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Watching Wall Street; Judge Holding Hearing on Note From Jury in Libby Trial; One-on-One Talks With Syria, Iran?

Aired February 28, 2007 - 09:00   ET

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

TONY HARRIS, CNN ANCHOR: And good morning, everyone. You are in the CNN NEWSROOM.
I'm Tony Harris.

HEIDI COLLINS, CNN ANCHOR: And I'm Heidi Collins.

For the next three hours, watch events come in to the NEWSROOM live on Wednesday, the 28th day of February.

Here's what's on the rundown.

Taking stock. Investors and traders ready for the bell, we think, 30 minutes from now. Blue chips looking up after Tuesday's 416-point plunge.

HARRIS: Jury deliberations in the Scooter Libby case. An interesting start this hour. Jurors with a question for the judge. A first clue, perhaps, into their view of the perjury case.

COLLINS: A cheerful father-son reunion brought about by the Olympic games.

Lost and found in the NEWSROOM.

Minutes from now, the bell rings in a new day on Wall Street. Will U.S. stock markets recover from their bought of Asian flu?

Well, yesterday, China's stock markets sneezed and U.S. investors shivered. Wall Street shuttered.

The Dow Jones Industrial Average dropped 416 points. The Nasdaq tumbled almost 97 points. But those numbers do not tell the whole story.

The Dow lost about 3.3 percent of its total value. Compare that to Black Monday back in 1987. A 500-point drop then cost the Dow more than 22 percent of its value.

This morning, overseas markets have rebounded some. And U.S. stock futures point to a rebound when the market opens in less than 30 minutes.

HARRIS: So what triggered the selloff?

CNN's Ali Velshi is on the floor of the New York Stock Exchange. Ali, good morning to you. What happened?

ALI VELSHI, CNN CORRESPONDENT: Hey, Tony.

Listen, I'm here -- trading starts in less than half an hour, and I'm in the middle of what's got to be the biggest water cooler conversation in America right now. Traders are here, and they are all saying the same thing.

Now, let me tell you, they're not alarmed by the drop in the stock market. These guys and women have seen it all. They're not worried about where the stock market is going. They are hoping that they are able to execute their trades today, because what they saw yesterday wasn't a meltdown in the stock market, was what they see as a failure in the system here.

We now have acknowledgements from both the Dow Jones and the New York Stock Exchange about two separate problems that may have exacerbated the fall in markets yesterday. One of them was an error in tabulating which caused the markets to all of a sudden look like they went off a cliff at about 3:00 in the afternoon, dropping about 200 points. The other one is some actual problem processing orders.

And at the end of the day yesterday, you actually heard booing from these traders and specialists on the floor because they weren't able to execute their trades. They've got guys walking around here with paper this morning. One guy walked by me and said, "Have they put the wheels back on the bus yet?"

I ran into John Thain, the CEO of the New York Stock Exchange. He didn't seem too alarmed. But the fact is, look at that chart. Look at what happened yesterday.

This thing had been slowing down, slowing down. Lost 100 points within the first six minutes, then 200 points, then 285 points. And all of a sudden, how did we get to 400, 500, 546 points? What happened?

All right. Now, let's see what happened overnight.

Asia, it's OK. Most of the markets were lower, but Shanghai, where this whole mess started yesterday morning, back in the green.

Then you go over to Europe. It's still trading until about 11:30 Eastern Time. Markets are OK. They're up about a percent in London, Frankfurt and Paris.

And the indications point to the fact the Dow will open maybe 60 or 70 points higher today. So a sense of calm permeates this place right now.

HARRIS: Beautiful. So, Ali, give us advice and thoughts for the average investor watching you this morning wondering how this is going to go today.

VELSHI: Nothing. Send an e-mail to CNN saying you've been enjoying watching me on TV. Do not execute a trade. Do not buy and do not sell.

This is not what the average investor should be basing their investment decisions on. This is interesting background. It's good to know what the trend is so that you can look at your portfolio and say, hey, did I lose that kind of money or did I gain it? Am I investing in the right stuff?

Don't be buying and selling. If you had sold yesterday while this market was going down, all that would happen is you would have locked in your losses. Today, if you didn't sell, you know what? You didn't lose any money.

HARRIS: Beautiful.

Ali Velshi for us from the floor of the New York Stock Exchange.

We are watching and waiting for that opening bell. And we will be off to the races.

Ali, thank you.

VELSHI: OK.

COLLINS: When the Fed chairman speaks the markets will be listening today. Chairman Ben Bernanke testifies before a House committee next hour. His testimony on the economy takes on new urgency following yesterday's market plunge, and it comes on the heels of comments by former Fed chairman Alan Greenspan warning of a possible recession later this year.

Bernanke gave an upbeat assessment of the economy during appearances on Capitol Hill two weeks ago. We'll watch his testimony this morning, bring you new developments as they happen.

HARRIS: OK. So here we go.

What's that number in the upper left? Can we highlight that a bit?

All right. We'll work it out.

Your net worth shrinking? No, that was -- that was yesterday.

Al right. What should the typical investor do today?

COLLINS: We can tell. Look at the tape.

HARRIS: Oh, it's all wrinkled and crinkly (ph). Yes. Yes.

Gerri Willis comes along with some stock advice later this hour in the NEWSROOM.

COLLINS: And now to Washington, D.C., where a note from the jury prompts a hearing. It's happening this hour in the perjury trial of former vice presidential aide Scooter Libby.

CNN's Brian Todd is in Washington now with the latest. And Brian, what do we know about this note now from the jury?

BRIAN TODD, CNN CORRESPONDENT: Well, Heidi, we know that it contains a question, and we'll know a lot more in about 30 minutes or so, when the judge holds a hearing on this. It was a bit of an odd twist that the note was handed to a court officer really at the close of business yesterday.

We all found out about it after the jury had left for the day with no verdict. We need to stress there is no verdict yet in this case.

So it could literally be anything. It could be a legal question. It could be something of a little more gravity. We just don't know.

The parties will be assembled in the courtroom in about 30 minutes or so. And the attorneys will be there. Scooter Libby there be there. All of us will be there. And we'll be able to tell you a little bit more.

COLLINS: Have we heard much, Brian, from the jury since they began these deliberations? I mean, you know, they've been going on a while. We had the glitch, of course, with releasing the juror, one of the female jurors.

What have the rest of them been saying?

TODD: Well, I haven't heard much other than what you just mentioned. That was pretty much the high point of the drama in these deliberations 48 hours ago.

A juror was dismissed because she had gotten access to some information about the case outside the courtroom, presumably over the weekend. And she was dismissed on Monday. They're proceeding now with 11 jurors.

They did hand two brief use notes to the court at the start of deliberations, but that was pretty much housekeeping material. They wanted some Post-it Notes. They wanted a flip chart. They wanted masking tape. Ostensibly, maybe to create some kind of a timeline or other chart. They also asked for pictures of the witnesses.

That's the only transmission that we really heard from this jury so far. So maybe a little bit of drama in the next half hour or so.

COLLINS: All right. We know you will be watching it for us.

Thanks so much, Brian Todd.

TODD: Thank you, Heidi.

HARRIS: And breaking the ice with two long-time adversaries. The United States agreeing to sit down at a forum with Iran and Syria? Stabilizing Iraq, the focus of the so-called neighbors conference next month in Baghdad.

Details now from CNN State Department Correspondent Zain Verjee. (BEGIN VIDEOTAPE)

ZAIN VERJEE, CNN STATE DEPT. CORRESPONDENT (voice-over): Talking to the enemy, Secretary of State Condoleezza Rice says the United States will sit at the table with Iran and Syria to discuss how to improve the situation in Iraq.

CONDOLEEZZA RICE, SECRETARY OF STATE: Success in Iraq requires the positive support of Iraq's neighbors. This is one of the key findings, of course, of the Iraq Study Group.

VERJEE: That report recommends talking to Iran and Syria rather than continuing to freeze them out. The Bush administration has been under pressure since then to engage its adversaries. U.S. officials have accused Iran of playing a destabilizing role in Iraq by arming militias. At the Senate hearing, Secretary Rice says she hopes Iran and Syria's participation in the conference will help.

RICE: We hope that all governments will seize this opportunity to improve their relations with Iraq and to work for peace and stability in the region.

VERJEE: But Iraq, not the United states, will host the conference next month for its neighbors and will set the agenda. U.S. officials say this meeting is a discussion, not a negotiation. But will there be one-on-one talks with Syria or Iran? A senior U.S. official tells CNN we're not ruling it out, but we're not ruling it in.

(END VIDEOTAPE)

HARRIS: Zain Verjee joins us now from our Washington, D.C., bureau.

Zain, great to see you. It's been a while.

Just a simple question for you. Why now? Why these talks now?

VERJEE: Well, firstly, the situation in Iraq, Tony, is so bad, and the U.S. sees Iran and Syria as possibly being able to play a positive stabilizing role in Iraq. But there's also more.

U.S. officials have told us that it's also really a way to hear out Iran and Syria without making any significant concessions that could come back to bite them. Officials have added, too, that by backing the conference, it would also satisfy critics both at home and abroad.

They really wanted to see U.S. engagement with Iran, with Syria. So the Bush administration wants to show that, look, you know, we are doing diplomacy and we are trying to engage.

Experts that we've spoken to, Tony, say that this is a good development and there are diplomatic possibilities.

HARRIS: We will watch it and see what comes up.

Zain Verjee for us in Washington.

Great to see you, Zain.

VERJEE: You too.

COLLINS: And Chad Myers is also back with us today.

HARRIS: How about that? Yes. Yes.

(WEATHER REPORT)

COLLINS: Meanwhile, the war within. New concerns about Post- Traumatic Stress and women in uniform. That's coming up in the NEWSROOM.

HARRIS: You know, we've heard a lot about the vaccine, but what about the virus? A quarter of women may be infected with HPV. Dr. Sanjay Gupta will have the facts in the NEWSROOM.

COLLINS: A battle for the body of Anna Nicole Smith. The latest round in a Florida appeals court.

Details in the NEWSROOM.

HARRIS: Crossing cultures and a quarter century in time. A father- son reunion brought about by the Olympic games. Look at those emotions.

In the NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: Anna Nicole Smith, she died almost three weeks ago now. And still, no final decision on where her body should be buried. This hour, a Florida appeals court takes up the question.

National Correspondent Susan Candiotti joining us now from West Palm Beach, Florida.

Susan, what is today's hearing going to decide?

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Well, Heidi, it could decide -- it could decide whether Anna Nicole's body will finally be headed for funeral somewhere out of Florida. That is what Howard K. Stern would like. He would like to take Anna Nicole Smith's remains to the Bahamas.

And he arrived here at this hearing just a short time ago. Vergee Arthur -- that's Anna Nicole's mother -- is also expected to arrive shortly.

These three judges will be debating this: basically whether trial judge Larry Seidlin made a mistake when he appointed a guardian to speak on behalf of baby Dannielynn. Did he misinterpret the law when he made that baby the next of kin instead of the mother, Anna Nicole Smith's mother?

That's because under Florida law the mother wouldn't (ph) necessarily be next if the child was under the age of 18. So these three judges will be hearing from attorneys representing Howard K. Stern, the baby, and Anna Nicole's mother.

And also, Virgie Arthur, reportedly last night in the Bahamas, had a chance, here very first chance, to meet her granddaughter at Howard K. Stern's home. And she's here today, as we said, along with Howard K. Stern -- Heidi.

COOPER: I'm curious, as we look at that video there since it was the first time for her to meet the baby, any idea of those reactions after the two of them met? Was any of that put into print or publicized?

CANDIOTTI: She had nothing to say, but she was very emotional when she left that compound last night. You could see her crying. And understandably so, of course.

COLLINS: Yes. I'm sure.

Susan, quickly, when can we expect a decision on this? I know it might seem like a ridiculous question the way we've watched this whole thing happen.

CANDIOTTI: True, true. The hearing itself is supposed to be short. Usually this court takes a recess, these three judges talk amongst themselves. And then often they come out and make a ruling.

So we expect that ruling to happen today. They could take it under advisement. They've done that before as well. And there's a remote possibility that lawyers for the losing side could take the matter up to the Florida Supreme Court, but mostly experts agree that would be highly unlikely.

We'll see.

COLLINS: All right. Susan Candiotti from West Palm Beach this morning.

Thank you, Susan.

HARRIS: Bullets, bombs and bloodshed in Iraq. A hunt for insurgents. The latest developments ahead in the NEWSROOM.

COLLINS: We've heard a lot about the vaccine, but what about the virus? A quarter of women may be infected with HPV. Dr. Sanjay Gupta will help clear it all up for us, and we'll have some of the facts in the NEWSROOM.

HARRIS: In a flash, investors drop more than $600 billion. Tuesday's losses can be Wednesday's gains.

Market watch all morning in the NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: It is the most common sexually transmitted infection in the United States. And a new report says it's most prevalent in young people right after they start having sex. The vaccine to prevent HPV is getting a lot of attention now, but what about the virus itself?

Chief Medical Correspondent Dr. Sanjay Gupta joining us now from New York.

Sanjay, it seems like we might need to back up a little bit. Before we talk about this vaccine, what is HPV?

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Well, HPV is a virus. It's called the human papillomavirus. And there's actually 30 different strains of this. But there's four strains that are the most problematic.

They cause 70 percent of cervical cancers, as you pointed out. They cause 90 percent of genital warts as well.

So this is -- about 15 years ago, Heidi, they found an association between this virus and cancer, cervical cancer. One of the only associations like this that really exists in the world of cancer. And they've been working on this vaccine which we've been talking about so much.

COLLINS: Well, you know, I realize that at least from the things that I have read about HPV, that some people have it and they just -- they don't have any symptoms, they don't have any complications, no trouble. So it seems like not everybody is going to wind up with cervical cancer but, boy, how would you know if you're going to be the one?

GUPTA: Yes. You know, and there's good news and bad news here, as you're pointing out. I mean, look, 90 percent of people who get it are going to clear the virus within two years. The virus is going to come in their body, they may not know that they have it, and it will be gone within two years.

There's about 20 million people they estimate in the United States that are carrying the virus right now. So that gives you some sense of the numbers. But you're right, it's hard to figure out who's actually going to be affected by this in a dramatic way, get cancer.

26.8 percent of females 14-59 have an HPV infection. What's interesting, though, Heidi, if you break those numbers down, between 14 and 19 years old, almost 25 percent are that young. That was sort of startling to men when I first saw those numbers. But you get a sense of how prevalent the virus is and who it's affecting as well, young women.

COLLINS: Anything that you have to add here about this type of study, how many people were tested, how long they were followed, and so forth?

GUPTA: Yes, absolutely. You know, and this is -- this is sort of the other side of it.

On one hand, people who are advocates will say, look, this is a vaccine that prevents cancer. How could you not do this? Other side, people might say, well, how well is it tested? We looked that up, obviously. There were four trials. There were two that were called phase two trials and two phase three trials.

These are clinical trials. And there was about 21,000 women tested. Half of them got the vaccine, half got just a placebo. And they followed them for about an average of around 3.9 years, almost 4 years.

Is that adequate follow-up? It depends on who you ask. Some people will say, yes, that's a good amount of follow-up time.

People will say, well what about 10 years from now? What does this vaccine really do to people? We don't obviously have that information yet, but Merck is going to continue studying this vaccine.

COLLINS: Yes. It's interesting, too. I know a lot of news today about certain states that are saying little girls have to go and get this vaccine. And they actually made it a law.

GUPTA: Yes, it's controversial, whether to mandate this vaccine or not. I mean, that's something that's going to obviously raise a lot of eyebrows in both directions.

COLLINS: Yes, no question about it.

All right. Dr. Sanjay Gupta, thanks for your input.

GUPTA: Any time, Heidi. Thank you.

HARRIS: Let's take you to Washington, D.C., now. We're keeping an eye on the federal court building there in Washington, D.C.

Lewis "Scooter" Libby arriving for a hearing this morning. Interesting this morning.

The judge in the case, federal judge Reggie Walton, holding a hearing on the latest note from the jury deliberating the charges against Scooter Libby. The note was handed up yesterday as the jury wrapped up a fourth full day of deliberations.

CNN's Brian Todd is following developments in the courtroom. And as soon as we know something of this hearing, Brian will fill us in on all of the developments.

But we're keeping an eye on the federal court building in Washington, D.C., this morning.

COLLINS: We are also keeping our eye on this, Tony. Fourth District Court of Appeals, this is West Palm Beach. Our Susan Candiotti is on the ground there for the Anna Nicole Smith appeals that are being filed today, and talked about as they consider where still Anna Nicole Smith will be buried.

As you know, this has gone on and on now for quite some time. But we may be getting a final decision on the appeals to Judge Seidlin's ruling quite a -- I guess -- what was it, a couple of days ago now? HARRIS: Yes, it was. It was.

COLLINS: But the big question here, as our Susan Candiotti pointed out, was whether or not he may have misinterpreted the law by way of appointing a guardian to the baby of Anna Nicole Smith because she is under the age of 18 years old.

So we will try and follow that one for you and possibly -- yes, possibly -- have an end to this story.

HARRIS: I'll leave that to you.

COLLINS: Oh, yes. I'm in total control.

HARRIS: Yes.

COLLINS: Meanwhile, in a flash, investors dropped more than $600 billion. And Tuesday's losses can be Wednesday's gains, maybe. Market watch all morning in the NEWSROOM.

HARRIS: The war within. New studies on Post-Traumatic Stress in women in uniform. That's ahead in the NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: I know everybody's very anxious for the opening bell this morning. We want to get straight out to Susan Lisovicz, who is standing by to hear that and give us some insight as to what is happening there at the very moment.

Good morning, Susan.

SUSAN LISOVICZ, CNN FINANCIAL CORRESPONDENT: Good morning, Heidi.

Well, they say there's two basic emotions that rule the market, fear and agreed. Fear was certainly at work yesterday. The worst selloff point-wise since the markets reopened after the September 11th terror attacks. But greed, I think, will also be at work today.

We're looking at a bounce at the open. One of the folks who can help clarify things for us is a veteran trader who's standing next to me, Kenny Pulkare (ph), who's been a trader on Wall Street for 26 years.

UNIDENTIFIED MALE: A long 26 years.

LISOVICZ: There goes the opening bell. I'm not hearing any applause. But fortunately, we're not hearing any booing either like we heard at the close yesterday.

KEN POLCARI, ICAP EQUITIES: I think, yesterday there was a lot of anxiety on the floor because of the technology breakdown that had taken place yesterday. It was frustrating for the traders on the floor, frustrating for the specialists on the floor. But they seemed to have gotten that problem fixed overnight. It was directly related to the Dow Jones server problem, which created a server problem here the New York Stock Exchange. But they have now fixed that problem, and technology is working fine.

LISOVICZ: Before we go on about some of the failures yesterday, can we talk about the fact that the Dow is on the upside. Why are people buying today? Is it simply they see an opportunity here?

POLCARI: Yes, I think they do. Yesterday's move was clearly and over reaction. What was lost on yesterday's news was that, yeah, China had sold off, but China had been up 13 percent in the previous six sessions. So, the fact that China sold off wasn't really a big, big deal but I think investors around -- in Europe and in the States needed a reason to take some money off the table.

LISOVICZ: Is Asia wagging our tail now? Because we saw Asia selling off very mildly, like Tokyo, for instance, actually the Shanghai composite did rally today. And Europe is just very modest losses comparatively speaking.

POLCARI: Right, right. But I think we're going to take the lead. I think you're going to see it today. I think the market is going to end up on the upside. I think that people realize that yesterday's action was a correction in a bull market, rather than the beginning of a bear market. I think it was a little bit exacerbated because of the technology issue, and I think professional investors understand that.

LISOVICZ: Is it fair to ask that the sell off would not have been as bad if we did not have that confusion, and in some cases, panic in the final hour of trading?

POLCARI: I absolutely think that that's true. I think that traders on the floor and customers upstairs, when they sense the technology is not working right everyone is so used to instant gratification, because of the technology, when all of a sudden it doesn't work right it create as sense of anxiety.

Yes, I think that exacerbate the move down, but I think that people understand that today. They go home, after 4:00, they think about what happened. They read the papers, read the press releases on what happened with the technology and how in fact, they've fixed that problem. And I think you'll see today, the markets already up 35 points we're a couple minutes into the trading day. I think the sense is good.

LISOVICZ: Last question, Ben Bernanke, a lot of pressure on this Fed chairman today. He's testifying on Capitol Hill. How important is what he's going to say today?

POLCARI: I think it's very important, but I think what's more important is what he says gets reported correctly. I think that the comments that Alan Greenspan made a couple days ago, I think there were some reporters that ad-libbed what he said, that created a little more anxiety. Because I don't think Alan Greenspan said anything way off line.

LISOVICZ: He said there was a possibility of a recession, earlier this week. POLCARI: I think they took that one little piece and they made it bigger than it was, which gave people another reason to want to take money off the table if they saw an opportunity, and China was that opportunity, yes.

LISOVICZ: Kenny Polcari, thanks so much.

Looks like, Heidi, we have a relief rally, at least in the first few minutes of trading. Back to you.

COLLINS: Let's go ahead if we could, and pull up the numbers again, so everybody can keep their eye on them. I guess we can't do that. But, Susan, you can tell us where those numbers are going. As you said, on the plus side right now.

I want to ask you quickly about something that Kenny said, and with his 26 years of experience on the floor there. He did say this is a correction in a bull market, or at least he thinks it is. Is there something to be said, Susan, about the fact that the Dow was, you know, well above 12,000 before all of this happened? Is it different when we have a fall this big, when it starts at a number that high?

LISOVICZ: I'm sorry, Heidi. I didn't understand your question. I want to make sure I repeat it to Kenny straight, because he's still with me. You're talking about a correction of this magnitude? Is that what you're asking?

COLLINS: I'm asking that because the Dow is so high, we haven't seen the numbers above 12,000, you know, record highs, that we've been experiencing here. When you have a fall like this -- everyone talks about the fall -- but is it different, because we started at a high level?

LISOVICZ: Right. Gotcha, good question.

You know, we have record after record the Dow is at pretty lofty levels now. Should we reconsider that? This fall comes after months of straight-upward gains.

POLCARI: Absolutely. You have to put it in perspective. That's exactly the reason that people are looking to take -- they were looking for a reason to take some money off the table. The down 400 points, yeah, but put it in perspective. Down 400 points, it was what, down 4 percent or 3.8 percent? You have to put it all in perspective. I think that the technology issue and China issue just gave people the reason to take money off the table.

LISOVICZ: Kenny Polcari, thanks so much for putting it in perspective for us. That's a wrap from the floor. And the Dow is up 56 points.

COLLINS: All right, Susan.

LISOVICZ: Back to you, Heidi.

COLLINS: Thanks so much, Susan. We will be reporting correctly what Ben Bernanke says a little bit later on today on Capitol Hill.

HARRIS: There you go. There you go.

COLLINS: Best that we can.

HARRIS: We're following a couple of things this morning. We might hear, at some point, this morning from the three-judge panel deciding whether to overturn a lower court ruling last week that gave custody of Anna Nicole Smith's remains to the guardian, ad litum, for her daughter. Oral arguments, as you can see, this morning getting under way right now at the courthouse, the Fourth Circuit Court of Appeals. Susan Candiotti is following this for us in West Palm Beach, Florida.

And a note from the jury prompts a hearing. It's happening right now in the perjury trial of former vice presidential aide Scooter Libby. The judge is taking up a note just about now. It was submitted yesterday at the end of a jury's fourth full day of deliberations.

Libby is accused of lying to investigators probing a CIA leak. He faces up to 30 years in prison if he is found guilty. Though, the term would likely be much shorter under federal sentencing guidelines.

COLLINS: Want to get a check of the weather now.

(WEATHER REPORT)

COLLINS: Crossing cultures and a quarter century in time, a father-son reunion brought about by the Olympic Games, in the NEWSROOM.

HARRIS: Exactly what would possess a respected judge to do this? Huh? All right. Promise keeper in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Of the report, 18 boys killed on a soccer field in Ramadi, Iraq; shocking, but the military says it's not true. Just a short time ago a military spokesman told reporters there was no such incident. He said there had been an explosion yesterday in Ramadi but it was a controlled detonation.

The report of the boys killed was first heard on Iraqi state TV and the Iraqi interior ministry confirmed that report to CNN. So what really happened? We will talk with one of our reporters, live on the ground, ahead in the NEWSROOM.

COLLINS: Meanwhile today is a new day in Iraq and with that, new bloodshed. A car bomb exploded near a Baghdad market killing at least 10 people. More than 20 others were wounded.

Elsewhere in Baghdad, two people were killed in a suicide car bombing outside of the police station. And south of Baghdad, in a town of Mahmoudiya, reports of one person was killed, three others wounded after a roadside bomb exploded. And the military says coalition forces killed eight suspected terrorists and detained six others. It happened during raids in and around the Baghdad area. The military says troops were targeting Al Qaeda in Iraq, and other insurgents.

HARRIS: Women at war: New studies showing the battle in Iraq may weigh heavier on female troops. CNN's Deborah Feyerick takes a look.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice over): When Navy medic Linda Michel came home from Iraq in September her husband and three kids met her at the airport, overjoyed she was back safe, or so they thought.

FRANTZ MICHEL, HUSBAND OF LINDA MICHEL: Seemed a little nervous, a little -- I don't know, a little different.

FEYERICK: Linda, a trained nurse, had been treating prisoners at Camp Buqah (ph) in southern Iraq for almost a year. Like many women returning from war, the transition would be tough.

MICHEL: She had to kind of get used to the children. She had to kind of get used to the house. There was a lot of difficulty adjusting.

FEYERICK: For Linda, getting readjusted was especially hard. Her husband Frantz, a lieutenant colonel in the Infantry Reserve had served in Iraq a year earlier. As a result, the couple had been apart for nearly three years.

MICHEL: I think she was afraid that she might not be able to pick up the pieces and get our life lack to the way it was.

FEYERICK: Two weeks after coming home Linda Michel, Navy medic and mother of three, sat on her bed, and shot herself in the head with her husband's gun.

(On camera): Were you the one who found her?

MICHEL: Yes. I had no idea at what level, you know, how deep -- how much pain she was in.

FEYERICK: About 150,000 women have been deployed to Iraq and Afghanistan. Experts say women are more likely than men to feel the emotional affects of the battlefield once they come home. A recent Army study examined 220 veterans and found nearly 24 percent of women, compared paired to 19 percent of men, suffered some mental illness.

HELEN DAVIS, NYS MENTAL HEALTH ASSN.: You know it's the intensity of pain.

FEYERICK: Helena Davis, a mental health expert, says Linda's feelings are common among women, who learn how to survive in combat zones, only to lose their identity when the fighting stops. DAVIS: A woman coming home from war, first of all, has to deal with let going of her warrior self and coming back to her parent, spouse, caretaker self.

FEYERICK: Women may isolate themselves rather than ask for help, which they feel, mistakenly, is a sign of weakness.

(On camera): Do you think your wife hid her vulnerability?

MICHEL: She always wanted to portray herself as being strong. Every job she did, she did it 110 percent.

FEYERICK: Frantz says in Iraq, Linda was prescribed antidepressants, which she quit when she left. He had no indication how serious the problem was from either his wife, or the Defense Department.

The armed force doss not monitor troops who may suffer psychological problems once they get home. Even the symptoms for conditions like post traumatic stress disorder may not surface or weeks. The Veterans Administration says monitoring vets would be an invasion of privacy.

PATRICIA RESICK, VETERAN'S ADMINISTRATION: Once you're discharged, you're a citizen. We can't mandate citizens in our country to go get mental healthcare or check-ups as veterans.

FEYERICK: Frantz Michel says he doesn't blame anyone and that he and his wife are patriots, proud of their service. Now he is left to pick up the pieces.

(On camera): So what does the youngest ask you?

MICHEL: When is mom coming back?

(On camera): What do you tell her?

MICHEL: Mom's in heaven now, mom's not coming back, but mom is always with us. She'll always be part of the family.

FEYERICK: Deborah Feyerick, CNN, Albany, New York.

(END VIDEOTAPE)

COLLINS: Well, watch that number, in the upper left. This is good when there's a plus sign by it. I know that much, especially yesterday, down 416 points. Your fortunes were sinking. That was yesterday, though. Let's stay positive. What should the typical investor do today on Wednesday? Gerri Willis has a little bit of stock advice coming up in the NEWSROOM.

HARRIS: And that most American institution dethroned by a British royal, Prince Charles calling for a ban on McDonald -- what? Can this be true? A ban on McDonald's? Did he cross the line?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: All he has to do is look to the queen. Does she ever make crass remarks like this?

(END VIDEO CLIP)

HARRIS: That's a good question. Charles' big Mac attack in the NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: OK, so let's look. Down five.

HARRIS: Heidi.

COLLINS: You can kind of look at it and cover one eye, like you're at a horror movie. Although, as we said, we don't want to blow this out of proportion, or out of perspective because with the Dow is at 12,000, or above 12,000, and you have a drop.

HARRIS: Right.

COLLINS: It was 416 points down yesterday, you got to look at it from where you started, I think. At least that's what we've been hearing from or our investors and some of our traders that we talked to on the floor a little while ago.

As we say, it's a new day. Look, see, now it's in the positive, up by 3.

HARRIS: OK.

COLLINS: So, we're going to watch for this for you all day long. Big questions out there, are we now reacting to Asia, or what does that mean? Blame it on Shanghai.

HARRIS: Who's wagging whom?

COLLINS: Yes, exactly. We'll watch it for you. Now it's back down, so -- iy, iy, iy!

Meanwhile, you already know to catch us weekday mornings, from 9 a.m. until noon Eastern, but did you know you could take was you anywhere on your iPod? The CNN NEWSROOM Podcast available 24/7 right on your iPod.

HARRIS: A lost child, it is a parent's nightmare to be sure, for one father a happy ending thanks to the Olympics. CNN's Sohn Jie-Ae reports.

(BEGIN VIDEOTAPE)

SOHN JIE-AE, CNN INT'L. CORRESPONDENT (voice over): The resemblance between father and son is uncanny, but apparently not good enough. More than 25 years ago Kim Jae Soo (ph) lost his three-year- old son, Pung Suk (ph), in a crowded South Korean market and was never able to find him again -- until now.

Through his tears Kim keeps saying, "I'm sorry." His biological son, now named Toby Dawson, is a 29-year-old U.S. citizen and a U.S. Olympic skier.

TOBY DAWSON, U.S. OLYMPIC SKIER: (speaking Korean) Which I believe means, I've been waiting a long time, Father. And then I told him that I was happy to be able to meet him, and that he was -- that he didn't need to cry, and to be strong, because this should be a happy day.

JIE-AE: From a South Korean orphanage Dawson was adopted by a couple of ski instructors in Colorado. At the 2006 Turin Olympics Dawson was the only American to win a medal in freestyle skiing, catching the eye of many in the country of his birth, South Korea.

Dozens came forth claiming to be his parents, but eventually DNA analysis would show Kim Jae Soo (ph) to be his biological father. After the tearful reunion in Seoul, the father and son begin the process of getting to know each other again.

DAWSON: I guess I've always grown up with pretty long side burns. Looking at him now, I can see where theses sideburns have come from.

JIE-AE (On camera): At the press meeting with his biological father, Dawson talked about another issue that was close to his heart, helping other Korean adopted children find answers as to why they were sent abroad, and to prevent others from following the same path.

(Voice over): Dawson says a foundation set up in his name will keep others like him from being caught between two different cultures and not knowing what their biological family looks like. Sohn Jie-Ae, CNN, Seoul.

(END VIDEOTAPE)

COLLINS: Love that story.

Meanwhile, though, a battle for the body of Anna Nicole Smith. The latest round in a Florida appeals court, as we speak. We'll have details coming up in the NEWSROOM.

HARRIS: And what to do with a very big boy in Britain. Authorities come to a decision in a well-publicized case. A boy, a symbol of a growing nation? That story ahead in the NEWSROOM

(COMMERCIAL BREAK)

HARRIS: Story of a very big boy has Britain abuzz. At issue, a young boy who weighs almost 200 pounds, and a decision on whether he should remain in his mother's care. CNN's Alphonso Van Marsh has the story.

(BEGIN VIDEOTAPE)

ALPHONSO VAN MARSH, CNN INT'L. CORRESPONDENT (voice over): At nearly 200 pounds Connor McCready (ph) knows a chicken drumstick can be finger licking good.

UNIDENTIFIED MALE: Hey, where's my pork chop?

VAN MARSH: But Connor is just eight years old, and nearly four times average weight for a child his age. His family told reporters Connor typically starts his day with a bowl of chocolate cereal, followed by toast with processed meat. At lunch, burger, fries, and sausages or a pizza, a whole pizza. It's fast food or takeout for dinner, and toss in four bags of potato chips. Connor's family admits that in addition to all of that, he scarfs down cookies and other snacks about every 20 minutes.

British authorities are so concerned Connor's diet could seriously damage his health that they called in Connor's mother to consider putting him into foster care until he loses weight.

UNIDENTIFIED MALE: Now, he won't stop eating but he will be allowed to stop with his mother --

VAN MARSH: British press led with the news that Connor can stay at home for now, but the public debate over whether government can take a child away from his mother because he eat what's he wants rages on.

UNIDENTIFIED FEMALE: I think it's really terrible. I think, you know, to be honest, blame the parents.

UNIDENTIFIED MALE: If she can't really look after the child, it's probably in the child's best interest that -- they take care.

UNIDENTIFIED FEMALE: It's important not to blame anyone, isn't it, just to help him.

UNIDENTIFIED FEMALE: If he's been brought up with ready-made foods, take aways. That's just the norm. Why would you go for salad?

VAN MARSH: After the United States, Britain as one of the highest youth obesity rates of industrialized nations. Celebrity Chef Jamie Oliver recently took the British prime minister to task over the sad state of school lunches. The government listened and dedicated millions of dollars to healthier options in the cafeteria.

But what happens outside the school yard?

(On camera): Despite how profile campaigns to get children to eat more fruits and vegetables, like these, even at the corner grocery store, the shelves are stocked full of high-calorie unhealthy temptations. A family law expert says if Connor's family can keep him from these temptations, keeping Connor at home is a good move.

MICHAEL NICHOLLS, FAMILY LAWYER: A number of these cases resolve themselves without the court having to impose anything on anybody. But the essential benefit of them is they draw together everybody who's involved, with the assistance of usually medical experts, who are available to help.

VAN MARSH: Help Connor do what he says he's known all along.

UNIDENTIFIED MALE: Eating less and, you know, eating healthy foods.

VAN MARSH: Lessons to live by. Alphonso Van Marsh, CNN, London.

(END VIDEOTAPE)

COLLINS: All right. So we've seen a lot of strange behavior from judges as of late. Look at this now. Head over heels, a judge in North Carolina drug treatment court living up to his end of the bargain by doing cartwheels.

Objection! Some bad form there, but a good cause. You may wonder what possessed him to pull this stunt?

JUDGE HUGH B. LEWIS, MECKLENBERG CO., DIST. COURT: I have a standing pledge to anyone who comes into any of my courtrooms that if they do 90 meetings in 90 days I will do cartwheels for them.

UNIDENTIFIED FEMALE: Just the anticipation of him doing it, up to this moment, was fantastic. Like I said I'm going another 90 and 90, so he can do this again. Until I'm finished the program, he will be doing cartwheels.

LEWIS: Look, I will make a fool out of myself and wallow on the floor for anyone who is willing to do 90 meetings in 90 days to get clean and sober.

(END VIDEOTAPE)

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