It was Stewart's second appearance on the program. O'Reilly has also appeared on the "Daily Show." We've posted both parts of the interview that aired last night; more from the interview will air on Fox News this evening.
O'Reilly confronted Stewart over his criticism of Fox News cutting away from Mr. Obama's question-and-answer session with House Republicans last Friday. On his program, Stewart said Fox decided to cut away because "this is against the narrative that [they] present."
He also asked about a poll that found Fox to be the most trusted news organization in America. Stewart responded by noting that an internet poll found him to be the most trusted newsman.
"Here's what I believe," Stewart said. "Fox News is the most passionate, and sells the clearest narrative, of any news organization, if that's how you're - are you still referring to it in that manner?"
He added that Fox News, "through their cyclonic perpetual emotion machine that is 24 hours a day, 7 days a week, they've taken reasonable concerns about this president and this economy and turned it into full-fledged panic attack about the next coming of Chairman Mao."
O'Reilly defended his network, saying there is a clear line between news and opinion and that its news reporters and programs are non-partisan. He said the narrative outlined by Stewart was only that of Sean Hannity and Glenn Beck, not the entire network.
The Fox News host, who repeated his comment that Stewart's audience is made up of "stoned slackers," asked Stewart how President Obama is doing.
"I can't tell if he's a Jedi master playing chess on a three-level board way ahead of us, or if this is kicking his ass," said Stewart. He suggested Mr. Obama has given too much deference to Congress in crafting legislation.
Stewart also called O'Reilly "the most reasonable host" and "the voice of sanity" at Fox News – though he compared that to being "the thinnest kid at fat camp." Watch above.