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CNN Live At Daybreak

'Hot Topics'; 'Business Buzz'

Aired April 21, 2005 - 06:29   ET

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

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


(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I felt like a little worm under the ground. I felt like a second-class citizen. I felt hopeless. You know, I felt like, who are we going to call?

(END VIDEO CLIP)

KELLY WALLACE, CNN ANCHOR: America is boiling at the border. Is it profiling in the name of homeland security?

And a Vietnam vet gets his own style of revenge on Hanoi Jane.

It is Thursday, April, 21, and you are watching DAYBREAK.

Good Thursday morning to you. From the Time Warner center in New York, I'm Kelly Wallace, in today for Carol Costello.

"Now in the News."

Escalating violence in Iraq. Police say a car bomb killed two people on the road to the Baghdad Airport today. This comes one day after more than 50 bodies were found in the Tigris River and 20 Iraqi soldiers were found shot to death.

The full Senate votes today on John Negroponte's nomination to be the nation's first director of national intelligence. He is expected to be easily confirmed and will oversee 15 intelligence agencies.

Meanwhile, the House is expected to approve an energy bill that would allow oil drilling in the Alaskan National Wildlife Refuge. Republicans say it would help wean the country off foreign oil. Democrats say it could harm the wildlife.

To Chad Myers in Atlanta.

(WEATHER REPORT)

WALLACE: Well, you know, there is always something going on in the world of politics. And to get you up to speed with what's happening in Washington, I want to check in with our political editor, John Mercurio.

John, thanks so much for joining us. It's great to talk to you.

JOHN MERCURIO, CNN POLITICAL EDITOR: Good morning, Kelly. WALLACE: Well, let's begin with issues surrounding House Majority Leader Tom DeLay and what we heard yesterday. Republicans on the House Ethics Committee saying they are willing to have an investigation surrounding issues concerning Tom DeLay, if only the Democrats would agree to the new rules. What's going on here?

MERCURIO: Right. I mean, the question of the day is sort remains, is Tom DeLay ultimately going to have to testify before the Ethics Committee. You know, I don't think we came much closer to the answer yesterday. We just saw more deadlock.

We saw Doc Hastings, as Kareen Winters (ph) reported during the last half-hour, offering to create sort of an unusual step to create a subcommittee led by Melissa Hart that would investigate the majority leader. Democrats, though, are saying, you know, that's that not the issue. That's a sideshow. That's a charade designed to sort of distract them from the bigger issue of these rules changes, which they oppose, which they weren't consulted on when they were created.

So, I don't really actually think we're that much further. I think yesterday was just sort of an exercise by both parties to sort of, you know, play defense.

WALLACE: Was it significant, though, are you picking up from sources, on the part of Republicans to say they're willing to go ahead and investigate some of the questions, including, did Majority Leader Tom DeLay take overseas trips that were financed by lobbyists? Politically significant that Republicans are saying, OK, let's look into it, essentially?

MERCURIO: Yes. Yes, it's an important point. I think it is very significant that Republicans are at least starting to show a willingness to bend on this. I mean, look at this. If you look at this whole story, Democrats really are in the cat-bird seat. They benefit politically by letting Tom DeLay sort of twist in the wind like this. And once an investigation begins, you know, you'll also see, I think, Democrats enjoying that process as well.

So, yes, I think Democrats have nothing to do. Alan Mollahan (ph) and (INAUDIBLE), who have been very vocal on this, have nothing to do except just sort of sit and wait and let the Republicans squirm.

WALLACE: Let's (INAUDIBLE) off to talk about something I know you were reporting on yesterday and this morning, Senator Jeffords, James Jeffords announcing, the senator from Vermont. This is a senator you know. In May 2001 when he said he would not be a Republican, he'd be an Independent, tipping control of the Senate temporarily in the Democrats' way. He's announcing he's not going to seek re-election.

Here's a little bit of what he said yesterday. Take a listen.

(BEGIN VIDEO CLIP)

SEN. JAMES JEFFORDS (I), VERMONT: There has been much -- there have been questions about my health, and that is a factor as well. I am feeling the aches and pains that come with when you reach 70. Welcome if you're there, and too bad if you're not yet. My memory fails me occasion. But Liz would probably argue that that has been going on for at least 50 years.

(END VIDEO CLIP)

WALLACE: John, on a serious note, are you picking up from sources some health issues concerning the senator?

MERCURIO: Yes. Unfortunately, a lot of the details are still unclear, but we at CNN has confirmed and talked to eyewitnesses on an incident. I think it was one or two incidents last month, where Senator Jeffords actually arrived at the door to the House chamber -- obviously, he's in the Senate -- expected to walk onto the House floor to do business. Obviously, he had to be told at the time that he was at the House and not the Senate and was instructed, you know, how to get back to the Senate. This is highly unusual and curious for someone who has served in the Senate as long as Senator Jeffords has.

That's sort of pointing, I think, to some confusion on his part. I've worked in the Capitol for a long time. I know it's a very confusing place. So, in some ways, I do understand it. But, you know, I think that does point to some larger questions about sort of his mental capacity at this point, which he addressed it during his remarks.

WALLACE: All right, John, we have to leave it there. We'll be watching your reporting throughout the days. John Mercurio, our political editor. Thanks so much for talking with us here on DAYBREAK.

And news now about California Governor Arnold Schwarzenegger. He is apologizing for his tough talk on border control. At a speech Tuesday, he said the border with Mexico should be closed. But now, Schwarzenegger says that's not what he meant. The governor called it a screw-up. He blames the problem on his trouble with the English language.

(BEGIN VIDEO CLIP)

GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: The bottom line is I misspoke. And I'm sorry if that, you know, offended anyone. But it was a language problem, because I meant securing our borders rather than closing our borders.

(END VIDEO CLIP)

WALLACE: And Governor Schwarzenegger adds this: He says he filmed four movies in Mexico -- excuse me -- and loves to go there on vacation.

Five Muslim Americans are taking on the Homeland Security Department, filing suit over an incident at a western New York border crossing. The plaintiffs say they were singled out and mistreated as they returned from a religious conference in Toronto last December. They were fingerprinted, searched and held for up to six-and-a-half hours. Their lawsuit claims the government violated their constitutional right to practice religion. Their lawyer says they just want to be treated fairly as American citizens.

(BEGIN VIDEO CLIP)

GALEB RIZEK, PLAINTIFF: I was born here. I know no other country but this country, you know. My parents did emigrate from Palestine, but the bottom line is I was coming home, not to a foreign country. I was coming home to my country.

SAWSAN MADDAH, PLAINTIFF: I remember when 22 years ago when a judge told -- we were swearing the allegiance to the United States of America. The judge told us, you are a U.S. citizen now. Don't let anybody treat you like a second-class citizen.

(END VIDEO CLIP)

WALLACE: Homeland security officials said earlier this month that policy changes have been implemented to make sure this type of incident doesn't happen again.

Well, the only man charged in the September 11 attacks will enter a guilty plea tomorrow. But it is not the last we'll hear of Zacarias Moussaoui.

CNN's Carol Costello is joining us now for a look at what is coming up on "AMERICAN MORNING."

What do you and Bill have today -- Carol?

CAROL COSTELLO, CNN ANCHOR: Well, Kelly, we are going to talk about Zacarias Moussaoui, because a judge says he is competent to enter a guilty plea. As you said, Moussaoui is the only person publicly charged in the United States in connection with 9/11. You may remember Moussaoui tried to enter a guilty plea three years ago, but then he changed his mind. The lawyer for his mother will be on the program. She will tell us he's only making that plea because he's lost all hope. We'll ask that lawyer whether Moussaoui could change his mind again.

And on a lighter note, "Princeton Review" releases a new list of America's best value colleges. Which schools will give your kids most bang for their buck? We'll talk to the editor about the listings; also ask him how you can save some money on your kid's college education, because, you know, it could break you.

WALLACE: I know, Carol. I think I saw that one of the best schools to the value is just $40,000 a year. You know, just a little chump change there.

COSTELLO: I know. You could buy a car for that.

WALLACE: Exactly. All right, Carol, we'll see you in about 20 minutes. Thanks so much.

News now coming out of Arkansas. Five little boys from three different families are dead after a fire at a mobile home park in the state. The mobile home the children were in was destroyed by flames, also killing the mother of one of the young boys. The parents of two of the children say they dropped off their boys for a play date about 10 minutes before the fire started.

(BEGIN VIDEO CLIP)

RACHEL WHITESIDE, TWO BOYS DIED IN FIRE: If there are any young parents out there, love every minute, every second with your child.

JOHN WHITESIDE, TWO BOYS DIED IN FIRE: You tell them every time you get a chance...

R. WHITESIDE: Every day.

J. WHITESIDE: ... I love you.

R. WHITESIDE: You love them, because it's sick, they're gone just that.

J. WHITESIDE: The last words my oldest son said to me was, "I love you more, Daddy."

R. WHITESIDE: "I love you more, Daddy. I love you more."

(END VIDEO CLIP)

WALLACE: Such a heartbreaking story for the family and their friends. Police say the five children ranged in age from 8 months to 4 years old. No word yet on what started that fire.

Coming up next on DAYBREAK, there is talk of a merger at the New York Stock Exchange. Our Carrie Lee joins us to explain what it all means.

Plus, is Major League Baseball taking any action against Gary Sheffield for that incident in Boston? We've got that for you as well.

But first, here's a look at what else is making news this Thursday morning. Don't go away. We'll be right back.

(COMMERCIAL BREAK)

WALLACE: And some great music. For you look at the international markets, the Nikkei closed down 96 points, the London FTSE up almost 4 points, and the German DAX is up nearly 8 points this hour.

It's time now for our "Business Buzz." Big changes in store for the New York Stock Exchange.

Carrie Lee is here to tell us what is going on.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: This is a very big deal, Kelly. The NYSE is merging with electronic trading firm Archipelago. And the idea here is to offer a faster electronic trading option alongside the slower but less vulnerable floor-based operation. The NYSE hopes to compete with the Nasdaq. But those busy floor traders aren't going to be going away. The deal values the NYSE at about $2 billion -- according to some estimates, $2 billion.

Also, the exchange is now going to be publicly traded. So ending its status as a not-for-profit, and that's going to subject it to greater scrutiny. Public companies, of course, have greater rules of disclosure. The NYSE has been hurt by scandals recently, including the pay package of former chairman and CEO Dick Grasso, and a recent investigation into specialists who are accused of cheating investors by trading for their own accounts first.

So, the NYSE is 212 years old. It's the world largest stock exchange, but the times, they are changing.

WALLACE: I was just going to say, clearly changing with the times.

LEE: Yes, that's right. Expanding and they're also going to be able to trade things like options and other derivatives, so also going beyond stocks.

WALLACE: All right, Carrie Lee with the "Business Buzz." Thanks so much.

This is DAYBREAK for a Thursday. We'll be right back.

(COMMERCIAL BREAK)

WALLACE: And welcome back. Your news, money, weather and sports. It's about 45 minutes after the hour. And here is what is all new this morning.

The Jessica Lunsford Act will be introduced in Congress, and a father is there to support it. The measure would require states to contact sex offenders twice a year to verify where they live. A convicted sex offender is charged in the death of the 9-year-old Florida girl.

In money news, Ford Motor Company posted a 38-percent drop in its first quarter earnings. But even with the losses, the company did better than analysts had expected, boosting Ford's shares on Wall Street by nearly 2 percent in trading.

In culture, blockbuster best-seller "The Da Vinci Code" is named Britain's book of the year. You know the conspiracy thriller about the Catholic Church has ignited a fierce religious debate around the world.

In sports, the Chicago Cubs' Nomar Garciaparra will likely undergo an MRI exam today. He injured his left groin during the third inning of last night's Cubs' win over St. Louis.

(WEATHER REPORT)

WALLACE: Hey, are you following the Gary Sheffield scuffle story?

CHAD MYERS, CNN METEOROLOGIST: Oh, sure.

WALLACE: Oh, yes.

MYERS: Yes, the one guy -- the guy there that supposedly made the swipe, he lost his season tickets, and nothing is going to happen to Gary. He has been cleared of all problems.

WALLACE: That's right. And, in fact, the baseball commissioner praising Sheffield, saying that he showed restraint. Sheffield says he's glad he could give the example of how to handle a situation without making it worse.

Although it got close there, Chad. Take a look. I mean...

MYERS: Yes, you know, I mean, if you want to hit him with that punch, then he wouldn't be so innocent there, would he? Just because he...

WALLACE: Not at all.

MYERS: Just because he missed.

WALLACE: Yes, all right, Chad.

MYERS: OK.

WALLACE: We'll talk to you in a few minutes.

It is the fear that keeps a lot of people off the rides in amusement parks, a fear of getting stuck.

This morning, CNN's Bill Hemmer will speak to a couple of young women who have firsthand knowledge of what it is like to get stranded in the sky.

Bill, it is a fear we all have when we get on those amusement park rides...

(CROSSTALK)

BILL HEMMER, CNN ANCHOR: Listen, the thrill was on in Vegas, Kelly. They're not going to forget about this for very long. A pair of young cousins on this ride. I don't know if you've seen it or not, the Stratosphere Casino in Las Vegas, they have a ride there that stretches about 1,000 feet above ground. High winds forced it to shut down, but that did not do much these two gals here on board. We'll talk about their adventure and how they got down, also what the casino will tell us about what is to blame there.

Also with us today, Kelly, Emmy award-winning comedian Dennis Miller stops by. He's in the studio. And we have a ton of things to talk about today. The new pope, "Monday Night Football, Michael Jackson, cable news, the list goes on and on for Dennis Miller. So, he'll be here a bit later. The NFL got some huge cash earlier this week. You know, Miller used to be in the booth for a season.

WALLACE: Absolutely.

HEMMER: So, we'll talk about that.

WALLACE: That's going to be an interesting interview.

HEMMER: Yes.

WALLACE: Trying to keep him in check. But you and Carol Costello will do a great job of that.

HEMMER: You got it. See you in 11 minutes, Kelly, OK?

WALLACE: All right.

HEMMER: Bye-bye.

WALLACE: Thanks so much, Bill.

And coming up next here on DAYBREAK, hear from the man who says he did what a lot of veterans would like to do: pay back Hanoi Jane.

This is DAYBREAK. We'll be right back.

(COMMERCIAL BREAK)

WALLACE: It is 52 minutes after the hour. And here is what will be making news today.

The House is set to pass an energy bill that open up Alaska's Arctic National Wildlife Refuge to oil drilling. Supporters say it would help wean the U.S. off foreign oil. Other says drilling will harm wildlife there.

Cuban President Fidel Castro is blasting European nations for not joining Cuba in calling for a United Nations investigation. Castro wants the U.N. to investigate conditions for terror suspects being held by the United States at Guantanamo Bay.

And CNN has learned from a source close to the Michael Jackson case that actor Macaulay Culkin is planning to testify on behalf of the singer. Culkin, now 24, has denied anything sexual ever took place between the two.

A man in Kansas City, Missouri, is facing charges after spitting on actress and author Jane Fonda. Fonda was signing copies of her memoir when the man spit tobacco juice on her after waiting in line with other customers. He told reporters he was angry with Fonda for opposing the Vietnam War.

(BEGIN VIDEO CLIP)

MIKE SMITH, VIETNAM VETERAN: I had an opportunity to do something that a lot of Vietnam vets want to do. I did it for them.

(END VIDEO CLIP)

WALLACE: Fonda says she won't press charges and went on to sign more books. The man faces disorderly conduct charges. And, Chad, Fonda also said despite that, her visit to Kansas City, Missouri, was wonderful.

MYERS: Well, there you go.

WALLACE: There you go.

MYERS: We have to get the mug question. We just got a news story in, so I'm going to get through this, so we can get back to you, Kelly, on this.

Here are the questions from yesterday and the winner of the mug. The question. What two airlines are in advanced merger talks? That was America West and US Airways. And what fast food restaurant is going retro? And that is Kentucky Fried Chicken or KFC.

The winner, Paul Walker from Palm Bay, Florida. Paul, you are the winner of today's coffee mug from yesterday's questions.

Now the questions for today. A problem with brakes is keeping Amtrak's Acela trains out of service until summer. How many trains are in the Acela fleet? And President Bush has just signed a bankruptcy bill into law. When will the new rules take effect?

Go to CNN.com/daybreak and give us your answers there. We'll announce the winner tomorrow.

WALLACE: All right, Chad, thanks. This is DAYBREAK. We'll be right back.

(COMMERCIAL BREAK)

WALLACE: And this just in to CNN. The Pentagon says a commercial helicopter that crashed north of Baghdad was shot down. Nine people are believed to have been killed. We'll bring you more details as we get them. Certainly more details right after this show on "AMERICAN MORNING."

Other stories "Now in the News."

Five children from three different families have died in a mobile home fire in Humphrey, Arkansas. A woman who also died was baby sitting the boys. School officials canceled classes for today.

The House is expected to approve an energy bill that would allow oil drilling in the Alaskan National Wildlife Refuge. Republicans say it would help wean the country off foreign oil. Democrats say it could harm the wildlife.

A Senate subcommittee will debate the president's plans to eliminate funding for Amtrak. The president wants the rail system privatized. This comes as the Acela trains are down with brake problems. Amtrak now gets about $1.2 billion.

(WEATHER REPORT)

WALLACE: Chad, great to be with you, as always.

MYERS: Are you back tomorrow?

WALLACE: Carol Costello is back tomorrow.

MYERS: Oh! Well, it's great to have you then.

WALLACE: All right. We'll see you again very soon.

MYERS: See you later. Thank you.

WALLACE: OK. From the Time Warner center in New York, I'm Kelly Wallace, in today for Carol 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 April 21, 2005 - 06:29   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I felt like a little worm under the ground. I felt like a second-class citizen. I felt hopeless. You know, I felt like, who are we going to call?

(END VIDEO CLIP)

KELLY WALLACE, CNN ANCHOR: America is boiling at the border. Is it profiling in the name of homeland security?

And a Vietnam vet gets his own style of revenge on Hanoi Jane.

It is Thursday, April, 21, and you are watching DAYBREAK.

Good Thursday morning to you. From the Time Warner center in New York, I'm Kelly Wallace, in today for Carol Costello.

"Now in the News."

Escalating violence in Iraq. Police say a car bomb killed two people on the road to the Baghdad Airport today. This comes one day after more than 50 bodies were found in the Tigris River and 20 Iraqi soldiers were found shot to death.

The full Senate votes today on John Negroponte's nomination to be the nation's first director of national intelligence. He is expected to be easily confirmed and will oversee 15 intelligence agencies.

Meanwhile, the House is expected to approve an energy bill that would allow oil drilling in the Alaskan National Wildlife Refuge. Republicans say it would help wean the country off foreign oil. Democrats say it could harm the wildlife.

To Chad Myers in Atlanta.

(WEATHER REPORT)

WALLACE: Well, you know, there is always something going on in the world of politics. And to get you up to speed with what's happening in Washington, I want to check in with our political editor, John Mercurio.

John, thanks so much for joining us. It's great to talk to you.

JOHN MERCURIO, CNN POLITICAL EDITOR: Good morning, Kelly. WALLACE: Well, let's begin with issues surrounding House Majority Leader Tom DeLay and what we heard yesterday. Republicans on the House Ethics Committee saying they are willing to have an investigation surrounding issues concerning Tom DeLay, if only the Democrats would agree to the new rules. What's going on here?

MERCURIO: Right. I mean, the question of the day is sort remains, is Tom DeLay ultimately going to have to testify before the Ethics Committee. You know, I don't think we came much closer to the answer yesterday. We just saw more deadlock.

We saw Doc Hastings, as Kareen Winters (ph) reported during the last half-hour, offering to create sort of an unusual step to create a subcommittee led by Melissa Hart that would investigate the majority leader. Democrats, though, are saying, you know, that's that not the issue. That's a sideshow. That's a charade designed to sort of distract them from the bigger issue of these rules changes, which they oppose, which they weren't consulted on when they were created.

So, I don't really actually think we're that much further. I think yesterday was just sort of an exercise by both parties to sort of, you know, play defense.

WALLACE: Was it significant, though, are you picking up from sources, on the part of Republicans to say they're willing to go ahead and investigate some of the questions, including, did Majority Leader Tom DeLay take overseas trips that were financed by lobbyists? Politically significant that Republicans are saying, OK, let's look into it, essentially?

MERCURIO: Yes. Yes, it's an important point. I think it is very significant that Republicans are at least starting to show a willingness to bend on this. I mean, look at this. If you look at this whole story, Democrats really are in the cat-bird seat. They benefit politically by letting Tom DeLay sort of twist in the wind like this. And once an investigation begins, you know, you'll also see, I think, Democrats enjoying that process as well.

So, yes, I think Democrats have nothing to do. Alan Mollahan (ph) and (INAUDIBLE), who have been very vocal on this, have nothing to do except just sort of sit and wait and let the Republicans squirm.

WALLACE: Let's (INAUDIBLE) off to talk about something I know you were reporting on yesterday and this morning, Senator Jeffords, James Jeffords announcing, the senator from Vermont. This is a senator you know. In May 2001 when he said he would not be a Republican, he'd be an Independent, tipping control of the Senate temporarily in the Democrats' way. He's announcing he's not going to seek re-election.

Here's a little bit of what he said yesterday. Take a listen.

(BEGIN VIDEO CLIP)

SEN. JAMES JEFFORDS (I), VERMONT: There has been much -- there have been questions about my health, and that is a factor as well. I am feeling the aches and pains that come with when you reach 70. Welcome if you're there, and too bad if you're not yet. My memory fails me occasion. But Liz would probably argue that that has been going on for at least 50 years.

(END VIDEO CLIP)

WALLACE: John, on a serious note, are you picking up from sources some health issues concerning the senator?

MERCURIO: Yes. Unfortunately, a lot of the details are still unclear, but we at CNN has confirmed and talked to eyewitnesses on an incident. I think it was one or two incidents last month, where Senator Jeffords actually arrived at the door to the House chamber -- obviously, he's in the Senate -- expected to walk onto the House floor to do business. Obviously, he had to be told at the time that he was at the House and not the Senate and was instructed, you know, how to get back to the Senate. This is highly unusual and curious for someone who has served in the Senate as long as Senator Jeffords has.

That's sort of pointing, I think, to some confusion on his part. I've worked in the Capitol for a long time. I know it's a very confusing place. So, in some ways, I do understand it. But, you know, I think that does point to some larger questions about sort of his mental capacity at this point, which he addressed it during his remarks.

WALLACE: All right, John, we have to leave it there. We'll be watching your reporting throughout the days. John Mercurio, our political editor. Thanks so much for talking with us here on DAYBREAK.

And news now about California Governor Arnold Schwarzenegger. He is apologizing for his tough talk on border control. At a speech Tuesday, he said the border with Mexico should be closed. But now, Schwarzenegger says that's not what he meant. The governor called it a screw-up. He blames the problem on his trouble with the English language.

(BEGIN VIDEO CLIP)

GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: The bottom line is I misspoke. And I'm sorry if that, you know, offended anyone. But it was a language problem, because I meant securing our borders rather than closing our borders.

(END VIDEO CLIP)

WALLACE: And Governor Schwarzenegger adds this: He says he filmed four movies in Mexico -- excuse me -- and loves to go there on vacation.

Five Muslim Americans are taking on the Homeland Security Department, filing suit over an incident at a western New York border crossing. The plaintiffs say they were singled out and mistreated as they returned from a religious conference in Toronto last December. They were fingerprinted, searched and held for up to six-and-a-half hours. Their lawsuit claims the government violated their constitutional right to practice religion. Their lawyer says they just want to be treated fairly as American citizens.

(BEGIN VIDEO CLIP)

GALEB RIZEK, PLAINTIFF: I was born here. I know no other country but this country, you know. My parents did emigrate from Palestine, but the bottom line is I was coming home, not to a foreign country. I was coming home to my country.

SAWSAN MADDAH, PLAINTIFF: I remember when 22 years ago when a judge told -- we were swearing the allegiance to the United States of America. The judge told us, you are a U.S. citizen now. Don't let anybody treat you like a second-class citizen.

(END VIDEO CLIP)

WALLACE: Homeland security officials said earlier this month that policy changes have been implemented to make sure this type of incident doesn't happen again.

Well, the only man charged in the September 11 attacks will enter a guilty plea tomorrow. But it is not the last we'll hear of Zacarias Moussaoui.

CNN's Carol Costello is joining us now for a look at what is coming up on "AMERICAN MORNING."

What do you and Bill have today -- Carol?

CAROL COSTELLO, CNN ANCHOR: Well, Kelly, we are going to talk about Zacarias Moussaoui, because a judge says he is competent to enter a guilty plea. As you said, Moussaoui is the only person publicly charged in the United States in connection with 9/11. You may remember Moussaoui tried to enter a guilty plea three years ago, but then he changed his mind. The lawyer for his mother will be on the program. She will tell us he's only making that plea because he's lost all hope. We'll ask that lawyer whether Moussaoui could change his mind again.

And on a lighter note, "Princeton Review" releases a new list of America's best value colleges. Which schools will give your kids most bang for their buck? We'll talk to the editor about the listings; also ask him how you can save some money on your kid's college education, because, you know, it could break you.

WALLACE: I know, Carol. I think I saw that one of the best schools to the value is just $40,000 a year. You know, just a little chump change there.

COSTELLO: I know. You could buy a car for that.

WALLACE: Exactly. All right, Carol, we'll see you in about 20 minutes. Thanks so much.

News now coming out of Arkansas. Five little boys from three different families are dead after a fire at a mobile home park in the state. The mobile home the children were in was destroyed by flames, also killing the mother of one of the young boys. The parents of two of the children say they dropped off their boys for a play date about 10 minutes before the fire started.

(BEGIN VIDEO CLIP)

RACHEL WHITESIDE, TWO BOYS DIED IN FIRE: If there are any young parents out there, love every minute, every second with your child.

JOHN WHITESIDE, TWO BOYS DIED IN FIRE: You tell them every time you get a chance...

R. WHITESIDE: Every day.

J. WHITESIDE: ... I love you.

R. WHITESIDE: You love them, because it's sick, they're gone just that.

J. WHITESIDE: The last words my oldest son said to me was, "I love you more, Daddy."

R. WHITESIDE: "I love you more, Daddy. I love you more."

(END VIDEO CLIP)

WALLACE: Such a heartbreaking story for the family and their friends. Police say the five children ranged in age from 8 months to 4 years old. No word yet on what started that fire.

Coming up next on DAYBREAK, there is talk of a merger at the New York Stock Exchange. Our Carrie Lee joins us to explain what it all means.

Plus, is Major League Baseball taking any action against Gary Sheffield for that incident in Boston? We've got that for you as well.

But first, here's a look at what else is making news this Thursday morning. Don't go away. We'll be right back.

(COMMERCIAL BREAK)

WALLACE: And some great music. For you look at the international markets, the Nikkei closed down 96 points, the London FTSE up almost 4 points, and the German DAX is up nearly 8 points this hour.

It's time now for our "Business Buzz." Big changes in store for the New York Stock Exchange.

Carrie Lee is here to tell us what is going on.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: This is a very big deal, Kelly. The NYSE is merging with electronic trading firm Archipelago. And the idea here is to offer a faster electronic trading option alongside the slower but less vulnerable floor-based operation. The NYSE hopes to compete with the Nasdaq. But those busy floor traders aren't going to be going away. The deal values the NYSE at about $2 billion -- according to some estimates, $2 billion.

Also, the exchange is now going to be publicly traded. So ending its status as a not-for-profit, and that's going to subject it to greater scrutiny. Public companies, of course, have greater rules of disclosure. The NYSE has been hurt by scandals recently, including the pay package of former chairman and CEO Dick Grasso, and a recent investigation into specialists who are accused of cheating investors by trading for their own accounts first.

So, the NYSE is 212 years old. It's the world largest stock exchange, but the times, they are changing.

WALLACE: I was just going to say, clearly changing with the times.

LEE: Yes, that's right. Expanding and they're also going to be able to trade things like options and other derivatives, so also going beyond stocks.

WALLACE: All right, Carrie Lee with the "Business Buzz." Thanks so much.

This is DAYBREAK for a Thursday. We'll be right back.

(COMMERCIAL BREAK)

WALLACE: And welcome back. Your news, money, weather and sports. It's about 45 minutes after the hour. And here is what is all new this morning.

The Jessica Lunsford Act will be introduced in Congress, and a father is there to support it. The measure would require states to contact sex offenders twice a year to verify where they live. A convicted sex offender is charged in the death of the 9-year-old Florida girl.

In money news, Ford Motor Company posted a 38-percent drop in its first quarter earnings. But even with the losses, the company did better than analysts had expected, boosting Ford's shares on Wall Street by nearly 2 percent in trading.

In culture, blockbuster best-seller "The Da Vinci Code" is named Britain's book of the year. You know the conspiracy thriller about the Catholic Church has ignited a fierce religious debate around the world.

In sports, the Chicago Cubs' Nomar Garciaparra will likely undergo an MRI exam today. He injured his left groin during the third inning of last night's Cubs' win over St. Louis.

(WEATHER REPORT)

WALLACE: Hey, are you following the Gary Sheffield scuffle story?

CHAD MYERS, CNN METEOROLOGIST: Oh, sure.

WALLACE: Oh, yes.

MYERS: Yes, the one guy -- the guy there that supposedly made the swipe, he lost his season tickets, and nothing is going to happen to Gary. He has been cleared of all problems.

WALLACE: That's right. And, in fact, the baseball commissioner praising Sheffield, saying that he showed restraint. Sheffield says he's glad he could give the example of how to handle a situation without making it worse.

Although it got close there, Chad. Take a look. I mean...

MYERS: Yes, you know, I mean, if you want to hit him with that punch, then he wouldn't be so innocent there, would he? Just because he...

WALLACE: Not at all.

MYERS: Just because he missed.

WALLACE: Yes, all right, Chad.

MYERS: OK.

WALLACE: We'll talk to you in a few minutes.

It is the fear that keeps a lot of people off the rides in amusement parks, a fear of getting stuck.

This morning, CNN's Bill Hemmer will speak to a couple of young women who have firsthand knowledge of what it is like to get stranded in the sky.

Bill, it is a fear we all have when we get on those amusement park rides...

(CROSSTALK)

BILL HEMMER, CNN ANCHOR: Listen, the thrill was on in Vegas, Kelly. They're not going to forget about this for very long. A pair of young cousins on this ride. I don't know if you've seen it or not, the Stratosphere Casino in Las Vegas, they have a ride there that stretches about 1,000 feet above ground. High winds forced it to shut down, but that did not do much these two gals here on board. We'll talk about their adventure and how they got down, also what the casino will tell us about what is to blame there.

Also with us today, Kelly, Emmy award-winning comedian Dennis Miller stops by. He's in the studio. And we have a ton of things to talk about today. The new pope, "Monday Night Football, Michael Jackson, cable news, the list goes on and on for Dennis Miller. So, he'll be here a bit later. The NFL got some huge cash earlier this week. You know, Miller used to be in the booth for a season.

WALLACE: Absolutely.

HEMMER: So, we'll talk about that.

WALLACE: That's going to be an interesting interview.

HEMMER: Yes.

WALLACE: Trying to keep him in check. But you and Carol Costello will do a great job of that.

HEMMER: You got it. See you in 11 minutes, Kelly, OK?

WALLACE: All right.

HEMMER: Bye-bye.

WALLACE: Thanks so much, Bill.

And coming up next here on DAYBREAK, hear from the man who says he did what a lot of veterans would like to do: pay back Hanoi Jane.

This is DAYBREAK. We'll be right back.

(COMMERCIAL BREAK)

WALLACE: It is 52 minutes after the hour. And here is what will be making news today.

The House is set to pass an energy bill that open up Alaska's Arctic National Wildlife Refuge to oil drilling. Supporters say it would help wean the U.S. off foreign oil. Other says drilling will harm wildlife there.

Cuban President Fidel Castro is blasting European nations for not joining Cuba in calling for a United Nations investigation. Castro wants the U.N. to investigate conditions for terror suspects being held by the United States at Guantanamo Bay.

And CNN has learned from a source close to the Michael Jackson case that actor Macaulay Culkin is planning to testify on behalf of the singer. Culkin, now 24, has denied anything sexual ever took place between the two.

A man in Kansas City, Missouri, is facing charges after spitting on actress and author Jane Fonda. Fonda was signing copies of her memoir when the man spit tobacco juice on her after waiting in line with other customers. He told reporters he was angry with Fonda for opposing the Vietnam War.

(BEGIN VIDEO CLIP)

MIKE SMITH, VIETNAM VETERAN: I had an opportunity to do something that a lot of Vietnam vets want to do. I did it for them.

(END VIDEO CLIP)

WALLACE: Fonda says she won't press charges and went on to sign more books. The man faces disorderly conduct charges. And, Chad, Fonda also said despite that, her visit to Kansas City, Missouri, was wonderful.

MYERS: Well, there you go.

WALLACE: There you go.

MYERS: We have to get the mug question. We just got a news story in, so I'm going to get through this, so we can get back to you, Kelly, on this.

Here are the questions from yesterday and the winner of the mug. The question. What two airlines are in advanced merger talks? That was America West and US Airways. And what fast food restaurant is going retro? And that is Kentucky Fried Chicken or KFC.

The winner, Paul Walker from Palm Bay, Florida. Paul, you are the winner of today's coffee mug from yesterday's questions.

Now the questions for today. A problem with brakes is keeping Amtrak's Acela trains out of service until summer. How many trains are in the Acela fleet? And President Bush has just signed a bankruptcy bill into law. When will the new rules take effect?

Go to CNN.com/daybreak and give us your answers there. We'll announce the winner tomorrow.

WALLACE: All right, Chad, thanks. This is DAYBREAK. We'll be right back.

(COMMERCIAL BREAK)

WALLACE: And this just in to CNN. The Pentagon says a commercial helicopter that crashed north of Baghdad was shot down. Nine people are believed to have been killed. We'll bring you more details as we get them. Certainly more details right after this show on "AMERICAN MORNING."

Other stories "Now in the News."

Five children from three different families have died in a mobile home fire in Humphrey, Arkansas. A woman who also died was baby sitting the boys. School officials canceled classes for today.

The House is expected to approve an energy bill that would allow oil drilling in the Alaskan National Wildlife Refuge. Republicans say it would help wean the country off foreign oil. Democrats say it could harm the wildlife.

A Senate subcommittee will debate the president's plans to eliminate funding for Amtrak. The president wants the rail system privatized. This comes as the Acela trains are down with brake problems. Amtrak now gets about $1.2 billion.

(WEATHER REPORT)

WALLACE: Chad, great to be with you, as always.

MYERS: Are you back tomorrow?

WALLACE: Carol Costello is back tomorrow.

MYERS: Oh! Well, it's great to have you then.

WALLACE: All right. We'll see you again very soon.

MYERS: See you later. Thank you.

WALLACE: OK. From the Time Warner center in New York, I'm Kelly Wallace, in today for Carol Costello. "AMERICAN MORNING" starts right now.

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