Return to Transcripts main page

American Morning

Evening One at the DNC; Interview With Teresa Heinz Kerry; Scott Peterson Trial

Aired July 27, 2004 - 9:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


(BEGIN VIDEO CLIP)
WILLIAM JEFFERSON CLINTON, FMR. PRESIDENT OF THE UNITED STATES: So let us join tonight and say to America in a loud, clear voice, send John Kerry! God bless you.

(END VIDEO CLIP)

BILL HEMMER, CNN ANCHOR: Good morning from Boston. Former President Clinton brings delegates to their feet on the first night of the Democratic convention.

Teresa Heinz Kerry responds to her response to a newspaper editor.

(BEGIN VIDEO CLIP)

TERESA HEINZ KERRY, JOHN KERRY'S WIFE: This person was trying to trap me, and I was not going to let them.

(END VIDEO CLIP)

HEMMER: My interview today with the senator's wife, who says she has no regrets.

And John Kerry campaigning in Florida, getting a classic photo op this the cockpit of the Shuttle Discovery.

Full convention coverage ahead on day two on this AMERICAN MORNING.

ANNOUNCER: This is AMERICAN MORNING. From the Democratic National Convention in Boston, here's Bill Hemmer.

HEMMER: High atop Boston, welcome back, everyone. It is day two of the Democratic National Convention. We are on the floor of the FleetCenter, where the political energy never out of the room, especially in prime-time.

The air charged again last night. Former President Bill Clinton headlining an array of Democratic heavyweights on the stage. We'll look back at some of those speeches in a few moments here in Boston.

Also looking ahead later tonight. John Kerry's wife, Teresa Heinz Kerry, among the prime-time speakers. In a few moments, we'll hear what she has to say about her run-in with the journalist on Sunday night when she told him to "shove it."

Also this morning, Senator Kerry's photo op from the cockpit of the Shuttle Discovery. He had to put on one of those light blue jumpsuits for that tour. A few eyebrows raised on that one. We'll talk about it, get reaction as well on that.

Also, to my colleague in New York, Heidi Collins, standing by there.

Good morning, Heidi.

HEIDI COLLINS, CNN ANCHOR: And good morning to you once again, Bill.

A lot of other news as well this morning. We'll get to the Scott Peterson murder trial. Testimony continues this morning. And yesterday, the jury getting a fishing lesson. Gloria Gomez will update us on all of that.

For now, though, here's Jack.

JACK CAFFERTY, CNN ANCHOR: The senator from Massachusetts looking like the Pillsbury dough monster in that...

COLLINS: That's a new phrase here, yes.

CAFFERTY: ... white suit.

Teresa Heinz Kerry, asset or liability? We are getting a ton of mail. Is she refreshingly outspoken or perhaps a loose cannon capable of derailing the campaign at some point? Am@cnn.com.

COLLINS: Yes, we are getting a lot of mail. All right. We'll wait for more on that.

Bill, back to you in Boston now.

HEMMER: All right, Heidi.

Later tonight, going to bring another lineup of high-profile convention speakers tonight. On tap, former candidates for the White House, Howard Dean, Dick Gephardt, Teresa Heinz Kerry on that list. Some following some big opening acts from last night. Bob Franken takes us back to last evening, evening one here at the DNC.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): A reminder, Democrats: your nominee will be John Kerry. Try and remember, it's not Bill Clinton. He was just there to help Kerry.

CLINTON: After three conventions, as a candidate or a president, tonight I come to you as a citizen, returning to the role that I have played for most of my life as a foot soldier in our fight for the future, as we nominate in Boston a true New England patriot for president. (APPLAUSE)

FRANKEN: He's the former president, of course. But that other Clinton was there, too, with all the talk of her of trying to become a future president. But that's for another night.

SEN. HILLARY RODHAM CLINTON (D), NEW YORK: We need a new commander in chief named John Kerry!

(APPLAUSE)

H. CLINTON: I've been saying for many months now, John Kerry is a serious man for a serious job in a serious time in our country's history.

FRANKEN: The Democrats have done something very unusual this year. They've stopped bickering, united in the common cause of beating George W. Bush, cheering again for the man they feel beat him last time.

AL GORE, FMR. VICE PRESIDENT OF THE UNITED STATES: The first lesson is this: take it from me, every vote counts.

(APPLAUSE)

FRANKEN: The tedious, massive security outside did nothing to dampen the Democrats' enthusiasm inside the FleetCenter. And tonight, the pep rally continues. Tonight, Howard Dean speaks once again of the fight against President Bush.

(END VIDEOTAPE)

FRANKEN: So we're hearing about the past and the future. But the present Democratic nominee is John Kerry. And what he will find Thursday night, Bill, is that he's followed some really good opening acts.

HEMMER: Bob, thanks for that outside the FleetCenter.

Back inside here now on the floor. Teresa Heinz Kerry speaks later tonight. Last night, I sat down with her, talking about her husband, herself, and the words she had for a reporter on Sunday evening.

(BEGIN VIDEOTAPE)

HEMMER: Take me back to Sunday night. Do you regret telling that reporter to "shove it?"

HEINZ KERRY: No. No. I respect reporters, and I respect anyone who does their job well.

I don't, like anybody else, want to be trapped or be misrepresented intentionally by someone. That's what happened, and I defended myself.

HEMMER: The quote I have is that you said "un-American traits."

HEINZ KERRY: No, "un-Pennsylvanian."

HEMMER: OK. Back up a little bit then. "We need to turn back some of the creeping un-Pennsylvanian..."

HEINZ KERRY: Traits.

HEMMER: "... and sometimes un-American traits that are creeping into some of our politics."

HEINZ KERRY: Correct.

HEMMER: That's the way you remember it?

HEINZ KERRY: And that's absolutely correct. I would say that again.

HEMMER: And what did the reporter say to you then?

HEINZ KERRY: "Un-American activities," which has a very different connotation. It's a political connotation of McCarthy implications, which I would not use unless it was very specific. And I would use it if it was correct. But that's not what I was talking about.

HEMMER: Why not just walk away?

HEINZ KERRY: Because this person was trying to trap me, and I was not going to let them.

HEMMER: What does America get in Teresa Heinz Kerry as first lady?

HEINZ KERRY: They'll get a caring, honest, practical, hopeful person who, in spite of a lot of hurt, and a lot of losses in my life, have always picked up and hoped and worked with (ph) a better day. And that's what they'll get, a good mother, and a good friend.

HEMMER: Do you enjoy this campaign?

HEINZ KERRY: Yes, love it.

HEMMER: You do?

HEINZ KERRY: People are wonderful. People have been wonderful.

HEMMER: Do you like American politics?

HEINZ KERRY: Better than anything I've known, yes. Better than anything I've known, which is a dictatorship.

HEMMER: Your first husband at one point, it's almost become a famous line, when it was rumored that when he would run for the White House, you said, "Over my dead body."

HEINZ KERRY: Always. I've always said so, which terrified me.

HEMMER: Why?

HEINZ KERRY: Well, the first time he said that I was 37. Are you kidding me? Scared. Scared to death.

HEMMER: What changed with Senator Kerry? Or perhaps you've changed?

HEINZ KERRY: I'm older. I see life through a -- you know, a shorter life span prism. The issues that I work on mean a lot to me.

I think John can make a very big difference. And he is an optimist, but quite conscious about what he does and what he knows, and where he wants to go. And I have a lot of experience also.

And so I, quite frankly, felt that I would be selfish and really have no right to block his run. In fact, I really should help him. But it was not an easy thing for me to come to terms with. But I finally did.

HEMMER: You said a few months ago you think he should gain some weight.

HEINZ KERRY: And he did, mercifully.

HEMMER: How much?

HEINZ KERRY: Ten pounds. And he still has...

HEMMER: You thought he should gain 20 pounds, I believe, right, all over his body?

HEINZ KERRY: Yes. He's on his way. He's on his way up. But, you know, he was sick last year, and early last year, and he lost some weight. And he never had time to rest or regain it.

HEMMER: Is there a first lady you look up to?

HEINZ KERRY: I look up to Mrs. Ford. For the brief time she was there, she had to deal with several problems, as you remember, getting over certain problems, having cancer, and talking about it so people would know.

People say, "Well, who are you going to be like?" I said, "I'm going to be like me if I get there. You know, I'm going to be like me." Let Laura Bush be Laura Bush, and let Hillary be Hillary. All I ask for is give me a chance.

(END VIDEOTAPE)

HEMMER: Teresa Heinz Kerry will be on the stage later tonight after 10:00 Eastern Time. Also on the stage tonight, Howard Dean, Dick Gephardt. Ted Kennedy is there, Barack Obama, out of Illinois, and Ron Reagan, the son of the late president, Ronald Reagan. All here in Boston, all will deliver their speeches here at the FleetCenter.

One way you can tell at every convention how critical states can be is the seating arrangement here. Massachusetts front and center, the home state and hosting state for John Kerry in this convention.

On the other side, front and center, North Carolina, the home state of John Edwards. And here, the state of Iowa that gave John Kerry that victory in the primaries back in mid January that helped catapult him to the point where he finds himself today.

It's going to be another interesting day. Day two continues here in Boston.

Back to Heidi now in New York -- Heidi.

COLLINS: All right, Bill. Thanks for that.

This morning, a "Salt Lake City Tribune" reports that missing Utah woman Lori Hacking may have found out about her husband's deceptions just days before she vanished. It reports coworkers believe she tearfully left work after discovering her husband wasn't going to med school.

(VOICE-OVER):

MELISSA SUGDEN, FRIEND OF LORI HACKING: I was in the parking garage with my friend Jen, and I saw her come across the skywalk. And I said, "hey, look, there's Lori." And Jen says, "Wow, it looks like she's crying." And I said, "Yeah."

So she came up the skywalk and I go, "Hey, Lori, what's up?" And she usually talks to me because we vent about everything all the time. And she just said, "Nothing," and she walked away. And she was walking so fast away, and I said, "Are you sure?" And she said, "Yeah."

And then she got in her car, she zoomed past at us, didn't even look at us, and left. And, I mean, I've been friends with Lori for a while, so I knew something was wrong. But I didn't -- I should have called her, and I was going to, but then I just -- I just got busy over the weekend and I didn't.

(END VIDEO CLIP)

COLLINS: The spokesman for the Hacking family also talked about these reports just a short while ago.

(BEGIN VIDEO CLIP)

SCOTT DUNAWAY, HACKING FAMILY SPOKESMAN: The family was unaware of that phone call or that particular incident. They -- they understand that there were a number of instances, circumstances that took place over that weekend that were probably upsetting to Lori. But other than being concerned about generally the deceptions that Lori probably learned about over the weekend, they really don't know.

(END VIDEO CLIP)

COLLINS: Lori Hacking disappeared last week. Police continue to say her husband, Mark, is considered a person of interest in her case.

Now to Scott Peterson's double murder trial. The prosecution continues to attack Peterson's alibi on the day his wife Laci disappeared. Gloria Gomez, reporter for Sacramento TV station KOVR, is covering the trial. She joins us now from the courthouse in Redwood City, California.

Gloria, thanks for being here. Prosecutors, as you know, spent most of yesterday questioning a commercial fisherman. What was that all about?

GLORIA GOMEZ, KOVR: Well, they wanted to ask him what exactly Scott Peterson had in his fishing boat that -- that suggested he was going sturgeon fishing. Well, the commercial fisherman shot down everything Scott Peterson had as far as -- as far as his fishing equipment. He said he had the wrong gear, he had the wrong fishing line, the wrong fishing lure, even the wrong fishing pole.

He also talked about the anchor Scott Peterson was using, the cement anchor, saying that that was the wrong anchor to hold the boat steady for sturgeon fishing, that basically you have to be really steady in the water. And he just basically had everything that was inappropriate to go sturgeon fishing.

COLLINS: Did the prosecution succeed, do you think, with the jury in showing that Scott lied about his intentions of fishing?

GOMEZ: Well, I think the prosecution made a point, not only showing that he had the wrong fishing gear, but that prosecutors are trying to say, you know, he wasn't there to go sturgeon fishing, he was there to dump his wife's body in the bay. And I think the biggest point that was made by this commercial fisherman was the fact that he talked about how this fish, which is a 150-pound fish, could be thrown off the back of the boat without the boat tipping over.

Now, that's pretty significant, because prosecutors believe that that's how Scott Peterson dumped lace's body out without tipping the boat over. And, of course, the defense questioned that, and going, "Well, wait a minute, didn't you say that in order to do that you had to have help to throw this big fish over?" And the fisherman said, "Well, it would be nice to have help." He goes, "But I've done it myself, where I've been able to toss this fish out of the boat without it capsizing."

COLLINS: All right. Now, what about this friend of the family who says that he advised Scott and Laci to get two different life insurance policies? How is that going to play into all of this?

GOMEZ: Right. Well -- well, apparently, the financial adviser said that he wanted Laci to get a $100,000 worth of life insurance policy and Scott Peterson $250,000, and that Laci didn't want that. That Laci wanted to match Scott Peterson dollar for dollar. So she also wanted the life insurance policy to be worth $250,000. But there is a clause on this policy that says that if one of them goes missing, that they have to wait seven years in order to cash out on that policy. And we learned yesterday that Scott Peterson never inquired about getting that cash. So if the prosecution is trying to insinuate that there's some sort of financial motive, they didn't prove their point yesterday.

COLLINS: All right. Gloria Gomez from KOVR, thanks so much for that this morning.

GOMEZ: Thank you.

COLLINS: It is just about 14 minutes past the hour now. Time for a look at some of today's other news and Daryn Kagan.

Hi, Daryn.

DARYN KAGAN, CNN ANCHOR: Heidi, good morning.

Once again, we begin with President Bush, who is working on homeland security issues while he is at his ranch in Texas this week. The president and a task force met via videoconference yesterday to discuss some of the more than 40 recommendations from the 9/11 Commission. The White House is studying which of the proposals could be implemented by executive order and which require congressional approval.

The standoff over a California state budget appears to be over. California Governor Arnold Schwarzenegger announced yesterday an agreement on an estimated $103 billion spending plan. Lawmakers spent 26 days arguing over the budget, during which the governor called some Democrats "girlie men." The budget still needs approval by the state legislator.

The Justice Department is reporting details on a problem that's resulting in thousands of illegal gun sales. More than 7,000 people who should have been barred from buying guns were able to buy them anyway. That was back in 2002 and 2003.

According to federal law, if the background check isn't completed within three days, the purchase must go through. But 97 percent of those illegally sold weapons were retrieved.

Teen actress Mary-Kate Olsen has been released from a health facility where she underwent six weeks of treatment. The 18-year-old star and her twin sister, Ashley, have built their acting careers into a billion-dollar franchise. Mary-Kate was being treated for an eating disorder widely reported to be anorexia. The twins are now set to enroll at New York University next month.

We wish her well in her recovery.

Now back to Bill, doing a great job in Boston.

HEMMER: Well, thank you, Daryn. Thank you. I owe you a dollar. KAGAN: Yes, that's all right. In the mail.

HEMMER: Daryn, thanks.

In a moment here, Dick Gephardt fighting John Kerry for the Democratic nomination just six months ago. Now he is on the same team. We'll talk to the Missouri congressman in a moment. He's on stage later tonight as well.

Also, a touching tribute last night here at the convention. I'll talk to the young performer behind him this hour on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone. Welcome back, everyone.

Missouri Congressman Dick Gephardt addressing the delegates on the second night of the convention here in Boston. Tonight's theme, a lifetime of strength and service fitting for the 14-term congressman. The two-time presidential candidate retiring at the end of the current session. Dick Gephardt my guest now here at the FleetCenter.

Good morning to you.

REP. RICHARD GEPHARDT (D), MISSOURI: Good morning, Bill.

HEMMER: Nice to see you.

GEPHARDT: Good to be here.

HEMMER: Take me to your home state, the Show-Me State. The latest survey we show, it's a 50-50 split, 48 to 48. What explains that between Bush and Kerry today?

GEPHARDT: It's not the Show-Me State for nothing. That's the way people always are in Missouri.

They're cautious. They are good judges. They sit back. They don't make up their mind really quickly. But when they do, they're usually right. Missouri has picked the president in all the last elections over the last 10 cycles, except once with Adlai Stevenson in '56.

HEMMER: This year, in 2004, is it the economy or is it Iraq?

GEPHARDT: It's both.

HEMMER: Because oftentimes we hear Democrats come out and say it's all about the economy. But last night was about Iraq and the war on terror and leadership.

GEPHARDT: It's about both. People out in the country, in St. Louis, and my district, if you go out and talk to them door to door today, they'd talk first about the economy, worried about jobs, worried about wages. But they're also worried about where we are in the world because they know that the security issues are right in front of them every day.

HEMMER: What is your message tonight?

GEPHARDT: I'm going to talk about John Kerry, the John Kerry that I have known for 20 years. I'm going to talk about what a good person he is, his judgment, his wisdom, his good heart. And if I can get any of that across in my five minutes, it will -- it will make it worth it.

HEMMER: Are you happy to be here?

GEPHARDT: Absolutely.

HEMMER: Or is this a bit bittersweet...

GEPHARDT: No.

HEMMER: ... knowing you're coming toward the end of your time in Washington and knowing that you gave John Kerry a run back in January?

GEPHARDT: I always have felt this election is not about me, or really any of the candidates. It's about the future of the country.

I just want us to win this election for all the right reasons. And I'm happy with the result. And I'm happy with what -- what's ahead of me. And I will work hard to win this election and help this ticket.

HEMMER: I think it was about three and a half, four weeks ago when a headline said that you were the guy, you were the pick for John Kerry.

GEPHARDT: If you get some of those, I'll sign them and put them on eBay.

HEMMER: Here it is, "New York Post," "Kerry's Choice: Dem Picks Gephardt as VP Candidate." How did that happen? Do you know?

GEPHARDT: I have no idea. You know, you can't believe everything you read.

HEMMER: Now I know.

GEPHARDT: That's exactly right.

HEMMER: Good luck to you, all right?

GEPHARDT: Thanks so much.

HEMMER: And thanks for being such a good man for us all these years.

GEPHARDT: Thank you.

HEMMER: And my best to you when you leave Washington.

GEPHARDT: Thank you. Jane's happy.

HEMMER: Oh. Congratulations to her, OK?

GEPHARDT: You bet.

(CROSSTALK)

GEPHARDT: Thanks so much.

HEMMER: Back in a moment. More from Boston. Here's Heidi.

COLLINS: Still to come, John Kerry gets suited up for a photo op. And Republicans get a little mileage out of it. Stay with us right here on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Take some time to check in with Jack and the "Question of the Day."

CAFFERTY: We've gotten over 800 letters. And -- and you know what? Most of the people really like Teresa Heinz Kerry.

COLLINS: OK.

CAFFERTY: Yes, they really -- I mean, I assume we're getting a lot of Democratic mail. But a lot the letters say, hey, she's right on.

She did the impossible. She did make the first day of this convention actually mildly interesting out there in Boston. Love her or hate her, Teresa Heinz Kerry telling a reporter to "shove it," stole the spotlight at the Democratic National Convention even before the opening gavel. And at the end of the week, it may go down as the most intelligent comment made up there.

We asked whether Teresa Heinz Kerry is a political asset or liability. As I said, over 800 letters. Here's two or three real quick ones.

Paul in Hellertown -- let's see -- "I could easily see Teresa Heinz Kerry as a senator or Supreme Court Justice, whereas I would feel quite comfortable being served afternoon tea with cucumber sandwiches from Mrs. Bush."

Ellen writes, "The only reason that THK's" -- that would be Teresa Heinz Kerry -- "relatively innocuous statement has made it to the forefront of the press is because you guys decided to focus on it. Tattoo this on your foreheads: Democratic wives speak their minds, Republican wives don't have any."

Cruel.

Paul in Atlanta writes, "I don't know if she's an asset or liability, but she better do something about that hair."

She does have a lot of hair.

COLLINS: Getting right to the heart of the matter.

CAFFERTY: The subject of envy on the part of people like me, who have precious little.

COLLINS: You have nice hair, though.

CAFFERTY: Well.

COLLINS: Little you have.

All right. Still ahead this morning, startling evidence connected with suicide bombers in Iraq. We'll have a live report on that.

Plus, a scary moment at Sea World. You want to stick around for this in just a moment on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Just a few seconds away from the opening bell, ringing out on Wall Street this morning. The Dow Jones industrial average starts trading at 9,961. That's down a third of a point yesterday. There's the bell now. And at the Nasdaq market site, the Composite Index opens at 1,839. That would be down 10 points.

Welcome back to AMERICAN MORNING, everybody. Ahead this half hour, new information coming to us about suicide bombers in Iraq. Reports now that many of them have been chained into cars they used as weapons. Barbara Starr is at the Pentagon. She'll have the very latest on all of that.

But for now, back to Bill Hemmer, standing by in Boston at the FleetCenter.

Hey, Bill.

HEMMER: Hey. Thank you, Heidi. Good morning again, everyone. Day two of our special coverage here throughout the week from the floor of the FleetCenter here in Boston.

With the Democratic convention under way, John Kerry slowly making his trip up the northeast of the U.S. on his way to Boston. Senator Kerry starts his day today in Norfolk, Virginia, holds a rally about 30 minutes from now. That's where we find Frank Buckley live this morning in Norfolk.

Frank, good morning there.

FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT: Good morning, sir.

Important campaign appearance here in Norfolk, Virginia, for Senator John Kerry in terms of reinforcing his wartime credentials. Of course, Senator Kerry the recipient of the Silver Star and three Purple Hearts during his Navy service in Vietnam. Still, polls continue to show that voters believe that it's President Bush who's better able to handle the war on terror and the war in Iraq. The Kerry campaign saying that's to be expected, that's a natural reaction to an incumbent president during a time of war.

Still, this is a week about introducing John Kerry to voters. Certainly his wartime experience is part of his life. Kerry will pay tribute to the U.S. military here. He'll also talk about transforming the U.S. military to meet new threats, and talk about the importance of quickly adopting the recommendations of the 9/11 Commission. And finally, he'll introduce an idea to support a military family bill of rights to help military families.

From here in Norfolk, Virginia, Bill, he'll be going on to the next stop, heading up to Philadelphia, Pennsylvania, of course a major battleground state in this coming election. And then it's on to Boston, arriving Wednesday. And, of course, Thursday he'll be speaking to the convention -- Bill.

HEMMER: All right, Frank. Thanks for that. We'll watch the traveling again up the northeast coast of the U.S.

We continue a segment this morning now we plan to do every day of the week at this time, finding stories some of the finest political reporters in Boston are chasing here. They all work for us at CNN, too. We call it "On the Floor."

Say good morning to CNN senior White House correspondent, John King, with us today. Kelly Wallace also with us. Kelly's first. There's John and Ron Brownstein, political analyst of the "L.A. Times."

Good morning to all three of you.

RON BROWNSTEIN, "L.A. TIMES": Good morning.

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Good morning.

HEMMER: Very interesting night last night from a floor perspectives. What are you finding out about the delegates and whether or not they're getting what they came here for or not?

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Well, they're not getting the red meat they came here for. Remember, these are all Democrats in the hall. The message from the podium is meant for the voters back home, that small group of undecided voters. So the delegates on the floor, of course, would like more red meat.

What I found interesting is the total control the Kerry people have over this. Tradition at conventions, you see these floor whips running around. When Clinton comes out, they bring out Clinton placards. When Gore comes out, they bring out Gore placards.

No. Only Kerry-Edwards placards, with the one exception of the New York delegation, where they brought "I love Bill" and "I love Hillary." But the rest of the convention, Kerry-Edwards signs everywhere.

HEMMER: What are you hearing?

WALLACE: Same thing. I mean, you know, they're not necessarily getting exactly what they might have wanted, but they don't seem to mind. They are so pumped up.

HEMMER: So you're saying it's -- you're not suggesting it's disappointing to them?

WALLACE: No, not at all, because -- as (UNINTELLIGIBLE) talked about, they're more united than ever. There was sort of good response for Al Gore, but Hillary Clinton, Bill Clinton coming out, rock stars.

One person I talked to put it this way, saying, "Bill Clinton delivered a cogent, tight argument for why John Kerry should be elected." He set the stage. And now John Kerry has to do that on Thursday.

BROWNSTEIN: On the other hand, it wasn't quite as vegan as Bill by the Kerry campaign. I mean, there was some red meat out there.

WALLACE: There was some...

BROWNSTEIN: Jimmy Carter septuagenarian attack dog. I mean, who would have expected it. Nobel prize winner with a cudgel.

And Bill Clinton, I thought, raised the evening's single most extraordinary argument that really underscored...

HEMMER: That was?

BROWNSTEIN: Well, when Clinton said at one point, "During the Vietnam era, many people, including myself, and President Bush, and Vice President Cheney, chose not to go. John Kerry chose to go." How extraordinary.

Bill Clinton, after all the grief he took in 1992 over whether he dodged the draft, who wrote in his memoirs that he's still unsure whether his position was rooted in conviction or cowardice, for him to raise that underscores, I think, how heavily the Democrats intend to focus on this personal contrast between what the two men, President Bush and John Kerry, did in the Vietnam era to try to qualify Kerry as commander in chief in the mind of the voters.

HEMMER: Inserting himself into the issue himself.

BROWNSTEIN: Yes.

KING: You have the Kerry campaign saying quiet, but strong, steady leadership, trying to contrast that what they hope that some swing voters get turned off by, which is a president who seems brash, almost proud to, you know, pound his chest a bit.

WALLACE: And that's a big contrast, too, because they can blunt the Republican argument to try and say that John Kerry is not the national security leader who can take this country ahead. And something else that John Kerry we're learning is going to do today, he's going to call for extending the September 11 Commission for 18 months. It expires August 28.

This coming a day after President Bush met with his task force. Clearly, national security a big issue. And John Kerry continues to trail in the polls on that.

BROWNSTEIN: I think that's one of the things that's extraordinary about this first night. I mean, it underscores, really, the extent to which Democrats want to challenge Bush directly on what his campaign, and I think most analysts have assumed is going to say is his greatest strength...

HEMMER: Let me stop you there, Ron.

BROWNSTEIN: ... his national security record.

HEMMER: You're saying that you get this sense from delegates that there's ambivalence toward the war in Iraq?

BROWNSTEIN: I think there is ambivalence being reflected from the speakers on the war in Iraq. It was quite striking last night. Jimmy Carter and Al Gore walked right up to the edge of saying the war has been a mistake, as John Kerry has done. But neither one directly said so.

They want to make the argument about, what do we do from now forward? But I think they run the risk of leaving Americans with the impression that they're vacillating or not being entirely clear, unless -- and I think it's more important for John Kerry on Thursday -- they give us a clearer sense of whether they believe this has made us safer or not.

KING: And there's a small minority on the floor, and they're outnumbered and they know it. But -- who wanted a much more stronger platform, who wanted the Democratic Party to say Iraq was a mistake and we should not have gone to war there.

The Kucinich delegates, some of the Dean delegates -- remember, that's what got the Democratic excitement up to begin with, Howard Dean saying the war was wrong, what are the rest of you Democrats saying? The Kerry campaign asked Dennis Kucinich to go to the Colorado breakfast this morning, because he has a good group of delegates there.

They want a little bit more. There's no revolution, there's no revolt. Not trying to make a big deal out of this. They just want to say, calm down, everything's OK.

WALLACE: But as you said, John, this is aimed at America outside.

HEMMER: Dick Gephardt said that same thing.

WALLACE: And Kerry advisers say they love the headlines. You know the headlines they love? Democrats going for the middle, aiming for the swing voter, unified.

HEMMER: I'll tell you, between commercials, he said, "We have finally realized we don't speak to the people who are here. We speak to the people who are out there, to the camera lens."

KING: But if you're aiming for the middle, and you send up Bill and Hillary Clinton, two of the most polarizing figures in American politics, Monday and Tuesday, good luck if you're going for the middle with those...

BROWNSTEIN: Very good point. If you look at the trajectory of their careers, last night may be remembered as the last time Hillary Clinton introduced Bill Clinton at a Democratic convention, rather than vice versa.

HEMMER: Thanks. We call it "On the Floor."

John, great to see you.

Ron, thanks again.

And Kelly, see you tomorrow.

Thanks again.

WALLACE: Thank you.

BROWNSTEIN: Thank you.

HEMMER: Another reminder here. Join us tomorrow for our special Democratic convention coverage here. It will be day three at that point.

Some of our guests tomorrow already include Howard Dean, the former candidate himself. Delaware Senator Joe Biden is here. The governor of Pennsylvania, Ed Rendell, Al Sharpton, Al Franken, the radio host from "Air America."

A packed show already lining up for you tomorrow morning, on Wednesday here on AMERICAN MORNING.

Yet again back to New York again and Heidi for more -- Heidi.

COLLINS: All right, Bill. Thanks a lot.

From his Crawford ranch, President Bush yesterday held his first task force -- task force meeting yesterday on the recommendations of the 9/11 Commission. During a video teleconference, he met with high- level administration officials who gathered at the White House. But some members of Congress say the president should have acted even sooner to overhaul the intelligence community.

Ed Henry explains.

(BEGIN VIDEOTAPE) ED HENRY, CNN CONGRESSIONAL CORRESPONDENT (voice-over): Even as President Bush mulls quick action on massive intelligence reforms, Democrats say he should have acted before the 9/11 Commission prodded him along.

H. CLINTON: I would have liked to have seen the president do some of this on his own. Many of us have been making proposals that are very much like what came out in the 9/11 Commission. I personally have introduced legislation every year.

HENRY: The Republican-led Congress is also feeling pressure to act, even though lawmakers are on recess.

UNIDENTIFIED MALE: It looks like FBI is Wednesday afternoon.

HENRY: Senate staffers have shelved vacations to pore through the commission's report in preparation for next week's hearings to consider the creation of a national intelligence director position, and a new counterterrorism center. House leaders had initially urged a more cautious approach.

DENNIS HASTERT, SPEAKER OF THE HOUSE: We're not going to rush through anything.

HENRY: But House Republicans have reversed themselves. They now have at least two different panels planning a series of hearings, kicked off by Congressman Chris Shays next week, and followed up by Congressman Chris Cox in mid August. Analysts say the 9/11 Commission is making sure Congress and the White House are feeling the heat.

PAUL LIGHT, GOVERNMENT REFORM EXPERT: The co-chairs have been quite blunt that responsibility for the next attack may well reside with Congress and the president. That action is essential now, because an attack is not just possible, but probable. And I think the co-chairs have made that quite clear. They've really put Congress and the president on the spot here.

HENRY (on camera): One senior Republican aide told CNN that with warnings of more attacks, "We damn sure better do something." But some experts think Congress will be in such a rush to do something, anything, before they adjourn in October, they may only have time to create the national intelligence director post and will leave the other reforms on the cutting room floor.

Ed Henry, CNN, Washington.

(END VIDEOTAPE)

COLLINS: The U.S. military is looking into an explosion in central Baghdad today. An Associated Press photographer saw at lest one person dead and one injured in a residential neighborhood that was struck by mortar fire earlier.

Meanwhile, investigators have found startling evidence connected with some suicide bombers in Iraq. Barbara Starr is live now at the Pentagon with more. Barbara, hello.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Heidi.

Well, a top U.S. Central Command official now confirms to CNN that they have seen several instances of recent evidence that suicide bombers in Iraq may have been forced to carry out these missions against their will. This is now suggesting that many of these attacks carried out by Iraqis, forced to do it, rather than some of those foreign fighters we have heard so much about.

Now, Central Command says there are several cases that they are looking into. One, where troops found a body with a foot tied to a rope inside a car after a suicide attack. In another case, they found evidence of individuals having their entire families held hostage by extremists while they were forced to go out and carry out a suicide attack.

In another instance, they're talking about suspected bombers actually ran away from their cars loaded with explosives and ran towards U.S. troops. Obviously, in an apparent attempt to save themselves during these attacks.

And then still other cases they have looked at. They have found instances where extremists have followed cars with suicide bombs in them, followed them with remote detonators, and then detonated the cars. So a trend they are looking into in several cases where they believe Iraqis are being compelled to carry out some of these very deadly attacks -- Heidi.

COLLINS: Wow. Barbara, is there anything that the military officials can do to get a handle on this?

STARR: Well, exactly. That is what they are trying to focus on now. Their best weapon, they say, is better intelligence, trying to see who is behind all of this. But they had, for example, one very interesting case. They told us about, the Central Command, where they went to a house and they found an entire family being held hostage, again by extremists, while someone was out carrying out one of these forced suicide attacks.

One of the other trends they're looking at, though, is what they call so-called weekend jihadists. These are indeed the young men who come into Iraq from neighboring countries, have little or no money. And then they are taken over, if you will, by these insurgent groups and forced to carry out these attacks. So they're looking at all of this, hoping to get better intelligence on this disturbing new trend -- Heidi.

COLLINS: Very disturbing indeed. All right. Barbara Starr live from the Pentagon this morning. Thanks, Barbara.

For now, back to Bill in Boston.

Hey, Bill. HEMMER: All right, Heidi.

Alexandra Kerry here in Boston, one of the daughters of John Kerry, filming a documentary about her father's presidential run. And so is Alex Tanner. The difference is that Alex Tanner and her father are fictional characters in a series for HBO. Alex is played by Cynthia Nixon. She's with me here now on the floor of the FleetCenter.

Good morning to you.

CYNTHIA NIXON, ACTRESS: Good morning.

HEMMER: Nice to see you again.

NIXON: I have to tell you, though...

HEMMER: Yes? Tell me.

NIXON: ... that the original series was on HBO. But the one that we're doing now is on the Sundance Channel.

HEMMER: It's a long way from "Sex and the City," isn't it?

NIXON: It is.

HEMMER: Are you active politically?

NIXON: No. My daughter goes to public school in New York. And I went to public school. And so I fight for education funding. And I go to planned parenthood things every now and again. But...

HEMMER: But do you have a party affiliation? Would you ever offer yourself to Republicans or Democrats or...

NIXON: I'm -- I'm a Democrat. I've always been a Democrat.

HEMMER: And would you ever offer to go out and speak on behalf of the party or push a candidate?

NIXON: I never have. But I suppose it's possible.

HEMMER: You're in the world of celebrity. And we have heard a lot from celebrities already. And it's only, what, late July.

Whoopi Goldberg had a few comments that went public. Elton John had some comments about activism in America. Linda Ronstadt out in Las Vegas.

NIXON: Meryl Streep.

(CROSSTALK)

HEMMER: Meryl Streep as well.

NIXON: Yes. HEMMER: Do you think there is a voice for celebrities? And I guess, more importantly, do you think Americans listen?

NIXON: I think, you know, definitely Americans listen to celebrities. And, you know, whether that's good or bad, I think it depends on your political persuasion and what that celebrity happens to be saying. But I also don't think you should -- you know, you should gag yourself just because you are a celebrity.

HEMMER: So when people talk, others listen is what you're suggesting?

NIXON: Yes. Yes. I listen.

HEMMER: Were you here last night for the speeches?

NIXON: I was not. I had a 3:30 a.m. wakeup call. And I went to bed at 7:30. And an attempt to get eight hours' sleep.

HEMMER: You beat me by 30 minutes. For the viewers at home who have never experienced a convention before -- and granted, you weren't here in prime-time last night...

NIXON: Right.

HEMMER: ... what is the sense of what you're seeing around you?

NIXON: It's wild. I mean, you know, we -- "Tanner '88," which was the original part of our series, was in Atlanta in '88. And we went to the convention then. And it seems very much the same.

You know, it's a wild, huge meeting of people who really care about politics. But it also is just a mediafest.

HEMMER: And it brings a lot of people together from all walks of life.

NIXON: Yes.

HEMMER: What's the plot for this next one? Can you share?

NIXON: The plot for the next one is I'm -- I'm a documentary filmmaker. I'm the daughter of the former candidate. And I'm making a documentary film about my dad and what it took for him, or anybody else to run for president. And how politics has changed since '88.

HEMMER: Good luck with your own campaign.

NIXON: Thank you.

HEMMER: Cynthia, great to see you.

NIXON: Thank you.

HEMMER: Cynthia Nixon.

NIXON: Take care.

HEMMER: In a moment here, most e-mail users think it's a scourge, but some people actually like it. Andy's 'Minding Your Business.' Back in a moment here with that story.

Also in a moment, Teresa Heinz Kerry never afraid to speak her mind. Will that take a toll in her husband's campaign? You'll hear that.

And what starts out as a typical show at Sea World gives way to some scary and rather tense moments, too. Watch the video. Back in a moment here, live from Boston in the FleetCenter.

(COMMERCIAL BREAK)

COLLINS: As if games, instant messaging, Internet access and day planners weren't enough on your cell phone, now there's something new you can really be distracted by. With that, and a check on the market, Andy Serwer is "Minding Your Business."

OK. So markets first.

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Good to see you. Yes, let's do that. By the way, Jack doesn't have any of these problems with the things on his cell phone because he doesn't have...

COLLINS: No, of course not.

CAFFERTY: I don't own any of those things, that's right.

SERWER: Yes. All right. Let's talk about the markets first.

Stocks trading up to begin with. We see this every day, though. The stocks are up in the morning. Let's see if we can hold this one.

Dow is up 44 points. What's moving, Verizon is up to $1.30 to $37, reporting its business is going well.

U.S. Air reports a profit. Wow! The stock is up 37 cents to $2 and change. But they say they're not going to make any money for the rest of the year.

Lockheed profits are up, too. But they're a defense contractor, so they should.

Also, one-fifth of all Americans report they buy things from spam that comes to their -- who are these people? Why do they do that? Let's talk about these devices, though.

COLLINS: Yes. A little jingle, huh?

SERWER: Yes. What's going on now is, you know the iPod and iTunes is a very successful device made by Apple. "Newsweek" cover story, by the way, this week. Motorola is now going to do a deal with Steve Jobs' little handy-dandy iPods there so you can get iTunes on your phone. I'm not sure what the heck you're going to do with these tunes on your phone. I guess you listen to them in your ear like this. You know, so you're listening to "Brandy, you're a fine girl, what a good wife you would be," when you're really supposed to be working.

COLLINS: If that's what you would be listening to, right?

SERWER: That's what I would be listening to, one of my favorite songs.

CAFFERTY: Why do we need all this garbage?

SERWER: Yes. You know, sometimes I wonder if they really think there's a market for this.

CAFFERTY: iTunes on your phone?

SERWER: Yes.

CAFFERTY: And what the hell is that about?

SERWER: But you don't have a phone to begin with, so you don't have a problem with this.

CAFFERTY: iTunes on your phone.

SERWER: You don't have a problem with this. See?

CAFFERTY: I mean, I -- when the phone -- I just want to pick it up, say, "Hello," whatever it is, and be done with it. I don't need iTunes on my phone.

(CROSSTALK)

SERWER: I was trying to figure out the other day -- it had a tip calculator for a restaurant.

COLLINS: Perfect.

SERWER: Yes. I mean...

COLLINS: You've used it a lot, right?

SERWER: Oh, yes. I mean, all the time.

So, anyway -- but iTunes really hot. And this is just a quickie here. They've sold four million of those iPods.

COLLINS: Yes.

SERWER: But here's the market they're trying to get into, 550 million phones. So you can see what Steve Jobs is trying to do.

COLLINS: Yes, you can. All right. Andy, thank you so much for that.

SERWER: You're welcome.

COLLINS: Jack's not excited about it.

CAFFERTY: I get very confused by that modern technology.

SERWER: Yes.

CAFFERTY: The "Question of the Day" is something I can understand. Teresa Heinz Kerry, is she an asset or a liability, politically speaking?

Annette in Irving, Texas, "Ms. Heinz proved one thing to me, that my mother was correct when she said, 'You can't buy class, you either have it or you don't.' Ms. Heinz Kerry may have all the money in the world, but she has no class as far as I'm concerned. I shudder to think that she may be the next first lady."

"How refreshing to see an honest woman being true to herself and her beliefs. The press is accustomed to categorizing and manipulating a person's public image. That does not mean a strong person cannot object to that manipulation. Well done, Mrs. Kerry."

And Martha in Richmond, Virginia, "Teresa Heinz Kerry is strong, opinionated and somewhat cranky at times. Hmm. Sounds like someone else I know. Perhaps we should have a question as to whether you, Jack Cafferty, are an asset or liability to CNN."

Let's don't have one of those. That's not a good idea.

(LAUGHTER)

SERWER: Voice vote!

"I think Mrs. Kerry's fascinating, intelligent and caring. Sometimes I feel I could say the same for you."

Well, thank you, Martha.

COLLINS: Oh.

SERWER: That works.

COLLINS: Yes. I'm glad you ended on a nice note.

CAFFERTY: Yes. I want to get some iTunes on my telephone.

(CROSSTALK)

SERWER: Yes, your gizmo.

COLLINS: In the meantime, a somewhat bruised but happy ending at a killer whale performance. Kai (ph), a killer whale at Sea World in San Antonio, Texas -- look at this now -- slammed his trainer underwater repeatedly during Friday's show.

The trainer was OK and did return to work today. He says he was scared, but stayed calm through the incident. The trainer says Kai (ph) is near his breeding age, and that might explain his unusual behavior.

SERWER: Oh, no. Goodness.

COLLINS: Maybe he's just a little bit confused about who to breed with.

CAFFERTY: Can't say much for his taste in mates.

COLLINS: But -- yes.

SERWER: Oh, wow.

COLLINS: Man.

SERWER: That puts that in a whole new perspective.

COLLINS: It does.

All right. We're going to throw things back to Bill, where it's much safer on the convention floor there, right, Bill?

HEMMER: We kind of have these drowning episodes on AMERICAN MORNING from our own staff.

COLLINS: Sometimes.

HEMMER: Quiet. Break here. When we come back, the sweet sounds of Gabriel Lefkowitz on stage last night. A very poignant tribute to those who lost their lives back on September 11. You'll meet him after this.

(COMMERCIAL BREAK)

HEMMER: The sweet and tender sounds last night on stage here at the FleetCenter of Gabriel Lefkowitz and his violin. Asked to play attribute to those who lost their lives back on 9/11. It was one of the highlights from last night. And the 16-year-old violinist now our guest here on AMERICAN MORNING.

Good morning to you.

GABRIEL LEFKOWITZ, MUSICIAN: Good morning. How are you?

HEMMER: Wonderful job last night.

LEFKOWITZ: Thanks.

HEMMER: Is it true that they picked you three days ago?

LEFKOWITZ: Well, four days ago, sir. It was three days' notice. It was Friday, pretty late in the afternoon on Friday. So, yeah, I didn't have that much time to prepare.

HEMMER: There were thousands in the FleetCenter last night. LEFKOWITZ: Yes, there were.

HEMMER: What did that mean to you, not only to play in front of these people, but I think, more importantly, to try to capture the moment of September 11?

LEFKOWITZ: It was just absolutely incredible. I mean, I'm there, and there's so many people here. And then the lights were -- the lights were down, the audience was quiet.

I had the spotlight. And, you know, everyone was just holding those lights to commemorate 9/11. It was just truly amazing.

HEMMER: Listen, job well done.

LEFKOWITZ: Thank you very much.

HEMMER: Really well done.

LEFKOWITZ: Thank you.

HEMMER: It's an absolute honor to meet you.

LEFKOWITZ: Thank you. Thank you.

HEMMER: And what do you have for us today?

LEFKOWITZ: Tchaikovsky (UNINTELLIGIBLE).

HEMMER: All right. Well, knock yourself out and take us to commercial break, OK? Nice to see you, Gabe.

LEFKOWITZ: I will. Nice to see you.

HEMMER: It's all yours.

(MUSIC)

(COMMERCIAL BREAK)

CAFFERTY: I'm trying to think...

SERWER: Just doing lyrics and...

COLLINS: Yes. And here we are back with everybody.

CAFFERTY: Yes.

SERWER: Oh, we're here.

COLLINS: We are here.

SERWER: Good.

COLLINS: Just want to say thanks for watching, everybody. From New York, Heidi Collins, Jack Cafferty and Andy Serwer. Goodbye to you all.

For now, we send it back to Bill, though -- Bill. Gabriel, fabulous violinist. That was really a treat.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired July 27, 2004 - 9:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
WILLIAM JEFFERSON CLINTON, FMR. PRESIDENT OF THE UNITED STATES: So let us join tonight and say to America in a loud, clear voice, send John Kerry! God bless you.

(END VIDEO CLIP)

BILL HEMMER, CNN ANCHOR: Good morning from Boston. Former President Clinton brings delegates to their feet on the first night of the Democratic convention.

Teresa Heinz Kerry responds to her response to a newspaper editor.

(BEGIN VIDEO CLIP)

TERESA HEINZ KERRY, JOHN KERRY'S WIFE: This person was trying to trap me, and I was not going to let them.

(END VIDEO CLIP)

HEMMER: My interview today with the senator's wife, who says she has no regrets.

And John Kerry campaigning in Florida, getting a classic photo op this the cockpit of the Shuttle Discovery.

Full convention coverage ahead on day two on this AMERICAN MORNING.

ANNOUNCER: This is AMERICAN MORNING. From the Democratic National Convention in Boston, here's Bill Hemmer.

HEMMER: High atop Boston, welcome back, everyone. It is day two of the Democratic National Convention. We are on the floor of the FleetCenter, where the political energy never out of the room, especially in prime-time.

The air charged again last night. Former President Bill Clinton headlining an array of Democratic heavyweights on the stage. We'll look back at some of those speeches in a few moments here in Boston.

Also looking ahead later tonight. John Kerry's wife, Teresa Heinz Kerry, among the prime-time speakers. In a few moments, we'll hear what she has to say about her run-in with the journalist on Sunday night when she told him to "shove it."

Also this morning, Senator Kerry's photo op from the cockpit of the Shuttle Discovery. He had to put on one of those light blue jumpsuits for that tour. A few eyebrows raised on that one. We'll talk about it, get reaction as well on that.

Also, to my colleague in New York, Heidi Collins, standing by there.

Good morning, Heidi.

HEIDI COLLINS, CNN ANCHOR: And good morning to you once again, Bill.

A lot of other news as well this morning. We'll get to the Scott Peterson murder trial. Testimony continues this morning. And yesterday, the jury getting a fishing lesson. Gloria Gomez will update us on all of that.

For now, though, here's Jack.

JACK CAFFERTY, CNN ANCHOR: The senator from Massachusetts looking like the Pillsbury dough monster in that...

COLLINS: That's a new phrase here, yes.

CAFFERTY: ... white suit.

Teresa Heinz Kerry, asset or liability? We are getting a ton of mail. Is she refreshingly outspoken or perhaps a loose cannon capable of derailing the campaign at some point? Am@cnn.com.

COLLINS: Yes, we are getting a lot of mail. All right. We'll wait for more on that.

Bill, back to you in Boston now.

HEMMER: All right, Heidi.

Later tonight, going to bring another lineup of high-profile convention speakers tonight. On tap, former candidates for the White House, Howard Dean, Dick Gephardt, Teresa Heinz Kerry on that list. Some following some big opening acts from last night. Bob Franken takes us back to last evening, evening one here at the DNC.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): A reminder, Democrats: your nominee will be John Kerry. Try and remember, it's not Bill Clinton. He was just there to help Kerry.

CLINTON: After three conventions, as a candidate or a president, tonight I come to you as a citizen, returning to the role that I have played for most of my life as a foot soldier in our fight for the future, as we nominate in Boston a true New England patriot for president. (APPLAUSE)

FRANKEN: He's the former president, of course. But that other Clinton was there, too, with all the talk of her of trying to become a future president. But that's for another night.

SEN. HILLARY RODHAM CLINTON (D), NEW YORK: We need a new commander in chief named John Kerry!

(APPLAUSE)

H. CLINTON: I've been saying for many months now, John Kerry is a serious man for a serious job in a serious time in our country's history.

FRANKEN: The Democrats have done something very unusual this year. They've stopped bickering, united in the common cause of beating George W. Bush, cheering again for the man they feel beat him last time.

AL GORE, FMR. VICE PRESIDENT OF THE UNITED STATES: The first lesson is this: take it from me, every vote counts.

(APPLAUSE)

FRANKEN: The tedious, massive security outside did nothing to dampen the Democrats' enthusiasm inside the FleetCenter. And tonight, the pep rally continues. Tonight, Howard Dean speaks once again of the fight against President Bush.

(END VIDEOTAPE)

FRANKEN: So we're hearing about the past and the future. But the present Democratic nominee is John Kerry. And what he will find Thursday night, Bill, is that he's followed some really good opening acts.

HEMMER: Bob, thanks for that outside the FleetCenter.

Back inside here now on the floor. Teresa Heinz Kerry speaks later tonight. Last night, I sat down with her, talking about her husband, herself, and the words she had for a reporter on Sunday evening.

(BEGIN VIDEOTAPE)

HEMMER: Take me back to Sunday night. Do you regret telling that reporter to "shove it?"

HEINZ KERRY: No. No. I respect reporters, and I respect anyone who does their job well.

I don't, like anybody else, want to be trapped or be misrepresented intentionally by someone. That's what happened, and I defended myself.

HEMMER: The quote I have is that you said "un-American traits."

HEINZ KERRY: No, "un-Pennsylvanian."

HEMMER: OK. Back up a little bit then. "We need to turn back some of the creeping un-Pennsylvanian..."

HEINZ KERRY: Traits.

HEMMER: "... and sometimes un-American traits that are creeping into some of our politics."

HEINZ KERRY: Correct.

HEMMER: That's the way you remember it?

HEINZ KERRY: And that's absolutely correct. I would say that again.

HEMMER: And what did the reporter say to you then?

HEINZ KERRY: "Un-American activities," which has a very different connotation. It's a political connotation of McCarthy implications, which I would not use unless it was very specific. And I would use it if it was correct. But that's not what I was talking about.

HEMMER: Why not just walk away?

HEINZ KERRY: Because this person was trying to trap me, and I was not going to let them.

HEMMER: What does America get in Teresa Heinz Kerry as first lady?

HEINZ KERRY: They'll get a caring, honest, practical, hopeful person who, in spite of a lot of hurt, and a lot of losses in my life, have always picked up and hoped and worked with (ph) a better day. And that's what they'll get, a good mother, and a good friend.

HEMMER: Do you enjoy this campaign?

HEINZ KERRY: Yes, love it.

HEMMER: You do?

HEINZ KERRY: People are wonderful. People have been wonderful.

HEMMER: Do you like American politics?

HEINZ KERRY: Better than anything I've known, yes. Better than anything I've known, which is a dictatorship.

HEMMER: Your first husband at one point, it's almost become a famous line, when it was rumored that when he would run for the White House, you said, "Over my dead body."

HEINZ KERRY: Always. I've always said so, which terrified me.

HEMMER: Why?

HEINZ KERRY: Well, the first time he said that I was 37. Are you kidding me? Scared. Scared to death.

HEMMER: What changed with Senator Kerry? Or perhaps you've changed?

HEINZ KERRY: I'm older. I see life through a -- you know, a shorter life span prism. The issues that I work on mean a lot to me.

I think John can make a very big difference. And he is an optimist, but quite conscious about what he does and what he knows, and where he wants to go. And I have a lot of experience also.

And so I, quite frankly, felt that I would be selfish and really have no right to block his run. In fact, I really should help him. But it was not an easy thing for me to come to terms with. But I finally did.

HEMMER: You said a few months ago you think he should gain some weight.

HEINZ KERRY: And he did, mercifully.

HEMMER: How much?

HEINZ KERRY: Ten pounds. And he still has...

HEMMER: You thought he should gain 20 pounds, I believe, right, all over his body?

HEINZ KERRY: Yes. He's on his way. He's on his way up. But, you know, he was sick last year, and early last year, and he lost some weight. And he never had time to rest or regain it.

HEMMER: Is there a first lady you look up to?

HEINZ KERRY: I look up to Mrs. Ford. For the brief time she was there, she had to deal with several problems, as you remember, getting over certain problems, having cancer, and talking about it so people would know.

People say, "Well, who are you going to be like?" I said, "I'm going to be like me if I get there. You know, I'm going to be like me." Let Laura Bush be Laura Bush, and let Hillary be Hillary. All I ask for is give me a chance.

(END VIDEOTAPE)

HEMMER: Teresa Heinz Kerry will be on the stage later tonight after 10:00 Eastern Time. Also on the stage tonight, Howard Dean, Dick Gephardt. Ted Kennedy is there, Barack Obama, out of Illinois, and Ron Reagan, the son of the late president, Ronald Reagan. All here in Boston, all will deliver their speeches here at the FleetCenter.

One way you can tell at every convention how critical states can be is the seating arrangement here. Massachusetts front and center, the home state and hosting state for John Kerry in this convention.

On the other side, front and center, North Carolina, the home state of John Edwards. And here, the state of Iowa that gave John Kerry that victory in the primaries back in mid January that helped catapult him to the point where he finds himself today.

It's going to be another interesting day. Day two continues here in Boston.

Back to Heidi now in New York -- Heidi.

COLLINS: All right, Bill. Thanks for that.

This morning, a "Salt Lake City Tribune" reports that missing Utah woman Lori Hacking may have found out about her husband's deceptions just days before she vanished. It reports coworkers believe she tearfully left work after discovering her husband wasn't going to med school.

(VOICE-OVER):

MELISSA SUGDEN, FRIEND OF LORI HACKING: I was in the parking garage with my friend Jen, and I saw her come across the skywalk. And I said, "hey, look, there's Lori." And Jen says, "Wow, it looks like she's crying." And I said, "Yeah."

So she came up the skywalk and I go, "Hey, Lori, what's up?" And she usually talks to me because we vent about everything all the time. And she just said, "Nothing," and she walked away. And she was walking so fast away, and I said, "Are you sure?" And she said, "Yeah."

And then she got in her car, she zoomed past at us, didn't even look at us, and left. And, I mean, I've been friends with Lori for a while, so I knew something was wrong. But I didn't -- I should have called her, and I was going to, but then I just -- I just got busy over the weekend and I didn't.

(END VIDEO CLIP)

COLLINS: The spokesman for the Hacking family also talked about these reports just a short while ago.

(BEGIN VIDEO CLIP)

SCOTT DUNAWAY, HACKING FAMILY SPOKESMAN: The family was unaware of that phone call or that particular incident. They -- they understand that there were a number of instances, circumstances that took place over that weekend that were probably upsetting to Lori. But other than being concerned about generally the deceptions that Lori probably learned about over the weekend, they really don't know.

(END VIDEO CLIP)

COLLINS: Lori Hacking disappeared last week. Police continue to say her husband, Mark, is considered a person of interest in her case.

Now to Scott Peterson's double murder trial. The prosecution continues to attack Peterson's alibi on the day his wife Laci disappeared. Gloria Gomez, reporter for Sacramento TV station KOVR, is covering the trial. She joins us now from the courthouse in Redwood City, California.

Gloria, thanks for being here. Prosecutors, as you know, spent most of yesterday questioning a commercial fisherman. What was that all about?

GLORIA GOMEZ, KOVR: Well, they wanted to ask him what exactly Scott Peterson had in his fishing boat that -- that suggested he was going sturgeon fishing. Well, the commercial fisherman shot down everything Scott Peterson had as far as -- as far as his fishing equipment. He said he had the wrong gear, he had the wrong fishing line, the wrong fishing lure, even the wrong fishing pole.

He also talked about the anchor Scott Peterson was using, the cement anchor, saying that that was the wrong anchor to hold the boat steady for sturgeon fishing, that basically you have to be really steady in the water. And he just basically had everything that was inappropriate to go sturgeon fishing.

COLLINS: Did the prosecution succeed, do you think, with the jury in showing that Scott lied about his intentions of fishing?

GOMEZ: Well, I think the prosecution made a point, not only showing that he had the wrong fishing gear, but that prosecutors are trying to say, you know, he wasn't there to go sturgeon fishing, he was there to dump his wife's body in the bay. And I think the biggest point that was made by this commercial fisherman was the fact that he talked about how this fish, which is a 150-pound fish, could be thrown off the back of the boat without the boat tipping over.

Now, that's pretty significant, because prosecutors believe that that's how Scott Peterson dumped lace's body out without tipping the boat over. And, of course, the defense questioned that, and going, "Well, wait a minute, didn't you say that in order to do that you had to have help to throw this big fish over?" And the fisherman said, "Well, it would be nice to have help." He goes, "But I've done it myself, where I've been able to toss this fish out of the boat without it capsizing."

COLLINS: All right. Now, what about this friend of the family who says that he advised Scott and Laci to get two different life insurance policies? How is that going to play into all of this?

GOMEZ: Right. Well -- well, apparently, the financial adviser said that he wanted Laci to get a $100,000 worth of life insurance policy and Scott Peterson $250,000, and that Laci didn't want that. That Laci wanted to match Scott Peterson dollar for dollar. So she also wanted the life insurance policy to be worth $250,000. But there is a clause on this policy that says that if one of them goes missing, that they have to wait seven years in order to cash out on that policy. And we learned yesterday that Scott Peterson never inquired about getting that cash. So if the prosecution is trying to insinuate that there's some sort of financial motive, they didn't prove their point yesterday.

COLLINS: All right. Gloria Gomez from KOVR, thanks so much for that this morning.

GOMEZ: Thank you.

COLLINS: It is just about 14 minutes past the hour now. Time for a look at some of today's other news and Daryn Kagan.

Hi, Daryn.

DARYN KAGAN, CNN ANCHOR: Heidi, good morning.

Once again, we begin with President Bush, who is working on homeland security issues while he is at his ranch in Texas this week. The president and a task force met via videoconference yesterday to discuss some of the more than 40 recommendations from the 9/11 Commission. The White House is studying which of the proposals could be implemented by executive order and which require congressional approval.

The standoff over a California state budget appears to be over. California Governor Arnold Schwarzenegger announced yesterday an agreement on an estimated $103 billion spending plan. Lawmakers spent 26 days arguing over the budget, during which the governor called some Democrats "girlie men." The budget still needs approval by the state legislator.

The Justice Department is reporting details on a problem that's resulting in thousands of illegal gun sales. More than 7,000 people who should have been barred from buying guns were able to buy them anyway. That was back in 2002 and 2003.

According to federal law, if the background check isn't completed within three days, the purchase must go through. But 97 percent of those illegally sold weapons were retrieved.

Teen actress Mary-Kate Olsen has been released from a health facility where she underwent six weeks of treatment. The 18-year-old star and her twin sister, Ashley, have built their acting careers into a billion-dollar franchise. Mary-Kate was being treated for an eating disorder widely reported to be anorexia. The twins are now set to enroll at New York University next month.

We wish her well in her recovery.

Now back to Bill, doing a great job in Boston.

HEMMER: Well, thank you, Daryn. Thank you. I owe you a dollar. KAGAN: Yes, that's all right. In the mail.

HEMMER: Daryn, thanks.

In a moment here, Dick Gephardt fighting John Kerry for the Democratic nomination just six months ago. Now he is on the same team. We'll talk to the Missouri congressman in a moment. He's on stage later tonight as well.

Also, a touching tribute last night here at the convention. I'll talk to the young performer behind him this hour on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone. Welcome back, everyone.

Missouri Congressman Dick Gephardt addressing the delegates on the second night of the convention here in Boston. Tonight's theme, a lifetime of strength and service fitting for the 14-term congressman. The two-time presidential candidate retiring at the end of the current session. Dick Gephardt my guest now here at the FleetCenter.

Good morning to you.

REP. RICHARD GEPHARDT (D), MISSOURI: Good morning, Bill.

HEMMER: Nice to see you.

GEPHARDT: Good to be here.

HEMMER: Take me to your home state, the Show-Me State. The latest survey we show, it's a 50-50 split, 48 to 48. What explains that between Bush and Kerry today?

GEPHARDT: It's not the Show-Me State for nothing. That's the way people always are in Missouri.

They're cautious. They are good judges. They sit back. They don't make up their mind really quickly. But when they do, they're usually right. Missouri has picked the president in all the last elections over the last 10 cycles, except once with Adlai Stevenson in '56.

HEMMER: This year, in 2004, is it the economy or is it Iraq?

GEPHARDT: It's both.

HEMMER: Because oftentimes we hear Democrats come out and say it's all about the economy. But last night was about Iraq and the war on terror and leadership.

GEPHARDT: It's about both. People out in the country, in St. Louis, and my district, if you go out and talk to them door to door today, they'd talk first about the economy, worried about jobs, worried about wages. But they're also worried about where we are in the world because they know that the security issues are right in front of them every day.

HEMMER: What is your message tonight?

GEPHARDT: I'm going to talk about John Kerry, the John Kerry that I have known for 20 years. I'm going to talk about what a good person he is, his judgment, his wisdom, his good heart. And if I can get any of that across in my five minutes, it will -- it will make it worth it.

HEMMER: Are you happy to be here?

GEPHARDT: Absolutely.

HEMMER: Or is this a bit bittersweet...

GEPHARDT: No.

HEMMER: ... knowing you're coming toward the end of your time in Washington and knowing that you gave John Kerry a run back in January?

GEPHARDT: I always have felt this election is not about me, or really any of the candidates. It's about the future of the country.

I just want us to win this election for all the right reasons. And I'm happy with the result. And I'm happy with what -- what's ahead of me. And I will work hard to win this election and help this ticket.

HEMMER: I think it was about three and a half, four weeks ago when a headline said that you were the guy, you were the pick for John Kerry.

GEPHARDT: If you get some of those, I'll sign them and put them on eBay.

HEMMER: Here it is, "New York Post," "Kerry's Choice: Dem Picks Gephardt as VP Candidate." How did that happen? Do you know?

GEPHARDT: I have no idea. You know, you can't believe everything you read.

HEMMER: Now I know.

GEPHARDT: That's exactly right.

HEMMER: Good luck to you, all right?

GEPHARDT: Thanks so much.

HEMMER: And thanks for being such a good man for us all these years.

GEPHARDT: Thank you.

HEMMER: And my best to you when you leave Washington.

GEPHARDT: Thank you. Jane's happy.

HEMMER: Oh. Congratulations to her, OK?

GEPHARDT: You bet.

(CROSSTALK)

GEPHARDT: Thanks so much.

HEMMER: Back in a moment. More from Boston. Here's Heidi.

COLLINS: Still to come, John Kerry gets suited up for a photo op. And Republicans get a little mileage out of it. Stay with us right here on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Take some time to check in with Jack and the "Question of the Day."

CAFFERTY: We've gotten over 800 letters. And -- and you know what? Most of the people really like Teresa Heinz Kerry.

COLLINS: OK.

CAFFERTY: Yes, they really -- I mean, I assume we're getting a lot of Democratic mail. But a lot the letters say, hey, she's right on.

She did the impossible. She did make the first day of this convention actually mildly interesting out there in Boston. Love her or hate her, Teresa Heinz Kerry telling a reporter to "shove it," stole the spotlight at the Democratic National Convention even before the opening gavel. And at the end of the week, it may go down as the most intelligent comment made up there.

We asked whether Teresa Heinz Kerry is a political asset or liability. As I said, over 800 letters. Here's two or three real quick ones.

Paul in Hellertown -- let's see -- "I could easily see Teresa Heinz Kerry as a senator or Supreme Court Justice, whereas I would feel quite comfortable being served afternoon tea with cucumber sandwiches from Mrs. Bush."

Ellen writes, "The only reason that THK's" -- that would be Teresa Heinz Kerry -- "relatively innocuous statement has made it to the forefront of the press is because you guys decided to focus on it. Tattoo this on your foreheads: Democratic wives speak their minds, Republican wives don't have any."

Cruel.

Paul in Atlanta writes, "I don't know if she's an asset or liability, but she better do something about that hair."

She does have a lot of hair.

COLLINS: Getting right to the heart of the matter.

CAFFERTY: The subject of envy on the part of people like me, who have precious little.

COLLINS: You have nice hair, though.

CAFFERTY: Well.

COLLINS: Little you have.

All right. Still ahead this morning, startling evidence connected with suicide bombers in Iraq. We'll have a live report on that.

Plus, a scary moment at Sea World. You want to stick around for this in just a moment on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Just a few seconds away from the opening bell, ringing out on Wall Street this morning. The Dow Jones industrial average starts trading at 9,961. That's down a third of a point yesterday. There's the bell now. And at the Nasdaq market site, the Composite Index opens at 1,839. That would be down 10 points.

Welcome back to AMERICAN MORNING, everybody. Ahead this half hour, new information coming to us about suicide bombers in Iraq. Reports now that many of them have been chained into cars they used as weapons. Barbara Starr is at the Pentagon. She'll have the very latest on all of that.

But for now, back to Bill Hemmer, standing by in Boston at the FleetCenter.

Hey, Bill.

HEMMER: Hey. Thank you, Heidi. Good morning again, everyone. Day two of our special coverage here throughout the week from the floor of the FleetCenter here in Boston.

With the Democratic convention under way, John Kerry slowly making his trip up the northeast of the U.S. on his way to Boston. Senator Kerry starts his day today in Norfolk, Virginia, holds a rally about 30 minutes from now. That's where we find Frank Buckley live this morning in Norfolk.

Frank, good morning there.

FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT: Good morning, sir.

Important campaign appearance here in Norfolk, Virginia, for Senator John Kerry in terms of reinforcing his wartime credentials. Of course, Senator Kerry the recipient of the Silver Star and three Purple Hearts during his Navy service in Vietnam. Still, polls continue to show that voters believe that it's President Bush who's better able to handle the war on terror and the war in Iraq. The Kerry campaign saying that's to be expected, that's a natural reaction to an incumbent president during a time of war.

Still, this is a week about introducing John Kerry to voters. Certainly his wartime experience is part of his life. Kerry will pay tribute to the U.S. military here. He'll also talk about transforming the U.S. military to meet new threats, and talk about the importance of quickly adopting the recommendations of the 9/11 Commission. And finally, he'll introduce an idea to support a military family bill of rights to help military families.

From here in Norfolk, Virginia, Bill, he'll be going on to the next stop, heading up to Philadelphia, Pennsylvania, of course a major battleground state in this coming election. And then it's on to Boston, arriving Wednesday. And, of course, Thursday he'll be speaking to the convention -- Bill.

HEMMER: All right, Frank. Thanks for that. We'll watch the traveling again up the northeast coast of the U.S.

We continue a segment this morning now we plan to do every day of the week at this time, finding stories some of the finest political reporters in Boston are chasing here. They all work for us at CNN, too. We call it "On the Floor."

Say good morning to CNN senior White House correspondent, John King, with us today. Kelly Wallace also with us. Kelly's first. There's John and Ron Brownstein, political analyst of the "L.A. Times."

Good morning to all three of you.

RON BROWNSTEIN, "L.A. TIMES": Good morning.

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Good morning.

HEMMER: Very interesting night last night from a floor perspectives. What are you finding out about the delegates and whether or not they're getting what they came here for or not?

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Well, they're not getting the red meat they came here for. Remember, these are all Democrats in the hall. The message from the podium is meant for the voters back home, that small group of undecided voters. So the delegates on the floor, of course, would like more red meat.

What I found interesting is the total control the Kerry people have over this. Tradition at conventions, you see these floor whips running around. When Clinton comes out, they bring out Clinton placards. When Gore comes out, they bring out Gore placards.

No. Only Kerry-Edwards placards, with the one exception of the New York delegation, where they brought "I love Bill" and "I love Hillary." But the rest of the convention, Kerry-Edwards signs everywhere.

HEMMER: What are you hearing?

WALLACE: Same thing. I mean, you know, they're not necessarily getting exactly what they might have wanted, but they don't seem to mind. They are so pumped up.

HEMMER: So you're saying it's -- you're not suggesting it's disappointing to them?

WALLACE: No, not at all, because -- as (UNINTELLIGIBLE) talked about, they're more united than ever. There was sort of good response for Al Gore, but Hillary Clinton, Bill Clinton coming out, rock stars.

One person I talked to put it this way, saying, "Bill Clinton delivered a cogent, tight argument for why John Kerry should be elected." He set the stage. And now John Kerry has to do that on Thursday.

BROWNSTEIN: On the other hand, it wasn't quite as vegan as Bill by the Kerry campaign. I mean, there was some red meat out there.

WALLACE: There was some...

BROWNSTEIN: Jimmy Carter septuagenarian attack dog. I mean, who would have expected it. Nobel prize winner with a cudgel.

And Bill Clinton, I thought, raised the evening's single most extraordinary argument that really underscored...

HEMMER: That was?

BROWNSTEIN: Well, when Clinton said at one point, "During the Vietnam era, many people, including myself, and President Bush, and Vice President Cheney, chose not to go. John Kerry chose to go." How extraordinary.

Bill Clinton, after all the grief he took in 1992 over whether he dodged the draft, who wrote in his memoirs that he's still unsure whether his position was rooted in conviction or cowardice, for him to raise that underscores, I think, how heavily the Democrats intend to focus on this personal contrast between what the two men, President Bush and John Kerry, did in the Vietnam era to try to qualify Kerry as commander in chief in the mind of the voters.

HEMMER: Inserting himself into the issue himself.

BROWNSTEIN: Yes.

KING: You have the Kerry campaign saying quiet, but strong, steady leadership, trying to contrast that what they hope that some swing voters get turned off by, which is a president who seems brash, almost proud to, you know, pound his chest a bit.

WALLACE: And that's a big contrast, too, because they can blunt the Republican argument to try and say that John Kerry is not the national security leader who can take this country ahead. And something else that John Kerry we're learning is going to do today, he's going to call for extending the September 11 Commission for 18 months. It expires August 28.

This coming a day after President Bush met with his task force. Clearly, national security a big issue. And John Kerry continues to trail in the polls on that.

BROWNSTEIN: I think that's one of the things that's extraordinary about this first night. I mean, it underscores, really, the extent to which Democrats want to challenge Bush directly on what his campaign, and I think most analysts have assumed is going to say is his greatest strength...

HEMMER: Let me stop you there, Ron.

BROWNSTEIN: ... his national security record.

HEMMER: You're saying that you get this sense from delegates that there's ambivalence toward the war in Iraq?

BROWNSTEIN: I think there is ambivalence being reflected from the speakers on the war in Iraq. It was quite striking last night. Jimmy Carter and Al Gore walked right up to the edge of saying the war has been a mistake, as John Kerry has done. But neither one directly said so.

They want to make the argument about, what do we do from now forward? But I think they run the risk of leaving Americans with the impression that they're vacillating or not being entirely clear, unless -- and I think it's more important for John Kerry on Thursday -- they give us a clearer sense of whether they believe this has made us safer or not.

KING: And there's a small minority on the floor, and they're outnumbered and they know it. But -- who wanted a much more stronger platform, who wanted the Democratic Party to say Iraq was a mistake and we should not have gone to war there.

The Kucinich delegates, some of the Dean delegates -- remember, that's what got the Democratic excitement up to begin with, Howard Dean saying the war was wrong, what are the rest of you Democrats saying? The Kerry campaign asked Dennis Kucinich to go to the Colorado breakfast this morning, because he has a good group of delegates there.

They want a little bit more. There's no revolution, there's no revolt. Not trying to make a big deal out of this. They just want to say, calm down, everything's OK.

WALLACE: But as you said, John, this is aimed at America outside.

HEMMER: Dick Gephardt said that same thing.

WALLACE: And Kerry advisers say they love the headlines. You know the headlines they love? Democrats going for the middle, aiming for the swing voter, unified.

HEMMER: I'll tell you, between commercials, he said, "We have finally realized we don't speak to the people who are here. We speak to the people who are out there, to the camera lens."

KING: But if you're aiming for the middle, and you send up Bill and Hillary Clinton, two of the most polarizing figures in American politics, Monday and Tuesday, good luck if you're going for the middle with those...

BROWNSTEIN: Very good point. If you look at the trajectory of their careers, last night may be remembered as the last time Hillary Clinton introduced Bill Clinton at a Democratic convention, rather than vice versa.

HEMMER: Thanks. We call it "On the Floor."

John, great to see you.

Ron, thanks again.

And Kelly, see you tomorrow.

Thanks again.

WALLACE: Thank you.

BROWNSTEIN: Thank you.

HEMMER: Another reminder here. Join us tomorrow for our special Democratic convention coverage here. It will be day three at that point.

Some of our guests tomorrow already include Howard Dean, the former candidate himself. Delaware Senator Joe Biden is here. The governor of Pennsylvania, Ed Rendell, Al Sharpton, Al Franken, the radio host from "Air America."

A packed show already lining up for you tomorrow morning, on Wednesday here on AMERICAN MORNING.

Yet again back to New York again and Heidi for more -- Heidi.

COLLINS: All right, Bill. Thanks a lot.

From his Crawford ranch, President Bush yesterday held his first task force -- task force meeting yesterday on the recommendations of the 9/11 Commission. During a video teleconference, he met with high- level administration officials who gathered at the White House. But some members of Congress say the president should have acted even sooner to overhaul the intelligence community.

Ed Henry explains.

(BEGIN VIDEOTAPE) ED HENRY, CNN CONGRESSIONAL CORRESPONDENT (voice-over): Even as President Bush mulls quick action on massive intelligence reforms, Democrats say he should have acted before the 9/11 Commission prodded him along.

H. CLINTON: I would have liked to have seen the president do some of this on his own. Many of us have been making proposals that are very much like what came out in the 9/11 Commission. I personally have introduced legislation every year.

HENRY: The Republican-led Congress is also feeling pressure to act, even though lawmakers are on recess.

UNIDENTIFIED MALE: It looks like FBI is Wednesday afternoon.

HENRY: Senate staffers have shelved vacations to pore through the commission's report in preparation for next week's hearings to consider the creation of a national intelligence director position, and a new counterterrorism center. House leaders had initially urged a more cautious approach.

DENNIS HASTERT, SPEAKER OF THE HOUSE: We're not going to rush through anything.

HENRY: But House Republicans have reversed themselves. They now have at least two different panels planning a series of hearings, kicked off by Congressman Chris Shays next week, and followed up by Congressman Chris Cox in mid August. Analysts say the 9/11 Commission is making sure Congress and the White House are feeling the heat.

PAUL LIGHT, GOVERNMENT REFORM EXPERT: The co-chairs have been quite blunt that responsibility for the next attack may well reside with Congress and the president. That action is essential now, because an attack is not just possible, but probable. And I think the co-chairs have made that quite clear. They've really put Congress and the president on the spot here.

HENRY (on camera): One senior Republican aide told CNN that with warnings of more attacks, "We damn sure better do something." But some experts think Congress will be in such a rush to do something, anything, before they adjourn in October, they may only have time to create the national intelligence director post and will leave the other reforms on the cutting room floor.

Ed Henry, CNN, Washington.

(END VIDEOTAPE)

COLLINS: The U.S. military is looking into an explosion in central Baghdad today. An Associated Press photographer saw at lest one person dead and one injured in a residential neighborhood that was struck by mortar fire earlier.

Meanwhile, investigators have found startling evidence connected with some suicide bombers in Iraq. Barbara Starr is live now at the Pentagon with more. Barbara, hello.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Heidi.

Well, a top U.S. Central Command official now confirms to CNN that they have seen several instances of recent evidence that suicide bombers in Iraq may have been forced to carry out these missions against their will. This is now suggesting that many of these attacks carried out by Iraqis, forced to do it, rather than some of those foreign fighters we have heard so much about.

Now, Central Command says there are several cases that they are looking into. One, where troops found a body with a foot tied to a rope inside a car after a suicide attack. In another case, they found evidence of individuals having their entire families held hostage by extremists while they were forced to go out and carry out a suicide attack.

In another instance, they're talking about suspected bombers actually ran away from their cars loaded with explosives and ran towards U.S. troops. Obviously, in an apparent attempt to save themselves during these attacks.

And then still other cases they have looked at. They have found instances where extremists have followed cars with suicide bombs in them, followed them with remote detonators, and then detonated the cars. So a trend they are looking into in several cases where they believe Iraqis are being compelled to carry out some of these very deadly attacks -- Heidi.

COLLINS: Wow. Barbara, is there anything that the military officials can do to get a handle on this?

STARR: Well, exactly. That is what they are trying to focus on now. Their best weapon, they say, is better intelligence, trying to see who is behind all of this. But they had, for example, one very interesting case. They told us about, the Central Command, where they went to a house and they found an entire family being held hostage, again by extremists, while someone was out carrying out one of these forced suicide attacks.

One of the other trends they're looking at, though, is what they call so-called weekend jihadists. These are indeed the young men who come into Iraq from neighboring countries, have little or no money. And then they are taken over, if you will, by these insurgent groups and forced to carry out these attacks. So they're looking at all of this, hoping to get better intelligence on this disturbing new trend -- Heidi.

COLLINS: Very disturbing indeed. All right. Barbara Starr live from the Pentagon this morning. Thanks, Barbara.

For now, back to Bill in Boston.

Hey, Bill. HEMMER: All right, Heidi.

Alexandra Kerry here in Boston, one of the daughters of John Kerry, filming a documentary about her father's presidential run. And so is Alex Tanner. The difference is that Alex Tanner and her father are fictional characters in a series for HBO. Alex is played by Cynthia Nixon. She's with me here now on the floor of the FleetCenter.

Good morning to you.

CYNTHIA NIXON, ACTRESS: Good morning.

HEMMER: Nice to see you again.

NIXON: I have to tell you, though...

HEMMER: Yes? Tell me.

NIXON: ... that the original series was on HBO. But the one that we're doing now is on the Sundance Channel.

HEMMER: It's a long way from "Sex and the City," isn't it?

NIXON: It is.

HEMMER: Are you active politically?

NIXON: No. My daughter goes to public school in New York. And I went to public school. And so I fight for education funding. And I go to planned parenthood things every now and again. But...

HEMMER: But do you have a party affiliation? Would you ever offer yourself to Republicans or Democrats or...

NIXON: I'm -- I'm a Democrat. I've always been a Democrat.

HEMMER: And would you ever offer to go out and speak on behalf of the party or push a candidate?

NIXON: I never have. But I suppose it's possible.

HEMMER: You're in the world of celebrity. And we have heard a lot from celebrities already. And it's only, what, late July.

Whoopi Goldberg had a few comments that went public. Elton John had some comments about activism in America. Linda Ronstadt out in Las Vegas.

NIXON: Meryl Streep.

(CROSSTALK)

HEMMER: Meryl Streep as well.

NIXON: Yes. HEMMER: Do you think there is a voice for celebrities? And I guess, more importantly, do you think Americans listen?

NIXON: I think, you know, definitely Americans listen to celebrities. And, you know, whether that's good or bad, I think it depends on your political persuasion and what that celebrity happens to be saying. But I also don't think you should -- you know, you should gag yourself just because you are a celebrity.

HEMMER: So when people talk, others listen is what you're suggesting?

NIXON: Yes. Yes. I listen.

HEMMER: Were you here last night for the speeches?

NIXON: I was not. I had a 3:30 a.m. wakeup call. And I went to bed at 7:30. And an attempt to get eight hours' sleep.

HEMMER: You beat me by 30 minutes. For the viewers at home who have never experienced a convention before -- and granted, you weren't here in prime-time last night...

NIXON: Right.

HEMMER: ... what is the sense of what you're seeing around you?

NIXON: It's wild. I mean, you know, we -- "Tanner '88," which was the original part of our series, was in Atlanta in '88. And we went to the convention then. And it seems very much the same.

You know, it's a wild, huge meeting of people who really care about politics. But it also is just a mediafest.

HEMMER: And it brings a lot of people together from all walks of life.

NIXON: Yes.

HEMMER: What's the plot for this next one? Can you share?

NIXON: The plot for the next one is I'm -- I'm a documentary filmmaker. I'm the daughter of the former candidate. And I'm making a documentary film about my dad and what it took for him, or anybody else to run for president. And how politics has changed since '88.

HEMMER: Good luck with your own campaign.

NIXON: Thank you.

HEMMER: Cynthia, great to see you.

NIXON: Thank you.

HEMMER: Cynthia Nixon.

NIXON: Take care.

HEMMER: In a moment here, most e-mail users think it's a scourge, but some people actually like it. Andy's 'Minding Your Business.' Back in a moment here with that story.

Also in a moment, Teresa Heinz Kerry never afraid to speak her mind. Will that take a toll in her husband's campaign? You'll hear that.

And what starts out as a typical show at Sea World gives way to some scary and rather tense moments, too. Watch the video. Back in a moment here, live from Boston in the FleetCenter.

(COMMERCIAL BREAK)

COLLINS: As if games, instant messaging, Internet access and day planners weren't enough on your cell phone, now there's something new you can really be distracted by. With that, and a check on the market, Andy Serwer is "Minding Your Business."

OK. So markets first.

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Good to see you. Yes, let's do that. By the way, Jack doesn't have any of these problems with the things on his cell phone because he doesn't have...

COLLINS: No, of course not.

CAFFERTY: I don't own any of those things, that's right.

SERWER: Yes. All right. Let's talk about the markets first.

Stocks trading up to begin with. We see this every day, though. The stocks are up in the morning. Let's see if we can hold this one.

Dow is up 44 points. What's moving, Verizon is up to $1.30 to $37, reporting its business is going well.

U.S. Air reports a profit. Wow! The stock is up 37 cents to $2 and change. But they say they're not going to make any money for the rest of the year.

Lockheed profits are up, too. But they're a defense contractor, so they should.

Also, one-fifth of all Americans report they buy things from spam that comes to their -- who are these people? Why do they do that? Let's talk about these devices, though.

COLLINS: Yes. A little jingle, huh?

SERWER: Yes. What's going on now is, you know the iPod and iTunes is a very successful device made by Apple. "Newsweek" cover story, by the way, this week. Motorola is now going to do a deal with Steve Jobs' little handy-dandy iPods there so you can get iTunes on your phone. I'm not sure what the heck you're going to do with these tunes on your phone. I guess you listen to them in your ear like this. You know, so you're listening to "Brandy, you're a fine girl, what a good wife you would be," when you're really supposed to be working.

COLLINS: If that's what you would be listening to, right?

SERWER: That's what I would be listening to, one of my favorite songs.

CAFFERTY: Why do we need all this garbage?

SERWER: Yes. You know, sometimes I wonder if they really think there's a market for this.

CAFFERTY: iTunes on your phone?

SERWER: Yes.

CAFFERTY: And what the hell is that about?

SERWER: But you don't have a phone to begin with, so you don't have a problem with this.

CAFFERTY: iTunes on your phone.

SERWER: You don't have a problem with this. See?

CAFFERTY: I mean, I -- when the phone -- I just want to pick it up, say, "Hello," whatever it is, and be done with it. I don't need iTunes on my phone.

(CROSSTALK)

SERWER: I was trying to figure out the other day -- it had a tip calculator for a restaurant.

COLLINS: Perfect.

SERWER: Yes. I mean...

COLLINS: You've used it a lot, right?

SERWER: Oh, yes. I mean, all the time.

So, anyway -- but iTunes really hot. And this is just a quickie here. They've sold four million of those iPods.

COLLINS: Yes.

SERWER: But here's the market they're trying to get into, 550 million phones. So you can see what Steve Jobs is trying to do.

COLLINS: Yes, you can. All right. Andy, thank you so much for that.

SERWER: You're welcome.

COLLINS: Jack's not excited about it.

CAFFERTY: I get very confused by that modern technology.

SERWER: Yes.

CAFFERTY: The "Question of the Day" is something I can understand. Teresa Heinz Kerry, is she an asset or a liability, politically speaking?

Annette in Irving, Texas, "Ms. Heinz proved one thing to me, that my mother was correct when she said, 'You can't buy class, you either have it or you don't.' Ms. Heinz Kerry may have all the money in the world, but she has no class as far as I'm concerned. I shudder to think that she may be the next first lady."

"How refreshing to see an honest woman being true to herself and her beliefs. The press is accustomed to categorizing and manipulating a person's public image. That does not mean a strong person cannot object to that manipulation. Well done, Mrs. Kerry."

And Martha in Richmond, Virginia, "Teresa Heinz Kerry is strong, opinionated and somewhat cranky at times. Hmm. Sounds like someone else I know. Perhaps we should have a question as to whether you, Jack Cafferty, are an asset or liability to CNN."

Let's don't have one of those. That's not a good idea.

(LAUGHTER)

SERWER: Voice vote!

"I think Mrs. Kerry's fascinating, intelligent and caring. Sometimes I feel I could say the same for you."

Well, thank you, Martha.

COLLINS: Oh.

SERWER: That works.

COLLINS: Yes. I'm glad you ended on a nice note.

CAFFERTY: Yes. I want to get some iTunes on my telephone.

(CROSSTALK)

SERWER: Yes, your gizmo.

COLLINS: In the meantime, a somewhat bruised but happy ending at a killer whale performance. Kai (ph), a killer whale at Sea World in San Antonio, Texas -- look at this now -- slammed his trainer underwater repeatedly during Friday's show.

The trainer was OK and did return to work today. He says he was scared, but stayed calm through the incident. The trainer says Kai (ph) is near his breeding age, and that might explain his unusual behavior.

SERWER: Oh, no. Goodness.

COLLINS: Maybe he's just a little bit confused about who to breed with.

CAFFERTY: Can't say much for his taste in mates.

COLLINS: But -- yes.

SERWER: Oh, wow.

COLLINS: Man.

SERWER: That puts that in a whole new perspective.

COLLINS: It does.

All right. We're going to throw things back to Bill, where it's much safer on the convention floor there, right, Bill?

HEMMER: We kind of have these drowning episodes on AMERICAN MORNING from our own staff.

COLLINS: Sometimes.

HEMMER: Quiet. Break here. When we come back, the sweet sounds of Gabriel Lefkowitz on stage last night. A very poignant tribute to those who lost their lives back on September 11. You'll meet him after this.

(COMMERCIAL BREAK)

HEMMER: The sweet and tender sounds last night on stage here at the FleetCenter of Gabriel Lefkowitz and his violin. Asked to play attribute to those who lost their lives back on 9/11. It was one of the highlights from last night. And the 16-year-old violinist now our guest here on AMERICAN MORNING.

Good morning to you.

GABRIEL LEFKOWITZ, MUSICIAN: Good morning. How are you?

HEMMER: Wonderful job last night.

LEFKOWITZ: Thanks.

HEMMER: Is it true that they picked you three days ago?

LEFKOWITZ: Well, four days ago, sir. It was three days' notice. It was Friday, pretty late in the afternoon on Friday. So, yeah, I didn't have that much time to prepare.

HEMMER: There were thousands in the FleetCenter last night. LEFKOWITZ: Yes, there were.

HEMMER: What did that mean to you, not only to play in front of these people, but I think, more importantly, to try to capture the moment of September 11?

LEFKOWITZ: It was just absolutely incredible. I mean, I'm there, and there's so many people here. And then the lights were -- the lights were down, the audience was quiet.

I had the spotlight. And, you know, everyone was just holding those lights to commemorate 9/11. It was just truly amazing.

HEMMER: Listen, job well done.

LEFKOWITZ: Thank you very much.

HEMMER: Really well done.

LEFKOWITZ: Thank you.

HEMMER: It's an absolute honor to meet you.

LEFKOWITZ: Thank you. Thank you.

HEMMER: And what do you have for us today?

LEFKOWITZ: Tchaikovsky (UNINTELLIGIBLE).

HEMMER: All right. Well, knock yourself out and take us to commercial break, OK? Nice to see you, Gabe.

LEFKOWITZ: I will. Nice to see you.

HEMMER: It's all yours.

(MUSIC)

(COMMERCIAL BREAK)

CAFFERTY: I'm trying to think...

SERWER: Just doing lyrics and...

COLLINS: Yes. And here we are back with everybody.

CAFFERTY: Yes.

SERWER: Oh, we're here.

COLLINS: We are here.

SERWER: Good.

COLLINS: Just want to say thanks for watching, everybody. From New York, Heidi Collins, Jack Cafferty and Andy Serwer. Goodbye to you all.

For now, we send it back to Bill, though -- Bill. Gabriel, fabulous violinist. That was really a treat.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com