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CNN Live At Daybreak
Two Teens Held In Beating Death Homeless Man in Florida; Big Money for MBA Grads; Hurricane Update
Aired May 31, 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.
(WEATHER REPORT)
CAROL COSTELLO, CNN ANCHOR: Investigators in Florida say more arrests could be made in the killing of a homeless man. Police say two teenage boys confessed to beating the man to death because they were bored and wanted to have some fun. The boys face murder charges.
More details now from Paul Miliken (ph) of Central Florida News 13 in Volusia County, Florida.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE (voice over): Appearing in court for the first time, Jeffery Spurgeon says just two words:
UNIDENTIFIED MALE: Appoint one.
UNIDENTIFIED MALE: "Appoint one," asking for a public defender. The 18-year-old is accused of beating a homeless man to death in this wooded area near Holly Hill.
Investigators found the body Saturday. By Sunday, Spurgeon and a 14-year-old boy had been arrested.
VICKI SPURGEON, MOTHER: This is not something he would do.
UNIDENTIFIED MALE: Spurgeon's mother, Vicki, watched her son in court, convinced he's taking the blame for his friends.
SPURGEON: And my son will not tell, and he'll say that he did it all. He's did it before. He's took the blame several times for his friends.
UNIDENTIFIED MALE: Spurgeon's mother says she thinks several neighborhood teens were involved in the beating, and deputies have confirmed more arrests are possible.
It was Spurgeon's mother who called authorities about the body, but she says it was not done to put her son behind bars.
SPURGEON: It was a rumor that there was a body, a homeless man, laying in the woods on 13th and Novis (ph). So, I called in as an anonymous tip, and said that I heard this, and I wanted to know if it was true.
UNIDENTIFIED MALE: Some of you may be released today. UNIDENTIFIED MALE: Jeffery Spurgeon is not released. He's being held in jail with no bond. To deputies, he's a confessed killer, who says he beat a man for fun. To his parents, he's a boy who fell in with the wrong crowd.
In Volusia County, Paul Miliken (ph), Central Florida News 13.
(END VIDEOTAPE)
COSTELLO: Police in Bellefontaine, Ohio, say the motive behind the deadly shootings there may never be known. Six people were killed in the suspected murder-suicide, and police believe 18-year-old Scott Moody was responsible for the shootings. Moody and one of his victims were scheduled to graduate from high school later that same day. His 15-year-old sister was the only survivor. She called her step-sister, who discovered the bodies and called police.
(BEGIN VIDEO CLIP)
Oh, my god! God! The son is...
UNIDENTIFIED FEMALE: What?
UNIDENTIFIED FEMALE: Oh, my god! I found the son, too. He's been killed.
UNIDENTIFIED FEMALE: What's the matter?
UNIDENTIFIED FEMALE: His girlfriend. Oh, my god!
UNIDENTIFIED FEMALE: What's going on, honey?
UNIDENTIFIED FEMALE: The son and the girlfriend are beat up, too.
UNIDENTIFIED FEMALE: I need the address, honey.
UNIDENTIFIED FEMALE: She's the only one that's awake.
UNIDENTIFIED FEMALE: She's the -- there's only one awake?
UNIDENTIFIED FEMALE: Yes.
UNIDENTIFIED FEMALE: How many people -- how many people have been beat up?
UNIDENTIFIED FEMALE: Four. Four. (INAUDIBLE) there's five. There's another one. Oh, my god! There's one in the living room, too.
UNIDENTIFIED FEMALE: OK. What -- what's going on right now, honey?
UNIDENTIFIED FEMALE: She's telling me that there's five dead. There's another one on the couch.
(END VIDEO CLIP)
COSTELLO: Stacy Moody, the girl who was injured, remains in critical condition. She had been shot in the neck.
Crane climbing seems to be the new thing to do in Atlanta's trendy Buckhead neighborhood. On Monday, Florida murder suspect Carl Roland made his first court appearance in Atlanta for a bond hearing. And he was denied bond. Today, Roland is expected back in court for a possible extradition to Pinellas County, Florida, where he is suspected of murder. But that was only after his 50-hour-plus standoff on the crane ended after midnight on Saturday, when he was subdued by police using a taser.
Well, flash forward to this morning when this man decided to take a stroll. After a few hours of talking on his cell phone, smoking some cigarettes and garnering more attention from gawkers, he decided it wasn't worth staying up there any longer. And as you can see, he climbed on down.
After two months of testimony, the Michael Jackson trial is finally winding down. "AMERICAN MORNING" followed the legal maneuvers.
Bill Hemmer is here with a preview.
Good morning -- Bill.
BILL HEMMER, CNN ANCHOR: Hey, Carol, good morning to you.
Full steam ahead for that case in California, Michael Jackson's case. Closing arguments, we expect, are to begin tomorrow, on Wednesday. So, what does each side need to do? Jeff Toobin is going to be out there in the courtroom. We are going to have him today in the studio live, and we'll get Jeff's take on what the defense has to do and what the prosecution has to do at this point.
Also, significant news this morning on how big tobacco may have targeted women. A new study based on an internal memo says it went far beyond just aggressive advertising, the most revealing bit of information they found in that study. And we'll talk with the study's head about that coming up in a moment here. It goes beyond marketing, so the study claims, Carol. So, we'll fill you in on all of that and what's happening, in about 25 minutes from now on a Tuesday edition.
Carol -- we'll see you then.
COSTELLO: All right, we'll be here. Thank you, Bill.
HEMMER: OK.
COSTELLO: In Iraq, U.S. and Iraqi forces are surrounding Baghdad in a search for terrorists. Operation Lightning is a massive crackdown on Baghdad-based insurgents. Up to 40,000 Iraqi troops and 10,000 Americans make up the biggest security operation since the fall of Saddam Hussein. Four U.S. Air Force personnel and one Iraqi airman are dead, following an Iraqi Air Force plane crash. According to a U.S. military statement, the plane went down Monday in Iraq's eastern Diyala province. The identities of those on board have yet to be released.
Reputed terrorist mastermind Abu Musab al-Zarqawi claims to still be commanding his al Qaeda followers in Iraq. An audiotape purporting to be from Zarqawi downplays the conflicting reports on his health. The message has yet to be authenticated.
Still to come on DAYBREAK, the early word is in on this year's hurricane season. We'll find out who is most likely to get hit and how many times.
Also ahead, good times are coming for MBA grads, at least if you ask them. We'll talk about what may be in store for the country's business brains.
But first, here's a look at what else is making news this Tuesday morning.
(COMMERCIAL BREAK)
COSTELLO: We've been talking about the high demand for MBA graduates. Here's a look at just how the tide has turned. Right now, 50 percent of grads-to-be have job offers. Last year at this time it was 42 percent. Expected starting salaries this year are more than $84,000. That's up from about $76,000 a year ago.
Joining us live from Chicago, John Challenger, employment research expert and CEO of the outplacement firm of Challenger, Gray and Christmas.
Good morning.
JOHN CHALLENGER, CHALLENGER, GRAY & CHRISTMAS: Good morning, Carol.
COSTELLO: So, why the increase?
CHALLENGER: Companies have been very slow about hiring in the last three years. Now, they're back to filling their pipeline. You can only do that for so long before it begins to hurt your company. So, they're hiring more MBA grads this year than we've seen in some time.
COSTELLO: Does it matter where you get your MBA? We have a graphic here that shows if you get an MBA from Harvard, for example, you'll make $110,000 a year. And that's pretty good for your first year of work. If you go down to the Wharton School of Business, 105,000. Why the disparity there? They're all good schools.
CHALLENGER: Well, certainly those top schools, you know, bring a premium. Companies feel like they're getting the best talent in the country. But all MBAs are good, especially if you're in the top quarter of you class. That suggests that you came in, worked hard, and you're going to bring that same kind of work ethic to your company.
COSTELLO: OK, John. We've been soliciting e-mails this morning from college graduates, who really paint a pretty depressing picture. I'm going to read you portions of some.
This is from Shelly. She says: "I always assumed I would easily find a job upon graduation. But it turns out a bachelor's degree isn't as impressive as it once was."
Is she right?
CHALLENGER: Well, certainly as more and more people do get graduate degrees, there is more expectation of that. Some companies now go straight to graduate school. But a college degree is still a very good thing. We're seeing hiring up for college grads this year about 13 percent from last year also.
COSTELLO: So, have hope, Shelly.
This one is from Annik (ph) from Charlottesville, Virginia. She says, "While my parents graciously paid for four years of out-of-state tuition at UVA, they seem less willing to cover the costs of graduate school."
It still cost a lot of money, especially to go to those good schools. And if you're going to get good grades, you kind of have to have help along the way in paying some of that education.
CHALLENGER: Well, certainly a lot of students do come out with large loans to pay off. Maybe those parents should be encouraging that child to go out and get the degree, but pay for it back over time, because it really is very worthwhile. The average salary coming out of college is about 35 to 40. This survey suggests almost double for MBA grads. You can make that money back pretty quickly.
COSTELLO: So, is it worthy when you're planning for your child's education to figure in two more years of college?
CHALLENGER: You know, it really is. I'm telling my children my parents said, you've got to get a college degree. I'm telling all of my children you've got to get a college degree. Today, in today's market, every study shows that over a lifetime of earnings, that graduate degree is very valuable. And unemployment for graduate school students right now is under 3 percent.
COSTELLO: OK. So, for all of the students who just graduated from college e-mailing us this morning -- and we've had hundreds -- are saying I just can't find a job. I'm going to have to go home and live with mom and dad. Do you have a message for them?
CHALLENGER: Well, when you get home, join lots of organizations. Get engaged in your community, not just, you know, in one area, but many. Go out and see the friends of your parents and talk with people. You can't find your job just by sitting on the Internet. It's a people process.
COSTELLO: Network, network, network.
CHALLENGER: It is. And you can find a job. I mean, the market is not that bad. It always feels bad until you find the job, but you only need one offer, a good one, and then you're on. So, everything is rejection until that last one.
COSTELLO: Oh, you know, you've got that right, because, you know, I majored in telecommunications. Everybody said you will never find a job. Never, never, never. Are you crazy? But you do if you persevere.
CHALLENGER: Exactly.
COSTELLO: John Challenger, thanks for joining us this morning.
CHALLENGER: Thanks, Carol.
COSTELLO: A story out of California about some MBA applicants gone wrong. Stanford University has rejected applicants who tried to hack into the school's computers. You may remember this incident. Officials there say 41 applicants to the graduate school of business were trying to access an admissions' Web site early this year. They were trying learn their fate ahead of schedule. It turns out that they sealed their fate instead.
Your news, money, weather and sports. It is 6:44 Eastern. Here's what's all new this morning.
An Iraqi-led crackdown on insurgents in and around Baghdad is off to a very encouraging start, so says the chairman of the U.S. Joint Chiefs of Staff. The crackdown is called Operation Lightning.
In money news, good news if you're planning a summer vacation in Europe. The euro has fallen to a seven-month low against the dollar. The fall comes on the heels of France's no-vote on the European Union constitution.
In culture, Miss Canada is the new Miss Universe. Twenty-three- year-old brunette Natalie Glebova won the crown in Thailand. She beat out 80 of the world's most beautiful women. And an estimated one billion people in 170 countries were watching.
In sports, rookie driver Danica Patrick is being credited with bringing viewers to this year's Indianapolis 500. The TV ratings for the race jumped 40 percent over last year and were the highest since 1997. Patrick, by the way, earned more than $378,000 for her fourth place finish.
To the forecast center and Chad.
(WEATHER REPORT)
COSTELLO: That's a look at the latest headlines for you this morning. It seems like almost every day there's a horrifying story in the news involving a child, and that's got plenty of parents really scared. "AMERICAN MORNING" is talking about this today. Soledad is here with a preview.
Good morning.
SOLEDAD O'BRIEN, CNN ANCHOR: Hey, Carol, good morning to you.
And you're absolutely right. So many headlines about missing or abducted children. And if you're a parent, you can't figure out exactly how you should protect your kids. So, child victims' advocate John Walsh is teaming up with Baby Einstein author and producer Julie Clark, and they've created this video series designed to teach kids how they can resist abductors.
Of course, you know, we've all discovered that telling your kid to avoid strangers and don't talk to strangers is very confusing for little kids. So, Walsh and Clark are going to join us live this morning to talk about this new child safety project. That's ahead.
Also this morning, Carol, 20 years after Live Aid, Sir Bob Geldof is at it once again. This morning, he's announcing a follow-up to the global charity concert. We're going to talk to one of the performers who has been lined up for the show, Dave Matthews.
That's all ahead this morning on "AMERICAN MORNING."
Back to you.
COSTELLO: I thought you had one of the Spice Girls.
O'BRIEN: You know, I heard so not in the concert.
COSTELLO: They're not going to be in the concert?
O'BRIEN: No. I heard they've been dissed in a big way, because some other people don't think they're real performers.
COSTELLO: Unbelievable scandal!
O'BRIEN: I'm devastated actually.
COSTELLO: Me too. I really wanted to see Scary Spice again. Thanks, Soledad.
Still to come on DAYBREAK, time to think about battening down the hatches. More predictions are in for this year's hurricane season. Chad will help us sort through it all.
More news in a moment. But first, a look at some -- actually, let's just say happy birthday and make it simple.
(COMMERCIAL BREAK)
COSTELLO: It's 6:51 Eastern. Here is what will be making news today.
Peru's little mermaid will undergo surgery today to begin repairing her rare birth defect. The baby was born with legs fused from her thighs to her ankles. Doctors say it could take 15 years of surgery.
Jurors in the Michael Jackson case will have the day off. Instead, attorneys from both sides will argue over what instructions the jury should receive before beginning deliberations. Closing arguments could begin tomorrow.
In Washington state, Spokane city council members are expected to vote today to demand the mayor resign. Mayor Jim West is accused of misusing his office by offering jobs to men he met in a gay online chat room.
And Paris Hilton is engaged. Her fiance is named none other than Paris. Paris Latsis is a Greek shipping heir; Hilton a hotel heiress. Hilton's spokesman says the couple has been dating for about eight months. No wedding date has been set for Paris and Paris.
Forecasters are predicting -- I know, that's so weird.
CHAD MYERS, CNN METEOROLOGIST: Well...
(CROSSTALK)
COSTELLO: Can you imagine the conversation? Paris? OK, Paris.
MYERS: Where did you get married? In Paris at the Hilton.
COSTELLO: Anyway, we have to talk about the hurricane season, because yet another is out. So, explain this to us.
MYERS: Dr. Gray, he puts out a number of forecasts per year. His first one was in December. And that forecast actually was a lot lower than what the new one he just put out. In December, he said 11 storms. Now he's saying 15.
Back to hurricanes, how many he's going to see. He thought maybe six. Now he says eight. Major hurricanes, he said three. Now he says four.
Now, last year we had six major hurricanes. And there you see the averages, only 9.6 named stores on average. A warmer Atlantic Ocean and no El Nino are going to increase the number for this year.
The map of the East Coast does show that the chance of a major hurricane hitting anywhere from Miami right on up through the Northeast is now 59 percent. That's about 150 percent of normal. And 44 percent down for the Gulf Coast, the normal chances there are about 30 percent.
So, the numbers are going up, because the land and the water and the lack of sheer and the warm water are all getting these numbers up and up and up. And he's going to have another update for you. In about a month-and-a-half he'll do that again -- Carol.
COSTELLO: OK. Well, let's talk about something good then. How about a DAYBREAK coffee mug?
MYERS: Are we giving away a mug?
COSTELLO: I think we are.
MYERS: Wow! Here we go. The one that we had here is gone, so I can't give you this one. But we've got another one somewhere. Here are the...
COSTELLO: Here, I have one in New York.
MYERS: Oh, all right. We'll ship you that one.
Here are the questions from yesterday. How much is FedEx going to start charging for delivery confirmation? And that was a buck-and- a-half. And what city has the roughest roads? Congratulations, Kansas City, you have the, I guess, dubious honors there.
And the winner, Michele Hayes from Ballston Spa, New York, a DAYBREAK coffee mug. Well, you might as well send it from there, Carol, because it will be quicker, and you won't have to have delivery confirmation. You can save a buck-and-a-half.
Here are your questions...
COSTELLO: Lucky Michele.
MYERS: Here are your questions for today. The U.S. claims Airbus got illegal subsidies from what organization or...
COSTELLO: Company.
MYERS: You kind of get it. And in 2004, what's the percentage of MBA students surveyed that job offers before graduation? Those are the MBA guys making big money.
Go to CNN.com/daybreak, and there's a little link there. You can send your answers to us -- Carol.
COSTELLO: Good enough. When we come back, more headlines and a look at your travel forecast. You are watching DAYBREAK for a Tuesday.
(COMMERCIAL BREAK)
COSTELLO: "Now in the News."
Indonesia has been shaken by another earthquake. This one is a moderate 5.4 magnitude, but it was centered in almost the same spot as the quake that spawned those killer tsunamis six months ago.
This news in just, oh, actually just minutes ago, the French president, Jacques Chirac, has appointed Dominique de Villepin as the new prime minister; this, after the former prime minister resigned earlier today. The government shakeup comes following Sunday's resounding no from French voters against the EU constitution.
Two U.S. citizens accused of aiding terrorists are scheduled to appear in separate federal courtrooms today. Court papers say the two were recorded in a New York apartment allegedly pledging their allegiance to al Qaeda and Osama bin Laden.
Final details of a Live Aid relief concert are expected this morning. Live Aid founder Bob Geldof is expected to reveal the African aid concert lineup of acts. The event is scheduled for July 2 to coincide with the upcoming G8 economic summit.
(WEATHER REPORT)
COSTELLO: From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers. "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 May 31, 2005 - 06:29 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(WEATHER REPORT)
CAROL COSTELLO, CNN ANCHOR: Investigators in Florida say more arrests could be made in the killing of a homeless man. Police say two teenage boys confessed to beating the man to death because they were bored and wanted to have some fun. The boys face murder charges.
More details now from Paul Miliken (ph) of Central Florida News 13 in Volusia County, Florida.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE (voice over): Appearing in court for the first time, Jeffery Spurgeon says just two words:
UNIDENTIFIED MALE: Appoint one.
UNIDENTIFIED MALE: "Appoint one," asking for a public defender. The 18-year-old is accused of beating a homeless man to death in this wooded area near Holly Hill.
Investigators found the body Saturday. By Sunday, Spurgeon and a 14-year-old boy had been arrested.
VICKI SPURGEON, MOTHER: This is not something he would do.
UNIDENTIFIED MALE: Spurgeon's mother, Vicki, watched her son in court, convinced he's taking the blame for his friends.
SPURGEON: And my son will not tell, and he'll say that he did it all. He's did it before. He's took the blame several times for his friends.
UNIDENTIFIED MALE: Spurgeon's mother says she thinks several neighborhood teens were involved in the beating, and deputies have confirmed more arrests are possible.
It was Spurgeon's mother who called authorities about the body, but she says it was not done to put her son behind bars.
SPURGEON: It was a rumor that there was a body, a homeless man, laying in the woods on 13th and Novis (ph). So, I called in as an anonymous tip, and said that I heard this, and I wanted to know if it was true.
UNIDENTIFIED MALE: Some of you may be released today. UNIDENTIFIED MALE: Jeffery Spurgeon is not released. He's being held in jail with no bond. To deputies, he's a confessed killer, who says he beat a man for fun. To his parents, he's a boy who fell in with the wrong crowd.
In Volusia County, Paul Miliken (ph), Central Florida News 13.
(END VIDEOTAPE)
COSTELLO: Police in Bellefontaine, Ohio, say the motive behind the deadly shootings there may never be known. Six people were killed in the suspected murder-suicide, and police believe 18-year-old Scott Moody was responsible for the shootings. Moody and one of his victims were scheduled to graduate from high school later that same day. His 15-year-old sister was the only survivor. She called her step-sister, who discovered the bodies and called police.
(BEGIN VIDEO CLIP)
Oh, my god! God! The son is...
UNIDENTIFIED FEMALE: What?
UNIDENTIFIED FEMALE: Oh, my god! I found the son, too. He's been killed.
UNIDENTIFIED FEMALE: What's the matter?
UNIDENTIFIED FEMALE: His girlfriend. Oh, my god!
UNIDENTIFIED FEMALE: What's going on, honey?
UNIDENTIFIED FEMALE: The son and the girlfriend are beat up, too.
UNIDENTIFIED FEMALE: I need the address, honey.
UNIDENTIFIED FEMALE: She's the only one that's awake.
UNIDENTIFIED FEMALE: She's the -- there's only one awake?
UNIDENTIFIED FEMALE: Yes.
UNIDENTIFIED FEMALE: How many people -- how many people have been beat up?
UNIDENTIFIED FEMALE: Four. Four. (INAUDIBLE) there's five. There's another one. Oh, my god! There's one in the living room, too.
UNIDENTIFIED FEMALE: OK. What -- what's going on right now, honey?
UNIDENTIFIED FEMALE: She's telling me that there's five dead. There's another one on the couch.
(END VIDEO CLIP)
COSTELLO: Stacy Moody, the girl who was injured, remains in critical condition. She had been shot in the neck.
Crane climbing seems to be the new thing to do in Atlanta's trendy Buckhead neighborhood. On Monday, Florida murder suspect Carl Roland made his first court appearance in Atlanta for a bond hearing. And he was denied bond. Today, Roland is expected back in court for a possible extradition to Pinellas County, Florida, where he is suspected of murder. But that was only after his 50-hour-plus standoff on the crane ended after midnight on Saturday, when he was subdued by police using a taser.
Well, flash forward to this morning when this man decided to take a stroll. After a few hours of talking on his cell phone, smoking some cigarettes and garnering more attention from gawkers, he decided it wasn't worth staying up there any longer. And as you can see, he climbed on down.
After two months of testimony, the Michael Jackson trial is finally winding down. "AMERICAN MORNING" followed the legal maneuvers.
Bill Hemmer is here with a preview.
Good morning -- Bill.
BILL HEMMER, CNN ANCHOR: Hey, Carol, good morning to you.
Full steam ahead for that case in California, Michael Jackson's case. Closing arguments, we expect, are to begin tomorrow, on Wednesday. So, what does each side need to do? Jeff Toobin is going to be out there in the courtroom. We are going to have him today in the studio live, and we'll get Jeff's take on what the defense has to do and what the prosecution has to do at this point.
Also, significant news this morning on how big tobacco may have targeted women. A new study based on an internal memo says it went far beyond just aggressive advertising, the most revealing bit of information they found in that study. And we'll talk with the study's head about that coming up in a moment here. It goes beyond marketing, so the study claims, Carol. So, we'll fill you in on all of that and what's happening, in about 25 minutes from now on a Tuesday edition.
Carol -- we'll see you then.
COSTELLO: All right, we'll be here. Thank you, Bill.
HEMMER: OK.
COSTELLO: In Iraq, U.S. and Iraqi forces are surrounding Baghdad in a search for terrorists. Operation Lightning is a massive crackdown on Baghdad-based insurgents. Up to 40,000 Iraqi troops and 10,000 Americans make up the biggest security operation since the fall of Saddam Hussein. Four U.S. Air Force personnel and one Iraqi airman are dead, following an Iraqi Air Force plane crash. According to a U.S. military statement, the plane went down Monday in Iraq's eastern Diyala province. The identities of those on board have yet to be released.
Reputed terrorist mastermind Abu Musab al-Zarqawi claims to still be commanding his al Qaeda followers in Iraq. An audiotape purporting to be from Zarqawi downplays the conflicting reports on his health. The message has yet to be authenticated.
Still to come on DAYBREAK, the early word is in on this year's hurricane season. We'll find out who is most likely to get hit and how many times.
Also ahead, good times are coming for MBA grads, at least if you ask them. We'll talk about what may be in store for the country's business brains.
But first, here's a look at what else is making news this Tuesday morning.
(COMMERCIAL BREAK)
COSTELLO: We've been talking about the high demand for MBA graduates. Here's a look at just how the tide has turned. Right now, 50 percent of grads-to-be have job offers. Last year at this time it was 42 percent. Expected starting salaries this year are more than $84,000. That's up from about $76,000 a year ago.
Joining us live from Chicago, John Challenger, employment research expert and CEO of the outplacement firm of Challenger, Gray and Christmas.
Good morning.
JOHN CHALLENGER, CHALLENGER, GRAY & CHRISTMAS: Good morning, Carol.
COSTELLO: So, why the increase?
CHALLENGER: Companies have been very slow about hiring in the last three years. Now, they're back to filling their pipeline. You can only do that for so long before it begins to hurt your company. So, they're hiring more MBA grads this year than we've seen in some time.
COSTELLO: Does it matter where you get your MBA? We have a graphic here that shows if you get an MBA from Harvard, for example, you'll make $110,000 a year. And that's pretty good for your first year of work. If you go down to the Wharton School of Business, 105,000. Why the disparity there? They're all good schools.
CHALLENGER: Well, certainly those top schools, you know, bring a premium. Companies feel like they're getting the best talent in the country. But all MBAs are good, especially if you're in the top quarter of you class. That suggests that you came in, worked hard, and you're going to bring that same kind of work ethic to your company.
COSTELLO: OK, John. We've been soliciting e-mails this morning from college graduates, who really paint a pretty depressing picture. I'm going to read you portions of some.
This is from Shelly. She says: "I always assumed I would easily find a job upon graduation. But it turns out a bachelor's degree isn't as impressive as it once was."
Is she right?
CHALLENGER: Well, certainly as more and more people do get graduate degrees, there is more expectation of that. Some companies now go straight to graduate school. But a college degree is still a very good thing. We're seeing hiring up for college grads this year about 13 percent from last year also.
COSTELLO: So, have hope, Shelly.
This one is from Annik (ph) from Charlottesville, Virginia. She says, "While my parents graciously paid for four years of out-of-state tuition at UVA, they seem less willing to cover the costs of graduate school."
It still cost a lot of money, especially to go to those good schools. And if you're going to get good grades, you kind of have to have help along the way in paying some of that education.
CHALLENGER: Well, certainly a lot of students do come out with large loans to pay off. Maybe those parents should be encouraging that child to go out and get the degree, but pay for it back over time, because it really is very worthwhile. The average salary coming out of college is about 35 to 40. This survey suggests almost double for MBA grads. You can make that money back pretty quickly.
COSTELLO: So, is it worthy when you're planning for your child's education to figure in two more years of college?
CHALLENGER: You know, it really is. I'm telling my children my parents said, you've got to get a college degree. I'm telling all of my children you've got to get a college degree. Today, in today's market, every study shows that over a lifetime of earnings, that graduate degree is very valuable. And unemployment for graduate school students right now is under 3 percent.
COSTELLO: OK. So, for all of the students who just graduated from college e-mailing us this morning -- and we've had hundreds -- are saying I just can't find a job. I'm going to have to go home and live with mom and dad. Do you have a message for them?
CHALLENGER: Well, when you get home, join lots of organizations. Get engaged in your community, not just, you know, in one area, but many. Go out and see the friends of your parents and talk with people. You can't find your job just by sitting on the Internet. It's a people process.
COSTELLO: Network, network, network.
CHALLENGER: It is. And you can find a job. I mean, the market is not that bad. It always feels bad until you find the job, but you only need one offer, a good one, and then you're on. So, everything is rejection until that last one.
COSTELLO: Oh, you know, you've got that right, because, you know, I majored in telecommunications. Everybody said you will never find a job. Never, never, never. Are you crazy? But you do if you persevere.
CHALLENGER: Exactly.
COSTELLO: John Challenger, thanks for joining us this morning.
CHALLENGER: Thanks, Carol.
COSTELLO: A story out of California about some MBA applicants gone wrong. Stanford University has rejected applicants who tried to hack into the school's computers. You may remember this incident. Officials there say 41 applicants to the graduate school of business were trying to access an admissions' Web site early this year. They were trying learn their fate ahead of schedule. It turns out that they sealed their fate instead.
Your news, money, weather and sports. It is 6:44 Eastern. Here's what's all new this morning.
An Iraqi-led crackdown on insurgents in and around Baghdad is off to a very encouraging start, so says the chairman of the U.S. Joint Chiefs of Staff. The crackdown is called Operation Lightning.
In money news, good news if you're planning a summer vacation in Europe. The euro has fallen to a seven-month low against the dollar. The fall comes on the heels of France's no-vote on the European Union constitution.
In culture, Miss Canada is the new Miss Universe. Twenty-three- year-old brunette Natalie Glebova won the crown in Thailand. She beat out 80 of the world's most beautiful women. And an estimated one billion people in 170 countries were watching.
In sports, rookie driver Danica Patrick is being credited with bringing viewers to this year's Indianapolis 500. The TV ratings for the race jumped 40 percent over last year and were the highest since 1997. Patrick, by the way, earned more than $378,000 for her fourth place finish.
To the forecast center and Chad.
(WEATHER REPORT)
COSTELLO: That's a look at the latest headlines for you this morning. It seems like almost every day there's a horrifying story in the news involving a child, and that's got plenty of parents really scared. "AMERICAN MORNING" is talking about this today. Soledad is here with a preview.
Good morning.
SOLEDAD O'BRIEN, CNN ANCHOR: Hey, Carol, good morning to you.
And you're absolutely right. So many headlines about missing or abducted children. And if you're a parent, you can't figure out exactly how you should protect your kids. So, child victims' advocate John Walsh is teaming up with Baby Einstein author and producer Julie Clark, and they've created this video series designed to teach kids how they can resist abductors.
Of course, you know, we've all discovered that telling your kid to avoid strangers and don't talk to strangers is very confusing for little kids. So, Walsh and Clark are going to join us live this morning to talk about this new child safety project. That's ahead.
Also this morning, Carol, 20 years after Live Aid, Sir Bob Geldof is at it once again. This morning, he's announcing a follow-up to the global charity concert. We're going to talk to one of the performers who has been lined up for the show, Dave Matthews.
That's all ahead this morning on "AMERICAN MORNING."
Back to you.
COSTELLO: I thought you had one of the Spice Girls.
O'BRIEN: You know, I heard so not in the concert.
COSTELLO: They're not going to be in the concert?
O'BRIEN: No. I heard they've been dissed in a big way, because some other people don't think they're real performers.
COSTELLO: Unbelievable scandal!
O'BRIEN: I'm devastated actually.
COSTELLO: Me too. I really wanted to see Scary Spice again. Thanks, Soledad.
Still to come on DAYBREAK, time to think about battening down the hatches. More predictions are in for this year's hurricane season. Chad will help us sort through it all.
More news in a moment. But first, a look at some -- actually, let's just say happy birthday and make it simple.
(COMMERCIAL BREAK)
COSTELLO: It's 6:51 Eastern. Here is what will be making news today.
Peru's little mermaid will undergo surgery today to begin repairing her rare birth defect. The baby was born with legs fused from her thighs to her ankles. Doctors say it could take 15 years of surgery.
Jurors in the Michael Jackson case will have the day off. Instead, attorneys from both sides will argue over what instructions the jury should receive before beginning deliberations. Closing arguments could begin tomorrow.
In Washington state, Spokane city council members are expected to vote today to demand the mayor resign. Mayor Jim West is accused of misusing his office by offering jobs to men he met in a gay online chat room.
And Paris Hilton is engaged. Her fiance is named none other than Paris. Paris Latsis is a Greek shipping heir; Hilton a hotel heiress. Hilton's spokesman says the couple has been dating for about eight months. No wedding date has been set for Paris and Paris.
Forecasters are predicting -- I know, that's so weird.
CHAD MYERS, CNN METEOROLOGIST: Well...
(CROSSTALK)
COSTELLO: Can you imagine the conversation? Paris? OK, Paris.
MYERS: Where did you get married? In Paris at the Hilton.
COSTELLO: Anyway, we have to talk about the hurricane season, because yet another is out. So, explain this to us.
MYERS: Dr. Gray, he puts out a number of forecasts per year. His first one was in December. And that forecast actually was a lot lower than what the new one he just put out. In December, he said 11 storms. Now he's saying 15.
Back to hurricanes, how many he's going to see. He thought maybe six. Now he says eight. Major hurricanes, he said three. Now he says four.
Now, last year we had six major hurricanes. And there you see the averages, only 9.6 named stores on average. A warmer Atlantic Ocean and no El Nino are going to increase the number for this year.
The map of the East Coast does show that the chance of a major hurricane hitting anywhere from Miami right on up through the Northeast is now 59 percent. That's about 150 percent of normal. And 44 percent down for the Gulf Coast, the normal chances there are about 30 percent.
So, the numbers are going up, because the land and the water and the lack of sheer and the warm water are all getting these numbers up and up and up. And he's going to have another update for you. In about a month-and-a-half he'll do that again -- Carol.
COSTELLO: OK. Well, let's talk about something good then. How about a DAYBREAK coffee mug?
MYERS: Are we giving away a mug?
COSTELLO: I think we are.
MYERS: Wow! Here we go. The one that we had here is gone, so I can't give you this one. But we've got another one somewhere. Here are the...
COSTELLO: Here, I have one in New York.
MYERS: Oh, all right. We'll ship you that one.
Here are the questions from yesterday. How much is FedEx going to start charging for delivery confirmation? And that was a buck-and- a-half. And what city has the roughest roads? Congratulations, Kansas City, you have the, I guess, dubious honors there.
And the winner, Michele Hayes from Ballston Spa, New York, a DAYBREAK coffee mug. Well, you might as well send it from there, Carol, because it will be quicker, and you won't have to have delivery confirmation. You can save a buck-and-a-half.
Here are your questions...
COSTELLO: Lucky Michele.
MYERS: Here are your questions for today. The U.S. claims Airbus got illegal subsidies from what organization or...
COSTELLO: Company.
MYERS: You kind of get it. And in 2004, what's the percentage of MBA students surveyed that job offers before graduation? Those are the MBA guys making big money.
Go to CNN.com/daybreak, and there's a little link there. You can send your answers to us -- Carol.
COSTELLO: Good enough. When we come back, more headlines and a look at your travel forecast. You are watching DAYBREAK for a Tuesday.
(COMMERCIAL BREAK)
COSTELLO: "Now in the News."
Indonesia has been shaken by another earthquake. This one is a moderate 5.4 magnitude, but it was centered in almost the same spot as the quake that spawned those killer tsunamis six months ago.
This news in just, oh, actually just minutes ago, the French president, Jacques Chirac, has appointed Dominique de Villepin as the new prime minister; this, after the former prime minister resigned earlier today. The government shakeup comes following Sunday's resounding no from French voters against the EU constitution.
Two U.S. citizens accused of aiding terrorists are scheduled to appear in separate federal courtrooms today. Court papers say the two were recorded in a New York apartment allegedly pledging their allegiance to al Qaeda and Osama bin Laden.
Final details of a Live Aid relief concert are expected this morning. Live Aid founder Bob Geldof is expected to reveal the African aid concert lineup of acts. The event is scheduled for July 2 to coincide with the upcoming G8 economic summit.
(WEATHER REPORT)
COSTELLO: From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers. "AMERICAN MORNING" starts right now.
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