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Stock Market Check; El Chapo Capture; El Chapo's Flirty Relationship; Powerball Host Sam Arlen Speaks Out; Italian Police: Breakthrough in Death of American Citizen; Oscar Nominations Are In. Aired 9:30-10a ET

Aired January 14, 2016 - 09:30   ET

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

[09:30:00] CAROL COSTELLO, CNN ANCHOR: For his mother have been pushing for the video to be released as part of a wrongful death suit, arguing the video shows the teenager was running from police and never turned towards the officers.

And good morning. I'm Carol Costello. Thank you so much for joining me.

To Wall Street now and the opening bell. The bell just rang. Traders looking at a turnaround this morning, bouncing back after a brutal day of trade on Wednesday and shrugging off fears over slowing growth in China. Oil prices, as you know, hit 13 year lows. They seem to be shrugging that off too.

Let's check in with Christine Romans and Alison Kosik. Both are following the story.

Alison, I want to start with you.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: We are seeing some stabilization, Carol, this morning, but don't get too excited. We have seen this pattern before where we see green arrows and then we see those gains fizzle out by the close. But today there may be something that these gains can hang their hat on and that is earnings season. At least the first company reporting. JP Morgan Chase giving its corporate report card to Wall Street, beating expectations.

But the worry about overall earnings season sill is on the mind of investors because investors are bracing for the -- for a recession in earnings, meaning the first back to back earnings since 2009 where you see a decline in profits.

Also on Wall Street's mind, a list of worries, I should say. Oil prices dipping to a level yesterday that we haven't seen since 2003. Great for consumers filling up their cars, but bad for companies that are looking to lay off more people and companies that could actually go out of business.

So where are we today? We're two weeks into the trading year, Carol, and already the Dow is down 7 percent for the year. The S&P 500 down 7 percent for the year. The Nasdaq down 9 percent. So you're seeing all of the major indices in a correction, meaning 10 percent off a recent high. Hey, investors are saying, this could be a great buying opportunity.

Carol.

COSTELLO: So, Christine, is it a great buying opportunity?

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Look, when something's on sale, that's the best time to buy it, right?

COSTELLO: Yes.

ROMANS: If you look at some of the brand name stocks, some of the stocks, Carol, that are probably in most people's 401(k)s, these widely held names like Apple, like Netflix, even Wal-Mart, Goldman Sachs, they're down. Look at how much they're down. These are in a bear market. They've had a real big decline here. So you start to hear people talking about how much money these companies are making, what their outlook is for this year and whether those are attractive stocks to buy.

It has been a pretty brutal training week and a half. No question here. Markets down 7 percent in the first week of -- you know, already year to date. That's never a good sign. There's a lot going on in the rest of the world that has people concerned. China, what China is doing with its currency, weakening its currency. Global growth concerns. But the U.S. economy fundamentally looks like it remains pretty solid here. So that's kind of the divergence here.

What should you do if you're thinking about buying stocks? Well, if you're really close to retirement, you should not have all of your portfolio in the stock market. You've heard me say it a million times. The younger you are, that's where the opportunities come from, pullbacks. But over time, if you buy consistently, at regular intervals, you tend to do well in the stock market, Carol. That's just the way history has shown.

COSTELLO: All right, Christine Romans, Alison Kosik, thanks to you both.

Still to come in the NEWSROOM, new details on El Chapo's capture. Did flirty texts messages help nab the drug lord?

(COMMERCIAL BREAK)

[09:36:48] COSTELLO: New details this morning about the six month hunt for El Chapo. U.S. officials revealing they were watching Sean Penn well before this infamous meeting back in October. At the same time, Mexican authorities were tracking actress Kate del Castillo and flirty text messages between Castillo and El Chapo that may have led to his capture. After their meeting, El Chapo wrote to her, quote, "I'm more exciting about you than the story." The actress later tells the drug lord, quote, "you make me blush."

Nick Valencia is in Mexico City with more.

Good morning, Nick.

NICK VALENCIA, CNN CORRESPONDENT: Good morning, Carol.

Joaquin "El Chapo" Guzman is said to be one of the most ruthless killers and criminals in the entire world, responsible for tens of thousands of deaths here in Mexico. But in recently released text messages with the Mexican actress, we see a bit of a softer side. Ultimately it may have been love that brought him down.

(BEGIN VIDEOTAPE)

VALENCIA (voice-over): CNN is learning the shocking visit by these two famous actors to the most infamous drug lord in the world came to the attention of U.S. law enforcement long before their October encounter. This as sources also say U.S. officials were alerted about Sean Penn's meeting with Joaquin "El Chapo" Guzman soon after he arrived.

LORETTA LYNCH, ATTORNEY GENERAL: We're tremendously gratified that the capture was successful. And we look forward to having El Chapo face justice in an American court.

VALENCIA (voice-over): Mexican officials say they intercepted text messages between El Chapo and Mexican actress Kate del Castillo dating back to September of last year. El Chapo writing, "I really want to meet you in person, friend." The actress replies, "well, me too. You are the best of this world." Text, El Chapo, "we will be great friends. I will take care of you, more than my own eyes." Castillo later asks El Chapo's associates to have Penn accompany her on the trip, to which he writes to them, "have her bring the actor. And if she sees the need to bring more people, let her bring them as she likes."

After the meeting in Mexico Castillo texts, "I haven't been able to sleep much since I saw you. I'm very excited about our story. It's true. It's the only thing I can think of." On Wednesday, the actress took to Twitter defending herself, writing, quote, "many have chosen to make up items they think will make good stories and that aren't truthful. I look forward to sharing my story with you."

Since the drug lord's capture Sunday, Guzman has been moved from cell to cell, Mexican officials hoping that will ensure the two-time escapee from turning into a fugitive once again.

(END VIDEOTAPE)

VALENCIA: Thanks to that meeting with Penn, del Castillo and El Chapo, Mexican authorities had a good lead on the whereabouts of El Chapo back in October but they didn't want to pull the trigger because they were worried that the two actors would be caught in the cross-fire. Carol, it took them an extra three months to finally pin him down.

Carol.

COSTELLO: Amazing. Nick Valencia reporting live from Mexico City this morning.

Those flirty texts between El Chapo and Kate del Castillo got me thinking, a, why would El Chapo text an actress when he had to know it would lead to his capture, and, b, why would this actress, Kate del Castillo, play along? We've all heard women like bad boys, right? But El Chapo is suspected of smuggling 500 tons of cocaine into the United States and Mexico. And let's not forget the tens of thousands of murders linked to him.

[09:40:11] So let's talk about this with Dr. Jeff Gardere.

Welcome, Dr. Jeff.

JEFFREY GARDERE, PSYCHOLOGIST: It's always a pleasure. Thank you, Carol.

COSTELLO: OK, let's start with El Chapo --

GARDERE: Yes.

COSTELLO: Because why would he put himself out there like that? I mean you saw his texts, like if the -- if the actress wants to come, she can bring a whole bunch of other people. He had to know that would put him in danger.

GARDERE: What does a man who has everything really want at some point? Something that he really can't have. And he really couldn't have her because he was on the run in this way. But then he felt, well, the possibilities were there by perhaps doing this movie. It is the forbidden fruit. Let's face it, he could have had anyone that he wanted, you know, brought in to him.

COSTELLO: Exactly.

GARDERE: But this particular actress, or an actress in general, someone who's as famous as this woman, normally he couldn't have. So I think he fell in love with the idea of falling in love with that forbidden fruit.

COSTELLO: Interesting. OK. See -- OK, as for her text messages to El Chapo, some publications have characterized them as flirty. Other publications have said they were more paternal in nature, like she looked upon him as a father figure. What do you think?

GARDERE: I think they were just strictly emotional. So they could have been flirty. They could have been paternal. There certainly, I think, was a lot of fantasy there. Perhaps some longing. But you have to understand that del Castillo had written to him once before and saw the potential in him and had asked him, had implored him to become this trafficker of human rights instead of drugs. So by seeing that potential, he may have fallen in love with the fact that this is like beauty and the beast. She sees the true inner beauty of who I am as El Chapo. And let's not forget --

COSTELLO: So on some level she knew he was evil and yet this beautiful Mexican actress is telling him, no, you could be a great guy (ph).

GARDERE: And perhaps he really feels that -- in one interview he says, I'm not a violent person. So she understands me like no one else understands me. And let's not forget, she may not be the only one who's enamored by him. A number of people, large populations of people in Mexico, especially in his home town, see him as being a Robin Hood. They trust him more than they trust the Mexican government.

COSTELLO: OK. So her -- her most recent text said, people don't understand my communications with this man. What do you think Castillo meant by that?

GARDERE: It could mean anything, but I would see that as she has a way to communicate and get to his inner soul like no one else can and perhaps can give the untold story of El Chapo Guzman that no one else can possibly get. So she feels perhaps a connection but she knows that she owns something that perhaps no one else has a right to.

COSTELLO: Well, it's just -- it's hard to like -- I don't know, it's hard for me to come to the conclusion that there could be any justification for her communicating with this man in this particular way and not helping authorities to capture him.

GARDERE: When we're talking about love, we're talking about emotion. And we're not always talking about rational thinking. Thinking from the heart, not necessarily from the mind.

COSTELLO: Well, Dr. Jeff Gardere, always interesting talking with you. Thank you so much.

GARDERE: My pleasure, Carol.

COSTELLO: Still to come in the NEWSROOM, he's got your fate in his hands. We'll talk to the man who makes Powerball dreams come true, next.

(COMMERCIAL BREAK)

[09:46:46] COSTELLO: Chances are, if you bought a Powerball ticket, you know who this man is.

(BEGIN VIDEOCLIP)

UNIDENTIFIED MALE: ... tickets. Good luck. Let's play some Powerball. First number down is 8. And right after that, America, we have the number 27.

COSTELLO (voice-over): Yes, the man who last night held your dreams of becoming a billionaire in his hands. Yes, he held those dreams, but he also crushed many of them. So, what's it like with all that pressure?

(END VIDEOCLIP)

COSTELLO (on camera): I'm joined now by Powerball host Sam Arlen. Welcome, Sam.

SAM ARLEN, POWERBALL HOST: Good morning, Carol. Glad to be here with you.

COSTELLO: First, oh, I'm so glad you're here. So, first of all, can you believe that the jackpot was that large?

ARLEN: It's unbelievable. It was such ride for us here. I mean, it was an incredible, incredible jackpot last night. You know, world record breaking. People from all over the world were paying attention and were excited about the game and last night's jackpot. So yes, what a wild ride.

COSTELLO: Okay, so when you went out on stage, were you a little nervous, you know, considering that people all over the world were watching you?

ARLEN: Just a little bit. Just a little bit. Yes, no it was - it was a - yes, I was a little more nervous because I knew there were a lot more eyes on me and the world was watching. I wanted to make sure I got those numbers right. But, you know, also it was just another day at the office. We always, you know, strive to do a really good job. So, you know, in some respects it was a little more...

COSTELLO: It was just another day at the office? Come on.

ARLEN: Well, it - it was more pressure for sure. No, I certainly - you know, I was in the tux and there were a lot of media there and a lot of people watching in the studio so it felt different but, you know, I was still as focused as ever and it was fun. You know, I mean, what an opportunity.

COSTELLO: Well, see, here is what I would worry about, that I would somehow drop one of the -- what do you do when you drop one of the balls, does it disqualify that number?

ARLEN: Well see, thankfully I don't have to touch the balls or handle the balls at all, I get to just stand there, smile and call the numbers like I see them. Some other people have to do all of that. I'm grateful for that part.

COSTELLO: So, are there safeguards in place? Because what if the machine would jam?

ARLEN: Yes, I mean, you know, there's - there's a lot of safeguards in place. And like I said, you know, I just -- my job is to come out there and, you know, just host it, and I have the easy part thankfully. There are a lot of very fine people working behind the scenes who are handling all the security and all of that, and there's a lot of procedures in place.

COSTELLO: Wait, wait. Tell us about the security because we want to know a little -- give us a little behind the scenes kind of thing. So, do they, like, test the machine before you go on the air? What was the security like? Tell us -- give us the dirt, Sam.

ARLEN: And see this is where - I -- and because I just kind of -- you know, I do my thing on air. I don't do all of that part, so I don't really - you know, I can't speak to all of the procedures in place because I don't handle that part.

But you know, yes, there was -- last night there was a lot of security there and additional security just because, you know, of the high jackpot in terms of making sure, you know, the building and all of that was secured, which was nice.

But yes, I can't - you know, I don't do the ball security stuff so I can't really talk to that.

[09:50:00] COSTELLO: So okay, the numbers are drawn and there's more than one winner. Actually, and there's some 80 winners of lesser amounts. So when you draw those numbers, do you think of who might be the winner? Does that go through your mind?

ARLEN: Absolutely. Absolutely. I'm thinking, you know, as I'm hosting the draw I'm thinking about, you know, everyone out there sitting with their tickets in their hand watching, hoping and praying that their numbers are going to come up. So I'm thinking about, you know, as the draw's happening possibly changing someone's life, you know. And I'm hoping that we have a winner. That's why we do this game. So you know, for me it's incredibly exciting to see that, you know, at least one person, it looks like multiple people probably won last night. So incredibly exciting from my end.

COSTELLO: All right. Sam Arlen, thanks for being with me.

ARLEN: Thank you.

COSTELLO: You're welcome.

(BEGIN VIDEOCLIP)

COSTELLO (voice-over): Checking some other top stories for you at 50 minutes past. State television Tehran airing video of an American sailor apologizing for wandering into Iranian waters. It's not clear whether the soldier is speaking under duress when he apologizes for what he calls a mistake and a misunderstanding. The video also shows the sailors with their hands up as they're detained despite White House claims the Iranians were not hostile.

Search teams continue to scour the French Alps this morning for possible victims of a deadly avalanche. Officials say two teenagers and a Ukrainian skier were killed when the fast moving tower of snow came rushing down a closed ski slope. Three others were hurt.

Also new this morning, police in Italy announce a breakthrough in the death of American Ashley Olsen. They now have a suspect in custody and say physical evidence puts him inside her Florence apartment where she was strangled.

(END VIDEOCLIP)

COSTELLO (on camera): More now from journalist Barbie Nadeau, she's the Rome bureau chief for "The Daily Beast." Hi, Barbie.

BARBIE NADEAU, ROME BUREAU CHIEF, THE DAILY BEAST: Hi there. Yes, this morning the prosecutor in the case announced that they have arrested and in custody a 27-year-old man from Senegal named Cheik Diaw. He was arrested overnight and his DNA was taken and it tested positive to two crucial pieces of evidence found in Ashley Olsen's apartment. One was a condom, the other was a cigarette.

The prosecutor also told reporters in his press conference this morning that there was no erotic sex game gone wrong, but in fact that the two, according to their evidence, had had consensual sex. It was not a hostile situation in his words. She also had two fractures to her cranium and she was strangled. The cause of death still remains strangulation, but the prosecutor did not rule out that those fractures to her cranium didn't somehow play a role.

What we don't know, though, is how things went so desperately wrong from what seemed to be obviously a consensual situation that ended in murder. I think those will come as Diaw gives more and more information, more and more testimony. But the case is considered right now he's the only suspect. The case is far from closed. The investigation is still going on to see exactly what happened that killed Ashley Olsen.

We also expect that her funeral will be on Friday here in Italy. She's -- her family has chosen that she should be buried in Italy because it was, of course, a place she came to start her life over and find happiness, as temporary as that ended up being, Carol.

COSTELLO: All right. Barbie Nadeau, reporting live from Italy. I'll be right back.

(COMMERCIAL BREAK)

[09:56:41] COSTELLO: The Oscar nominations are in. One of the most talked about categories, best actor.

(BEGIN VIDEOCLIP)

UNIDENTIFIED MALE: For performance by an actor in the leading role, the nominees are, Bryan Cranston in "Trumbo," Matt Damon in "The Martian", Leonardo DiCaprio "The Revenant," Michael Fassbender in "Steve Jobs," and Eddie Redmayne in "The Danish Girl."

(END VIDEOCLIP)

COSTELLO: Okay. You heard it there, Leonardo DiCaprio among others, but does DiCaprio have a real shot this time or will history repeat itself again? Let's bring in senior media correspondent Brian Stelter, he's following it all. Good morning.

BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: I think he does have a shot. This could be Leo's year. You know, "The Revenant" picked up the most nominations of any movie at all, 12 nominations all told. So, you and I finally have to go see this movie before February 28th, the big Oscar night.

It is pretty violent. You know, "The Revenant" also winning for a nomination for best picture. See if we can put on screen the eight nominees here. "Star Wars" was noticeably snubbed from the best picture list. But "The Big Short" is on there, love "The Big Short", "Bridge of Spies," "Brooklyn," "Mad Max: Fury Road."

COSTELLO: "Mad Max," really?

STELTER: Pretty great movie, pretty great movie. Also, "The Martian."

COSTELLO: I saw it and liked it, but really it made no sense.

STELTER: It was beautifully produced, though.

COSTELLO: Okay.

STELTER: "The Revenant" there, "Room," and "Spotlight," every journalist's favorite movie there. ":Spotlight" on the list. "Spotlight" is seen as maybe the one to beat, but "The Revenant" as well here with 12...

COSTELLO: "The Big Short."

STELTER: ... nominations. I'm rooting for "The Big Short" too, it was great, but right now I think "Spotlight" maybe has the edge. We can also look at best actress. We heard the best actor, but best actress also Cate Blanchet for "Carol," Brie Larson for "Room," Jennifer Lawrence for "Joy," Catherine Rampling for "45 Years," and I never know how to pronounce her name from "Brookly" ...

COSTELLO: I don't either.

STELER: ... so I'm not going to try.

COSTELLO: So embarrassing.

STELTER: I loved the movie, but I'm not going to try to pronounce her name

COSTELLO: Ms. Ronan. Ms. Ronan is up for best actress.

STELTER: That's perfect. Let's handle it that way.

And we can look at best supporting actor as well, best supporting actress because it's a very interesting race here for -- That's best actor, we heard those in the beginning, but can put up best supporting actor. You'll see Christian Bale from "The Big Short," Tom Hardy from "The Revenant," Mark Ruffalo from "Spotlight," Mark Rylance from "Bridge of Spies," and Sylvester Stallone from "Creed." Now, Sylvester Stallone just won at the Golden Globes. He gave that great speech at the Golden Globes a few nights ago. So, we'll see what happens in February.

And then on the best supporting actress side, of course Rooney Mara from "Carol," Rachel McAdams from "Spotlight," Alicia Vikander, I believe, from "The Danish Girl," Kate Winslet from the Steve Jobs movie, which didn't pick up many other nominations, and Jennifer Jason Leigh from "The Hateful Eight."

COSTELLO: So, any surprises in your mind?

STELTER: You know, I think I am actually surprised that "Star Wars" was snubbed for best picture. It picked up a number of technical awards, but given the incredible surge of popularity and the real critical acclaim for "Star Wars," I think it's somewhat surprising that it didn't get one of those nominations.

We can look at directing, I think, if we have time, too, because directing you can see the success of "The Revenant" and "Spotlight." Adam McKay for "The Big Short," you see "Mad Max: Fury Road," "The Revenant," "Room" and "Spotlight," all the nominations for best director.

Now, those are all guys, we should point out. And these Oscar nominations are awfully white again this year. And already, Carol, there's a lot of outcry online about how white and how little diversity is represented in these nominations.

Now, that's a result of what the best movies of the year were. These are the judges. These are the Hollywood elites voting here. We'll see what happens at the end of February.

COSTELLO: All right. Brian Stelter, thanks for stopping by again.

STELTER: It was good to see you.

COSTELLO: Appreciate it.

The next hour of CNN NEWSROOM starts now.

And good morning. I'm Carol Costello. Thank you so much for joining me.