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it. >> ahead, what luis alvarez's family told him in his final moment and what his close friend, john feal, is telling us today. i'm trace gallagher in for shepard smith. there's word that president trump could be softening his strategy to dictator kim jong-un's nuclear arsenal after he took historic steps on north korean soil. "the new york times" says president trump might accept a nuclear freeze instead of total denuclearization. that means pyongyang would have to stop developing nuclear capabilities but not dismantle any existing weapons. john bolton is pushing back strongly against this report. yesterday president trump was the first sitting american president to enter north korea. this video is from north korean state tv. the president said with us a great honor and called it a legendary day. rich edson reporting live from the white house. rich? >> trace, administration officials say the position from this administration is still to get north korea to dismantle its weapons program. so there's that report in "the new york times" saying the administration officials are formulating the foundation of a position whereby they would accept a freeze. no full elimination of the weapons program in north korea. so the national security adviser john bolton saw that report and said "i read this "new york times" story with curiosity. neither the nsc staff or i have discussed or heard any desire to settle for a nuclear freeze by north korea. this is an attempt for someone to box in the president. there should be con sequences." north korea has pushed the administration to change their position to agree to give up on sanctions. the u.s. has refused and say the sanctions go only when north korea disarms. >> at some point, i'm looking forward to taking them off. i don't like sanctions being on his country. but they remain, yes. but at some point during the negotiation, things can happen. that's where we'll be talking and sanctions. >> the trump administration has forced china to live up to their sanctions too, on the books. >> moving forward what are the next steps? >> president trump says he and kim jong-un agree to establish negotiating teams to try to work through the impasse. that's something that the two agreed to a year ago in singapore. still neither side got to a point where they got to get north korea to give up or substantially surrender part of their nuclear program. north korea has lived up to its pledge from back in singapore last year that kim jong-un would not fire any ballistic missiles or explode any nuclear weapons. democrats say the administration needs to show more results than that. >> i have no problem with him sitting down with kim jong-un in north korea or anyplace else. but i don't want it to be a photo opportunity. the whole world's media was attracted there what will happen tomorrow or the next day? >> secretary of state mike pompeo says steve beagan, the representative for the u.s. for north korea will still lead the negotiations. the kruk of this and what is driving this has been the personal relationship between president trump and kim jong-un. in fact, this entire meeting yesterday happened when the president was in osaka for the g-20 and threw out a tweet and said hey, i'm going to be in the neighborhood and let's met at the dmz. it's unclear if they can begin to move past that on north korea's weapons programs. trace? >> that is unclear, rich. thanks. to get some clarity, let's bring in gordon chang, the foreign affairs journalist and author of "nuclear show down, north korea takes on the world." i want your thoughts on this "new york times" report saying there's a possibility the trump administration would look for a nuclear freeze instead of denuclearization. your thoughts. >> i was very surprised when i read that. i didn't think that it really reflected what was going on in the trump administration at this point. you know, if you go back, the clinton administration of george w. bush and president obama were accused of the same thing. those reports were not correct. so what we're hearing is essentially the same thing. a report like that does not deserve the attention its been getting. >> i know you have passionate thoughts about president trump going into the dmz. some argue, gordon, by him doing that, that he was signalling kim jong-un that it's okay just to do nothing, to not denuclearize, to just do nothing. but i want the play you some sound. this is from the director of korean studies at the center for national interests. listen to this and give me your thoughts. >> instead of going that direction, we now have a president where he's essentially pen pals with kim jong-un. i know a lot of people don't like that. i don't blame them, but i think we're a lot closer to a deal today than we have ever been. i actually do think the north koreans will engage with us and we will make that deal happen. >> so harry kazianis thinks it's a good thing. and you think -- >> i don't mind president trump having a good person relationship with kim jong-un. the most important thing is we see progress towards the disarmorment of the north. since that historic june summit in singapore, the north koreans have gone in the wrong direction because they've increased their production of fissile material. the way president trump can solve this and i think that he can do this in fairly short order is to enforce sanctions vigorously. if he does that, he will be able to put kim in a position where kim will either keep his nukes or keep power but not both. we need to cut off the flow of money to the north koreans and we can do that if we go after the chinese banks and other bad parties. >> but if they truly do start negotiating in earnest, gordon, in the next couple weeks, a month, would you say that was a bold but precise move on behalf of the president walking into the dmz? >> sure. i think that that was a sign of friendship. president trump has approached this in a very different way. that is to make kim jong-un feel secure enough so that he would give up his weapons. we can applaud that. at some point, unless we see progress, you know, we need to change course. president trump can change course as we've seen on a number of different areas where he's given these bad actors time to actually reciprocate friendship. when they don't do that, he uses american leverage. that's a good strategy. i'd like to see the president change course on north korea soon. >> at some point, these bad actors never change and north korea has exemplified that in recent years, gordon. >> yes. that's the problem right now. chinese banks, russian banks have been continuing the flow of money to north korea. we have allowed that. so in a city where we are, new york, bad money is going through banks violating federal law and we're not doing anything about it, trace. we need to change that attitude very quickly. >> you're in new york, i'm in los angeles. i get your drift on that. gorden chang, always great to see you. >> thank you, trace. >> meantime, ahead a nuclear message of defiance straight from tehran. the iranians announcing that they have broken the limits of the landmark nuclear teal, the one washington pulled out of last year. ahead, the uranium news and reaction coming up. but first, just in, a teenager has knocked five-time champion venus williams out of wimbledon. she lost in the first round of the tournament and she did it in two sets. she's the youngest player in the modern era to qualify for wimbledon's main event. venus williams had won two of these before she was born. gauff said the williams sisters were her idols and she was the reason that she picked up the tennis racket. she's unbelievable. movie theaters, exercise rooms and swimming pools, public cafes, bars and bistros even pet care services. and there's never been an easier way to get great advice. a place for mom is a free service that pairs you with a local advisor to help you sort through your options and find a perfect place. a place for mom. you know your family we know senior living. together we'll make the right choice. are yoown a home,, and need cash? you should know about the newday va home loan for veterans it lets you borrow up to 100 percent of your home's value. the newday va loan lets you refinance your mortgages, consolidate your credit card debt, put cash in the bank, and lower your payments over $600 a month. call today. and get the financial peace of mind every veteran deserves. >> iran has broken the rules of the nuclear deal and passed how much uranium fuel they're allowed to have. president trump pulled the u.s. out of the nuclear deal, but other countries have been trying to salvage it to prevent iran from developing nuclear weapons. let's get to trey yingst in the mideast newsroom. trey? >> trace, the iranians have made good on their threat to stockpile uranium. the country confirmed that they broke the terms of the 2015 agreement for the first time. he added that iran will enrich uranium pasted the 3.76% threshold laid out in the agreement. now with no sign of talks in the near future, the world is faced with a difficult question about how to respond to the iranians pursuing newer lack capabilities. trace? >> what is the end goal for the iranians, trey? >> they're looking for economic relief from the heavy u.s. sanctions. last week a group of countries including france, germany and britain worked to find a way for iran to worked around sanctions. iran looked to salvage the deal as too little too late with the stockpile breached and numerous attacks on oil tankers and the u.s. drone shot down last month, it does appear that the iranians are preparing for a negotiation with the u.s., trying to get more bargaining chimes to their side of the table. >> even though they said they were done negotiating. thanks, trey. a fox urgent now. a live look at the dow. in the last hour of trading, stocks jumped after president trump announced that he would restart trade talks with china. he also agreed to ease restrictions on u.s. companies doing business with the chinese tech giant huawei. lawmakers and some republicans called the company a threat to national security. john barosso says huawei is like a trojan horse stealing information from the u.s. you have to keep in mind in this entire trade thing, huawei's stock has dropped and now this is one of those chances to bring it back up. gerri willis live at the new york stock exchange. hi, gerri. >> it's been an old fashioned rally on the dow and the other indexes. the dow starting up 250 points higher. now just 84 points. still trading higher today are the chip stocks. sky works, micron, qualcomm, all of these stocks doing better now. so that's the good news for u.s. investors. they're excited about the fact that they can do business with huawei. i want to read the tweet from the president. he said at the request of our high tech companies and president xi, i agreed to allow chinese company huawei to buy product from them, which will not impact our national security that put a bid under these stocks. that's why they're higher today and presumably they can improve earnings. that's what's behind the move in the markets. it all depends on what happens next in the trade talks. trace? >> yeah, it does. there's some good news apparently for the u.s. economy. what is going on there, gerri? >> the u.s. economy has been in expansion longer than any other expansion. ten years without a recession, ten years without a slow down. now, you know, granted it's been a slow recovery. certainly not the 5, 6% we've seen in past years and other times but it's an expansion and we've had low inflation. so that's the very good news for this economy. you know, it's funny. people think the recession will end. the recovery gets old and it has to die. maybe not. maybe it continues. we're looking at possibly a rate cut this month. if that happens, well, anything could happen. the expansion could continue for years to come. trace, back to you. >> i'm just curious, gerri, what is wall street looking for for these chinese and american talks on trade? what is the next benchmark they're looking for to keep this rally going? >> so interestingly, i've been talking to traders about this for weeks. at this point, all they really care about is getting some kind of deal done. any kind of deal. they're not even particular about the particulars. they just want to see something in writing and something signed. so their standards are not that high. they want something to get done. i think that would really move the markets higher if that were to happen. i think we're quite a ways from that, trace. >> yeah. thanks, gerri willis in the new york stock exchange. thank you. ahead we're learning more about the suspect in the gruesome murder of a utah college student. we'll talk to a attorney and hear from friends of mackenzie lueck next. 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why wouldn't the contractor say something to somebody? i guess it's an odd request. it's probably not criminal. it's probably not something that you would bring to the authorities. when somebody asks you to sound proof their basement with hooks in the ceiling -- >> might have put you on the radar. there's things that they could have done. we see this often. people speak after the fact. so when we say if you see something say something, we need to practice what we preach. >> yeah, we know she flew in at 1:00 a.m. at 2:00 a.m., she takes the lyft. at 3:00, she's at this park, which is about 8 1/2 miles from where she lived or her parents left. everybody is asking, what is she doing at 3:00 a.m. in a park? >> police have not said if they know each other. but on social media, a lot of victim blaming. why would she meet someone at 3:00 a.m. in a park? why was she on a sugar daddy website? it's so unacceptable, this woman did not deserve to be killed. the only person that believes to be blamed is the individual that killed her. so we saw some journalists writing questionable things about this woman and what she chose to do in her personal life. i don't like that. >> trace: do we have the police chief now? i want to play the police chief's sound about the technology aspect of the whole investigation. watch. >> investigations of both the arrested persons and mackenzie's phone records show the location of their phones to be at hatch park within less than a minute of each other. this was the same time that mackenzie's phone stopped receiving data for location services on june 17 at approximately 3:00 a.m. >> trace: you talked about that it's fascinating. you go back to the scott peterson trial, a decade ago when he was on trial for murder. they talked about the pings from the different towers. that's about as extensive as the technology got. now they can place you anywhere any time within minutes of somebody else. >> big brother is watching. as we see the increased use of technology and apps and lyfts and ubers, we're seeing more and more of these cases being cracked based on digital foot prints. we saw it in the aaron hernandez case. >> trace: so you say what is next in this? these investigations are phenomenal in how they can pinpoint people. is that a good thing? can that lead legally to big-time problems? >> there's privacy concerns. but the police get search warrants. so it goes before a judge. they prove their case and do it legally. to the extent these searches of phones and social media are legal without a search warrant, that's a problem. >> trace: not shaming this girl for what she did but there's a cautionary tale in here what in the world are you doing at 3:00 a.m. in the middle of know where? >> a teachable moment for anyone using sites. be smart, be cautious. no victim blaming. we'll see what happens. we don't have all the facts. police are still investigating. it's not looking good for this defendant at this point. >> thank you as always. >> good to see you. >> trace: jurors set to begin deliberations in a navy seal accused of murder. edward gallagher telling our cameras that he's not nervous at all. that's ahead. and some tense times and tear gas in hong kong. police versus protesters in a fight for government building. and potentially the future of the city. that is next. i can't tell you who i am or what i witnessed, but i can tell you liberty mutual customized my car insurance so i only pay for what i need. oh no, no, no, no, no, no, no... only pay for what you need. liberty. liberty. liberty. liberty. ♪ on a john deere x300 series mower. because seasons change but true character doesn't. wow, you've outdone yourself this time. hey, what're neighbors for? it's beautiful. run with us. search "john deere x300" for more. >> trace: a fox urgent. closing arguments in the case of a navy seal accused of murders an isis prisoner. the jurors should have an interesting time with this one. he says that some of his navy seals are framing him. one witness testified that he was the actual killer. our chief correspondent jonathan hunt live with more. >> trace, you know, pretty much every day i asked chief gallagher if he feels good. he said yes, i feel good. i asked him if he's competent. he said yes, i feel very confident. today no different. outwardly chief edward gallagher seems as calm as ever. >> how nervous are you as we get close? >> i'm not nervous at all. >> now, in the closing argument today, navy prosecutors again brought up the paragraph gallagher took posing with the body of the dead isis fighter. the testimony of two seals that said that they saw chief gallagher stab the fighter and the series of texts that he sent. prosecutors putting them on a large screen for the jury, including one text that read, "cool story behind this. got him with my hunting knife" and putting the photos on the big screen, too. prosecutors summed up their case saying "the government evidence is chief gallagher's words, chief gallagher's pictures, chief gallagher's seals." the defense getting underway with their closing argument right now, trace. >> trace: what is their argument, jonathan? >> the defense argument from the very beginning has been that this was a case concocted by a small group of seals in seal team 7 who were driven by personal animosity. that theory was bolster by lieutenant commandser robert briesch saying that some guys didn't like eddie gallagher. he said nobody on seal team 7 made any claim of a murder for months after the team returned from iraq in 2017. the jury will be asked to begin deliberations later this afternoon. gallagher faces seven charges. the most serious of which is murder. legal experts that we have spoken to believe that is a tough charge on which to get to beyond reasonable doubt. given that there is no body, there's is no autopsy, there's no physical evidence and there is a claim by another seal testifying under immunity that he, not gallagher, killed the isis fighter. now among the lesser charges, trace, is one that is essentially conduct unbecoming. that stems from gallagher taking photographs with the body of that dead isis fighter. the problem for him on that charge is those photos do exist. he did take them. we've seen them. every member of the seven-man military jury has seen them, too. so if you look at the charges overall and you look at a standard of beyond reasonable doubt, that charge, condition duct unbecoming would appear to be the one in which gallagher faces the greatest legal jeopardy. that is a far cry from being convicted of murder. having said all of that, this is a jury trial and we know all too well anything can happen once they retire behind closed doors to consider their verdict. trace? >> trace: you touched on something very important. this is not your basic 12-person jury trial. this is a military trial. we should point that out. >> it's very different. a jury of seven. they are all men. they have all served, most of them have actually seen combat. you have to get a 2/3s majority in this case for a conviction, in any military trial. they round that up because it's seven, so you have to get five saying that he's guilty on any one of those charges. if they don't get to five, no such thing as a hung jury trial and he walks free. they need five of seven to convict on any single charge, trace. >> trace: jonathan hunt live in san diego. thank you. a powerful bomb killed one and injured 26 children. it happened today in downtown kabul, afghanistan. many of the children cut by shards of glass after the bomb blew out windows in a private school. the taliban taking responsibility for the bombing as it holds peace talks with the u.s. the groups calling for u.s. and nato forces to leave afghanistan within six months. washington is pushing for a year to 18 months. police in hong kong using tear gas and riot shields to move in on protesters. the group was inside the legislature's main building tearing down portraits and spray painting pro democracy messages on the wall. people angry about a bill that would send suspects to mainland china for trial. that bill suspended. protesters want the government to withdraw it and also calling for democratic elections. this marks 22 years since china took back control of the former british colony. susan li has more. >> it's a chaotic scene in hong kong. police confronting protesters that stormed anti-government headquarters on the anniversary of the city's return to chinese rule. 22 years ago, a british flag was lowered and a chinese flag was hoisted. these violent clashes, which have been the worst since the hand over of the city, expresses the fear and frustrations of hong kongs leaving their freedoms and promised by beijing for another 50 years under the guise of two systems. that's been tested with kidnappings off the streets, the loss of hong kong rights to democratic elect the city's leadership and now chosen by beijing. the latest being the extradition law that would have allowed not only for hong kong residents and foreign nationals including americans to be sent to china to face trial. that resulted in the biggest protest hong kong has ever seen with nearly 2 million of 7 million residentses taking to the streets in the early part of june. hong kong's leadsership and beijing backed down in this case, suspending the extradition law. it's another reminder that hong kong is a chinese controlled city and beijing is really in charge. >> susan, why is hong kong so important for china? >> financially hong kong is where international investors vest into china. it's been where billions and trillions have been funneled in. so the financial center for the asia pacific for the majority of multinational companies, this is important to china, especially as it modernizes. they want credibility and influence on the world stage. so beijing is trying to balance the financial importance of hong kong with a need to retain chinese-style rule and sovereignty over the territories. trace? >> trace: susan li live in new york. thank you. but first saying good-bye to an american hero. family members and friends planning a funeral for retired nypd detective luis alvarez. he died saturday after a long battle with cancer. the funeral wednesday at 10:00 a.m. at a church in queens. alvarez rushed to ground zero when the twin towers fell 9-11. for weeks, he helped dig through the piles of debris searching for victims. authorities said the air was safe. we later learned it was toxic. 18 years later after 68 rounds of chemo, doctors told him there was nothing else they could do to fight his stage 4 cancer. last month, luis went with jon stewart and other 9-11 first responders to capitol hill. he pushed lawmakers to provide long-term funding for the 9-11 victim compensation fund. the fund intended to help survivors pay their medical bills but it's running out of cash. senate majority leader mitch mcconnell says that congress will hold a vote next month to set aside more money for the fund. days after luis visited washington to testify, he posted on facebook about how his liver shut down. all treatment stopped. luis knew he didn't have much longer. he wasn't ready to stop fighting. he reached out to shepard smith's team and said he wanted to do one last interview to advocate for his fellow 9-11 responders and here's some of his final message. >> i did what every other fdny, nypd, ems worker, everybody. i'm nobody special. i did what all the other guys did. now we're paying the price for it. i'm leaving them with -- without a father. there's plenty like me. we need this bill passed, shep. it has to be passed quickly and efficiently so we would never have to come down to washington again. >> just a heard wrenching interview. that was his son next to him. luis died surrounded by loved one. his family said that he won the battle by the many lives he touched by sharing his three-year battle. he was at peace with that. ground zero recovery worker and activist john feal say our hearts bleed today and we mourn the loss of our dear front. our grief is short and we fight tomorrow. bill de blasio said he will award alvarez a key the city for his work and sacrifice. luis alvarez, retired nypd detective and american hero, dead at the age of 53. not for a moment forgotten. with all that usaa offers why go with anybody else? 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>> trace: it's nice to see big papi is on the meant. family mess say flesh-eating bacteria killed a 77-year-old grandmother after a trip to the beach in florida. she was walking on the beach when she fell in a small hole and got a cut on her leg that wouldn't stop bleeding. days later, the family says they found her unconscious in her home and rushed her to the hospital after suffering two streaks and/or again failure. new laws set to take effect across the country today. they involve buying bullets to vaping in the workplace. the low-down on the new laws when we come back. hi, i'm joan lunden with a place for mom. when my mother first began to forget things, we didn't really know what that meant or where to turn for more information. looking back i wish we'd asked for help sooner. that's why i recommend a place for mom. it's a free service that pairs you with a local senior living advisor who understands memory care and can help you find the right place for your mom or dad. our advisors have helped thousands of families and can help answer key questions like: we all want what's best for our parents, so get advice from someone who's done it before. call today and talk to an advisor who knows memory care. you'll be glad you did. front slams on his the hbrakes out of nowhere. you do, too, but not in time. hey, no big deal. you've got a good record and liberty mutual won't hold a grudge by raising your rates over one mistake. you hear that, karen? liberty mutual doesn't hold grudges. how mature of them! for drivers with accident forgiveness, liberty mutual won't raise their rates because their first accident. liberty mutual insurance. ♪ liberty. liberty. liberty. liberty. ♪ >> trace: any minute now, reporters could be allowed in the white house to ask questions. it's a different event. iran will be the hot topic. they're beginning to enrich uranium that violates the 2015 deal. the white house has released a statement that reads "the iranian regime took action to increase its uranium enrichment. it was a mistake under the iran nuclear deal to allow iran to enrich uranium at any level. there's little doubt before the deal's existence, iran was violating the terms. we have to restore the longstanding proliferation standard of no enriching uranium. maximum pressure will continue on the iranian regime until their leaders alter their course of action. they have to end their nuclear ambitions." much more on that, breaking news and we'll have reporters and what they bring us. last week's democratic primary debates are paying off for some of the candidates. peter doocy live in frisco, texas where julian castro held a town hall after seeing a big boost in exposure. peter? >> julian castro is not one of the six contenders that are vying for the nomination to make the september debates and october debates if it was today. but it's not. he just told us that he just passed the 100,000 donor threshold so he's closing in on 130,000. that's the new dnc requirement. they made it twice as hard to make the fall debates as the summertime debates. he thinks he's on a good track. he explained about one of viral moments from last week's event down in miami, which is when he challenged beto o'rourke. castro said that he supports decriminalizing border crossing. beto o'rourke says he does not. castro said the two of them have not spoken since, but it was not meant to be a personal attack, just instead a policy-based disagreement that obviously got a ton of pickup from here. castro and many others in the field are heading to iowa. one of the other big headlines today and something else that we'll see in the early states is mayor pete. his campaign says they made almost $25 million from almost 300 or donors. for perspective, 300,000 donors is a quarter for major pete. cory booker's campaign says they're struggling to get to 100,000 and they started at the beginning of the year, trace. >> trace: when they get the results and the reaction from these debates, does it change strategy to where they go and when they go? >> it does. a big part of that, they don't pick the spots that they're going to go until just a few days before. most of the field has decided in just the last day or two and the coordination that they tried to do to get press coverage, they're going to go to iowa. so expect in the next couple days to see a lot of fourth of july parades all over the first caucus state with people from all over the map polling-wise. the top tier, joe biden will be there, all the way down. there's 25 plus depending on which count you look at. candidates ranunning for president. no matter how they're doing right now, campaigns are talking about if they don't do well in iowa, new hampshire will be harder, and south carolina really hard. super as to, good luck. >> trace: thanks, peter. we have breaking news. we're just getting word of a possible hazmat situation at a facebook mailing facility in california, this is happening in menlow park below san francisco. fire officials say a machine signals the presence of sarin, but nobody is showing symptoms. sarin is a deadly nerve agent. government chemical warfare experts say if you're exposed to it as a gas, you'll show symptoms in seconds. the liquid form could take minutes or hours. exposure could convulsions and stop your breathing. we're still looking to see if she is a false positive, a machine has detected the presence of sarin as a facebook mailing facility up in menlow park. tests are continuing there. we will bring you the latest as it comes in. today marks the first day in california that anybody buying acc you anything will have to go through a background check. the fox business network's kristina partsinevelos reporting live for us. >> trace, the reason why this law is so different compared to the other states that have permits, require permits, california is requiring you to have a background check at the point of sale. so any time you buy any type of gun or ammunition, they will scan your pass, scan your name in the system to make sure that you're not a felon or two, you haven't been banned from owning any guns, this comes about because 63% of the population voted for it last year. so they're enacting it now. the "wall street journal" reported there was a surge in ammunition sales leading up to july 1. gun advocates are going to say this will create a black market and you have the nra suing the block this law. >> florida has new laws as well. >> yeah. today is a big day. july 1. lots of laws. the first for florida. you cannot tech and drive anymore. it's illegal. you'll get charged $30 for the first offense, $60 for the next. and vaping is banned in workplaces in florida. this has a lot to do with the population voting for it, this happening july 1, trace. >> kristina partsinevelos, live for us in new york. kristina, thanks so much. and the california gas taxes went up. no surprise there. after our reporting here, we'll have a fox news update on facebook watch. it's a minute's long news cast online with unique content that streams live on the facebook watch home page a few minutes from now. once it's over, it's available on demand. neil cavuto, "your world" next. >> neil: it's happening again. more violent protests in hong kong as riot police were using tear gas to clubs to disperse crowds upset with china's growing dominance. all of this as the president is trying to jump start trade talks with china. the two go a long way deciding whether the talks succeed or china erupts. welcome. i'm neil cavuto, this is your confusing world food. none of this we should stress impacting the markets. the dow hit its highest level ever. the s&p closing out at a record as well believing that cooler

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