water. it's making its way and looks like destin, florida, looks like for now they have lucked out. whether this is the edge or whether we're in the middle of one of those bands. take a look at the pictures from further down the road, panama city beach. the picture there much different. you can see the effects of the strong winds. there's a reason that they warn people about the winds. what it's doing to the surf and the trees and the amount of water that is whipping up. the rain that is coming down. the flags up on the flagpoles. it's just so strong, there's a reason why they warn people when these winds get up to -- the

gusts get up to 150 miles an hour. this storm is continuing to move inland. it's going to continue to move over the panhandle and start to make its way northeast as well. there's still a long path ahead. besides the wind, the storm surge, which could reach 13, 14 feet, low-lying areas, lots of low construction, single story houses. those are the most susceptible to the catastrophic damage. we have a long way to go. for things looking better here in destin. >> shepard: yeah, destin, thanks again to wala. i want to show you this spot. the map has switched over. i did have -- is it still there? no, it isn't. at any rate, he's in destin. my map has disappeared for the moment. it's on the far western edge of the area that was in trouble because of this storm or potentially. they are just beginning to see the first light of day.

sun is about to come out in destin, florida. the worst is over. lost all control at the moment. let's get to the big radar loop that we've been showing all day and see the movement of this storm from the satellite view. from weather 10, i guess it is. there's a local radar. here now -- mine is back working again. i want to show you where destin is. of course, it won't do it. mr. machine, could you please make the weather thing work? no. answer is no. but here we go. let's look over here. this storm is going to continue up. nothing funny about it. man, worst case scenario is 155 miles an hour storm. the strongest storm since hurricane camille to hit america. i was 5 years old. i'm so old, very close to death many will be happy to know. very close to the end of life.

i was only 5 when this thing hit. my dad was only 40 then. you know it was a long time ago. when hurricane camille hit, nobody thought this is the strongest one since then. it's headed here to georgia. we're about to cross over i-10. somewhere around marianna, florida. marianna is just north of i-10. it's going to cross somewhere around marianna. the eye wall is breaking up a little bit. as it does after it gets over dry land, of course. but it's still hurricane force winds. so marianna, it's on the way. i-10 will be closed down in that area because the winds are way too high. if you have a big rig, you contestant get a little ford focus on the road there. it's too strong and will continue north and east. this is tomorrow. this category two when it gets to georgia -- tonight at 8:00, still a category two by the time it reaches georgia. about 4 1/2 hours from now.

so a very powerful storm. the most powerful we've seen in most of your lifetime. the forward march is on. we expect this to track north and east generally speaking. you can see where it is by thursday at 8:00. it's down to a tropical storm force wind by then. they rain themselves out and continue to spin in the counterclockwise direction. the central pressure rises because the energy, the fuel is at extremely warm gulf water. think where this formed. it forms between cancun and key cuba, right? just right off of the coast of where the military facility is down there in cuba. that is about where it formed. it was just a little tropical depression. the waters were so warm. there were no upper level currents. nothing to get in its way, only

energy. perfect situations. no high pressure to mess with it, no low pressure. just started spinning and churning. as it progressed northward and through the gulf of mexico, the water was very hot. 85 degrees. that's hot for the 7th, 8th of october, even for the gulf of mexico. it's cooled down now but not as much as normal. as it got closer to shore, the waters got hotter and shallower and the storms gained strength. rather than the storm we saw two days at, it came ashore at 155 miles an hour. right over tyndall air force base. i want to show you over here on this map where this thing is going. we have the report live from destin just a short time ago. here's the center of circulation. moves inland from panama city. over here is destin. destin and the emerald coast parkway. destin is seeing blue skies now

for the first time. when this storm was down here, this is about where it developed. somewhere in this area. it was here. right over here. when this thing developed in the gulf of mexico, there was no way to know exactly where it was going to go. they knew a general area. but destin was certainly in it. so was panama city beach. had this storm jogged a little bit to the left, it would have been one whale of a thing. let's go in to the center of circulation now. you can see where we're headed, this is i-10 here as it goes across florida. this is the main east west route. here's the city of marianna. the center of circulation is beginning to break apart. the eye of the storm is not as well formed. see the red? that is drenching, soaking rain that is coming to alliance and round lake, making its way up to

steele city. here's the three towns that i talked about. chipley and marianna and bona fe. the eye of the storm will cross between marianna and ch chatahoochee. where does that take us? up to macon, georgia. it's raining in birmingham, moving in this general direction. the storm is with us at least for the next couple days. we've reached the bottom of the hour. a lot of news today. we'll get you to the hot spots and show you the damages. we're trying to find out exactly what happened on the east side of panama city itself. the east side of panama city has been a concern all day. we know that the center of circulation when over the eastern suburbs of panama city,

specifically callaway and parker. these areas right here. they got the western part of the eye wall. very concerned about that. waiting for pictures out of there. otherwise, as a storm of historic size, historic winds has come ashore, it came at a place where it could have found a worse place. the dow is off 570 points on the session. the nasdaq down 2.5%. we'll get updates from the fox business network, check in with some of the political news today and keep you updated on the storm. this is fox news channel, america's choice for news and information on cable. this place isn't for me.

that last place was pretty nice. i don't like this whole thing. dad, what happened? where's rosie? i let her go.

wow! you going to help me finish this thing or what? i think we can do better. change is hard, dad. try to keep an open mind. come on, dad. this is for me, son? so, you going to help me finish this thing or what? principal. we can help you plan for that. >> shepard: 25 minutes before 3:00. along the florida panhandle where the storm, michael, continues to churn north northeast moving at 15 miles an hour and fast approaching interstate 10 somewhere around marianna, florida. there's destruction though in

specific areas, but some flooding in power outages across a wide swath. let's go to apalachicola where extreme flooding was a concern off of the gulf of mexico about 60 miles from the center of circulation. phil, how is it looking? >> it's the calm after the fury. the winds are far milder than they have been all day. this is like a regular rainy day here -- any time of the year. this is just wonderful. it's just a break after so many hours of being pummeled ferociously by hurricane michael, this is water street. it's actually receding already. you can see the fence,cast iron fence over there. chain link fence, i mean. it is gone down about 2, 2 1/2 feet. you couldn't see that fence most of the day when we did the live

shots. you can see the rooftops here. they amazingly didn't rip off entirely and fly into the area. the street is flooded. it's going down. you can see more steps leading up to the hotel. come take a look at the apalachicola river which was furious at the beginning of our covera coverage. being pushed by the gulf of mexico north upstream. it's very, very calm. visibility is great. you can see almost all the way across the bay. in fact, looking southbound towards the gulf for the first time today, we can see the big bridge that takes you eastbound over the bay to east point and then eventually you can make your way back up to tallahassee. that route is closed. you cannot drive on the bridge. there's no eastbound departing of apalachicola and no westbound

departing of apalachicola. but at least the fury of the rain and wind has stopped. a.j. smith, the county sheriff, he told us this morning or this afternoon this was absolutely the worst he has ever seen. very dramatic day. now that the bulk of the system is really moving north into georgia and the carolinas, people kind of getting a bit of a reprieve over here in apalachicola. everybody is still supposed to stay inside. we did see some guy off in the distance down water street wadding. he was about waist to chest deep. not sure what he was doing. checking on a business. who knows what. now that the winds have subsided, the currents not so bad. technically could wade through it. but you're still not advisable. still life threatening.

emergency and sheriff authorities don't want anybody out there. they want everybody to stay in their house till tomorrow morning. mandatory curfew in effect as well as up and down the panhandle. big ben, sunset to sunrise. all of the sheriff departments and police departments, fema and the state really want to get after here is get some water levels dropping and then get out on their atvs and high profile vehicles and their boats. a lot of shallow boats activated by the governor's office and get around, see what is what. see how many trees are down, how many power lines are down. power is down much of the region. i'll tell you that. shep? >> shepard: phil keating. our eyes and ears from apalach. now we go to adam klotz. >> this is the alabama state

line, georgia state line behind me. you can see the circulation with this storm. now if you were off to the western side of it, the winds are coming from the north. what that means for water, flooding, we're pushing the water away from the land. that's good new. panama city and panama city beach this evening, high tide around 8:40. even though the water levels are coming, the winds are pushing this away. high tide, low tides are different around the country, around the world. it's not bad here. low tide a foot lower than high tide. still the area of concern if you talk about where is this water going to pile up, where can the wind grab it? it's on the eastern side of the storm. there's the center of circulation. even though it's so far north and where the worst winds are, you can stretch back to the east. it will be grabbing this water

and continuing to pile it up in the big bend. so that's where we can continue to see some storm surge being an issue here going forward. all of the water brought with it, but it's not going to allow it to retreat. our forecast of anywhere from 10 to 12 feet of storm surge along these areas, that continues to be an issue. it's not going to be allowed to retreat until eventually that wind moves off and we get better of a chance, this could still be a concern for portions of apalachicola as well. a little farther to the west. this was a prediction, a forecast model that said as much as 8 to 9 feet of water being pushed up on the land, shep. that potential is still there if you're on the correct side of the storm for the wind to grab it. >> shepard: adam klotz, thank you. breaking news now on wall street. what a dive the dow is taking this afternoon. the dow jones industrial average now off close to 750 points on

the session. down 2.8%. it's worse on the nasdaq. down 268 or 3.5%. the s&p 500 down 2.8%. all of the averages are still going down. the reason? treasury yields putting enormous pressure on stocks. we'll get to the fox business network's susan lee to talk about your money and this effect on all of our portfolios. that is coming up from the fox news deck on this wednesday afternoon. i've always looked forward to what's next.

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as stopping increases your risk of having a stroke. eliquis can cause serious and in rare cases fatal bleeding. don't take eliquis if you have an artificial heart valve or abnormal bleeding. while taking eliquis, you may bruise more easily and it may take longer than usual for any bleeding to stop. seek immediate medical care for sudden signs of bleeding, like unusual bruising. eliquis may increase your bleeding risk if you take certain medicines. tell your doctor about all planned medical or dental procedures. eliquis, the number one cardiologist-prescribed blood thinner. ask your doctor if eliquis is what's next for you. >> shepard: you are looking live highway 98 eastbound heading towards panama city beach. our station fox 10 wala from pensacola, mobile and fort walton now driving along panama city beach. you can see the street lights are out. alex in the vehicle giving us a play by play. let's listen. >> it's not helping the

situation. before the rain was at our back and helping us along, moving us through the rain and the wind, moving quicker. now it's headed straight at us. it's a lot louder and more difficult to drive headed this way because you're getting buffeted by the strong winds and the rain. these are -- the strongest winds we've seen all day, even compared to destin and the storm is two hours past landfall, we're still getting strong winds through here. it's not helping any of the situation. a lot of downed stre ee eed trf power lines down. we had some intersection that had lights still. the rest of the area is without power. it's interesting to see what the rain and wind lets up what the damage is. if things are not damaged now, i'm sure they will be. you have everything loose, all

the debris falling down and everything picked up and thrown around by the winds. it's a serious situation. we're going to keep giving you updates as we're able to with the connection being down out here and very spotty. we'll try our best to do that. for right now, this is the scene out here. parts of 98 look all right. other parts don't look good at all. we'll give you those updates and show you the images as we find them. reporting from panama city beach, adam olivier, fox 10 news. >> shepard: this is going down to the miracle mile. so hoping this place wouldn't be wiped off the map, this monster storm has hit them by a flea's hair. let's get to mike thomas. he's the mayor of p.c. beach. mr. mayor, how are you feel

something. >> doing great. riding alopping, looking at damage. we got mighty lucky. >> shepard: didn't you get lucky. can you imagine if this storm moved 20 miles west what your beach would have looked like? >> we would have been in trouble but that's why they call at this time miracle strip. i thank the good lord for it. saved a lot of damage on the hotels. we have really been lucky. we got a mess, but it won't be one we can't clean up. >> shepard: you look along front beach road. that is right along the beach. you can throw a rock if you're good at it from front beach road to the gulf of mexico. along front beach from what i've seen, things look good. what have you seen? >> it does. everything looks good. i've been pretty much up and

down it this afternoon. i don't see a lot of damage. couple things, signs fell on a building and, you know, a lot of power lines down. some areas -- we caught a very, very good stroke of luck this afternoon. >> shepard: you really did. i wonder about the older homes from back in the 60s and 70s that are down not only stilts but on the ground. did they fare okay too? >> i'm looking at a building of mine, an old doughnut shop that we built in 71, my daddy and i, out of scrap. a little bit of damage on a master. other than that, nothing. this is the third real bad hurricane that it's been there. i'm not sure that those old ones didn't do good. i'm in an old neighborhood here. a lot of old beach houses here that look better than the new

ones i've seen. >> shepard: my dad will say what you do, son. they don't build them like they used to. i know because every time the storm comes along the new ones are gone and the old terrible ones are still standing. worth visualizing. we were afraid. the national hurricane center was afraid this time yesterday that panama city beach was going to get mowed under and it didn't happen. can't wait to get to the miracle mile to see it again soon. mr. mayor, thank you. a business alert happening now on fox news channel. the breaking news is from the dow, the nasdaq and the s&p 500. they're all in the toilet today led by big tech and huge pressure from treasuries. susan, what happened? >> okay. we were down worse than this. >> down 750 at one point. >> yeah. hovering close to 800 points down. there's concerns that rising interest rates with the ten-year yield, a lot of consumer loans like mortgages are based off of

that. so if interest rates go higher, does that crimp the consumer? a lot of big companies in this country have gorged on cheap debt for the past ten years. if interest rates go up, they have to pay out more. do they invest back into the united states, so they hire more workers. do they spend more into the u.s. economy. a lot of people are saying, look, this is like the biggest single day decline since april. we've been in a 9 1/2 year bull market run. that's a long time. >> shepard: sure. the numbers aside, the concern is about inflation. whether the cost of everything for everyday people because of the trade wars and other things, if the cost of everything goes up, they have less money to spend and the company can trash. >> and you have to raise interest rates if you're the federal reserve. bull markets have been historical trends where the federal reserve rates going up have actually cancelled out and

killed bull market runs. but inflation, by the way, is also a good thing. when prices are going up, the economy is doing well. people are finding jobs and able to spend. >> shepard: not too much inflation, please. >> not too much. can i leave you with one thought? >> shepard: real quick. >> u.s. exceptionalism. you're going to lose money in europe, asia. that's how i'll describe your hurricane coverage. >> shepard: so happy. sorry it hit tyndall air force base by missed the population centers. susan li, lots of coverage there as the market day is behinding up the dial on your cable. we wrap up hurricane coverage. glad to have you in from the fox news deck. if you're a veteran homeowner and need money for your family, call newday usa. a newday va home loan lets you refinance your home and take out 54,000 dollars or more to pay credit card debt, or just put money in the bank.

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the western side of eye wall hit in eastern panama still. callaway and parker are two towns on the east side of panama city. we were waiting to see what happened there. we've got pictures. kelsie is here. we have pictures out of callaway. >> this is callaway. this is posted on instagram. this house was severely hit. looks like more wind damage than anything. >> shepard: shouldn't be water there. this is inland. the western side -- >> yeah. >> a lot of trees down. >> yeah. >> shepard: you would have thought roofs might have come off, too. >> that's a messed up roof. >> shepard: here's the thing about the eye wall. moving forward at 14, 15 miles an hour. they only got the western side. it's not like it sat there for a

while beating them. >> trampoline, lawn mowers. >> shepard: some roofs. >> the inside of a house or garage. >> shepard: yeah. serious damage. callaway and parker. this is the dow. we're having a bad finish to the day. three minutes to the final bell. it cannot ring quickly enough. the dow jones off 800 points. more than 3% on the session. you know how the dow is. uncertainty freaks them out. today there's enormous pressure because of tech stock yields. there's no idea when this volatility will end. the dow is off 3%. the nasdaq off 4%. the s&p off 3% on the session. this is not the end of a bull market. but this is certainly an important day not to look at your 401(k). just make the decision, don't look at it.

maybe tomorrow will be a better day. i'm shepard smith in new york. "your world" with neil cavuto begins now. in two minutes. this business action. we'll have two more minutes i think what you'll hear by the end of the day, this information about the sell-off. they're plunging towards the worth loss in six months. tech companies took to take sharp losses. you can see the dow is down or was down 800 points. widespread losses as bond yields are high after steep increases last week. companies that have the biggest winders on the market in the last few years like technology companies, retailers, those big winners are the ones that are suffering the big losses today. the s&p 500 index is way off. about 3%.

it's on track for the fifth straight drop, which hasn't happened since before the 2016 election, if you can believe it. the dow has given up more than 800 points on the eggs is. the russell 200 index, it's off 2.5% as well what are the big companies that are losers? microsoft is one of them. it dropped 4% on the day. amazon skidding some 5% on the day. industrial and internet companies are getting hit hard. boeing lost 4%. alphabet, which is google's parent, gave up more than 3% on the day. so it's been a widespread and massive sell-off. i was about to tell you, i think all of the dow 30 components are in the bread today. many companies, many companies suffering sharp losses. now at long last, mercifully, the final bell tolls on wall street. they're clapping because that's what they do.

nobody except short sellers are happy about this. "your world" with neil cavuto starts right now. >> neil: all right. fox on top of two storms. barrelling through and hitting investors in the panhandle, hitting average folks that probably weren't concerned about the right end of your screen. i'm neil cavuto. it's been an awful day weather-wise in the gulf and an awful day at the corner of wall and broad. we're on top of each development. the situation with the hurricane and it's a doozy, michael at a category four, flooding and wind and a good deal of damage but could have been worse. i wish i could s