This is a rush transcript from "Special Report," February 4, 2020. This copy may not be in its final form and may be updated.

DANA PERINO, FOX NEWS HOST: All right. Thanks, everybody. That is it for us. Set your DVRs. Please, please, never miss an episode of THE FIVE. I mean, how could you miss this? We just gave you everything that you needed to know as a great catch up. "SPECIAL REPORT" up next.

BRET BAIER, FOX NEWS CHANNEL ANCHOR: Good evening. Welcome to Washington. I'm Bret Baier. Breaking tonight, the first results from Iowa are coming in. And with nearly two-thirds of the precincts reporting, Mayor Pete Buttigieg is out front of the two progressive candidates.

Bernie Sanders and Elizabeth Warren, with Joe Biden and Amy Klobuchar, almost tied with Biden. Here is what the Iowa Democratic Party says, it has from 62 percent of all 99 counties in Iowa.

Buttigieg leads with 26.9 percent. Sanders is next at 25.1. Elizabeth Warren is third at 18.3. Joe Biden is fourth 15.6 and Amy Klobuchar sits in fifth place. The results coming with an apology from the state Democratic chair after confusion and embarrassment over what they called a coding issue at last night's Iowa caucuses that kept them from reporting results until just about an hour ago and those obviously are not complete.

This comes as President Trump puts the finishing touches on his third State of the Union address beginning in three hours, which occurs hours before an expected acquittal tomorrow in his impeachment trial in the U.S. Senate. We'll tell you to what to expect in just a moment.

But first tonight, we're off to Des Moines, Iowa, where correspondent Ellison Barber has the latest on the caucus chaos. Good evening, Ellison.

ELLISON BARBER, FOX NEWS CORRESPONDENT: Hey, Bret. The Iowa Democratic Party, says they will continue releasing results as they become available. Right now, former Mayor Pete Buttigieg is speaking to supporters at a town hall in New Hampshire. He says regardless of what happens next, he believes this is an astonishing victory for his campaign.

A senior advisor for Senator Bernie Sanders, also weighing in, telling Fox News this, "We are gratified that in the partial data released so far, it's clear that in the first and second round, more people voted for Bernie than any other candidate in the field."


BARBER: Confusion.

SEN. ELIZABETH WARREN (D-MA), PRESIDENTIAL CANDIDATE: I just don't understand what that means to release half of the data.

BARBER: Disappointment.

SEN. BERNIE SANDERS (I-VT), PRESIDENTIAL CANDIDATE: Well, I mean, I think, we should all be disappointed in the inability of the party to come up with timely results.

BARBER: Frustration.

WARREN: So, I think they ought to get it together and release all of the data.

BARBER: 21 hours after the caucuses began, the Iowa Democratic Party finally released a majority of the results.

UNIDENTIFIED MALE: 10, three, caucus.

BARBER: Monday began like many caucuses before it. A Democratic caucus sites Iowans showed up signed in and then gathered in groups to signify their support for a particular candidate.

But then, a lot of those numbers did not make it to the state party as planned. Precinct leaders started to report issues submitting results through a new app. And then, egregiously long wait times when they tried to report the numbers over the phone.

Soon, candidates were taking the stage.

SEN. AMY KLOBUCHAR (D-MN), PRESIDENTIAL CANDIDATE: We know there's delays, but we know one thing, we are punching above our way.

BARBER: And then, heading to New Hampshire before anything in Iowa became official. Sources tell Fox News, the Iowa Democratic Party spoke with all of the campaigns around 10:00, Monday night. But instead of answering questions about the reporting delays, the party said they were working on getting paper results, and then, hung up.

The Iowa Democratic Party chair, now says there was a coding issue with the new reporting app. And while the app was recording data accurately, it was reporting out only partial data.

Staff had to fall back on paper results but the party chair says they were able to verify that the data recorded in the app and use to calculate state delegate equivalence is valid and accurate.


BARBER: The app was part of procedural changes made after issues in 2016. Right now, it seems that efforts meant to make this process more transparent to restore people's faith in the Iowa caucuses could have cracked the foundation of it.

For now, the Iowa Republican Party is standing with Democrats here, saying accuracy does not have a deadline. Bret.

BAIER: Ellison Barber and a windy Des Moines. Ellison, thank you.

Let's get some analysis of the Iowa situation from Fox News decision desk director Arnon Mishkin. Arnon, thanks for joining us.



BAIER: We are not making a decision. The decision desk is not based on the 62 percent of the vote from these precincts. Tell us what you see in these numbers.

MISHKIN: OK, well, we see two things. First of all, right now, the difference in the -- among state delegate equivalence between Buttigieg, who's right now ranked number one, and Bernie Sanders are ranked number two, and state delegate equivalence is not enough. We don't have yet enough votes to make a call.

At the same time, I'll tell you something fairly interesting that the Sanders people are right that about the first and second wave, the -- as first and final alignments, which is that Sanders actually did very well in the first alignment and in the final alignment as -- less well, in the final alignment as the conventional wisdom it always been that the liberal -- more liberal candidates were able to get out the vote.

And in fact, there is some argument that in the first alignment, Warren might actually be able to almost edge Buttigieg. But what that's a function of it to a great extent is, the more liberal candidates able to get vote out in the sort of college areas and alike, but when it comes to calculating state delegate equivalents, much like when it comes to calculating the Electoral College and the presidential election, the more moderate candidate or one of the more moderate candidates, Buttigieg was able to pull out and appears to be in the lead right now. That's the reason why it was able to get in late.

Whether or not that holds up, we don't know. But it's the difference is not yet large enough to be able to make a call.

BAIER: There is a map out there of Iowa and the different counties and who, which candidate won each area. Buttigieg seems to win the more moderate areas, even the rural areas. Biden has some real problems and it looks like some of the places he wasn't viable, perhaps his people went to Buttigieg.

Talk about just for a second, the Biden fourth place, and he's only leading if you look at the raw vote total, Amy Klobuchar, about 380 votes.

MISHKIN: Yes, I know, that's -- I mean, this is clearly not -- this is clearly a bad showing for Joe Biden based on the vote we've seen so far. I would argue he dodged the bullet in that -- this data did not come out until today. So, he got on a plane to New Hampshire.

And to a certain extent, this story is not going to be as widely covered as it would have been had the data come out yesterday.

We're only going to -- we're going to see whether or not Biden continues to be able to raise the kind of money that's going to be required to mount the kind of campaign he wants to mount, and what the implications are going to be in New Hampshire. But I'd say, all, all fingers point to what happens in New Hampshire.

And if Biden has a similar showing in New Hampshire, that's a very challenging position for him to be in.

BAIER: Final thing, do we have any information about when the rest of these numbers are coming in, or when we, as a network, might be able to, you know, get some more information to make a call?

MISHKIN: We do not know exactly when that information is going to come in. Frankly, I suspect the Iowa Democratic Party does not know when the information is going to come in.

We are seeking to find out to get further information. But, so far, the Iowa Democratic Party has not been forthcoming. And for that matter, if they were given the last 24 hours, how much credence will we put in that?

BAIER: Yes, and how much credence would the candidates put in that as well?

MISHKIN: Yes, and precisely.

BAIER: All right, Arnon Mishkin, we appreciate your time. Well, hey, we'll try it again in New Hampshire.

MISHKIN: We'll try.

BAIER: Thanks.

President Trump State of the Union address comes under extraordinary circumstances. The president enjoying his highest ever approval rating in one survey, as the Democrat effort to remove him from office appears to fizzle.

President predicting the speech will be long and extraordinarily low key in his words. Chief White House correspondent John Roberts, joins us live from the North Lawn with what we know so far about what the president is planning to say this evening.

Good evening, John.

JOHN ROBERTS, FOX NEWS CHIEF WHITE HOUSE CORRESPONDENT: Hard to think of anything with the name Trump on it that could be a low key. It's also hard to think of a time of greater political divide when a State of the Union address was given by a president of the United States. But with acquittal, all but assured tomorrow, and with the chaos of the Democratic Party in the Iowa caucuses. In a way, President Trump very much finds himself in the catbird seat tonight.


UNIDENTIFIED MALE: The president of the United States.

ROBERTS: The theme for tonight's State of the Union will be The Great American Comeback. President Trump touting what White House officials insist is dramatic economic progress since he took office.

MARC SHORT, CHIEF OF STAFF TO VICE PRESIDENT PENCE: Tonight he has an opportunity to say, look, in the last three years, we've had a remarkable economic turnaround with 7 million new jobs, lowest unemployment ever for African Americans, for Hispanic Americans, for Asian-Americans, for disabled Americans.

ROBERTS: The president's address will focus on five broad themes. The blue- collar economic boom, supporting working families, lowering the cost of health care, a safe and legal immigration system, and protecting national security.

11 guests personifying those themes will join First Lady Melania Trump in her box. Among them, the widow and son of a service member killed in Iraq by an Iranian made roadside bomb, the deputy chief of the Border Patrol, and a veteran who overcame drug addiction, and destitution through the opportunity zone program.

Tonight's speech will mark the second time in history a president has delivered the State of the Union in the middle of impeachment proceedings. But in 1999, Bill Clinton wasn't facing reelection.

Some of the president's Republican colleagues have encouraged him to ignore impeachment and focus on the future.

SEN. TED CRUZ (R-TX): I talked to the president this weekend and what I encouraged him, I said, Look, don't even talk about impeach --

BAIER: Limbaugh, says he's been experiencing --

CRUZ: Don't even know about it.


CRUZ: Layout your vision. This is what we've accomplished together, and this is what we can keep accomplishing.

ROBERTS: White House officials say the word impeachment is not in the president's speech. But with more than half of the chairs tonight occupied by people who want to take him out at the knees, will he go there?

STEPHANIE GRISHAM, WHITE HOUSE PRESS SECRETARY: I don't think so. I think that this has been going on for too long. And I think that if you look at the ratings, the American people are frankly, bored of it. I don't think people want to hear that.

ROBERTS: As it did with President Clinton, 21 years ago, impeachment appears to have improved President Trump standing with voters. A new Gallup poll has his approval now with 49 percent, his highest number ever in Gallup.

His approval among Republicans stands at 94 percent, while overall, 63 percent of respondents approve of his handling of the economy.

SHORT: While Democrats have been focused on this partisan impeachment, this president's actually been saying to focus on negotiating new trade deals with Mexico and Canada, a new trade deal with China, and the same time, eliminating the most dangerous terrorists in the world, the Soleimani and Baghdadi.


ROBERTS: Tonight's State of the Union address will serve as a template for the Trump campaign ahead. And while there are a couple of things, the President could get some ground with Democrats -- common ground with Democrats on, such as lowering the price of prescription drugs and infrastructure this year.

A lot of what the president will talk about is what would come in a second term if the president gets reelected. Bret.

BAIER: John Roberts, live in the North Lawn. John, thanks. Well, unless you live in Michigan, you may not recognize the person delivering the democratic response to the State of the Union tonight, and someone you probably would have recognized will not be in the audience for the president's speech.

Let's get that part of the story from chief congressional correspondent Mike Emanuel, live on the Hill. Good evening, Mike.

MIKE EMANUEL, FOX NEWS CHIEF CONGRESSIONAL CORRESPONDENT: Bret, Good evening. Top Democrats are turning to a new voice from a key battleground state for their response to President Trump. Gretchen Whitmer is the 48- year-old governor of Michigan, who was elected in 2018.

Whitmer has said, Democrats should focus on fundamentals people care about, like fixing roads and training people for better jobs. She will deliver her speech at East Lansing High School, where her two daughters are students.

Some suggest Whitmer could be on the running mate shortlist based on her communication skills and Midwestern roots. But she's trying to stay focused on her important role this evening.


GOV. GRETCHEN WHITMER (D), MICHIGAN: I believe that American people deserve better and they deserve action. They deserve leaders who are going to work for them, who want excellent schools and paths to good jobs, safe roads, clean drinking water, and affordable, accessible quality health care.


EMANUEL: There will also be a Spanish language response given by Texas Congresswoman Veronica Escobar. She says she'll talk about the progress Democrats have made for the people and efforts to confront the nation's challenges. Escobar came to Congress a year ago, representing El Paso.

Today, senators continue giving their 10-minute speeches on impeachment ahead of tomorrow's critical upper down vote on the articles of impeachment. Other Democrats are weighing in on tonight's State of the Union.


SEN. BOB CASEY (D-PA): The president's job tonight at the State of the Union is to bring the country together. It's not time for demonize and divide, it's time to bring the country together on a range of issues. Now, it doesn't mean he won't necessarily refer to the impeachment process.


EMANUEL: New York Congresswoman Alexandria Ocasio-Cortez, announced late today, she is skipping the State of the Union, and we'll talk to her constituents on Instagram live, instead. She calls it a deeply personal decision, one, she did not take lightly. Bret.

BAIER: Mike Emanuel, live on the Hill. Mike, thanks.

Let's bring in our panel now. Matthew Continetti, a founding editor of The Washington Free Beacon, Mara Liasson, national political correspondent of National Public Radio. And Susan Ferrechio, chief congressional correspondent for The Washington Examiner.

We will talk about the State of the Union and looking at that in just a bit. But first, the Iowa results that we have as we have them. It's not complete, Mara.


BAIER: But it does tell a story.

LIASSON: It does tell a story, the big loser, the Iowa caucuses. I think they are the thing that Democrats love to hate about the primary process. I think they didn't cover themselves in glory, and they're going to be hard- pressed to explain why they should go first next time.

But the results do tell us that somebody has probably won the raw vote total, Bernie Sanders. But Pete Buttigieg is probably going to come in with the biggest percentage of delegates.

And in the past, what the big Iowa prizes momentum. In other words, it doesn't have a lot of delegates to give you, there's only 41 there. But it gives you a boost to go off to the next state.

It was a little late and coming, was kind of confusing, maybe undercut the boost that it would get. But Pete Buttigieg, Bernie Sanders at the top of the heap, bad night for Joe Biden.

BAIER: Really bad night for Joe Biden.

LIASSON: Yes. Didn't even surpass the low expectations his own campaign that set, Bret.

MATTHEW CONTINETTI, FOUNDING EDITOR, THE WASHINGTON FREE BEACON: The most ruinous, you know. I wonder if this is going to make Mayor Pete reconsider his views on the Electoral College since the results we have now has Bernie winning the popular vote and Pete winning the adjusted vote that comes after?

LIASSON: Yes. Yes, yes.

CONTINETTI: Look, what I find most amusing about this whole episode is Democrats couldn't manage the Obama exchange web site. They can't manage the app for the Iowa caucus. And this is the same party that has a plan for that, according to Senator Warren, and is going to change your education, is going to change your healthcare, is going to change every single sector of the economy. It might give Independent voters pause.

BAIER: Also maybe a big winner. Besides, President Trump, watching all of this. But Mike Bloomberg, who may capitalize on the chaos.

SUSAN FERRECHIO, CHIEF CONGRESSIONAL CORRESPONDENT, WASHINGTON EXAMINER: Well, it may have created a lane for him because it's weakened the Biden. I think it just throws so much uncertainty into this race.

Look at who's leading right now. First of all, only 62 percent of the vote is in. So, it could be misleading. We really need all of the results. That's a lot of the pollsters are saying. We just wait and see what happens.

But say, Buttigieg is the winner, where does he go from here? He's probably not going to win New Hampshire. Then, he drops into single digits as we move into the next states. So, where does he go, even if he is the Iowa winner?

And then, no one gets momentum really out of this Biden, he may lose New Hampshire, but he's got his super Tuesday Southern firewall, which will give him an opportunity to show that he has a coalition of Democratic voters who support him. Older voters, African American voters. So, he has that going for him. But it just leaves everything up in the air because nobody really has a clear path right now.

LIASSON: That's the Bloomberg hope.


FERRECHIO: That's his lane, that's Bloomberg's lane. And he has the money to do it.


LIASSON: That is a modeled outcome from the first four states, either no one emerges as a real front runner and he has the money to do it.


LIASSON: And as he said today, I didn't compete in Iowa, I was in a state that we have to win in November, Michigan.

BAIER: Here is the Bernie Sanders' statement from the campaign. And that is, "We want to thank the people of Iowa. We are gratified that in the partial data released so far, it's clear that in the first and second round, more people voted for Bernie than any other candidate in the field."

Which is, Matthew, what you were saying, this change was made because of Bernie Sanders from 2016. And it looks like he's going to pull that out in the popular raw vote total. We don't know how he's going to finish in the final alignment.

CONTINETTI: But, look, I mean, that Biden firewall is going to catch fire very quickly. Biden has very few resources. He historically has been terrible at raising money.

BAIER: So, you're saying he survived to lose another day?

CONTINETTI: Exactly. And think about the contest. You have New Hampshire and then after that, Nevada where Bernie has also been competitive. So, that lead in South Carolina, in the most recent polls already down to five points for Biden, it will slip further. He is in big trouble, no matter what we've seen in the past. Joe Biden has been in politics for 47 years, he has yet to win a caucus for primary.

BAIER: So, the other thing you look at in this week. You have the president and his Gallup approval number at 49 percent. Republicans at 53 percent in Gallup, that which is significant.

You have the acquittal that's likely coming tomorrow. And you know, good numbers on the economy. It's increasingly, there are more and more people who look at that field and say, who is among them going to beat Donald Trump?

FERRECHIO: Well, I saw that gets between Biden and Sanders. They're just the two strongest candidates if you look at all the states.

BAIER: Even after Iowa?

FERRECHIO: Even after -- first of all, Iowa was a mess. I don't count Iowa yet, really as a determining factor here. I still think it's between Biden and Sanders because Biden can win minority voters.

But it's true. They look like they're in disarray. And yet, here is Trump in what not only was he at 49 on approval, he's at like, 63 or something on the economy. That is huge. People vote, you know, thinking of their wallets. That's at such a reflective thing when people vote.

And economy is doing so well. He's taking away anything for Democrats to really run against and run against each other, but they don't have a good theme to connect with voters on this. We're going to help you. We're going to help the working people that aren't feeling the economic boom.

Well, that's a smaller and smaller group of people. That's what all these numbers are showing us.

BAIER: And the disapproval number and approval is the narrowest it's been.

LIASSON: That's the key, because even though the president had fairly low approval ratings, what was really hurting him was the super high strong disapproved. That's what started to come down. There's no doubt that he won this news cycle.

CONTINETTI: And there's no doubt that he won the Republican Iowa caucus.

FERRECHIO: Well, yes.

CONTINETTI: With -- that was -- and we have no dispute there.

FERRECHIO: While he's on trial for impeachment. That's what's amazing.

BAIER: After two years of the Russia investigation.

LIASSON: There were -- there were no opponents.

BAIER: OK. Panel, thanks. We'll see you later in the show. Up next, we go back to Capitol Hill to set the stage for what is expected for tomorrow's impeachment acquittal vote. First here with some of our Fox affiliates around the country are covered tonight.

Fox 45 in Baltimore, as voters begin the process of selecting someone to fill the rest of the late Elijah Cummings' term in Congress. 24 Democrats, eight Republicans are on the ballot for the seventh congressional district special primary. The winners will run in the special election in late April.

Fox 40 in Sacramento as the governor of California wants to pause physical education tests for students over concerns with bullying and discrimination. The state has received complaints the current examination's measurement of body mass index is discriminatory to non-binary students because it requires students to select male or female.

And this is a live look at Seattle from Q13 Fox, our affiliate out there, the big story there tonight. Washington Attorney General Bob Ferguson is asking the state legislature to fund a cold case unit for unsolved sexual assault cases.

There's a backlog of about a thousands of rape kits that have not been tested and not enough funds for law enforcement to take on cases from the kits that have been processed.

That's tonight's live look "OUTSIDE THE BELTWAY" for SPECIAL REPORT. We'll be right back.


BAIER: Breaking tonight by this time tomorrow, the impeachment process for President Trump could be over, at least, for now. Senators will finish up their individual presentations tomorrow ahead of an expected vote to acquit or convict. Another Republican moderate has come out in favor of the president today.

Congressional correspondent Chad Pergram, live on Capitol Hill. Good evening, Chad.

CHAD PERGRAM, FOX NEWS SENIOR CAPITOL HILL PRODUCER: Good evening, Bret. Well, it's down to 1:00 this afternoon, Republican Maine Senator Susan Collins, said she would not vote to convict the president when it comes to impeachment.

Still in play, Republican Utah Senator Mitt Romney. Susan Collins, says voting to convict and remove the president was a bridge too far.


SEN. SUSAN COLLINS (R-ME): We shouldn't trust to the people the most fundamental decision of a democracy. Namely, who should lead their country?

PERGRAM: Fox has told that Collins vote to oppose the party in favor of witnesses last week was the vote she needed to show voters she wanted a full trial as she heads into a competitive reelection bid in a swing state this fall.

Remember that Collins's colleague from Maine, freshman Democratic Representative Jared Golden, split his votes on articles of impeachment in December. A senior Senate Republican source tells Fox, they expect unanimity on the Republican side of the aisle to acquit President Trump tomorrow. Mitt Romney has not officially announced his position.

So, at least 52 GOP votes to acquit. Senate Majority Leader Mitch McConnell, says it's time to check the House.

SEN. MITCH MCCONNELL (R-KY): We've watched a major American political party adopt the following absurd proposition. We think this president is a bull in a China shop. So, we're going to drive a bulldozer through the China shop to get rid of it.

PERGRAM: On the Democratic side, watch to see if Democrats Kyrsten Sinema of Arizona, Doug Jones of Alabama, and Joe Manchin of West Virginia vote to clear the president. Manchin is now floating an alternative to impeachment censure. But the appetite for that option is unclear. And it's not even in the Constitution.

Minority Leader Chuck Schumer is putting vulnerable Republican senators facing re-elections this fall on notice.

SEN. CHUCK SCHUMER (D-NY): It makes people believe, correctly in my judgment, that the administration, its tough people, and Senate Republicans are all hiding the truth, they're afraid of the truth.


PERGRAM: Democrats plan to use the votes tomorrow as a weapon against Republicans heading into the fall. Susan Collins, of course, is someone that will be watching, as well as other swing states Republicans, Thom Tillis of North Carolina, Martha McSally of Arizona, just to name a couple.

The breakdown in the Senate right now is 53-47 in favor of the Republicans. Chuck Schumer just needs to flip four seats to become the majority leader. Bret.

BAIER: All right, Chad Pergram, live on Capitol Hill. Chad, thanks.

Up next. Another possible coronavirus case here in the U.S. We'll bring you there. First, "BEYOND OUR BORDERS" tonight. Asylum seekers demonstrated on the Greek island of Lesbos for the second day to protest increasingly dire living conditions in and around the islands massively overcrowded migrant camp.

The protesters are also upset with delays in Greece's asylum application process.

British visual said they will ban the sale of new gasoline and diesel cars by 2035. Five years earlier than their previous target in a bid to speed up efforts to tackle climate change. Britain has pledged to reduce its net greenhouse gas emissions to zero by 2050.

Iran's top court has confirmed the death sentence for an Iranian man convicted of spying for the CIA. State media alleges that Amir Rahimpour shared the details of the Islamic Republic's nuclear program with the American spy agency.

Just some of the other stories "BEYOND OUR BORDERS" tonight. We'll be right back.


BAIER: Hong Kong is reporting its first fatality from the coronavirus. Deaths in China jumped by more than 60 over the past day to 425. Here in the U.S., health officials are trying to keep the numbers low and the fear under control. Correspondent Jonathan Serrie is in Atlanta tonight.


JONATHAN SERRIE, FOX NEWS CORRESPONDENT: Public health officials say a child under quarantine at March Air Reserve Base was taken to a nearby hospital after developing a fever. The child was among 195 quarantined U.S. passengers evacuated from China aboard this aircraft last week. Additionally, a commercial passenger arriving Monday in Los Angeles with no symptoms was placed under federal quarantine and transferred to the base as a precaution based on travel history. Federal officials are considering expanding strict screening measures already in place at U.S. airports.

CHAD WOLF, ACTING HOMELAND SECURITY SECRETARY: We are concerned about airports, but we are also looking at maritime ports as well as land ports of entry, so folks coming in from Canada and Mexico as well.

SERRIE: China has completed the rapid construction of one hospital and says more are on the way to house coronavirus patients in the city of Wuhan and Hubei Province, the epicenter of the outbreak.

HUANG PING, CHINESE CONSUL GENERAL IN NEW YORK: China is going to win this battle with your strong support.

SERRIE: This morning Chinese authorities confirmed the death of a coronavirus patient in Hong Kong, the second death outside the Chinese mainland. The first involved a Chinese traveler to the Philippines. The World Health Organization secretary general admonished nations to be more forthcoming with information about the virus' spread outside of China.

TEDROS ADHANOM GHEBREYESUS, WORLD HEALTH ORGANIZATION: Without better data, it's very hard for us to assess how the outbreak is evolving or what impact it could have.

SERRIE: The first patient to test positive for coronavirus in the U.S. have been released from the Seattle area hospital. Public health officials continue to monitor him as he recovers in isolation at home.


SERRIE: Of the 11 confirmed coronavirus cases in the U.S., this patient and eight others were returning travelers from China. The other two, spouses of infected travelers. Bret?

BAIER: Jonathan Serrie in Atlanta. Jonathan, thank you.

Judges on a Texas court are weighing arguments concerning an effort to keep a one-year-old child on life support despite the intentions of hospital officials who say the law gives them the final say. Correspondent Casey Stegall has the latest tonight from Dallas.


CASEY STEGALL, FOX NEWS CORRESPONDENT: Tinslee Lewis just celebrated her first birthday. Born with a condition called Ebstein's Anomaly, a heart valve defect, she's never been well enough to leave the hospital. Doctors say she is dying.

WINIFRED KING, COOK CHILDREN'S HEALTH CARE SYSTEM: All the things we have to do to keep her alive and keep her better, or keep her well, is causing her pain and causing her suffering. And we don't want to do that any longer.

STEGALL: Today the little girl's family was back in appeals court, their lawyer along with the Texas solicitor general trying to persuade a three- judge panel on why Cook Children's Medical Center should keep the one-year- old on life support.

TRINITY LEWIS, MOTHER: My biggest priority is getting Tinslee appropriate care so I can make the best decision for my baby. This situation takes away my job as a mother and lets other people who don't even know her decide whether her life is worth living.

STEGALL: The hospital is invoking its rights under a Texas law called the 10 Day Rule, which gives medical providers the right to withdraw life- sustaining treatment if the hospital ethics committee agrees with the physician's recommendation, though the Lewis family lawyer says it sets a dangerous precedent.

JOE NIXON, LEWIS FAMILY ATTORNEY: We've taken away the decision of life that belongs either to the patient or the patient's family and given it to a nameless, faceless committee.


STEGALL: The hospital says around 20 other medical facilities around the country were consulted with possibly transferring this young patient, but they say that no others would take the sick girl. In other words, they too agreed with the grim prognosis. No word on when the appellate court will render its decision, Bret.

BAIER: Casey, thank you.

Some record gains on Wall Street today. The Dow finishing ahead 408 today, the S&P 500 jumped 49. The Nasdaq hit a new record by closing out the day up 195 points.

While they continue to count caucus votes in Iowa, the Democratic presidential candidates already have moved on to New Hampshire. We will take you there next.


BAIER: Breaking tonight, we are continuing to follow the numbers. As we reported at the top of the hour, Mayor Pete Buttigieg, the midwestern mayor, is edging out the two progressive candidates Bernie Sanders and Elizabeth Warren, 62 percent of the precincts from Iowa reporting so far. Former vice president Joe Biden does not have a strong showing right now as he's currently in fourth, just barely ahead of Senator Amy Klobuchar.

As the results continue to trickle in, we are getting first reaction of them from Buttigieg himself. Correspondent Peter Doocy reports tonight from Concord, New Hampshire.



PETER DOOCY, FOX NEWS CORRESPONDENT: Mayor Pete is very moved by Iowa's partial results that show an openly gay candidate in the lead.

BUTTIGIEG: It validates for a kid somewhere in a community wondering if he belongs or she belongs or they belong in their own family.

DOOCY: Buttigieg says his website is getting more traffic than ever after a really late night traveling to New Hampshire from Iowa.

BUTTIGIEG: I'm so glad to be with you this morning. I think it's morning.

DOOCY: Pete Buttigieg took advantage of the early silence from Iowa's state party to continue claiming victory.

BUTTIGIEG: We had a chance to quiet those questions of whether we belonged in this effort in the first place.

DOOCY: Elizabeth Warren didn't want to make New Hampshire Democrats wait for Iowa results either.

SEN. ELIZABETH WARREN, (D-MA) PRESIDENTIAL CANDIDATE: Iowa is what it is. Right now, I'm in New Hampshire to talk to people about why I'm in this race and how we all need to pull this party together, and we need to focus on beating Donald Trump.

DOOCY: Amy Klobuchar is arguing that maybe there are five tickets out of Iowa.

SEN. AMY KLOBUCHAR, (D-MN) PRESIDENTIAL CANDIDATE: You guys are smart. Look at the amount of money spent on advertising in certain markets, including yours, including what has happened in Iowa. And the fact that I'm standing in the top five means there is so much good to come, because I have done this the right way, the grassroots way.

DOOCY: Michael Bloomberg wasn't competing in Iowa, but he was watching and noticing an investment opportunity. So he decided to double his already historic spending on advertising.

MICHAEL BLOOMBERG, (D) FORMER NEW YORK MAYOR: Yesterday I hear something happened in Iowa, or didn't happen, I don't know which. Still can't figure that out.

DOOCY: Still, Joe Biden is trying to put a happy face on the caucuses.

JOE BIDEN, (D) PRESIDENTIAL CANDIDATE: We had a good night last night in Iowa.

DOOCY: Before official word came down about which rivals did well, he zeroed in on New Hampshire's neighboring Senator Bernie Sanders.

BIDEN: Bernie has talked about the single-payer Medicare system for, health care system for the country, for 30 years now. Hasn't moved at an inch.

DOOCY: Now Biden is trying to manage what New Hampshire Democrats might think about how Iowa Democrats ranked him, joking about all the Trump surrogates sent to Iowa last night, and Russian interference.

BIDEN: Look, folks, there's a lot of lousy stuff going on.


DOOCY: Joe Biden should be here any minute at his first event since finding out those partial results show him trailing in Iowa as a different group of Democrats a half-an-hour away are celebrating Pete Buttigieg leading in Iowa almost seven days exactly to the minute from polls closing here in New Hampshire. Bret?

BAIER: Be there soon. Peter Doocy in New Hampshire. Peter, thanks.

Experts are warning the technical meltdown in Iowa could just be the start for this election season full of such problems. Correspondent Gillian Turner has details.


GILLIAN TURNER, FOX NEWS CORRESPONDENT: Cybersecurity experts began ringing alarm bells about the Iowa caucus app in the wee hours of the morning when the Homeland Security Department's cyber office said it hadn't been vetted prior to launch. The app's developer said the issue did not impact the underlying caucus data and apologized for the delay in the reporting of the results in the uncertainty it has caused to the candidates and Democratic caucus goers, worry bubbling up today on both sides of the aisle in Washington.

SEN. JONI ERNST, (R-IA): What we have seen is the involvement of some new technology that has failed quite badly.

SEN. BOB CASEY, (D-PA): It's an Iowa problem, but it's not a great way to start an election year, especially when people have worries about the upcoming election and the security of our elections.

TURNER: Acting Secretary of Homeland Security Chad Wolf confirmed to FOX News this morning the issue wasn't a hack.

CHAD WOLF, ACTING HOMELAND SECURITY SECRETARY: So this is more of a stress or a load issue as well as a reporting issue that we're seeing in Iowa.

TURNER: Wolf also says his agency offered Iowa Democratic Party officials assistance, but they turned it down. The party then pushed back, claiming its system had been tested by independent cybersecurity consultants. Cyber sources say the risks of relying on mobile app technology to tally and report votes doesn't stop with Iowa, flagging that other caucus states like Nevada also plan to rely on apps to record votes.

WOLF: This is a concerning event, and it really goes to the public confidence of our elections.

TURNER: Senators are now saying no matter what happens in other states, the damage to voter confidence has already been done.

SEN. JOHN KENNEDY, (R-LA): What happened in Iowa made Florida's hanging chads look like a model of efficiency. It was embarrassing.


TURNER: Nevada Democratic Party officials are pushing back tonight. They say they are not using the same app used in Iowa, and they insist they are more prepared. Bret?

BAIER: Gillian, thank you.

Next up, the panel on where the president is in all of this and the State of the Union address tonight.



STEPHANIE GRISHAM, WHITE HOUSE PRESS SECRETARY: He wants to tell the American people what he is going to do going forward for them. And then he is going to honor some really incredible guests that we're really excited about I think that go along with his policies but also are a good picture of this country.

SEN. BOB CASEY, (D-PA): If he's going to be the president that he should be, he should try to unify the country tonight.


BAIER: This speech, the president on the record said that it was going to be extremely -- extraordinarily low key, those were his words, that he put on the record today at the lunch with anchors, including myself. John Roberts is reporting tonight that the president will announce that he is awarding the Presidential Medal of Freedom to Rush Limbaugh during tonight's State of the Union speech. We also understand that Rush Limbaugh may be in attendance tonight. The radio talk show host, of course, announcing this week that he is fighting advanced lung cancer.

That's one of the elements of this speech. What else are we looking for? Let's bring in our panel, Matthew Continetti again, founding editor of the "Washington Free Beacon," Mara Liasson, national political correspondent for National Public Radio, and Susan Ferrechio, Chief Congressional Correspondent for the "Washington Examiner." Susan?

SUSAN FERRECHIO, "WASHINGTON EXAMINER": That's pretty big news to have Rush Limbaugh come. The announcement that he had cancer was just so devastating for tens of millions of people who are his fans and have been following him for decades. And he kind of defined the conservative movement after Ronald Reagan, so he is just a big figure in the conservative movement. So the president will really be reaching a lot of his base by making this announcement so soon after we heard this terrible news about Rush Limbaugh. I think that's --

BAIER: Limbaugh obviously a huge supporter of the president and has always had his back even in the most controversial of times.

FERRECHIO: That's right. Not everybody has supported the president, but amongst the conservatives, because we know we have the never-Trump movement, he pretty much stayed on board with him even while he was running and there were under candidates in the race until now. He's been a staunch supporter and a defender of him during this whole impeachment process.

BAIER: Mara, the other thing that usually State of the Unions are, are a laundry list of things to do. Last year this speech was structured a little differently. It wove a lot of stories in there. The president I think will use it to tout accomplishments that he sees ahead of this election.

MARA LIASSON, NATIONAL POLITICAL CORRESPONDENT, NATIONAL PUBLIC RADIO:  This is a curtain-raiser for his reelection campaign. It is not a rally. He says it's going to be very low-key and it's going to be very long, too. That's a very un-Trumpian recipe. He likes to be really entertaining.

But this is a chance, the biggest audience he is going to get all year to tout his accomplishments, to talk about the economy, to talk about black and Hispanic unemployment rates being low, to talk about all the things he has gotten done. I don't think this is a president who has a tremendously long legislative agenda. He'll talk about things he'll do if he gets reelected, maybe middle-class tax cuts, I think he wants to tout his accomplishments. He wants to tell until the positive story of his tenure.

BAIER: But Matthew, the image here of a president who has been impeached, the trial is not over -- the acquittal likely is going to come tomorrow -- standing in the well of the House with lawmakers, some of them who will be voting on his acquittal or conviction the next day.

MATTHEW CONTINETTI, EDITOR IN CHIEF, "WASHINGTON FREE BEACON": That's right. But I think in the minds of many in Washington and probably the public at large, impeachment is receding fast in the rearview mirror. This is Trump's morning in America moment. The State of the Union is the beginning of a campaign, you're always big campaign speeches to frame the debate. I'm sure you will hear talk about how America will never be a socialist country, the economy booming, Trump acquitted tomorrow. The wind is at his back at precisely the moment he needs it to be.

BAIER: We talk a little bit about the Gallup poll, but that really did open some eyes in Washington, at 49 approval, and Republicans at 53 percent. But if you look at the RCP average, this is across the board, recent polls, approval 45, roughly, and the economy, this is really where all of the polls match up, is kind of touting the success that the administration has had on this front.

FERRECHIO: And it's the people who Democrats might want to target most in this upcoming election, the low wage earners, their wages are growing faster than anybody's. And these are people who we always hear the Democrats saying, the booming economy is not reaching these people. Well, it is. It's also reaching minorities. And they are running out of room to target Trump. So he can really tout that tonight in his speech. This can really be a victory lap for him.

BAIER: Expect that close, I think, about African-Americans. You saw the ad in the Super Bowl about the first step and the --

LIASSON: Right, and criminal justice reform. But that wasn't aimed at African-Americans. That was also aimed at suburban women in particular who don't like some of the racially tinged attacks that he has made. That ad was to create a permission structure, just like the ad in the World Series that said you might not like him, you might even hate him, he's not Mr. Nice Guy, I think was the tagline for that ad, but look what he has done for you. You are better off than you were four years ago.

CONTINETTI: Trump has an opportunity to expand his base, and the way to do that is by targeting black and Hispanic men, which I think that ad also helped with.

BAIER: We shall see. Thank you, panel. We've got full coverage here on FOX News Channel. We begin special coverage at 8:55 p.m. eastern time.

Thanks for inviting us into your home tonight. That's it for the SPECIAL REPORT, fair, balanced, and still unafraid. Martha MacCallum is up next. State of the Union later tonight. It's been a busy week, and it's only Tuesday.

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