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Stocks Higher After Jobless Claims Slide; LeBron James Makes His Decision
Aired July 08, 2010 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DREW GRIFFIN, CNN SPECIAL INVESTIGATIONS UNIT: You think you were poisoned out there?
ROY DALTHORP, EXXON VALDEZ CLEAN-UP WORKER: Yes, yes -- silently poisoned.
(END VIDEO CLIP)
TONY HARRIS, CNN ANCHOR: A CNN special investigation into lessons learned from the Exxon Valdez disaster.
And scoring LeBron James.
(BEGIN VIDEO CLIP)
STEPHEN A. SMITH, FOX SPORTS RADIO HOST: It's instant millions. You're talking about paraphernalia being sold, you're talking about hotels being filled, restaurants being filled.
(END VIDEO CLIP)
HARRIS: Millions at stake and the cities in the running find out tonight whether they can get King James.
Let's get started with our lead story
Taking stock of your money. The markets are in positive territory right now. They've pulled back a bit from the rally at the opening bell.
But the Dow, NASDAQ, and S&P are all trading higher. Part of the reason, first time claims for unemployment benefits fell by 21,000 last week. That's a little better than economists expected. But it is still not great.
Christine Romans from our money team will be joining us shortly. And she is here now.
Christine, good to see you. All right, you said on Monday that the next five days would be really important.
CHRISTINE ROMANS, CNN CORRESPONDENT: Yes.
HARRIS: It's -- let's see -- it's Thursday. Give us a reset here.
ROMANS: OK. Here's the reset: the number you just showed, the jobless claims? That's an important number to watch.
You're absolutely right, Tony -- 454,000, it's still too high, it's not good. We don't want that many people every week lining up for the very first time to get jobless benefits. But it's not as bad as the week before, when it was 472,000. It's not as bad as people thought it would be this week. So, that's an improvement.
Also looking at a couple of other things -- in Europe, banks are going to be undergoing stress tests. There's a lot of talk about how strong and viable and vibrant will those banks be. And there's been a lot of speculation about it. But the euro is a little stronger. And so, that's helping people have some confidence about putting -- putting their money in some other riskier assets like the stock market.
HARRIS: Yes.
ROMANS: And we're building on yesterday's gains -- building on yesterday's gains, two days in a row of gains, back to back, after a brutal, brutal decline since April would be -- would be a sign that the a least some investors, Tony, are starting to think that they have priced in the worst-case scenario.
HARRIS: Right.
ROMANS: This is what the S&P looks like for this year. This is what's in your -- your stocks that you have in your retirement fund. The S&P is 500 different companies, so it's more likely that it looks something like this. It's down well -- yesterday, up 3 percent, up again today, down 13 percent since the peak, down 6 percent year- to-date.
A lot have been -- a lot of talk about, will we enter a bear market? You know, we're not there yet. And you're seeing some stability in the market at least yesterday and today.
But I will make a bold prediction, Tony.
HARRIS: Come on. Come on.
ROMANS: I'll make a bold prediction that it's going to be an unpredictable summer for the stock market. How's that?
HARRIS: You went out on that limb, didn't you? Hey, you mentioned European banks going out and getting stress test done on them. Here's an important question: will those results be made public? We'd like to know.
ROMANS: You know, that's a good question. And we would like to know, of course, and I'm not sure about the answer to that or what -- to what extent they will be made public --
HARRIS: Yes.
ROMANS: -- or how long after they're done they'll be made public. But you'll remember that U.S. banks have already -- have already gone through this whole exercise. So, we -- we've already got this part of the whole equation behind us here in this country.
The big question is, is how much, how much exposure do American banks have with the European banks and to Greece and to some of these other -- other places that are more concerned about sovereign debt issues and the like. But just the relief in the euro right now.
You've also got crude oil that was up yesterday, it was up again today. That's showing that maybe -- you know, maybe the economy -- the global economy will grow a little stronger than people had feared. There's just -- Tony, I'm telling you --
HARRIS: Yes?
ROMANS: -- there's still just this maddening argument between whether we're going to have slow global growth or we're going to have some sort of a double-dip recession, which would be contraction. And we don't -- we just won't know the answer to that until -- until it's in the rear-view mirror.
HARRIS: Well, I ask the question because if the results come back on those European banks and they stress out pretty well, that could potentially provide a nice little shot in the arm for the global economy, correct?
ROMANS: Yes.
HARRIS: OK.
ROMANS: Absolutely. I mean, any time you take out an uncertainty, that's a good thing.
HARRIS: Yes. Yes. All right, Christine, good to see you. Thank you, lady.
Talk about a boost for the economy -- landing LeBron James could mean millions for one lucky city. After all of the hoopla and all of the pleading from NBA teams, he is set to announce his decision on ESPN in a few hours, really -- shortly after 9:00 p.m. Eastern Time.
CNN's Mary Snow has more on what it would mean for the city he chooses.
(BEGIN VIDEOTAPE)
MARY SNOW, CNN CORRESPONDENT (voice-over): Was a yawn a sign he made up his mind after being courted by six NBA teams or not? Well, LeBron James looked relax at his basketball camp in Akron, Ohio, Cleveland is on pins and needles, waiting to hear if he'll stick with the Cavaliers or pack his bags.
GREG BRINDA, ESPN CLEVELAND: If he goes, I mean, the mood is going to -- it's going to be really, really bad. Right now, people are just -- you know, they can't wait for the hour to come to finally know what he's doing.
SNOW: Despite Ohio's begging where the governor is even joining the chorus --
CROWD (singing): Please stay, LeBron, we really need you!
SNOW: -- speculation turns south to Miami, where two of James' NBA friends are heading. On YouTube, Dwyane Wade announced he and Chris Bosh will sign with the Miami Heat.
DWYANE WADE, NBA PLAYER: At the end of the day, my heart led me back here, to Miami.
SNOW: FOX Sports radio host Stephen Smith is convinced James will follow.
(on camera): What will it mean for the city of Miami if he goes there?
STEPHEN A. SMITH, FOX SPORTS RADIO HOST: It's instant millions. You're talking about paraphernalia being sold. You're talking about hotels being filled, the restaurants are being filled, the whole night scene improving dramatically, and millions upon millions of dollars being generated for that respective city.
UNIDENTIFIED MALE: Come on, LeBron!
SNOW (voice-over): And that's one reason why cities like New York tripped over themselves to court LeBron James.
One University of Illinois economics professor did the math on potential revenue for cities assuming James brought its team deep into the playoffs, the larger the population, the higher the number. Cleveland by its estimate, $100 million; Miami, $275 million; Chicago and New York stand to gain even more.
Cleveland has already felt the financial impact.
BRINDA: You're probably getting 6,000 to 7,000 more fans per game after LeBron than before LeBron. That's a lot more money that they're generating per game.
SNOW: While Cleveland is crossing its fingers, what does Miami think?
KRISTINE MELEGNI, SPORTS FAN: I'm really tired of hearing the name LeBron. It's over, it's played out. He's milking this for all he's worth.
BILLY GREEN, SPORTS FAN: My friend just called me and he's like, I'm buying new season tickets -- and that's just with Dwyane Wade and Chris Bosh. So, I can only imagine when LeBron James -- LeBron James comes. It's amazing.
(END VIDEOTAPE)
HARRIS: Man. All right, Mary Snow joining me from New York. And, Mary, I almost hate asking this question because we seem to be so centered on New York. Does anyone care about Cleveland? Does anyone care about South Beach? Well, I care about South Beach. But how is it looking for the Knicks?
SNOW: Well, you know, Tony, yesterday, it seemed that investors were really betting that he would go to the Knicks, because the parent company of the Knicks, the stock had been up more than 6 percent. But today, however, that stock is lower. So, maybe, they're not so sure now about the Knicks.
HARRIS: Yes. Yes. Yes, yes. I think it's, you know, Cleveland or it's -- like I know. But it's Cleveland or Miami, come on. Win rings.
All right, Mary, good -- but -- but --
SNOW: But then again he's making -- then again he's making his announcement in Connecticut tonight. He's going to be in Greenwich, Connecticut, when announces this. Does that mean anything? He'll be in the Knicks' back yard -- tons of speculation.
HARRIS: Tons. All right, Mary, appreciate it. Thank you.
And later this hour, we will keep the speculation game going. We will hear from NBA TV analyst, Eric Snow, and Cleveland "Plain Dealer's" sports reporter, Branson Wright, on where they think LeBron will go.
I got tell you, it reads like a spy novel from the Cold War days but it's real. Russians living undercover in the United States accused of passing information to Moscow. They're about to be arraigned in New York. We will get a live report.
First, though, a "Random Moment" in 90 seconds.
(COMMERCIAL BREAK)
HARRIS: We couldn't decide on today's "Random Moment of the Day," so you get two for the price of one.
First, this voluptuous South American lingerie model promised to run through the streets nude if Paraguay won the World Cup. Well, the team has been eliminated. But don't -- don't fret, the model says she will take a naked job, anyway. It is a present for Paraguay's team and for all the people to enjoy. Thank you.
Next, Iran is cracking down on men's hairstyles. Gelled-up spikes, pony tails and mullets are taboo. Preferred cuts shown on Iranian TV -- bring to mind, let's see here, Beaver Cleaver, or an Elvis pompadour. Deviant western practices like eyebrow plucking are also black-listed.
And there's this photo, a random chump in a power -- let's go to the break, please. We're back in a moment.
(COMMERCIAL BREAK)
HARRIS: Police in Europe arrested three suspected al Qaeda plotters today -- two in Norway, one in Germany. Authorities link the trio to last summer's thwarted plot to bomb the New York subway system.
The man who was to be the subway bomber, Colorado resident, Najibullah Zazi, was arrested last September. He has pleaded guilty in New York in the case. He is cooperating with federal authorities.
Authorities also tie the three Norwegian residents to a planned attack on a shopping center in Manchester, England, in the spring of 2009. Prosecutors in Brooklyn yesterday announced an indictment against the man they say was the facilitator of the U.S. and U.K. plots.
In a flashback to the Cold War, 10 Russians accused of spying while living undercover in the United States are about to be arraigned in New York. And along with that, reports of a spy swap. It gets complicated here.
CNN national correspondent, Susan Candiotti, is following the story for us from New York.
Susan, you've got some new developments to tell us about here.
SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: You know, Tony, it's almost like a scene out of a Hollywood spy movie, isn't it?
HARRIS: Yes.
CANDIOTTI: And you know -- yes -- and when I did the math on this, do you realize, let's remember here, the people that were picked up, these 10 alleged Russian spies, were picked up 11 days ago. It was the end of June. Only 11 days have passed. The fact that this could apparently come together so quickly, you know, is simply amazing.
But what we are hearing from a source that has details of the investigation is that we can fully expect a pleas to take place, guilty pleas to take place, at this arraignment today and for this case to be very, very quickly wrapped up.
And we understand that they will be pleading guilty to failing to register as a foreign agent for Russia acting here in the United States. And that the other charge, a money-laundering conspiracy charge could simply go away and that they would be sentenced in effect to time served, less than two weeks. And that the deportation or removal from this country could happen as early as tonight, but certainly very soon at the very least.
And as you indicated, Tony, this appears to be part of an elaborate spy swap. Ten people who are currently in custody. Remember, there's an 11th person currently at large. He took off after he was assigned bail in Cyprus. But these 10 people would be getting on a plane and getting out of the country -- in return for some Russian spies who were spying for the United States and coming back.
And we know that according to a state-run Russia news agency, that one person we believe to be involved in the swap is someone who was convicted back in 2004. And he, as we understand it, has already left Russia, is on a plane and landed in Vienna, already. So, further evidence that this is all coming together very, very quickly.
HARRIS: Yes.
CANDIOTTI: The other interesting thing to note, Tony, is that, remember we've got at least five children that we added up, belonging to at least three couples who were involved in this, children who are living in the United States. So, would they be going, too? Would they stay here? Questions we still don't have the answers for.
HARRIS: OK. Susan Candiotti -- a lot of questions out there -- in New York for us -- Susan, good to see you. Thank you.
And the man Los Angeles police say is the serial killer known as the "Grim Sleeper" is expected in court today. Lonnie David Franklin, Jr. is charged with killing 10 women over a 25-year span. Detectives used DNA from the crime scenes to find a relative. That led them to Franklin.
The murders began in 1985. For 13 years, the killings stopped, leading to the nickname, "Grim Sleeper."
The father and brother of one victim expressed relief.
(BEGIN VIDEO CLIP)
DONNELL ALEXANDER, BABY SISTER KILLED: It's definitely going to bring some closure. It's not going to bring her back. But I may sleep a little easier.
PORTER ALEXANDER, YOUNGEST DAUGHTER KILLED: I know my daughter is smiling down on me, knowing that we got him.
(END VIDEO CLIP)
HARRIS: Only California and Colorado use this particular type of DNA to search out relatives of a criminal suspect.
The future takes flight. Sun powers this record-breaking trip.
We're back in a moment. You're in the CNN NEWSROOM.
(COMMERCIAL BREAK)
CHAD MYERS, AMS METEOROLOGIST: Everybody, I'm meteorologist Chad Myers. Here, we're taking a look at what is landfalling tropical depression number two, it never made Bonnie. I know our Bonnie Schneider is sad.
(CROSSTALK)
MYERS: It never made it and even some people say that this may have never even been a tropical depression at all. But it certainly will make rainfall, and heavy, heavy rainfall across parts of the lower Mississippi Valley here as we work our way into the next couple of days.
I know where we are now -- we're in the Rio Grande Valley. What we really talk about is Mississippi Valley. Well, this will move onshore as it is today. It actually made landfall very close to South Padre Island, where our Reynolds Wolf was for the other storm, Alex. Alex made landfall about 100 miles south of there.
Then it will kind of make a right-hand turn and dump a lot of rainfall here across parts of Texas and then make its way up across maybe the Mississippi River Valley and then dump the rest of it.
So, we're not talking about significant tornadoes with this. We're not talking about feet, you know, 10 inches, 20 inches of rainfall, but if you get four to five inches on places that had Alex, we could see flooding, anyway just because of the way it's all worked itself out.
But that's the good news, Tony, really, this thing was --
HARRIS: Yes.
MYERS: -- how we want it to happen. Literally, we want it to just come onshore as a either named, a very small, 40-mile-per-hour storm, or nothing at all. Like a number, like TV number two.
Not quite as hot today as it's been -- 92 in Richmond. The heat is actually kind of moved a little farther to the south. Charlotte, you'll have your warmest day of the week. Atlanta will have the warmest day of the week, where temperatures may even make a run at 100 degrees over the next couple of hours here.
Richmond, Virginia, was 104 yesterday; Danville, Virginia, at 104; and even Philly at 103.
Tony, lots of sunshine.
HARRIS: Lots of sunshine. Which brings us do a question.
MYERS: Did you like how I toss that to you?
HARRIS: That was -- that was absolutely perfect. That's why you got a big bus, because you're a trained professional to this.
We've got pictures of a solar plane.
MYERS: Yes.
HARRIS: And we know the promise of solar energy.
MYERS: Correct.
HARRIS: Is there something in this technology, what we're about to show, folks, that maybe speak to the future of how we power our vehicles, our homes, and gets us off the electrical grid and on to something bigger and better?
MYERS: No question about it. We're still fighting with the efficiency issue of the -- of photovoltaic cells.
HARRIS: And storing the battery.
(CROSSTALK)
MYERS: Correct.
HARRIS: Yes.
MYERS: Correct. And the reason why this happened on this date is that this is close to, not quite, but closest to the longest daylight day of the year, shortest nighttime night of the year. The reason why they do the 24 hours of them all on the longest day of the year or close to that -- close to that time, because it didn't have to use the battery energy for a long time.
HARRIS: Right.
MYERS: This thing used batteries all through the night and flew 26 hours before landing. Now, that said, the guy didn't go anywhere.
HARRIS: Right.
MYERS: He landed in the same place that he started. But that's OK. He went 25 miles per hour for 26 hours without using one drop of fuel.
So, yes, there's an answer there somewhere. We're decades away.
HARRIS: Right.
MYERS: But I just -- I can't understand why these electric cars that they're selling as hybrids don't have these roof panels, anyway.
HARRIS: Right. Right.
MYERS: Collect the sun when it's sitting out there in our parking lot and then drive for free, at least for a little bit, and you can drive for free for 10 miles. Free is free.
HARRIS: Boy, if we could get that battery technology --
MYERS: Yes.
HARRIS: If we could get that solved, wow, can you imagine?
MYERS: Think about 10,000 cell phone batteries in the back of your car.
HARRIS: Yes.
MYERS: Then you're driving around, you know?
HARRIS: Exactly. All right, Chad.
MYERS: All right.
HARRIS: Fingers crossed.
MYERS: Yes.
HARRIS: Top stories for you now on day 80 of the Gulf oil disaster. A turn for better in the weather, and now, skimming boats are restarting their clean-up efforts, and they were put on hold as you recall during Hurricane Alex. BP says if the weather holds, it could have the relief well in place to stop the leak by the end of the month.
Other top stories we're following for you in Pennsylvania, two people are still missing after a tour boat and a barge collided on the Delaware River. The tour boat known as a duck boat overturned.
"Glee" -- are you familiar with this show? Pretty popular with the kids? The younger set? Certainly has something to cheer about -- the popular TV program has garnered -- wow -- 19 Emmy nominations.
Dozens of workers helping clean up the Gulf oil spill have fallen sick.
(BEGIN VIDEO CLIP)
RIKI OTT, MARINE TOXICOLOGIST: BP is forcing them into the situation where BP holds all the cards. And BP is letting these workers get sick.
(END VIDEO CLIP)
HARRIS: It is deja vu for Exxon Valdez clean-up crews. Our Drew Griffin talks to a man who is still sick after two decades -- two decades after the Alaskan spill.
(COMMERCIAL BREAK)
HARRIS: So, we're 80 days into the Gulf oil spill and here are the latest developments as we know them: Improved weather is allowing oil skimmers to restart their clean-up efforts after a few days' hiatus.
Meanwhile, the man in charge of the federal response says BP is in the final days and weeks of stopping the leak. And at briefing this morning, retired Coast Guard admiral, Thad Allen, said relief well drilling is ahead of schedule. BP has said it could tap into the damaged well by the end of July if there are no more major storms.
But Allen says he doesn't expect the work to be completed until mid-August.
(BEGIN VIDEO CLIP)
ADM. THAD ALLEN, NATIONAL INCIDENT COMMANDER: The relief wells, Development Driller 3, which is the lead drilling rig for the relief wells, is now at 17,780 feet measured depth, within a couple hundred feet of the proposed penetration point of the wellbore. We are down to the final days and weeks of closing in to a point where we can intercept the well. Our target date remains the middle of August.
(END VIDEO CLIP)
HARRIS: More than 100 workers who have been helping clean up the oil spill have gotten sick and that sounds more than familiar to the fishermen from the Exxon Valdez spill in Alaska.
Drew Griffin, with our Special Investigations Unit, sat down with one of the workers who is still suffering 21 years later.
(BEGIN VIDEOTAPE)
GRIFFIN: (voice-over): Roy Dalthorp says he started getting sick 21 years ago when the Exxon Valdez hit a reef in Alaska. But back then, he thought the Valdez was a blessing.
ROY DALTHORP, EXXON VALDEZ CLEAN-UP WORKER: I was -- I was out of a job, I was --
(CROSSTALK)
DALTHORP: I was definitely heading to -- I had no choices on that because was behind in my house payments, so -- and no health insurance.
GRIFFIN: For six weeks, he worked on a ship that super-heated sea water to pressure-wash Exxon's crude oil off of rocks. His photos on board show the steam that he says was an oily, smelly mist permeating the ship where he worked 16-hour days. And that is when the cough began.
DALTHORP: Nobody ever checked with us, nobody. They never did a follow-up on us, never asked if we ever had any consequences of it. They could have cared less. I'm serious. There was no follow-up.
GRIFFIN: Exxon told us, it doesn't know how many clean-up workers became sick. Dalthorp never filed a lawsuit, never filed a claim. He could never prove the work he did on the Valdez made him sick.
(on camera): Exxon did pay to study the health effects of almost every single creature that came in contact with oil in Prince William sound -- every creature, but one.
DENNIS MESTAS, ATTORNEY: From clams as and mussels to fish and otters and even deer and bears, but they never studied what the oil was doing to the workers, to the human beings in Prince William Sound.
GRIFFIN (voice-over): Alaska attorney, Dennis Mestas, represented one of the few workers who did sue. But in the process found out that hundreds of workers involved in the clean-up had fallen sick.
(on camera): And you found all of this out years later based on --
MESTAS: On one worker that I represented.
GRIFFIN: Who is still sick today?
MESTAS: Who is still sick do this day. Even Exxon was forced to concede eventually that Gary Stubblefield was a very sick man.
GRIFFIN (voice-over): Mestas' client, Gary Stubblefield, sued Exxon in the Valdez cleanup. Mestas traveled from Alaska to an Exxon office in Houston where Stubblefield's medical records and those of thousands of other clean-up workers were being held -- records Exxon has asked the court to seal for privacy reasons.
MESTAS: I was shocked, yes.
GRIFFIN: Mestas says the records reveal of 11,000 clean-up workers, 6,722 had gotten sick. It was explained away as a simple virus, the so-called "Exxon crud" -- a flu or cold that Exxon was not required to report to federal health officials. At the time, NIOSH, the National Institute of Occupational Safety and Health, was in agreement.
MESTAS: Total B.S. The only epidemiology was that there were a few head colds that they could identify. And NIOSH didn't have any of the records.
GRIFFIN: Exxon never admitted fault in Stubblefield's case but reportedly settled the lawsuit for $2 million. Stubblefield, one of the very few workers to get compensation.
Exxon says the few lawsuits brought failed to show evidence of injuries or illnesses known to be caused by exposure to crude oil or the chemicals they used to clean it up.
Keeping them honest, Dennis Mestas, the attorney, says he is concerned that workers cleaning up in the Gulf today may be headed for the same fate as the Exxon Valdez workers. They get sick while their medical records are controlled by BP.
Louisiana's health department has reported 128 clean-up workers believed to be sick from exposure to the spill. But BP tells us, they have reported just five illnesses related to inhalation exposures in the entire Gulf.
(on camera): BP is also insisting that the government air- testing is showing, quote, "We have not had a single reading above OSHA regulations to date." And as for respirators, the company says there has been no demonstrated need for them. No single issue high enough to warrant a respirator.
OTT: On anything that I thought --
GRIFFIN (voice-over): Dr. Riki Ott, an environmental activist, studied the effects of the Exxon Valdez spill 21 years ago.
With this BP spill, she says, once again, out of work fishermen are lining up for clean-up jobs that she says will put them in harm's way.
OTT: I'm feeling like BP is forcing them into this situation where BP holds all the cards. And BP is letting these workers get sick.
GRIFFIN: Back in Alaska, Roy Dalthorp's coughing has never stopped. He now has skin rashes -- his health literally crumbling.
DALTHORP: I'm going blind.
GRIFFIN (on camera): You think you were poisoned out there?
DALTHORP: Yes, yes -- silently poisoned. And that's what's happening to those people down in the Gulf.
(END VIDEOTAPE)
HARRIS: Drew Griffin joining us now.
And, Drew, you shared with us BP's view on this issue. But the question lingers: is it possible that workers who are trying to clean up all of this oil could right now be in the process of being poisoned by this oil?
GRIFFIN: The big question in this piece is what we did not learn from Exxon Valdez. Is there some kind of levels underneath OSHA standards that over time would infect the person or would raise the toxicity level in a person?
HARRIS: Sure.
GRIFFIN: They don't know. BP and the federal government say right now the air is being monitored. Everything is safe. But Congress is now intrigued by this, Tony, and a congressional oversight committee is asking Exxon to come forward with those 21-year-old medical records that you're trying to keep hidden, bring it to us so we can learn from the past to make sure there's going to be no follow- up of this.
HARRIS: It seems hard to believe. Is it actually true that there was no testing done back in 1989? GRIFFIN: I'm telling you, I couldn't believe it myself, but hardly any testing at the time, hardly any monitoring at the time and certainly no follow-up.
I brought this, Tony, because this is what Exxon Mobil just told us. And they said that the lack of studies is due largely to the fact that the clean-up workers back in 1989 tended to be transient, temporary workers making any medical follow-up incredibly difficult.
HARRIS: Oh, boy.
GRIFFIN: That sounds very similar to what's going on down in the Gulf. And that is why Congress, I think, wants to maybe find out what they could do better.
HARRIS: Yes. Let's ask some question, let's get the files, let's get some answers.
GRIFFIN: Yes.
HARRIS: Drew, appreciate it. Good stuff. Thank you.
Your iPhone is busted. OK. So who you going to call? The iPhone fixer, right? And we've got his number.
(COMMERCIAL BREAK)
HARRIS: CNN is your home for financial news. Want to get you to cnnmoney.com. The top story here, "why the gold rush may not be over." The precious medal may be down 5 percent from its June 18th record high. What was it? What did it top out at in June? I can't remember. But analysts think prices are poised to resume their climb. And other great stories at cnnmoney.com.
We are better than three hours into the trading day, 12:34 Eastern Time, and we are off of session highs. We had a nice pop at the beginning of the trading day. We stabilized in this area here, plus 38 points. The NASDAQ is up, where is it, well let's call it flat, up two.
You know, there is at least one doctor left in New York City who still makes house calls and he has got plenty of patients, people suffering from serious iPhone withdrawal. I haven't said this name in a while -- Poppy Harlow joining us from New York.
And, Poppy, first of all, it's great to see you.
POPPY HARLOW, CNNMONEY.COM: It's good to see you too.
HARRIS: And I understand if you've got a problem with your device, the doctor is in the house.
HARLOW: The doctor is in. We are all obsessed with our gadgets, our iPhones, our iPads, our Blackberries, you name it. But, come on, we have all dropped them. We've crushed them. We've been devastated. So we went looking for a fix. And we found it in a so-called doctor in a tiny New York City apartment. Take a look.
(BEGIN VIDEOTAPE)
BRENDAN MCELROY, IPHONE FIXER: We do everything from, you know, from iPhones, iPads, the iTouch.
HARLOW (voice-over): He's known around town as Dr. Brendan. And if your iPhone looks like this or this, he can bring it back to life.
MCELROY: Aside from like liquid damage, there's not, you know, generally not an iPhone I can't fix.
HARLOW: If it's crushed, busted, broken, 28-year-old Brendan McElroy knows how to fix it. And he says he'll do it for less than half what Apple charges.
HARLOW (on camera): Would you consider yourself a tech geek?
MCELROY: I am a bit of a tech geek. I'm not a full-on tech geek.
HARLOW (voice-over): After dropping his own iPhone while bartending last year, he surfed the web and taught himself how to fix it.
MCELROY: I'll be honest with you, I kind of -- I butchered it a bit.
HARLOW: He's not a real doctor, but a self-proclaimed tinker. He zips from customer to customer on his motorcycle.
MCELROY: So this is my fourth house call of the day.
HARLOW: This emergency call is at the hospital.
DR. SEETAL MEYWAR, CUSTOMER: There's this problem with the LCD screen, there there's this stripe in the middle.
HARLOW: Ten minutes, $75, and it's done. But there's one catch -- having your iPhone fixed outside of Apple could void your warranty.
HARLOW (on camera): Why Dr. Brendan?
MEYWAR: Apple is a total hassle to me. I mean you have to - they're - I just -- the one time I went in there, you have to schedule the appointments, you wait, they tell you they can't fix it.
HARLOW (voice-over): Next stop, back home to more customers.
MCELROY: So what's up with your phone?
UNIDENTIFIED FEMALE: I dropped it.
MCELROY: Oh, no.
HARLOW: It's a story he hears over and over again.
MCELROY: Were you very upset?
UNIDENTIFIED FEMALE: No.
MCELROY: No, you weren't? Some people break down and cry.
HARLOW: The fix just takes a tiny screwdriver, a razor blade and, of course, the screen.
MCELROY: Courtesy of China. And that is a new iPhone screen there.
HARLOW (on camera): And how did you find all the right components?
MCELROY: I found something - some posts from some distributor that claimed to sell these parts. So I emailed them and I was very nervous because it was just like, oh, send this cash to China, you know, and -
HARLOW: But it worked out?
MCELROY: It worked out.
HARLOW (voice-over): It's 5:00 p.m. He's already fixed seven iPhones and more customers are on their way. In fact, business is so good, Dr. Brendan quit his bartending gig and is opening his own store this fall.
HARLOW (on camera): What's the oddest story you've heard about how someone broke their phone?
MCELROY: There's been a lot of stories about, you know, my girlfriend saw my text messages and threw it at me. There was another one that someone's son actually bit the phone.
HARLOW: Oh, did you fix it?
MCELROY: Yes, I fixed it. Yes.
(END VIDEOTAPE)
HARLOW: Oh, of course he fixed it, he's the iPhone doctor. You know, Tony, he said the worst ones are those that fall in the toilet.
HARRIS: Yes.
HARLOW: He said he keeps some rubber gloves around to fix those. And, amazingly, you know, it's all word of mouth. He hasn't spent a single dollar on advertising and he now has people mailing him their iPhones all the way from Greece. Can you believe it?
HARRIS: Yes, I love it. How - wow. How big, how good is business for him right now?
HARLOW: Look, it's good. He's going to open a store in New York City. That's not cheap to do. He's going to open that in the fall. He's hiring people. He wouldn't tell us how many iPhones he fixes in a day because, you know, $70 a pop, do the math, he's making a lot of money. So he wouldn't tell us that.
There's steep competition. But, listen, business is really, really quite good for him. You compare his fix, about $70, $75. It -- Apple charges $199 to fix your broken screen. So we'll see what this means. Some competition on the way for Apple, I think, Tony.
HARRIS: Reinvent yourself. That is - that is the other take-away from that piece.
HARLOW: Indeed.
HARRIS: Good to see you, Poppy. Thank you.
HARLOW: You too.
HARRIS: We will update you on that beached whale on the Washington coast just ahead. You're in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: OK. A CNN oil alert on day 80 of the disaster in the Gulf. Coast Guard Admiral Thad Allen issues a new directive to BP. He wants a detailed time table on when it will complete current fixes and cleanup and what the company intends to do if current plans fail.
Other top stories for you right now.
Some 400,000 troops are being asked to take an online survey about repealing the military's "don't ask, don't tell" policy. The questionnaire focuses on the impact of the ban. Now a legal group representing gay and lesbian troops is telling them not to take the survey.
And we have been keeping an eye on this beached whale in Everett, Washington.
Chad, look, we can see and make out here -- the information we're getting - and we can sort of figure this out because there's someone there -- a couple of people there trying to keep the whale --
MYERS: Yes, about 200 people too few, but, yes, trying to splash some water. It's a big gray whale.
HARRIS: Yes. We understand NOAA is telling us that the tide is coming -
MYERS: Oh, good.
HARRIS: And that perhaps the tide will carry the whale back out to sea. And usually we see the story of whales beaching themselves when they're, what, injured, sick (INAUDIBLE)?
MYERS: Typically when they know things aren't going well in their body, you know. HARRIS: Right.
MYERS: And so all the effort that's usually put into trying to rescue or to, you know, un-strand the whale will go for naught because the whale is there on purpose.
Now, there are other times when whales accidentally beach themselves, no question about there. There were pods (ph) literally who beached themselves by accident. But when it's one like this, typically that means that he was or she was sick.
HARRIS: Yes. OK. We'll keep an eye on this for you. You're in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: We don't talk about this much. It is the issue of punishing employers who hire illegal immigrants. Well, that issue will go before the U.S. Supreme Court this fall. It is another immigration case coming out of Arizona. Now last hour I talked with two people with opposing views on the Arizona law. I asked whether some employers actually want wiggle room when it comes to hiring undocumented workers.
(BEGIN VIDEO CLIP)
GLENN HAMER, PRES., ARIZONA CHAMBER OF COMMERCE: Employers want a bulletproof, 100 percent functional federal system to determine the legality of their employees. Now, employers also want a system where they can legally bring in workers of all skill levels. We want to have the ability to bring in high skilled workers. We want to have the ability to bring in workers in certain industries, like agriculture, where you simply cannot get domestic workers to fill the needs.
Even in this tough economy, we haven't seen people flood out of Phoenix and move to Yuma to work -- to work in the fields. So, you know, we -- there are a number of aspects to this problem, but we absolutely support a workable, even a mandatory verification regime. But it shouldn't just be Arizona companies, it should be every company in the United States participating in it.
HARRIS: Andrew - OK. Well, then why did you write the law? Why did you write and push for the sanctions against employers? Do employers have a vested interest in not pushing for stronger enforcement in this area because they want the wiggle room to hire undocumented workers?
ANDREW THOMAS, FORMER MARICOPA COUNTY ATTORNEY: Well, I think there certainly are some employers that fall into that category. And they may not be the ones Glenn represents, but there are certainly some shady companies out there. And I know, because as county attorney, we busted a number of them and we suspended or revoked their business license if a few cases and we had raids on businesses and found a lot of illegal immigrants employed there. And it was clearly concerted -- a concerted effort. So we do have employers and managers involved in -- in illegal hiring. And again, the reason Arizona has had to do this is because the federal government has refused to. They have not taken care of the problem. And any time they're willing to step up and take care of the problem for us, I'm sure we can find something else to spend our time and money on. But they -- we've been waiting for decades. They've refused to do it. And we now have a crisis situation in Arizona and this law deals with that.
HARRIS: Yes. And, Glenn, one last question. Why is it more - it doesn't feel to me that enough of the fire is being trained at Congress for not taking up this issue.
HAMER: Look, I'll tell you right now, the business community in Arizona is aiming its fire at Washington. Andy Thomas is fundamentally correct that this is - this all stems from the federal government's inability and unwillingness to secure our border. And it also stems from the federal government's unwillingness to compensate Arizona for the costs of -- of this problem.
And when Janet Napolitano was our governor, she sent - she held a press conference in D.C., demanding hundreds and millions of dollars from the federal government, from the Bush administration, to pay for the costs of illegal aliens. Well, those bills are still in her desk now. And I would encourage her to rifle through her desk and for the federal government to step up and help out the state of Arizona.
HARRIS: Yes, well let's -- let's aim the fire where --
HAMER: That would be a disruptive action in our view. And that would help -
HARRIS: I kind of (INAUDIBLE).
HAMER: That would help dampen a lot of the enthusiasm in the state of Arizona to pass these types of laws.
HARRIS: Andrew, Glenn.
(END VIDEO CLIP)
HARRIS: All right. He sure knows how to sell a top brand. We will find out tonight which team gets NBA money machine, that man, Lebron James.
(COMMERCIAL BREAK)
HARRIS: D-day for Lebron James and he is trending just everywhere you turn on the Internet. "Cleveland Plain Dealer" sports reporter Branson Wright live in Cleveland.
Branson, good to see you.
Let us work through this, shall we, young man. OK. Give me the benefit of the best intel you have available. Where is Lebron James going to play his basketball next season. BRANSON WRIGHT, "CLEVELAND PLAIN DEALER": Well, everybody's reporting right now that it's Miami, so he could join Dwyane Wade and Chris Bosh. On paper that looks like the best team as far as him winning championships.
But the way this thing has been going with other people tweeting and with other experts in other areas, it could be anybody. It could still be New York.
HARRIS: Oh, oh, Branson, you know it can't be anybody.
WRIGHT: Oh, well -
HARRIS: It could never - it could never be the Clippers. I mean, come on.
WRIGHT: No. Well, you're right about that. Well, I should say - I should say the big three, if you will, the New York, Chicago, and Miami. I would say the favorite is Miami right now. But the way Lebron has been doing this thing, he may have a big surprise for us tonight.
HARRIS: OK. What would that mean for the city of Cleveland. Look, I love that city. I worked there for nine years. It essentially launched my crazy little career, such that it is. But what would it mean if Lebron left that city?
WRIGHT: OK. You like Cleveland, so you know about Art Modell, right?
HARRIS: I - well, yes, and I worked in Baltimore and I know what happened there when the Browns made -- yes, I know.
WRIGHT: Well, I think with Lebron and Art Modell who will be one and 1-a, because this is such a football town, people will be upset. But because it's such a football town, that's why Art Modell wears that crown as most hated.
HARRIS: Yes.
WRIGHT: But there will be a lot of disappointed people here in Cleveland if Lebron indeed leaves.
HARRIS: OK. But beyond that, the disappointed fans, what - I keep telling folks that this guy - and you know it better than I do because you've been living there, reporting from there, is a real economic engine for that city. I mean talk about what he means in terms of dollars and cents for that town?
WRIGHT: Oh, oh, he means plenty. You know, before Lebron, before the sold-out crowds, before the 50-plus wins, nobody went down town. Nobody went to the arena. But with Lebron and the winning, you had a lot of restaurants started to open up near the arena. Downtown became vibrant or it has become vibrant, I could say. But when basketball season comes around this fall, if there's no Lebron James, that same excitement that fans were used to won't be there. So if the fans aren't excited, they're not going to spend money before and after the games.
HARRIS: I remember the -- the Cleveland mausoleum out there in Richfield, Ohio. You're to young to -
WRIGHT: Oh, you're going there, huh? You're going there.
HARRIS: Yes. Yes, I kind of went there, didn't I?
So what do you think here of how he has handled it? First of all, is it too much hype around this one guy?
WRIGHT: Well, there isn't - well, let me put it this way, this guy has been hyped since he was on the cover of "Sports Illustrated" when he was in high school. So he's had the hype. And I would say, as far as on the court, he's lived up to it. Two MVP awards. You know, no championships, but he's at least got two MVP awards. So I think, as we were saying before about his impact on leaving this area, it will be a huge impact as far as Lebron James.
HARRIS: Yes. Boy. And you talked about what a reading of the tea leaves indicates to you. But what do you think, Branson? What's going do happen here?
WRIGHT: What's going to happen? Well, I think he's leaving. I -- with all what I'm hearing, what I'm reading and then some of the inside people that I know, it looks like Lebron James is going to wave bye-bye tonight.
HARRIS: Ooh, that's going to be tough. That's going to be tough for one of my favorite cities, Cleveland, Ohio. Yes, as sad as it is, it's - man.
All right, Branson, good to see you.
WRIGHT: Well, you could still come visit even if Lebron's here or not, right?
HARRIS: Yes, yes, yes. We'll hang out in the flats. How's that?
WRIGHT: Oh, that will be good.
HARRIS: Yes, that's always good. All right, Branson, appreciate it. Thank you.
WRIGHT: All right. Thanks a lot.
HARRIS: Still to come in the NEWSROOM, an alleged al Qaeda terror plot uncovered. Don Lemon on that story in the next hour of CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: It is go time. CNN NEWSROOM continues right now with Don Lemon, in for Ali Velshi.
