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CNN Live At Daybreak

Recap Of The Democratic National Convention -- Day Two; More Violence In Iraq

Aired July 28, 2004 - 05:00   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.


CAROL COSTELLO, CNN ANCHOR: Just a short time ago, police recruits are attacked in a suicide bombing near Baghdad. Dozens are dead.
It is Wednesday, July 28.

This is DAYBREAK, and good morning to you.

From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Now in the news: Less than three-and-a-half hours ago, a suicide car bomber in Ba'qubah, north of Baghdad, kills at least 51 Iraqis and wounds 40 more. Many of the victims were hoping to be police recruits. In 10 minutes, we'll take you live to Baghdad.

Search professionals have been at it through the night, looking in a Salt Lake City landfill for Lori Hacking, a woman missing now for eight days.

Millions of people across South Asia have been forced out of their homes by flooding, the worst in Bangladesh in six years. At least 1,100 people have been killed in India, Nepal, Pakistan, and Bangladesh.

Keeping you informed, CNN, the most trusted name in news.

Good morning -- Rob Marciano.

ROB MARCIANO, CNN CORRESPONDENT: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: It has happened again in Iraq. The results are deadly. Right now emergency health workers are trying to save the lives of 40 people wounded in a suicide bombing outside of a police station in Ba'qubah. The bombing kills 51 Iraqis and it shook nearby buildings.

Michael Holmes is in Baghdad.

He will join us with details in just about seven minutes from now.

This is the eve of John Kerry's move into the Democratic convention spotlight. He's on the road to Boston today. Kerry's campaign traveled this week from Boston to Florida and Virginia. On Tuesday, he was in Pennsylvania. Well, Kerry wakes up in Philadelphia this morning and will board a flight for Boston's Logan Airport. He's got events in Charleston, Massachusetts, and tonight at the University of Massachusetts.

John Edwards will join Kerry at U. Mass. for a Pops on the Bay concert and rally. That'll be at 11:30 Eastern tonight.

Actually, Edwards arrived in Boston on Tuesday. Less than five hours ago, he got a look at the convention floor and the podium, where he'll be giving his acceptance speech. That will happen at 10:00 Eastern tonight.

A rising star, a possible first lady, and a member of the old guard all were at the convention podium last night.

Our Aaron Brown has highlights for you.

(BEGIN VIDEOTAPE)

AARON BROWN, HOST, "NEWSNIGHT" (voice-over): For the Democrats, the night began with a true lion in winter, Ted Kennedy in his home town at the podium and on the attack.

SEN. TED KENNEDY (D), MASSACHUSETTS: More than 900 of our servicemen and women have already paid the ultimate price. Nearly 6,000 have been wounded in this misguided war. The administration has alienated longtime allies.

Instead of making America more secure, they have made us less so. They have made it harder to win the real war on terrorism and the war against al Qaeda. And none of this had to happen.

BROWN: In a supporting role, Howard Dean. In the what-ifs of life, this might have been his week.

GOV. HOWARD DEAN (D), VERMONT: I was hoping for a reception like this. I was just kind of hoping it was going to be on Thursday night instead of Tuesday night.

Never again will we ever be ashamed to call ourselves Democrats. Never, never, never. We're not going to just change presidents in this election. We're going to change this country. We're going to reclaim the American dream.

BROWN: The convention's keynote speaker was a rising star, a young Illinois state senator named Barack Obama. He has no opponent yet in his run for the U.S. Senate from his home state.

BARACK OBAMA (D-IL), STATE SENATOR: When we send our young men and women into harm's way, we have a solemn obligation not to fudge the numbers or shade the truth about why they're going, to care for their families while they're gone, to tend to the soldiers upon their return, and to never ever go to war without enough troops win the war, secure the peace and earn the respect of the world.

There is not a liberal America and a conservative America. There is the United States of America.

The pundits like to slice and dice our country into red states and blue states, red states for Republicans, blue states for Democrats, but I've got news for them, too. We worship an awesome God in the blue states, and we don't like federal agents poking in our libraries in the red states. We coach Little League in the blue states, and, yes, we've got some gay friends in the red states.

There are patriots who opposed the war in Iraq, and there are patriots who supported the war in Iraq. We are one people, all of us pledging allegiance to the stars and stripes, all of us defending a United States of America.

BROWN: And then there was the son of a Republican icon, Ron Reagan, in one of the primest of the prime-time slots, a speech about one thing, one issue, the use of embryonic stem cells for medical research, and what to tell a single patient who might benefit.

RONALD REAGAN, JR., SON OF THE LATE PRESIDENT RONALD REAGAN: What might we tell her children or the millions of others who suffer that when given an opportunity to help, we turned away, that facing political opposition, we lost our nerve, that even though we knew better, we did nothing.

BROWN: And finally, in the political sense at least, the country met a would-be first lady who surely would be unlike any in the country's history.

TERESA HEINZ KENNEDY, WIFE OF SENATOR JOHN KERRY: And John is a fighter. He earned his medals the old-fashioned way. By putting his life on the line for his country, and no one will defend this nation more vigorously than he will, and he will always, always be first in the line of fire.

(END VIDEOTAPE)

COSTELLO: There are certain special moments in these political conventions. A 12-year-old Oakland, California, girl provided one last night. Ilana Wexler founded Kids for Kerry and commented on a profane remark by Vice President Cheney more than a week ago.

Listen.

(BEGIN VIDEO CLIP)

ILANA WEXLER, FOUNDER, KIDS FOR KERRY: When our vice president had a disagreement with a Democratic senator, he used a really bad word. If I said that word, I would be put in a time out. I think he should be put in a time out.

(END VIDEO CLIP)

COSTELLO: Of course, she was referring to when the vice president used the "F" word during a verbal attack on Democratic Senator Patrick Leahy on the Senate floor. Among tonight's speakers: New Mexico Governor Bill Richardson; former presidential candidates Al Sharpton and Dennis Kucinich; and John Edwards, who will give his speech accepting the nomination for vice president.

CNN's prime-time lineup tonight includes "ANDERSON COOPER 360" at 7:00 p.m., followed by an "AMERICA VOTES" special at 8:00 with Wolf Blitzer. At 9:00, our Larry King comes to you live from the floor of the FleetCenter. All times are Eastern.

The 9/11 Commission is determined to follow-up on its report. Two panel members say they'll introduce legislation to keep the commission intact until most of its recommendations have been enacted into law.

In the meantime, presidential hopeful John Kerry is calling for the panel to stay on the job for 18 months longer to ensure its recommendations are implemented immediately. The White House says President Bush is reviewing the commission's report to see what actions can be taken immediately by executive order.

(BEGIN VIDEO CLIP)

DR. PAUL LIGHT, BROOKINGS INSTITUTION: I think there's just tremendous political pressure for both parties to get ahead on the issue. National security is a big campaign issue for John Kerry. And it's a big strength for George Bush, and the party that gets there first is going to be the party that gets some votes.

(END VIDEO CLIP)

COSTELLO: The Senate holds its first hearing on the commission's reform recommendations this Friday.

It is another horribly bloody day in Iraq. A suicide car bomber has struck at a marketplace in the City of Ba'qubah. Nearly 100 people are dead and wounded.

Let's take you live to Baghdad now and Michael Holmes.

He has the latest for us -- what can you tell us?

MICHAEL HOLMES, CNN CORRESPONDENT: Hi to you, Carol.

Well, in the few hours since this happened, the death toll has been steadily climbing. It started at 15. We're told by the Health Ministry now it's at 51 dead and 40 wounded, more than 40 wounded. In fact, this did happen in Ba'qubah, which is about 55 kilometers northeast of the capital, Baghdad.

What we're told happened is that as young men gathered to sign up for the Iraqi police force, a van, a minibus drove into the crowd and detonated.

This is a very busy part of the city. It's right in the middle of town. There are numerous shops, a marketplace, teahouses, all within close proximity. This blast a large one and you can see the damage that it did. The driver apparently just going right into the middle of the crowd and detonating.

It's a mixed Sunni and Shia town. It has seen frequent outbreaks of violence over the past year -- regular car bombings, shootings, suicide attacks, many of them targeting the Iraqi National Guard and, indeed, the Iraqi police, as we saw on this day -- Carol.

COSTELLO: Michael, do we know of any Americans hurt?

HOLMES: No Americans hurt. There's no Americans immediately in the vicinity of this, Carol. The military did show up afterwards. The Iraqis are running the scene there and doing all the investigations. Elements of the 4th I.D. did show up afterwards to help secure the area. But no Americans, no, Carol.

COSTELLO: We also wanted to ask you about a team of IAEA inspectors heading back to Baghdad.

Why are they going back?

HOLMES: They're basically going back to check out on some of the nuclear issues that remained. This isn't related to the main nuclear inspections that are so famous now, the inspectors toiling away in Iraq while Saddam Hussein was still in power.

This is basically a cleanup operation. It's not a big one. There was some nuclear material removed from Iraq by Americans and basically this team is going in to check that it all, indeed, went -- Carol.

COSTELLO: Michael Holmes live in Baghdad this morning.

As always, you can stay on top of developments in Iraq and the rest of the world by logging onto our Web site, cnn.com/world.

A gentler, kinder Democratic convention moves into its third day. Is John Edwards ready for his close-up? He's got a tough act to follow after last night. We'll take you live to Boston at 17 minutes past the hour.

At 25 minutes after, a killer whale turns on its trainer. We'll show you what happened.

At 46 after, you'll find out why Michael Jackson's trial is being pushed back.

And at 54 minutes after, the son of a Republican president takes his message to the Democratic national convention. We'll look at the issue of stem cell research.

All that and much more just ahead, when CNN DAYBREAK continues.

(COMMERCIAL BREAK)

COSTELLO: The Dow was up more than 123 points at the closing bell. This morning's open sees the Dow's biggest percentage gain since early June. For constant market updates throughout your day, just keep an eye on our futures bug in the lower right hand corner of your screen.

The strong consumer confidence report drove the Dow into a five week high against the euro. Investors shared some of that confidence in the world markets.

So, let's head live to London and check in with Todd Benjamin -- good morning, Todd.

TODD BENJAMIN, CNN CORRESPONDENT: Good morning, Carol.

Absolutely right. Feel good factor back in the markets, at least today. You've got the FTSE here in London up nearly one percent. And in Germany and France, the major indices there are up one percent.

Not surprising considering the great performance that we had on Wall Street yesterday, where the Dow was up better than one percent, 1.2 percent. And the Nasdaq was up over 1 1/2 percent. And boy, did we need some good news, because the Nasdaq was at a near 10 month low and the S&P 500 had declined for six weeks and the Dow had been down for five weeks.

And the bounce back we got was because of those consumer confidence numbers. As you said, they were better than expected. And I think more importantly, within those numbers, people were relatively upbeat about the prospect for employment.

And what people felt very good about on Wall Street about the numbers is that it shows that the consumer is not dead in the water, that Alan Greenspan may be right.

In recent testimony he said any slowdown we've seen in consumer spending is probably temporary.

In terms of what we can expect today, more key economic data -- durable goods down in the last two months. They're expected to rebound today. And of course, we've got more earnings reports. And right now, at this point, though, the futures market is pointing to a flat open. We'll see if we can get any follow through -- Carol, have a great morning.

COSTELLO: All right. You, too. Thank you, Todd.

Your news, money, weather and sports.

It is 5:17 Eastern. Here's what's all new this morning.

At least 50 Iraqis are dead following a suicide bomb attack on a crowded marketplace. Another 40 people were injured in the blast in Ba'qubah. Ba'qubah is 30 miles north of Baghdad.

Foam insulation will no longer be used on some parts of the fuel tanks that go on future space shuttle missions. A fallen piece of that foam is blamed for causing the Shuttle Columbia disaster. In money news, First Energy has agreed to pay nearly $90 million to settle two lawsuits brought by shareholders. The suits stem from last summer's huge blackout in the Northeast and Midwest and from disputed accounting practices.

In culture, the nominations are in, and Jay-Z may be the new king of pop. He got six MTV Video Music Award nominations. Jay-Z's sometime girlfriend Beyonce pulled down five nominations of her own. The awards will be broadcast live August 29.

In sports, first-round pick Sean Taylor signed a deal with the Washington Redskins. After incentives, the deal could be worth as much as $40 million over the next seven years. Taylor is the highest draft pick to be signed so far -- Rob.

MARCIANO: Playing for the love of the game, Carol.

COSTELLO: Oh, yes. $40 million!

MARCIANO: Good for him.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

It is day three for Democrats rallying their forces in Boston. They're pumped up for their man John Kerry.

Let's go live to the convention site.

CNN's Kareen Wynter is live at the FleetCenter.

But first it's John Edwards' turn.

KAREEN WYNTER, CNN CORRESPONDENT: Good morning, Carol.

Perhaps, you know, no surprise, really, here. But the Democratic Party continued to build momentum into the second night of their convention, as some of Senator John Kerry's former rivals took the stage.

(BEGIN VIDEOTAPE)

WYNTER (voice-over): Massachusetts Ted Kennedy used tough talk to open the night, warning that Americans can't afford another four years of George W. Bush.

SEN. TED KENNEDY (D), MASSACHUSETTS: So much of the progress we once achieved has been turned back. So much of the goodwill America once enjoyed in the world has been lost. But we are a hopeful nation.

WYNTER: The theme for a more hopeful America continued as Kerry's former opponents, Dick Gephardt and Howard Dean, took the stage.

DR. HOWARD DEAN (D), FMR. PRESIDENTIAL CANDIDATE: We are not going to let those who disagree with us shout us down under a banner of false patriotism.

WYNTER: One of the party's rising stars, Illinois Senate candidate Barack Obama, was the evening's keynote speaker. It was the first time in 60 years an unelected official was given this coveted slot.

BARACK OBAMA (D), ILLINOIS SENATE CANDIDATE: John Kerry believes in the constitutional freedoms that have made our country the envy of the world. And he will never sacrifice our basic liberties nor use faith as a wedge to divide us.

WYNTER: John Kerry's wife, Teresa Heinz Kerry, closed the evening.

TERESA HEINZ KERRY, WIFE OF SEN. JOHN KERRY: No one will defend this nation more vigorously than he will, and he will always, always be first in the line of fire.

WYNTER: Senator John Edwards made a late night stop at the FleetCenter in preparation for tonight's speech.

(END VIDEOTAPE)

WYNTER: And Senator Kerry is expected to arrive here in Boston some time this afternoon, just one day, Carol, before he is expected to make his acceptance speech.

COSTELLO: Kareen Wynter live in Boston.

Thank you.

CNN's prime-time lineup tonight includes "ANDERSON COOPER 360" at 7:00 p.m., followed by an "AMERICA VOTES" special at 8:00 with Wolf Blitzer. At 9:00, our Larry King comes to you live from the floor of the FleetCenter. All times, of course, Eastern Standard.

Michael Moore is on the move. His controversial film is heading to Crawford, Texas. We'll tell you about the not so warm welcome at the Bush ranch.

And take a look at this. Dramatic pictures as a killer whale gets rough.

This is DAYBREAK.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

LARRY KING, HOST: Have you invited the president?

MICHAEL MOORE, FILMMAKER: Yes, he's been invited.

KING: Has the White House requested to see this film?

MOORE: No, their official response has been we don't need to see something to know it's wrong, which I thought actually was very honest and consistent with their policy. They didn't need to see the weapons of mass destruction and they led us into war as a result of that.

(END VIDEO CLIP)

COSTELLO: And the war of words goes on. And what he was talking about there, he's bringing his movie, his documentary, to Crawford, Texas. But no movie theaters will agree to show it.

MARCIANO: I wonder why?

COSTELLO: I don't know.

MARCIANO: But he's going to -- where is he going to have it, in a parking lot or something like that?

COSTELLO: In a football stadium parking lot, and supposedly 1,000 people are going to attend the showing. And of course, there will be demonstrators, as well.

MARCIANO: Of course.

COSTELLO: But as you heard, President Bush will not be attending.

MARCIANO: And he's a Spartan fan, apparently.

COSTELLO: Sure.

MARCIANO: And allegedly not very nice to some other CNN people earlier in the day.

COSTELLO: Oh, yes. Oh, yes, but we won't talk about that now.

MARCIANO: No. Allegedly.

COSTELLO: Because it could get us in trouble.

MARCIANO: OK.

COSTELLO: Time for our DAYBREAK "Eye Opener."

Shame on Shamu. Actually, this is Kerry, the killer whale -- there is Ky -- who put on an unexpectedly scary show at SeaWorld in San Antonio. Watch this for a second.

MARCIANO: Oh!

COSTELLO: Isn't that something? Ky repeatedly slamming into his trainer of 10 years.

MARCIANO: Oh, my God.

COSTELLO: The trainer wasn't hurt and said he thinks it's just a matter of Ky feeling his oats as he nears breeding age.

MARCIANO: Ky is a man? A man?

COSTELLO: Yes.

MARCIANO: The whale?

COSTELLO: The whale. Yes.

MARCIANO: So feeling aggression toward another male because he's coming into his season.

COSTELLO: Yes. But no one was hurt, but what a scary thing.

MARCIANO: Yes, that's amazing.

COSTELLO: Rocker Courtney Love, speaking of scary, has been sentenced to 18 months in drug rehab following one of her latest brushes with the law. The singer will be allowed to travel, but is barred from being in any place that serves alcohol.

The sentence stems from an incident where Love attacked a woman at a former boyfriend's house. Love still faces felony charges for allegedly possessing a pain killer, a prescription pain killer.

MARCIANO: She's always entertaining.

COSTELLO: That's a sad case. No, it's just so sad, though, isn't it?

It's time for the real world, Amish style. What will they think of next? UPN debuts a new show tonight called "Amish In The City."

MARCIANO: How are they going to light this thing without electricity?

COSTELLO: I don't know. That's a good question. The latest reality disaster puts a group of Amish teenagers in a Hollywood apartment with some very colorful characters. No, they are not paired up with Courtney Love.

MARCIANO: And then the Amish folks aren't going to be able to watch it because they don't have television, right?

COSTELLO: You're right. You're right.

MARCIANO: It's like how can people...

COSTELLO: I can't believe that Amish people agreed to do that, to go live in a Hollywood apartment and frolic.

MARCIANO: Frolic. Much more on this still to come, I'm assuming.

COSTELLO: I'm sure.

Here's what's all new in the next half hour of DAYBREAK.

(BEGIN VIDEO CLIP)

HEINZ KERRY: And John is a fighter. He earned his medals the old-fashioned way.

(END VIDEO CLIP)

COSTELLO: She's known for being no holds barred. Up next, we'll hear a few choice words from Teresa Heinz Kerry.

And later this hour, details on the stem cell debate -- how the controversial topic takes center stage at the DNC.

But first, a horrific scene in Ba'qubah as Iraqi insurgents take aim at their own.

This is DAYBREAK for Wednesday.

(COMMERCIAL BREAK)

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Aired July 28, 2004 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Just a short time ago, police recruits are attacked in a suicide bombing near Baghdad. Dozens are dead.
It is Wednesday, July 28.

This is DAYBREAK, and good morning to you.

From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Now in the news: Less than three-and-a-half hours ago, a suicide car bomber in Ba'qubah, north of Baghdad, kills at least 51 Iraqis and wounds 40 more. Many of the victims were hoping to be police recruits. In 10 minutes, we'll take you live to Baghdad.

Search professionals have been at it through the night, looking in a Salt Lake City landfill for Lori Hacking, a woman missing now for eight days.

Millions of people across South Asia have been forced out of their homes by flooding, the worst in Bangladesh in six years. At least 1,100 people have been killed in India, Nepal, Pakistan, and Bangladesh.

Keeping you informed, CNN, the most trusted name in news.

Good morning -- Rob Marciano.

ROB MARCIANO, CNN CORRESPONDENT: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: It has happened again in Iraq. The results are deadly. Right now emergency health workers are trying to save the lives of 40 people wounded in a suicide bombing outside of a police station in Ba'qubah. The bombing kills 51 Iraqis and it shook nearby buildings.

Michael Holmes is in Baghdad.

He will join us with details in just about seven minutes from now.

This is the eve of John Kerry's move into the Democratic convention spotlight. He's on the road to Boston today. Kerry's campaign traveled this week from Boston to Florida and Virginia. On Tuesday, he was in Pennsylvania. Well, Kerry wakes up in Philadelphia this morning and will board a flight for Boston's Logan Airport. He's got events in Charleston, Massachusetts, and tonight at the University of Massachusetts.

John Edwards will join Kerry at U. Mass. for a Pops on the Bay concert and rally. That'll be at 11:30 Eastern tonight.

Actually, Edwards arrived in Boston on Tuesday. Less than five hours ago, he got a look at the convention floor and the podium, where he'll be giving his acceptance speech. That will happen at 10:00 Eastern tonight.

A rising star, a possible first lady, and a member of the old guard all were at the convention podium last night.

Our Aaron Brown has highlights for you.

(BEGIN VIDEOTAPE)

AARON BROWN, HOST, "NEWSNIGHT" (voice-over): For the Democrats, the night began with a true lion in winter, Ted Kennedy in his home town at the podium and on the attack.

SEN. TED KENNEDY (D), MASSACHUSETTS: More than 900 of our servicemen and women have already paid the ultimate price. Nearly 6,000 have been wounded in this misguided war. The administration has alienated longtime allies.

Instead of making America more secure, they have made us less so. They have made it harder to win the real war on terrorism and the war against al Qaeda. And none of this had to happen.

BROWN: In a supporting role, Howard Dean. In the what-ifs of life, this might have been his week.

GOV. HOWARD DEAN (D), VERMONT: I was hoping for a reception like this. I was just kind of hoping it was going to be on Thursday night instead of Tuesday night.

Never again will we ever be ashamed to call ourselves Democrats. Never, never, never. We're not going to just change presidents in this election. We're going to change this country. We're going to reclaim the American dream.

BROWN: The convention's keynote speaker was a rising star, a young Illinois state senator named Barack Obama. He has no opponent yet in his run for the U.S. Senate from his home state.

BARACK OBAMA (D-IL), STATE SENATOR: When we send our young men and women into harm's way, we have a solemn obligation not to fudge the numbers or shade the truth about why they're going, to care for their families while they're gone, to tend to the soldiers upon their return, and to never ever go to war without enough troops win the war, secure the peace and earn the respect of the world.

There is not a liberal America and a conservative America. There is the United States of America.

The pundits like to slice and dice our country into red states and blue states, red states for Republicans, blue states for Democrats, but I've got news for them, too. We worship an awesome God in the blue states, and we don't like federal agents poking in our libraries in the red states. We coach Little League in the blue states, and, yes, we've got some gay friends in the red states.

There are patriots who opposed the war in Iraq, and there are patriots who supported the war in Iraq. We are one people, all of us pledging allegiance to the stars and stripes, all of us defending a United States of America.

BROWN: And then there was the son of a Republican icon, Ron Reagan, in one of the primest of the prime-time slots, a speech about one thing, one issue, the use of embryonic stem cells for medical research, and what to tell a single patient who might benefit.

RONALD REAGAN, JR., SON OF THE LATE PRESIDENT RONALD REAGAN: What might we tell her children or the millions of others who suffer that when given an opportunity to help, we turned away, that facing political opposition, we lost our nerve, that even though we knew better, we did nothing.

BROWN: And finally, in the political sense at least, the country met a would-be first lady who surely would be unlike any in the country's history.

TERESA HEINZ KENNEDY, WIFE OF SENATOR JOHN KERRY: And John is a fighter. He earned his medals the old-fashioned way. By putting his life on the line for his country, and no one will defend this nation more vigorously than he will, and he will always, always be first in the line of fire.

(END VIDEOTAPE)

COSTELLO: There are certain special moments in these political conventions. A 12-year-old Oakland, California, girl provided one last night. Ilana Wexler founded Kids for Kerry and commented on a profane remark by Vice President Cheney more than a week ago.

Listen.

(BEGIN VIDEO CLIP)

ILANA WEXLER, FOUNDER, KIDS FOR KERRY: When our vice president had a disagreement with a Democratic senator, he used a really bad word. If I said that word, I would be put in a time out. I think he should be put in a time out.

(END VIDEO CLIP)

COSTELLO: Of course, she was referring to when the vice president used the "F" word during a verbal attack on Democratic Senator Patrick Leahy on the Senate floor. Among tonight's speakers: New Mexico Governor Bill Richardson; former presidential candidates Al Sharpton and Dennis Kucinich; and John Edwards, who will give his speech accepting the nomination for vice president.

CNN's prime-time lineup tonight includes "ANDERSON COOPER 360" at 7:00 p.m., followed by an "AMERICA VOTES" special at 8:00 with Wolf Blitzer. At 9:00, our Larry King comes to you live from the floor of the FleetCenter. All times are Eastern.

The 9/11 Commission is determined to follow-up on its report. Two panel members say they'll introduce legislation to keep the commission intact until most of its recommendations have been enacted into law.

In the meantime, presidential hopeful John Kerry is calling for the panel to stay on the job for 18 months longer to ensure its recommendations are implemented immediately. The White House says President Bush is reviewing the commission's report to see what actions can be taken immediately by executive order.

(BEGIN VIDEO CLIP)

DR. PAUL LIGHT, BROOKINGS INSTITUTION: I think there's just tremendous political pressure for both parties to get ahead on the issue. National security is a big campaign issue for John Kerry. And it's a big strength for George Bush, and the party that gets there first is going to be the party that gets some votes.

(END VIDEO CLIP)

COSTELLO: The Senate holds its first hearing on the commission's reform recommendations this Friday.

It is another horribly bloody day in Iraq. A suicide car bomber has struck at a marketplace in the City of Ba'qubah. Nearly 100 people are dead and wounded.

Let's take you live to Baghdad now and Michael Holmes.

He has the latest for us -- what can you tell us?

MICHAEL HOLMES, CNN CORRESPONDENT: Hi to you, Carol.

Well, in the few hours since this happened, the death toll has been steadily climbing. It started at 15. We're told by the Health Ministry now it's at 51 dead and 40 wounded, more than 40 wounded. In fact, this did happen in Ba'qubah, which is about 55 kilometers northeast of the capital, Baghdad.

What we're told happened is that as young men gathered to sign up for the Iraqi police force, a van, a minibus drove into the crowd and detonated.

This is a very busy part of the city. It's right in the middle of town. There are numerous shops, a marketplace, teahouses, all within close proximity. This blast a large one and you can see the damage that it did. The driver apparently just going right into the middle of the crowd and detonating.

It's a mixed Sunni and Shia town. It has seen frequent outbreaks of violence over the past year -- regular car bombings, shootings, suicide attacks, many of them targeting the Iraqi National Guard and, indeed, the Iraqi police, as we saw on this day -- Carol.

COSTELLO: Michael, do we know of any Americans hurt?

HOLMES: No Americans hurt. There's no Americans immediately in the vicinity of this, Carol. The military did show up afterwards. The Iraqis are running the scene there and doing all the investigations. Elements of the 4th I.D. did show up afterwards to help secure the area. But no Americans, no, Carol.

COSTELLO: We also wanted to ask you about a team of IAEA inspectors heading back to Baghdad.

Why are they going back?

HOLMES: They're basically going back to check out on some of the nuclear issues that remained. This isn't related to the main nuclear inspections that are so famous now, the inspectors toiling away in Iraq while Saddam Hussein was still in power.

This is basically a cleanup operation. It's not a big one. There was some nuclear material removed from Iraq by Americans and basically this team is going in to check that it all, indeed, went -- Carol.

COSTELLO: Michael Holmes live in Baghdad this morning.

As always, you can stay on top of developments in Iraq and the rest of the world by logging onto our Web site, cnn.com/world.

A gentler, kinder Democratic convention moves into its third day. Is John Edwards ready for his close-up? He's got a tough act to follow after last night. We'll take you live to Boston at 17 minutes past the hour.

At 25 minutes after, a killer whale turns on its trainer. We'll show you what happened.

At 46 after, you'll find out why Michael Jackson's trial is being pushed back.

And at 54 minutes after, the son of a Republican president takes his message to the Democratic national convention. We'll look at the issue of stem cell research.

All that and much more just ahead, when CNN DAYBREAK continues.

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COSTELLO: The Dow was up more than 123 points at the closing bell. This morning's open sees the Dow's biggest percentage gain since early June. For constant market updates throughout your day, just keep an eye on our futures bug in the lower right hand corner of your screen.

The strong consumer confidence report drove the Dow into a five week high against the euro. Investors shared some of that confidence in the world markets.

So, let's head live to London and check in with Todd Benjamin -- good morning, Todd.

TODD BENJAMIN, CNN CORRESPONDENT: Good morning, Carol.

Absolutely right. Feel good factor back in the markets, at least today. You've got the FTSE here in London up nearly one percent. And in Germany and France, the major indices there are up one percent.

Not surprising considering the great performance that we had on Wall Street yesterday, where the Dow was up better than one percent, 1.2 percent. And the Nasdaq was up over 1 1/2 percent. And boy, did we need some good news, because the Nasdaq was at a near 10 month low and the S&P 500 had declined for six weeks and the Dow had been down for five weeks.

And the bounce back we got was because of those consumer confidence numbers. As you said, they were better than expected. And I think more importantly, within those numbers, people were relatively upbeat about the prospect for employment.

And what people felt very good about on Wall Street about the numbers is that it shows that the consumer is not dead in the water, that Alan Greenspan may be right.

In recent testimony he said any slowdown we've seen in consumer spending is probably temporary.

In terms of what we can expect today, more key economic data -- durable goods down in the last two months. They're expected to rebound today. And of course, we've got more earnings reports. And right now, at this point, though, the futures market is pointing to a flat open. We'll see if we can get any follow through -- Carol, have a great morning.

COSTELLO: All right. You, too. Thank you, Todd.

Your news, money, weather and sports.

It is 5:17 Eastern. Here's what's all new this morning.

At least 50 Iraqis are dead following a suicide bomb attack on a crowded marketplace. Another 40 people were injured in the blast in Ba'qubah. Ba'qubah is 30 miles north of Baghdad.

Foam insulation will no longer be used on some parts of the fuel tanks that go on future space shuttle missions. A fallen piece of that foam is blamed for causing the Shuttle Columbia disaster. In money news, First Energy has agreed to pay nearly $90 million to settle two lawsuits brought by shareholders. The suits stem from last summer's huge blackout in the Northeast and Midwest and from disputed accounting practices.

In culture, the nominations are in, and Jay-Z may be the new king of pop. He got six MTV Video Music Award nominations. Jay-Z's sometime girlfriend Beyonce pulled down five nominations of her own. The awards will be broadcast live August 29.

In sports, first-round pick Sean Taylor signed a deal with the Washington Redskins. After incentives, the deal could be worth as much as $40 million over the next seven years. Taylor is the highest draft pick to be signed so far -- Rob.

MARCIANO: Playing for the love of the game, Carol.

COSTELLO: Oh, yes. $40 million!

MARCIANO: Good for him.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you.

It is day three for Democrats rallying their forces in Boston. They're pumped up for their man John Kerry.

Let's go live to the convention site.

CNN's Kareen Wynter is live at the FleetCenter.

But first it's John Edwards' turn.

KAREEN WYNTER, CNN CORRESPONDENT: Good morning, Carol.

Perhaps, you know, no surprise, really, here. But the Democratic Party continued to build momentum into the second night of their convention, as some of Senator John Kerry's former rivals took the stage.

(BEGIN VIDEOTAPE)

WYNTER (voice-over): Massachusetts Ted Kennedy used tough talk to open the night, warning that Americans can't afford another four years of George W. Bush.

SEN. TED KENNEDY (D), MASSACHUSETTS: So much of the progress we once achieved has been turned back. So much of the goodwill America once enjoyed in the world has been lost. But we are a hopeful nation.

WYNTER: The theme for a more hopeful America continued as Kerry's former opponents, Dick Gephardt and Howard Dean, took the stage.

DR. HOWARD DEAN (D), FMR. PRESIDENTIAL CANDIDATE: We are not going to let those who disagree with us shout us down under a banner of false patriotism.

WYNTER: One of the party's rising stars, Illinois Senate candidate Barack Obama, was the evening's keynote speaker. It was the first time in 60 years an unelected official was given this coveted slot.

BARACK OBAMA (D), ILLINOIS SENATE CANDIDATE: John Kerry believes in the constitutional freedoms that have made our country the envy of the world. And he will never sacrifice our basic liberties nor use faith as a wedge to divide us.

WYNTER: John Kerry's wife, Teresa Heinz Kerry, closed the evening.

TERESA HEINZ KERRY, WIFE OF SEN. JOHN KERRY: No one will defend this nation more vigorously than he will, and he will always, always be first in the line of fire.

WYNTER: Senator John Edwards made a late night stop at the FleetCenter in preparation for tonight's speech.

(END VIDEOTAPE)

WYNTER: And Senator Kerry is expected to arrive here in Boston some time this afternoon, just one day, Carol, before he is expected to make his acceptance speech.

COSTELLO: Kareen Wynter live in Boston.

Thank you.

CNN's prime-time lineup tonight includes "ANDERSON COOPER 360" at 7:00 p.m., followed by an "AMERICA VOTES" special at 8:00 with Wolf Blitzer. At 9:00, our Larry King comes to you live from the floor of the FleetCenter. All times, of course, Eastern Standard.

Michael Moore is on the move. His controversial film is heading to Crawford, Texas. We'll tell you about the not so warm welcome at the Bush ranch.

And take a look at this. Dramatic pictures as a killer whale gets rough.

This is DAYBREAK.

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(BEGIN VIDEO CLIP)

LARRY KING, HOST: Have you invited the president?

MICHAEL MOORE, FILMMAKER: Yes, he's been invited.

KING: Has the White House requested to see this film?

MOORE: No, their official response has been we don't need to see something to know it's wrong, which I thought actually was very honest and consistent with their policy. They didn't need to see the weapons of mass destruction and they led us into war as a result of that.

(END VIDEO CLIP)

COSTELLO: And the war of words goes on. And what he was talking about there, he's bringing his movie, his documentary, to Crawford, Texas. But no movie theaters will agree to show it.

MARCIANO: I wonder why?

COSTELLO: I don't know.

MARCIANO: But he's going to -- where is he going to have it, in a parking lot or something like that?

COSTELLO: In a football stadium parking lot, and supposedly 1,000 people are going to attend the showing. And of course, there will be demonstrators, as well.

MARCIANO: Of course.

COSTELLO: But as you heard, President Bush will not be attending.

MARCIANO: And he's a Spartan fan, apparently.

COSTELLO: Sure.

MARCIANO: And allegedly not very nice to some other CNN people earlier in the day.

COSTELLO: Oh, yes. Oh, yes, but we won't talk about that now.

MARCIANO: No. Allegedly.

COSTELLO: Because it could get us in trouble.

MARCIANO: OK.

COSTELLO: Time for our DAYBREAK "Eye Opener."

Shame on Shamu. Actually, this is Kerry, the killer whale -- there is Ky -- who put on an unexpectedly scary show at SeaWorld in San Antonio. Watch this for a second.

MARCIANO: Oh!

COSTELLO: Isn't that something? Ky repeatedly slamming into his trainer of 10 years.

MARCIANO: Oh, my God.

COSTELLO: The trainer wasn't hurt and said he thinks it's just a matter of Ky feeling his oats as he nears breeding age.

MARCIANO: Ky is a man? A man?

COSTELLO: Yes.

MARCIANO: The whale?

COSTELLO: The whale. Yes.

MARCIANO: So feeling aggression toward another male because he's coming into his season.

COSTELLO: Yes. But no one was hurt, but what a scary thing.

MARCIANO: Yes, that's amazing.

COSTELLO: Rocker Courtney Love, speaking of scary, has been sentenced to 18 months in drug rehab following one of her latest brushes with the law. The singer will be allowed to travel, but is barred from being in any place that serves alcohol.

The sentence stems from an incident where Love attacked a woman at a former boyfriend's house. Love still faces felony charges for allegedly possessing a pain killer, a prescription pain killer.

MARCIANO: She's always entertaining.

COSTELLO: That's a sad case. No, it's just so sad, though, isn't it?

It's time for the real world, Amish style. What will they think of next? UPN debuts a new show tonight called "Amish In The City."

MARCIANO: How are they going to light this thing without electricity?

COSTELLO: I don't know. That's a good question. The latest reality disaster puts a group of Amish teenagers in a Hollywood apartment with some very colorful characters. No, they are not paired up with Courtney Love.

MARCIANO: And then the Amish folks aren't going to be able to watch it because they don't have television, right?

COSTELLO: You're right. You're right.

MARCIANO: It's like how can people...

COSTELLO: I can't believe that Amish people agreed to do that, to go live in a Hollywood apartment and frolic.

MARCIANO: Frolic. Much more on this still to come, I'm assuming.

COSTELLO: I'm sure.

Here's what's all new in the next half hour of DAYBREAK.

(BEGIN VIDEO CLIP)

HEINZ KERRY: And John is a fighter. He earned his medals the old-fashioned way.

(END VIDEO CLIP)

COSTELLO: She's known for being no holds barred. Up next, we'll hear a few choice words from Teresa Heinz Kerry.

And later this hour, details on the stem cell debate -- how the controversial topic takes center stage at the DNC.

But first, a horrific scene in Ba'qubah as Iraqi insurgents take aim at their own.

This is DAYBREAK for Wednesday.

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