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CNN Live At Daybreak

Swing State Pennsylvania; Tough Love for Children?

Aired August 11, 2004 - 06:30   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: We are counting down to the national election, less than three months away; 83 days to be exact.
President Bush is spending a second day on the campaign trial with a one-time primary rival. He and Senator John McCain stumped. Yes, they were together in Florida. Today, the two men will visit New Mexico and Arizona, two states where the presidential race is very tight.

John Kerry is reaching out to older Americans. Today, the Democratic presidential candidate is launching a push to get more seniors out to vote. In the meantime, Kerry has been pressuring President Bush to let Americans buy cheaper prescription drugs from Canada. Kerry is campaigning in Nevada and California today.

Seventeen key states could determine just who sits in the White House come January. One of those swing states in Pennsylvania, where 21 electoral votes are at stake.

Let's see what it will take to win. For that, we're joined on the phone by Dick Polman, national political writer at the "Philadelphia Inquirer."

Good morning, Dick.

DICK POLMAN, NATIONAL POLITICAL WRITER, "PHILADELPHIA INQUIRER": Good morning to you.

COSTELLO: So, which way is the state leaning?

POLMAN: Well, at the moment it seems to be leaning toward Kerry after being fairly close for most of the year. But there have been a number of developments lately, I think, that seem to have been shifted towards the challenger.

COSTELLO: Well, what developments would you be talking about?

POLMAN: Well, I mean, I think the economy and Iraq, I mean, particularly Iraq and the national security, a constellation of issues, and the issue really of trust and credibility. I mean, I think that a number of factors involving the war and the claims by why we went to war and certain things not panning out on the ground, I think it's kind of seeped in with a lot of people. I mean, it's taken a lot of time, I think, to sink in.

But I think a lot of people are just questioning -- a lot of people who would normally vote Republican are now questioning whether they can trust the administration the second time around.

COSTELLO: So, you're saying that Iraq at this moment in time is more important than the economy, but, of course, that could change.

POLMAN: It could change. It could. I mean, you know, the conditions on the ground in Iraq could be muted and intentions could be muted. But at the same time, even the economy is still not necessarily a factor in Bush's favor, because job growth has slowed down. And a lot of the jobs that are being created don't pay as much as the ones that have disappeared.

In Pennsylvania the economy is a very sensitive issue in a lot of parts of Pennsylvania. And even people who have jobs are concerned about the way the economy is moving, and that gets into really the parts of Pennsylvania that are most important, which is the suburbs around Philadelphia. Those suburban counties around Philadelphia are where really the disproportionate number of votes are.

COSTELLO: And the mostly Republican votes there, I would assume.

POLMAN: Well, you know, they have been traditionally Republican votes. I mean, between William McKinley in, like, 1901 -- excuse me -- in 1900, and George Bush, Sr. in 1988, almost all of those years for over 80 years there, those were Republican counties. But beginning with Bill Clinton's election in 1992 and continuing in '96 and 2000, those counties around Philadelphia all voted Democratic. It's been, like, a very interesting shift.

So, George W. Bush did poorly in those suburbs in 2000. If he's got any chance of winning Pennsylvania, he's going to have to do a lot better there this time.

COSTELLO: Well, he's visited there many, many times.

POLMAN: Thirty-one times.

COSTELLO: Thirty-one times. That's just insane. So, I'll ask you the question that I've asked other political analysts. You know, you visit a state 31 times. But are voters so polarized in this election season that their minds are already made up and it doesn't really matter?

POLMAN: Well, it does. But, well, you've still got a small number of swing -- well, there are two factors there. You've got a small number of swing voters, a small number of undecided that both sides are really trying to appeal to very intensely. And so that's one factor. And factors the whole -- there is an issue that the Democrats are pushing right now about stem cell research, which President Bush approved some federal money for, but the Democrats want to extend the funding there. And that apparently in polling is very, very important with undecided voters there. They're paying attention to that.

And the second factor is even though there is a lot of polarization, the focus turns to if that's true and people have made their minds up, it's increased the turnout among the people on your side. The people who have made their minds up make sure they all turn out in greater numbers.

COSTELLO: Yes.

POLMAN: And so there is a lot of intense activity going on, on the ground in Pennsylvania.

COSTELLO: A very important factor. Dick Polman, the political writer at the "Philadelphia Inquirer," thank you for joining DAYBREAK this morning.

POLMAN: Sure. My pleasure. Thank you.

COSTELLO: Wal-Mart is set to move into yet another city, but it seems they aren't welcome everywhere. What one city is doing to make it harder for Wal-Mart to move on in.

And at a quarter to the hour, how to deal with misbehaving children. A parenting expert weighs in this morning.

But first, here's a look at what else is making news this Wednesday morning.

(COMMERCIAL BREAK)

COSTELLO: Will we see another good day for Wall Street? Here is a look at the closing numbers. Stocks were on the up and up. The Dow closed with a 130-point gain. Nasdaq up 34 points. The S&P 500 up nearly 14 points.

It's time for a little business buzz right now. The L.A. City Council wants to stop Wal-Mart from moving in. Will it work?

Carrie Lee has more live for us from the Nasdaq Marketsite.

This seems to be the in-thing to do: keep Wal-Mart out.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Especially in California, Carol. Now it's happening in L.A.

As you said, the city council is giving preliminary approval to a proposed ordinance that could halt plans by Wal-Mart to build super centers within city limits.

Now, this proposal, a little bit different, would require Wal- Mart to show that their non-union discount stores would not hurt jobs, wages or businesses in the surrounding area.

Now, this vote comes after a nearly five-month strike by unionized grocery workers in southern California. They said the looming threat of Wal-Mart super stores forced down wages and gutted health benefits at supermarkets.

Now, Wal-Mart did, however, prevail in its efforts to stop an outright ban on the super centers. It looks like, though, they have some proving to do. And the final approval here is expected by next Wednesday -- Carol. COSTELLO: All right, we'll be watching.

A quick look at the futures before you go.

LEE: I'm glad you asked, because futures are looking very, very weak, especially for technology stocks for today's session. So, we did see nice gains yesterday on that Federal Reserve quarter-point hike, the measured pace of rate hikes expected to increase.

Cisco Systems last night after the close of trading did beat the Street on profits by a penny, pretty much expected there. But the forward guidance is not exactly stellar. The company expressing a degree of doubt about business in the coming months. So that's why we are expecting a very weak open today -- Carol.

COSTELLO: Bummer. All right, Carrie Lee live from the Nasdaq Marketsite, thank you.

Calling all parents. New guidelines are out this morning about the judgment calls you make. Where does the line between tough love and love that's too tough?

Here's Rachel Hall (ph).

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: No touching the stove, remember?

UNIDENTIFIED FEMALE (voice over): There are some rules in the Taylor (ph) house that are not to be broken. But if there is friction over footwear, this mom of four figures it's not worth the fight.

UNIDENTIFIED FEMALE: If this little guy wants to wear his Spider-Man water shoes, then that's OK. I just feel it's not worth fighting over his shoes. There are other things that we're very strict about.

UNIDENTIFIED FEMALE: "Parenting" magazine says before choosing your battles begin by making your expectations known.

UNIDENTIFIED FEMALE: Well, when it comes to setting limits, you need to be clear with your kids right up front about what you expect from them both at home and out in the world. The clearer you are with them, the less you'll battle it out later on every day.

UNIDENTIFIED FEMALE: To determine what justifies a battle, try asking yourself these questions:

Will these rules keep by child from getting hurt? This would include always holding hands crossing the street.

Will these limits teach my child right from wrong? Useful ones that fall in this category are tell the truth and pay for what you take.

Will these rules make my child easier to get along with, like sharing and taking turns?

Will these boundaries give my child a sense of responsibility? These would include brush your teeth every night and help pick up toys.

For more information on setting reasonable limits, check out the August issue of "Parenting" magazine.

I'm Rachel Hall (ph) for "Parenting" magazine.

(END VIDEOTAPE)

COSTELLO: Oh, but we have "Parenting" magazine with us this morning. Joining us now live is Sarah Smith.

Sarah, thank you for joining DAYBREAK.

SARAH SMITH, "PARENTING" MAGAZINE: Thank you for having me.

COSTELLO: You know, that story made it sound so easy to make decisions in regards to your children's discipline. But it's really hard.

SMITH: Oh, it really is. I mean, kids really want to push the limits that you set for them. You know, the trick is really to figure out which ones are worth fighting over and which ones, you know, you really need to stick to your guns on.

COSTELLO: So, how do you figure that out?

SMITH: Well, you know, you need to think, first of all, is this rule that I'm setting out for my child going to matter when she's 30? You know, things like, you know, if she wants to wear her tutu to preschool, you know, you might not really want her to, but the truth is she's not going to go to her first job in a tutu.

COSTELLO: Probably not.

SMITH: Yes.

COSTELLO: But stuff like, you know, don't go near the fireplace, that's really important.

SMITH: Right. When it comes to safety, that's one of the questions you need to ask yourself, too. If it's about your child's health and things like that, then yes, you need to stick to your guns no matter what.

COSTELLO: So...

SMITH: You know, and don't play with matches.

COSTELLO: So, how do you stick to your guns effectively and not harm the child?

SMITH: Well, you need to set up ahead of time what the rules are so your child knows that certain things are expected. You know, she needs to know before a play date, say, that she's going to need to share her toys. That will help her get along a little easier with her friends now and in the future, too.

COSTELLO: So, be more specific for us. Like, do you use a timeout? Does a spanking -- am I allowed to even mention spanking?

SMITH: Well, you know, at "Parenting" we don't recommend spanking. But things like timeouts are good, you know, if your child knows that that's something that you use in your house. You know, for some kids, though, a timeout isn't effective, because what they want to do is go to their room, you know.

So, you need to figure what kind of discipline is going to work for your child.

COSTELLO: Well, how do you know that? And if kid likes times- out -- is that the plural form of timeout? I don't know.

SMITH: Yes, I think so.

COSTELLO: But if they like them, then what other avenue do you have?

SMITH: Well, you might try taking away a certain perk that they get in the day, like desert or something like that. But, you know, another way you can go is to use a chart or reward system. You know, if she remembers to brush her teeth every night during the week, she gets a sticker. And then at the end of the week, you know, she'll get a larger prize or something. And that will maybe keep the battles to a minimum.

COSTELLO: So, it's positive reinforcement rather than negative.

SMITH: Exactly, right.

COSTELLO: Sarah, thank you for joining DAYBREAK this morning. We appreciate it.

SMITH: Thank you.

COSTELLO: Let's check in with Bill and Heidi, who is in for Soledad, in New York to see what's coming up on "AMERICAN MORNING."

Good morning.

BILL HEMMER, CNN ANCHOR: Hello, Carol.

COSTELLO: Hello.

HEMMER: How are you?

HEIDI COLLINS, CNN ANCHOR: Hello.

COSTELLO: Could you tell I don't have children? I'm glad Sarah was here. HEMMER: No, I think you're faking it pretty well, actually.

COSTELLO: Thank you.

HEMMER: Some of the headlines this morning, we'll talk about Amber Frey. Some say she could be on the stand into next week. The first day from yesterday we'll find out what she revealed about the intimate secrets about the relationship. And ultimately, Carol, what does this mean in terms of equating her evidence and her testimony to murder? So, we'll look forward to that today again.

COLLINS: Yes, we will. Several interviews there.

Also, Porter Goss now. Reaction to his appointment, President Bush nominating the veteran congressman and former CIA spy to be the new CIA director. Well, is he the right man for the job? Or is a battle brewing on Capitol Hill about this?

HEMMER: No shortage of opinions on that, huh?

COLLINS: Right.

HEMMER: Also from North Carolina, a Pakistani man accused of videotaping a number of landmarks in six different cities, mostly in the Southeast. Is he a terrorist or just a tourist? We'll get to that this morning here on "AMERICAN MORNING."

Jack continues his vacation, but for you, Carol, today we have...

COSTELLO: Yes?

COLLINS: Toure.

HEMMER: A great experience for us all.

COSTELLO: I like Toure. We've had many arguments between us.

HEMMER: All right!

COSTELLO: Toure and I.

HEMMER: We're going to have a few more today, too, by the way.

COSTELLO: Thanks to you both. We'll catch you in 15 minutes.

Your news, money, weather and sports. It is 6:45 Eastern. Here's what's all new this morning.

Jurors in Alaska have returned a "not guilty" verdict in a first of its kind case. Erwin Patterson (ph) had been accused of causing a fatal auto accident, because he was driving while watching a DVD. The jury didn't buy it.

The defense plans to appeal the conviction of a suspected serial killer in Louisiana. A jury found Derrick Todd Lee guilty of beating and stabbing a woman to death. He's still facing charges in other murder cases.

In money news, a report in "USA Today" finds more people turning to satellite television service; that, at the expense of cable TV firms.

In culture, will NASA send a repair robot into space to save the Hubble Telescope? A decision on the robot plan could be made by next summer. But as you know, it costs a lot to have a repairman make a visit. This plan would likely cost a billion dollars.

In sports, tennis star Jennifer Capriati is staying home. The 1992 gold medalist has a hamstring injury that will force her to miss this year's Games in Athens. She will be replaced by Lisa Raymond (ph).

(WEATHER BREAK)

COSTELLO: Those are the latest headlines for you this morning.

Food labels, do you read them? And do you really know what they mean when you read them? Next on DAYBREAK, what one company is doing to make it easier for you to understand.

(COMMERCIAL BREAK)

COSTELLO: We've gotten a lot of e-mails this morning.

CHAD MYERS, CNN METEOROLOGIST: It looks like a couple of hundred.

COSTELLO: Yes. The e-mail question of the morning: When it comes to foreign policy, is there any real difference between John Kerry and George Bush?

Well, let me read some of the e-mails we've received this morning.

This is from Mickey from State College, Pennsylvania: "Given the way Kerry has changed his views and opinions on this war, as well as the one he fought in, from one city to the next, I'm at a loss to determine exactly what his policy is."

And then there is this one: "George Bush and John Kerry both agree that Saddam had to go. What John Kerry is saying -- and I agree -- is that the war has been badly fought, wasting both lives and money."

This one from Josh in Washington: "It's obvious that John Kerry is against the fight against terrorism, criticizing every move made by George Bush, moves which are definitely crucial steps needed to be taken to rid the world of terror."

It's time to check out our "Web Clicks" right now.

MYERS: You bet. Three big stories, you've been clicking on them. So we'll tell you what they are. Mike Wallace in a little trouble last night outside Dukes in New York City. His limo was double-parked. He's 86 years old. The limo was double-parked. The limo and -- I don't know - taxi commission came up and said you've got to move your car to the driver. He comes out of the restaurant with his carry-out food.

COSTELLO: Meatloaf.

MYERS: And they get in a scuffle somehow. Somehow they get in a scuffle. He gets taken downtown and booked for disorderly conduct, an 86-year-old guy. Whatever, hey, you know...

COSTELLO: The second most clicked-on story just is pretty disgusting.

MYERS: A really weird wedding in the Philippines, this guy stumbles, trips, and touches the behind of the bride. Some of the other members of the party don't like that. They take him. They kill him, and then they -- well...

COSTELLO: They served him to the guests, and that's where we'll leave that.

The third most clicked-on story, nudists, they have a court victory this morning.

MYERS: I don't know about this one.

COSTELLO: Well, here, let me read just the top line.

MYERS: In Richmond, Virginia, something is going on, something called White Tail Farms?

COSTELLO: A federal judge -- right. A federal judge said Tuesday that a new Virginia law requiring parental supervision at a nudist camp for kids does not violate parents' rights to raise their children as they see fit.

MYERS: Oh my!

COSTELLO: And if you want to read more, you can go to CNN.com. What do you think? Want to see more coverage of a story? Are you peeved about something we've done? Do you think we're doing a good job? Shoot us an e-mail. Let it all out. The address: Daybreak@CNN.com. And we will read some of those e-mails on Friday.

MYERS: OK.

COSTELLO: And those will be quite interesting.

Food labels can be quite complicated but a necessary evil, if you're watching what you eat. Now a major food manufacturer has an idea to simplify its food labels.

Registered dietitian Lisa Drayer joins us live from New York.

Tell us how.

LISA DRAYER, REGISTERED DIETITIAN: Hi, Carol.

Yes. Well, we've heard about Nabisco's new 100 calorie snack packs, Coca-Cola's new soft drink with half the sugar and carbs. Now the latest change in this world of healthy food labeling: Pepsico's new smart spot symbol. This is a green logo that will appear on more than 100 of the company's foods, starting in September. And it was designed to help consumers better identify healthier foods.

Now, Carol, let's take a look at some of the criteria that foods must meet in order to bear this logo.

So first, a food must contain no more than 30 percent of calories from fat and 1 gram or less of saturated fat, no trans-fats. It cannot contain more than 60 milligrams of cholesterol and 480 milligrams of sodium. It must have 10 percent or more of the daily value for either Vitamin A, C, iron, calcium, protein or fiber. And it must contain no more than 25 percent of calories from added sugar, but it can if it has at least two and a half grams of fiber per serving.

Now, these are not the only criteria that are used. There are two other categories, Carol. For example, if a food offers a functional benefit from a natural or an added ingredient, it can also bear the logo. And if the product is reduced in calories, fat, sugar and sodium...

COSTELLO: Oh.

DRAYER: ... significantly by 25 percent as compared to the original product.

COSTELLO: So, it will have that little symbol on it, and that means buy it because it's good for you.

DRAYER: Well, yes and no. I did speak to Barbara Howard (ph). She is the vice chair of the Nutrition, Physical Activity and Metabolism Council of the American Heart Association. And she says the logo could be a little bit misleading from a nutritional standpoint.

For example, she points out that although their banana bread -- this is their new banana bread -- oatmeal squares, even though they are low in saturated fat and cholesterol, they are still high in sugar. They specifically contain 80 calories from sugar. This boosts the total calories to 220 calories per square.

COSTELLO: Wow!

DRAYER: Now that being said, though, Carol, there is a new low- sugar alternative I have with me here. This one has 50 percent less sugar as compared to their regular instant oatmeal.

COSTELLO: And it tastes like banana bread? DRAYER: Not necessarily. This one, though, is maple and brown sugar. And, Carol, it has Splenda. Remember, we talked about that in the past? Also three grams of fiber. So this one would be a healthier option, in my opinion.

COSTELLO: So look for the Quaker Oats, and the Quaker Oats people thank us this morning.

Lisa Drayer live in New York, thank you.

DRAYER: Thanks.

COSTELLO: Today's mug winner will be announced in two minutes, but first this is DAYBREAK for a Wednesday morning.

(COMMERCIAL BREAK)

COSTELLO: Oh, it's mug winner time. Take it away.

MYERS: You bet. We'll give you that mug right there.

We asked two questions yesterday. What American city voted yesterday to ban circus animals? And that was Denver. And historians recently discovered a movie in Moscow from a famous pair. What was that pair? It was Laurel and Hardy, of course.

And the winner, John Lind from Jacksonsville, Florida. John, you're in for some wind in Jacksonsville in the next couple of days, so keep your heads up on this one for sure.

And the DAYBREAK question of today, two of them. You have to answer them both. Name one way to soothe a cranky baby? I'll need to know that soon. Name the company introducing a new food label for its products. We just talked to Lisa Drayer about that.

We'll give you the answers tomorrow. E-mail your answers at Daybreak@CNN.com. Don't go to our Web site to look for a click. Just go to your e-mail, Daybreak@CNN.com.

COSTELLO: Yes, we're too cheap to have a Web site on DAYBREAK. It's not in our budget. Daybreak@CNN.com.

MYERS: What budget?

(WEATHER BREAK)

COSTELLO: "AMERICAN MORNING" starts right now.

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 August 11, 2004 - 06:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: We are counting down to the national election, less than three months away; 83 days to be exact.
President Bush is spending a second day on the campaign trial with a one-time primary rival. He and Senator John McCain stumped. Yes, they were together in Florida. Today, the two men will visit New Mexico and Arizona, two states where the presidential race is very tight.

John Kerry is reaching out to older Americans. Today, the Democratic presidential candidate is launching a push to get more seniors out to vote. In the meantime, Kerry has been pressuring President Bush to let Americans buy cheaper prescription drugs from Canada. Kerry is campaigning in Nevada and California today.

Seventeen key states could determine just who sits in the White House come January. One of those swing states in Pennsylvania, where 21 electoral votes are at stake.

Let's see what it will take to win. For that, we're joined on the phone by Dick Polman, national political writer at the "Philadelphia Inquirer."

Good morning, Dick.

DICK POLMAN, NATIONAL POLITICAL WRITER, "PHILADELPHIA INQUIRER": Good morning to you.

COSTELLO: So, which way is the state leaning?

POLMAN: Well, at the moment it seems to be leaning toward Kerry after being fairly close for most of the year. But there have been a number of developments lately, I think, that seem to have been shifted towards the challenger.

COSTELLO: Well, what developments would you be talking about?

POLMAN: Well, I mean, I think the economy and Iraq, I mean, particularly Iraq and the national security, a constellation of issues, and the issue really of trust and credibility. I mean, I think that a number of factors involving the war and the claims by why we went to war and certain things not panning out on the ground, I think it's kind of seeped in with a lot of people. I mean, it's taken a lot of time, I think, to sink in.

But I think a lot of people are just questioning -- a lot of people who would normally vote Republican are now questioning whether they can trust the administration the second time around.

COSTELLO: So, you're saying that Iraq at this moment in time is more important than the economy, but, of course, that could change.

POLMAN: It could change. It could. I mean, you know, the conditions on the ground in Iraq could be muted and intentions could be muted. But at the same time, even the economy is still not necessarily a factor in Bush's favor, because job growth has slowed down. And a lot of the jobs that are being created don't pay as much as the ones that have disappeared.

In Pennsylvania the economy is a very sensitive issue in a lot of parts of Pennsylvania. And even people who have jobs are concerned about the way the economy is moving, and that gets into really the parts of Pennsylvania that are most important, which is the suburbs around Philadelphia. Those suburban counties around Philadelphia are where really the disproportionate number of votes are.

COSTELLO: And the mostly Republican votes there, I would assume.

POLMAN: Well, you know, they have been traditionally Republican votes. I mean, between William McKinley in, like, 1901 -- excuse me -- in 1900, and George Bush, Sr. in 1988, almost all of those years for over 80 years there, those were Republican counties. But beginning with Bill Clinton's election in 1992 and continuing in '96 and 2000, those counties around Philadelphia all voted Democratic. It's been, like, a very interesting shift.

So, George W. Bush did poorly in those suburbs in 2000. If he's got any chance of winning Pennsylvania, he's going to have to do a lot better there this time.

COSTELLO: Well, he's visited there many, many times.

POLMAN: Thirty-one times.

COSTELLO: Thirty-one times. That's just insane. So, I'll ask you the question that I've asked other political analysts. You know, you visit a state 31 times. But are voters so polarized in this election season that their minds are already made up and it doesn't really matter?

POLMAN: Well, it does. But, well, you've still got a small number of swing -- well, there are two factors there. You've got a small number of swing voters, a small number of undecided that both sides are really trying to appeal to very intensely. And so that's one factor. And factors the whole -- there is an issue that the Democrats are pushing right now about stem cell research, which President Bush approved some federal money for, but the Democrats want to extend the funding there. And that apparently in polling is very, very important with undecided voters there. They're paying attention to that.

And the second factor is even though there is a lot of polarization, the focus turns to if that's true and people have made their minds up, it's increased the turnout among the people on your side. The people who have made their minds up make sure they all turn out in greater numbers.

COSTELLO: Yes.

POLMAN: And so there is a lot of intense activity going on, on the ground in Pennsylvania.

COSTELLO: A very important factor. Dick Polman, the political writer at the "Philadelphia Inquirer," thank you for joining DAYBREAK this morning.

POLMAN: Sure. My pleasure. Thank you.

COSTELLO: Wal-Mart is set to move into yet another city, but it seems they aren't welcome everywhere. What one city is doing to make it harder for Wal-Mart to move on in.

And at a quarter to the hour, how to deal with misbehaving children. A parenting expert weighs in this morning.

But first, here's a look at what else is making news this Wednesday morning.

(COMMERCIAL BREAK)

COSTELLO: Will we see another good day for Wall Street? Here is a look at the closing numbers. Stocks were on the up and up. The Dow closed with a 130-point gain. Nasdaq up 34 points. The S&P 500 up nearly 14 points.

It's time for a little business buzz right now. The L.A. City Council wants to stop Wal-Mart from moving in. Will it work?

Carrie Lee has more live for us from the Nasdaq Marketsite.

This seems to be the in-thing to do: keep Wal-Mart out.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Especially in California, Carol. Now it's happening in L.A.

As you said, the city council is giving preliminary approval to a proposed ordinance that could halt plans by Wal-Mart to build super centers within city limits.

Now, this proposal, a little bit different, would require Wal- Mart to show that their non-union discount stores would not hurt jobs, wages or businesses in the surrounding area.

Now, this vote comes after a nearly five-month strike by unionized grocery workers in southern California. They said the looming threat of Wal-Mart super stores forced down wages and gutted health benefits at supermarkets.

Now, Wal-Mart did, however, prevail in its efforts to stop an outright ban on the super centers. It looks like, though, they have some proving to do. And the final approval here is expected by next Wednesday -- Carol. COSTELLO: All right, we'll be watching.

A quick look at the futures before you go.

LEE: I'm glad you asked, because futures are looking very, very weak, especially for technology stocks for today's session. So, we did see nice gains yesterday on that Federal Reserve quarter-point hike, the measured pace of rate hikes expected to increase.

Cisco Systems last night after the close of trading did beat the Street on profits by a penny, pretty much expected there. But the forward guidance is not exactly stellar. The company expressing a degree of doubt about business in the coming months. So that's why we are expecting a very weak open today -- Carol.

COSTELLO: Bummer. All right, Carrie Lee live from the Nasdaq Marketsite, thank you.

Calling all parents. New guidelines are out this morning about the judgment calls you make. Where does the line between tough love and love that's too tough?

Here's Rachel Hall (ph).

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: No touching the stove, remember?

UNIDENTIFIED FEMALE (voice over): There are some rules in the Taylor (ph) house that are not to be broken. But if there is friction over footwear, this mom of four figures it's not worth the fight.

UNIDENTIFIED FEMALE: If this little guy wants to wear his Spider-Man water shoes, then that's OK. I just feel it's not worth fighting over his shoes. There are other things that we're very strict about.

UNIDENTIFIED FEMALE: "Parenting" magazine says before choosing your battles begin by making your expectations known.

UNIDENTIFIED FEMALE: Well, when it comes to setting limits, you need to be clear with your kids right up front about what you expect from them both at home and out in the world. The clearer you are with them, the less you'll battle it out later on every day.

UNIDENTIFIED FEMALE: To determine what justifies a battle, try asking yourself these questions:

Will these rules keep by child from getting hurt? This would include always holding hands crossing the street.

Will these limits teach my child right from wrong? Useful ones that fall in this category are tell the truth and pay for what you take.

Will these rules make my child easier to get along with, like sharing and taking turns?

Will these boundaries give my child a sense of responsibility? These would include brush your teeth every night and help pick up toys.

For more information on setting reasonable limits, check out the August issue of "Parenting" magazine.

I'm Rachel Hall (ph) for "Parenting" magazine.

(END VIDEOTAPE)

COSTELLO: Oh, but we have "Parenting" magazine with us this morning. Joining us now live is Sarah Smith.

Sarah, thank you for joining DAYBREAK.

SARAH SMITH, "PARENTING" MAGAZINE: Thank you for having me.

COSTELLO: You know, that story made it sound so easy to make decisions in regards to your children's discipline. But it's really hard.

SMITH: Oh, it really is. I mean, kids really want to push the limits that you set for them. You know, the trick is really to figure out which ones are worth fighting over and which ones, you know, you really need to stick to your guns on.

COSTELLO: So, how do you figure that out?

SMITH: Well, you know, you need to think, first of all, is this rule that I'm setting out for my child going to matter when she's 30? You know, things like, you know, if she wants to wear her tutu to preschool, you know, you might not really want her to, but the truth is she's not going to go to her first job in a tutu.

COSTELLO: Probably not.

SMITH: Yes.

COSTELLO: But stuff like, you know, don't go near the fireplace, that's really important.

SMITH: Right. When it comes to safety, that's one of the questions you need to ask yourself, too. If it's about your child's health and things like that, then yes, you need to stick to your guns no matter what.

COSTELLO: So...

SMITH: You know, and don't play with matches.

COSTELLO: So, how do you stick to your guns effectively and not harm the child?

SMITH: Well, you need to set up ahead of time what the rules are so your child knows that certain things are expected. You know, she needs to know before a play date, say, that she's going to need to share her toys. That will help her get along a little easier with her friends now and in the future, too.

COSTELLO: So, be more specific for us. Like, do you use a timeout? Does a spanking -- am I allowed to even mention spanking?

SMITH: Well, you know, at "Parenting" we don't recommend spanking. But things like timeouts are good, you know, if your child knows that that's something that you use in your house. You know, for some kids, though, a timeout isn't effective, because what they want to do is go to their room, you know.

So, you need to figure what kind of discipline is going to work for your child.

COSTELLO: Well, how do you know that? And if kid likes times- out -- is that the plural form of timeout? I don't know.

SMITH: Yes, I think so.

COSTELLO: But if they like them, then what other avenue do you have?

SMITH: Well, you might try taking away a certain perk that they get in the day, like desert or something like that. But, you know, another way you can go is to use a chart or reward system. You know, if she remembers to brush her teeth every night during the week, she gets a sticker. And then at the end of the week, you know, she'll get a larger prize or something. And that will maybe keep the battles to a minimum.

COSTELLO: So, it's positive reinforcement rather than negative.

SMITH: Exactly, right.

COSTELLO: Sarah, thank you for joining DAYBREAK this morning. We appreciate it.

SMITH: Thank you.

COSTELLO: Let's check in with Bill and Heidi, who is in for Soledad, in New York to see what's coming up on "AMERICAN MORNING."

Good morning.

BILL HEMMER, CNN ANCHOR: Hello, Carol.

COSTELLO: Hello.

HEMMER: How are you?

HEIDI COLLINS, CNN ANCHOR: Hello.

COSTELLO: Could you tell I don't have children? I'm glad Sarah was here. HEMMER: No, I think you're faking it pretty well, actually.

COSTELLO: Thank you.

HEMMER: Some of the headlines this morning, we'll talk about Amber Frey. Some say she could be on the stand into next week. The first day from yesterday we'll find out what she revealed about the intimate secrets about the relationship. And ultimately, Carol, what does this mean in terms of equating her evidence and her testimony to murder? So, we'll look forward to that today again.

COLLINS: Yes, we will. Several interviews there.

Also, Porter Goss now. Reaction to his appointment, President Bush nominating the veteran congressman and former CIA spy to be the new CIA director. Well, is he the right man for the job? Or is a battle brewing on Capitol Hill about this?

HEMMER: No shortage of opinions on that, huh?

COLLINS: Right.

HEMMER: Also from North Carolina, a Pakistani man accused of videotaping a number of landmarks in six different cities, mostly in the Southeast. Is he a terrorist or just a tourist? We'll get to that this morning here on "AMERICAN MORNING."

Jack continues his vacation, but for you, Carol, today we have...

COSTELLO: Yes?

COLLINS: Toure.

HEMMER: A great experience for us all.

COSTELLO: I like Toure. We've had many arguments between us.

HEMMER: All right!

COSTELLO: Toure and I.

HEMMER: We're going to have a few more today, too, by the way.

COSTELLO: Thanks to you both. We'll catch you in 15 minutes.

Your news, money, weather and sports. It is 6:45 Eastern. Here's what's all new this morning.

Jurors in Alaska have returned a "not guilty" verdict in a first of its kind case. Erwin Patterson (ph) had been accused of causing a fatal auto accident, because he was driving while watching a DVD. The jury didn't buy it.

The defense plans to appeal the conviction of a suspected serial killer in Louisiana. A jury found Derrick Todd Lee guilty of beating and stabbing a woman to death. He's still facing charges in other murder cases.

In money news, a report in "USA Today" finds more people turning to satellite television service; that, at the expense of cable TV firms.

In culture, will NASA send a repair robot into space to save the Hubble Telescope? A decision on the robot plan could be made by next summer. But as you know, it costs a lot to have a repairman make a visit. This plan would likely cost a billion dollars.

In sports, tennis star Jennifer Capriati is staying home. The 1992 gold medalist has a hamstring injury that will force her to miss this year's Games in Athens. She will be replaced by Lisa Raymond (ph).

(WEATHER BREAK)

COSTELLO: Those are the latest headlines for you this morning.

Food labels, do you read them? And do you really know what they mean when you read them? Next on DAYBREAK, what one company is doing to make it easier for you to understand.

(COMMERCIAL BREAK)

COSTELLO: We've gotten a lot of e-mails this morning.

CHAD MYERS, CNN METEOROLOGIST: It looks like a couple of hundred.

COSTELLO: Yes. The e-mail question of the morning: When it comes to foreign policy, is there any real difference between John Kerry and George Bush?

Well, let me read some of the e-mails we've received this morning.

This is from Mickey from State College, Pennsylvania: "Given the way Kerry has changed his views and opinions on this war, as well as the one he fought in, from one city to the next, I'm at a loss to determine exactly what his policy is."

And then there is this one: "George Bush and John Kerry both agree that Saddam had to go. What John Kerry is saying -- and I agree -- is that the war has been badly fought, wasting both lives and money."

This one from Josh in Washington: "It's obvious that John Kerry is against the fight against terrorism, criticizing every move made by George Bush, moves which are definitely crucial steps needed to be taken to rid the world of terror."

It's time to check out our "Web Clicks" right now.

MYERS: You bet. Three big stories, you've been clicking on them. So we'll tell you what they are. Mike Wallace in a little trouble last night outside Dukes in New York City. His limo was double-parked. He's 86 years old. The limo was double-parked. The limo and -- I don't know - taxi commission came up and said you've got to move your car to the driver. He comes out of the restaurant with his carry-out food.

COSTELLO: Meatloaf.

MYERS: And they get in a scuffle somehow. Somehow they get in a scuffle. He gets taken downtown and booked for disorderly conduct, an 86-year-old guy. Whatever, hey, you know...

COSTELLO: The second most clicked-on story just is pretty disgusting.

MYERS: A really weird wedding in the Philippines, this guy stumbles, trips, and touches the behind of the bride. Some of the other members of the party don't like that. They take him. They kill him, and then they -- well...

COSTELLO: They served him to the guests, and that's where we'll leave that.

The third most clicked-on story, nudists, they have a court victory this morning.

MYERS: I don't know about this one.

COSTELLO: Well, here, let me read just the top line.

MYERS: In Richmond, Virginia, something is going on, something called White Tail Farms?

COSTELLO: A federal judge -- right. A federal judge said Tuesday that a new Virginia law requiring parental supervision at a nudist camp for kids does not violate parents' rights to raise their children as they see fit.

MYERS: Oh my!

COSTELLO: And if you want to read more, you can go to CNN.com. What do you think? Want to see more coverage of a story? Are you peeved about something we've done? Do you think we're doing a good job? Shoot us an e-mail. Let it all out. The address: Daybreak@CNN.com. And we will read some of those e-mails on Friday.

MYERS: OK.

COSTELLO: And those will be quite interesting.

Food labels can be quite complicated but a necessary evil, if you're watching what you eat. Now a major food manufacturer has an idea to simplify its food labels.

Registered dietitian Lisa Drayer joins us live from New York.

Tell us how.

LISA DRAYER, REGISTERED DIETITIAN: Hi, Carol.

Yes. Well, we've heard about Nabisco's new 100 calorie snack packs, Coca-Cola's new soft drink with half the sugar and carbs. Now the latest change in this world of healthy food labeling: Pepsico's new smart spot symbol. This is a green logo that will appear on more than 100 of the company's foods, starting in September. And it was designed to help consumers better identify healthier foods.

Now, Carol, let's take a look at some of the criteria that foods must meet in order to bear this logo.

So first, a food must contain no more than 30 percent of calories from fat and 1 gram or less of saturated fat, no trans-fats. It cannot contain more than 60 milligrams of cholesterol and 480 milligrams of sodium. It must have 10 percent or more of the daily value for either Vitamin A, C, iron, calcium, protein or fiber. And it must contain no more than 25 percent of calories from added sugar, but it can if it has at least two and a half grams of fiber per serving.

Now, these are not the only criteria that are used. There are two other categories, Carol. For example, if a food offers a functional benefit from a natural or an added ingredient, it can also bear the logo. And if the product is reduced in calories, fat, sugar and sodium...

COSTELLO: Oh.

DRAYER: ... significantly by 25 percent as compared to the original product.

COSTELLO: So, it will have that little symbol on it, and that means buy it because it's good for you.

DRAYER: Well, yes and no. I did speak to Barbara Howard (ph). She is the vice chair of the Nutrition, Physical Activity and Metabolism Council of the American Heart Association. And she says the logo could be a little bit misleading from a nutritional standpoint.

For example, she points out that although their banana bread -- this is their new banana bread -- oatmeal squares, even though they are low in saturated fat and cholesterol, they are still high in sugar. They specifically contain 80 calories from sugar. This boosts the total calories to 220 calories per square.

COSTELLO: Wow!

DRAYER: Now that being said, though, Carol, there is a new low- sugar alternative I have with me here. This one has 50 percent less sugar as compared to their regular instant oatmeal.

COSTELLO: And it tastes like banana bread? DRAYER: Not necessarily. This one, though, is maple and brown sugar. And, Carol, it has Splenda. Remember, we talked about that in the past? Also three grams of fiber. So this one would be a healthier option, in my opinion.

COSTELLO: So look for the Quaker Oats, and the Quaker Oats people thank us this morning.

Lisa Drayer live in New York, thank you.

DRAYER: Thanks.

COSTELLO: Today's mug winner will be announced in two minutes, but first this is DAYBREAK for a Wednesday morning.

(COMMERCIAL BREAK)

COSTELLO: Oh, it's mug winner time. Take it away.

MYERS: You bet. We'll give you that mug right there.

We asked two questions yesterday. What American city voted yesterday to ban circus animals? And that was Denver. And historians recently discovered a movie in Moscow from a famous pair. What was that pair? It was Laurel and Hardy, of course.

And the winner, John Lind from Jacksonsville, Florida. John, you're in for some wind in Jacksonsville in the next couple of days, so keep your heads up on this one for sure.

And the DAYBREAK question of today, two of them. You have to answer them both. Name one way to soothe a cranky baby? I'll need to know that soon. Name the company introducing a new food label for its products. We just talked to Lisa Drayer about that.

We'll give you the answers tomorrow. E-mail your answers at Daybreak@CNN.com. Don't go to our Web site to look for a click. Just go to your e-mail, Daybreak@CNN.com.

COSTELLO: Yes, we're too cheap to have a Web site on DAYBREAK. It's not in our budget. Daybreak@CNN.com.

MYERS: What budget?

(WEATHER BREAK)

COSTELLO: "AMERICAN MORNING" starts right now.

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