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Bush Holds Rally in Colorado; Kerry Prepares for Debate in Arizona; Air Force Video Shows Deadly Attack on Insurgents or Civilians?; Red Sox & Yankees Renew Rivalry in ALCS

Aired October 12, 2004 - 10:00   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.


DARYN KAGAN, CNN ANCHOR: From CNN world headquarters in Atlanta. I'm Daryn Kagan. We start this out by taking a look at what is happening now in the news.
At least 11 al Qaeda suspects have, quote, "disappeared," while in U.S. custody. That claim from a just released report from the Human Rights Watch. In a 46-page report, the group referred to suspects as quote, "ghost detainees." The report also says the CIA is holding the al Qaeda suspects in secret locations reportedly outside the U.S., with no contact to the outside world.

Saudi officials say three suspected militants are dead after a fierce fight with police in Riyadh. The battle began earlier today when police tried to enter a building and found the occupants using women and children as shields. Two militants were shot to death and the other died when he triggered an explosion.

Could turmoil in the oil markets spiral into a full-blown recession? Economists are debating that question, as oil futures rose above $54 a barrel for U.S. light crude today. Experts do agree that oil prices have already spiked enough to take the bite out of the nation's economic growth. But they cannot decide on how much that will affect the U.S. economy.

And in Russia prayers and photographs form portraits of grief. Today marks the formal end of a 40-day mourning for those killed in the Beslan school massacre. Recalling the horror, one grief-stricken resident said, quote, "We are all dying from this." Many laid flowers at the school. And over 300 people died there, many of them children, in the early September attack.

Check your calendars. Only three weeks to go until Election Day. Our latest poll shows the race for the White House is neck and neck. Take a look at these numbers. A CNN/"USA Today"/Gallup poll has Senator Kerry and President Bush tied among registered voters, with Kerry holding a one-point edge among likely voters. That lead is within the poll's margin of error. As to who will do a better job in the third and final debate, a majority are picking Senator Kerry.

One day before that potentially decisive debate President Bush is reaching out to voters in a conservative stronghold in Colorado. The president will speak at a rally next hour in Colorado Springs. Bush supporters gave the president a rousing welcome in Red Rock Park near Denver late yesterday. The president used the opportunity to attack a comment that John Kerry made in "The New York Times" interview. (BEGIN VIDEO CLIP)

GEORGE W. BUSH (R), PRESIDENT OF THE UNITED STATES: Now, just this weekend, Senator Kerry talked of reducing terrorism to, quote, "nuisance," end quote. And compared it to prostitution and illegal gambling. See, I couldn't disagree more.

(END VIDEO CLIP)

KAGAN: Well, as for the senator, he is quiet today. He is staying in New Mexico to get ready for the debate tomorrow in Tempe, Arizona.

Our Ed Henry is in Santa Fe with more on that.

Ed, good morning.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good morning, Daryn. That's right. We were expecting that Senator John Kerry was going to head to Arizona tonight in order to get into place for tomorrow's big debate. But instead, late last night he changed his mind. He's going to stay in Santa Fe tonight. Part of the reason, we're told by aides, is that Senator Kerry did not want to be traveling tonight during Game 1 of that big New York Yankees/Boston Red Sox series. Obviously, we know he's on the Red Sox side of that.

But there's obviously a more important reason, as well. John Kerry wanted to stay here for one more night to make sure that he was prepared. He wanted one more night of debate prep.

(BEGIN VIDEOTAPE)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I have come for fresh air and good clear thinking, to get ready for the next debate.

(CHEERING)

HENRY (voice-over): And he came to sharpen his rhetoric on the domestic front, the focus of tomorrow's third debate. On Monday, Kerry slammed President Bush. He pointed out gas prices are up 30 percent, home heating costs have soared 91 percent.

KERRY: When it comes to developing a real energy policy, George Bush has run out of gas.

HENRY: That was just one of the litany of issues Kerry says the president has mishandled here at home.

KERRY: The only people George Bush's policies are working for are the people that he's chosen to help. They're working for drug companies. They're working for HMOs. And they're certainly working for the big oil companies.

HENRY: But Kerry opened with an emotional reference to another domestic matter by paying tribute to Christopher Reeve. KERRY: Chris was beautiful, hopeful person full of zest for life, full of the caring for other people. He was a great, engaged, creative spirit. I know that if we put our minds to it, one day we're going to realize Chris's inevitable dream. And that's our mission for all of us.

HENRY: In Friday's debate, Kerry hammered the president for not pushing harder for stem cell research. And invoked the name of Reeve.

KERRY: Chris Reeve is a friend of mine.

HENRY: A Kerry aide told CNN that Reeve left the senator a message on Saturday saying, "Keep up the fight," something Kerry now plans to do.

(END VIDEOTAPE)

HENRY: Now we're told that John Kerry is also thinking about attending Christopher Reeve's funeral, depending on how his schedule turns out, depending on the family's arrangements. Also, Kerry aides say while stem cell research was already a major issue in this campaign, it's going to be elevated even more by Reeve's death. Kerry's staff believes he's on the right side of this issue, especially because it's popular with swing voters.

But there is some political risk for Kerry because some Catholic bishops have already come out against him for his position on abortion. They're also not happy about his position on stem cell research. So it's not clear how this will play politically -- Daryn.

KAGAN: You know, Ed, when you're not usually picking from the red or green sauce on the campaign trail there in New Mexico, we find you on Capitol Hill. And a question I did not get a chance to ask you yesterday. There is a bill making its way through Congress that has Christopher Reeve's name on it. What's the update on how that is doing and what's its status?

HENRY: That's right. This bill has about 69 co-sponsors in the House, I think about 28 co-sponsors in the Senate. It is intended -- it's named after Christopher Reeve and is intended to improve research and development to try to find out more about paralysis, try to help people with paralysis. And my understanding right now that it has not gotten out of a House committee or a Senate committee. And Congress has now headed out of session, as you know.

They're likely to come back right before the election to deal with the 9/11 intelligence reform bill. But there's no suggestion that they will deal with this immediately. But as you know, many times when there's a death or major news event, sometimes Congress can work with deliberate speed -- Daryn.

KAGAN: All right. Ed Henry in Santa Fe, New Mexico. Enjoy your extra day there. Thank you.

HENRY: Thank you. KAGAN: The Democratic National Committee plans to file a complaint with the FEC today about a broadcaster's plan to air a documentary that criticizes John Kerry. The Sinclair Broadcast Group plans to air something called "Stolen Honor: Wounds that Never Heal" on its 62 stations, two weeks before the election. The movie deals with Kerry's anti-war activities after he returned from the Vietnam War three decades ago. Sinclair would preempt regular prime time programming to show the documentary. Democrats say there is no comparison between this movie and Michael Moore's "Fahrenheit 9/11," which is showing on pay cable.

(BEGIN VIDEO CLIPS)

GOV. BILL RICHARDSON (D), NEW MEXICO: What you have here is a blatant abuse of the airwaves. You have a blatant misuse of corporate funds to influence an election two to three weeks before the vote. You have somebody that owns the station that is ideologically committed to the other side, commercial free. It doesn't compare to "Fahrenheit 9/11," that's pay-per-view. You can -- you have a choice of viewing it. Viewers have no choice in these huge numbers of stations.

UNIDENTIFIED MALE: It's a little bit interesting and amusing to me to hear this, having endured a CBS report based on false documents, having endured "Fahrenheit 9/11," having endured the Kitty Kelley book that was entirely false. We're not in the business of filing complaints against media organizations. And it's interesting to me that the Democrats are.

Each campaign has to decide how they want to deal with a broadcast that they don't like. In our case we try to tell the truth. In their case they apparently file a legal complaint.

(END VIDEO CLIPS)

KAGAN: Tomorrow night, you're going to get one more chance to see the president and the senator face off, of course. Our six hour prime-time coverage of the final debate begins at 7:00 p.m. Eastern. So please join us for that.

And tonight, First Lady Laura Bush will be the guest on CNN's "LARRY KING LIVE." That is 9:00 Eastern, 6:00 Pacific.

Updating you now on the campaign to rid Iraqi cities of insurgents, ahead of the country's January elections. The U.S. military says separate air strikes in Falluja destroyed a terror safe house and meeting center. Both sites were linked to Abu Musab al Zarqawi and his terrorist network.

In another part of the Sunni Triangle today, Iraqi forces backed by U.S. troops raided seven mosques in Ramadi. The U.S. says the mosques have harbored known terrorists, and have been used as weapon storage sites. And Iraqi troops conducted a raid in the northern city of Tal Afar detaining eight insurgents and confiscating weapons.

U.S. Air Force cockpit video, seen on the Internet, shows what may be an attack on Iraqi insurgents, or it might be innocent civilians.

CNN's Jamie McIntyre looks at the Falluja controversy.

(BEGIN VIDEOTAPE)

(GUNFIRE)

JAIME MCINTYRE, CNN PENTAGON CORRESPONDENT (voice-over): Saturday April 10 capped a bloody week in Falluja. Hundreds of Iraqis were killed by U.S. Marines, who were still pushing into the insurgent stronghold, even as members of Iraq's Governing Council were negotiating a cease-fire. U.S. Air Force F-16s dropped more bombs in support of the Marine offensive that Saturday than on any day that week.

A cockpit video of one such engagement, never officially released, has circulated on the Internet for months. CNN has confirmed it's authentic. The 53-second clip provides a rare look at how the U.S. uses what it calls "precision air strikes" in urban areas to support ground operations.

(BEGIN AIR FORCE VIDEO CLIP)

UNIDENTIFIED MALE: I've got numerous individuals on the road. You want me to take those out?

UNIDENTIFIED MALE: Take them out.

(END AIR FORCE VIDEO CLIP)

MCINTYRE: According to a U.S. military account, the order to "take them out" is from a forward air controller on the ground with the Marines, whose job is to confirm the targets are hostile before calling in the bombs. The original target was said to be a nearby building, where Marines have been trading fire with the insurgents before they allegedly fled into the street.

(BEGIN AIR FORCE VIDEO CLIP)

UNIDENTIFIED MALE: Ten seconds.

UNIDENTIFIED MALE: Roger.

(END AIR FORCE VIDEO CLIP)

MCINTYRE: The U.S. says the ground controller could see the situation before he cleared the pilot to drop a 500-pound bomb.

UNIDENTIFIED MALE: Impact!

UNIDENTIFIED MALE: Oh, dude.

(END AIR FORCE VIDEO CLIP)

MCINTYRE: Experts who've reviewed the tape at CNN's request, say whether the strike was legitimate hinges entirely on whether the controller was right.

JAMES CARAFANO, MILITARY LAW ANALYST: And the challenge there is for the guy who has his eye on the target, it's his responsibility to identify the target to the aircraft.

LT. GEN. ROBERT GARD (RET.), U.S. ARMY: My first reaction to it was, I wondered where the air controller was? And whether he could identify that as a group of insurgents? Or whether he was somewhere remote from that area, and didn't know for sure.

MCINTYRE: In an interview with Channel 4 Television in the U.K., a doctor who says he was at the hospital in Falluja in April claimed the dead were innocent civilians. At the time, fierce fighting across Falluja was filling the local hospital with numerous casualties, including women and children. And some wonder whether it's logical for insurgents to move in a large group that would make them vulnerable to air strikes.

GARD: The only questionable thing is whether or not well- disciplined and competent insurgents would pour out of a building onto a wide street, without any cover. On the other hand, we do know that there are a number of insurgents who are poorly trained, who out of anger or frustration have taken up arms. And it's quite possible that they were insurgents.

MCINTYRE (on camera): Even the most precise air strikes can result in unintended civilian casualties. But the U.S. military insists this strike was by the book, and carefully followed rules designed to minimize the risk of innocent lives.

Jamie McIntyre, CNN, the Pentagon.

(END VIDEOTAPE)

KAGAN: And this just in from the Supreme Court, the High Court announcing that it's going to look at a couple cases that will take up the constitutionality of the display of the 10 Commandments in government buildings, on government land, and government buildings, that will put the justices in the middle of a political hot potato. In the past, the justices have to refused to revisit the issues that came from a 1980 decision, that refused and banned any postings of the 10 Commandments in public school classrooms. This appeal early next year will be involving a case out of Kentucky and Texas.

So more on that later but the Supreme Court deciding to look at the issue of posting the 10 Commandments in public buildings. Actually, public government buildings we should say.

Stocks, bonds and the presidential race. We'll look at how a dip in the Dow could hurt or help the candidates.

Plus, it's the Yankees and the Red Sox again, a great rivalry. Do the Red Sox stand a chance? We'll talk about it.

And later on, celebrities and a shoe designer combine their efforts to fight breast cancer. Wait until you see what they've come up with.

(COMMERCIAL BREAK)

KAGAN: Well, while we're talking about the stock market, you know, the distance from Wall Street to 1600 Pennsylvania Avenue is not as far as you might think.

Our Allan Chernoff joins us to talk about that link between stocks and politics.

Allan, good morning.

ALLAN CHERNOFF, CNN CORRESPONDENT: Hello, Daryn. Well, the connection between the stock market and presidential elections usually is pretty simple. Typically during the year of a presidential election, the stock market rises. And in that case, the incumbent party candidate has won two thirds of the time. But this year is a different story.

(BEGIN VIDEOTAPE)

CHERNOFF (voice-over): There is no debate on one pocketbook issue. The stock market has been lousy during the Bush presidency. Since George Bush took office in January of 2001, the Dow Jones Industrial Average is down 5 percent. The NASDAQ Composite off 30 percent. Typically, the stock market rises during an election year. But so far this year, the major indices are down.

GREG VALIERRE, SCHWAB WASHINGTON RESEARCH GROUP: In the last year, the stock market has not done very well. People keep getting quarterly statements that have minus signs in front of them. And I think that doesn't help the president.

CHERNOFF: The stock market is never purely a function of a president's performance. It plays off many factors, at home and overseas, beyond a president's control.

BUSH: The stock market was heading down before Dick Cheney and I showed up in Washington.

UNIDENTIFIED FEMALE: Yes!

UNIDENTIFIED FEMALE: Yes!

BUSH: And then we had a recession, just as soon as we showed up.

(LAUGHTER)

BUSH: And then we had some corporate scandals, which affected our economy.

CHERNOFF: Those who are most heavily invested in the market are wealthy Americans, earning more than $200,000 a year; a group that can expect higher taxes if Senator Kerry were elected president. KERRY: Join me in rolling back the president's unaffordable tax cut for people earning more than $200,000 a year. That's all. Ninety-eight percent of America, I'm giving you a tax cut and I'm giving you healthcare.

CHERNOFF: One reason the stock market's poor performance may not hurt George Bush.

UNIDENTIFIED MALE: I think Bush is, you know, far better economically, having lowered taxes, lower interest rates. You see things like home ownership at an all-time high.

(END VIDEOTAPE)

CHERNOFF: Still, stock market history is not on the president's side. There have been only six times in the past century when the stock market was down for the year on a presidential Election Day. And in those situations, the incumbent party candidate won only twice: FDR in 1940, and Ronald Reagan in 1984 -- Daryn.

KAGAN: Well, with things as they are as close this year, every little bit of indication is an interesting look at. Allan, thank you for that.

An old-time rivalry and a brand new player, are we all game for this year's baseball league championship rivalries? Preview for you Red Sox and Yankees.

(COMMERCIAL BREAK)

KAGAN: Cue the volcano.

(LAUGHTER)

JACQUI JERAS, CNN METEOROLOGIST: Every time...

KAGAN: Right on time, there she goes. There she blows. Mount St. Helens emitting some more steam today. Clearly something's going on there. Just more action there at the volcano, seismic activity, however, very low. And there's more and more activity looking like there really is a lot of magma or lava that's getting ready to come. Get closer and closer to the surface.

A little baseball talk right now. For Houston, no problems. The Astros might still be soaked in champagne this morning, after celebrating their win against the Atlanta Braves on Monday night. For the first time in their 43-year history, the Astros won a post-season series. A long time coming for that. Final score 12 to 3, decisive no doubt. Houston will now face the Central Division rival St. Louis in the N.L. Championship Series, which starts tomorrow night in St. Louis.

But the big series we're talking about, the rivalry brewing between the Astros and Cardinals, is nothing, nothing on the New York Yankees and the Boston Red Sox that is ready to go to a full boil. Those teams renew their playoff battle tonight.

And here with more food for thought on the playoff action, Jim Caple senior writer for espn.com.

Jim...

JIM CAPLE, SENIOR WRITER, ESPN.COM: How are you doing?

KAGAN: ... good morning. It is an excellent morning for sports fans. Third time in six years that these two have faced off for this series. So it's not like this is something new. But it's like the stakes just keep getting higher and higher.

CAPLE: Yes. This particular series is about as big as it gets. It's so big, in fact, I think that Johnny Damon is going to comb his hair today.

(LAUGHTER)

KAGAN: OK. Let's not get out of control here. One of the things that was raising the stakes this year is A-Rod. Alex Rodriguez, Boston Red Sox this close it looked like to getting him before the season. Instead, of course, the trade going to the New York Yankees.

CAPLE: That's where the focus point of this all started, or escalated.

KAGAN: Right.

CAPLE: It was bad enough, big enough last year with Grady Little forgetting what the bullpen phone number was and leaving Pedro out there forever. And then the Red Sox, of course, well, we've got to get better. So they tried to trade for Alex Rodriguez. Well, although they even had it, they already had a short stop. But they decided we're going to try to trade for him. In typical Boston Red Sox fashion, it backfired completely because the Yankees ended up getting him. The best player in the league goes to the best team in baseball and they just get richer and richer. And it's been feeding ever since.

I was at spring training game in the first game between the Red Sox and the Yankees in spring training, Fort Myers, and there were people lined up the night before at midnight. And they were buying tickets for, you know, a couple hundred dollars they were going for from scalpers. It was just absolutely ridiculous. And now, it's finally coming down to this, which everybody was hoping for.

KAGAN: Right. So here's the thing. I mean A-Rod did not have the most stellar of regular seasons. But as he's proven already in the playoffs, he is a clutch guy. And he is the guy you want to have on your team, and the guy who could make the difference.

CAPLE: Well, he certainly had a very good series against the Twins over the weekend. He did -- everybody knows about that he can hit and all that. But what he did, he did the little things, like he stole third base after a double in Game 4. Just sort of saw that the pitcher wasn't paying enough attention to him, and then forced the Twins into a bad situation. And he makes -- he does all the little things right.

Now, whether he can continue going it; well, you know, we're going to find out. He's -- it's a big stage, and if he does well, everyone is going to love him in New York. And if he does poorly, you know, they're all going to consider him a bum. That's just the way it works.

KAGAN: It can be a tough town.

OK. Ten seconds, who wins the series? Who wins the whole thing?

CAPLE: You look at it on paper and the Red Sox should win it. They've got the better pitching. They've got the better offense. They're all lined up, but they're the Red Sox. So the Yankees will win.

KAGAN: And who takes the World Series?

CAPLE: I'm going to go with the Cardinals. I think they're the best team in baseball.

KAGAN: All right. We have you on tape saying that.

CAPLE: OK.

(LAUGHTER)

KAGAN: Jim Caple, espn.com, thanks for stopping by.

CAPLE: No problem.

KAGAN: All right. We turn back to California, the defense getting its turn today going on the offense in the Scott Peterson case. We will take you live to the courthouse.

Plus, Canada's war on terror. Why there's worry our neighbor to the north could be in al Qaeda staging ground.

(COMMERCIAL BREAK)

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Aired October 12, 2004 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: From CNN world headquarters in Atlanta. I'm Daryn Kagan. We start this out by taking a look at what is happening now in the news.
At least 11 al Qaeda suspects have, quote, "disappeared," while in U.S. custody. That claim from a just released report from the Human Rights Watch. In a 46-page report, the group referred to suspects as quote, "ghost detainees." The report also says the CIA is holding the al Qaeda suspects in secret locations reportedly outside the U.S., with no contact to the outside world.

Saudi officials say three suspected militants are dead after a fierce fight with police in Riyadh. The battle began earlier today when police tried to enter a building and found the occupants using women and children as shields. Two militants were shot to death and the other died when he triggered an explosion.

Could turmoil in the oil markets spiral into a full-blown recession? Economists are debating that question, as oil futures rose above $54 a barrel for U.S. light crude today. Experts do agree that oil prices have already spiked enough to take the bite out of the nation's economic growth. But they cannot decide on how much that will affect the U.S. economy.

And in Russia prayers and photographs form portraits of grief. Today marks the formal end of a 40-day mourning for those killed in the Beslan school massacre. Recalling the horror, one grief-stricken resident said, quote, "We are all dying from this." Many laid flowers at the school. And over 300 people died there, many of them children, in the early September attack.

Check your calendars. Only three weeks to go until Election Day. Our latest poll shows the race for the White House is neck and neck. Take a look at these numbers. A CNN/"USA Today"/Gallup poll has Senator Kerry and President Bush tied among registered voters, with Kerry holding a one-point edge among likely voters. That lead is within the poll's margin of error. As to who will do a better job in the third and final debate, a majority are picking Senator Kerry.

One day before that potentially decisive debate President Bush is reaching out to voters in a conservative stronghold in Colorado. The president will speak at a rally next hour in Colorado Springs. Bush supporters gave the president a rousing welcome in Red Rock Park near Denver late yesterday. The president used the opportunity to attack a comment that John Kerry made in "The New York Times" interview. (BEGIN VIDEO CLIP)

GEORGE W. BUSH (R), PRESIDENT OF THE UNITED STATES: Now, just this weekend, Senator Kerry talked of reducing terrorism to, quote, "nuisance," end quote. And compared it to prostitution and illegal gambling. See, I couldn't disagree more.

(END VIDEO CLIP)

KAGAN: Well, as for the senator, he is quiet today. He is staying in New Mexico to get ready for the debate tomorrow in Tempe, Arizona.

Our Ed Henry is in Santa Fe with more on that.

Ed, good morning.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good morning, Daryn. That's right. We were expecting that Senator John Kerry was going to head to Arizona tonight in order to get into place for tomorrow's big debate. But instead, late last night he changed his mind. He's going to stay in Santa Fe tonight. Part of the reason, we're told by aides, is that Senator Kerry did not want to be traveling tonight during Game 1 of that big New York Yankees/Boston Red Sox series. Obviously, we know he's on the Red Sox side of that.

But there's obviously a more important reason, as well. John Kerry wanted to stay here for one more night to make sure that he was prepared. He wanted one more night of debate prep.

(BEGIN VIDEOTAPE)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I have come for fresh air and good clear thinking, to get ready for the next debate.

(CHEERING)

HENRY (voice-over): And he came to sharpen his rhetoric on the domestic front, the focus of tomorrow's third debate. On Monday, Kerry slammed President Bush. He pointed out gas prices are up 30 percent, home heating costs have soared 91 percent.

KERRY: When it comes to developing a real energy policy, George Bush has run out of gas.

HENRY: That was just one of the litany of issues Kerry says the president has mishandled here at home.

KERRY: The only people George Bush's policies are working for are the people that he's chosen to help. They're working for drug companies. They're working for HMOs. And they're certainly working for the big oil companies.

HENRY: But Kerry opened with an emotional reference to another domestic matter by paying tribute to Christopher Reeve. KERRY: Chris was beautiful, hopeful person full of zest for life, full of the caring for other people. He was a great, engaged, creative spirit. I know that if we put our minds to it, one day we're going to realize Chris's inevitable dream. And that's our mission for all of us.

HENRY: In Friday's debate, Kerry hammered the president for not pushing harder for stem cell research. And invoked the name of Reeve.

KERRY: Chris Reeve is a friend of mine.

HENRY: A Kerry aide told CNN that Reeve left the senator a message on Saturday saying, "Keep up the fight," something Kerry now plans to do.

(END VIDEOTAPE)

HENRY: Now we're told that John Kerry is also thinking about attending Christopher Reeve's funeral, depending on how his schedule turns out, depending on the family's arrangements. Also, Kerry aides say while stem cell research was already a major issue in this campaign, it's going to be elevated even more by Reeve's death. Kerry's staff believes he's on the right side of this issue, especially because it's popular with swing voters.

But there is some political risk for Kerry because some Catholic bishops have already come out against him for his position on abortion. They're also not happy about his position on stem cell research. So it's not clear how this will play politically -- Daryn.

KAGAN: You know, Ed, when you're not usually picking from the red or green sauce on the campaign trail there in New Mexico, we find you on Capitol Hill. And a question I did not get a chance to ask you yesterday. There is a bill making its way through Congress that has Christopher Reeve's name on it. What's the update on how that is doing and what's its status?

HENRY: That's right. This bill has about 69 co-sponsors in the House, I think about 28 co-sponsors in the Senate. It is intended -- it's named after Christopher Reeve and is intended to improve research and development to try to find out more about paralysis, try to help people with paralysis. And my understanding right now that it has not gotten out of a House committee or a Senate committee. And Congress has now headed out of session, as you know.

They're likely to come back right before the election to deal with the 9/11 intelligence reform bill. But there's no suggestion that they will deal with this immediately. But as you know, many times when there's a death or major news event, sometimes Congress can work with deliberate speed -- Daryn.

KAGAN: All right. Ed Henry in Santa Fe, New Mexico. Enjoy your extra day there. Thank you.

HENRY: Thank you. KAGAN: The Democratic National Committee plans to file a complaint with the FEC today about a broadcaster's plan to air a documentary that criticizes John Kerry. The Sinclair Broadcast Group plans to air something called "Stolen Honor: Wounds that Never Heal" on its 62 stations, two weeks before the election. The movie deals with Kerry's anti-war activities after he returned from the Vietnam War three decades ago. Sinclair would preempt regular prime time programming to show the documentary. Democrats say there is no comparison between this movie and Michael Moore's "Fahrenheit 9/11," which is showing on pay cable.

(BEGIN VIDEO CLIPS)

GOV. BILL RICHARDSON (D), NEW MEXICO: What you have here is a blatant abuse of the airwaves. You have a blatant misuse of corporate funds to influence an election two to three weeks before the vote. You have somebody that owns the station that is ideologically committed to the other side, commercial free. It doesn't compare to "Fahrenheit 9/11," that's pay-per-view. You can -- you have a choice of viewing it. Viewers have no choice in these huge numbers of stations.

UNIDENTIFIED MALE: It's a little bit interesting and amusing to me to hear this, having endured a CBS report based on false documents, having endured "Fahrenheit 9/11," having endured the Kitty Kelley book that was entirely false. We're not in the business of filing complaints against media organizations. And it's interesting to me that the Democrats are.

Each campaign has to decide how they want to deal with a broadcast that they don't like. In our case we try to tell the truth. In their case they apparently file a legal complaint.

(END VIDEO CLIPS)

KAGAN: Tomorrow night, you're going to get one more chance to see the president and the senator face off, of course. Our six hour prime-time coverage of the final debate begins at 7:00 p.m. Eastern. So please join us for that.

And tonight, First Lady Laura Bush will be the guest on CNN's "LARRY KING LIVE." That is 9:00 Eastern, 6:00 Pacific.

Updating you now on the campaign to rid Iraqi cities of insurgents, ahead of the country's January elections. The U.S. military says separate air strikes in Falluja destroyed a terror safe house and meeting center. Both sites were linked to Abu Musab al Zarqawi and his terrorist network.

In another part of the Sunni Triangle today, Iraqi forces backed by U.S. troops raided seven mosques in Ramadi. The U.S. says the mosques have harbored known terrorists, and have been used as weapon storage sites. And Iraqi troops conducted a raid in the northern city of Tal Afar detaining eight insurgents and confiscating weapons.

U.S. Air Force cockpit video, seen on the Internet, shows what may be an attack on Iraqi insurgents, or it might be innocent civilians.

CNN's Jamie McIntyre looks at the Falluja controversy.

(BEGIN VIDEOTAPE)

(GUNFIRE)

JAIME MCINTYRE, CNN PENTAGON CORRESPONDENT (voice-over): Saturday April 10 capped a bloody week in Falluja. Hundreds of Iraqis were killed by U.S. Marines, who were still pushing into the insurgent stronghold, even as members of Iraq's Governing Council were negotiating a cease-fire. U.S. Air Force F-16s dropped more bombs in support of the Marine offensive that Saturday than on any day that week.

A cockpit video of one such engagement, never officially released, has circulated on the Internet for months. CNN has confirmed it's authentic. The 53-second clip provides a rare look at how the U.S. uses what it calls "precision air strikes" in urban areas to support ground operations.

(BEGIN AIR FORCE VIDEO CLIP)

UNIDENTIFIED MALE: I've got numerous individuals on the road. You want me to take those out?

UNIDENTIFIED MALE: Take them out.

(END AIR FORCE VIDEO CLIP)

MCINTYRE: According to a U.S. military account, the order to "take them out" is from a forward air controller on the ground with the Marines, whose job is to confirm the targets are hostile before calling in the bombs. The original target was said to be a nearby building, where Marines have been trading fire with the insurgents before they allegedly fled into the street.

(BEGIN AIR FORCE VIDEO CLIP)

UNIDENTIFIED MALE: Ten seconds.

UNIDENTIFIED MALE: Roger.

(END AIR FORCE VIDEO CLIP)

MCINTYRE: The U.S. says the ground controller could see the situation before he cleared the pilot to drop a 500-pound bomb.

UNIDENTIFIED MALE: Impact!

UNIDENTIFIED MALE: Oh, dude.

(END AIR FORCE VIDEO CLIP)

MCINTYRE: Experts who've reviewed the tape at CNN's request, say whether the strike was legitimate hinges entirely on whether the controller was right.

JAMES CARAFANO, MILITARY LAW ANALYST: And the challenge there is for the guy who has his eye on the target, it's his responsibility to identify the target to the aircraft.

LT. GEN. ROBERT GARD (RET.), U.S. ARMY: My first reaction to it was, I wondered where the air controller was? And whether he could identify that as a group of insurgents? Or whether he was somewhere remote from that area, and didn't know for sure.

MCINTYRE: In an interview with Channel 4 Television in the U.K., a doctor who says he was at the hospital in Falluja in April claimed the dead were innocent civilians. At the time, fierce fighting across Falluja was filling the local hospital with numerous casualties, including women and children. And some wonder whether it's logical for insurgents to move in a large group that would make them vulnerable to air strikes.

GARD: The only questionable thing is whether or not well- disciplined and competent insurgents would pour out of a building onto a wide street, without any cover. On the other hand, we do know that there are a number of insurgents who are poorly trained, who out of anger or frustration have taken up arms. And it's quite possible that they were insurgents.

MCINTYRE (on camera): Even the most precise air strikes can result in unintended civilian casualties. But the U.S. military insists this strike was by the book, and carefully followed rules designed to minimize the risk of innocent lives.

Jamie McIntyre, CNN, the Pentagon.

(END VIDEOTAPE)

KAGAN: And this just in from the Supreme Court, the High Court announcing that it's going to look at a couple cases that will take up the constitutionality of the display of the 10 Commandments in government buildings, on government land, and government buildings, that will put the justices in the middle of a political hot potato. In the past, the justices have to refused to revisit the issues that came from a 1980 decision, that refused and banned any postings of the 10 Commandments in public school classrooms. This appeal early next year will be involving a case out of Kentucky and Texas.

So more on that later but the Supreme Court deciding to look at the issue of posting the 10 Commandments in public buildings. Actually, public government buildings we should say.

Stocks, bonds and the presidential race. We'll look at how a dip in the Dow could hurt or help the candidates.

Plus, it's the Yankees and the Red Sox again, a great rivalry. Do the Red Sox stand a chance? We'll talk about it.

And later on, celebrities and a shoe designer combine their efforts to fight breast cancer. Wait until you see what they've come up with.

(COMMERCIAL BREAK)

KAGAN: Well, while we're talking about the stock market, you know, the distance from Wall Street to 1600 Pennsylvania Avenue is not as far as you might think.

Our Allan Chernoff joins us to talk about that link between stocks and politics.

Allan, good morning.

ALLAN CHERNOFF, CNN CORRESPONDENT: Hello, Daryn. Well, the connection between the stock market and presidential elections usually is pretty simple. Typically during the year of a presidential election, the stock market rises. And in that case, the incumbent party candidate has won two thirds of the time. But this year is a different story.

(BEGIN VIDEOTAPE)

CHERNOFF (voice-over): There is no debate on one pocketbook issue. The stock market has been lousy during the Bush presidency. Since George Bush took office in January of 2001, the Dow Jones Industrial Average is down 5 percent. The NASDAQ Composite off 30 percent. Typically, the stock market rises during an election year. But so far this year, the major indices are down.

GREG VALIERRE, SCHWAB WASHINGTON RESEARCH GROUP: In the last year, the stock market has not done very well. People keep getting quarterly statements that have minus signs in front of them. And I think that doesn't help the president.

CHERNOFF: The stock market is never purely a function of a president's performance. It plays off many factors, at home and overseas, beyond a president's control.

BUSH: The stock market was heading down before Dick Cheney and I showed up in Washington.

UNIDENTIFIED FEMALE: Yes!

UNIDENTIFIED FEMALE: Yes!

BUSH: And then we had a recession, just as soon as we showed up.

(LAUGHTER)

BUSH: And then we had some corporate scandals, which affected our economy.

CHERNOFF: Those who are most heavily invested in the market are wealthy Americans, earning more than $200,000 a year; a group that can expect higher taxes if Senator Kerry were elected president. KERRY: Join me in rolling back the president's unaffordable tax cut for people earning more than $200,000 a year. That's all. Ninety-eight percent of America, I'm giving you a tax cut and I'm giving you healthcare.

CHERNOFF: One reason the stock market's poor performance may not hurt George Bush.

UNIDENTIFIED MALE: I think Bush is, you know, far better economically, having lowered taxes, lower interest rates. You see things like home ownership at an all-time high.

(END VIDEOTAPE)

CHERNOFF: Still, stock market history is not on the president's side. There have been only six times in the past century when the stock market was down for the year on a presidential Election Day. And in those situations, the incumbent party candidate won only twice: FDR in 1940, and Ronald Reagan in 1984 -- Daryn.

KAGAN: Well, with things as they are as close this year, every little bit of indication is an interesting look at. Allan, thank you for that.

An old-time rivalry and a brand new player, are we all game for this year's baseball league championship rivalries? Preview for you Red Sox and Yankees.

(COMMERCIAL BREAK)

KAGAN: Cue the volcano.

(LAUGHTER)

JACQUI JERAS, CNN METEOROLOGIST: Every time...

KAGAN: Right on time, there she goes. There she blows. Mount St. Helens emitting some more steam today. Clearly something's going on there. Just more action there at the volcano, seismic activity, however, very low. And there's more and more activity looking like there really is a lot of magma or lava that's getting ready to come. Get closer and closer to the surface.

A little baseball talk right now. For Houston, no problems. The Astros might still be soaked in champagne this morning, after celebrating their win against the Atlanta Braves on Monday night. For the first time in their 43-year history, the Astros won a post-season series. A long time coming for that. Final score 12 to 3, decisive no doubt. Houston will now face the Central Division rival St. Louis in the N.L. Championship Series, which starts tomorrow night in St. Louis.

But the big series we're talking about, the rivalry brewing between the Astros and Cardinals, is nothing, nothing on the New York Yankees and the Boston Red Sox that is ready to go to a full boil. Those teams renew their playoff battle tonight.

And here with more food for thought on the playoff action, Jim Caple senior writer for espn.com.

Jim...

JIM CAPLE, SENIOR WRITER, ESPN.COM: How are you doing?

KAGAN: ... good morning. It is an excellent morning for sports fans. Third time in six years that these two have faced off for this series. So it's not like this is something new. But it's like the stakes just keep getting higher and higher.

CAPLE: Yes. This particular series is about as big as it gets. It's so big, in fact, I think that Johnny Damon is going to comb his hair today.

(LAUGHTER)

KAGAN: OK. Let's not get out of control here. One of the things that was raising the stakes this year is A-Rod. Alex Rodriguez, Boston Red Sox this close it looked like to getting him before the season. Instead, of course, the trade going to the New York Yankees.

CAPLE: That's where the focus point of this all started, or escalated.

KAGAN: Right.

CAPLE: It was bad enough, big enough last year with Grady Little forgetting what the bullpen phone number was and leaving Pedro out there forever. And then the Red Sox, of course, well, we've got to get better. So they tried to trade for Alex Rodriguez. Well, although they even had it, they already had a short stop. But they decided we're going to try to trade for him. In typical Boston Red Sox fashion, it backfired completely because the Yankees ended up getting him. The best player in the league goes to the best team in baseball and they just get richer and richer. And it's been feeding ever since.

I was at spring training game in the first game between the Red Sox and the Yankees in spring training, Fort Myers, and there were people lined up the night before at midnight. And they were buying tickets for, you know, a couple hundred dollars they were going for from scalpers. It was just absolutely ridiculous. And now, it's finally coming down to this, which everybody was hoping for.

KAGAN: Right. So here's the thing. I mean A-Rod did not have the most stellar of regular seasons. But as he's proven already in the playoffs, he is a clutch guy. And he is the guy you want to have on your team, and the guy who could make the difference.

CAPLE: Well, he certainly had a very good series against the Twins over the weekend. He did -- everybody knows about that he can hit and all that. But what he did, he did the little things, like he stole third base after a double in Game 4. Just sort of saw that the pitcher wasn't paying enough attention to him, and then forced the Twins into a bad situation. And he makes -- he does all the little things right.

Now, whether he can continue going it; well, you know, we're going to find out. He's -- it's a big stage, and if he does well, everyone is going to love him in New York. And if he does poorly, you know, they're all going to consider him a bum. That's just the way it works.

KAGAN: It can be a tough town.

OK. Ten seconds, who wins the series? Who wins the whole thing?

CAPLE: You look at it on paper and the Red Sox should win it. They've got the better pitching. They've got the better offense. They're all lined up, but they're the Red Sox. So the Yankees will win.

KAGAN: And who takes the World Series?

CAPLE: I'm going to go with the Cardinals. I think they're the best team in baseball.

KAGAN: All right. We have you on tape saying that.

CAPLE: OK.

(LAUGHTER)

KAGAN: Jim Caple, espn.com, thanks for stopping by.

CAPLE: No problem.

KAGAN: All right. We turn back to California, the defense getting its turn today going on the offense in the Scott Peterson case. We will take you live to the courthouse.

Plus, Canada's war on terror. Why there's worry our neighbor to the north could be in al Qaeda staging ground.

(COMMERCIAL BREAK)

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