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Wall Street's Wild Ride; The Politics of Economics; "Convicted Murderer" Freed
Aired January 22, 2008 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DON LEMON, CNN ANCHOR: Hello, everyone. I'm Don Lemon, live at the CNN world headquarters in Atlanta.
MELISSA LONG, CNN ANCHOR: And hello. I'm Melissa Long, here today for Kyra Phillips.
And you're in the CNN NEWSROOM.
LEMON: Let's get right to it. Susan Lisovicz is on the floor of the New York Stock Exchange. Our Ali Velshi is traveling cross country on the Election Express, right now passing through South Carolina. And Keith Oppenheim is talking to investors in Chicago.
Let's start with Susan.
Susan, give us a run of the numbers.
SUSAN LISOVICZ, CNN FINANCIAL CORRESPONDENT: Hey, Don.
Well, we've got two hours to go on this roller-coaster ride, more commonly known as the stock market session. Check it out for yourself.
The Dow industrials right now down 146 points, extending the terrible losses we saw last week. But the good news is, it's a lot better than it was at the open.
The blue chips falling as many as 463 points, following two days of just steep, steep losses around the globe on fears that the biggest economy in the world, the U.S., would fall into a recession. But to add to the drama, an hour before the opening bell, the Federal Reserve stepping in aggressively and unexpectedly, with a 75-point basis point cut in the federal funds rate, the benchmark for most consumer loans.
That helps somewhat. We are seeing some buying. And we're seeing some buying in areas that would benefit from lower interest rates.
Home Depot, so hard hit by the recession in the housing sector, and by weaker consumer spending, its shares are up more than 7 percent. J.P. Morgan, one of the big financials rocked by the credit crunch. It's shares are up 3.5 percent. Wal-Mart shares are up.
So you're seen some nibbling, but the bulls have not been able to work it all the way through to a real rally. So there are some concerns out there, certainly. That is for sure -- Don. LEMON: All right, Susan. Thank you.
LONG: Your money, your vote -- will the economy be the deciding factor in the '08 presidential race?
Senior Business Correspondent Ali Velshi is on the road in the CNN Election Express. He is heading west out of South Carolina, joins us now with some nifty new technology via broadband.
And some pretty nice digs there.
ALI VELSHI, CNN SR. BUSINESS CORRESPONDENT: Yes. We're in the CNN Election Express, as you said, Melissa. It's this great bus.
We have left Myrtle Beach, South Carolina, where the Democratic candidates held their debate last night, and we are headed over the course of the next week through the southern states, all the way to California. And on the way we're taking the pulse of what Americans are really thinking about, the economy.
We are talking about a globally connected economy. We saw that in the stock markets. We saw that it in the opening of the Dow today.
We also saw that Americans are very concerned about the interest rate cuts and what's going on. But in the end, the concern about the economy that people have, Melissa, is local.
Is it jobs? Is it gas prices? Is it mortgages?
We're looking right now -- we're just getting information in. The major banks have done what we expected them to do. After the Federal Reserve cut rates, they cut the prime rate. I'll tell you how that works.
The Fed cut rates by three-quarter of a percentage point, 75 basis points. That brought the rate down to 3.5 percent.
When you add 3 percent to that -- the prime rate is always 3 percent higher than that Fed's fund rate. So the prime rate now is standing at 6.5 percent. So I'm seeing Wachovia, Bank of America, LaSalle Bank and U.S. Bancorp, and basically all the others, at the close of business today were down to 6.5 percent.
That means if you have a loan that's tied to prime, like a credit card or some sort of adjustable rate, it's going to go down. The thinking on the part of the Fed is you'll take that money that you've saved on interest rates and you'll go spend it, and that will stimulate the economy.
Yet to be seen whether Americans will actually do that. We're going to ask them what they want to do, what they want to see happen in order to gain confidence in this economy and continue to spend money -- Melissa.
LONG: Ali Velshi on the road. Despite the fact that he's traveling, he's able to, of course, stay on top of the markets. And you can, too -- thanks, Ali -- by checking out our financial pages online, cnnmoney.com.
LEMON: Buy, sell, or diversify? Choices facing average investors on a day that's anything but average. What would you pick to protect your portfolio?
Our Keith Oppenheim asked that question and he joins us now from Chicago -- Keith.
KEITH OPPENHEIM, CNN CORRESPONDENT: Hi, Don.
I'm at Alaron Trading in downtown Chicago, where there are all sorts of electronic traders that are dealing with futures and options. And in just a moment we're going to speak to the managing director here.
But earlier this morning, as stocks were tumbling, we went out in the bitter cold to talk to regular folks about their 401(k)s, and we found that people who were somewhat older were more nervous because they feel they had less time to save. But oftentimes, folks who are younger felt that time will heal all things.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I think I'm just going to try to ride it out. Hopefully I'm young enough that it won't affect me too much.
OPPENHEIM: Do you get scared?
UNIDENTIFIED MALE: A little bit, but I think the people that have put together all the 401(k) stuff through my job, I hope they are doing a good job and have it all set up for us.
UNIDENTIFIED MALE: Sure, I'm worried, and I'm actually thinking about going in and buying in a little bit more. I try to see it as a buying opportunity.
OPPENHEIM: So, you're looking for some bargains?
UNIDENTIFIED MALE: Yes, absolutely. I took some money out last year out of my 401(k) and put it into a money market-type fund, and then in turn now, I'm looking to buy in. I've been waiting a year for this.
(END VIDEO CLIP)
OPPENHEIM: So I told you it was cold out there.
Nice and warm in here, with Scott Slutsky, who is the managing director here at Alaron.
You told me a story earlier, Scott, about your parents, that they called you. Approximately, what is their age range and what did they ask you?
SCOTT SLUTSKY, MANAGING DIRECTOR, ALARON TRADING: My parents called this morning from Arizona. They're in their 70s, and the first thing they said was, "What's going on? What's going on in the world?"
And I said, "The first thing is not to panic. OK? Panic is the worst thing you can do at this time."
In my opinion, today's elderly are more sophisticated and better prepared for their retirement. No one likes to see the market go down, but being prepared is the key.
OPPENHEIM: So, bottom line, if you have made your investments to be conservative enough for your age range or aggressive enough if you are younger, you should be OK given what's happened in these last few weeks?
SLUTSKY: Absolutely. You have to weather out the storm.
The days of double-digit returns are not going to be around. And slower growth around the world is causing this. And nowadays, people have to, you know, conserve their capital.
OPPENHEIM: And before we go, you have worldwide reaction to this. In a nutshell, are institutions, people you talk to around the globe, nervous or feeling that we're coming to an end with this?
SLUTSKY: I think the key is going to be the close of today's market. We have been talking to all our clients around the world...
LEMON: All right. We appear to be having a problem there with the microphone from Keith Oppenheim. We'll get back to him.
You can understand consumers are a little bit jittery all over the country, not just in Chicago -- Melissa.
LONG: And of course you can stay up to date on all the financial news, everything that affects your financial security, by going to our Web site, cnnmoney.com. You can get information on the markets today, how they are faring, mortgage crisis, the job market itself, all that and much more.
LEMON: We want to update you on some breaking news that came into the CNN NEWSROOM just moments ago. It involves Cesar Laurean, who is that Marine corporal accused of murdering a woman and her unborn child, Lance Corporal Maria Lauterbach.
Well, according to our reporter there on the ground, Harris Whitbeck, he says a cousin of the suspected killer, Marine Corporal Cesar Laurean, told him -- told CNN on Tuesday that he saw Laurean near Guadalajara a week ago. Now, this cousin's name is Juan Antonio Ramos. He said he didn't know at the time that Laurean visited him at his liquor store in the area that he had been sought by authorities for murder.
And just earlier this week, authorities, including the FBI, and the district attorney in Onslow County, North Carolina, both said that they strongly suspect that the marine corporal is somewhere in Mexico. Of course, Laurean has been charged in the murder of Lance Corporal Maria Lauterbach and her unborn child. We'll continue to update you here in the CNN NEWSROOM.
LONG: For the past nine-plus years, Tim Masters has seen little but the inside of a prison cell, and today he is seeing justice. It was about an hour ago now, the Colorado man's murder conviction was overturned. His life sentence, vacated.
CNN's Drew Griffin has been following Masters' flight for freedom, he joins us live from outside the courthouse there in Ft. Collins, Colorado -- Drew.
DREW GRIFFIN, CNN INVESTIGATIVE CORRESPONDENT: Melissa, Tim Masters has been saying he didn't do this since he was a 15-year-old boy. Police didn't believe him then. They didn't believe him 12 years later, when they convicted him and sent him to prison. But today, finally, prosecutors are believing him.
The motion to vacate his prosecution was ordered. And he was released just about an hour ago now, dressed in a suit and tie for the first time, like you said, in nine or 10 years.
His family here to greet him. And here is what he said in a news conference just moments after he learned he was being set free.
(BEGIN VIDEO CLIP)
TIM MASTERS, WRONGFULLY CONVICTED OF MURDER: I just want to thank my family and my friends who stuck with me all these years. Without their support, I don't know if I could have made it through this.
I want to thank the media, who finally told my side of the story this summer.
And that's about all I have to say.
Thank you.
(END VIDEO CLIP)
GRIFFIN: All those people who didn't believe him -- there were some that did, including a defense team that kept pressing on this case and has since uncovered lots of potential wrongdoings in the original case, in the original prosecution, and some potential DNA evidence pointing to someone else other than Tim Masters who killed a woman in this town, Melissa, in 1987.
Regardless of what happens here, if Tim Masters didn't do it, somebody did kill a woman named Peggy Hettrick. And once again, Fort Collins, Colorado, has to deal with an unsolved murder case.
But right now, Tim Masters celebrating somewhere in secret with his family on the release after nine years in prison for a crime he did not do.
LONG: Now, again, this is not the end of his legal saga. He's due back in court on the 5th of February.
GRIFFIN: Yes. It's a technicality.
He was filing for a motion for a new trial. That motion was granted and he was released on his own recognizance. A personal bond today. That's what happened.
Now, technically, the local prosecutor in Larimer County has to decide, hey, am I going to retry this guy for that murder? Based on all the evidence that's pointing away from Tim Masters, that exonerates Tim Masters, that, in fact, the prosecution in the original trial hid from Tim Masters, it's very doubtful that that prosecution will go forward.
In fact, there's been a special prosecutor assigned to actually examine the Fort Collins police and their potential wrongdoing in this case.
LONG: Drew Griffin, live on a case that you've been following now in great detail.
Drew, thank you so much.
LEMON: Well, lots of roller-coaster analogies, but, really, if Wall Street is a roller-coaster, you might want to make sure your retirement money is buckled in and doesn't fall out. So, what's the story with your 401(k) on this wild day?
LONG: Plus, the word "miracle," a lot of people use it, right? It can be used pretty loosely often, but not when it comes to this guy. How else could he fall 47 stories one month and then leave the hospital the next?
(COMMERCIAL BREAK)
(NEWSBREAK)
LEMON: It didn't take long for the fireworks to start at last night's Democratic presidential debate in South Carolina. Five days before that state's Democratic primary, Hillary Clinton and Barack Obama clashed over several issues, including their past.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: While I was working on those streets watching those folks see their jobs shift overseas, you were a corporate lawyer sitting on the board of Wal- Mart. I was fighting these fights. I was fighting these fights.
SEN. HILLARY RODHAM CLINTON (D-NY), PRESIDENTIAL CANDIDATE: I was fighting against those ideas when you were practicing law and representing your contributor, Rezco, in his slum landlord business in inner city Chicago.
OBAMA: No, no, no, no, no, no.
(END VIDEO CLIP)
LEMON: Wow. Well, John Edwards spent much of the evening trying to stay above the fray. At one point he called for the squabbling to stop.
(BEGIN VIDEO CLIP)
JOHN EDWARDS (D), PRESIDENTIAL CANDIDATE: And what I want to say first is, are there three people in this debate, not two? And I also want to know -- I also want to know on behalf of voters here in South Carolina, this kind of squabbling, how many children is this going to get health care? How many people are going to get an education from this?
(END VIDEO CLIP)
LEMON: Well, that debate was sponsored by the Congressional Black Caucus. African-Americans could make up more than half of the voters in South Carolina's Democratic primary. That happens on Saturday.
Well, the day after that heated debate, Barack Obama is blitzing the state, and there's still talk of the Bill Clinton factor.
CNN's Jessica Yellin joins us now from Greenwood, South Carolina.
Oh, yes, we always say the gloves are coming off, and I think they have already.
JESSICA YELLIN, CNN CONGRESSIONAL CORRESPONDENT: They are off, Don. I agree, they are off.
You know, all the candidates are trying to stay on the news today, focusing on their economic stimulus packages. But they cannot keep away from what John Edwards called that squabbling.
Barack Obama, at an economy event earlier today, spent a good portion of his time talking about Senator Clinton and what he claims are her inconsistencies on some of these issues. And Hillary Clinton started off the day sort of smacking down Barack Obama for his performance last night.
Let's hear what she had to say.
(BEGIN VIDEO CLIP)
CLINTON: Senator Obama is very frustrated. The events of the last 10 or so days, particularly the outcomes in New Hampshire and Nevada, have apparently convinced him to adopt a different strategy.
So, he clearly came -- he telegraphed it. He talked about it. He clearly came last night looking for a fight. And he was determined, and launched right in. And I thought it was important to set the record straight.
(END VIDEO CLIP) YELLIN: Well, if he was looking for a fight, his fight against Bill Clinton didn't seem to do the trick, because Bill Clinton is out on the trail today, still making those criticisms of Barack Obama. He said, in fact, it seemed to him like Obama was running against him, Clinton, Bill Clinton, not against his wife, back in Nevada.
And one other note. The Obama campaign announced a truth squad that they're forming to quickly rebut those attacks that they say they are being undated with by the Clinton campaign. This back-and-forth doesn't seem likely to stop anytime soon. Barack Obama arrives here, where I am, to speak shortly in South Carolina. We'll see what he has to say then -- Don.
LEMON: And Jessica, it's going to be very interesting to see how this plays out among voters, especially all that squabbling last night. And some of our results that we had, you know, at the time -- as it was happening, showed a lot of people didn't like that, did they?
YELLIN: Right. And that's always the case.
You know, voters say that they really want to stay -- hear positive messages and hear the issues, but negative attacks, they penetrate and they do end up shaping votes, delivering votes. And I think that's why we hear so much of them -- Don.
LEMON: Jessica Yellin. Yes, and we're going to -- thank you very much for that.
And we're going to have our senior political analyst, Mr. Bill Schneider. He's going to break it down for us to see voters -- how this really played out among voters.
Time is winding down and the race is heating up. Of course, for the freshest polls, the latest fights, the Political Ticker blog and more, check out cnnpolitics.com.
LONG: And when you fall, if it's a small fall you're supposed to get right back up again. But what if you fall 47 stories? We'll tell you about one guy who did, and now he is out of the hospital.
(COMMERCIAL BREAK)
(STOCK MARKET REPORT)
LEMON: We have some breaking news happening here that we need to report. It involves presidential candidate Fred Thompson.
This is according to The Associated Press. We're getting word that Fred Thompson is dropping out of the presidential race.
Again, Republican Fred Thompson has quit the presidential race. That is according to a statement, and that is according to The Associated Press.
Our political unit is on this developing story that is happening right now, but, of course, there had been some questions about whether Fred Thompson could survive after really not showing well in the caucuses or in any of the primaries. He got into this race late, and then also got a late start. And then, as I said, did not do so well.
A lot happening here in my ear, but I'm being told now that CNN is confirming that Republican Fred Thompson is dropping out of the race.
Of course, Fred Thompson familiar to many folks. Besides running for president this time, as an actor. And I believe it's "Law & Order" where he plays someone who is very similar to the type of background that he has, a district attorney and someone who's involved in law enforcement. But, again, Fred Thompson, CNN has confirmed, through our political unit, dropping out of the race for president.
We are working on getting a statement from his campaign and also getting more information on this as soon. As we can get our political team up and running, we will get that to you. But, again, Fred Thompson, out of the race, according to our CNN political unit.
OK. Meantime, we want to talk about another story that unfolded here in the CNN NEWSROOM.
Last month, Alcides Moreno, a window washer, fell 47 stories from a New York -- New York City skyscraper. Now, get this, he has left the hospital.
Our medical correspondent, Elizabeth Cohen, is here now.
Moreno's brother also fell. He didn't make it.
So how did Moreno survive? How on earth did he make it? Did something break his fall? What happened?
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: It really does seem incredible.
LEMON: Yes.
COHEN: I mean, like such an incredible miracle when you consider that 50 percent of people who fall just three stories die. Three stories, and he fell 47.
We don't know exactly why Moreno survived, but one thing that we've been told is that the plank that he was standing on to do his work, that he kind of -- that ended up sort of being a surfboard, and that that helped make the fall a little bit better, that he sort of surfed to the ground. But, still, it took him only five and a half seconds to fall 47 stories, so he was reaching speeds of almost 100 miles an hour.
So it was obviously not an easy fall. And it is amazing that he survived.
He has had 16 surgeries. And one of them, doctors actually had to operate on his brain to drain the blood that had gathered there and to prevent further swelling. And as Don said, he's gone out of the hospital and he's now in rehab.
LEMON: OK. So how is he doing overall? I heard what's happening with him now, but overall, good prognosis?
COHEN: Overall, it's really hard to say because they don't see a lot of patients like this. But what doctors can tell us is that, overall, he is understanding simple commands. He's able to speak in simple sentences.
But he definitely has a long road ahead of him. One doctor said he could be in rehab for a year.
And also, it's important to note, he is not done with the surgeries. He is going to need at least one more surgery that we know of. That one being on his abdominal wall. So, he is not out of the woods yet.
LEMON: Is he going to walk again?
COHEN: You know, the doctor we talked to said there's no reason to think he won't walk again. He didn't damage anything that would prevent him from walking again.
But he also said, you never know, this is really pretty unprecedented. But he said we're looking forward to what's going to happen. They think that he'll be in rehab possibly for as long as a year. And they just have to keep watching him. But he said there's no reason he won't walk.
LEMON: All right. Let's hope so.
COHEN: Let's hope, exactly.
LEMON: Thank you very much, Elizabeth Cohen, for that update.
COHEN: Thanks.
LEMON: We're going to continue to follow this breaking news that we had been telling you about, about Fred Thompson dropping out of the race for president. Tennessee Republican Fred Thompson.
So don't go away. We're going to tell you about that.
Also, wild ride today on Wall Street. You've invested for years, but lately all your 401(k) has done is shrink. Our financial expert, Gerri Willis -- she's really our financial editor here, personal finance editor -- she is in the NEWSROOM with some tips on what you can could to protect your nest egg.
(COMMERCIAL BREAK)
LEMON: Well, Fred Thompson said he needed a strong showing in South Carolina in order to stay in the presidential race. Instead, he came in third, behind John McCain and Mike Huckabee, and just moments ago, CNN got this statement from the Fred Thompson Campaign. Now, here's what he says, and I'm reading verbatim. Senator Fred Thompson today issued the following statement about this campaign for president. He said, today, I have written -- withdrawn, I should say -- my candidacy for president of the United States. I hope that my country and my party have benefited from our having made this effort. Jeri and I will always be grateful for the encouragement and friendship of so many wonderful people. Jeri, of course, being his wife.
But again, Senator Fred Thompson of Tennessee dropping out of the presidential race. Our John King will be live for us in just a few minutes to tell us about -- to break this situation down for us. Fred Thompson, out of the race.
LONG: Stressful day on Wall Street and let's see how the Dow is faring right now. Bring up the big board right there. The Dow trading down 161 points at 11,935. Stock market, yes, it is slumping, but nowhere near the meltdown that so many people have feared. Earlier today, the economic jitters led to a global sell-off.
Let's check in with our correspondents at some of those world markets.
(BEGIN VIDEOTAPE)
ANDREW STEVENS, CNN CORRESPONDENT: Certainly, the worst day for stock market trading in Asia since September the 11th, 2001. Right across the board, markets tanked.
In Hong Kong, the Hang Seng Index down 8.5 percent. Japanese stocks down by more than six percent, Australian stocks by seven percent, China stocks by seven percent. Even India, one of the darlings of the global market, down five percent after being down 11 percent at one stage.
The big fear: the U.S. recession and its effect on the Asian economies and also the Asian stock markets. At this stage, the jury is out whether the U.S. is actually in recession, but everything is pointing to a slowdown, and that is spooking markets not just in Asia, but right around the world.
I'm Andrew Stevens in Hong Kong.
SARA SIDNER, CNN INTERNATIONAL CORRESPONDENT: Tuesday saw panic selling which sent shock waves through the Indian market. Within minutes of opening on Tuesday, the markets were automatically shut down. Bombay Sensex and the Delhi's Nifty (ph) both hit significant lows. The Sensex fell more than 10 percent, the Nifty more than 12 percent.
During the hour closure, though, India's finance minister came out and spoke with reporters and he urged calm among investors, saying, and I quote here, "There is no reason at all to allow the worries of the Western world to overwhelm us. Our economies are very different from some of the developing countries. "
Then, when the market reopened at 10:55 in the morning, investors did see some recovery. The headline now in India is that the markets have rebounded today. Again, the finance minister has tried to put everyone at ease, saying that India will grow this year about 8.9 percent.
Sara Sidner, CNN, New Delhi.
JIM BOULDEN, CNN INTERNATIONAL CORRESPONDENT: European markets started Tuesday sharply lower, following on the steep falls in Asia. But then, the U.S. interest rate cut set in after some rumors that there would be a cut and that really helped European markets. Many of the indices actually going higher and into positive territory.
Then, a little bit of trouble when it wasn't sure what was going to happen on Wall Street. Wall Street opening lower, and that didn't help. But toward the end of the day, we did see European markets mostly ending in positive territory.
The numbers are -- the FT100 actually finished the day up nearly three percent, that's main indices here in London. Over in Germany, the shares did end up down about one-third of a percent and in Paris, shares there ended the day 2.5 percent higher. Many of the oil companies, some of the big industrials, did recover after the steep falls on Monday.
Jim Boulden, CNN, London.
(END VIDEOTAPE)
LONG: Days like these that you may need something for that pounding headache, especially investors nearing retirement. When the Dow drops, your 401k, of course, shrinks. As a response, Gerri Willis, we all want to know what we can we do to protect that nest egg.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, Melissa, I think the first thing you have to think about on a day like today is keep investing. Don't stop. You know, everybody says that markets are rational. But just look at this, we opened down 450, then for awhile, we were down just 40 points. Now, it's roughly -- let's see, 161, as you can see.
You know, the markets aren't rational. You have to be rational when it comes to your own stock portfolio and particularly, your retirement savings. Understand that stocks are going to trade like this ahead of the recession, anticipating the recession. Stock markets look ahead, that's their job, they're anticipating the future.
But these things will change as the market starts to recover, as the -- as the economy starts to recover. You want to make sure that while this is going on, that you're buying some of these stocks, at these very cheap prices. It's called dollar-cost averaging. You want to average your cost across the portfolio. Buy when stocks are low and buy consistently -- Melissa?
LONG: And, of course, don't panic. So, for those people that are trying to just ride it out and they want to protect their money, what can they do?
WILLIS: Well, look, I mean, at the end of the day, you do want to keep investing. You do want to keep doing what you're doing and make sure that you're investing in a smart way. You want to make sure that you're putting your money in a lot of different baskets, a lot of different asset classes. You want to diversify, make sure you're investing not just in U.S. stocks but also international stocks. You want to be in bonds. You want to have a little bit in every pot so that you can wide the waves with all of these.
You also want to invest in life-cycle funds. Now, life-cycle funds are for folks who don't want to make these choices, you don't want to think how close am I to retirement and how do I change my portfolio to reflect that.
Finally, if you're really worried today, Melissa, if you're thinking wow, I just can't deal with this, my stomach's not strong enough for this, you might want to call a financial adviser and say look at my portfolio, are these the kinds of mutual funds, are these the kind of stocks, are these the kind of investments that I want to be in? What are the right choices for me?
But to make wholesale changes in your retirement accounts, your 401k and your IRAs on a day like today, huh-uh, better to sit tight and you know, let these professionals make all these moves, make all these changes and then come back in later. Stay at it. Keep investing and, in the long run, in the long run, it'll really pay off.
LONG: All right, professional, Gerri Willis. Thanks so much for the advice.
WILLIS: My pleasure.
LONG: To get more information on perhaps finding a financial planner, finding out about all these issues that could affect your financial stability, go online, CNNmoney.com.
LEMON: Well, he got into the race late and now, he is withdrawing what appears for some early. Fred Thompson out of the presidential race, CNN's confirmed. We'll tell you what he's saying in a statement in the CNN NEWSROOM.
(COMMERCIAL BREAK)
LEMON: The former senator from Tennessee, and most recently a presidential candidate, has dropped out of the race. We're talking about Republican Fred Thompson. News in to the CNN political unit just moments ago.
According to his former campaign, he says "Today, I have withdrawn my candidacy for president of the United States. I hope that my country and my party have benefited from our having made this effort. Jeri and I will always be grateful for the encouragement and friendship of so many wonderful people." Fred Thompson dropping out of the race.
Our John King is on this. He's going to break it down in the CNN NEWSROOM in just a little bit.
And also on our political ticker today, a face-to-face meeting between two of the Democratic presidential candidates, but not on stage. Sources for both campaigns tell us John Edwards and Hillary Clinton met privately after last night's debate in South Carolina. One of the sources says it was just by chance and was confined to chitchat.
Potential Super Tuesday trouble for Republican presidential hopeful Rudy Giuliani, and it's in his home state. Two new polls in New York show John McCain with a pretty substantial lead over the former New York mayor. New York is among the biggest prizes on February 5th, when more than two dozen states holding nominating contests there.
Well, money is a big concern for Republican hopeful Mike Huckabee, after coming in second to John McCain in South Carolina, Huckabee is cutting costs. That means no more planes and buses for reporters covering his campaign. The former Arkansas governor says he'll still campaign in Florida, but on a shoestring budget. He says he wants to save money for ads in other southern states ahead of Super Tuesday.
LONG: Sentenced to life in prison for murder. A Colorado man gets his life back today and his conviction overturned.
KAREEN WYNTER, CNN ENTERTAINMENT CORRESPONDENT: I'm Kareen Wynter in Hollywood. The Oscar nominations are out and as always, there's some of the usual suspects and a few surprises. I'll have it all for you when CNN NEWSROOM continues.
(COMMERCIAL BREAK)
LEMON: Oh, Melissa, look at that. Still down, but not quite as bad as it was earlier. It was for more than 400 points.
LONG: Oh no, when we opened this morning, when the stock market opened this morning, it was quickly down 300, more than 400 points. Now you see it trading as we're coming close to the end of the trading day, down 136 at 11,963. And we, of course, saw the steep early losses and we hadn't seen a rate cut like that since the early 1980s -- 1984.
LEMON: Yes, and of course, with the Fed's emergency really taking action this morning, and dropping interest rates, which really came as a surprise to a lot of folks. But then earlier on, the rest of the world wasn't really buying into it. And the stock market went down quite a bit, and now it seems to have rebounded.
Talking to our Susan Lisovicz and Ali Velshi, it's all perspective because now they're saying it's only down 100 points or 126 points and, of course, you know, the president has been meeting with Congressional leaders, Democratic leaders mostly -- well, actually, leaders on both sides, meeting there and ...
LONG: Treasury secretary as well. LEMON: Yes, and talking about what they can do, what the government can do to sort of stimulate the economy. They call it an economic stimulus package, and he is meeting with them now and just ...
LONG: Well, of course, part of that economic stimulus plan was to give people rebates.
LEMON: Right.
LONG: $800 if you happened to be an individual, $1,600 if you were a married couple, in order to stimulate the economy and some people say we should go out and spend that money in order to stimulate, but other people say, you know what ...
LEMON: Save it.
LONG: ...need to pay down your debt.
LEMON: Yes, let's listen in now to the president, of course, sitting there with Harry Reid and Nancy Pelosi, flanked by both of them.
(BEGIN VIDEOTAPE)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: ...initially intended to brief -- brief the leaders of the House and the Senate on my trip to the Middle East and I intend to do so, but we're going to spend some time talking about this economy and the need for us to find common ground for an effective pro-growth economic package.
We had a good call last Thursday and I want to thank the speaker and the leader and the other members. And Secretary Paulson had a good meeting today. I believe we can find common ground to get something done that's big enough and effective enough so that -- so that an economy that is inherently strong gets a boost, to make sure that this uncertainty doesn't translate into, you know, more economic woes for our workers and small business people.
And so, I really want to thank you all for coming. And I'm looking forward to our discussions. And look, there's -- everybody wants to get something done quickly. But we want to make sure it gets done right. And make sure that where everybody's realistic about the timetable. And the legislative bodies don't move as, you know, necessarily in an orderly, quick way, and therefore, these leaders are committed, and they want to get something done. But we want to make sure we're realistic about how fast that can possibly happen.
So, when we say as soon as possible, that means within the -- obviously, within the ability of the bodies to effectively do their jobs. So, I have got reasonable expectations about, you know, how fast something can happen. But I also am optimistic that something will happen. And I appreciate very much the leadership in here today. Thank you all.
(END VIDEOTAPE) LEMON: You heard the president saying he is optimistic that something will happen. Earlier on he said, I believe that we can find some common ground. Really what they are trying to do is pump about $150 million in tax cuts and government spending into the economy to try to stave off a recession. But the president there, meeting with leaders, congressional leaders, trying to come up with some way to stimulate the economy.
LONG: Well, we've had such a domino effect with so many of the factors in the economy, with the escalating oil prices, the escalating prices at the pump, of course the mortgage mess and so many of the banks that are having to bailing out, now. It's really been a conundrum for so many people.
LEMON: Absolutely. Everybody keeping a close eye out on Wall Street, they say when -- if Wall Street gets a cough or the U.S. gets a cough, the rest the world gets a cold. So, we'll see where the markets end up, close in just over an hour. Of course our Susan Lisovicz on top of it. And anything can happen between now and the 70-or so minutes we have before the Stock -- before the closing bell.
LONG: Well, it was an early, early morning in Hollywood. Celebs and the journalists that cover those celebs were up before dawn to hear who happened to be nominated for the Academy Awards. Entertainment correspondent, Kareen Wynter, she also set her alarm clock very early this morning in order to cover it all.
Hello.
WYNTER: It was an early morning, but a fantastic one, Melissa. Hello to you.
OK, so it's the biggest award show around. The Academy Awards has put out it's list of those it deems are worthy of an Oscar. The 80th Annual Oscar Awards announcement, it took place just hours ago and this time there were a few surprises.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: I need to know what I stand to win.
UNIDENTIFIED MALE: Everything. Just call it (INAUDIBLE).
WYNTER (voice-over): Greed and revenge were in tall order at the 80th Annual Academy Award nominations. The Coen brothers' violent thriller, "No Country For Old Men" and Paul Thomas Anderson's period drama, "There Will Be Blood" led the pack with eight nominations each, including "Best Film."
Earning seven nods each were the romantic period piece, "Atonement" and Tony Gilroy's dark legal drama, "Michael Clayton," which along with teen pregnancy comedy, "Juno," round out the "Best Picture" contenders.
ELLEN PAGE, ACTRESS, JUNO: And if it is any consolation, I have heartburn that is radiating to my kneecaps. WYNTER: Juno's 20-year-old Ellen Page was tapped for "Best Lead Actress" as was Julie Christie from, "Away From Her." Marion Cotillard from "La Vie En Rose," Laura Linney from, "The Savages" and Cate Blanchett from, "Elizabeth: The Golden Age."
CATE BLANCHETT, ACTRESS, I'M NOT THERE: Slaughter me for all I care. I refuse to be hurt.
WYNTER: It was a good day for Blanchett who was also recognized in the "Supporting Actress" category for her gender bending turn as Bob Dylan in, "I'm Not There." She'll go head to head with Amy Ryan from "Gone Baby Gone," "American Gangster"'s Ruby Dee, Tilda Swinton from "Michael Clayton" and 13-year-old Saoirse Ronan from "Atonement."
JOHNNY DEPP, ACTOR, SWEENEY TODD: If I will have vengeance...
WYNTER: Superstar Johnny Depp earned his third career Oscar nomination for "Sweeney Todd." He'll compete for the "Best Actor" nod with Daniel Day-Lewis from "There Will Be Blood," "Eastern Promises," Viggo Mortenson, Tommy Lee Jones from "In the Valley of Elah" and "Michael Clayton" star, George Clooney.
TOM WILKINSON, ACTOR, MICHAEL CLAYTON: I am Shiva, the God of death.
WYNTER: Clooney's co-star, Tom Wilkinson, heard his name called for "Best Supporting Actor," as did Casey Affleck from, "The Assassination of Jesse James." Phillip Seymour Hoffman from "Charlie Wilson's War," "No Country"'s Javier Bardem and 82-year-old Hall Holbrook from "Into The Wild."
HALL HOLBROOK, ACTOR, INTO THE WILD: I'll show you. Sitting on my butt...
(END VIDEOTAPE)
WYNTER: Don't you just love the Oscars? Now the Academy Awards still on track to take place February 24th, we hope, keeping our fingers crossed, Melissa. But before then, all the nominees -- they'll have a chance to meet one another and celebrate all their nominations at the Oscar luncheon on February 4th.
All right, let's look ahead to "SHOWBIZ TONIGHT." Coming up tonight, how Britney Spears is helping the troubled economy. You heard right. A startling new report reveals how Britney Spears is generating tens of millions of dollars into the economy. It's a story you have to see to believe, folks, on TV's most provocative entertainment news show. "SHOWBIZ TONIGHT," 11::00 p.m. Eastern and Pacific. Something tells me, after you hit the $1 million mark, who is really counting?
LONG: It must have something to do with all the tabloids. You go to the magazine shelf, she's on every magazine cover.
WYNTER: Let me research that for you and get back.
LONG: All right. Thanks, Kareen.
If you'd like to see a complete list of the nominees, you check out cnn.com's spiffy new special, Academy Awards Spotlight. On the Web site you'll find galleries and quizzes for anybody that happens to be a movie buff in your family. Again, cnn.com/academyawards.
LEMON: So when you sit up here three, sometimes four hours a day, you get a little hungry, right? Can't eat, look at that. Ready for lunch? The monster burger at Fat's Grill and Bar could feed an army -- look at that thing -- or at least a monster, right?
LONG: You need some Pepto-Bismol with that.
LEMON: Or more. Man, you need a big stomach. Look at that thing.
(COMMERCIAL BREAK)
LONG: We have snow, icy rain, bitter cold all up and down upstate New York.
Chad Myers, you've lived in Buffalo, you know how bad it can be there.
CHAD MYERS, AMS METEOROLOGIST: Yes, but, you know, when I was a kid, I never got cold.
LONG: Why not?
MYERS: Now, I step outside in Atlanta and can't feel my fingers. I don't know how that happens.
LONG: Well you know, when we're kids, you play out in the snow, you make snow forts, you make snowmen, you don't realize that other people have to drive to work in it.
MYERS: And you're bundled up like the Michelin Man. So, there you go.
More snow coming down for the Great Lakes and also for western New York and upstate, up into Watertown. A lot more snow, everywhere that you see this darker purple here, that's a couple of -- three inches of snow still to come here. We got a lot of snow yesterday across parts of Minnesota. Here's some pictures from Minnesota. Cars were sliding off the roadways. I mean, and people in Minnesota know how to do this.
The only problem is, when you have four-wheel drive you think you can go faster. And you can't, you just can't stop faster than anybody else can. So, cars were everywhere yesterday in Minnesota. Some ice on the ground first, and then snow on top of it and it was an ugly, ugly mess.
Something else, I want to switch your attention to what's happening in Australia. I don't know if you saw these pictures or not. But this is parts of Queensland, on up -- just a little -- not that far from Sydney and all that, but this rain has just been coming out down. And they've been doing high water rescues.
Look at this. This guy is in the -- they put the-- got the helmet on him. Then they drug him away from that tree, under the water for a while. But, there you go. He didn't look very good, but he actually came out of that in pretty good shape. So, Australia getting their share of rain.
And they really need more rain in places that they are not getting it. And it's still a pretty dry season over there in Australia. More snow for the Sierra and back out to the West here, in to parts of California, from Fresno all the way down to -- I'll tell you what, Big Bear is going to get slammed. But it's some good snow. Get there if you can.
Guys, back to you.
LONG: Chad Meyers, thank you.
LEMON: Hey, Chad, do you -- are you a burger guy?
MYERS: Absolutely.
LEMON: Yes? Think you can handle this? Take a look, no skinny burgers at Fat's Grill and Bar. Check it out, Chad.
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