These are the headlines you Need 2 Know. * **White House Flag Controversy:** The White House buckled under serious criticism Monday and put its flag back at half-staff to honor the late Sen. John McCain. President Trump also issued a formal "proclamation" of praise for the Arizona Senator on Monday, two days after McCain's death. The two men had a strained relationship. For the latest [click here](https://www.npr.org/2018/08/27/642254802/flag-flap-underscores-trumps-strained-relationship-with-mccain). * **A New NAFTA:** The U.S. and Mexico reached a deal Monday to revise parts of the North American Free Trade Agreement. President Trump said Canada isn’t included and will get cut from the deal unless officials are willing to negotiate. “We’re going to call it the United States-Mexico Trade Agreement… NAFTA has a lot of bad connotations for us, because it was a rip-off,” the president said. [Read the latest here](https://www.cheddar.com/videos/trump-announces-new-trade-deal-with-mexico). * **Stock Market Soars:** U.S. stocks soared after President Trump announced the trade deal with Mexico. The Nasdaq marked its first-ever close above the 8,000 mark, and the Dow Industrials rose more than 1 percent, crossing 26,000 for the first time since early February. The S&P 500 also posted a record close. For Cheddar's latest on the markets [click here](https://www.cheddar.com/videos/markets-hit-record-highs-on-trade-deal). * **Midwest Heat Wave:** A massive heat wave is hitting portions of the Midwest and the Northeast, putting about 70 million Americans under some level of heat advisory. In New York, temperatures will feel like they’re in the 100s just as the U.S. Open gets underway. For the latest [click here](https://www.usatoday.com/story/news/nation/2018/08/27/heat-wave-70-million-late-august/1109516002/). Cheddar's Jill Wagner gets into the latest. Subscribe to the Need 2 Know newsletter [here](https://theneed2know.com).

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