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that is it for this "special report," fair, balanced and unafraid. "special report" online with much more panel starts right now. >> shepard: this is the fox report. tonight, the cardinals decide. the new pope says hello to the world and asks for prayers from the faithful. the white smoke signaled the moment the cardinals had come to a consensus. outside in saint peter's square the crowds erupted in celebration. [cheers] >> shepard: and from the ban cone above pope francis addressed the world. [speaking italian] >> tonight, reaction from around the world and from the pope's home country of argentina. plus, what this choice signals about the direction of the catholic church as fox reports live from rome on the election of pope francis.

>> shepard: and by all accounts it's a ground breaking choice. a man who takes the bus and cooks his own food is now the leader of the world's 1 billion plus catholics. [cheers] cardinal the 76-year-old from argentina who has decided to call himself pope francis. analysts say is he a fierce opponent of abortion, same sex marriage and once said letting gay couples adopt children would be discrimination against children. he is the first pope from north or south america. he talked about that in his first comment as head of the catholic church. >> the duty of the conclave was to give rome a bishop.

it looks like my brothers, the cardinals went to find him at the end of the world almost. >> shepard: then he did something that the analysts say shows he plans to be a humble pope, a man of the people. before giving his blessing to the crowd, he asked the crowd to bless him. >> so, let's remain silent for this prayer from you for me. >> shepard: when he bent down before the faithful, rome went absolutely silent as a people prayed for their new pope. one analyst says choosing pope francis is the biggest september catholic church has ever taken to reach out to the rest of the world. it happened on day two of the conclave after five ballots. [cheers]

>> shepard: we saw the white smoke just after 7:00 p.m. here in rome. 2:00 eastern time. it and it was, well, celebration time in saint peter's square. we saw people running from their homes to the vatican to witness this history in the making and to hear the words. [speaking italian] >> we have team fox coverage now with word on the new pope. what was it like there, amy? >> shep, where do i even begin? i think i know what it was like and the crowds were very clear with their emotion. i think we all wish we knew what it was like for the new pope what he was feeling at the moment. but, shep, it really was incredible to see hoards of people waiting for hours in the cold and the rain with no guarantee whatsoever that there would be white smoke this evening. it was beautiful to watch the feeling of relief people felt that having a pope again. and it was really rather

unexpected to hear this simple greeting in italian uttered from the mouth of the new pope. italians have been buzzing about this evening. they love the familiarity about that and, of course, the fact that pope francis asked the people to pray for him and with him. they were moved clearly by other little gestures like him putting on his stole by himself and at one point grabbing the microphone. so, it was a very emotional evening for so many people out there on saint peter's square. and we're just getting word tonight, shep, we're getting reports from cardinal dollan that the new pope plans to visit the old pope, the pope emeritus benedict the benedict the xvith this thursday, shep. >> shepard: what does this mean according to the analysts of the future of the church, amy? >> well, it just means so many things. this announcement is so

rife with symbolism. the first jesuit pope. the first pope from south america. from latin america. it's possible that this will reenergize the catholics in that part of the world hemisphere many who have been turning to ehe van gel evangelical christianity in the past. he explained it himself francis. that's widely associated with poverty and with peace i think pope catholic church clearly he is very traditional in his values as all of frankly were. a lot of people see him as something of a reformer. a man of conscience. a man of consensus. i think that there is a lot of excitement right now among many, if not all, of the world's 1.2 billion catholics this evening. shep? >> shepard: amy kellogg in vatican city tonight. in the streets of buenas air was.

people have been crying and laughing and screaming for joy after one of their own became leader of the catholics. the people of argentina have a strong connection with italy. direct of migration center shows perhaps a million italians flooded to are a yen tina about a fifth of the population was of italian dissent. among them jorge his father was italian immigration. cardinal insiders say that during the last papal conclave in 2005 that's what we're told. he lost to then cardinal joseph ratzinger who became benedict the xvith. this time around, well, did he a little better. pope francis is the first non-you're mean leader of the church in more than

1200 years according to vatican records. back in are argentina the then cardinal was a man who lived simply. i mentioned he cooked his own meals and read the bus to work. he didn't live in a fancy church mansion that was available. he slept downtown where a small stove kept him warm. he didn't own a car. difficult to imagine how much this world is about to change. team fox coverage continues. trace gallagher live tonight. >> because cardinal came in second during the last conclave, many theological historians thought he would be a major role player during this one but not as the king, rather as the king maker. instead, we have a pope unlike any other. [cheers] >> his parishioners knew him as jorge pope francis. the robes and pageantry presented to a prince of the church known for his

simplicity in humble manner his constant journey to uphold the teachings of christ. cardinal bergoglio he didn't just champion the poor he adopted them: he lives. man unfamiliar with the struggles that so many people go through in life. jorge was born in buenas are a race. respiratory illness as a child left him one w. one lung. drawn to scripture. he entered seminary in 1958 buenas air race in the

united states alone there are more than two dozen jesuit universities and dozens of high schools. president obama released a statement in which he congratulated pope francis and says he looks forward to working with him peace security and dignity for all. the statement also reads in part as the first pope from the americas, his selection also speaks to the strength and vitality of a region that is increasingly shaping our world and alongside millions of hispanic americans those of us in the united states share the joy of this historic day. vice president biden released a statement of his own congratulating pope francis and saying he will travel to rome for next week's inaugural mass. we have full coverage of the pope's inauguration, coming up inside fox report a preview of that ceremony including why we should not expect an appearance from the retired pope benedict xvi. we're also following the action on wall street where the last time we had a run like, this pope john paul ii was in the vatican. plus, warnings that a very common antibiotic, one that many of you have taken

repeatedly could cause deadly heart trouble. the z pack alert coming up from journalists of fox news on this wednesday fox report live tonight from rome. of back pain... and a choice. take up to 4 advil in a day or 2 aleve for all day relief. [ male announcer ] that's handy. ♪ to get her oven baked taste straight from the microwave. like her oven roasted chicken baked in a rich, creamy alfredo sauce. she calls them her new comfort bakes. marie callender's. it's time to savor.

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>> shepard: there hasn't been a better time to check your 401(k)'s in about 17 years. that's how long it's been since wall street saw a rally like this one. closed up again today for the ninth straight session making it the longest winning streak since 1996. today it went up at only 5 points. still all it took to hit a brand new record high again. the s&p 500 also hit another good day closing up 2. and now just 10 points away from the best close in history. take a look at this. investors may have the new pope to thank for extending the rally another day. you can see here it had dipped into negative territory but moments after the white smoke, it rose. with the dow. the fox business network's nicole petalides is live in

our new york city newsroom. what is behind these gains. >> we saw some the traders on wall street as they were cheering as the new pope was announced. they called it the papal pop at the end of the day. you are absolutely right. we had our seventh consecutive record closing high for the dow jones industrials. for the 401(k)'s and iras and all the folks out there hoping for so much more they are certainly getting it. 120%% up off the lows that we saw in 2009. some of the reasons, shep, that we are seeing the gains we are seeing, better housing market and labor market. improving slowly but they are improving china and europe and no longer big worries. and we can't leave out the fed head ben bernanke who continues to print money jobs better. now i know we are spending more online. >> that's the thing. we got in our latest retail sales numbers for the month of february. and you can see month over month a gain of 1.1% which exceeded the analyst estimate. what's interesting, shep is

that americans are spending on the things they need most. what do they need gasoline groceries and autos. spending less at the department stores and furniture stores in effect pinching american's wallets. people could just get out there and spend willie nilly. market hoping for higher gains, they have certainly been getting them. back to you. shep. feds have issued a new warning about the popular antibiotic zit throw max. rare but deadly heart rhythms in some patients. the f.d.a. reports it's adding new warning labels to the drug. the feds also say that doctors could use caution and should use caution when giving that antibiotic to

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pope francis, not pope francis the first. that would be silly. pope francis would only be known as francis the first once there is francis a ii and obviously there is not. the vatican has now restored the official papal

exiter account which it cleared of all don't after benedict the xvith resigned first new tweet we have a pope from francis. well, the election of pope francis the first pontiff from latin america, of course, people traveled here from all over the world to witness today's announcement. here is the reaction from those who had come from the new pope's homeland of argentina. [chanting] >> i think it was a surprise to a lot of them especially meaningful to changes in policy back home. some estimates as high as 101 million.

some call the election of this pope something of a prize. we have much more on reaction from argentina coming up. the name that a new pope takes can can signal how he sees himself. pope francis, what does that tell us? we will get into that a moment, we have seen a lot of separating here in rome in the last six hours. the real party begins next week i'm told. ahead a look at what to expect on inauguration day on w tuesday done... [ male announcer ] sometimes being too transparent can be a bad thing. this looks good! [ male announcer ] but not with the oscar mayer deli fresh clear pack. it's what you see is what you get food. they're about 10 times softer and may have surface pores where bacteria can multiply. polident kills 99.99% of odor causing bacteria and helps dissolve stains. that's why i recommend polident. [ male announcer ] cleaner,

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>> shepard: forces may have poisoned the late venezuelan leader hugo chavez. that from his successor is. the acting president nicholas madiero stating is he starting a formal probe into chavez's claim that the united states gave him cancer. madiero says he is not accusing the u.s. but he believes american officials in other countries may have been testing how to cause cancer for decades. back in 2011 he said he wondered if the u.s. was infecting american leaders. that's after u.s. apologized for conducting guat. rescuers searched for missing minors after a gas blast that killed at least 21 other people. that tops our news around the world in 80 seconds.

>> china. the explosion rocked a coal mine in a southern province last night. 83 workers underground when it happened. dozens escaped. several were trapped under rocks. no word what caused the blast. united kingdom. creating art with x-ray technology. a photographer uses the high tech cameras to capture everything from human to airplanes to musical instruments. he says that sometimes ghostly images help us see things in a new way. the next project photographing a life size human mid mid oid robot. >> israel. sculptures on display at the city's ice festival. part of an ongoing cultural exchange between the two countries. organizers say it took 30 people entire month to weigh more than 2 million pounds. australia.

the worlds top pro-surfers battling it out off the gold coast in the northeast on the first stop of the 2013 chopper i don't know championship tour. u.s. surf legend kelly slater beat the defending champ in aussie. that gives slater a record 52 career wins on the world tour and that's a wrap on this fox trip around the world in 80 seconds. >> shepard: i'm shepard smith. this is the fox report. it's the bottom of the hour. time for the top of the news. live tonight from rome. as i mentioned latin america home to some 2,500,000,000 catholics according to this. every estimate i have seen says 501 million catholics. all of them make up nearly 40% of the global flock. still some analysts are expressing surprise at the new pope's election. fox news latino's brian yenis is with us now. how did argentinians react

in st. peters square? >> it was an incredible scene. i was sitting next to some italians who actually were shocked. it was complete quiet until you actually went to the front of the line where there was a giant argentinian flag and family of seven that happened to be visiting and really wanted to be a part of what they thought history. so, you know, the argentinians there were happy. they everywhere exstatic. not only to see somebody representing their country but representing their values and representing latin, america. it wasn't just one country versus another. they were happy that they had one of their own up there. they had tears in their eyes. one woman told me that she found it incredible that the very first words he said were that he wanted the world and the argentinians to pray for him. it was just an emotional scene. dancing, and complete shock couldn't believe that they -- that bergoglio stepped out on the balcony.

>> shepard: he wasn't high on anybody's list. i talked to one argentinian who said we didn't have any idea our guy would be here. was it your sense from talking to people that they felt it would bring their country together having him here? >> yes. he has had issues with bergoglio with what he has said against gay marriage and some of the issues there. it's their hope that the cardinal that is now pope will not only bring together the country but obviously bring in latin america. there is the sharpest divide between rich and poor in the world really in latin america and well, pope francis now is known to be a lot like, well, pope john paul ii in which he humbled somebody for the people and a lot of hope that he will bring his charisma and he will bring that sort of common ground how protestant churches and evangelical movement the kind of movement they are

having down there. >> brian yen miss welcome to this program and thank you. the first pope born from the western hemisphere is also the first to take the name francis. that draws a connection to sant francis. peyton saint of animals and the environment. the 13th century italian fryer saw his calling as rebuilding the church in the time of turmoil. analysts say this could mean the new pontiff might want to lead the church into a new chapter in light of its recent financial and sex abuse sandals. simply celebrated the church's. >> shep, for the thousands that gathered at the vatican and millions more watching around the world, it was a day of great expectations and great ceremony. and for catholics and non-catholics alike, it was frankly hard not to be drawn to the drama. >> we had smoke. it appears gray.

>> it began confusingly gray against the night sky. then a unmistakenly white. to the joy of thousands gathered in st. peters square on a cold, wet, roman evening. [bells toll] >> thousands more ran to join them answering the call of the vatican bells, anticipation mounts as the preparations began for the new pope's first public appearance. and then the moment each of these people have come for. the name announced. >> [speaking italian] >> -- glmg take himself the

name of francis. >> and finally, pope francis emerging on to the balcony to the loudest cheer of the day. asking the faith flg to pray for him. >> i would ask you a favor before the bishop blesses the people, i want for you to pray the lord so that he can bless me. [speaking in italian] >> and that brought the curtain down on a day of spiritual theater. now, begins the work for

pope francis. there is much of that to do, shep. >> shepard: jonathan hunt. live tonight. jonathan, thanks so much. pope francis is scheduled to be officially leader of the world's catholic installation mass on tuesday of next week. traditionally, that's when a new pope celebrates his first public mass. the vatican spokesman says pope francis predecessor the pope emeritus benedict the xvith does not plan to attend the tuesday ceremony. that's not surprising. people tell us we will feel his influence, however, because before he resigned he authorized several changes to the inaugural process. leland vittert with more live here in rome tonight. tuesday happens to be the feast of saint joseph's patron saint of universal church. lots of symbolism there. >> thought to be humble. he was a servant of god. he was obedient to god. coincidence or not that a man now named pope francis who is thought to be the most humble of them all who took a bus to work back when he was the archbishop

inaugurated on the same day. for this inauguration is going to be that the cardinals all 100 plus of them will once again publicly pledge their obedience. remember, they did that in the sistene chapel before he walked out on the basilica balcony today. they will do it once again publicly. >> shepard: what happens between now and to the mundane. the pope will have a fisherman's ring fitted: will look going forward. the seal will be broken. he will go ahead and aloud to look in there he these figure out things who is going to be his secretary of state? who is going to run the vatican and then also this is a man who is now moving from argentina. there is a lot of phone calls he has to make back home saying i'm not coming back. >> shepard: i'm guessing by now they have figured it

out. analysts figured the pope would choose a younger pope stay longer than pope benedict the xvith did. the decision to go with the 76-year-old who ask my father is very young. president obama heads into enemy territory -- that's not exactly fair. at any rate, he is going to the hill for the first time in years as the two parties battle over rival budget plans. the president is also tackling the threat of cyber attacks, just hours after we learn the first lady may have been a victim of a tiger-o-good grief. it's been a long day. victim of a cyber attack herself. keeping the tigers out of washington for now. that's coming up as fox reports live from rome. [ chirp ] with android apps, you get better quality control. so our test flights are less stressful. i've got a lot of paperwork, and time is everything here. that's why i upgraded to sprint direct connect. [ chirp ] and instant push-to-talk nationwide. [ male announcer ] upgrade to the new "done." [ chirp ]

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don't take nexium if you take clopidogrel. ask your doctor if nexium is right for you. find out how you may be able to get nexium for just $18 a month at purplepill.com >> shepard: pope benedict the xvith. the oldest man ever to become pope. he was 78. pope francis is two years

younger. he is but a few years away from the age limit for a cardinal to even vote in the conclave. the cardinals didn't agree with some the vatican watcher who's said the church could use a younger leader. rome bureau chief for the internal world television network ewtn. what about this? >> it's an interesting question really. an observation like you saids a few years away from not even being able to vote for a new pope. you know, the cardinals all spent five days, six days in congregations. they knew before they even came to rome and met what they were looking for in their leader. any questions they had about a leader would have been answered in those convocations if it was health, if it was age or one's ability to have the energy to travel and so forth. so, i think those questions were all adequately answered as far as the cardinals were concerned. and they chose the man that they felt had the humility

and all the other traits to lead the church at this time. >> shepard: when benedict was elected, largely because of age, i was told at the time, standing in this same place in 2005, the analysts said well he is a transitional pope because of his age. this man is two years younger. is he a transitional pope? >> >> i don't think that's what the intention of the cardinals who voted him as who elected him you want as the holly father. the only way we would have to answer that is to look down the road. and see how he is doing. you know, pope leo 13th was elected at the age of 78 and went on to reign for 15 years and died in 1903. so, and he was elected as a traditional pope. as a transitional pope. so who is to say? >> >> is the thinking now that it's kind of okay to retire when you want to? or do we go back to the more traditional you stay

with this until the lord takes you home? >> i think that pope francis and his successors are going to view the papacy as a life-time job. however, there is that crack in the door, if you will, that pope benedict did establish by resigning, having the courage and humility to resign when he knew his resignation was for the good of the church and his staying on because of declining health and energy might not have been for the good of the church. that was upper most in his mind. so, again, i think we can only just wait to see about this pope's vigor and i know he is going into the papacy tonight intending it to be a lifetime job. >> shepard: joan lewis from ewtn. joan thanks so much. >> you are welcome. >> shepard: continuing coverage of the transition here in rome over the next few days and, of course,

live team fox coverage on tuesday of the inauguration. tonight, president obama made a rare stop on capitol hill to meet with g.o.p. leaders. tonight our time over here in rome. it was afternoon yours. the first in nearly two years as part of a new push to reach a deal on the budget. but both sides admit they are way apart when it comes to finding common ground. it was a 90 minute meeting. came as democrats gave us details of their budget proposal. the first budget they have submitted in four years by the way. it calls for closing loopholes to raise almost $1 trillion in new tax revenue. closing loopholes on the big corporations, in many cases don't even pay taxes. republicans are already blasting the plan. they support congressman paul ryan's budget proposal which seeks to balance a budget without any new taxes, only spending cuts. it also calls for repealing president obama's healthcare overhaul, something that democrats say, well, frankly, it can't happen. mike emanuel with the news live on capitol hill tonight. it was the democrat's turn.

what did they say. >> the white house put out a statement concrete plan boost the economy and reduce deficits. today the chairman of the senate budget committee made her pitch. >> our budget reflects the pro-growth, pro-middle class agenda that the american people went to the polls of in support of in the last election. and i believe it is is a strong and responsible vision for building a foundation for growth and restoring the promise of american opportunity. >> though senator murray and white house like it not clear how senate democrats up for re-election 2014 will feel about voting on another 1 trillion-dollar tax increase. shep? >> shepard: we heard today from com ryan. he is contrasting the house g.o.p. budget with the senate plan. >> that's right. congressman paul ryan notes that his own plan would increase government spending each year but just not at the rate that we are doing currently. ryan also is particularly irritated with one aspect of the senate democrats'

plan.>> we may not agree on how to balance the budget. but we ought to be able to agree on 00 need to balance the budget. a balanced budget is a reasonable goal. it's one that we should share. a balanced plan that never balances is not balanced. >> and while the senate democrats' plan does not balance, ryan says his plan, if enacted would balance by 2023. shep? >> shepard: ah, plans, mike emanuel from capitol hill. the president had a meeting in the white house situation room about the danger of cyber terror, a very real danger according to all in charge. officials say he sat down with the ceos of defense and technology companies to talk about what experts called the biggest threat to our nation. just last night we told you about a web site that claimed to have financial information from first lady michelle obama. the vice president joe biden other government officials. lots of celebrities. the white house will not confirm that: the white house confirms they are indeed investigating.

president obama has nominated the next ambassador to libya six months after militants stormed our embassy in benghazi and killed ambassador chris stevens and three others americans. debra k. jones is a career diplomat who served in american embassies in kuwait, united arab emirates and syria. she also worked in u.s. embassies in turkey and ethiopia. if confirmed she would head the diplomatic mission in tripoli where we have seen increased tensions and tighter security since ambassador stevens' murder. florida's lt. governor abruptly resigned on wednesday after the feds linked her to illegal gambling ring. the republican governor rick scott said he accepted jennifer carroll's resignation. she stepped down hours before federal and state announced they have charged 57 people in an alleged conspiracy. they say the suspects posed as a nonprofit charity to help veterans but in reality, lined their own pockets. officials say the group operated illegal casinos in several states, all

disguised as internet cafes. the now former lt. governor is not charged with anything. she was the co-owner of a public relations firm that did work for that group. she says she is cooperating and fully with the investigation. there had been some speculation that an american cardinal could become pope. of course that didn't happen this time so. how our u.s. cardinals. we're live in new york's famous saint patrick's cathedral when the fox report returns tonight live from rome. 4g, huh? verizon 4g lte. 700 megahertz spectrum, end-to-end, pure lte build. moe most consistent speeds indoors or out. and, obviously, astonishing throughput. obviously... you know how fast our home wifi is? yeah. this is basically just as fast. oh. and verizon's got more fast lte coverage than all other networks combined. oh, why didn't you just say that? huh-- what is he doing?

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>> shepard: some of the top cardinals from the united states expressing their congratulations and blessings for pope francis and the future of the church of the 115 cardinal electors in the vatican. 11 of them are american. including sean cardinal

o'malley from boston. earlier today, cardinal o'malley issued a statement following the papal election it reads in part the world will greatly benefit from pope francis witnessing jesus' call for us to love god and love one another. the president of the u.s. conference of catholic bishops timothy cardinal dollan of new york also gave his blessing saying the bishops of the united states thank god for the guidance of the holy spirit and the inspired choils of the college of cardinals. julie banderas live from saint patrick's cathedral in new york. what are new yorkers saying about the new pope? >> well, you know, shep, you just mentioned a couple of american cardinals. actually for the very first time ever an american cardinal was considered a possibility for the elected pope. that, of course, did not turn out to be the case. here cardinal timothy dollan was obviously a first pick for new yorkers. none the less here in the melting pot here at saint patrick's cathedral argentinians loyal and very excited ones could not be happier to hear the news from so far away interest home.

listen. >> it's wonderful news. truly amazing. because, it wasn't expected. it's a beautiful news. and we are going to be great time in the church and all around the world new pope for argentina. >> very emotional. sometimes very hard to express in words what we really mean for us. especially being proud of, you know, somebody representing our country. and i'm really enjoying. this. >> now, ahead of the election for a new pope, cardinals around the world had said they were looking for a man who was up to the job in order to tackle all the problems of the catholic church. and both are argentinians and new yorkers would all agree on one thing, that pope francis is the man for that job. shep? >> shepard: julie banderas live in new york city. thanks. the leaders from around the world also welcoming the head of the -- new head of the catholic church. david cammeron called it a momentous day. several other heads of

state from the european union and region of latin america their best wishes to pope francis. some social media sights including the president of honduras. a tweet read may god illuminate and bless him. >> shepard: top coverage as the world celebrates the catholic's new leader one who has already made history. fox report returns. are a bit ud then this will be a nice surprise. meet the 5-passenger ford c-max hybrid. c-max come. c-max go. c-max give a ride to everyone it knows. c max has more passenger volume than competitor prius v and we haven't even mentioned... c-max also gets better mpg. say hi to the super fuel efficient ford c-max hybrid.

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chances are, you're not made of money, so don't overpay for motorcycle insurance. geico, see how much you could save. >> shepard: there is the new pope in rome which means that the now famous sistene chapel chimney goes back in storage. the famous artwork did not suffer any damage. of course, the sistene chapel is home to priceless frescoes most notably on the ceiling and behind the altar. michael angelo painted most of them back in the early 1500s and keeping it all clean and safe is very difficult. 500 million visitors each year. a lot of dust and dirt and

dandruff. state of the art vacuum tunnel and carpet to pull all of that gunk off nasty people as they entered. updating top story tonight pope elected first time in from are argentina known as cardinal jorge bergaglio. he asked the crowd packing st. peters square and really everyone around the world to pray for him. his papacy is effective immediately. next tuesday the inaugural mass formally installs francis as head of the church. amy kellogg live in vatican city. amy? >> shep the evening was full of surprises and firsts. the odds had been stacked firmly behind the papacy returning to an italian after 35 years in the hands of foreigners and we had all sort of become instant