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Winter Weather Hits Holiday Travelers; Retailers Feel Recession Tension This Holiday; Celebrating Christmas in Jerusalem
Aired December 24, 2008 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ALINA CHO, CNN ANCHOR: I'm Alina Cho. Heidi Collins is off today. It's Wednesday, December 24th, Christmas Eve. You are in the CNN NEWSROOM.
Good morning, everybody. So glad you're with us on this Christmas Eve.
Icy roads getting icier from Washington to Wisconsin. We are watching it all for you. The West Coast getting blasted by another winter storm. The Seattle area could see up to six more inches of snow by Christmas morning. They haven't seen anything like that in 10 years.
Airports and bus terminals are already packed with holiday travelers, worrying if they'll ever get to where they're going. Hundreds forced to spend the night at terminals, their rides canceled. Expect more delays the later it gets. That generally happens.
And of course, the worst weather comes into play. Chicago's O'Hare Airport already backed up after canceling more than 500 flights yesterday. For the moment though, passengers are making it through all the snow to Seattle's Airport. The big question of course though, will their flights take off anywhere close to on time? Bonnie Schneider coming in watching it all for us.
But the people who made it to the airport though, Bonnie, they're the lucky ones.
BONNIE SCHNEIDER, CNN METEOROLOGIST: That's right.
CHO: A lot of people having lots of trouble out there.
SCHNEIDER: I always advise, get that early, early flight. Because then you're most likely to not face delays. But many flights were up and about because currently looking at flight explorer, we have over 3,200 planes in the air. And now we're seeing a lot more activity off to the west than we did just an hour ago. So things are getting moving this busy Christmas Eve.
Not to say that we don't have any delays because we do. In Chicago, the delays are an hour and 40 minutes at O'Hare. That airport was briefly closed due to runway cleanup but overall it's looking good now. Just a little bit of delay activity. It got started to reopen again this morning.
In Newark, New Jersey, we had some light icing. And that slowed down travel by an hour and five minutes. In San Francisco, low clouds, poor visibility, ground delays, an hour and 30 minuets. So three delays, not so bad. At least not yet. But this is really just the beginning. We're expecting and anticipating even lengthier delays throughout the entire country from the west to the Midwest to the east.
It's kind of a combination of wintry weather that we're facing throughout the U.S. on this Christmas Eve with rain, sleet, snow and some areas seeing just about everything at all different times.
For example, in the Midwest, the rain and sleet this morning will change to snow as we get colder air coming into the forecast. But right now, outside in Seattle, it is snowing. And it's been a snowy season so far. We're just in the first few days of winter. Already plenty of snow in Seattle. And then to the south, we're also tracking snow in and around Portland as well.
So you'll be looking for snowy conditions if you're on the road. These winter weather advisories you see highlighted in green in these counties, these actually go straight into the afternoon hours.
We have a live picture of Seattle to show you this morning. Let's take a look and see what it looks like. Overcast, plenty of traffic and snow in the sky. It's going to be a slow ride for your Christmas Eve in Seattle if things are already looking like this early this morning. People are taking it nice and slow on the roads. And since the sun isn't out yet, they have their lights on, which is also good news.
We're looking at very cold temperatures, Alina, for this Christmas Eve. Only a high of 12 degrees in Minneapolis. A high of 19 in Billings. If you're looking for some warmer weather, you'll find it right here down in Florida. Miami, 77. Tampa, 82.
CHO: Bonnie I have to tell you, I grew up in the Pacific northwest, and I never saw anything like this when I was growing. There were lots of rain --
SCHNEIDER: Yes.
CHO: But this snow is incredible. I mean, they closed the Portland Airport. Incredible stuff. All right. I know you're watching it for us. We'll check back with you later.
And we want to take another look at the scene in the northwest. This is McMinnville, Oregon. Snowed under after a week of storms. And as we've been saying, more of that white stuff is on the way. A white Christmas all but certain for much of the northern part of the country.
And for those who don't have to worry about going anywhere, all that snow makes for a winter wonderland. I-reporter Shana Nesbitt sent us this video from Rochester, New York. Nice to be shooting it from the inside, isn't, Shana? More than two feet of snow has fallen there. And it is still coming down. You can share your weather pictures with us as well. Simply go to ireport.com and hopefully we'll bring them to all of you.
The pulse of the economy and new numbers to make your heart sink. This morning we learned the jobless claims rose more than expected. Last week's claims, the highest in more than 26 years. Also new this morning, Consumer Spending has dropped yet again. November's decline, six tenths of one percentage point. That's the fifth straight month of decline and the longer stretch in a half century. Just dismal out there.
And also new this morning, shrinking orders for durable goods. Those are those products expected to last longer than three years, like appliances. In November, durable goods orders fell by one percent.
An economy in crisis, a nation in recession. What's being done as the White House changes hand?
CNN's Elaine Quijano takes a look.
(BEGIN VIDEOTAPE)
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: It's the biggest drop in home prices since the National Association of Realtors started recording the data. In November, the median existing home sale price dropped more than 13 percent from one year ago. And the actual number of existing houses sold was down almost nine percent. All of it against the backdrop of continued foreclosures.
TONY FRATTO, WHITE HOUSE SPOKESMAN: Trying to make that system work is very difficult and complicated. We have our own ideas. I'm sure the next administration will have ideas.
QUIJANO: But for now, the Bush administration officials say they're tackling the problem as best they can.
FRATTO: What you find as you work through all of these foreclosure mitigation programs is that they have strengths and weaknesses. And not one of them is perfect. If there was a perfect program out there, I think we would have implemented it already.
QUIJANO: The housing and credit crisis continues to hit the broader economy. The Commerce Department reported the U.S. economy shrank in July, August and September by half a percent. And the White House braced Americans for even worse news about October, November, and December.
FRATTO: The fourth quarter, we know, because of the credit crisis, the standstill in credit as markets froze up and the financial market turmoil will be significantly weaker.
QUIJANO (on camera): So with those figures yet to come in, the economic picture may get worse before it gets better. And with only 28 days left in the Bush presidency, the worst news of the recession will likely confront the Obama administration in its first days in office.
Elaine Quijano, CNN, the White House.
(END VIDEOTAPE)
CHO: All right. We want to check out the screen there. You see the Dow Jones industrials at 8439. That's up about 19 points, still trying to make up from the loss of yesterday. Down about 100 points yesterday to open the trading day at about 8419 or so. But what a difference a year makes. The Dow was more than 13,000 just a year ago on Christmas Eve.
Well, the honeymoon between President-elect Obama and the American people still going on strong apparently. A new poll by CNN and Opinion Research Corporation shows his ratings are going through the roof. Take a look there. 82 percent of people polled approve of how he is handling his transition. Just 15 percent disapprove.
But the poll also suggests the public approves of the president- elect's cabinet appointments. You've been hearing about those over the past several weeks. 56 percent say his choices have been outstanding or above average. 11 percent say they've been below average or poor.
A new report by President-elect Obama's own transition team officially concludes there was nothing inappropriate about any contacts they had with disgraced Illinois governor Rod Blagojevich. One of Obama's closest advisers discussed possible picks for the empty Senate seat with Blagojevich. CNN's senior White House correspondent Ed Henry joins us on the phone now from Honolulu.
Not a bad assignment, Ed, first of all. Second, let's talk a little bit about this report. I mean it's no surprise really that the Obama team's report on the Obama team's dealings with Blagojevich came out clean, right?
ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: You're right. I mean, the only real surprise in this report was the fact we got some new information, which is that the report revealed that last week the President-elect actually sat down for an interview with the prosecutor in this case, Patrick Fitzgerald, as did Rahm Emanuel and Valerie Jarrett, two very senior incoming White House aids, very close to the President elect. That's so rare to have an incoming president, just weeks before he takes office, sitting down with a prosecutor in a criminal investigation.
We have to stress though that the Obama team's account is that basically the President-elect said that he's not aware of any wrongdoing. That he didn't have any contact with Governor Blagojevich about who would replace him in the Senate. That he was not aware of any of the wheeling and dealing, the alleged auctioning off of the Senate seat that the governor is involved in. And still, you're right. That while on one hand the Obama team is trying to turn the page by saying, look, there's nothing here.
On the other hand, this is not the final word here. Because it is the Obama team investigating themselves essentially. And so we still have to wait for the prosecutor, I think Patrick Fitzgerald in the month ahead will have the final word on whether anyone on the Obama camp was involved in any wrong going. But for now, we'll have stress that the prosecutor has not indicated that they were involved in wrongdoings. So they are in the clear for now and I think rather than
I think Patrick Fitzgerald will have the final word on whether anyone in the Obama camp was involved in wrongdoing. For now we have to stress that the prosecutor has not indicated that they were involved in wrongdoing. They are in the clear for now. I think rather than sort of criminal jeopardy, what they're facing more is political jeopardy. In that as this Blagojevich case plays out, if it continues to show sort of the seamier side of Chicago politics, that obviously could run counter to the change message that Barack Obama campaigned on and it could wind up being a distraction in the long term as he tries to govern.
CHO: Well, we'll have to see what the final word is from the U.S. attorney, Patrick Fitzgerald. But the vice president-elect, Joe Biden, as you know, Ed, was out there talking about the economy. As you have said, not that he's trying to change the subject or anything.
HENRY: Yes. It was funny yesterday, on the same day that the report -- that this Blagojevich report was coming out -- the transition team put out Vice President-elect Biden for an economic event without the President-elect that was going on in Washington while the President-elect was vacationing here in Hawaii. I mean the vice president-elect isn't someone we have seen that much of lately. Until a couple of days when he started doing some interviews. So it seemed a little curious in terms of the timing.
But transition officials insists they weren't trying to change the subject. They say, look, they realized that while the Blagojevich thing captured the media's attention, they do want to move on to the economy. And they realized that the data you just laid out still continues to be bad news. This is a much bigger challenge that they're going to confront in the days ahead in terms of the financial crisis.
It's a much weightier issue on the minds of a lot of Americans than the Blagojevich scandal. So it's only natural they're going to try to turn a page. And it's very clear this economic stimulus bill that's being put together by the transition team is going to be the biggest issue confronting the president when he takes office on January 20th.
CHO: Hey, Ed, people have been joking a lot about this being a pretty cushy assignment for you being out in Hawaii. Listen, we want to show some pictures from last night of "AC 360" of you, I believe -- there we go. Those are the shorts. There is laughter and clapping in the NEWSROOM. I believe those shorts -- I believe those are the new ones you bought, right, Ed?
HENRY: They the state flag here in Hawaii.
CHO: Although I must say, you can't really make them out there. But it's a fine effort. And you know, it takes a lot to rile David Gergen there in the middle but you know, he wanted to know what you were wearing. I like to call it the shorts indicator.
What's the weather?
HENRY: Well, you know, right now it is a cushy assignment. It's about 5:00 in the morning right now that I got up to do this. So it's not that cushy. And I can hear the waves crashing. It's probably in the 60s already.
CHO: Oh, Ed. Must you?
HENRY: It's going to be in the 80s again. I hope that doesn't bother you. Probably pretty warm there in Atlanta and New York, right?
CHO: About half that, Ed. Try 40s.
HENRY: Happy Holidays.
CHO: Ed Henry, thank you.
A boom in single men having kids with no mom in the picture. That's next.
(COMMERCIAL BREAK)
CHO: Clay Aiken has done. Ricky Martin has done it. The need to have a baby and raise a family. Men have it just like women and now a growing number of single men are choosing to have children whether they're in a relationship or not.
CNN's Carol Costello reports.
(BEGIN VIDEOTAPE)
DAN GERR, SINGLE FATHER: I know, you want to keep walking, don't you?
COSTELLO (voice-over): Mama's boy? Forget it. Daddy's rule in Daniel Gerr's world.
GERR: Are you OK?
COSTELLO: Dan Gerr is just one of many single men opting to have children of their own, on their own. No mom required. It's becoming a daddy baby boom.
GERR: Having a biological child was very, very important for me. It's not for everyone but for me I just felt if I was going to do it that's what I want to do.
COSTELLO: That's right. Gerr's son is his. He's among a growing number of single men, gay and straight, paying women to carry their children. And it's slowly becoming socially acceptable. Singer Ricky Martin did it. He has twins now. Clay Aiken did it too with no regrets telling "Entertainment Tonight."
CLAY AIKEN, SINGER: I don't have a problem with any of that stuff. So nothing bothers me.
COSTELLO: The end result is priceless. But expensive. Men can pay well over $100,000 to fertilize a donated egg, then to have it implanted in another woman's womb. It sometimes takes several tries. But it's often the only way for a single man to have a child.
ADAM PERTMAN, EVAN B. DONALDSON ADOPTION INSTITUTE: In some ways, in some context there's some suspicion, a man wants to adopt a kid by himself. No as thought there's some nefarious motive.
UNIDENTIFIED MALE: That dress looks really pretty.
COSTELLO: Several states either ban or severely restrict adoption by gay individuals and couples. Jeff Walker knows that. He's single and gay. He tried to adopt and failed. So he turned to surrogates. And now he has two little girls. His only worry, the lack of a mother figure in their lives.
JEFF WALKER, SINGLE FATHER: It's a tough question. You know, I wonder myself. I task myself to make sure I try to do things that I think that mother would do. I don't know because I don't have estrogen what a mother might do in certain circumstances. But you know I try to be more tactile and to touch more.
COSTELLO: Walker's mother and his aunts are often around the girls to make sure they experience a woman's touch. How these children react when they understand how they were born, all of the men say the same thing, it will be just fine.
STEVEN HARRIS, SINGLE FATHER: I'm going to start telling him the truth even before he understands what the truth is. As he grows into it that will be the natural progression of what his life was.
COSTELLO: Harris who is single and straight had 21-month-old Ben through surrogacy.
HARRIS: I thought getting married was the way to go. Because I did want a family. But having Ben, I really do feel complete now.
COSTELLO: These dads agree, the process, and the often resulting exhausting task of parenthood is worth it.
GERR: I can't believe that I wondered whether I should do this or not. I can't imagine not having him in my life.
COSTELLO (on-camera): Now it is true, single parenthood is a lot more stressful especially if you're strapped for cash but there's no definitive objective study that says children raised by single men are any worse than children raised any other single parent home. In other words, dads can be just as nurturing as moms.
Carol Costello, CNN, New York.
(END VIDEOTAPE)
CHO: Santa baby. Santa is in the house right here at CNN. So are the kids. How cute are they? Get your kids to the TV set. That's next.
(COMMERCIAL BREAK)
(VIDEO CLIP)
CHO: Oh, yes. I-Reporters in the holiday spirit. This Christmas rap sent to us by Jonathan Collins of Tampa, Florida. He said he wrote the lyrics, shot and edited the video himself. It's just great. We want you to send us your i-Reports at ireport.com.
A lot of last-minute shoppers are hitting the malls today, looking for those last minute bargains. Retailers too are finding creative ways to lure you in, beginning with those holiday window displays.
(BEGIN VIDEOTAPE)
CHO (voice-over): 'Tis the season to shop until you drop. Or maybe not. These tough economic times are making it tough on retailers. So, department stores are doing everything they can to attract shoppers. The way to get them inside? Spectacular holiday window displays outside.
SIMON DOONAN, CREATIVE DIRECTOR, BARNEYS NEW YORK: Good economy, bad economy, the mandate is the same. We have to create desire in the consumer.
CHO: Department stores like Bergdorf Goodman and Barneys are known for their holiday windows. Tourists stand in line to see them. With Macy's it's a tradition that dates back more than 130 years.
ORLANDO VERAS, SPOKESMAN, MACY'S: The windows do draw a lot of attention. They bring us a lot of customers. It's one of the key elements of getting customers in the door.
CHO: It doesn't come easy. Store designers begin working on the displays a year in advance. Keeping them shrouded in secrecy, until the big unveiling.
DAVID HOEY, VISUAL PRESENTATION, BERGDORF GOODMAN: We're trying to entertain and inspire, and we're doing that, then we're doing our job.
STEPHANIE ROSENBLOOM, BUSINESS REPORTER, "NEW YORK TIMES": This has been one of the most difficult holiday shopping seasons in decades. When the November sales came out and the International Council of Shopping Centers said it was one of the weakest sales in 35 years, you know, for November.
CHO: And if projections hold true, December won't be much better. Why holiday windows are so important for business, why the mantra in this case is spare no expense. JIM GOLD, PRESIDENT & CEO, BERGDORF GOODMAN: For now, the windows are considered sort of sacred.
CHO: And while some tourists are happy to gawk and move on, others say a well-designed holiday window can make all the difference.
DANIELLE HAIR, HOLIDAY SHOPPER: It puts us close to the store and lured in from wherever we might be coming from. So, it probably increases the odds of getting more business.
(END VIDEOTAPE)
CHO: It does in some cases, according to Macy's, 7,000 people per hour come to the New York flagship store to see their holiday windows. So they say, even if a fraction of those people come inside and buy something, well the windows are well worth the time and effort and expense.
Well before you get those milk and cookies ready, check out Santa. He's here at CNN, making a stop here before delivering the toys.
So, Santa, aren't you busy? I mean, you've got to get on your sleigh?
SANTA CLAUS, FATHER OF CHRISTMAS: Very busy this time of year. The elves and Miss Clause are helping me out right now.
CHO: OK. So what's it like for you to be here at CNN? This is, I mean this is a last-minute stop really for you?
SANTA CLAUS: Yes, it is. And it is awesome. The kids are great. Everybody is great here in the facility.
CHO: By my count, 17 or 18 of you guys. All right. I want to talk to you.
What's your name and where are you from? Do you live here in Atlanta?
UNIDENTIFIED CHILD: Yes.
CHO: What's your name honey?
UNIDENTIFIED CHILD: Kennedy.
CHO: Kennedy and how old are you?
UNIDENTIFIED CHILD: Five.
CHO: What would you like to ask Santa for Christmas?
UNIDENTIFIED CHILD: A scooter.
CHO: Santa do you think we can make that happen?
SANTA CLAUS: We can what we can do this year.
CHO: OK.
SANTA CLAUS: She's been on the good list.
CHO: Oh really.
SANTA CLAUS: Yes, she had.
CHO: That's good to know Kennedy and what's your name.
UNIDENTIFIED CHILD: Calyn.
CHO: Calyn, and how old are you Calyn?
UNIDENTIFIED CHILD: Five.
CHO: And what would you like to ask Santa for Christmas?
UNIDENTIFIED CHILD: A Hannah Montana make up set.
CHO: A what?
UNIDENTIFIED CHILD: A Hannah Montana make up set.
CHO: A Hannah Montana make up set.
Does that sound like it's going to happen?
SANTA CLAUS: It's possible. She's been on the good list also.
CHO: Wow. Good job, guys. You had a great year and those red ribbons help. OK. Let's talk over here. What's your name?
UNIDENTIFIED CHILD: Grant.
CHO: How old are you, Grant?
UNIDENTIFIED CHILD: Four and a half.
CHO: Four and a half. That half is important. What would you like to ask Santa for Christmas?
UNIDENTIFIED CHILD: Bakugan.
CHO: What?
UNIDENTIFIED CHILD: Bakugan. Santa, I'm not sure that I know what that is.
SANTA CLAUS: Bakugan, it's kind of like a newer version of Pokemon and stuff.
CHO: Got you.
SANTA CLAUS: Right? CHO: I'm guessing he's on the good list.
SANTA CLAUS: Yes, sir.
CHO: Great. And what's your name, honey?
UNIDENTIFIED CHILD: Bennett.
CHO: Bennett, and how old are you?
UNIDENTIFIED CHILD: Six and a half.
CHO: And what would you like to ask Santa for Christmas?
UNIDENTIFIED CHILD: An elf.
CHO: An elf. Oh, an elf. Now that's an interesting request.
SANTA CLAUS: Well.
CHO: Are elves easier or harder around this time of year to get to the kids? Those are a little harder.
SANTA CLAUS: That's a little hard. They're busy right now, but we have some little elves this year that a lot of kids are getting.
CHO: OK.
SANTA CLAUS: They come into the house and they do weird things in the house. You never know. They mess up the kid's room, leave crumbs all over the place.
CHO: Yes, they do. Yes, they do. Now what -- OK, what's your name, and who do you have here?
UNIDENTIFIED CHILD: My name is Nicholas and this is Payton Michelle.
CHO: Hi, Payton. OK. And Nicholas how old are you and how old is Payton?
UNIDENTIFIED MALE: I'm 19 and Payton is four months.
CHO: You're 19. So have you put the milk and cookies out for Payton?
UNIDENTIFIED MALE: Not yet but I will.
CHO: You're going to do that tonight?
OK, any special requests from your family for Christmas besides peace on earth?
UNIDENTIFIED MALE: I guess Payton wants the Elmo Live and I don't know. I really don't know what she wants for Christmas this year. CHO: Payton's so cute she doesn't need anything.
UNIDENTIFIED MALE: She doesn't need anything.
CHO: All right, guys. Thank you very much. All right, we're going to bring Santa back in 30 minute. Can you stick around. I know you're so busy. Do you think you can stay around for another 30 minutes.
SANTA CLAUS: Oh, yes, we'll be here we're going to be reading to the kids and having a good time.
CHO: Wonderful, all right. Kids, don't move. We're going to get to some of you guys later, all right?
SANTA CLAUS: Thank you.
CHO: Thank you, Santa.
SANTA CLAUS: Home for the holidays or not, we are keeping track of where the troubled spots may be. We'll also get a check of the market. Keep it tuned to CNN.
(COMMERCIAL BREAK)
CHO: Traveling on this Christmas Eve? Be prepared to wait. If you're trying to go anywhere today. The day before Christmas is traditionally one of the busiest travel days of the year. Winter storms aren't making matters any easier.
Some airlines started canceling flights yesterday. Stranded passengers forced to spend the nights in terminals. It doesn't matter whether you're traveling by plane, bus or train, the story, unfortunately, is the same.
Bonnie Schneider watches it all for us in the weather center. So, Bonnie, where are the worst delays?
SCHNEIDER: Well, right now, it seems like Chicago's seeing a lot of delays. But one thing on the positive note, I like to start out in a positive way since it's Christmas Eve, we have over 4,600 planes in the air right now.
So, the planes are in the air, and a lot of them have taken off on time. Especially those early morning flights.
You can seep the bulk of the activity in the eastern half of the country. But still in Southern California up and at them.
But we are getting some delays in parts of Northern California. I want to walk over to the big board, and show you exactly where those delays are. You'll find them in Chicago. This delay's been sticking around for sometime, an hour and 40 minutes.
Also, in Newark, New Jersey, an hour and five minutes. We had light icing in this region earlier on in the morning. San Francisco, look out for some delays, an hour and 20 minutes. But we are anticipating delays even more delays throughout the afternoon.
Places that aren't seeing delays right now, you will see them later today. And some of those places off to the west in Portland and Seattle. That's where it's smoking. Also, Cincinnati, St. Louis, Chicago, Detroit.
Oh boy, there's a lot places that are going to be affected by one big weather system. Low pressure coming into the Great Lakes and pulling down much colder air behind it. It's a wintry mess across Milwaukee, Northern Illinois, places like Rockford. We're seeing a lot rain through much of the nation's midsection. And down through areas into the mid south, like Memphis, Tennessee. And then fog, also will slow you down.
With everybody traveling out there and dealing with all this inclement weather, we want to hear from you. Send us your i-report about your travel experience for this holiday.
Whether it involves weather delays or just the general experience. You can go to ireport.com and send us that information. We'd love to see it. You may see it here on CNN or cnn.com.
We know you have some stories to tell, so we'd love to hear them.
Let's take a look what else is going weather-wise. We're also watching this area here in the Midwest. Be cause rain and sleet will change to snow. What's happening is we're getting cold air that's pulling it down behind the system, so you'll that changeover. Which is important to note if you're driving.
Seattle, more snow for you. More snow in Olympia, Washington. It's just been a real mess of a winter so far. The winter only started a few days ago. So, we have winter weather advisories down through Oregon as well.
In Portland, to the north, you'll be seeing snow. And into the south, where the air temperature's warmer; it will be mostly a rain event. But the main thing to note is temperatures also. If you're packing and wondering for Christmas, be prepared to bring some very warm weather clothing. Because most of the country, Alina, is facing the big chill. We've got really cold temperatures in Minneapolis, Billings. All this cold air is headed to the south. And low temperatures tonight getting to be even colder for Christmas Eve.
CHO: Now the flip side, the positive side to that, Bonnie, is that there -- I think Aspen or Colorado Park said that they've got ten inches of snow yesterday.
SCHNEIDER: Great skiing conditions.
CHO: Great for skiing. All right, Bonnie, thank you.
SCHNEIDER: Sure. CHO: A daring water rescue after a massive water main break in Maryland. You watched it unfold right here on CNN.
Just listen to this terror-stricken 911 calls from one of the victims as the gushing water threaten to sweep her away.
(BEGIN AUDIO CLIP)
UNIDENTIFIED FEMALE: I can't stand this thing. I need help!
UNIDENTIFIED FEMALE: Ma'am, we're on our way. I have unit responding to you now.
UNIDENTIFIED FEMALE: I don't care. I can't see anything!
(END AUDIO CLIP)
CHO: Oh, just chilling to listen to that. The ruptured water main sent a wall of water cascading down a suburban street, transforming the road into a raging river. Nine motorists were trapped and needed to be rescued. Emergency workers pulled out all the stops using helicopters, boats and divers to rescue those victims. In all, five people were hurt, but thankfully none of those injuries were life threatening.
The weekend before Christmas and at stores throughout the country, very little was stirring.
Alison Kosik on the floor of the New York Stock Exchange, with details.
So, Alison Kosik, I was shopping, doing some last-minute shopping on Sunday in New York. The stores were empty. There were more workers than there were customers. It's bleak out there, isn't it?
ALISON KOSIK, CNN CORRESPONDENT: Yes. You're definitely not imaging it. If those stores seemed empty, it really is the case.
These retailers are struggling. I mean, think about it this way. The Saturday before Christmas, the number of people out there shopping was down 17 percent from a year earlier.
That's according to Shopper Track. And spending on the 20th though picked up a bit. It shows consumers were planning their trips a little bit more efficiently and still shopping anyway. But the bottom line continues.
It continues to be a tough season for retailers.
And there's also another sign of trouble, fewer people have purchased gift cards this year. According to the National Retail Federation , only 24 percent of people are buying gift cards. Compare that to 30 percent last year.
Shoppers are concerned that retailers won't be in business when it comes time to actually spend those cards, to actually redeem. And so far, many troubled companies though are still accepting those gift cards. The advice from experts is if you get those gift cards, go ahead and spend them when you get them. Redeem them. Because, you never know Alina, will those stores really be in business?
CHO: Well yes, going forward, I guess it's not much of a surprise that many people are cautious with their holiday spending this season. It doesn't really look good for January either.
You look at 586,000 jobless claims for the week. And anything over 400,000 is considered a benchmark for a troubled economy. It's just a lot of bad news out there, isn't it?
KOSIK: There really is. We got more reports on jobless numbers this morning. You're right, Alina.
It shows that the number of people applying for jobless benefits rose to a 26-year high. The last time we saw that number that large was back in November of 1982.
We also saw that orders for durable goods dropped one percent in November. It was less than expected, but nevertheless it did drop for those big-ticket items including washing machines and jets.
We also got another report about personal spending. It fell more than half of one percent in November. That's the fifth straight monthly decline. That's not only worrisome for retailers who are struggling these days but also for the economy as a whole.
When people stop spending, it's harder for the economy to bounce back. So, you know, when they lose their jobs, they have stop spending and the economy sort of goes on hold. We need to sort of pick that up.
Well let's see how stocks are doing, if they're back on track after seeing those reports. The Dow is in positive territory, up 35 points. The Nasdaq is also higher. We will see if we can ride out this positive feeling here on Wall Street. Until the close of the session today. By the way, we end three hours early. The session closes at 1:00 -- Alina.
CHO: And the markets are closed tomorrow for Christmas day. But let's hope for a Santa Claus rally. Alison, thank you.
KOSIK: Sure.
CHO: It is the day before Christmas. While visions of sugar plums may be dancing in some heads, many retailers can only dream of something else, profits. It has been a miserable shopping season, as you just heard. But are all those recession sale prices boosting consumer confidence?
CNN's Tom Foreman takes a look.
(BEGIN VIDEOTAPE) TOM FOREMAN, CNN CORRESPONDENT (voice-over): They may as well be ring happening alarm belles at retailer stores nationwide. All those signs of deep discounts on the doorstep of Christmas are signs of a brutally cold holiday sales season. Sure, that's great news for consumers with enough confidence to buy.
UNIDENTIFIED MALE: Went up to the register and found out this was 25 percent off and I didn't even know.
UNIDENTIFIED FEMALE: You can buy one and get one free.
UNIDENTIFIED FEMALE: It's like 25 percent off, 30 percent off.
UNIDENTIFIED FEMALE: We've been doing very well with the sales.
FOREMAN: But all that is terrible for retailers. The International Council of Shopping Centers is predicting the worst holiday season in decades. With sales actually falling, perhaps 2 percent where they usually rise.
With retail accounting for a quarter of the jobs lost already this year, this will cost even more.
And as it is, our latest CNN opinion research poll shows more than nine out of ten Americans think the economy is in poor shape.
UNIDENTIFIED FEMALE: I think it's going to get worse before it gets better.
FOREMAN: That's not very encouraging.
UNIDENTIFIED FEMALE: That's what I think.
KEATING HOLLAND, CNN POLLING DIRECTOR: Sixty-sic percent say the economic conditions are very poor. I'm not sure we've ever seen anything like that in recent polling history at any rate. This time last year, it was only 21 percent saying things were very poor. That is when, you're recall, was when this recession officially began.
FOREMAN: Even those who are spending like Angie Gracer (ph) are keeping a careful eye on the bottom line.
ANGIE GRACER, CONSUMER: I know in Walmart and other locations like that, they definitely have lowered the prices.
FOREMAN: Much lower than usual?
GRACER: Yes. I think so. Absolutely. I'm a bargain shopper. I don't pay top dollar for anything unless I absolutely have to.
FOREMAN (on-camera): Looking for some good news?
Well, our poll also found that most of you think the economy will be doing better by next Christmas.
Tom Foreman, CNN, New York. (END VIDEOTAPE)
CHO: That's a long time to wait.
The nation's housing crisis and a company that reached out to customers in need. Some good news on this Christmas eve you won't want to miss.
(COMMERCIAL BREAK)
CHO: Check it out. The sights and sounds of the season. This scene sent in by i-Reporter James Woods. No, we're not talking about the actor. This regular James Woods in Murray, Utah and says the tiny neighbor gets a ton of traffic. I'm sure that's part of it there. Passersby can even tune in their radios to hear the music that is synchronized with the lights.
Can you imagine the work that goes into that?
For dozens of laid off workers in Ohio, it's nothing short of a Christmas miracle. With job prospects bleak, bills mounting and the holidays looming, hope seemed lost for those who lost their jobs in October when the Archway Breakey (ph) shut its doors. That is until 60 of them got called back to work by the company's new owners.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I'm like, what are these people doing? They don't know me. They don't know us. They didn't know any of the Archway people and they're giving each and every one of us $1,500.
(END VIDEO CLIP)
CHO: All of the 300 laid off workers were given the debit cards by Archway's new owners. The snack company had bought that other company at a bankruptcy auction. Hopes are high that all the other workers will be called back to the job eventually. That would great.
Hard times have forced many companies to abandon holiday parties this year. We wanted to recognize one corporate citizen that invested those savings elsewhere.
Listen to this. I.N.G. Direct, the nation's largest savings bank, took its $900,000 budget for the holiday party and decided to pay the January mortgage bills of some of its customers.
As you might imagine, the response was huge. More than 5,000 homeowners applied, 500 of them were chosen in phone calls like this.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: We did hear them say, we're going to pay your mortgage for the month of January.
UNIDENTIFIED FEMALE: Wonderful. Oh my word -- oh my goodness.
(END VIDEO CLIP)
CHO: And here to fill in some of the details, CEO Arkadi Kuhlmann, he joins us from Philadelphia. First of all, I want to contribute you, Mr. Kuhlmann on this. Because it really gives new meaning to the old adage, better to give than to receive. So, congratulations, well done.
I want to talk about just how you chose these people. More than 5,000 people applied. You chose 500. This was an essay contest, right? Tell us about it.
ARKADI KUHLMANN, CHAIRMAN, PRESIDENT AND CEO OF ING DIRECT USA: Well, I think, one of the most exciting things was of the associates I have the privilege of serving with, I had a chance to get together and pick from these 5,000 letters. And so we actually had a team of eight people that basically reviewed, read all these letters and picked them on all kinds of items.
CHO: Yes. What was the criteria. What was the criteria.
KUHLMANN: Well, the criteria was really basically people that were doing something positive. It wasn't just people that were having problems with their health or their job. But also people that were positively saving. People that were trying to basically keep their family together, keep their home together. So really is a bit of on the house. I mean, just remember, you can always live in your home but you can't exactly live in a stock or a bond, right?
CHO: Yes, and it's just incredible. Because we were just showing, I believe your Web site, that shows state by state all of the people you have helped by first name only to protect their identities. Having said that, I'm just curious. What has the response been from your employees?
KUHLMANN: Well, I think it was an eye opener for all of us associates. Because we got together in the lobby of our buildings and listened to a lot of the phone calls that we did to reach out to these people. And gave them the good news. And of course they were very thrilled and joyed to get this random act of kindness.
But there was not a dry eye in the room of our employees who were saying, you know what? We don't want to have another party ever again. We want to do something so we can share it with our customers. Let's not cut the expenses this time of the year. And bring it to the bottom line. Let's cut some expenses and give it back to our customers, the people in our communities, our neighbors.
CHO: Mr. Kuhlmann, I'm just curious. Why did you decide to do this? I mean, it's such a huge thing to do, $900,000. That's a lot of money. You probably could use that in these tough times.
KUHLMANN: Well, we could. But you know, the associates at I.N.G. Direct also do sort of orange days of giving where in the summer we get together and we refurbish schools or we do Habitat for Humanity or build a girl guide camp. And so, we have this community interest because we are sort of on Main Street, helping Americans save their money with their orange savings accounts.
So, we said this is natural thing. Where we said, listen, we've got to start cutting back some of our expenses. And it's a question of sharing. This idea actually came from the employees. It came from the associates that said, maybe we can do something to help our customers. And one thing led to another. Here we've got Santa Claus in the banking industry. I mean, it couldn't get much better than that.
CHO: Well, other than health and happiness, this is the ultimate Christmas gift, holiday gift. So I.N.G. Direct, CEO Arkadi Kuhlmann, Congratulations again. I'm glad you've thought about doing it again next year and years after that. I hope you do. Thank you very much.
KUHLMANN: Best of the holiday to everyone.
CHO: And to you, as well.
KUHLMANN: Thank you.
CHO: A special guest has stopped by this Christmas eve. Take a look -- take a look at those kids. And there he is. Old St. Nick, Santa's here in the house with CNN surrounded by kids, and hearing their wishes.
(COMMERCIAL BREAK)
CHO: Take a look at that, there's decorating for the holidays; then, there's this. Every neighborhood has a house that's all decked out. This one well, it's in the Philippines. Our i-Reporter, J.V. Abellar, catching the Christmas spirit.
Just beautiful pictures. And if you want to share your holiday pics with us, simply go to ireport.com. We'll try to share them with all of you.
Christmas Eve in Bethlehem, believed to be the birthplace of Jesus. Thousands of Christians are there. And in the crowd, CNN's Ben Wedeman.
(BEGIN VIDEOTAPE)
BEN WEDEMAN, CNN CORRESPONDENT: Most of the year, Bethlehem is a pretty quiet place. But for Christmas, they pull out all of the stops. Throughout the day here at Manger Square one scout troop, many of them Christian scout groups, parades through the area, making lots of noise, putting on quite a show.
Also, on Christmas Eve, the Latin patriarch, whose based in Jerusalem, comes here in a procession and goes to the Church of the Nativity. For Palestinians (INAUDIBLE) than Christians, Christmas is a time of celebration. And it's particularly important for Palestine's small and shrinking Christian community. For them, it's an opportunity to remind the world that they're still here.
I'm Ben Wedeman, CNN, reporting from Manger Square, Bethlehem.
(END VIDEOTAPE)
CHO: And then there is this, a Christmas message to the Brits from Mahmoud Ahmadinejad. A British TV channel will broadcast a -- quote, unquote -- "spiritual address" from the fiery Iranian president on Christmas day. It's sort of a tradition for the network, which has presented an alternative to the queen's Christmas day broadcast for 15 years.
Decorating Christmas trees, getting gifts from Santa, that's Christmas in Iraq. Children there celebrated Christmas Eve at their school on Palestine Street. That's in Eastern Baghdad. Santa even dropped by to hand out toys to cheering kids. The Catholic school, by the way, opened in 1944 and accepts both Christians and Muslims.
That Santa is a busy guy. He's going to be back with us right here at CNN in just a couple of minutes. Look, he's really busy. And the kids, they're not done with their wish list yet either.
(COMMERCIAL BREAK)
CHO: Well take a look at that. It's Santa's home. I-Reporter Gina Locke shares her visit to the North Pole. Look at those reindeer too. She checked on Rudolph and the gang to make sure they were ready for tonight. Kids can't get enough of that.
And you can share your holiday memories with us too. Simply go to ireport.com.
Santa will be on his way to your house very soon. But he's stopping by here first and he's getting an earful from all of our young guests who are gathered around Santa.
So Santa, I want to ask you, first of all, this is a very busy time. We're talking Christmas Eve. So what's left? Those elves are busy wrapping gifts, aren't they?
SANTA CLAUS: Yes they are. They have been extremely busy, but we will have it ready to go tonight.
CHO: OK. It's always like a last-minute thing, right?
SANTA CLAUS: Oh, yes. We have to check the naughty list one more time and add some last minute gifts because kids do change their ways and become good.
CHO: That's right. Sometimes at the last minute they can change.
SANTA CLAUS: Oh, yes. CHO: And hopefully we've got more on the good list, though, this year.
SANTA CLAUS: Oh, yes.
CHO: All right. Well some of the people on the good list are right here with us today.
Hi, what's your name?
UNIDENTIFIED CHILD: Jamie (ph).
CHO: Jamie. And this is your little sister? What's her name?
UNIDENTIFIED CHILD: Sydney (ph).
CHO: Sydney? OK, Jamie, what would you like to ask Santa for Christmas?
You've got enough red shirts I know that. Anything in particular?
UNIDENTIFIED CHILD: A million bucks.
UNIDENTIFIED CHILD: My two front teeth.
CHO: My two front teeth?
UNIDENTIFIED CHILD: Yes.
CHO: Is this your little brother? What's your name, hun?
UNIDENTIFIED CHILD: Eric (ph).
CHO: He's smiling.
OK, I'm going to move on to you. What's your name, hun?
UNIDENTIFIED CHILD: Olivia.
CHO: Olivia, how old are you?
UNIDENTIFIED CHILD: 11.
CHO: And do you have a special request from Santa on this Christmas Eve?
UNIDENTIFIED CHILD: Yes, I want a new coat and a new softball glove.
CHO: New softball glove. Oh, wow, an athletic girl. We love that.
OK, Santa, what's it looking like? Is she on the good list this year?
SANTA CLAUS: Oh, yes.
CHO: She looks like she's on the good list.
SANTA CLAUS: Oh, yes.
CHO: And you have your Christmas tree earrings, so that's always good.
What's your name, honey?
UNIDENTIFIED CHILD: Alexandra (ph).
CHO: Alexandra, how old are you?
UNIDENTIFIED CHILD: Six.
CHO: 6-years-old. And do you have a special request for Santa?
UNIDENTIFIED CHILD: Yes, I want a guitar and new -- a pair of boots.
CHO: OK. And how old are you?
UNIDENTIFIED CHILD: Six.
CHO: Six -- you play the guitar? OK, great. That's great.
All right, guys. All of you have been on the good list. I'm going to go ahead and venture to guess that they've all been good this year, right, Santa?
SANTA CLAUS: Yes, everybody here has been excellent this year.
CHO: OK. And Santa, do you have a final Christmas wish for everyone out there who's watching?
SANTA CLAUS: Yes, I hope everybody has smiles tomorrow and it's a pleasure to bring smiles, joy and happiness to all the young and old alike.
CHO: And are all the reindeer healthy?
SANTA CLAUS: Oh, yes. They've been well fed for the last month and getting worked out and ready to go.
CHO: OK. And Rudolph is good too, right?
SANTA CLAUS: Yes. Rudolph's nose is glowing bright right now.
CHO: You guys like that? Oh, boy. Oh, boy. That's OK. She's still good. She's still on the good list.
SANTA CLAUS: Oh, yes. That doesn't count. No strikes against her for that.
CHO: All right, guys. I will be back again tomorrow morning starting at 9:00 a.m. Eastern everybody. Thanks so much for joining us.
Oh, poor thing.
Right new, CNN NEWSROOM with Tony Harris.
