To finish above 1700 for the first time in history. It is now up nearly 20 percent yeartodate. The records did not stop there. The russell 2008 its 4 record high of the year. The smallcap index up nearly 25 so far this year. The nasdaq up nearly 50 points in a 52week high. The wilshire 5,000 measuring the days paper gains of 2,705,000,000,000 on the year. Good ns on main street as well as wall street. The number of americans applying for unemployment topped 326,000 last week. That is the lowest level in nearly six years. Manufacturing growth accelered in july as well new orders surging in the Auto Industry continuing its strong comeback. Sales posting the best july performance since 2006. Chrysler, ford, gm of reporting doubledigitains. The economy, markets and ignoring the theater of the absurd today at our nations capital. The markets and t economy improved, the Obama White House struggles to maintain order domestically and yes, even abroad. Russia today allowed americas most wanted man, and as a liquor Edwards Snowden to leave the moscow airport after granting him a oneyear temrary asylum. The move that embarrassing blow to the Obama Administration was as which has charged him with espionage. Todays signal that it could hurt relations with moscow. We are extremely disappointed that the russian government would ke this step despite our very clearnd lawful requests inublic and pvate t have mr. Snowden expelled to the United States to face the ges agnst him. This move by the russian government underminethe longstanding record of Law Enforcement cooperation. Lou the white house says it is now aluating whether to proceed with a planned summit in scow scheduled for next month. On capitol hill silence from those who have called snowdon a hero. There was strong bipartisan combination. Here is senator chuck schumer. Russia has stabbed in the back, and each day that snowden is allowed to roam free is another tst of the nice. Lou wow. Well, senator john mccain called it a slap in the face of all americans. President Obama Meeting with lawmakers on both sides of the aisle to talk about the surveillance programs run by the National Security agency among those present that chairman ann ranking members of both the house incident intelligence committees. Critics to say that the nsa has exceeded its authority under the foreign Intelligence Surveillance act. All on capitol hill, acting Internal RevenueService Director daniel were folks will groby the house ways and Means Committee. The central focus of the hearing his agencys implementation of obamacare enforcement asell as the ongng congressional investigation of the irs targeting of conservative nonprofit nonprofit groups. Fox news chief congressional corresponden with our report. Cting commissioner was ask in the house ways and Means Committee hearing why irs employees want to be exempt from obamacare when it will play a key role with it. Why are your employees trying to exempt themselves from the very law your test to enforce . Seconds before myself. I prefer totay with the current policy that i am pleased with rather than go through a change if i dont need to. This as newly revealed emails suggests the irsay haae shared confidential tax informion with the federal election commision, a violation of law. The committee is demanding answers with the subcommittee chaian writing, the American Public is entitled to know whether the irs is an propriely sharing their confidential tax impression with otr agencies. Today he tangled wh texas republican kevin brady. He was assuring us that the irs, despite the significant abuse of power, already investigating, the irs has never shared private taxpayer information with other federal agencies. I am looking at an el from 2008 where lss lerner did actlyythat. I never assured that there are not incidences that occurred. We share informati roughly with 300 different federalnd state agencies as a matter of routine business. We have produres and safeguards in place. Lawmakers say in the pcess of investigating the ira starting of conservative groups that discove email between los lerner and the federal elections commission. The irs official now on paid administrative leave who cameo capitol hill and led the fifth after defending her actions telling the House Oversight committee she had done nothing wrong. Ways and means has released copies of six exchanges showing the name several times and her interaions with an sec attorney in the enforcement division. The irs has saiaid all along that it never should disinformation with other agencies. We n have emails that show that it is. If these exchanges, questions ked abouthether conservative groups, american futureund american issues project had received exempt statu. From the emails that we have seen now, it proves is clear that political appointees used both the irs and the federal elections committee. A conservative organizion who just wants to be involved in a demoatic process. Now way and means is asking for all irs sec email exchanges from 200 to 2012. The investigation continues, president obama has nominated a permanent irs commissioner. White house Officials Say a former freddie mac Board Chairman has the experience to restore Public Confidence in the irs and suggesthat we should noread too much into the timing of what was a bumpy day here on capitol hill. Lou thank you very much. For more on obamacare, the asylum granted by russia and the seemingly endless string of whe hou scandals i am joined by senator joh bourassa, republican poly cmittee chairman, member of theenate foreign collecteby Foreign Relations committee and several others. Thank you for having me. Lou lets start with obamacare. This is starting to feel like the train went that t speaker called it. What is going on here . We are talking 60 days from implementation of exchang. This is staing to look like an impossibility as well as a train wreck. Well, it is continuing to unravel. More and more people think that the health care l law will be bd for them. Actually, by three to one over people who think it will be good for them in terms of their cost and quality of care. Rememberwhat people were looking for from the beginng was access to care and Affordable Care. Theyre getting neither. We saw that with the irs agent who said, i like wt i have. The president promised that to people all aund the country, and people are now seeing of the cannot necessarily keep what they have if they like it. We have unions coming out against the Health Care Law inuding the one that represts the irs agents who are the enforcers of the Health Care Law. Democrats jumping ship in terms of the employer mandate as well as the indidual mandate. And those pass the house of representatives. Lou the employer mandate, the individual mandate to be tested yet. At this paw we are talking about spending a lot. I mean, as you point out, the National Treasury employees union that represents the irs and 16,000 agents thatre supposed to b hired to enforce a obamacare i love that expression. Enforce health care. This is really quite something. And the administration, does it have options here that it can exercise to buy itself time to recast this entire mess . That gets into thessue of what the administration was doing and whether it is legal o t. I would not think that the president has the legal autrity to just delay a partt3 of the law, being the employer mandate. In the same time same the individual mandate everyone has to buy government approved insurance by the first of the year, he wants to leave that part in place. So we know that the law is not just unpopular but it is also an hour and fair to how it treat american citizens. But th law is bad for peoples paychecks, jobs, as well as healthare. Lou and we are alleeling the effects of the tax increases that have accompanied the onset of obamacare. Lets turn to on other development that has to be at least in the sho term even more embarrassing to the president. Today russia gntin Edward Snowdon one years asylum in the white house coming out with a piffle that you hear from j. Hardly a robust, vigorous response to what was a slapn president bamas face. You are absolutely right. E white house was disappointed. That is what your third grade teacher used to say to you. They are not mad, disappointed. The president s recent with russia has failed. The leader of russia does not fear the united stes for this president. There are ings that we ought to do as we say we will not go to the summit. We will not have the 1on1 meeting that the president was supposed havent said petersburg at the end of the summer. Take a new lookt the whole strategic arms reduction actity that the president has committed to. I think it was a mtake. I voted against that, but we ought to beef upur missile defens to our allies in europe. Lou we should remind th dience as well that the president has basical proffered a reduction of onethird of nuclear weapons. It is sort of a sigof good faith to enternto a negotiation. Remarkable initiative, perhaps the most remarkaale the most remarkable ever taken by president and arms reduction. She did that when he went to berlin. You wanted to pretend he was john kennedy. And i believe that the russians at this point have no fear of the United States commoner respect for this president. It is because of the president s policies andhe way that he has behad as president of the United States. Lou us turn to thecand that the president andis folks are aggressively trying to pin a label phony on the scandals that now, which they now find themselves embroiled. I believe the presidency standingith t American People because they know the scandals are not funny when they talk to what has happened with benghazind the irs. People have been anxious about dealings with the irs. Now there is icy, wrong angry, and wyoming but the irs. The way it targets a speeific political groups, the way it wastes taxpayer money. We saw that with these different conferences that they have had, these terrible videos that have come out, all with taxpaye mone the irs is spending money with no respect for the taxpayers. Now you see the irs lobbying congress. The union has told irs agents Lobby Congress are you dont have to live under the obama Health Care Law which is the law of the youre bein paid to enforce. Lou as we watch all this unfolds, it is stunning,eally, that there is so little effort on the part of the traditional watchdogs. The fourth the state, liberal, national media. There ii no accountability. Is there likely to be any beyond the ballot box beginning next year . I expected more especially with the day that the optics the way that the white house and th Justice Burton has gone after rorters. The Associated Press oine subpoenaing a mouse going into the private dealings of the porters. Not theevel that you or i expect. We thank you for being with us. Afford to talking with you again soon. A keyor having me. Lou much more on the Obama White House scandals and the countdowto obamacare, talking with congresswom dianne black next right here. Stay with us. President obama declared the sequesterudget cuts to be devastating. Fox news carl cameron says t record straight next. Lou on wall street, stocks soaring to recd levels on upbeat economic news. All ten s p sectors moving higher. Gold dropping a dollar 0. 80 to 1,311 per ounce. Crude oil up nearly 3 just low 100 per barrel. The bond market soaring. And a federal jury today finding former goldman trader the breeze toward a high level for fraud for his role in the failed more is deal that cost investors a billion dollars. He faces pential fines of possible potential fines and a possible ban fromhe industry. The fight ov the federal budget set to heat up over the august reset. The socalled sequester cuts are a big point of contention, of course. The House Speaker today suggested a shortterm continuing resolution thawould giveoth sides time to work rationally on an agreement. The president that congress will have are you ready for this all nine days to reach a deal when they return from summer inistration warned of impending disaster from the first equestered deal. That has not been the case. Fox news chief Political Correspondent carl cameron will look at the reality. Presi obama and his party ha learned repeated warned repeatedly of dire consequences from the automatic federal spenng cuts known as the sequestered. Across the country these cuts will force federal prosecutors to close cases and potentially let criminals go. Border patrol agen will se their hours reduced. Fbi ages will be furloughed. Buthen air Traffic Controllers face furloughs congress and the president quickly let the faa find savings in other ways and ended t furloughs. Other agencies follow suit. Customs and Border Protection did belttightening tsa use a hiring freeze to recuse overtime. The department of education, agriculture, justice, irs, u. S. Park police and many others canceled or scale back furloughs dramatically. The Washington Post back shed fact checker gave harry reidor pinocchios for falsely claiming the cuts would cost jobs. Estimatts suggest it would be one sih of that. The president got for pinocchios for his false claim that there would be an immediate pay cat which was nevr contemplated there has been bipartisan concern and it comes to the Defense Department the to much cutting will weaken National Security. A former gop u. S. Senator insistede was not crying wolf with his complait that thats a bad consequences. Ending Army Combat Training center rotatio for brigades not deployed to afghastan. And imposing furloughs for 650,000 dod civilians. Instead of the threatens 22 days ounpaid leave, furlough days are being slashed to as few as six. This years automatic cuts total 85 billion nationwide with next year more than 100 billion in socalled sequester cuts scheduled. Government agencies are able to reduce most by eliminating waste d doing housecleaning, but many adjustments are only one time shot. Next years bigger cuts will almost certainly require even bigger readjustments. Lou thank you. Carl cameron. The senate today confiring cement the power to be the next u. S. Ambassador the united nations. The vote, a comfortable margin 8710 deste concerns about the controversial past comments about the unid stes. Well, if you thought eliot spitzer, anthony wiennr, and mayor bob feller could n get any more despicable think again. Running for new York City Comptroller was asked three times a day whethere is once again engaged in an extramarital affair. Here is what the once hooker happy loved of had to say. I am so tired of the personal attacks, and awered all those questions. Theyre rather superior former love of. Perhaps current former lov of. Anthony wiener making the new york mayoral race even more of a circus if you can imagine. The cereals sector winning the endorsement of a wellknown new yorker. He rose to fame with his campaigg tagline, the rent is to get my. And an attorney representing san diegos mayor ss that the city should paid and defend bob fuller against sexualharassment allegations because the mayor never received state requires sexualharassmentraining. What is the mayor to do. Up next the predents friends on capol hill throwing him an early birthdayarty in the chalk talk. We will show you tonight why he might not be in thmood to celebrate. Were coming right back. The average text takes your eyes off the road for nearly five seconds. [tires screeching] stop the texts. Stop the wrecks. Visit us at stoptextsstopwrecks. Org. [ male announcer ] a car that can actually see like a human usinstereoscopic cameras. And ev stop itself if it has to. The Technology May be hard to imagine. But why you would want it isot. The 2014 eclass, it doesnt just see the future, it is the future. Lou we will show you something to die that3 receivesso little attention people not een aware of the expense of what we will discuss tonight. The president turns 52 on sund we want to wish him happy birthday and with the early celebration the House Democrats giving him a birthday cake during a visit to capitol hill yesteay. Dark chocolate, only the best for the commander in chief. But on his birthday the president has not had a lot to celebrate. His clear politics job approval upsidedown. 45 percent approve compared at 49 percent that disapproved. The average approval for obamacare 40 approval with 51 pernt who oppose it outright. Not as were the president wanted to be two mths before the implementation of the exchanges. And obamacare is called to be a tra wracked by most republicans and some democrats. But the president meets with the regts this week to rally them to assure them he will campaign hard for them in the Midterm Election but a new study shows he may not be high in demand ashe thought. According the unirsity of virginia, the democrats and the this president has lostst 55 seats in the house since the bomngook office. And they lost four ses in the senate during that time. Democrats have lost nine governorships since 2009 and 607 state legislative jobs. Just think what a lousy record this president has with elections in you probab have not heard the mainstream liberal media of the catalog of what has transpired with the state and federal level. But the headlight here is very simple that will have democrats extraordinarily disturbed for next year a devastating recordikely to g worse next year. Chris dy wall points out going back to 1865 over 150 years oy one second term president has actually not lost a single n a in the election. Bill clinton 1998 those are impressive numbers from the Democratic Party but in eight days he and his family can relax on their vacation at marths vineyard and if this president needs a re with the agey director of his of his administration does not want any part oo obamacare we are coming righghback. 60 days andell obamacare 80 is not what wiing to change the Health Care Plan over todays confrontation onapitol hill. Lou a nationwide stomach bug is worsening with the albright officials and i would have reported the total number of cases at 400 in 16 states. 400 cases and where we bring you this information . At least 22 of those have been hospitalized and state Health Officials have linked the eldest to prepackaged salads. E cdc says it is too early to tell the source even though the fort mondays the first cases were reported in june. This is creating frustration for the healthgencys and others with the federal governnt with the cdc in all of those in closed doors and have them promising more tranarency but that is what we have to this point, 400 cases a and it is spreading. Turning to the acting irs commissioner to today mitted he was not cnge his current welfare plan to obamacare my next guest says we are of the 60 days away from implementatn at the time the Administration Says it is not ready about what is sure a trade representative. We now have from the house wa and Means Committee and also a member of the Budget Committee and a registered nurse for more than 40 years. Great to he you with us civic figure for having me on. You heard them say thats is just for all of us peasants. This is a trade iraq with the acting commissioner to say at what anything to do with it. Lou 16,000 of the agents are supports suppose to we forcing obamacare. When will it dawn on everyone this is a mess and its Something Better be done desperately . We had the hearing today to shed ght on a we have been looking after several months looking at the issue of verification. And secretary sebelius came before our committee 15 times we are ready to go with no delay. While we were celebrating the birthday of our country they can now with two provisions to say that we will delay and the other is the verification of income for subsidies. Lou data like the honor system when they come to give away government monday . Right. I had a question today then we shouldnt have it required any longer on the tax returns . We know that this is a train wreck and it is costing the hard working taxpayers if we dont verify their income. Lou it is absurd because we know for example, at this point medicare is estimated between 10,200,000,000,000 per year just with fraud alone. And those that are different we can look at the inspector generals report loing at 1 billion per year for just that program and another billions for tax credits but this is estited 25 billion of taxpayer credits t what if there is not a verification system . These are not provisions coming from the republicans they have been put in their with the employer verification somebody has access and theyre also looking to get those tax credits it is a recipe for huge amounts of fraud. Lou you will te ain to roll back the Affordable Care act . We continue to do everything we can to stop this trade wreck from occurring i believe the more we can do but what is patient centered in marketbased it is the way it should be done but the fact we cannot we have to do everything that we can to delay this tradd rereed have this huge amount to fund something that will not work at the end of the day. Lou thank you for being with us. Up next to another record day on wall street to talk with the chief economist at ubs stay with us. The boys used double miles from their capital one venture card to fly home forhe big family reunion. You must be garths father . Hel. Mother. Mother traveling is easy with the venture card because you can fly y airline anytime. Two words. Ouble miles this guy can act. Wna play dodge rock . Oh, you guys and with double miles you c actuay use, you never miss the n. Beard growing contest and go win whats in your wallet . Lou thimarket has a Record Number of millennial still livg with their parents despite all the good things happening and a new Research Poll shows 36 percent of those 18 through 31 years of age now live with their parents up 32 from back in 2007 and the marriage rates among the belittles millennial have plummeted just did represent our very compared to 30 in 2007 with newumbers ahead of the jobs report we have the chief u. S. Conomi from ubs investment research, a great to have you with us. Is this accurate . This is good news people ve delayed with a normally do with the momandpop and have babies after they get married. That is thepositive way and it is a great point paul socinus some serious scarring. We we are not out of yet but we will get ouof that. An respecting will go dow lou what type of numbers you expecting tomorrow and the mainder of the year . I think tomorrow we will be at 7. 6 or 7. Five but i think we can do seven at the end the year and then began a sixpoint t to 5 . Lou and how many jobs . Around 200,000. Lou that is a solid number. And as we watch this ocher when delicate these averages to see where we were seven nths ago this is great stuf and does it continue . I think that it does ince still having doubts with the recovery they start to bring in better nmbers from the gdp to help to goose the economy. We have seen some blips from the economy as a have a slight drop in construction spendi. We have mixed news. The contracts for new homes were up a still at a pretty high level but it has fall just a little bit but it usedo be at the margin the rates that went up those that were middle income word disqualified they hve bee disqualified for a l long time rates go up and pris go up and they try to beat the rush. Lou that makes all the sense in the world of course, with this economy buthe president yesterday wi Larry Summers and his record said he was attacked too much as a possible replacement for ben bernanke. To think that somebody needs a replacement and what does that mean . But this is Serious Business at dot recall having a selection of the federal share will ve a public discussion but i happen to think mr. Severs is qualified does so art othe. Also dodd is qualified to do the job. Not just those that are confident of the president. And now with the discussion with the vice chair principal economist highly regarded he is coided a dark horse at this point except foo summers why was even introduced . Professor summers has been a closeonfidante to obama it has a tremendous amount of confidence. But the head of the fed does not necessarily have to be the president s powell and infact, i prefer to see someone who is indendent of the white house. Lou words of wisdom. Thank you. Up next a summer of big budget flops for hollywood. And what we can expect if were going to stay in business. We will be right back. The jobs number it comes out friday morning. Matter what the number cover the administration and the3 media willis did it positive positive we will not. A quarter million tweeters musicare tweeting. Eamed. And 900 Million Dollars are changing hands online. Thats why the internet needs a new kind of server. One thats 80 smaller. Uses 89 less energy. And costs 77 less. Its called hp moonshot. And its giving the internet the room it needs to grow. This. Is going to be big. Its time to build a better enterprise. Together. Lou plot budget blkbusters bombing it is the best ever for movie studios of record now to join as with that paradox is the chairman of mandalay entertainment, peter good to have you with us. I dont know if there h been so much banks to buy yet we learn despite the big block buster flops you are making a heck of a lot of money. These have to make the bid for domes they have to focus on the franchise than there will be blood. Certainllone ranger if they dont live up to expectations ty are written down immediately you have to expect that but they have no choe if theywant to fund those big studios the have to make the big pictures. That does not disqualify anyone certainly i aidm it tramples the competition so ke a look of five films alunder par iron man iii, and then of steel, munsters university university, a despicable become a fast furious, all of those are not a solid for original idea of flying gaff irritated and then i demand a sequel. [laughter] let what producer i his right mind is think r. I. P. P. D. Would work . And johnny depp for crying out loud playing tonto. You have great talent but upside down ideas. At is going on. If your a studio and the producer and director at brought all of them they will make another sequel next year comes in with the piure with john depp with that costume maybe it is irresistle you haveo be the village idiot to say. Sohe studios are forced to look forsome certainty like proven, books sequels into a drive that certainty is inevitable and what that means when you get the franchise you make them like fl jacket gottschalks every two yes next year theyll say we will turn it down. No. There is another private already dancing and other fast and furious and more avengers and more and mor of the same the stios have to go bag. The tie gate China Movie Group with the production in the financing of the moviesappears to be a chn the product for the internationa audience. Look at it this way that is that what they called it a verysmalliece of the pie but today international is 2 tmes the domestic box office. 700 million . 300 million. That is what theyre doing. And how big of a play is set for the Chinese Market . Where are they in 10 or 20 years . I intend screens per day theyre very active and they want to use capil r china there some influenc with the market that is the meing and russia is emerging also in the and it is a huge market the production is enormous with a lot of capital. They try to make some of the elements to make it better. Not a bad time to be a movie star despite what we have seen it is always great and instructive to talk with you. Tomorr thh senator from misssippi joins us. [ horn honks ] [ male announcer ] once in a while, erything falls into perfect harmony. [ engine revs ] and you find yourself in exactly t right pce at the right time. Just be re youre in the right car when it happs. The 2013 cclass sports sedan. Power, performance, and style in total alignment. Neil and here you were worried about them collecting your phone records. Tens of the nsa has been collecting more than that. Forget about every color we make. Try every email we right, every chat room in whi we have a chance. What wtype, where we browsed, how ng we have been browsing, everhing we point and click catalog to by an agency his abuses are pathetic and sick. Here is what is en more alarming. Theyre still doing it. They are doing more of it. Slocum, everybody. Im neil cavuto, and it is enough to make even james bond blush