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Flag Day Story of Stars, Stripes and Standing; Countdown to Handover in Iraq; Economic Recovery?

Aired June 14, 2004 - 15:00   ET

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

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


BETTY NGUYEN, CNN ANCHOR: Welcome back to LIVE FROM. I'm Betty Nguyen.
MILES O'BRIEN, CNN ANCHOR: And I'm Miles O'Brien. Here's what's happening at this hour.

NGUYEN: Afghan President Hamid Karzai is visiting the halls of America's military might today. He's meeting with Defense Secretary Donald Rumsfeld at the Pentagon. Later, Mr. Karzai is scheduled to speak on his country's relationship with the U.S. and outline his expectations for Afghanistan's upcoming parliamentary elections. Tomorrow, he's scheduled to sit down with President Bush and congressional leaders.

Justice Department officials announced the indictment of a Somali man on charges of supporting terrorism. Nuradin Abdi is accused of plotting with an al Qaeda operative to blow up a shopping mall in Columbus, Ohio. Abdi is already in U.S. custody for alleged immigration violations. He's also accused of visiting a terrorist training camp in Ethiopia.

An Article 32 hearing is scheduled for June 22 for Private First Class Lynndie England. England is one of the female soldiers accused in the Abu Ghraib prisoner abuse scandal. In two of the more infamous photographs, England is seen holding a leash tied to an Iraqi prisoner.

O'BRIEN: Up first this day, a Flag Day story of stars, stripes and standing. Fifty years to the day after Congress added the words "under god" to the Pledge of Allegiance, the Supreme Court of the United States says they can still be constitutionally recited, but not necessarily because they're constitutional. The court finds the alleged harm done to a California child by hearing the pledge every morning at school is, legally speaking, none of her father's business. And that brings us to CNN legal analyst Kendall Coffey, joining us from Miami.

Kendall, good to have you with us.

KENDALL COFFEY, CNN LEGAL ANALYST: Hey. Good afternoon, Miles.

O'BRIEN: Did the Supreme Court have a bit of an artful dodge here? Is that what happened?

COFFEY: Well, I think that's what some are going to suggest. Certainly three justices, justices Rehnquist, Thomas and O'Connor, all felt that there was standing, at least sufficiently for purposes of hearing what is a very controversial case. On the other hand, the Supreme Court may have legitimately taken the position that if these issues are so important, we need the right kind of plaintiff, the right kind of injured party in front of the court, not a father who looks disappointed about the way the child custody rulings have gone in the family courts of California.

O'BRIEN: Well, now -- and I asked this question earlier. I'm just curious what you think. Shouldn't his standing have been settled more clearly prior to actually walking up the steps of the Supreme Court of the United States?

COFFEY: Well, that seems to be one of the big questions, if, in fact, the injury that he as a father professed. Because remember, whatever injury the daughter may have had was basically eliminated from the case. In fact, the mother, who has primary custodial decisions on educational matters, and the daughter, herself, are apparently Christians who had no objection to the pledge. But to the extent that the father's so-called injury was an issue, one would have thought it would have been resolved by now. That's what three of the justices of the Supreme Court maintained in the opinions they wrote today.

O'BRIEN: All right. Well, Michael Newdow is nothing, if not possessed with a healthy ego. He says, "I may be the best father in the world." I might quibble with him, you might quibble with him on that point. But the point is, is this, in effect, something that will set precedent for family court law? Those are state courts.

COFFEY: Well, I don't think it's going to set a precedent for family law. If anything, it's just a reminder that the federal courts, especially on constitutional questions, don't want to have to get involved with the intricacies of what goes on in custodial matters in the family courts.

But I think what is wide open now is this question. And will Michael Newdow himself go back to some kind of custody issues, try to get broader custody, so that he can claim he does, in fact, have standing? In other words, we've rolled this entire issue back to where it was before the first decision was made years ago that exploded in so much controversy. But will this issue come up again, perhaps with Michael Newdow as a plaintiff at some future point?

O'BRIEN: So it is possible he could clarify his standing in some way, shape or form, and then appeal to the court again? Would he actually have to argue once again, or would his argument already stand?

COFFEY: It would start from scratch, because the effectiveness is someone has pressed a delete button on the original decision by the Ninth Circuit Court of Appeals which struck down the Pledge of Allegiance for the words "under god." That decision basically never appeared. And so if Newdow or somebody else comes back, they'll be writing on a blank slate, at least as far as the original controversy- creating decision is concerned. O'BRIEN: All right. Let's leave with a final thought here. We have some poll numbers I want to share with you and our viewers. And I guess these numbers would not surprise you.

This is back in March, end of March, and this is a CNN-USA Today Gallup poll. Ninety-one percent of those polled think the pledge should remain as is. Eight percent say remove the words.

Let's ask the frank question. Does the court hear that one way or another either directly or indirectly? Are they responding to public opinion?

COFFEY: Well, courts pride themselves on rising above public opinion. But when the Ninth Circuit decided this very controversial case, both sides referred to what they called the uproar around the country over the Pledge of Allegiance. So it may not get talked about, but it certainly is there.

O'BRIEN: Kendall Coffey, who always pledges to give us good legal insight, thanks very much.

COFFEY: Thanks, Miles.

O'BRIEN: Betty?

NGUYEN: Seventeen car bombs in 14 days. Sixteen days before the formal transfer of sovereignty in Iraq, 13 people dead after yet another suicide attack in the capital. And once again, Iraq's battered and broken power grid is a casualty of war. CNN's Guy Raz checks in from Baghdad.

(BEGIN VIDEOTAPE)

GUY RAZ, CNN CORRESPONDENT (voice-over): Baghdad's landscape now characterized by chaos. A morning rush hour car bomb this time, the 17th car bomb in Iraq this month.

Westerners were targeted, Iraqis part of a terrorist's collateral damage. Charred bodies were pulled from the rubble of this three- story building, burning vehicles smoldered in the middle of the road. Condemnations from all corners. Still, those behind the attacks seem more determined than ever.

UNIDENTIFIED MALE: We deplore this terrorist act and vow to get the criminals to justice.

RAZ: An angry crowd gathered around the bomb site. "America is the enemy of god," they chanted. Confused Iraqis passing along conspiracy theories blaming America and Jews. Less than one month before administrative authority is handed over to an Iraqi government, officials warn of more attacks to come. Most of them silently concede they'll be difficult to stop.

Guy Raz, CNN, Baghdad.

(END VIDEOTAPE) O'BRIEN: On America's economic front, retail sales are said to be going strong. But the recovery hasn't helped everyone. And some consumers remain nervous about the future. CNN's Kathleen Hays with that.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: I feel a little bit of uneasiness.

UNIDENTIFIED MALE: With the economy the way it is now, I find myself shopping a little less, trying to hold on to my pennies.

UNIDENTIFIED MALE: It's at a steady pace. It's flat. I don't see it going up or down.

KATHLEEN HAYS, CNN FINANCIAL CORRESPONDENT (voice-over): Blame this insecurity on gas prices that have risen too quickly and paychecks that haven't risen quickly enough.

JARED BERNSTEIN, ECONOMIC POLICY INSTITUTE: There is a disconnect between some of the economic cheerleading that's going on and the way many working families are experiencing the recovery. We see the latter in some of the consumer confidence reports which have been quite negative lately.

HAYS: The Consumer Comfort Index has fallen for the last three weeks and is nearing the lows of the year. And in May, when nearly a quarter of a million new jobs were created, more than 30 percent of those surveyed by the Conference Board said jobs were still hard to get. But this may not be as bad as it looks. After all, consumers are still shopping.

JAY BRYSON, WACHOVIA SECURITIES: What's really more important is not what consumers say. It's what they do. And if you look at, you know, weekly chain store sales, look at overall retail spending, you look at car sales, things of that nature, that all remains very, very solid right now.

HAYS (on camera): Economists saw this same disconnect coming out of the recession of the early 1990s. Job growth was accelerating by 1993, but confidence didn't really pick up until well into 1994.

UNIDENTIFIED MALE: I'm encouraged. I think things are improving. The stock value is going up and my investments are gaining value.

HAYS (voice-over): But many lower-income families, whose budgets are hit hardest by rising gas prices may continue to swim against the tide for awhile.

BERNSTEIN: I think it could take as much as another few quarters of solid job growth before a real sense of confidence in the economy returns.

HAYS: Kathleen Hays, CNN Financial News, New York.

(END VIDEOTAPE)

NGUYEN: He was the man at a grieving widow's side throughout the week of mourning for former President Reagan. Coming up, Commander Galen Jackman shares some of his experiences being Nancy Reagan's shoulder to lean on.

And these two had each other to lean on throughout their careers, but now the Olsen sisters, not twins, are taking on new roles. We'll explain. That's ahead on LIVE FROM.

(COMMERCIAL BREAK)

NGUYEN: Hundreds of visitors from across the nation have come to Ronald Reagan's presidential library, where the former president was laid to rest over the weekend. CNN's Thelma Gutierrez is live from Simi Valley, California, with the details.

And Thelma, are the lines as long now as they were last week?

THELMA GUTIERREZ, CNN CORRESPONDENT: No, Betty. I can say that actually the lines are moving rather quickly, and so people are not having to wait as long -- anywhere near as long as they had to last week.

Now, normally, the organizers up here have about 400 visitors who come to visit the library on an average day. Today, they are expecting about five times that number. If you take a look right behind me, you can see that several hundred people have gathered here at the library, shuttles are running. And most of the people here say that they want to be among the first visit the president's gravesite.

Now, the visitors here are from all over the country. They've come from as far away as Colorado and Iowa. One from even is all the way from the Philippines. And they said that in many ways this is closure after following all of last week's events.

Now, the president's gravesite at that place, some people have taken pictures, others have paused to reflect, and a few even kneeled down in prayer. Now, Landis Macintosh was one of the people to go through that line. '

And you told us that you actually found this experience very moving.

LANDIS MACINTOSH, LIBRARY VISITOR: Yes, I did. I found the whole week particularly moving, and a lot of tear filled eyes I think for the whole week. And I think what you just said does hopefully bring some closure to the events of the week.

GUTIERREZ: One of the veterans that we talked to earlier today said that he didn't expect to be as moved personally as he actually stood in front of the gravesite. Did you find the same thing?

MACINTOSH: I did find the same thing. I will say, two weeks ago we had a Marine Corps officers class reunion in Washington, and we got emotional there also, which we were surprised at. But I had a lot of the same feelings again today.

GUTIERREZ: What do you think of the setting up here?

MACINTOSH: I think this is absolutely marvelous. It -- showed it on TV. It was beautiful, and I think it's just as pretty as now it was on TV. It's very -- very appropriate for the president.

GUTIERREZ: All right. Landis Macintosh, thank you very much.

MACINTOSH: You're quite welcome.

GUTIERREZ: And for the next 30 days, during the official period of mourning, the hours up here at the library will be extended. And then on July 4, there will be a new exhibit that will open. It's called "A Day of Mourning," which will also contain memorabilia of the past week -- Betty.

NGUYEN: Thelma Gutierrez, in Simi Valley, California. Thank you.

Miles?

O'BRIEN: Well, throughout a very sad week, Nancy Reagan had a very special shoulder to lean on. Major General Galen Jackman served as her military escort for Friday's state funeral and many of the other events. This morning, he talked about his experiences with CNN's Bill Hemmer.

(BEGIN VIDEOTAPE)

BILL HEMMER, CNN ANCHOR: As you look at the past week, is there one moment that stands out in your mind as indelible that you experienced?

MAJ. GEN. GALEN JACKMAN, COMMANDER, MILITARY DISTRICT OF WASHINGTON: Well, you know, there were a lot of great moments, but I would have to tell you that the motorcade trip that we took from Point Mugu up to the library in Simi Valley, going through the cordons of American people on that road was just astonishing to me. There were literally hundreds of thousands of people waving flags, signs, hands over hearts, and that was very impressionable for me.

HEMMER: And that was on Friday evening when we all watched that sunset, and what an emotional moment that was. This is Wednesday afternoon, late afternoon in Washington when one of the people in the crowd there yelled out "God bless you, Nancy." I don't know if you heard that gentleman, but that's been played over repeatedly. If you did, what do you remember from that moment?

JACKMAN: Well, I think that this was really the first time that Mrs. Reagan stepped out of the limousine in the midst of all of the people directly in the center of Washington, D.C. And I think that it was a great homecoming. And she remarked throughout the week how much she was taken by the outpouring of support from this nation for her husband and for herself. HEMMER: At the age of 82, I know the personal stories and conversations we are not going to get into during this interview to respect your wishes granting us this interview. How do you think she did it last week at the age of 82 and holding up?

JACKMAN: Well, you know, I think she was very strong and determined. She was gracious. She had the poise of a first lady. And, as I mentioned, she was very, very grateful in appreciation of the outpouring of support from the American people.

HEMMER: It had to be such a surprise. Around every corner that she turned, there were more and more people waiting there on the side of the road in southern California and the side of the road in our nation's capital. Major General Jackman, thank you for time. Job well done to you.

JACKMAN: Thank you very much, Bill.

HEMMER: All right.

(END VIDEOTAPE)

O'BRIEN: As commander of the military district of Washington, Jackman oversees official ceremonies in and around the capital.

When it comes to doing business online, whom do you trust?

NGUYEN: We'll count down the most trusted companies just ahead.

O'BRIEN: And do you trust Mary-Kate and Ashley? Their birthday put them at the helm of a billion-dollar business. I trust you girls. I promise. Will it be double trouble, though?

(COMMERCIAL BREAK)

NGUYEN: Checking the all-important entertainment headlines this June 14, heiress and reality show star Paris Hilton will sit down and share her "Simple Life" with David Letterman tonight. Hilton skipped a scheduled appearance on "The Late Show" last year just about the time an X-rated home video of her and ex-boyfriend hit the Internet.

There's a new little friend at Courtney Cox's home. People Magazine's Web site says the sitcom star gave birth to a girl yesterday morning. She and husband David Arquette are naming their daughto -- daughter, that is, of all things, Coco.

Well, we might found out if faded funk star Rick James knows how to take a joke. James, best known for his several arrests and his hit song "Super Freak" is working on his memoirs. We'll all want a copy of that. And "Comedy Central" star Dave Chapell may star in a film version. Chapell has put on the dreadlocks to play James on his show several times.

O'BRIEN: Mary-Kate and Ashley Olsen, TV and movie stars since they were toddlers, turned 18 over the weekend. NGUYEN: Even though business for their recent movie was a little slow, the pair has each earned millions of dollars during their careers.

O'BRIEN: J.J. Ramberg looks at the business plans of the twin titans.

(BEGIN VIDEOTAPE)

J.J. RAMBERG, CNNFN CORRESPONDENT (voice-over): Their appeal may be best understood by teenage girls. But one thing is clear to all, the Olsen sisters are an industry. Their company, Dualstar Entertainment, generated an estimated $1 billion in revenue last year.

ROBERT THORNE, CEO, DUALSTAR ENTERTAINMENT: We just were fortunate. We made the right decisions, we made right products, the right media projects. And it was up to the fans, and they said yes for many years.

RAMBERG: The twins arrived on the small screen in 1987, sharing the role of Michelle Tanner on the hit sitcom "Full House." They captured the hearts of their fans and leveraged that appeal into a series of straight-to-video movies, clothing, accessories, books, CDs, action figures, even toothpaste.

MARK DAGOSTINO, PEOPLE MAGAZINE: They started marketing to this sort of young adult tween market that no one else was marketing to in the early '90s. Of course now everyone markets to them. But they started really early. And so they build a -- they built a loyalty and a fan base that have grown up with them.

RAMBERG: When the twins turned 18, they not only became legal adults, they became co-presidents of their company. And in a financial windfall, gained access to millions they've earned from their work over the years. But some Olsen watchers wonder if they can continue their success as adults. Their latest movie, "New York Minute," was a critical and financial flop at the box office, prompting the question, will the sweet-faced girls America fell in love with on TV outgrow the very image that made them so rich?

J.J. Ramberg, CNN Financial News, New York.

(END VIDEOTAPE)

O'BRIEN: Toothpaste, Olsen, not twins, toothpaste.

NGUYEN: Who buys Olsen toothpaste?

O'BRIEN: I have a little girl in my house who is aching for just such things soon enough.

NGUYEN: Toothpaste, huh?

O'BRIEN: Soon enough, yes. All right.

As the threat of identity theft grows, it's more important to protect your personal information. Which companies do you trust?

NGUYEN: Our Rhonda Schaffler has earned our trust, and she joins us live from the New York Stock Exchange with a list of the most trusted companies.

What are they, Rhonda?

(STOCK MARKET REPORT)

O'BRIEN: Thank you, Rhonda. See you tomorrow.

That wraps up the Monday edition of LIVE FROM.

NGUYEN: And now to take us through the next hour of political headlines is "JUDY WOODRUFF'S INSIDE POLITICS."

Hello, Judy.

JUDY WOODRUFF, HOST, "INSIDE POLITICS": Hi there, Betty. Thank you both, to you and Miles.

Well, the Bush and Kerry campaigns swinging back into high gear this Monday. I'll take a look at the state of the race with the national party chairmen, Ed Gillespie and Terry McAuliffe.

Plus, presidential portraits past and present, as the White House unveils the new paintings of President and Senator Clinton. Our Bruce Morton takes a look back at this time honored tradition.

"INSIDE POLITICS" starts in just a minute.

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Aired June 14, 2004 - 15:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: Welcome back to LIVE FROM. I'm Betty Nguyen.
MILES O'BRIEN, CNN ANCHOR: And I'm Miles O'Brien. Here's what's happening at this hour.

NGUYEN: Afghan President Hamid Karzai is visiting the halls of America's military might today. He's meeting with Defense Secretary Donald Rumsfeld at the Pentagon. Later, Mr. Karzai is scheduled to speak on his country's relationship with the U.S. and outline his expectations for Afghanistan's upcoming parliamentary elections. Tomorrow, he's scheduled to sit down with President Bush and congressional leaders.

Justice Department officials announced the indictment of a Somali man on charges of supporting terrorism. Nuradin Abdi is accused of plotting with an al Qaeda operative to blow up a shopping mall in Columbus, Ohio. Abdi is already in U.S. custody for alleged immigration violations. He's also accused of visiting a terrorist training camp in Ethiopia.

An Article 32 hearing is scheduled for June 22 for Private First Class Lynndie England. England is one of the female soldiers accused in the Abu Ghraib prisoner abuse scandal. In two of the more infamous photographs, England is seen holding a leash tied to an Iraqi prisoner.

O'BRIEN: Up first this day, a Flag Day story of stars, stripes and standing. Fifty years to the day after Congress added the words "under god" to the Pledge of Allegiance, the Supreme Court of the United States says they can still be constitutionally recited, but not necessarily because they're constitutional. The court finds the alleged harm done to a California child by hearing the pledge every morning at school is, legally speaking, none of her father's business. And that brings us to CNN legal analyst Kendall Coffey, joining us from Miami.

Kendall, good to have you with us.

KENDALL COFFEY, CNN LEGAL ANALYST: Hey. Good afternoon, Miles.

O'BRIEN: Did the Supreme Court have a bit of an artful dodge here? Is that what happened?

COFFEY: Well, I think that's what some are going to suggest. Certainly three justices, justices Rehnquist, Thomas and O'Connor, all felt that there was standing, at least sufficiently for purposes of hearing what is a very controversial case. On the other hand, the Supreme Court may have legitimately taken the position that if these issues are so important, we need the right kind of plaintiff, the right kind of injured party in front of the court, not a father who looks disappointed about the way the child custody rulings have gone in the family courts of California.

O'BRIEN: Well, now -- and I asked this question earlier. I'm just curious what you think. Shouldn't his standing have been settled more clearly prior to actually walking up the steps of the Supreme Court of the United States?

COFFEY: Well, that seems to be one of the big questions, if, in fact, the injury that he as a father professed. Because remember, whatever injury the daughter may have had was basically eliminated from the case. In fact, the mother, who has primary custodial decisions on educational matters, and the daughter, herself, are apparently Christians who had no objection to the pledge. But to the extent that the father's so-called injury was an issue, one would have thought it would have been resolved by now. That's what three of the justices of the Supreme Court maintained in the opinions they wrote today.

O'BRIEN: All right. Well, Michael Newdow is nothing, if not possessed with a healthy ego. He says, "I may be the best father in the world." I might quibble with him, you might quibble with him on that point. But the point is, is this, in effect, something that will set precedent for family court law? Those are state courts.

COFFEY: Well, I don't think it's going to set a precedent for family law. If anything, it's just a reminder that the federal courts, especially on constitutional questions, don't want to have to get involved with the intricacies of what goes on in custodial matters in the family courts.

But I think what is wide open now is this question. And will Michael Newdow himself go back to some kind of custody issues, try to get broader custody, so that he can claim he does, in fact, have standing? In other words, we've rolled this entire issue back to where it was before the first decision was made years ago that exploded in so much controversy. But will this issue come up again, perhaps with Michael Newdow as a plaintiff at some future point?

O'BRIEN: So it is possible he could clarify his standing in some way, shape or form, and then appeal to the court again? Would he actually have to argue once again, or would his argument already stand?

COFFEY: It would start from scratch, because the effectiveness is someone has pressed a delete button on the original decision by the Ninth Circuit Court of Appeals which struck down the Pledge of Allegiance for the words "under god." That decision basically never appeared. And so if Newdow or somebody else comes back, they'll be writing on a blank slate, at least as far as the original controversy- creating decision is concerned. O'BRIEN: All right. Let's leave with a final thought here. We have some poll numbers I want to share with you and our viewers. And I guess these numbers would not surprise you.

This is back in March, end of March, and this is a CNN-USA Today Gallup poll. Ninety-one percent of those polled think the pledge should remain as is. Eight percent say remove the words.

Let's ask the frank question. Does the court hear that one way or another either directly or indirectly? Are they responding to public opinion?

COFFEY: Well, courts pride themselves on rising above public opinion. But when the Ninth Circuit decided this very controversial case, both sides referred to what they called the uproar around the country over the Pledge of Allegiance. So it may not get talked about, but it certainly is there.

O'BRIEN: Kendall Coffey, who always pledges to give us good legal insight, thanks very much.

COFFEY: Thanks, Miles.

O'BRIEN: Betty?

NGUYEN: Seventeen car bombs in 14 days. Sixteen days before the formal transfer of sovereignty in Iraq, 13 people dead after yet another suicide attack in the capital. And once again, Iraq's battered and broken power grid is a casualty of war. CNN's Guy Raz checks in from Baghdad.

(BEGIN VIDEOTAPE)

GUY RAZ, CNN CORRESPONDENT (voice-over): Baghdad's landscape now characterized by chaos. A morning rush hour car bomb this time, the 17th car bomb in Iraq this month.

Westerners were targeted, Iraqis part of a terrorist's collateral damage. Charred bodies were pulled from the rubble of this three- story building, burning vehicles smoldered in the middle of the road. Condemnations from all corners. Still, those behind the attacks seem more determined than ever.

UNIDENTIFIED MALE: We deplore this terrorist act and vow to get the criminals to justice.

RAZ: An angry crowd gathered around the bomb site. "America is the enemy of god," they chanted. Confused Iraqis passing along conspiracy theories blaming America and Jews. Less than one month before administrative authority is handed over to an Iraqi government, officials warn of more attacks to come. Most of them silently concede they'll be difficult to stop.

Guy Raz, CNN, Baghdad.

(END VIDEOTAPE) O'BRIEN: On America's economic front, retail sales are said to be going strong. But the recovery hasn't helped everyone. And some consumers remain nervous about the future. CNN's Kathleen Hays with that.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: I feel a little bit of uneasiness.

UNIDENTIFIED MALE: With the economy the way it is now, I find myself shopping a little less, trying to hold on to my pennies.

UNIDENTIFIED MALE: It's at a steady pace. It's flat. I don't see it going up or down.

KATHLEEN HAYS, CNN FINANCIAL CORRESPONDENT (voice-over): Blame this insecurity on gas prices that have risen too quickly and paychecks that haven't risen quickly enough.

JARED BERNSTEIN, ECONOMIC POLICY INSTITUTE: There is a disconnect between some of the economic cheerleading that's going on and the way many working families are experiencing the recovery. We see the latter in some of the consumer confidence reports which have been quite negative lately.

HAYS: The Consumer Comfort Index has fallen for the last three weeks and is nearing the lows of the year. And in May, when nearly a quarter of a million new jobs were created, more than 30 percent of those surveyed by the Conference Board said jobs were still hard to get. But this may not be as bad as it looks. After all, consumers are still shopping.

JAY BRYSON, WACHOVIA SECURITIES: What's really more important is not what consumers say. It's what they do. And if you look at, you know, weekly chain store sales, look at overall retail spending, you look at car sales, things of that nature, that all remains very, very solid right now.

HAYS (on camera): Economists saw this same disconnect coming out of the recession of the early 1990s. Job growth was accelerating by 1993, but confidence didn't really pick up until well into 1994.

UNIDENTIFIED MALE: I'm encouraged. I think things are improving. The stock value is going up and my investments are gaining value.

HAYS (voice-over): But many lower-income families, whose budgets are hit hardest by rising gas prices may continue to swim against the tide for awhile.

BERNSTEIN: I think it could take as much as another few quarters of solid job growth before a real sense of confidence in the economy returns.

HAYS: Kathleen Hays, CNN Financial News, New York.

(END VIDEOTAPE)

NGUYEN: He was the man at a grieving widow's side throughout the week of mourning for former President Reagan. Coming up, Commander Galen Jackman shares some of his experiences being Nancy Reagan's shoulder to lean on.

And these two had each other to lean on throughout their careers, but now the Olsen sisters, not twins, are taking on new roles. We'll explain. That's ahead on LIVE FROM.

(COMMERCIAL BREAK)

NGUYEN: Hundreds of visitors from across the nation have come to Ronald Reagan's presidential library, where the former president was laid to rest over the weekend. CNN's Thelma Gutierrez is live from Simi Valley, California, with the details.

And Thelma, are the lines as long now as they were last week?

THELMA GUTIERREZ, CNN CORRESPONDENT: No, Betty. I can say that actually the lines are moving rather quickly, and so people are not having to wait as long -- anywhere near as long as they had to last week.

Now, normally, the organizers up here have about 400 visitors who come to visit the library on an average day. Today, they are expecting about five times that number. If you take a look right behind me, you can see that several hundred people have gathered here at the library, shuttles are running. And most of the people here say that they want to be among the first visit the president's gravesite.

Now, the visitors here are from all over the country. They've come from as far away as Colorado and Iowa. One from even is all the way from the Philippines. And they said that in many ways this is closure after following all of last week's events.

Now, the president's gravesite at that place, some people have taken pictures, others have paused to reflect, and a few even kneeled down in prayer. Now, Landis Macintosh was one of the people to go through that line. '

And you told us that you actually found this experience very moving.

LANDIS MACINTOSH, LIBRARY VISITOR: Yes, I did. I found the whole week particularly moving, and a lot of tear filled eyes I think for the whole week. And I think what you just said does hopefully bring some closure to the events of the week.

GUTIERREZ: One of the veterans that we talked to earlier today said that he didn't expect to be as moved personally as he actually stood in front of the gravesite. Did you find the same thing?

MACINTOSH: I did find the same thing. I will say, two weeks ago we had a Marine Corps officers class reunion in Washington, and we got emotional there also, which we were surprised at. But I had a lot of the same feelings again today.

GUTIERREZ: What do you think of the setting up here?

MACINTOSH: I think this is absolutely marvelous. It -- showed it on TV. It was beautiful, and I think it's just as pretty as now it was on TV. It's very -- very appropriate for the president.

GUTIERREZ: All right. Landis Macintosh, thank you very much.

MACINTOSH: You're quite welcome.

GUTIERREZ: And for the next 30 days, during the official period of mourning, the hours up here at the library will be extended. And then on July 4, there will be a new exhibit that will open. It's called "A Day of Mourning," which will also contain memorabilia of the past week -- Betty.

NGUYEN: Thelma Gutierrez, in Simi Valley, California. Thank you.

Miles?

O'BRIEN: Well, throughout a very sad week, Nancy Reagan had a very special shoulder to lean on. Major General Galen Jackman served as her military escort for Friday's state funeral and many of the other events. This morning, he talked about his experiences with CNN's Bill Hemmer.

(BEGIN VIDEOTAPE)

BILL HEMMER, CNN ANCHOR: As you look at the past week, is there one moment that stands out in your mind as indelible that you experienced?

MAJ. GEN. GALEN JACKMAN, COMMANDER, MILITARY DISTRICT OF WASHINGTON: Well, you know, there were a lot of great moments, but I would have to tell you that the motorcade trip that we took from Point Mugu up to the library in Simi Valley, going through the cordons of American people on that road was just astonishing to me. There were literally hundreds of thousands of people waving flags, signs, hands over hearts, and that was very impressionable for me.

HEMMER: And that was on Friday evening when we all watched that sunset, and what an emotional moment that was. This is Wednesday afternoon, late afternoon in Washington when one of the people in the crowd there yelled out "God bless you, Nancy." I don't know if you heard that gentleman, but that's been played over repeatedly. If you did, what do you remember from that moment?

JACKMAN: Well, I think that this was really the first time that Mrs. Reagan stepped out of the limousine in the midst of all of the people directly in the center of Washington, D.C. And I think that it was a great homecoming. And she remarked throughout the week how much she was taken by the outpouring of support from this nation for her husband and for herself. HEMMER: At the age of 82, I know the personal stories and conversations we are not going to get into during this interview to respect your wishes granting us this interview. How do you think she did it last week at the age of 82 and holding up?

JACKMAN: Well, you know, I think she was very strong and determined. She was gracious. She had the poise of a first lady. And, as I mentioned, she was very, very grateful in appreciation of the outpouring of support from the American people.

HEMMER: It had to be such a surprise. Around every corner that she turned, there were more and more people waiting there on the side of the road in southern California and the side of the road in our nation's capital. Major General Jackman, thank you for time. Job well done to you.

JACKMAN: Thank you very much, Bill.

HEMMER: All right.

(END VIDEOTAPE)

O'BRIEN: As commander of the military district of Washington, Jackman oversees official ceremonies in and around the capital.

When it comes to doing business online, whom do you trust?

NGUYEN: We'll count down the most trusted companies just ahead.

O'BRIEN: And do you trust Mary-Kate and Ashley? Their birthday put them at the helm of a billion-dollar business. I trust you girls. I promise. Will it be double trouble, though?

(COMMERCIAL BREAK)

NGUYEN: Checking the all-important entertainment headlines this June 14, heiress and reality show star Paris Hilton will sit down and share her "Simple Life" with David Letterman tonight. Hilton skipped a scheduled appearance on "The Late Show" last year just about the time an X-rated home video of her and ex-boyfriend hit the Internet.

There's a new little friend at Courtney Cox's home. People Magazine's Web site says the sitcom star gave birth to a girl yesterday morning. She and husband David Arquette are naming their daughto -- daughter, that is, of all things, Coco.

Well, we might found out if faded funk star Rick James knows how to take a joke. James, best known for his several arrests and his hit song "Super Freak" is working on his memoirs. We'll all want a copy of that. And "Comedy Central" star Dave Chapell may star in a film version. Chapell has put on the dreadlocks to play James on his show several times.

O'BRIEN: Mary-Kate and Ashley Olsen, TV and movie stars since they were toddlers, turned 18 over the weekend. NGUYEN: Even though business for their recent movie was a little slow, the pair has each earned millions of dollars during their careers.

O'BRIEN: J.J. Ramberg looks at the business plans of the twin titans.

(BEGIN VIDEOTAPE)

J.J. RAMBERG, CNNFN CORRESPONDENT (voice-over): Their appeal may be best understood by teenage girls. But one thing is clear to all, the Olsen sisters are an industry. Their company, Dualstar Entertainment, generated an estimated $1 billion in revenue last year.

ROBERT THORNE, CEO, DUALSTAR ENTERTAINMENT: We just were fortunate. We made the right decisions, we made right products, the right media projects. And it was up to the fans, and they said yes for many years.

RAMBERG: The twins arrived on the small screen in 1987, sharing the role of Michelle Tanner on the hit sitcom "Full House." They captured the hearts of their fans and leveraged that appeal into a series of straight-to-video movies, clothing, accessories, books, CDs, action figures, even toothpaste.

MARK DAGOSTINO, PEOPLE MAGAZINE: They started marketing to this sort of young adult tween market that no one else was marketing to in the early '90s. Of course now everyone markets to them. But they started really early. And so they build a -- they built a loyalty and a fan base that have grown up with them.

RAMBERG: When the twins turned 18, they not only became legal adults, they became co-presidents of their company. And in a financial windfall, gained access to millions they've earned from their work over the years. But some Olsen watchers wonder if they can continue their success as adults. Their latest movie, "New York Minute," was a critical and financial flop at the box office, prompting the question, will the sweet-faced girls America fell in love with on TV outgrow the very image that made them so rich?

J.J. Ramberg, CNN Financial News, New York.

(END VIDEOTAPE)

O'BRIEN: Toothpaste, Olsen, not twins, toothpaste.

NGUYEN: Who buys Olsen toothpaste?

O'BRIEN: I have a little girl in my house who is aching for just such things soon enough.

NGUYEN: Toothpaste, huh?

O'BRIEN: Soon enough, yes. All right.

As the threat of identity theft grows, it's more important to protect your personal information. Which companies do you trust?

NGUYEN: Our Rhonda Schaffler has earned our trust, and she joins us live from the New York Stock Exchange with a list of the most trusted companies.

What are they, Rhonda?

(STOCK MARKET REPORT)

O'BRIEN: Thank you, Rhonda. See you tomorrow.

That wraps up the Monday edition of LIVE FROM.

NGUYEN: And now to take us through the next hour of political headlines is "JUDY WOODRUFF'S INSIDE POLITICS."

Hello, Judy.

JUDY WOODRUFF, HOST, "INSIDE POLITICS": Hi there, Betty. Thank you both, to you and Miles.

Well, the Bush and Kerry campaigns swinging back into high gear this Monday. I'll take a look at the state of the race with the national party chairmen, Ed Gillespie and Terry McAuliffe.

Plus, presidential portraits past and present, as the White House unveils the new paintings of President and Senator Clinton. Our Bruce Morton takes a look back at this time honored tradition.

"INSIDE POLITICS" starts in just a minute.

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