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August Jobs Report Misses Forecasts; Obama Makes His Case for Re-Election; Working Full Time and Homeless; August Jobs Data Disappoints; Teachers May Strike in Chicago Monday; Haqqani to be Listed as a Terror Group; NFL's Opening Weekend

Aired September 07, 2012 - 09:00   ET

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

CAROL COSTELLO, CNN ANCHOR: Jennifer Granholm fist-pumping. Is this her Howard Dean moment?

Breaking news overnight. Prince Harry arriving in Afghanistan. The new video straight ahead.

Plus this. Game, set, match. Djokovic in a breathtaking battle on the court. We're live court-side in flushing at the U.S. Open.

And weekend of the rookie five. Count them, five rookie quarterbacks, set to start Sunday. Colts, Skins, Brown, Dolphins, Seahawks, we're on the 50 yard line.

NEWSROOM begins right now.

Good morning. Happy Friday to you. I'm Carol Costello. Thank you so much for joining us. We begin with politics and your pocketbook. Just minutes ago, a dismal jobs report. Last month, employers created a lot fewer jobs than expected. Bad news for the economy and big news in a presidential race that's deadlocked and sprinting to the finish.

Here's the latest. According to the Feds, employers added just 96,000 jobs last month. That's a very weak number. It's far fewer than what the expert had predicted.

Alison Kosik is at the New York Stock Exchange.

So break these numbers down for us, Alison.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Okay. I just talked with one analyst, Carol, he said this is a shocker to him. It's a big miss and a big disappointment. As you said, only 96,000 jobs were added in August. That is way below what was expected. And when you think about it, what was expected was at least 120,000 would have been added. And that was even lower. So it really winds up being a bigger miss.

The unemployment rate, it fell to 8.1 percent. At the headline, when you see that, you think, wow, that's great. But then you look deeper into that number and you see why. It's because the labor force shrank. It's because more people dropped out looking for work. They got frustrated and just gave up altogether. That's really not what you want to see. That's not the way you want to see the unemployment rate go down.

More bad news, the June job additions and the July job additions, those numbers were both revised lower. A total of 41,000 fewer jobs it turns out were added over the summer than previously thought.

All right, so let's try to look at the glass half full here. Where are we adding jobs? We are adding jobs in the food services and drinking areas like at restaurants and bars. We saw 28,000 job additions there. Professional and technical services, a rise of 27,000. Health care did pretty well. Up 17,000.

Okay. The bad news. Fifteen thousand jobs were lost in manufacturing for the month of August. And that's because of some summer shifting going on in the auto industry. The Labor Department says fewer workers than usual were hired back in August to prepare for the next model years.

Okay, so on this news, we're watching stock futures slip just a little bit after the report but they are staying in positive territory. Remember, we did see the Dow, Carol, jump more than 200 points yesterday in part because of hope for a good jobs report. Hopes were dashed, though. That ADP report just was way off the mark -- Carol.

COSTELLO: Okay. So we'll get back to you to see how the stock market reacts a little later this morning.

Now let's turn to the political impact. All week, Democrats have been telling voters that President Obama had the recovery on the right track, but this latest setback may make that argument a much harder sell. The top of the hour, the President leaves -- leave Charlotte en route to Portsmouth, New Hampshire, and that's where we find our White House correspondent Dan Lothian.

So, Dan, how damaging to the President could this latest jobs report be?

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well, look, it had the numbers really been more positive than this, then you could argue that it would have moved the needle in a more significant way, especially coming out of the Democratic National Convention.

The President could go out there on the campaign trail and say, look, we are making some significant gains. We expect that what we'll hear from the White House, though, is that there's still a lot of pain. There's still a lot of work to be done. But nonetheless, a little bit of progress is being made.

But obviously, this is something that Republicans now can go after the President as we've seen already from Reince Priebus, the chairman of the RNC, who's saying that the President so far has not been able to deliver on his number one promise, and that is job creation. In fact, in a tweet, he tweeted out, quote, "No wonder they couldn't fill Bank of America stadium. Over 300,000 Americans left the work force. Devastating," using the #timeisup.

What he's referring there to is that Republicans over the last few days have been saying that the reason that the President moved his speech indoors last night was not because of the weather but because Democrats could not fill the seats. The campaign is saying that's clearly not the case. It was because of the weather.

But the President, as you pointed out, hitting the campaign trail, coming here to New Hampshire. He'll also then go from here to Iowa and then to Florida. You'll see the President spending a lot of time in key battleground states because as we've been talking about over the last several weeks, it's a small slice of the electorate that the President is trying to reach. And those are those undecided independent voters. They are trying to sway them.

Most of the rest of the Americans out there have already decided who they are going to vote for. So that's the hard sell. And you'll hear the President continue to talk about what he has done, and what he plans to do to help middle class voters. They are hoping that will be effective especially in states like Ohio and Michigan.

COSTELLO: Dan Lothian reporting live from Portsmouth, New Hampshire, this morning. Thank you.

Of course today is the morning after the big night in Charlotte for the Democrats, where President Obama took his bid for re-election directly to you, the voter. His mission, to carry the convention's momentum straight to the voting booth 60 days from now.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I accept your nomination for President of the United States.

And on every issue, the choice you face won't just be between two candidates or two parties. It will be a choice between two different paths for America. Ours is a fight to restore the values that built the largest middle class and the strongest economy the world has ever known.

Now, our friends down in Tampa at the Republican convention were more than happy to talk about everything they think is wrong with America. But they didn't have much to say about how they'd make it right. They want your vote, but they don't want you to know their plan. And that's because all they had to offer is the same prescriptions they've had for the last 30 years.

Have a surplus? Try a tax cut. Deficit too high? Try another. Feel a cold coming on? Take two tax cuts, roll back some regulations, and call us in the morning.

I'm asking you to rally. Around a set of goals for your country. Goals in manufacturing, energy, education, national security, and the deficit. Real achievable plans that will lead to new jobs. More opportunity. And rebuild this economy on a stronger foundation. That's what we can do in the next four years, and that is why I am running for a second term as president of the United States.

Only you have the power to move us forward. I recognize that times have changed since I first spoke to this convention. Times have changed, and so have I. I'm no longer just a candidate. I'm the President.

(CHEERS AND APPLAUSE)

(END VIDEO CLIP)

COSTELLO: To talk about the President's speech, we're joined by CNN political contributor and Democrat Hilary Rosen and Republican strategist Ana Navarro.

Welcome to you both.

HILARY ROSEN, CNN POLITICAL CONTRIBUTOR: Hi, Carol.

COSTELLO: Okay.

ROSEN: Hi, Ana.

COSTELLO: I know it's been a long night.

ANA NAVARRO, CNN POLITICAL CONTRIBUTOR: Hello, Carol.

COSTELLO: And it's an early morning for you guys. We appreciate you being with us this morning.

The jobs report. Disappointing. Coming on the heels of the President's speech, how does that affect how voters kind of like took his speech, Hilary?

ROSEN: Well, look, you know, I'm hesitant to sort of spin this too much so I'll lay it out straight. You know, we had -- we still had 29 straight months of job growth. We were losing 800,000 jobs a month before the President took office. And we are growing jobs. And it's too slow. There are still too many people out of work. But I think what -- you know, one thing to remember is the President knew those job numbers when he made that speech last night.

I don't think it's any surprise that we heard from him I never promised you this would be easy. We were in a big hole. And we have a lot of work to do.

COSTELLO: Ana, the President sort of said, you know, it's all about hope and faith. Like give me some more time. I'll turn this thing around. But with a jobs report like that, will anybody believe it?

NAVARRO: I think it's hard to spin this jobs report as anything but what it is. And it is raining on President Obama's convention speech last night. You know, he's now gone from hope and change to cope and wait. He's no longer -- four years ago, Carol, he was the candidate that was America's hope for change. Today, he needs to maintain the hopefulness of Americans, if he has any hope of winning.

And when you see job reports like these continue coming out before the elections, I tell you, that becomes increasingly difficult. And it also highlights a stark difference between the pageantry, the words, the speeches, that we've heard in the last four days and what's really happening in American households.

COSTELLO: And Hilary, the President really didn't lay out an economic plan, or at least a new economic plan. He sort of went through the basics. You know, we need to concentrate on infrastructure, and we need to cut taxes for middle class Americans but raise taxes on the wealthiest Americans. But we've heard that before.

Did he need to lay out more of a plan last night?

ROSEN: Well, a couple of things. First of all, we've heard it before but we haven't done it before. So the President proposed a budget to Congress that would trim the deficit, that would give middle class tax -- people a break, that would reinvest in education and technology, and the Republicans in Congress have not passed it.

So there is a plan to do that. You know, energy was a big goal that the President set last night. The jobs in the future, and we saw this in the jobs report today, they are in health care, they are in energy, they are in services sector. Those are the places that the President's consistently said we've lost the jobs of the past in so many ways. We have to double down on the jobs of the future.

And this does not happen overnight. You know, I thought Bill Clinton actually said it best the other night in some ways. He said, you know, in his only Bill Clinton colloquial way, he said, you know, the Republicans left us this huge mess, he is not cleaning it up fast enough, so now they want the reins back.

And, you know, we just cannot go back to the same policies that got us where we were. We have to go the way the President is taking us.

COSTELLO: So, Ana, I know that Mitt Romney is going to be on one of the Sunday morning news shows. That will be his first appearance since the National Convention. What do you suppose he'll talk about?

NAVARRO: Well, you know, look, I think -- I think Hilary is right in what she said. Nobody expected President Obama to change things overnight. But we're not talking about overnight anymore. What we're talking about is 3 1/2 years. And I think Americans are losing some patience.

What does Mitt Romney have to talk about? This jobs report. He's got to focus squarely on the economy. And he's going to have to highlight that American people have lost patience, that he's gotten a good chance, that he's gotten 3 1/2 years, that things aren't what we had hoped for. And that, you know, it's time for a change of leadership.

COSTELLO: Ana Navarro, Hilary Rosen, thank you so much for joining us this morning.

ROSEN: Okay. Take care.

NAVARRO: Thank you.

COSTELLO: Okay. Let's talk about Jennifer Granholm now because she is a speaker at the DNC getting a lot of buzz this morning. She's the former Michigan governor, and conservatives are saying Jennifer Granholm, well, she just delivered the Democrats Howard Dean moment.

(BEGIN VIDEO CLIP)

FORMER GOVERNOR HOWARD DEAN (D), VERMONT: And then we're going to Washington, D.C., to take back the White House. Yes.

(END VIDEO CLIP)

COSTELLO: Okay. So that's the Howard Dean moment. You be the judge. Listen to Granholm's fiery address last night when she started talking about the auto bailout.

(BEGIN VIDEO CLIP)

FORMER GOVERNOR JENNIFER GRANHOLM (D), MICHIGAN: Now, you know, you know Mitt Romney, he saw the same crisis. And you know what he said. Let Detroit go bankrupt. Now, sure, sure, Mitt Romney loves our lakes and our trees. He loves our cars so much they even have their own elevator. But the people who design and build and sell those cars, well, in Romney's world, the cars get the elevator, and the workers get the shaft.

(CHEERS AND APPLAUSE)

All across America, autos are back. Manufacturing is rebounding. Why? You know why. Say it.

(CROWD CHANTING USA)

GRANHOLM: USA.

(END VIDEO CLIP)

COSTELLO: Okay. So this is some of the reaction Granholm was getting this morning. Ohioan wrote on the "Washington Post" Web site, "Jennifer Granholm, was she drunk? On drugs? That was embarrassing to watch."

But CNN political analyst David Gergen had a far different view. He posted this on Twitter. "If anyone ever tells you a woman can't give an energizing, hard-hitting speech, tell them to watch video of Jennifer Granholm."

We'll let you decide this one.

Republican Mitt Romney is taking a break from debate prep to head back to the campaign trail and also appear on NBC's "Meet the Press" on Sunday. But before that, Team Romney is reacting to President Obama's address.

Matt Rhoades, Romney's campaign manager, says tonight, "President Obama laid out the choice in this election, making the case for more of the same policies that haven't worked for the past four years. He offered more promises but he hasn't kept the promises he made four years ago. Americans will hold President Obama accountable for for his record. They know they are not better off, and that it's time to change direction."

The DNC was rocking last night for people inside the arena. But what about the 65,000 who were uninvited from the big party? We'll talk to one of them.

(COMMERCIAL BREAK)

COSTELLO: It was like a cavalcade of stars at the Democratic National Convention. James Taylor, the Foo Fighters, and an unusual show of affection by Eva Longoria. She appeared to be petting Jessica Alba.

That aside, delegates went all disco when Mary J. Blige took the stage to sing her hit song "Family Affair."

(BEGIN VIDEO CLIP)

MARY J. BLIGE, SINGER: Don't be shy! Come on!

(MUSIC)

(END VIDEO CLIP)

COSTELLO: You could see everyone getting their groove on. Some were good at it, and some pretty darn bad, but it doesn't matter. They tried. They tried dancing, and they were having fun.

Of course, about 65,000 people missed out on the fun because Democrats feared it would rain. This is where President Obama was supposed to speak, the Bank of America Stadium. It fits about 75,000 people just in the seats. But forecasts for thunderstorms and heavy rain forced the DNC to move into the Time Warner Cable arena, which can only fit about 20,000 people.

So as you might have guessed, that meant thousands of people were mighty upset.

President Obama held a special conference to apologize.

(BEGIN AUDIO CLIP)

OBAMA: I just want to begin by saying how much I regret that we're not all gathering together in one place to deliver my acceptance speech tonight. The problem was a safety issue. I could not ask you, our volunteers, law enforcement, first responders, to subject themselves to the risk of severe thunderstorms.

(END AUDIO CLIP)

COSTELLO: By the way, it barely rained at all. U.S. Airways and United Airlines told people they could change their flights to leave Charlotte early without paying a change fee.

With us now, Nana Boone, a working mother of three and someone who was supposed to attend the last night of the DNC, until she got an email saying, sorry, there wasn't room.

Oh, you were so excited.

NANA BOONE, POTENTIAL DNC ATTENDEE: Very excited. My children were excited. They all wanted to see the President in person. We were packed and ready to go, and then I got the word that we weren't able to make it.

COSTELLO: So, you got an email. What did it say?

BOONE: Essentially, it said, you know, we want to keep the momentum going. Unfortunately, due to forecast thunderstorms and us keeping your safety and consideration, we had to move to a different arena. And it does not accommodate the number of individuals initially planned for.

COSTELLO: Well, at least you didn't fly there. That's one good thing.

BOONE: Yes, yes.

COSTELLO: Yu know what the Republicans are saying. They are saying the reason the Democrats cancelled the big stadium thing was because they couldn't fill the stadium.

BOONE: I doubt that that's the case. I seriously doubt that's the case. I think there were thousands of people who were very disappointed, like I was.

I actually looked online, on the Web site, for the convention, and saw a lot of responses. People were very upset. Some people more understanding than others. But overall, everyone was disappointed.

COSTELLO: How upset did some people get?

BOONE: Oh, wow. Some people said, all my volunteerism was for nothing. Why would you plan to have something in an outdoor arena knowing that weather could be a factor? Not so nice terms, people basically conveyed their disappointment.

COSTELLO: Okay. But I'm sure that you watched President Obama's speech on television.

BOONE: I did, I did.

COSTELLO: And the jobs report came out this morning, and it was kind of dismal.

BOONE: Yes.

COSTELLO: So add those two things together, and what is your impression this morning?

BOONE: Well, you know, weather obviously is something that no human can control. In terms of planning for it, hurricane season, East Coast location, I don't know that it was the best decision to try and have it at an outdoor facility.

But that aside, the jobs report coming out this morning, again, we are steadily, slowly but surely, improving in the job market. It wasn't as positive as I think a lot of people were expecting. But I think that yet it's still yet to be seen what the result of his past four years is looking like.

COSTELLO: So, it's not going to change your mind in the voting booth?

BOONE: No, not necessarily.

COSTELLO: Nana Boone, you're going to join us in the next hour.

BOONE: I will.

COSTELLO: Thank you for being here this morning.

BOONE: Thank you.

COSTELLO: The Democratic National Convention is now over. What did you take away? The day's talk back is next.

(COMMERCIAL BREAK)

COSTELLO: Now is your chance to talk back on one of the big stories of the day. The question for you this morning, what did you take away from the Democratic National Convention?

Massachusetts Governor Deval Patrick led the rallying cry.

(BEGIN VIDEO CLIP)

GOV. DEVAL PATRICK (D), MASSACHUSETTS: My message is this. It's time for Democrats to grow a backbone and stand up for what we believe.

(END VIDEO CLIP)

COSTELLO: And stand up they did, like bulldogs. Speaker after speaker attacked Republicans, even at times spicing it up with some colorful lingo.

(BEGIN VIDEO CLIP)

BILL CLINTON, FORMER U.S. PRESIDENT: When Congressman Ryan looked into that TV camera and attacked President Obama's Medicare savings as, quote, "the biggest, coldest power play," I didn't know whether to laugh or cry. You've got to give them one thing. It takes a brass for attacking a guy for doing what you did.

(END VIDEO CLIP)

COSTELLO: Yes, there was what conservatives called the Howard Dean moment from former Michigan Governor Jennifer Granholm.

(BEGIN VIDEO CLIP)

GRANHOLM: All across America, autos are back. Manufacturing is rebounding. Why? You know why. Say it!

CROWD: USA! USA! USA!

(END VIDEO CLIP)

COSTELLO: Well, maybe you could call it the Democrats' Clint Eastwood moment. But the real question is whether voters took away anything new from President Obama.

(BEGIN VIDEO CLIP)

OBAMA: I'm asking you to rally around a set of goals for your country, goals in manufacturing, energy, education, national security, and the deficit -- real achievable plans that will lead to new jobs, more opportunity, and rebuild this economy on a stronger foundation. That's what we can do in the next four years, and that is why I am running for a second term as president of the United States.

(END VIDEO CLIP)

COSTELLO: So did you buy it? Talk back question for you today, what did you take away from the Democratic National Convention?

Facebook.com/CarolCNN, Facebook.com/Carol. Your comments later this hour.

A paycheck in hand, but a home still out of reach. We'll look at how one city is dealing with the growing problem, fulltime workers who are forced to live in their cars.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I've got a full-time job. I'm barely making ends meet.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

COSTELLO: Thirty minutes past the hour. Good morning to you. Happy Friday. I'm Carol Costello.

Stories we're watching right now in the news room, we're seconds away from the opening bell at the New York Stock Exchange. All eyes are on the market to see if it will respond to the dismal jobs report released today. We'll take you live to the New York Stock Exchange in just a few minutes for an update.

The man who pulled off the -- the man pulled off of a U.S. Airways flight in Philadelphia after a bomb scare has now been arrested on other charges. Chris Shell was removed from the plane by armed officers yesterday morning. Police were acting on a tip that Shell had explosives on him, but it turns out that tip was a hoax.

An affiliate WPVI says it was made by a man who is dating Shell's ex- girlfriend. It was an episode that startled other passengers onboard that plane.

(BEGIN VIDEO CLIP)

STEVE MCNEAL, PASSENGER: He reached out with his left hand, grabbed me, pulled me behind him, and focused on the guy that was next to me, and told him to get up. You know, don't move fast. Just stand up. Put his hands up.

(END VIDEO CLIP)

COSTELLO: Last night, Shell was taken into custody for outstanding warrants from Texas. No dangerous material was ever found on Shell after the U.S. Airways flight landed.

Prince Harry is in Afghanistan this morning. He'll be based in the Helmand province as an Apache helicopter pilot. The prince served there briefly four years ago but was quickly called home because of safety concerns.

The nation's dismal economy is a huge issue in the presidential election, but for millions of Americans, it's much more than just a talking point. That's especially true in Santa Barbara, California, where the average home costs more than $600,000. The average home costs that. It's enough to overwhelm even people making healthy paychecks. And force families to live in their vehicles.

CNN's Kyung Lah shows us how the city is trying to help.

(BEGIN VIDEOTAPE)

JULIUS TORREVILLAS, HOMELESS BUS DRIVER: How are you today? Hi.

KYUNG LAH, CNN CORRESPONDENT: Julius Torrevillas is behind the wheel of a Santa Barbara MTB bus five days a week -- a fulltime job that pays $19 an hour to the jovial driver with the unforgettable beard.

When his work day is over, he moves from his bus to another vehicle, his van, where he lives.

TORREVILLAS: We have a regular full size mattress.

LAH: This is home, because he makes too much to qualify for public housing, but can't afford rent in the high cost city of Santa Barbara.

(on camera): A lot of people think if you have a fulltime job in America, you're okay. That's not really the case for you, is it?

TORREVILLAS: No. You know, I've got a fulltime job. I'm barely making ends meet.

LAH (voice-over): Debt from a failed small business piled up, and he and his wife are still digging out. So this county parking lot is where they sleep, joined by more than a dozen others who live in their cars. It's called the safe parking program, 114 spaces spread out across the county, with the waiting list of more than 40.

NANCY KAPP, NEW BEGINNINGS: I have senior citizens. I have couples. I have families.

LAH: A third of the people says the program's manager, have jobs, but are underemployed, like approximately 17 percent of Americans.

(on camera): What do you think it says about America when somebody who has a job, who wants to work, still has to live in a car?

KAPP: I think people would be shocked. I think they would be shocked if they would come and meet some of these people, because I'll tell you, when they come into my office, I want to cry, because it reminds me of someone that could be my mother, my sister, my brother.

LAH (voice-over): Or your bus driver.

TORREVILLAS: Good morning.

LAH: Who starts his day on the move. Breakfast with his wife, Mary, is at the donut shop.

TORREVILLAS: Toothbrush, toothpaste.

LAH: The bathroom, a public one. The dressing room, the back of the van.

MARY TORREVILLAS, JULIUS' WIFE: Normal life is watching this. You know, living in a van is not the norm.

LAH (on camera): Has the middle class in America changed?

J. TORREVILLAS: I think that middle class has slid down the scale a little bit more towards the lower class. And it's a little tougher for the middle class people to survive and actually pursue their American dream.

I love you.

M. TORREVILLAS: I love you too.

LAH (voice-over): Torrevillas keeps chasing his dream, hoping whoever wins this election will be able to shift the economy into gear.

J. TORREVILLAS: Good morning. Thank you.

(END VIDEOTAPE)

COSTELLO: Kyung Lah joins us now live from Los Angeles.

And you just wish they could move out of Santa Barbara, find someplace cheaper to live and be able to get a job. But that's the hard part, right?

LAH: Absolutely, Carol. It comes down to one word, "job." And Julius Torrevillas has that good right now. It's actually a good- paying job, $19 an hour. So he doesn't want to leave it.

Even though perhaps it's cheaper to live somewhere in the Midwest or the South, he just doesn't want to give it up, because we've been talking about that jobs report, how difficult it is to get that job. He doesn't want to let it go. He's only got a couple of years before he is vested and can get a pension.

COSTELLO: Kyung Lah, reporting live from Los Angeles, thanks so much.

So we just heard from someone who actually has a job but it is still homeless. And this morning, we are learning that the nation's job market continues to grow at an agonizingly slow pace, 96,000 jobs were added last month. The unemployment rate ticked down to 8.1 percent, though. But that's really not the bright news you'd expect.

Alison Kosik is at the New York Stock Exchange.

How are the markets reacting?

KOSIK: You know, what's interesting about jobs report in general -- no single economic report, Carol, can move the market more than the jobs report. And you don't see stocks moving much at this point. They are pretty much mixed.

A little positive, somewhat on the positive side this morning, and you're thinking, how can that be? This number, this jobs number, 96,000 jobs added in August, that's a lousy number. You know what the way Wall Street sees it, bad news for the economy could wind up being good news for the market.

It's kind of this crazy reverse logic because the way Wall Street sees it, many believes that this report could wind up influencing the Federal Reserve's decision next week when it meets to announce a new stimulus program to try and rev up the economy.

So there are still high hopes that the Fed will take some sort of action next week.

You did mention that drop in unemployment from 8.3 percent to 8.1 percent. It sounds good on the headline, but then you kind of roll back that curtain and see the reason is because the labor force shrank, 368,000 people literally dropped out looking for work. They got fed up, they got frustrated, and they said, you know what? Forget it. I can't get a job. And that's really not the way you want to see the unemployment rate go down.

Also the number of people in the labor force, Carol, at its lowest level since September of 1981. One analyst tells me it's a disappointing report because lately the economic reports for the U.S. have been showing promise. So that kind of adds to the disappointment -- Carol.

COSTELLO: Alison Kosik live at the New York Stock Exchange.

Chicago braces for a possible teacher strike that would keep 400,000 students out of school. As the clock ticks down to a deadline, we'll see if there's any chance of a settlement.

(COMMERCIAL BREAK) COSTELLO: Parents in Chicago are scrambling, trying to figure out what to do with their children on Monday.

That's why. Teachers are set to strike, a move that would affect some 400,000 students. So let's bring in our Ted Rowlands.

Ted, what's at issue here?

TED ROWLANDS, CNN CORRESPONDENT: Well, a couple of things, Carol. First of all, pay, as you might imagine. Another issue they are stuck on is some job security for veteran teachers when schools are closed.

The union really wants those veteran teachers protected in the event that a school goes down. They want those teachers to keep their jobs. Also they are ironing out the specifics over a longer school day, which both sides agreed to a few months ago, but the teachers want breaks in there and prep time put in there. Those are the major sticking points. Another thing that is sort of an overriding theme in this negotiation is this anti-union sentiment that the teachers union is very sensitive about. And they believe that that's playing a part in this.

Take a listen to a spokesman we talked to yesterday who brought up that exact point when we were discussing it.

(BEGIN VIDEO CLIP)

BRANDON JOHNSON, CHICAGO TEACHERS UNION: It is playing a part. And I think what's most disconcerting is you have Democratic mayors all over the country leading the charge, attempting to destroy the public sector.

Particularly, you know, public school teachers unions.

(END VIDEO CLIP)

ROWLANDS: And, of course, the Democratic mayor here in Chicago is Rahm Emanuel. And the teachers union really feels as though he has aligned himself with the board, and has left their side.

We asked Rahm Emanuel for an interview. He declined our offer to talk about that specific item. He did release this statement to us yesterday, talking about the kids being out of school possibly, saying, "Every day they are not there is a day taken away from them that they just cannot afford. Leaders on both sides need to stay at the negotiating table and finish their job, finding a solution that's fair for our teachers and keeps our students in school."

The bottom line here, Carol, is neither side wants this to go through. They do have a considerable impasse that they have to deal with. But the empathy level for the teachers is not going to be real high when we're talking about jobs and the lack of them for people around the country.

And it's the last thing that Rahm Emanuel needs. He's got violence in this city. He doesn't need kids out on the street during the day, and teachers striking outside of his schools. So they're working hard.

But at this point, no deal, and all the preparations have been put into place for a Monday strike, including calls to parents warning them that this could and probably will happen. People are told to get plan B set and ready to go.

COSTELLO: Ted Rowlands reporting live from Chicago for us this morning.

Forty-two minutes past the hour. Checking our top stories now:

A jury has found Drew Peterson guilty of murdering his ex-wife. Illinois investigators accuse the former cop of killing his third wife, Kathleen Savio, in 2004 after his fourth wife, Stacey Peterson, went missing. Family members had an emotional reaction to the verdict.

(BEGIN VIDEO CLIP)

NICK SAVIO, KATHLEEN SAVIO'S HALF BROTHER: I'll never have my sister again. I still have to see her in the cemetery. But at least I know she got justice in the hands of a cold-blooded killer up there.

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COSTELLO: Peterson's attorneys have vowed to continue fighting on his behalf. He faces a maximum of 70 years in prison.

At least some of the oil and tar balls found on coastlines after hurricane Isaac was from the 2010 BP oil spill. That's according to preliminary tests by state officials. BP plans to test the samples too, saying there's a lot of oil out there that may not be ours.

Texas will soon open a new highway with the highest speed limit in the country, 85 miles per hour. This is a 41-mile stretch that connects Austin to San Antonio. Critics say higher speed limits mean more deadly crashers, but supporters love the fact that they will be able to drive way faster than 55.

And in sports, tennis player Novak Djokovic will play David Ferrer in the U.S. open semifinals tomorrow in New York. Djokovic is ranked number two in the world. Ferrer ranked fourth. The winner will advance to the finals on Sunday.

Take a look at these pictures.

Wow. A semi truck slams right into a state trooper during a traffic stop. And then you see the trooper walk over to the railing before he collapses. It happened in Maryland in June. But this video was just released.

The trooper is still alive. He is recovering. The truck driver was forced to pay a fine.

The Democratic National Convention is now over. So what did you take away from it? Your responses to our talk back question, next. (COMMERCIAL BREAK)

COSTELLO: The Pakistani-based Haqqani Network will now be listed as a terror organization. CNN has just learned the Secretary of State Hillary Clinton will notify Congress today of her intent to formally classify that group. CNN's Pentagon correspondent Barbara Starr joins me now to tell us why that's important. Hi Barbara.

BARBARA STAR, CNN PENTAGON CORRESPONDENT: Good morning, Carol. It is important for one big reason, of course, and that is that the Haqqanis have killed perhaps dozens of U.S. troops, let alone Afghan and Pakistani citizens during the last several years of war.

Let's get right to it. Who are these people? Who is the Haqqani Network? Well, this is a group of warlord run militants that operate on both sides of the Afghan-Pakistan border but are headquartered mainly in Pakistan.

What have they done? They are responsible for a number of very high profile attacks in the Afghan capital of Kabul, in Pakistan, and against several U.S. military bases, many U.S. military lives lost.

What does this action mean designating them as a terrorist network? It gives the U.S. another tool, if you will, to go after their financing. The U.S. has long believed much of the Haqqani's money, which allows these attacks to happen, is coming out of supporters in the Persian Gulf.

But Carol, will this make a difference for U.S. troops? That's the real question. The belief of U.S. intelligence is the Haqqanis are well supported inside Pakistan by Pakistan's own intelligence services.

So once again, you have this problem that we've heard so much about. Unless Pakistan agrees to crack down on these guys, the U.S. effort may be just another step on the road, but nobody really thinks it's going to make a fundamental difference unless Pakistan itself gets involved and cracks down on this militant network -- Carol.

COSTELLO: Wow and that's -- that's the big question. That's a big if, Barbara. Thank you so much.

STARR: You bet.

COSTELLO: Barbara Starr reporting live from the Pentagon.

Our "Talk Back" question this morning, "What did you take away from the Democratic National Convention?"

This from Brandon. "That Obama is the right president. However, he needs to focus on better fiscal responsibility if he wins his second term. I believe Clinton called it simple arithmetic."

This from Kyle. "We saw that the Democrats are ready to fight for the presidency. They're throwing down the glove, holding back no punches. This should be an interesting election to watch." This from Paul. "Lack of specifics, no vision. I expected and wanted a vision and instead we got hype. To be fair, we also got that at the Republican convention."

This from Roger. "The Democrats are willing to promise anything to stay in power and turn this country into something it was never intended to be. It's not the uniting party but rather the divisive party."

And this from Brian. "Maybe they are growing a backbone to enunciate their principles and goals again."

Keep the conversation going. Facebook.com/CarolCNN. More of your comments in the next hour of the NEWSROOM.

It's been a really long time since this has happened. Five quarterbacks straight out of college and all starting their first pro game at the most demanding position in football.

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COSTELLO: If you want to take your family to an NFL game this season you might need to take out a loan. According to a new survey from team marketing -- team marketing they report -- this a Team Marketing reports fan cost index -- yes you try to say it eight times quickly -- the New York Giants actually have the highest average ticket price. The average ticket to see Mark Sanchez, Tim Tebow and company just under $118. Tom Brady and the New England Patriots a very close second, ten cents cheaper than Jets tickets. The defending Super Bowl champs the New York Giants third, average ticket cost of over $111. Wow.

Well, the NFL starts for real this weekend and week one is not going to be easy. Joining me now via Skype is Jim Trotter from "Sports Illustrated". Good morning, Jim.

JIM TROTTER, "SPORTS ILLUSTRATED"REPORTER: How are you doing?

COSTELLO: Would you pay $118 to get into a football game?

TROTTER: No chance. Thankfully I have a press pass. So I can avoid that. But I can feel the fans' pain.

COSTELLO: Yes I think I'll stay home and watch. Maybe buy the NFL package. That's expensive but it's a lot cheaper than going to two games. Wow.

TROTTER: That's good.

COSTELLO: Okay. Let's talk about the games themselves. Take your pick of the big game, San Francisco at Green Bay or Pittsburgh at Denver?

TROTTER: Well, they're both intriguing but for me I like the Green Bay/San Francisco game from the standpoint that I believe it's going to be a preview of the NFC championship game. And it has a great story line there in terms of, you know, the irresistible force meaning the Green Bay offense against the immovable object which is the San Francisco defense, which was number two in the league in points allowed last year.

So when you look at it from that standpoint to me that's the better match up but obviously a lot of attention is going to be paid to the Denver game because it is Peyton Manning's first game in two years.

COSTELLO: So how did he look? I mean, his arm strength kind of seemed to be there but the craftiness is back certainly.

TROTTER: I think he'll be fine but I think that the thing you have to look for is what Peyton talks about and that's the process. For the first time in his career he's in a new offense. He has a new offensive coordinator and he has a new group of receivers.

And what Peyton told me is that, look, you can't rush, you know, building camaraderie among those receivers. It takes time. It's a process. What, I think, is going to be difficult for him is that six of their first games are against teams that were in the playoffs last year so he's not going to have a lot of time to get his feet wet and to develop a rapport with these receivers but physically I think he's fine.

COSTELLO: I hope so. He's just such a great guy and great player.

Quarterbacks. Let's talk some more about quarterbacks. Five rookie quarterbacks starting opening weekend. The most in what, 60 years? Andrew Luck, Robert Griffin III, Russell Wilson, Brian Tannehill and Brandon Weeden. So who will have the better game?

TROTTER: You know, I'm going to say it might surprise people but it's going to be Russell Wilson in my opinion because I think, number one, Seattle has a very good defense which means there's going to be that pressure taken off for Russell Wilson. Number two he is playing an opponent in the Cardinals that does not have a stable quarterback situation at this point. So I don't think he's going to have to put up a lot of points to win this game.

The other thing if you look at it, Andrew Luck has to go against the Bears and their formidable defense in Chicago. Tannehill has to go against Houston which was number two in the league in defense last year. RG3 has to go against the Saints in New Orleans.

COSTELLO: Ooh.

TROTTER: Where the Saints limited six of eight opponents to 17 or fewer points last year. And Weeden and the Browns, you know, I think they have a chance of having the worst record in the league this year so I don't anticipate much from him.

COOPER: Yes. I'm already weeping for Cleveland. But you never know. With Cleveland you actually always know. I can say that because I'm from Cleveland

Jim Trotter, thank you so much. I appreciate it. TROTTER: Thanks for having me.

COSTELLO: Next hour of CNN NEWSROOM starts after a short break.

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