serious injuries reported, and that was our number one goal. things look quite good throughout the coast of north carolina. there's been minimal damage, and right now we have people from throughout the world beginning again to enjoy north carolina beaches. >> the fourth of july may be less enjoyable, though, for those in the northeast who will feel arthur's effects as the storm makes its way up the east coast. it's expected to pass east of cape cod with dangerous rip currents remaining. now i want to go to nbc meteorologist bill karins who has been tracking this storm for us with the latest. >> this hurricane wind in north carolina is a category 2. and tell you what. we've seen a lot of the damage so far. and it doesn't look that bad for a category 2. looks like we're really fortunate. the outer banks, they are built better than other areas. they are used to storms like this. and they really, really did well. as far as the storm goes, currently, racing away from virginia and north carolina. it's going to be a beautiful afternoon there.

all the bad weather has spread up into areas of new england and along the jersey shore. there's been a cold front that's stalled up in this region. that was responsible for some really bad thunderstorms the last two days. that's now picking up the moisture. you see it just spreading northwards. and that rain is moving through areas of long island, also into connecticut, rhode island. and we have flash flooding concerns. the storm itself still a category 1, move to the northeast at 24 miles per hour. that's a fast forward speed. this storm will be blowing by connecticut and cape cod later on tonight. and into nova scotia 24 hours from now. and then it will be just long gone and done. here's the official forecast path from the hurricane center. category 1 hurricane just south of cape cod by 8:00 p.m. this evening. and that's when some of the gusty winds and heaviest rains will be over the cape and the islands as we go throughout the early evening and then tapering off during the overnight hours. rain will be ending from jersey, new york and connecticut as we go throughout the afternoon. here's the wind field at 8:00. the orange being the tropical

storm force winds over the islands as we go through 8:00 p.m. this evening. that's the time to go inside and be safe. as we go toward 8:00 a.m. tomorrow morning, the winds leave the u.s. and that's when the worst of the storm will be arriving in nova scotia. by biggest concern is the heavy rains as we go throughout the afternoon. we could see as much as four inches in the area and potential for flash flooding. >> good thing they moved their fireworks display a day earlier. thank you very much. joining me from kill devil hills north carolina, sere dara dallof. the governor says he's ready to put his beach shirt on. doesn't look like we can see anybody behind the beach there. >> it is fair to say that everyone has switched from hurricane mode to holiday mode. people out here on the beach today, i hope you can see some of them behind me enjoying putting their toes into the water, enjoying the light winds we're having, being able to fly some kites here. was a very different story early this morning when this area was getting battered by winds about

60 to 70 miles per hour. some rains coming in sideways and those howling, howling powerful winds. one thing that is still hanging around that officials are cautioning people about is the water out here. you can still see that it's still churning here behind me. and they say that under that foaming wave, there is a dangerous rip current. and they are really urging people not to go swimming out in that water although we've seen people out there. a couple surfers who are not ready to resist those waves. that rip current is so powerful that even if you are an experienced swimmer it may be overwhelming for you. and the governor wants to keep that ratio he's holding right now of no serious injuries and no deaths as a result of hurricane arthur. >> sarah, talk to me a little bit about some of the erosion there. i think you mentioned you'd seen it in the past 24 hours. how is that doing? >> the beach front changed pretty dramatically. we lost about three feet. earlier today, right about here

was a real sheer drop off. you can see already it's kind of being smoothed over. we're going to expect some of that sand to kind xhf back in the next three to four days. obviously, it's not all going to come back and this beach isn't due to be replenished for about another two years. so beachgoers coming out here today are noticing about three feet of beach erosion. >> all right. sarah dallof reporting in kill devil hills. we appreciate it. joining us now by phone from pamlico county, chris murray. thanks for being with us here. >> how are you guys doing? >> we are doing well. we're looking at some of this video of the damage of trees down with the heavy rains and winds. considering that that storm has passed, what is the most pressing concern for you in your area right now? >> actually right now, we're in very good shape. most of our power has been restored. very minimal flooding. we did have some trees and power lines down. the weather is beautiful here today. i know our friends to the north

in ocracoke have experienced more damage than we have. >> 44,000 people remain without power. what specific areas were affected there and what's the status of the effort to get the power back on for those people? >> here in pamlico right at the mouth of the pamlico sound, the noose river, we're in good shape again. our power company has been vigulent. they've been out all night and early morning. have got most of our residents restored and tourists are in town for the holiday weekend. hopefully we'll carry on without incident. >> in this day of post-katrina, post-irene, post-sandy, people are sensitive when it comes time to hurricane season. how well were people there in pamlico county able to prepare for this storm? >> i think people here were very prepared. irene taught us a big lesson in 2011. we took a severe hit. we did have one of our county shelters open and we sheltered about 50 folks and 10 animals

last night for the duration of the event. >> talk to me about fourth of july celebrations. i'm sure you had a lot of adjustments and postponements and cancellations had to be made. >> everything is back on schedule here locally. we have a couple local events going on in our surrounding counties also have some events. we've had to move fireworks around but the show will go on. >> minimal cleanup for you all and a matter of get something power back on. so you all can be safe as you do it. happy fourth of july. we appreciate your spending this afternoon with us here filling us in. >> you, too. have a good weekend. >> you, too. as arthur moves on away from north carolina, the northeast is bracing for potential damage from the storm as it turns north toward cape cod. joining us from long beach, new york, nbc correspondent ron allen. those waves are crashing right behind you, ron. >> yes, they are. they've gotten much bigger during the course of the day since we've been out here.

we're almost at high tide. not quite. they could get even higher. earlier, there were surfers out there but not anymore. it's been raining here for the past couple of hours. pretty steady rain. and as i was looking don t inin beach, i was counting. i counted about seven people in addition to myself on the beach here. but there are still lifeguards in position down there. you can probably see if we sweep the camera in that direction, the lifeguards are on duty but there's nobody in the water, and that's good for them. but they'll be here until the afternoon. but there's still a concern about how much rain we're going to get and how quickly it's going to happen here. in this part of the state and others along the coast, still flash flood warnings in effect. some going to the evening hours. some forecasts say the rain should stop around 6:00 or 7:00 this evening eastern time here today. who knows. at this point, people are hunkered down. out here earlier. there were bikers, joggers, people get something exercise on the boardwalk up there that you can't quite see in front of me.

they're all gone. everybody is inside trying to have a nice fourth of july at home because it's a complete, complete washout. like i said, there's about six or seven people here besides us. >> all things considering, it is the fourth of july. it is a huge, huge weekend especially there on long beach. considering what the community went through sandy, everybody is like, if this is what we have to go through, we'll deal with it, right? >> exactly. because when sandy hit two years ago or so, this entire area was completely covered with water. and the water raced through and knocked out that boardwalk and ended up in down a good ways into town. the whole area has been fortified. a huge steel barrier under the boardwalk that protects the town. we're not getting knock li inti that this time around. everybody we talked to here, the lifeguards, town officials say

they just hope people don't take all this for granted and don't get too complacent about the situation because it's not a huge storm. it's still potentially deadly. it's still potentially serious, particularly if you go into some of these waters. there are a lot of riptides, rip currents along this beach because of the unevenness of the sand bars. lifeguards we were talking to earlier say it comes in clusters but they always have to go there and make those rescues. they've not had to do that today or this season as of yet. that often. so perhaps people are heeding the advice. but it's still very dangerous time to be in the water, unless you are -- even if you are a surfer and are very experienced. don't take it for granted. stay inside. tomorrow, saturday, sunday, supposed to be beautiful days. >> but again, you know, heed those warnings even tomorrow when the sun comes out and those blue skies. those rip currents will still be there. ron allen, we appreciate it. stay with msnbc for continued coverage as we track arthur throughout the day here. well, we are taking you

right now to wilmington, north carolina, for a briefing of from the u.s. coast guard. captain shawn murtaugh is providing that update. let's listen. >> carefully check your boats for damage from the storm. monitor the weather closely, especially if you are heading offshore. see if conditions offshore are still rough. make sure you wear your life jacket. and make sure you have the proper safety equipment. if you are new to both and don't know what the safety equipment is you are supposed to have, please reach out to the coast guard. we can help you out with that. we have a coast guard auxiliary that can go over to your vessel and tell you what the required equipment is to have on board. know the waters. and know especially now after the passing of hurricane arthur that the waters will be more treacherous and less easy to navigate and to get around. be aware that there's storm debris floating on or just below the surface. and for those who choose to go in the water, be advised rip

currents are still a serious threat. we're wishing all of north carolina's residents and tourists a very happy fourth of july. and please stay safe out there. and we'll go to questions and answers in a few moments. but i would like to introduce ms. beth dawson the vice chair of -- >> that is captain shawn murtaugh in wilmington, north carolina, warning beachgoers and fourth of july revelers to be careful even as you saw a little part of the cloud and a glimmer of sun coming through as hurricane arthur made its way through north carolina, now headed up the east coast and the northeast here. we'll bring you the latest on hurricane arthur throughout the day here on msnbc. up next, alone and scared. undocumented children and families accosted by angry protesters. a processing center in california now at the center of the immigration crisis. will the next bus expected to arrive in the next few hours be blocked and turned away like the previous one?

♪ during the cadillac summer's best event, lease this 2014 ats for around $299 a month and make this the summer of style. ♪

welcome back. president obama celebrated the fourth of july this morning by speaking at a naturalization ceremony in which 25 active duty service members, veterans and military spouses became united states citizens. >> every one of us, unless we're native american, has an ancestor who was born somewhere else.

and even though we haven't always looked the same or spoken the same language, as americans, we've done big things together. we won this country's freedom together, built our greatest cities together, defended our way of life together. we've continued to perfect our union together. >> he did reference a broken immigration policy. in the meantime, protesters in southern california, the city of murrieta say they'll continue to protest the relocation of immigrant detainees to a local border patrol post. on tuesday, protesters blocked three buses carrying about 140 immigrants, many of them mothers and children. and forced the buses to turn back. nonetheless, the federal government is expected to move forward with its plans to bring detainees to the murrieta facility maybe as early as tomorrow. joining us live from murrieta is miguel almaguer. thank you for being with us. we see the action there. we see law enforcement. give us a sense of what the scene is like building up to this today. >> reporter: there's about at

least 50 or 60 protesters behind this police line. they are being kept behind this line to keep the other opposite end of this line open for possible buses that may arrive here full of undocumented immigrants. this is the facility where they'd be processed and later released from. about 140 so undocumented immigrants which could arrive here later today. but the protesters are being kept back. what makes this situation a bit different from tuesday is, yes, on tuesday they were divide by two sides of the street. protesters are all mixed together. pro and anti demonstrators behind us. so far it's been relatively peaceful. they've taken one person into custody. doesn't look like an official arrest. for the most part this protest very lively though for the most part also very peaceful. >> peaceful in the sense of a contrast from tuesday's protest where those protesters were chanting, usa, usa, go back home. have you spoken to any of the protesters there right now?

what are they saying? >> the protesters say they are here for the duration of today. we expect -- the city said there was a potential for the buses to arrive on the fourth of july. they say they will stay here all day long and try to do what they did on tuesday which is confront those buses and turn them around. the scene is different. the police are here. they've created a police line. last time that department happen until the buses arrived here. we'll see if those buses arrive and if the protesters honor the police line. >> there was that controversy last time around that the local law enforcement there did little or nothing to stop the protesters. what's the case now? is local law enforcement saying anything about stepping up? i see them lined up behind you. >> police got out here early and muf moved protesters back. they created this line. this didn't happen on tuesday. whin the buses rolled up last tuesday, everyone crowded into the street and blocked those buses. now they've got this whole part

of the road shut off. there's another road that comes right into the facility from the back end. that is also open. and police say they have not created any road blocks down the street. if buses do come to this facility, one would expect they'd come from the other end but we don't know what will happen and we don't know if protesters will stay behind this police line. we shall see. >> if those tensions escalate, we know you'll be watching it as we will as well. thank you, miguel almaguer in murrieta, california. live from your washington, d.c., bureau is ben johnson, executive director of the american immigration council. thank you for being with us. happy fourth. >> happy fourth to you. >> on this fourth of july, everyone is looking at immigration reform, what the federal government can do and what the president can do as far as how we deal with these unaccompanied minors and the mother and children crossing this border. what exactly needs to be done? >> really two separate issues in terms of comprehensive

immigration reform. the fact is congress does need to quit kicking this issue around like a political football n get to work fixing the system. but what we're seeing at the border right now is really a separate issue. some can overlap but mostly a separate issue. these folks are fleeing an obvious upturn in violence for the sort of northern triangle of central america, guatemala, honduras and el salvador. we've seen in honduras alone, 350% increase in the murder of women and children over the last three years. so these folks are fleeing real violence. and i think quite frankly these protest doefsters do not speak values and perspectives of most americans. most of these folks aren't going to be able to stay here. the overwhelming majority will have to get turned back and return to their country of origin. really the question is, how are we going to treat them while looking at the facts of their cases and are we going to look at the facts of their cases? so i think everybody can agree, the thing to do is find out how many of these kids, how many of

these mothers and children and how many kids that are by themselves, how many of them are fleeing real violence and have potentially a try to stay and how many can be returned safely. let's look at the facts of these cases first. >> we've seen efforts by the u.s. government tackling it there with ad campaigns seeing keep your kids in this country. don't take the risk as we've seen it's become deadly with some of these kids crossing the border. let's talk about the president and what he said that he'll take executive action by the end of the summer on immigration reform pursuing nonlegislative ways to adjust immigration without having to wait for congress here. what do you see him doing? >> i hope that he'll take some action to alleviate some of the dysfunction of the current immigration system. the executive branch has a lot of authority in this area. there are some aspects of the law that he can -- that he can have an influence on. how the immigration law is enforced. he could really start to grant some specific parole status to some folks. i don't know whether he'll go that far. i hope he'll consider those kinds of measures.

but, really, the -- at best, he is going to be able to have a little band-aid solutions to the problems we face. this system really isn't going to get better until congress does its job and starts legislating to reform this system. if there's a disagreement with the president, i would encourage the house of representatives to reflect those disagreements in legislation rather than just rhetoric. >> we see certainly the passion there as we did just moments ago. scenes from the protesters in murrieta, california. ben johnson joining us from washington, d.c. happy fourth of july. >> happy fourth of july to you. up next, 20 years of empowerment at the essence festival. plus, arthur is weakening as it pulls away from the north carolina coast. but the churning waters are still affecting the beach. the latest on the storm and the dangers still lurking next. first -- happy independence day from our service members. >> this is specialist beau from kandahar, afghanistan, wishing everyone from spokane, washington, a happy fourth of july. >> hello from kandahar airfield

afghanistan. >> we're the 128th detachment from the utah national guard. >> we miss our loved ones back home and just want to say -- >> happy independence day! otos, i'm saving a ton of time by posting them to my wall. oh, i like that one. it's so quick! it's just like my car insurance. i saved 15% in just 15 minutes. i saved more than that in half the time. i unfriend you. that's not how it works. that's not how any of this works. [ male announcer ] 15 minutes for a quote isn't how it works anymore. with esurance, 7 1/2 minutes could save you on car insurance. welcome to the modern world. esurance. backed by allstate. click or call.

♪ [ male announcer ] it takes two hands to eat a manwich.

leaving zero hands to save the universe. hold on. it's manwich. welcome back to msnbc. live coverage this fourth of july. we hope you're enjoying the holiday. i'm frances rivera. want to get you updated on the top stories. the california highway patrol is investigating a violent arrest caught on camera. a motorist used his video to capture what appears to be a highway patrol officer repeatedly hitting a female suspect after she resists arrest. the video does not show what led to that altercation. the details of the arrest have not been released. one of the nation's most influential contributors to conservative causes has died. richard mellon scaife was an heir to the mellon banking institution. he gave millions of dollars to help fuel the impeachment of

president bill clinton. he was 82 years old. and extra happy fourth of july for the winner of a $259 million powerball jackpot. he's come forward to claim his prize. he was an actor before joining a religious community and taking a vow of poverty. he plans to use his new fortune to support performing arts organizations around the country. so paying it forward. good to see. of course, the top story we're following this afternoon is hurricane arthur which has been downgraded to a category 1 storm after battering the north carolina coast overnight with heavy rain n winds up to 100 miles an hour. north carolina governor pat mccrory said damage from the storm was minimal but still urged residents to exercise caution. >> even though many of the beaches are open and we're still evaluating some of the outer bank beaches, please listen to lifeguards, look at the warning flags, do not get in the water. if the lifeguards and local

authority authorities. we could have riptides further up and we do not want any casualties at this point in time. >> joining me from kill devil hills, sarah dallof. those waves are crashing there behind you. tell us more about the conditions right there. >> the conditions are night and day difference from earlier this morning when we had winds of 60 to 70 miles per hour in this area and rain coming at us sideways. as you can see now the sun is coming out. we've got blue skies with clouds. take a look at the ocean. is nowhere near churning and angry as it was before. however, officials say this is where the hidden danger is. and they are warning people to stay out of the water. and it's -- they say even if you are an experienced swimmer it can grab you so fast. they are worried about that with such record crowds here for this

fourth of july week. about 250,000 people, visitors here, in addition to the year-round residents who live here. the governor wants to keep that statistic of no major injuries and no casualties. he wants to keep that going and make sure everybody has a happy and safe fourth of july post-arthur. >> i know a big concern is a lot of people who don't have power. about 44,000 people without power. what impact did it have in kill devil hills as far as fourth of july. did fireworks have to be canceled? are they going to be on for tonight? >> celebrations are already getting under way. people are out here in their flag shirts enjoying that. as for the power, like you said, about 44,000 people without it right now. however, stores were reporting sales yesterday of lanterns and batteries. so hopefully a lot of people were prepared for these power outages. as for the celebrations, like i said, some of them already

getting started on the beaches and waiting to find out later tonight what going to happen. kill devil hills not very badly affected by this storm. like i said, winds of 60 to 70 miles per hour. about 30 minutes south, however, they had a real bad 101-mile-per-hour winds recorded there. so a lot more of a battering than we got up here. >> hopefully after they clean up they'll be able to enjoy a little bit. start the grilling as the governor put it. put on their beach shirts and enjoy a little. sarah dallof, thank you for being with us this afternoon. stay with msnbc for continuing coverage as we track arthur here throughout the day. now to a major fourth of july tradition. the essence festival is urntd way in new orleans highlights empowerment and entertainment with an all-star lineup of speakers and performers, including sprint winclude ing prince who is supposed to take the stage tonight. you are not in purple yet. maybe you'll switch out of your

red, white and blue later for the festivities. for the few who may not know, tell us what makes this such a major event every year. >> this is the big event every year. the 20th anniversary is bigger than ever. this festival is the largest live event in the u.s. six times larger than coachella, six times larger than south by southwest. $231 million made last near and 534,000 attendees. it's a rite of passage for so many major acts like beyonce performed here last year. her second time performing here. you have janet jackson, major big a-list celebrities come through the essence festival. and a lot of people from the community come here and get involved. >> we certainly saw that earlier. really more than just music and the big party. there's definitely a purpose. what are some of the issues that will be discussed at the essence festival. earlier we spoke with a mom from moms against guns demand action. what are the other issues being

brought up? >> there's some really great area called the empowerment zone. we have people like steve harvey talking about how to act like a success and everything that you do in life. up next in a little while alicia keys. probably the biggest name on the empowerment stage. melissa harris-perry will be moderating a panel empowering black women to end the aids epidemic in our country. it's a time for the magazine to come to life. it's a guide book for so many women and men. i grew up with as the magazine all over my house growing up. it's a guide book in a way for people to really see and aspire to better and you feel that when you are in the room here. so many thousands of people already here. and they really are empoured. should be called the essence empowerment festival. >> you said you grew up with the magazine around your house. talk about the "essence" 20 years ago and the "essence" magazine we see today and the significant difference during those decades. >> i was talking to my mom last night on the phone.

when the magazine first came out in 1970 there were no magazines on shelves and grocery stores with black women on the cover. it was a way for women to aspire for better. my mom raised me in a small town in ohio. in the magazine you can turn through the pages and see so many great stories about so many actors, authors, women that were ceos of companies. it's inspired generations of people. you see that at this festival. >> you enjoy it on this fourth of july. when prince comes on, please, rock it out for me with some little "red corvette." >> i'll be singing. >> you better. chris witherspoon in new orleans, thank you. and happy fourth. msnbc is growing hope at the essence festival. today through sunday if you are in new orleans in the area, visit us at the convention center to meet msnbc hosts al sharpton, joy reid and tamron hall and share your hopes for change in our communities. still to come the good news on the economic front. why president obama says we're making progress and what it all

means for you. plus -- more of you are expected to be hitting the roads for some fun this independence day weekend. but how much more will it cost you to fill up that tank? first, a happy fourth of july message from our troops. >> hi from kandahar, afghanistan. i'm major choli. i want to send a hi to my friend and family. >> i'm jesse diaz at al adeed air base. i'd like to wish my family, friends and all of el paso, texas, a happy fourth of july. another left his shoes on the plane... his shoes! and a third simply doesn't want to be here. ♪ until now... until right booking now. ♪ planet earth's number one accomodation site booking.com booking.yeah!

can i get my actual credit report... like, the one the bank sees? [ male voice ] sheesh, i feel like i'm being interrogated over here. [ male voice ] she's onto us. dump her. [ pay phone rings ] hello? oh, man. that never gets old. no, it does not. [ female announcer ] not all credit report sites are equal. experian.com members get personalized help and a real credit report. join now at experian.com with enrollment in experian credit tracker. no doubt the fourth of july weekend usually means fireworks, good foods and lots of stars and stripes everywhere and travel. lots of travel. in fact, aaa travel forecasts that 41 million americans will make trips of 50 miles or more over this extended holiday weekend. almost a 2% increase from the same period last year. so, you know what that means. a whole lot of traffic.

a lot of delays. a lot of money spent on your gas tank. americans are expected to pay an average of $3.67 per gallon this weekend. there's some good economic news here for the holiday from the june jobs report. the labor department reported that 288,000 net new jobs were created last month and the unemployment rate dipped to 6.1%. a nearly six-year low. markets reacted to the news. the dow jones closed about -- above 17,000 for the first time ever on thursday. and president obama hailed the jobs report as a sign of progress while speaking at the tech incubator 1776. >> this is also the first time we've seen five consecutive months of job growth over 200,000 since 1999. and we've seen the quickest drop in unemployment in 30 years.

so it gives you a sense that the economy has built momentum, that we are making progress. we've now seen almost 10 million jobs created over the course of the last 52 months. >> now for more on the administration's reaction to the positive economic news, we go to white house correspondent kristen welker. thanks for being with us. happy fourth. >> hey, happy fourth to you. thanks for having me. >> we love having you here. let's talk about the bragging rights earned by the administration with the fifth straight month of job growth above the 200,000. how confident is the white house feeling about where the u.s. economy is headed and can this be leverage as far as momentum politically? >> absolutely. they are not popping the champagne just yet. there is still work to be done but no doubt these numbers are welcome news to this administration. as you pointed out, president obama was touting the fact that this is representative of an economy that is getting much

stronger. white house press secretary josh earnest on friday used it as a chance to talk about the fact that -- to argue the point the president's policies have worked. things like the recovery act and also the auto bailout. the administration is hoping it will add fresh momentum to things like getting the highway fund reauthorized. that's a fight that we're going to see play out between the white house and congress this summer. but there is a broader point here which you point out. this is going to help democrats who are locked in tough re-election battles. there's no doubt about that. the republicans only need six seats to take back the senate. the democrats locked in a really tough fight to try to hold on to the senate. this is something that will help their momentum. if you look at the polls, the number one thing that voters care about, the economy. so this is something that democrats everywhere are cheering on this holiday. >> talk about the politics in this as we see the signs of growth. how the republicans are responding and wanting to make

sure those champagne corks don't pop at all as you were mentioning. >> you are absolutely right. they were quick to respond to these jobs numbers as well. rnc chair reince priebus had to say, quote, we'll be glad to see americans found work last month but we can't rest until jobs are easy to find. that's why republicans have passed dozens of jobs bills in the house of representatives. this is an argument that we have heard consistently from republicans. they talk about the fact that they have passed a series of jobs bills. the reality is, those bills are never going to pass through the senate because the senate democrats say that there's just too much funding that's being slashed in those jobs bills. there some are weaknesses, though in this report. i anticipate republicans are going to highlight the fact that short-term hiring increased during june. so there's still some problem spots for the administration. certainly for the economy. still, this is a jobs report that democrats are enjoying.

republicans probably see it as politically challenging. back to you. >> all righty. kristen welker for us from the white house. thank you so much. happy fourth. hope you can enjoy it. >> you, too. joining us to explain what this positive economic news may mean to you is nicole woo from the center for economic and policy research. hi, nicole. happy fourth. >> happy fourth to you. >> when we see the markets at record high levels here, but unemployment still above 6%. the first question becomes, is this just a recovery for the rich or across the board? is everybody sharing in this good news? >> well, the june job numbers really were good. we saw broad base gains in many different sectors. manufacturing, restaurants, health care. it was a very good month. having these five months of over 200,000 jobs being created every month for five months as the president said is a great sign that there will be some more momentum, we hope, in this economy. that can lead to better jobs and

better wages. and then the middle class and working class folks will start feeling this recovery. >> let's dig a little deeper what's behind it. while unemployment is down 6.1%, increasingly more of the long-term jobless are dropping out of the workforce. is the unemployment number dropping for bad reasons, in essence? >> that is something we have seen throughout this recovery. but in june, we actually saw a turn around. and that the unemployment rate actually dropped for good reasons. we saw that the employment to population ratio, that's the proportion of our population working, rose to 59%. that's the highest number we've seen in the recovery. it is still below where we were before the recession. it was at 63%. so we still have a ways to go. it's still going to take us 2 1/2 to 3 years, even at this rate to get us to where we were before the recession. so it's good news but we still have pretty far to go. >> for everybody else, let's talk about the federal reserve. they hadn't expected

unemployment to fall this low until the end of the year. it has some worried the fed will be moved to raise interest rates to stem off inflation. how likely is a move by the fed and how would raising the rates impact ordinary americans? people out there saying, maybe we should sell. maybe it's time for us to find our first home. how will those be impacted? >> it's always hard to predict what the fed will do. but it would be early to raise interest rates. as you said, the unemployment rate is still higher than normal. we're still 6 million jobs in the hole. for us to get back to the trend where we were before the recession, we still need to add a whole lot more jobs. so hopefully the fed won't put the brakes an the economy by raising interest rates any time soon. happy fourth again. >> you, too, thanks. when we come back, tensions are high in the gaza strip today surrounding the funeral for a slain palestinian teen. the intense and emotional scene today as his body was released to his family. and how the recent violence affects the potential for peace

between israel and the palestinian people. e on car insurance. everybody knows that. well, did you know words really can hurt you? what...? jesse don't go! jesse...no! i'm sorry daisy, but i'm a loner. and a loner gotta be alone. heee yawww! geico. fifteen minutes could save you fifteen percent or more. jesse? and our luggage was immediately... taken to... stolen from... our room. the hotel manager was clearly behind it. he was such a... kind man. con man. my husband wanted to... hug him. strangle him. and to this day we're still in contact with... the manager. the police. i wish we could do that vacation all over again. don't just visit paris. visit tripadvisor paris. [ male announcer ] with millions of reviews, a visit to tripadvisor makes any destination better.

tensions in the middle east continue to mount as the body of slain palestinian teen was released to his family earlier today under an extraordinary israeli security presence. palestinians smashed the windows of the ambulance taking the body to a mosque and carried his body head high through the streets. his death comes after the kidnapping deaths of three israeli students and continues to spark clashes between israeli forces and palestinians. and the growing tensions, israeli prime minister benjamin netanyahu is calling for restraint from israeli citizens and also warning about possible action from the israeli defense forces amassed along the border with the gaza strip if quiet is not restored to that region. joining me this afternoon from washington, d.c., is shibley, the anwar sadat chair for peace. he's also the author of "the

world through our arab eyes." thanks for being with us on this fourth of july. >> my pleasure. >> as we delve into this, let me play what prime minister netanyahu had to say about the death of the palestinian teen muhammad abu kadir. >> in both our lands, the rights of the individual are sacred. and the foremost right without which the others cannot exist is the right to live. i unequivocally condemn the murder of a palestinian youth in jerusalem a few days ago. >> that said, are netanyahu's calls for restraint enough to stem the violence, especially when the tension there is being called the worst in the region in recent years? >> yes, no question. and it's very important, obviously, to condemn it, and he did. and that's the right thing to do. the palestinian president mahmoud abbas also condemned the

killing of israeli teenagers. that's all important. but, obviously, it's what is the follow through. part of the complaint on the palestinian side has been that typically when there's violence against palestinians because they are under occupation, don't have full rights, usually it is not followed up. people are rarely punished and sometimes punished mildly. we'll see what happens. this is a particularly troubling case for the israelis to deal with. but nonetheless, it's interesting how this is unfolded. it's a tragedy. tragedy for israelis. tragedy for palestinians. and, yet, even though initially each side tried to exploit it one way or the other for the political purposes, they found that things can get out of their hands. emotionalism here, because of the nature of these killings. young boys. it's such that you can have escalation that is unwanted. and obviously, neither the israelis nor the palestinians

want to see an escalation but they can get there if they don't control it. >> you have to factor in hamas. the gaza strip is controlled by hamas. israel blames hamas for the death of the three israeli teens and has been pounding the region with air strikes for the gooft weeks. how can hamas hurt or help the level there? >> we don't know who carried it out. we need to -- there's no smoking gun yet and until there is such a thing, the mistrust between the israelis and palestinians means that they don't believe each other's accusations. so we need some evidence. hamas as a leadership doesn't appear to be interested in escalation. they've just entered into a national unity government with fatah faction. they've gotten a lot of acceptance internationally. even the u.s. didn't like it but acquiesces in it. their sense is if they escalate, it's going to hurt them more than it can hurt the israelis. so each side will have to de-escalate and each side is going to have to control those elements who might want to drag them into it. hamas may not be fully unified.

there may be factions within gaza who want to escalate. among the israelis, clearly it's not just that you have some military people like the ones who killed theyouth, but also y have militants within netanyahu's own government who want him to take harsher measures, and they are playing for the next elections. so each side is going to have to do a lot. that's where i think american diplomacy could kick in, and that's obviously where the u.s. sees the sense of urgency that has been created by these tragedies as a way to get them back to the negotiating table. >> the two sides have to do a lot as far as de-escalating the violence there, the tension, but proactively in starting peace efforts to get peace for a possible two-state solution there. we'll see. thank you for being with us. >> my pleasure. of course, here in the u.s. today marks a national holiday. we want to bring you some of the fourth of july-related headlines

right now. held one night earlier because of hurricane arthur last night was the annual boston pop's firework spectacular. one of the country's most popular july fourth celebrations. unfortunately, the event was cut short somewhat because of the severe weather there. had to be evacuated a little earlier. as fireworks and barbecues mark the nation's 238th year of independence today, there's another birthday being celebrated at 1600 pennsylvania avenue. today malia obama turns sweet 16, making her the first, first daughter to reach that milestone age while living at the white house since chelsea clinton. now eligible for her learner's permit, she'll likely learn to drive soon. so happy birthday to malia. the first lady warned, watch out on the streets in washington. she'll be behind the wheel. and over at coney island, there's at least one fourth of july tradition that happens rain or shine. today marked the 98th nathan's hot dog eating competition.

thousands gathered to watch contestants consume as many hot dogs as possible. this year's champion scarfed down 34. the reigning men's champion joey chestnut ate 61 dogs. just 30 minutes. you know what he did? he proposed to his girlfriend then scarfed down the hot dogs. how romantic, right? last year he set the world record with 69 hot dogs. congratulations. still ahead, tracking arthur. is the worst behind us? another update right after the break. a body at rest tends to stay at rest... while a body in motion tends to stay in motion. staying active can actually ease arthritis symptoms. but if you have arthritis, staying active can be difficult. prescription celebrex can help relieve arthritis pain so your body can stay in motion. because just one 200mg celebrex a day can provide 24 hour relief for many with arthritis pain and inflammation. plus, in clinical studies, celebrex is proven to improve daily physical function

so moving is easier. celebrex can be taken with or without food. and it's not a narcotic. you and your doctor should balance the benefits with the risks. all prescription nsaids, like celebrex, ibuprofen, naproxen and meloxicam have the same cardiovascular warning. they all may increase the chance of heart attack or stroke, which can lead to death. this chance increases if you have heart disease or risk factors such as high blood pressure or when nsaids are taken for long periods. nsaids, like celebrex, increase the chance of serious skin or allergic reactions, or stomach and intestine problems, such as bleeding and ulcers, which can occur without warning and may cause death. patients also taking aspirin and the elderly are at increased risk for stomach bleeding and ulcers. don't take celebrex if you have bleeding in the stomach or intestine, or had an asthma attack, hives, other allergies to aspirin, nsaids or sulfonamides. get help right away if you have swelling of the face or throat, or trouble breathing. tell your doctor your medical history. and find an arthritis treatment for you. visit celebrex.com and ask your doctor about celebrex.

for a body in motion.

hurricane arthur has now been downgraded to a category 1 storm and is moving north after making landfall late last night along north carolina's outer banks. and take a look at an image taken this morning by an astronaut on board the international space station as arthur passed over north carolina. north carolina's governor said today that more than 44,000 people are without power, but

there's been minimal damage and no fatalities. meanwhile, folks in the northeast are bracing for a wet fourth of july as arthur moves north toward cape cod, bringing with it heavy rain and dangerous rip tides. joining us from long beach, new york, nbc news correspondent ron allen. sounds and looks like that rain is coming down, ron. >> reporter: it is. the party is over here. you can see these red flags on the beach here. empty lifeguard stand. they've essentially closed the waters down. there's nobody here. these vehicles going by, just lifeguards doing maintenance work. but this is a bad time to be in the water. you can see the waves are crashing the surface high. they're expected to be anywhere from four to six feet or so. and rain steady now for the past several hours. it's been falling steadily. the question is, how much more rain will fall? things are shut down here. everybody's inside. there are no more joggers, no more bikers. everybody has gone inside to kind of ride this thing out. good news is that the winds are very calm, so it doesn't feel

like a storm. it just feels like a lot of rain. h this is, of course, the third day of a lot of rain in this part of the country. two nights of very powerful thunderstorms wednesday, thursday, and now this. so here's where we are. earlier today, there were surfers out. there were some swimmers out. now it's just completely deserted. there are still flash flood warnings in many parts of new york, new jersey, particularly low-lying areas, urban areas where floods tend to occur when rains come in a big deluge. that may happen tonight. it's unclear. the good news is the storm is moving up the coast very quickly. i think 25 to 30 miles per hour. so at this point, hoping it doesn't rain too long. back to you. >> yeah, as it makes its way through long island and up to cape cod. certainly the case, especially since they've been hit with sandy as well. those people definitely know how to go about it, right? >> reporter: indeed, this is

where sandy hit. again, nothing like that expected. people just trying to monitor the storm. stay inside and enjoy the fourth of july. >> all right, ronn. thank you so much. that wraps things up for me this fourth of july. make sure you enjoy, grill a little bit, enjoy the beach and stay safe.

due to mature subject matter, viewer discretion is advised. keep going now! if you got your hands in your pocket, you're wrong! if you got your hands in your jacket, you're wrong. >> the prison takes on a military-style feel both for the inmates -- >> don't come back in these blues. >> -- and the officers. >> do you know how your structure is set up? >> yeah. >> can you tell me? >> no.