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Obama's Big Win; Republican Presidential Candidates' Last- Minute Appeals in Florida; No Appointment Necessary: Treatment at the Pharmacy

Aired January 28, 2008 - 11:00   ET

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

ROB MARCIANO, CNN ANCHOR: You are with CNN. You're informed.
I'm Rob Marciano.

FREDRICKA WHITFIELD, CNN ANCHOR: I almost took the words out of your mouth.

And I'm Fredricka Whitfield.

Tony and Heidi are off today.

Developments keep coming in to the CNN NEWSROOM on this Monday, January 28th.

Here's what's on the rundown this hour.

Political plum for presidential candidate. Next hour, Barack Obama gets a prized endorsement.

MARCIANO: Keeping you safe in the skies -- undercover operation tests. The TSA sniffing out bombs.

WHITFIELD: And Hollywood actors honor their own. But could it be the award season's final act?

You're in the CNN NEWSROOM.

First up this hour, the road to the White House and a southern leg of that journey for Republicans. It's sun, surf and stumping. They're in their final full day of campaigning in Florida.

The state carries a windfall of delegates. It can also deliver a fatal blow to Rudy Giuliani's presidential campaign. He has focused most of his efforts on that state, and his bid seems to be faltering. Right now polls show him running third.

Democrats have no delegates at stake in Florida, so they're looking ahead to Super Tuesday. Those contests are February 5th.

Barack Obama has momentum from a big win in South Carolina over the weekend. He defeated Hillary Clinton with a 2-1 margin of victory.

And with that, Barack Obama is starting the week with a huge smile. He reflected on his big score in a sit-down interview with CNN's Suzanne Malveaux.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Congratulations, Senator, for your big win in South Carolina.

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: Thank you.

MALVEAUX: You got 80 percent of the African-American vote. You pretty much split the white vote with your other two opponents.

There was a lot of discussion about race before this vote. Your campaign, the Clinton campaign, accusing each other of exploiting the issue.

What happened?

OBAMA: Well, you know, I don't want to go over tit for tat what happened last week. I think it's fair to say that it's never been my style and never been my interest to run a race-based campaign. And my whole message has always been that I want everybody included in the broad coalition to bring about change.

I have dedicated a big chunk of my life to moving us beyond some of those old arguments. And I think the people of South Carolina responded yesterday in part because they don't want to go backwards. They want to look forward. And that's part of the reason why we did so well.

MALVEAUX: CNN has confirmed, multiple sources, that you have a major endorsement under way, Massachusetts senator Ted Kennedy. Obviously that's a very big deal for you. And does this perhaps signal that there's -- the Democratic establishment that seems to be turning in your corner, turning your way?

OBAMA: Oh, you know, Ted Kennedy has not announced that he's endorsed me.

MALVEAUX: You can make news. You can break news on CNN.

OBAMA: Ted Kennedy, you know, speaks for himself, and does so eloquently. So I can confirm that I've actively sought his endorsement.

I was honored to see Caroline Kennedy write a wonderful op-ed today in "The New York Times" invoking her father and talking about why she was supporting my campaign. But I'll let -- I'll let Teddy speak for himself.

(END VIDEOTAPE)

WHITFIELD: And we're actually going to be hearing that in about an hour from now.

Meantime, Suzanne Malveaux is on her way to American University, fight of the big Obama event. She joins us now by phone. So, Suzanne, he was a little reticent to, you know, kind of pump up these endorsements, but clearly his campaign, as he said, they have been reaching out to many, including Senator Kennedy. They have to mean a lot to him.

MALVEAUX: Hey, Fred. Absolutely.

We are heading towards that rally now at American University, just getting in. And obviously, I mean, it's a chaotic situation on the ground in D.C. First of all, I have to tell you that we've gotten -- messages from our colleagues saying the traffic is incredible, people are dancing in the streets. The kind of Obama mania that we've been hearing about. And we've actually been seeing, as we've been traveling with him, certainly as he arrived here in Washington.

Yesterday they were reticent to talk about it, because obviously they want the senator himself to make the announcement. But there were a lot of rumblings, and eventually we did ask him about it. They've confirmed it, and that's going to be a very, very big deal at American University today.

This really shouldn't be played down in any way. He really is a giant in the Democratic Party. It's quite a coup.

We know that the Clintons are very close to the Kennedy family. There's the famous photo of Bill Clinton with the late John F. Kennedy when Clinton was just a young student looking up at him. He admired him. He was obviously one of his heroes.

So, the Kennedy family and their relationship with the Clintons goes way back, as well as Ted Kennedy's relationship with Hillary Clinton. They fought a lot of difficult battles together, they've been in the trenches.

And one thing that the Kennedy endorsement really does for Barack Obama, it not only gives him a certain sense of gravitas with the Democratic establishment, but also, he's very significant when it comes to the Hispanic-Latino community. He has very strong ties, and that is something that's going to be very important for Barack Obama as he goes into the states of California and New York.

We saw that he didn't perform as well as he needed to among Latinos. And that is something that he needs to work on. With Ted Kennedy in his court, it's something that really gives him potentially a boost.

WHITFIELD: And Suzanne, what about the significance of American University there in northwest Washington? Why is this the platform for this coming together of, you know, what many believe is kind of American royalty and politics and, you know, this new representative of change, which has been his campaign?

MALVEAUX: Well, certainly, the late John F. Kennedy made a famous speech at American University, and it attracted a lot of attention. It's a place where history is made, and obviously it's in the nation's capital. The senator, Barack Obama, is here, as well as Hillary Clinton, for the occasion of the State of the Union. And that -- obviously they want to be seen and be seen in this kind of environment.

I asked him about it yesterday in my interview, how he -- if he was president, how he would describe to the American people the state of the union. And it was interesting.

He said the state of the people are strong, but the state of the government is weak. It's really been his theme, about change and bringing forth just ordinary folks and taking on the establishment, taking on Washington.

WHITFIELD: Suzanne Malveaux there, on her way there to American University in Washington, where in less than an hour from now it will be made official, Ted Kennedy endorsing Barack Obama. And as you heard Suzanne describing there, significant, too, for his campaign overall.

Well, still ahead this hour, he has worked inside the White House for four different presidents. Now he shares that expertise with us. We'll look to tonight's State of the Union and the race for the White House, talk a little bit more about those important endorsements for Barack Obama. That's coming up in about 10 minutes from now.

But first, we want to invite you to join CNN all this week for special coverage of the presidential candidates as they crisscross the country ahead of Super Tuesday. It is the CNN Ballot Bowl coming up next hour. Join us for live coverage of the candidates as they make their pitches to you.

Remember, CNN equals politics.

MARCIANO: Overseas now, a school hostage situation in rural Pakistan now confirmed over. Pakistani police telling us that hostage takers have released as many as 30 students and teachers they were holding inside a school. Local police also say previous reports of 200 hostages were wrong. The gunman had holed up in the school after a police chase -- Fred.

WHITFIELD: In Iraq, a roadside bomb kills five U.S. soldiers. That word coming in the last hour.

It happened north of Baghdad. It's an area that commanders say is one of the last al Qaeda strongholds in Iraq. Right now the military is moving in for a planned offensive.

(WEATHER REPORT)

MARCIANO: Well, Countrywide Financial a mortgage meltdown casualty. And now CEO Angelo Mozilo says he's forfeiting some $37.5 million in severance and other perks.

Well, despite the gesture, Mozilo will still be a rich man. He's keeping retirement benefits and deferred compensation worth more than $40 million. Countrywide once America's largest mortgage lender who ran into bad trouble with subprime loans. Mozilo was criticized over his lucrative payout after he was due to sell the company to Bank of America.

WHITFIELD: Well, the leader of the Mormon Church has died. Gordon Hinckley was 97. A spokesman for the Church of Jesus Christ of Latter-day Saints says that he had been in failing health for years. He attributed Hinckley's death last night to old age.

Hinckley led the church through a period of enormous growth. The Associated Press reports that presidential candidate Mitt Romney plans to attend Hinckley's funeral. Romney is trying to become the nation's first Mormon president.

MARCIANO: And in Greece, flags are at half staff. A state funeral is planned there.

The head of the Greek Orthodox Church has died of cancer. Archbishop Christodoulos led the church for 10 years. He is credited with easing centuries of tension with the Vatican. Greece has declared four days of national mourning. Christodoulos was 69.

WHITFIELD: Republicans on the road -- one candidate's news conference at a gas station. We'll tell you why and which campaign may be running on fumes.

(COMMERCIAL BREAK)

MARCIANO: Florida voters go to the polls tomorrow in that state's Republican primary. John McCain, Mitt Romney, Mike Huckabee and Rudy Giuliani all making last-minute appeals.

Here's CNN's Dana Bash.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: The Republican candidates for president are crisscrossing the state of Florida, with just one day left to campaign, to convince Florida Republicans that they should be the next nominee. And it is really a big difference between the approach that you're seeing from Mitt Romney, the former governor from Massachusetts, and John McCain, the senator from Arizona.

Romney is saying that, I am somebody who gets the economy because I have private sector experience. And John McCain is saying, no, I am somebody who is best to lead because I have national security experience and understanding of the world stage. And they're really being quite aggressive in going after one another on those issues.

Mitt Romney started even before the sun came up, really pointedly going at John McCain on the issue of his understanding -- or from his perspective, lack of understanding -- about the economy.

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: Senator McCain, as I said, is a terrific person, but as he's pointed out several times, he doesn't understand the economy terribly well. And I frankly can't imagine how you can have a president of the United States who doesn't have an understanding of how the economy works. I think it's time once again to make sure that you have a president who has actually had a job in the private sector and knows how the private sector works.

BASH: Mitt Romney making the case that he thinks that John McCain, in Washington, had some legislation, whether it's immigration or on climate change or even on campaign finance reform, that was not in keeping with conservative principles, so really going at John McCain's Washington experience.

On the other hand, John McCain, to put in a nutshell, what his argument is against Mitt Romney, it is, I did not manage for profit, I led for patriotism. He surrounded himself with a panel of national security experts. He did so in Jacksonville, Florida, reminding voters that that is a place he came back after he was a prisoner of war for years in Vietnam. And the point that John McCain is trying to make is that he does understand the economy, but he thinks right now national security trumps that.

SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: And, yes, the economy is important, and we've been talking about the economy. And I have led in managing this economy of this country, and I'm proud to have been part of the Reagan revolution that began the most -- the longest period of prosperity in American history. And I led and I didn't manage.

But the point is that our nation's security is our foremost obligation to our people. We all know that.

BASH: Now, as Mitt Romney and John McCain vie for the top spot here in Florida, and to try to get the very rich 57 delegates at stake here in Florida, don't forget about the former New York city mayor, Rudy Giuliani. He is somebody who was riding high in the polls here. He was really, really banking on having a strong finish in the state of Florida in order to propel him to the Super Tuesday states to make up for the fact that he is now 0-6, 0-6 in the presidential contest states.

But if you look at the polls, he is now actually trying to get third place, trying to beat out Mike Huckabee for third place. And the argument that he is making is that if you think John McCain is good on national security, if you think Mitt Romney is good on the economy, he's trying to tell voters, well, I'm good at both.

So, it will be interesting to see if Rudy Giuliani can survive and do better than expected here in the Sunshine State.

Dana Bash, CNN, Orlando, Florida.

(END VIDEOTAPE)

WHITFIELD: All right. More of presidential politics now.

Both parties locked in bitter fights. Neither side with a clear frontrunner. Joining us now, veteran White House insider David Gergen. Served as adviser to four presidents. He joins us now as a CNN senior political analyst.

Good to see you.

DAVID GERGEN, CNN SR. POLITICAL ANALYST: Thank you, Fredricka.

WHITFIELD: All right. Let's talk about endorsements first, because that really is kind of the big headliner of the day, at least on the Democratic side and Barack Obama. The Kennedys parting ways with this long-standing relationship with the Clintons to now endorse Obama, at least in the terms of Caroline and Senator Ted Kennedy.

How impactful is this?

GERGEN: Well, I think coming back to back with a South Carolina victory -- and that was much bigger than expected for Senator Obama -- the two back to back are really going to give him massive, positive press coverage for about four or five days in a row. And the real question is, will that coverage then sort of break the logjam in some of the big states where he's so far behind, especially in California?

He's been running 15 to 20 points behind in California. Will this, all this massive positive glow in the press, help him break that up? And I don't think we know that yet.

It's important that Senator Kennedy is actually going to go out and campaign with him, too. So that keeps that story going. You know, it gives, you know, you at CNN something to talk about for a long time. And it's very positive for him.

WHITFIELD: While the Kennedy endorsement, particularly Senator Kennedy's endorsement, really might appeal to the older voters, that Caroline would come out and actually draw parallels between Obama and her father, is that really going to help Obama when it comes down to the youth vote?

GERGEN: I think that piece in "The New York Times," which it was not only a Kennedy speaking, but it was in the voice of a Kennedy. You know, one wondered if the fine hand of Ted Sorensen were somewhere in that piece. I'm sure he took a look at it somewhere along the way.

And it was an eloquent piece that I do think speaks to the young. But Obama already appeals to that. I think it's that combination again that makes such a difference.

Now, in defense of the Clintons, they did get their support of a number of Kennedys. But this has rocked them back, and they've got to now find their own strategy.

I might say, I think Hillary can do that. She is on the flip side of where she was coming in to -- coming out of Iowa when she had the show some vulnerability, some of her personal side. And she did that so effectively in New Hampshire. Now what she has to do is show how tough she is, how resilient she is. She has to basically shed her husband, put him over on the side in terms of public visibility, and come back as a fighter and take it back from Obama.

WHITFIELD: And you...

GERGEN: And she's a fighter.

WHITFIELD: ... do see her campaign shedding the president, because Senator Kennedy actually made the phone call to former President Clinton saying, you know what, I'm going to, you know, go over to the Obama side now. You haven't simmered down on your kind of behavior, which, you know, is lightning rod behavior.

GERGEN: Well, it was lightning rod behavior. And that, too, has gotten a lot of press play which has been unfortunate for Mr. Clinton.

But remember this, she is a fighter. She's very -- she's personally resilient. What she has to show voters is that she can take it back on her own, that she does not need her husband.

This is good time for him to get laryngitis. And then for her to sort of move up on -- if she takes California on her own...

WHITFIELD: Yes?

GERGEN: ... that will erase some of the sense we've had from South Carolina.

WHITFIELD: And quickly, on the Republican side, Giuliani, Florida, must win for him? If he doesn't win this, is he dead in the water?

GERGEN: Absolutely. I just don't see how he goes on.

He's bet the whole table. You know, all his stakes, bet the farm on Florida. And right now, as you say, he's fighting for third place.

WHITFIELD: Yes.

GERGEN: On the eve of Iowa he was ahead in Florida. Now it's 31 Romney, 31 McCain, and 16 Giuliani in the polls.

WHITFIELD: And quickly, let's talk about the president.

GERGEN: Sure.

WHITFIELD: This is the seventh and perhaps final State of the Union address. Is this mostly emotional for the president, or might we grab any kind of headlines about the economy, about Iraq from him tonight?

GERGEN: Well, I tell you, he may seem irrelevant during this campaign, but he has two really important things to do before he leaves office. One is to sort of fix -- do the best he can to fix Iraq. But secondly, this economic issue is very serious.

Yesterday, for the first time in 23 years, the head of the International Monetary Fund called for governments around the world to loosen up on their spending, to spend more. The International Monetary Fund has always been against that. They've always been against using that kind of device.

They see this as very serious, spreading around the world. John Thain, head of Merrill Lynch, said the mortgage -- subprime mortgage problem is spreading on to the credit card and consumer loans.

WHITFIELD: Yes.

GERGEN: This is big-time stuff. And the president has got to remain on top of this for the rest of his term.

WHITFIELD: David Gergen, thanks so much. Good to see you.

GERGEN: Thank you. OK. Take care.

WHITFIELD: And we invite you to stay with CNN. Next hour, special coverage of the presidential candidates as they crisscross the country ahead of Super Tuesday.

It is CNN's Ballot Bowl, the opt of the hour.

MARCIANO: Still ahead, medical care. No appointment necessary. Your health clinic at your local pharmacy. Examining the pros and cons, that's next.

(COMMERCIAL BREAK)

WHITFIELD: Well, has this happened to you -- you can't find a doctor when you need one? So a lot of pharmacies now have health clinics that can treat you right there on the spot.

Medical Correspondent Elizabeth Cohen has your "Daily Dose."

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: I'm going to check your temperature.

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT (voice over): Sonya Atala (ph) is feeling lousy.

UNIDENTIFIED FEMALE: I came in because I had headache and fever, and I had watery eyes.

COHEN: But instead of visiting her doctor, she went to this clinic in her neighborhood pharmacy. At Convenient Care Clinics you don't need an appointment, and new patients are always welcome. Sometimes you have to wait, but not always.

UNIDENTIFIED FEMALE: She took me right away.

COHEN: Right now there are more than 900 clinics like this in 30 states, and another 700 are expected to open this year. That's according to the Convenient Care Association, an industry group.

(on camera): What kind of things to people come to see you for? AMY WARNER, FAMILY NURSE PRACTITIONER: They see us for sore throats, ear pain, minor skin problems.

COHEN (voice over): The clinics are kind of like fast-food restaurants. The menu is basic and the prices are set. The average visit costs about $60.

Most clinics take insurance, but you don't need it to be treated. Most don't have doctors on site. Usually these clinics are staffed by nurse practitioners. That's one reason the American Medical Association has been critical of in-pharmacy clinics, but that's changing.

DR. NANCY NIELSEN, PRESIDENT-ELECT, AMERICAN MEDICAL ASSN.: Our only concern about those, frankly, is what is the quality of care that's being delivered in those clinics? And if the quality of care is good, then that's fine.

WARNER: We tell them how important it is to have a medical home. We're not a substitute. We're not a replacement.

COHEN: For many it's a convenient way to get care quickly when they're feeling sickly. Elizabeth Cohen, CNN, Atlanta.

(END VIDEOTAPE)

WHITFIELD: And, to get your daily dose of health news online, logon to our website. You will find the latest medical news, a health library and information on diet and fitness. The address, CNN.com/health.

Bottom of the hour. You are in the newsroom. I'm Fredricka Whitfield in for Heidi Collins.

MARCIANO: And, I'm Rob Marciano in for Tony Harris. Good morning, once again. Big dealings tonight in D.C., President Bush delivers his final state of the union address tonight. One big focus, urging Congress to give a jolt to the sluggish economy. Live is CNN's Brianna Keilar on Capitol Hill. Brianna, what are you hearing the President is going to talk about tonight?

BRIANNA KEILAR, CNN CORRESPONDENT: Well, predominantly he's going to be talking about the economy, urging Congress to get going with this economic stimulus package. He's also going to be talking about the war in Iraq, urging Americans to be patient. We're not expecting to hear any major announcements on troop withdrawals or anything like that tonight.

But, he's also going to be talking about earmarks, earmarks, of course, being the money that members here of Congress take back to their home district, to their home states for pet project there. And what he's expected to do is announce some pretty aggressive earmark reform.

He's expected to tell Congress, when you send me those spending bills that fund the federal government later this year, you better cut the earmarks in half or I'm going to veto it. The other thing that he's going to do -- just to give you a sense of how earmarks work. When there's a spending bill, you've got some legally binding language in it.

And, you might be kind of surprised to know that earmarks are not actually -- many earmarks are not actually in that legally binding language. They're kind of in a second section, that kind of explains where the money is going.

Now President Bush is expected to issue a presidential order tomorrow saying that if those earmarks are not in that legally binding language they don't need to be honored, they don't need to be paid for. This is a pretty big deal, Rob, and it's something that could ruffle the feathers of Democrats and Republicans here on the Hill.

MARCIANO: No doubt about that. Money, earmarks. Let's talk about other money. There's supposed to be a bunch of money going to the American consumer, this economic stimulus package. Sounded like a good idea at first, everyone was applauding. But, getting some push back now on Capitol Hill?

KEILAR: Well, at this point the House is taking this up tomorrow. They're expected to pass this tomorrow. But, the Senate still has to come to an agreement on this package. And at this point, there are several Senate Democrats, as well as at least one moderate Republican who are talking about adding unemployment benefits, talking about adding food stamps.

The question is, how far will they go with this, Rob, because there's so much pressure on them to move this along?

MARCIANO: All right. Good information. Brianna Keilar live for us on Capitol Hill. Thanks, Brianna.

MARCIANO: Our coverage of the President's State of the Union address gets under way at 8:00 Eastern. And, if you can't watch it right here on TV, catch it online, CNN.com/live.

WHITFIELD: Got lots of options there. All right. Testing airport security. A CNN exclusive, we follow the path of a phony bomber as he tries to get fast screeners. A security watch straight ahead.

(COMMERCIAL BREAK)

WHITFIELD: A CNN security watch now, and a critical lesson for airport screeners. Investigators strapping on phony explosives trying to figure out and fix safety threats. CNN's Homeland Security Correspondent Jeanne Meserve has our exclusive report.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: This is a back support. I am putting a detonator into the plastic explosive.

JEANNE MESERVE, CNN CORRESPONDENT: It isn't an actual improvised explosive device, just a very good copy that should set off alarms just like the real thing. The very latest intelligence has been used to create it and conceal it.

UNIDENTIFIED MALE: Slide it in to get it deeper in there so that it is more difficult -- it's concealed better.

MESERVE: This undercover team from the Transportation Security Administration applies a chemical that mimics explosive residue. Then they head for Tampa international airport. No one knows they're coming until the airport's top security official gets a call five minutes before the test begins.

UNIDENTIFIED MALE: But, I would ask that you not speak to anyone on your staff to alert them of this test.

MESERVE: At this checkpoint the tester is wanded and patted down, right where the fake IED is concealed. But the screener does not catch it. If this were a real bomb, it just made it past security. TSA won't give exact numbers, but screeners fail these tests more often than they pass them.

DAVID HOLMES, TSA ASSISTANT ADMINISTRATOR: We design our tests, not so much to indicate or show highlight performance or absence of performance at a particular airport, but we're highlighting where the vulnerability exits at the airport.

MESERVE: At Tampa, the team breaks cover immediately to show the screener his mistakes.

UNIDENTIFIED MALE: Have you do it again. And we'll go over everything, so I can show you exactly what you did wrong.

MESERVE: Again, wanding and patting, misses the fake IED. Only when the tester tells the screener to go a step further and lift up the shirt does the screener find it.

UNIDENTIFIED MALE: I see it now.

MESERVE: Apparently aware of the consequences if this had been the real thing, the screener appears devastated. But every screener at this checkpoint will be taught today's lesson.

UNIDENTIFIED MALE: And, we all have to be sharp to stop them from coming into the sterile area. You know that.

WHITFIELD: Critics may see this as yet another reason to be concerned about screener performance, but TSA says that misses the point. It conducts thousands of these tests every year with a goal of improving screener performance, plugging holes in the system, and making us safer. Jeanne Meserve, CNN, Washington.

(END VIDEOTAPE)

WHITFIELD: Be sure to stay with CNN day and night for the most news about your security.

MARCIANO: A fire warning in effect right now for about half the state of Oklahoma. The fire threat driven by strong winds, low humidity and dry vegetation. A grass fire destroyed a former school building in Chickasha. That was just one of several fires across the state yesterday.

Another fire burned a house and a barn in the northwest part of the state. No injuries have been reported from any of the fires.

WHITFIELD: Recovering after a slide. This morning the airport in Spokane, Washington, is back up and running. It shut down yesterday because a Southwest Airlines plane skidded off the runway. Flight 485 was passing to the gate after a safe landing, but the wheels slipped in the snow. So, listen to what it was like to be that plane.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We felt the thump, thump, thump, thump, thump and then the plane came to a stop, and we all realized that something was probably wrong.

UNIDENTIFIED FEMALE: You realized that he wasn't going to make the corner, it was just too slick an he just slid off into the snow.

(END VIDEO CLIP)

WHITFIELD: So, about 120 people were on board that flight. No one was hurt.

MARCIANO: That old, thump, thump, thump, thump, thump.

WHITFIELD: That will scare you.

MARCIANO: That gets you nervous every time.

WHITFIELD: That's not a good sound on a plane. You know something is wrong.

MARCIANO: That's for sure. A lot of snow there in Spokane. The show must go on. It did, complete with the red carpet, and more importantly, the stars showed up.

WHITFIELD: That was the story last night at the Screen Actors Guild Awards. Folks finally got to dust off all that stuff in the closet, like the glitzy stuff. You among them. You looked ravishing, Kareen.

KAREEN WYNTER, CNN CORRESPONDENT: Thank you. Thank you so much. Rob and Fred, I hope you tuned in. It may be the only award show this season. So, I hope you sat back got comfortable and just took it all in last night. It was an unusual Screen Actors Guild Award show last night, in addition to the on going writer's strike.

There were three winners who were actually a no show. One actor dedicated his award to the late Heath Ledger, and there was the rain. But through it all, there were some stand-out performances and performers.

(BEGIN VIDEOTAPE) WYNTER: For one night at least, glitz and glamour returned in Hollywood. Finally an award show with star power. Unlike the Golden Globes and the upcoming Oscars, the SAG Awards didn't face the threat of picketing writers. Instead, the Screen Actors Guild, which supports the strike had their blessing, and everyone was out en force on the red carpet.

JAMES GANDOLFINI, ACTOR, SOPRANOS: It's been 10 years, it's an honor. That's all I can say. Thank you.

Inside the Shrine Auditorium it was a sweet swan song for the Sopranos which swept the drama category. Best ensemble and honors for James Gandolfini and Eddie Falco. And TV's comedy The Office won the ensemble award, while 30 Rock garnered trophies for Alec Baldwin and Tina Fey.

TINA FEY, ACTOR, 30 ROCK: It's really encouraging, and also anything that just reminds people that we have a show. I'm all for it.

WYNTER: Both supporting actor honorees were first time winners. Ruby Dee for her work in American Gangster, and Javier Bardem for his performance as the cold blooded killer in No Country For Old Men.

JULIE CHRISTIE, ACTOR, AWAY FROM HER: It's lovely to receive an award from your own union, especially at a time when we're being so forcefully reminded how important unions are.

WYNTER: Julie Christie also took home her very first SAG Award for her work in Away From Her, while Daniel Day-Lewis' performance as an obsessed oil man in There Will Be Blood earned him best actor honors. Day-Lewis used his acceptance speech to honor the late Heath Ledger.

DANIEL DAY-LEWIS, ACTOR, THERE WILL BE BLOOD: I like to dedicate this to Heath Ledger.

WYNTER: The Coen brothers, No Country For Old Men solidified it's Oscar prospects by winning the biggest prize of the night, outstanding ensemble.

JOSH BROLIN, ACTOR, NO COUNTRY FOR OLD MEN: As there were 47 people in this cast, each and every one making this the movie that it has become.

(END VIDEOTAPE)

WYNTER: So, was just a magical and golden night in Hollywood. Now, actors and actresses and entire casts, they weren't the only ones rewarded. The awards for best stunt ensemble in a movie went to The Bourne Ultimatum, and best stunt ensemble in a TV series, of course, 24. Fred and Rob?

MARCIANO: You're still glowing. Is that fun?

WYNTER: You know, Rob, I have to tell you. It was my first award show, the whole red carpet, the glitz and glamour, it was maddening, it was chaotic, but it was just the best time. Especially, when Brad Pitt and Angelina Jolie -- they made their grand entrance, and I swear, the earth must have moved, the fans went nuts, the paparazzi, the pictures, everything. So, it's something you have to experience. And, of course, I had a ball.

WHITFIELD: You know, I heard some comments being made about Angelina, sine you brought her up, her gown, I mean, it was rather, I guess, roomy. So, there's been some speculation, is there something else going on in their lives?

WYNTER: You know why it was so roomy? She had all ten kids under there. They were hiding, and they were playing. And the two on their way. No, let's be serious. We don't know. There are rumors that she could be expecting with twins. We haven't, of course, confirmed. Her reps aren't saying anything.

So, let the suspense continue. We all want to see. We'll know in about nine months, right?

WHITFIELD: Maybe before that, right?

WYNTER: Maybe before.

WHITFIELD: All right, Kareen. Thanks so much.

MARCIANO: Good to see you.

WYNTER: Good chatting with you.

MARCIANO: Well, making a difference in Iraq.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Everybody just loves him. I mean, takes a little edge off, I guess. Makes you feel like you're back at home.

(END VIDEO CLIP)

MARCIANO: A special sergeant on patrol helping U.S. troops deal with stress.

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MARCIANO: A pair of special sergeants making their mark in Iraq. You first met Budge and Boe in December as they prepared for their deployment. Now, the two especially trained dogs are in Iraq providing support for U.S. troops. CNN's Michael Holmes has more.

(BEGIN VIDEOTAPE)

MICHAEL HOLMES, CNN CORRESPONDENT: Boe is out for a walk, but she's no ordinary dog and her daily walks aren't ordinary either, because, you see, Boe is based at Camp Speicher in northern Iraq.

UNIDENTIFIED MALE: A couple of places we've been they had dogs that they adopted. Everybody just loves them. I mean, takes a little edge off, I guess. Makes you feel like you're back at home.

HOLMES: That's the idea. You see, Boe, or more accurately First Sergeant Boe, 85th medical detachment, is a combat stress dog flown in from the U.S. after months of specialist training. And she's good at what she does.

UNIDENTIFIED MALE: Good dog, Boe.

CAPT. JOY BALDWIN, U.S. ARMY SOCIAL WORKER: It's almost like she smells out their stress, and if a soldier is very stressed she will go up to them and calm down her behaviors and just relax in front of them.

HOLMES: Boe's primary job is to be with soldiers clinically stressed either by problems back home, or the things they have seen and experienced on the battlefield. She has a secondary role, though, wandering the base and simply being there for any soldier who passes by.

UNIDENTIFIED MALE: People love dogs. Regular dogs are just happy to see you. When they come up they're excited to see you. Makes you feel good inside.

BALDWIN: Dogs have this unique way of not judging humans. And instead of being someone that you have to be afraid of what they think about you, you can just kind of relax around the dog and allow them to absorb your stress like a giant sponge.

HOLMES: And, it seems to work. First Sergeant Boe provides a few laughs as well when soldiers notice she out-ranks them.

UNIDENTIFIED MALE: I don't know how she got promoted so fast.

HOLMES: Boe has a partner, budge, currently based further north in Mosul. Captain Baldwin hopes more dogs will be posted to Iraq and travel to other bases. Judging by the soldiers' reactions to Boe, they'll be welcome recruits.

UNIDENTIFIED MALE: Well, it brought a smile to my face. So -- and that was good.

HOLMES: Michael Holmes, CNN, Tikrit, Iraq.

(END VIDEOTAPE)

WHITFIELD: News just coming in right now. Tony Rezko, a name that few people knew, but suddenly became -- put in national spotlight because of his link to Democratic presidential candidate Barack Obama. Well, now the real estate developer in Chicago has been arrested following a government motion to revoke his bond.

Rezko, you recall that his name was brought up one of the presidential debates, Senator Hillary Clinton referred to him as a slum lord, and that Obama had dealings with this slum lord, Rezko. Well, he had pleaded not guilty to federal charges of conspiracy, influence peddling and demanding kickbacks from companies seeking Illinois state businesses. But the headline here that he has been arrested after the government has decided to revoke his bond. So when we get more information on this we'll be able to bring that to you.

Meantime, stock prices have made a lot of people pretty nervous lately, but there is reason to smile about prices at the gas pump. We haven't been able to do that in a while.

Susan Lisovicz joining us now.

SUSAN LISOVICZ, CNN CORRESPONDENT: We can smile. We can smile for a short period of time.

WHITFIELD: Really short I'm sure.

LISOVICZ: Fredricka, oil prices are falling on fears that a slowing economy will hurt demand. And that has translated into some relief for drivers. According to the Lundberg Survey, gas prices fell more than nine cents over the last two weeks. The national average for regular is now below three bucks a gallon. But, you'd better enjoy it while it lasts. The survey's author expects prices to remain at this level for a month. Then they're expected to rise as we head into the spring, which is when people typically start driving more.

And prices at the toll booth are on the rise as well. The price to cross the George Washington Bridge here in New York is going from $5 to $8. And it's not --

WHITFIELD: Oh my God. That is huge.

LISOVICZ: You need a credit card, that is for sure. You know -- the E-Z Pass.

WHITFIELD: Yes.

LISOVICZ: You really need to have some cash with you. "USA Today" points to increases in Pennsylvania, Indiana and California, among other states raising their toll prices as well -- Fredricka.

WHITFIELD: And so, while all these other prices are going up, so will food prices.

LISOVICZ: And that's something we've talked about for a long time. I'm not sure that candy is considered food in some family's definition, it certainly qualifies in mine. A big reason is the energy consumed in food preparation. And the case in point is Hershey's. Just in time for Valentine's Day, a 13 percent wholesale price hike. The 13 percent increase effects about a third of the Hershey's product line. Hershey's says commodity and energy cost prompted the move. Hershey's shares, by the way, are up three and a half percent.

But home sales continue to go in the other direction. In fact, posting their biggest drop on record. The December drop worse than expected. The Commerce Department says sales in December of 2007 fell 41 percent below the level a year earlier. It was the weakest showing for home prices, meanwhile, in 26 years. The silver lining? Inventory of unsold homes fell and that's an important first step if there is to be a recovery.

Checking the numbers. Well, there is a recovery in this volatile session. The Dow Industrials remained positive, up 64 points. But it's been topsy-turvy. The Nasdaq Composite, meanwhile, is up ten points or nearly half a percent. The national stocks higher, hopeful investors are, that the Fed will cut rates again on Wednesday. And of course, that's just one of the many stories we're following this week -- Fred.

WHITFIELD: Well we're going to hope for something uplifting. Because, definitely a downer with candy, you know, sales prices going up.

LISOVICZ: And this -- and right before Valentine's Day.

WHITFIELD: Lets talk about what is really important here.

LISOVICZ: That is -- exactly. Got to feel good.

WHITFIELD: OK. Thanks a lot, Susan.

MARCIANO: I can just hear the guys, hi, honey, the chocolate was way too expensive.

WHITFIELD: I can't get it for you this year.

MARCIANO: Coming up at the top of the hour, it's the CNN "Ballot Bowl" from noon to 1:00 Eastern. Join us for live coverage of the candidates as they make their pitches to the voters. That's ahead.

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