love you for being with us on "new day." now time for "newsroom" with carol costello. >> thank you i'm honored. "newsroom" starts now. good morning. i'm carol costello in "newsroom." we're on wall street as the opening bell rings. america asks the question why did the dow plunge 7% in the first month of the new year? let's break that down. the average american started this year with a 401k with joust over $100,000. by the closing bell yesterday, that nest egg shrank to $95,000. most 401k saw healthy returns in

2013. take a breath. i bet you're not feeling good now, right? christine romans is tracking the futures. what are they looking like christine? >> 30 minutes before the poeopeg bell and it looks like they're higher. there has not been a meaningful correction in the s&p 500 in almost two years. when selling came carol, it was ferocious. it was a brutal day on wall street. dow plunging 326 points monday, down 7% since the beginning of the year. the drastic drop sparked by a weak manufacturing report and disappointing sells from big auto makers like gm, ford, toyota. for many the selloff isn't surprising. here's why. stocks can't go up forever. after last year's huge rally,

many call this an expected correction. >> i don't think this correction is over. the last time around i talked about a correction it was sort of like waiting for gudo. >> second there's a new leader at federal reserve. janet yellen is picking up where bernanke left off and has to pull billions out of the economy without derailing. turkey, south africa and others are in shaky conditions. dozens of companies have put out weak earning forecasts. translation, lack of confidence. for those reasons, selling may continue. how much? many predict the markets need a staggering 10% decline from recent highs. they say lows will be brief and stocks could rise in 2014. for now, buckle up and get ready for a bumpy ride. >> just how strong is the u.s. economy? it's going to be hard to tell

carol. this terrible weather is going to make the economic data look crazy. here's perspective for you. if you like at the dow jones industrial or s&p 500 back to march 9, 2009, look at that. s&p 500 up 157%. just that little tiny dip lower on the far right of that screen, that's what speeexperienced. >> chill and be patient right? >> chill and be patient, a technical economic term. >> i'll take it. thanks so much. on a talk radio show, chris christie faced voters for the first time since the bridge gate scandal erupted. he says despite growing questions about his role, his answer remains the same. >> the most important issue is, did i know anything about the plan to close these lanes? did i authorize it?

did i know about it? did i approve it? did i have any knowledge of it beforehand? the answer is still the same, unequivocally no. >> christie's appearance is part of the call in show call "ask the governor." it comes after o days after wildstein claims kick knew about the lane closures ahead of time. another snowstorm could bring a paralyzing 30 inches of snow. a nasty mix of rain and snow falls from the midwest through the northeast today into tomorrow morning. this follows the record of eight inches that fell in central park monday. forecasters are calling for nine additional inches through wednesday. is this the worst winter ever, chad myers? >> not in california. it's 10 degrees above normal. the ridge in the west and trough

in the east. it has been cold. they're trying to find punxsutawney phil to make him change his mind. snow is in kansas city and wichita. colder on the east side of the rockies, same as its been. warmer on the west side of the rockies. winter storm warning through tomorrow. new york city doesn't get a snowstorm. new york city gets an ice storm. it's in kansas, parts of eerie, buffalo, syracuse and upstate new york into maine. south of there where we are here, it will be an ice event. ice in baltimore, philadelphia, washington d.c., all the way up to new york city. some ice could be devastating, talking maybe half an inch in darker regions. that will put stress on power lines, and some will fall because of extra weight. there goes the storm. this is the first one, the small one. the nor'easter that its on sunday is the one that could put 30 inches of snow somewhere.

still five days away. i don't know where. some where will have 30 inches of snow. somewhere. >> somewhere in the country. seriously in some parts of the country, people are asking is this the worst winter ever? >> certainly for snowfall totals in chicago and other parts that have had such cold air. we haven't seen lakes froze like this, at least in 20 years. is it the worst winter ever? no, not yet. it isn't the end of winter. we still have spring six weeks away. that is not even punxsutawney phil. that's the calendar. we have a lot of winter to go. >> chad, thanks. a teach ere is waking up in jail after a former student's shocking allegations against her in a youtube video. >> i was 12 years old when i met

you. do you realize you brainwashed me and manipulated me? what you did was wrong? >> yes. and i regret it. >> are you doing this with other students too? >> no. >> is that how you help them? >> no. >> you should be so ashamed and disgusted with yourself. >> i am. i am. >> the voice you hear on the phone is said to be that of 40-year-old andrea cardosa, that woman on your screen. she was arrested monday night and is facing 16 felony counts of child sex abuse. jamie is the goiirl that postedt on youtube. she's gratified and says justice will be served. there's details on the evening before the actor was found dead.

he was surrounded by drugs with a needle in his arm, he withdrew money. it's the latest details into what appears to be descent into his addiction. michelle turner has more for you. >> this eerie and chilling photo taken two weeks before his sudden death may be one of the last taken of the oscar winning actor. new york police say they found nearly 50 envelopes containing what they believe to be heroin insi inside hoffmann's apartment. labeled with the name ace of spades. several other bags containing white powder and prescription drugs as well as syringes. police are trying to post together his final moments. his saturday beginning here at the local coffee shop. >> seemed in good spirits.

seemed happy, typical chatting with staff. >> his assist ant spoke to him on the phone and said nothing seemed out of the ordinary. half an hour later t actor's ex partner and mother of his children told them she saw hoffmann near his apartment where he appeared to be, quote, high. hoffmann had dinner at this local restaurant with two friends. >> i had heard he relapsed recently. it is not a total shock. it's a sad thing. >> at 8:30 that night, she spoke to him on the phone. the next morning around 9:00 expected to pick up their three children but never showed. his friend was called to check on him. at 11:00 a.m. he was found in the bathroom of his fourth floor

bedroom apartment. minutes later he was pronounced dead. >> there was a laundry list of prescription drugs found in hoffmann's apartment including blood pressure medication, muscle relaxer and medication to treat addiction, attention deficit disorder and anxiety. investigators are trying now to determine whether the actor had prescriptions for these drugs. they also are trying to determine where he exactly bought the heroin and if anyone was with him when he died. >> we're still a waiting results on his autopsy as well. michelle turner, thanks to you. a bomb shell from corner back richard sherman. if you're wondering why the broncos lost so badly. sherman has the answer. he says he and his teammates were able to fig your out peyton

manning's hand signals. they were calling out plays throughout the play and getting them right. manning through two interceptions including one that was returned for a touchdown. maybe the omahas did him in. it made rating history. 111 million watched the game, making it the most watched television program of all time. the broncos performance made david letterman's top ten list. >> top ten things overheard during the super bowl. number ten, when does the game start? number nine, that's a pretty nice day here in new jersey. when does the game start? number eighth, we should have endorsed christie. number seven, i hope no one is watching.

number six, this is worse than my honeymoon at the late show. what? yeah. number five, who's that hunk in the fur coat? number four, i can't believe they wasted all that gatorade. number three, eli will motivate us. number two, too much pregame colorado weed. number one thing overheard on the broncos sidelines during the super bowl, this is how the jets feel. there you go. >> and the lions and browns, we could go on and on. the super bowl played out on twitter and facebook. americans sent more than 25

million game related tweets over the course of the broadcast. wow. still to come in the "newsroom," is water in west virginia safe to drink? the u.s. senate is holding a hearing to examine the chemical spill that left hundreds of thousands in the state without water for days. we'll talk to west virginia secretary of state about new water concerns in west virginia after the break. [ female announcer ] right when you feel a cold sore, abreva can heal a cold sore in as few as 2 1/2 days when used at the first sign. without it, the virus spreads from cell to cell. unlike other treatments, abreva penetrates deep to block the virus, to protect healthy cells so cold sores heal fast. as fast as 2 1/2 days when used at the first sign. ♪ learn more at abreva.com. don't tough it out. knock it out! fast. [ female announcer ] only with abreva. open to innovation. open to ambition.

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let's head to new york with christine romans. >> this would be the third ceo in the history of the company. steve bammer was stepping a side. now the new ceo, a microsoft insider. he has been there since 1992. microsoft on the website now introducing him to the rest of the world outside of those who have known him at microsoft many, many years. as chairman of the board, we know that bill gates is now stepping down. it is a new era at microsoft. it's not moving, the stock not moving much now. only three ceos since 1975. the insider at the company will be the third. he has a lot of big challenges, right? >> he absolutely does. microsoft is a company where tech changes and technology are

moving very rapidly. many are hoping microsoft can get mojo back with new leadership. >> we'll see. many thanks. it's been one month since thousands of gallons of chemicals seeped into west virginia water supply. guess what? it ain't over. there are new fears over tainted water there. officials say residents could be subjected to chemicals linked to cancer. people are complaining of a licorice smell coming from their water. many were stranded with no water. the drinking water policies, a mid tighter calls for regulation, the west virginia secretary of state natalie tenat will be called to testify. she joining us this morning.

>> good morning carol. >> good morning. thanks so much for being here. it's unfallible the citizens have not trusted their water supply for more than a month. many ask how can this be? >> we're all asking this question. you're exactly right carol. i'm here on capitol hill to tell the stories of west virginia to tell what the families and small businesses are going through. minimum wage employees that have lost money because of this. i'm asked the cdc tell us what they know, what their testing indicates. make sure we have the confidence back in our water in west virginia. we can't get back to restoring our economy if we don't have trust in our water and in the system. >> it's not just the centers of disease control that's causing confusion among the people in west virginia, right? officials say it's safe to drink water, but maybe think about

drinking bottled water too. that's caused confusion among west virginia residents. is anyone giving them a straight story? >> that's what i'm asking for today. we need straight answer, that transparency that comes from this. you're right. so many people are still using -- the do not lift ban or do not use ban has been lifted. many folks are are taking showers and washing their clothe, but they're using bottled water. i'm also asked today to this committee it's not just about now, not about the four weeks into the crisis we've had. what about the ten years from now? that becomes the concern. how do we prevent this from happening again? how do we address potential health risks? i'm asking for a ten year study to study the effects of this now and for our children in the future. >> the owner of the company responsible for this chemical spill, we haven't heard much from him.

does that frustrate you? >> it certainly does frustrate me. it frustrates me the fact a couple of weeks ago into this situation, they chose to file bankruptcy even before some people in west virginia were able to use the water. you want to talk about frustrating. i'm here on capitol hill standing up for west virginians to say this is our story. we did not deserve to be treated this way. we want answers and ways to prevent this from ever happening again. >> what should be done to the owners of freedom industries? >> we have many investigations that are taking place. the u.s. attorney's office has been investigating. i know there are fbi agents on the scene where tanks are located. you can see this committee is a start. we obviously have legislation moving through the west virginia state legislator that i'm happy to say one i'm part of helping small businesses get back on track who have been hurt by this. we'll be telling those stories.

one small business lost $40,000 in about a four day period and continues to spend $500 a day on bottled water. that's certainly not giving it back to the employees or workers at that restaurant or being able to hire new workers or grow your business. we have legislation that will have greater oversight of tanks and chemicals that are stored above ground. both on the state level and this piece of legislation we'll be talking about today at this hearing. >> natalie, west virginia secretary of state, thank you for joining me this morning. >> thank you carol. still to come on the "newsroo "newsroom," a pawn and huge fight. that's what the claims are called by alec's adopted daughter. what else he says next, next. ne. [ female announcer ] you know the little song he'll hum

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woody allen's attorney says new claims of sexual abuse are the actresses way of trying to hurt him. in the new york times over the weekend, dylan alleges the 78-year-old director molested her when she was seven years old. dylan is now 28. allen's attorney denied the claims once again in the interview on the today show. >> his reaction is one of overwhelming sadness because of what has happened to dylan. she was a pawn in a huge fight between him and mia ferrell years ago. the idea she was molested was implanted in her by her mother.

that memory is never going to go away. in my view, she's not lying. i think she truly believes this happened. that's the vice of this. when you implant the story in a fragile 7-year-old's mind, it stays there forever, never goes away. >> let's talk about that with legal analyst paul callan. welcome paul. >> nice being with you carol. >> it's a sad and fascinating tale. allen's attorney puts the blames of allegations on mia not on woody allen or dylan. if you were representing allen, how would you advise him? >> i think he is doing what he has to do as the lawyer in the case. i'll tell you why carol. the reason you have statutes of limitations because you want to investigate the cases when charges are first made. these were made against woody allen as i understand for the first time in 1992.

they were investigated by connecticut law enforcement officials for whatever reason, and i assume they took a good look at evidence decided it could not be prosecuted. might be no merit to the charge or no evidence. now it's many years later. to put somebody in the position to defend themselves. while it sounds like his lawyer is is blaming the victim, on the other hand if you're subject to a false allegation, that's extremely damaging to your reputation. so i can understand why you'd try to fight back. >> the other interesting thing his attorney said, in my view, dylan is not lying. she truly believes this happened. when you implant the story in a fragile 7-year-old's mind, it stays there forever. he's in in other words accusing mia of convincing dylan woody allen abused her as a child. have you heard of that in other cases? >> i have.

there was a series of lawsuits with fms, false memory syndrome. psychologists and psychiatrists going through therapy with patients were implanting memories of abuse and giving therapy to help people get over that. there was a lot written at the time you can actually create a false memory in a person, particularly a child, if you constantly repeat the story. obviously the mother would be in a similar position to a therapist in terms of the trust relationship and the kind of thing that a child could adopt a memory. i'm obviously not saying that happened here. there have been lawsuits which that fms which by the way is not an official disorder. it's called false memory syndrome, has been asserted. >> thanks for your incite. we appreciate it. >> you're welcome. the ownershpening bell on w

street about to open. the dow has lost more than 7% in the first five weeks of 2014. experts say this may be the beginning. the bell rang. you heard it there. we're going to talk to experts about what's happening on wall street. our chief business correspondent is in new york along with cnn global economic analyst and assisting editor of time magazine. welcome to all of you. >> hi carol. >> allison i want to start with you. there's a plus sign this morning. >> we're seeing a green arrow. that's nice to see. dow up 19 points. this is after a rocky night overnight in markets overseas. japan's nikkei plunged 4%. a lot of people are using the fancy word called correction. a correction is a 10% decline from recent highs.

some are saying that is where the markets are headed. here are levels for you to watch. s&p 500 sitting at 17.47. if we do it that 10%, the s&p 500 would go to 16.65. others say look, this is not a correction. we just got to use to markets doing really well last year. stocks were up 30%. s&p 500 jumped 30% last year. we got used to that every week we would sort of see the s&p 500 and the dow mike record highs. we're not seeing that this year. get ready for a lot more volatility this year. one trader telling me, look this is normal to see the pushes and pulls going on with the market that speed bumps are really what the market needs to avoid bubbles. one other trader i was talking with said, look you may not see a real correction for another few months. really, fasten you're seat belt for later in the year. >> if you're older and looking at your 401k, christine romans,

speed bumps are more. they're horrible, painful things to endure. >> they are. if you're older and looking at your 401k, you shouldn't be kplee completely in stocks. the closer you get, the more you should be scaling back. sure 401k it speed bumps. there were no speed bumps for two years. a lot of people say when you look with perspective, it needs to have the pause that refreshes. there are fundamental reasons investors are nervous here. most importantly you can't have a stock market that just goes straight up. it won't. i'm telling you right now it won't. the pull back here, the most important thing is do you come back and have a correction, the 10% pullback? we've only had four pullbacks in the past five years. only two were actually corrections. do you have a pullback here or

does it feed on itself and get to be really ugly? nobody has a crystal ball to tell you carol. >> i was looking back overtime. markets have dropped sharply in 2008, 2010 and 2012. we have seen this kind of thing before. >> absolutely. the fact is we've gotten use to much less volatility in the markets than is normal. we're going to see a lot more volatility as you heard earlier. there are things that have happened to cause traders to be nervous. manufacturing data for the u.s. is weaker than expected. china growth is slowing. there's concerns about a banking crisis there. there are real things going on. let's remember, one month of bad data is not enough to get nervo nervous. three months and you should worry about a real correction. >> we'll all step back from the ledge. thank you. i'm back in a minute. >> thank you. welcome back. how is everything?

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more this morning. good morning george. >> reporter: carol, good morning. there's the kidnapping, alleged theft of two vehicles, not to mention the escape from prison. fair to say in the last 24 hours it was a wild run of freedom from elliott that culminated here in a high speed chase that ended in a snow bank. a two state man hunt comes to an end overnight after authorities capture the escaped convict serving time for murder. authorities spotted michael david elliott during the traffic stop in la port county, indiana after he spent 24 hours on the run from a michigan prison. >> he ran over a couple sets of stop sticks our sergeants laid out. his tires were going flat. he lost control of the vehicle, came to an intersection and slid into the snow bank. he wasn't able to move further. >> reporter: sunday night prison guards discovered elliott missing from his cell.

it's unclear how he managed to escape. once outside, he pulled back the fencing of security barriers and crawled underneath. his escape took a dramatic turn when he abducted a woman forcing his way into her car and forced her to drive across to indiana. >> he has a hammer and box cutter. >> surveillance footage shows elliott on the run, inside a store paying for gas. while there, his hostage was able to lock herself in the restroom and make this desperate 911 call, her abductor lurking outside the door. >> yes. occupied. sorry. it's taking me longer than i thought. >> is that him? >> yes. >> he's knocking on the bath room door saying let's go. >> her employ worked. elliott left the woman and ditched her deep 20 miles away

in shipshewana, indiana. he was serving a conviction for killing four people. up until now, he was known as a good prisoner. >> reporter: so possession of stolen property to resisting law enforcement, felony charges, elliott will we main here in the jail in la port. authorities will speak to officials in michigan about where he'll serve the life sen ta tense. >> thanks so much. chris christie is stepping to the mic and denying involvement. >> the question is did i know anything about the plan to close these lanes? did i authorize it? know about it? approve it or have any knowledge of it beforehand? the answer is still the same.

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despite adamant denials of any involvement with bridge gate, chris christie seems to be feeling the impact of a scandal that caused ouster of his top allies. that's according to the poll that says christie is no longer the 2016 favorite among republicans. former arkansas governor mike huckabee has jumped to the head of the back followed by rand paul. chris christie is tied by jeb bush. some republican donors worried

about christie's troubles a rumored to look toward mitt romney as a possible alternative. the former candidate says that likely won't happen. >> my time on the stage is over guys. i'm happy for time i had. my time is over. >> but get this, if romney were to run, he holds the lead in the new hampshire republican primary with 25% of the vote. joining me now, cnn political analyst and editor in chief, on, political commentator and consultant alex and cnn political reporter, peter hamby. welcome gentleman. >> good morning carol. >> alex, mitt romney, seriously? >> no. not seriously. mitt romney right now is the best known republican candidate because he ran last time. the democratic field, hillary clinton is well developed.

people know hillary. within the democratic party, she's beloved. the republican candidates are the folks that didn't run last time, most of them. scott walker's, jeb bush's, chris christie's. our fruit is not as ripe as the democratic candidate. what does that mean? mitt romney is a parking lot. republican voters are in that parking lot now idling in their cars waiting until our candidates develop more. then they're probably going to go somewhere else. the republican party knows it can't go backwards. we've had enough losing elections. not because mitt romney was the losing candidate. we have to explain how our principles are a better way to grow an economy for example. going backwards is not what republicans are looking for. they'll get out of that parking lot. >> speaking of ripened fruit, but mark huckabee is ripened fruit. he's run before. >> yeah. no, he sure is.

you know, the endurance of mike huckab huckabee. he keeps coming back. it's because he appeals to so many elements. southern, fox news host. he can deliver a positive message. the fact he keeps coming back as being the perfect colors by number candidate is a sign how much the base wants that comfort. behind him is rand paul. that's a radically different vision. that's an interesting contrast to the top two folks in the cnn poll. >> carol, one thing i'll point out. if you do campaigns for a living, you'd rather be somebody other than mike huckabee. even though he's in the lead, that's not impressive. you'd rather be a lesser known candidate with more potential than frank li huckabee with less

potential. >> i wanted to touch on chris christie. he's not giving up dreams of becoming president, right peter? >> i don't think that's the case. there was a rush to judgment he was done in 2016 after these multiple controversies popped up in new jersey. there's really no indication from his team that they are giving up the 2016 hopes. christie is going to texas this week as chairman of the republican governors association to raise money for that committee in dallas and houston. he's going to illinois next week to raise money. he's coming to c pack, the conservative conference in d.c. in march. certainly have focus on near term and salvaging legislative agenda in new jersey this year and next. make no mistake, they still have 2016 in their sights. they're focused on what's now. >> the push for hillary clinton

is ramping up. we have former obama helping with strategy. the primary convention cannot come around one candidate now, john. >> what's happening with hillary clinton and the democratic party is totally historical. never has a party solidified this way around the non incumbe incumbent. the front runner, person that didn't win last time, for republicans, this war lord status is dramatically difference. there's a role reversalle between the two parties. >> john, peter, alex, thanks so much. i appreciate it. >> still to come in the "newsroom," can russia's room of steel be penetrated? a new threat is made against olympians this morning. it says here that a woman's sex drive

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is that going to deliver? most people think sochi itself could be saved. across southern russia, there's a huge area, volatility. people are slightly more anxious about what might follow in the weeks ahead there. >> i know president putin is in sochi. what's he doing? >> he went to the rehabilitation center. he opened there in 2009. there's one named thunder that got the president's attention in particular. state media says he knows many there as well. he's attending the assembly of the international olympic committee here. we're expecting to here him at .

united assembly. he is leading the russian state about reminding people of a former soviet union among which he was himself raised in the kjb. carol. nick paton walsh, reporting live from sochi, the next hour of "cnn newsroom" after a break. we asked people a question, how much money do you think you'll need when you retire? then we gave each person a ribbon to show how many years that amount might last.

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good morning. i'm carol costello. thanks so much for joining me. just minutes from now on the hill and under the microscope, lawmakers will grill the chief financial officer of target about one of the biggest security failures in retail history. as many as 110 million people may have had their personal information stolen in a massive

data breach. it's size and scope have ballooned since it was first revealed. joe johns, our senior washington correspondent, joins us with more. good morning, joe. >> reporter: good morning, carol wechlt are waiting for that hearing. john mulligan, the cfo of target, is going to be the man of the hour. we are able to take a look at his prepared remarks. they seem to add to the knowledge of what happened with the target breach that apparently occurred first right after thanksgiving. he will lay out a timeline we are told that says on december 12th, we were notified by the department of justice they had a problem. on the 13th, they met with the department of justice and the secret service. on the 14th, hired forensics experts. on the 15th, confirmed the breach and started to tell customers. on the 18th, found more malware at about 25 different registers. on the 19th, made the public

announcement and that's what brings us to this day when he testifies on capitol hill. why is that timeline so important? it is important for a couple reasons, most important because members of congress have been asking exactly why it was that it took so long for the customers to be notified. there is talk of more legislation to create a better system of notification for customers in the event something like this happens in the future. the other headline, i think, from capitol hill today, is once again, john mulligan, in an op ed in the hill newspaper here in washington, d.c., announcing he is accelerating a plan for chip-enabled smart cards. this is a technology that is widely used in the u.k. now, they have invested more money in trying to speed up the process where these chips, which essential will i encrypt information from people make it

harder for people to steal. we are expecting all that and much more in the coming hours, carol. >> going back to the testimony, joe, did you say the justice department made target aware that it had a breach. target didn't even know it had a breach. >> reporter: well, we'll wait to hear the testimony but according to what we see in the prepared testimony, it was the department of justice who notified target that they had a problem. >> wow. joe johns, can't wait for the update. i appreciate it. it's more than a half hour since the opening bell on wall street. do you know how your nest egg is doing. here is a live look at the big board as they hope for a bound from yesterday's big selloff. the dow closed down more than 300 points. adding an explanation point to what has already been a tough start to 2014. the dow lost more than 7% in the first five weeks of the new year. allison kosik is at the new york stock exchange. things are better today, right? >> a sigh of relief today, wall street trying to get its legs

back after the big selloff today. the energy on the floor is calm as stocks move ever so slightly higher. i have been talking with a lot of analysts, and a lot of traders trying to get their hands on what's happening and what's happening now. a lot of them are agreeing on the weak data on manufacturing that we got yesterday was a big concern. what they are watching for now is how that's going to factor in with other headlines we have gotten lately. listen to what one analyst told me this morning. >> we saw fairly weak job numbers and payroll numbers in december. the isn coming in below expectation caused fear that maybe it is not just a blip in one month of underperformance for the economy but could poe linksly be long lasting. >> we are going to get the best idea of whether that is continuing. we will get the job on friday. that's for the january numbers. the expectation is employers added 180,000 positions last

month. that report is going to be very telling. it is going to tell us whether december's lousy job numbers is a fluke or a trend. >> i don't have to tell you that this winter has been nothing short of miserable. get this, the northeast bracing for another paralyzing snowstorm that could bring as much as 30 inches of snow to some areas. the storm system is expected to stretch from the rockies all the way up to maine. take a look at what i ever drews in oklahoma city had to deal with earlier. a mix of snow and slush during the morning commute. it's just down right ugly in many parts of this country. chad myers is in new york to tell us more. good morning, chad. >> reporter: good morning, carol. it is an ice storm going on in arkansas. a snowstorm in kansas and parts of oklahoma. that storm now moving through into parts of missouri. it is a winter storm warning all the way to bar harbor, maine. all the way to massachusetts, farther north. first snow that we had with the last storm. the storm brought snow to new york city. this storm brings an ice storm

to new york city on top of the snow that we already have. but the snow is through syracuse into binghamton, burlington, vermont and all the way up into maine. that's where the snow is with this storm. there is an ice storm south of there. this always happens. there is always an ice event where it is probably 30 degrees on the surface, 35 aloft. 10,000 feet up it is warm. so it is going to rain down. down here, it is cold, about he low freezing. making sleet and freezing rain all night long. very difficult travel out of the northeast for tomorrow. there is the storm right now. there is the ice storm for arkansas. it moves very close to paducah, probably just north of you. finally, out to sea. this storm puts out a foot of snow. that's the easy snow. there is another one that could develop for sunday. if it develops like the models were saying overnight last night, there will be 2-3 feet of snow in some spots of new england. maybe new york, right now, it looks warm enough it will be

kind of a sloppy, slushy, rain/snow mix, not piling up very much. there will be places, either the adirondacks, the catskills or the poconos, somewhere will pile up an awful lot of snow. even if it only rains in new york city, the wind is going to blow 50. getting in and out of the city on monday is going to be very, very tough. >> good luck, chad. thanks so much, carol. i think. >> i know. >> let's talk about woody allen. he isn't just fighting back against renewed allegations he molested his adopted daughter dylan farrow two decades ago but is blaming it all on his former wife, mia farrow. >> speaking out the first time, the filmmakers lawyer told nbc news this morning that mia farrow somehow brain washed her young daughter believing the made-up story in a plot to hurt allen. >> i think she is not lying. i think she truly believes this happens. that's what the vice of this is. when you implant the story in a

fragile 7-year-old's mind, it stays there for ever. it never goes away. jean casarez is live in new york with more on this. i asked a question of paul callon last hour, whether that was possible. a lot of people tweeted me angry that i even asked that question. >> you mean about the false memory. i have covered so many cases where the defense is false memory, that a memory was implanted with what is not true. that's a question of fact that we now know will never go to a jury at this point. what's so interesting about what he said, the attorney representing woody allen this morning is that the state of mind of dylan farrow probably believes that it actually happened, no responsibility he places on dylan farrow at all. all of the responsibility, he places on mia farrow. let's listen to this morning on the "today" show. >> his reaction is one of overwhelming sadness, because of what has happened to dylan.

she was a pawn in a huge fight between him and mia farrow years ago. the idea she was molested was implanted in her by her mother. that memory is never going to go away. >> this all stems from a 1992 connecticut state police investigation. they then went to the yale new haven hospital, a rape kit examination was done on dylan farrow. there was no forensic evidence there had been molestation but forensic evidence can be very difficult to retrieve if there had been a shower or a time elapse. prosecutors then believed there may be probable cause to arrest but they could not prove beyond a reasonable doubt that a crime had occurred because of that lack of forensic evidence. charges were not brought. now, dylan farrow, of course, as we know, brought it up in an open letter in "the new york times." >> woody allen's lawyer says

they are not interested in suing for defamation but if the accusations keep coming, you have to wonder. >> that's an interesting aspect. woody allen is not going to sue for defamation, according to his lawyer but i wonder, after listening to the "today" show today, could mia farrow sue for defamation. her character was really defamed this morning. that would bring out everything, carol. then, you would have a civil suit. there would be depositions back and forth. this case would be reborn in a civil court. >> jean casarez, many thanks. we appreciate it. >> thank you. still to come in the news room, the seattle seahawks defense suffered the broncos super bowl. >> they say they were able to decode peyton manning's hand signals. we will get into that and much more after the break. mine was earned in korea in 1953.

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record ratings for the super bowl and a big blunder by peyton manning. he said he was not embarrassed by the lopsided loss but may be feeling sheepish after what richard sherman relieved. joe carter is here with a story of stolen signs. >> after the game, richard sherman was celebrating the win and he told a "sports illustrated" writer that they decoded some of peyton manning's hand signals. he is known as the quarterback that is trying to confuse defenses and be one step ahead by yelling out all kinds of awed i believes, omaha, carolina, fat man. he tries to keep the defense one

step behind. clearly, he had one of his worst games we have seen him have in a long time, two interceptions. denver only scored 8 points. seattle said they had a great advantage at some point because they were able to tell when peyton manning was giving a hand signal to awed i believe udible play call. he changes it to where he feels it will be most successful. sherman said the defense was able to call out some of the offensive plays to each other so they were able to jump routes and get to their guys before the ball got to their guys. i love the quote directly from sherman. he said, me, earl thomas, cam chancellor, we are not all three just pros, we are all three all-pro minds. he followed that by saying if peyton had thrown in double

moves, perhaps the seahawks defense could have been exposed. he is saying they gambled and went in on taking an educated guess on where the plays will go. >> they did that by studying the films. you wonder why peyton manning didn't change things up for the super bowl. >> sherman said during this interview it was only really in the first half. so maybe peyton in the offense made some adjustments. clearly, going into the halftime with a 22-point lead and percy h harven returning that kick t was an ugly super bowl for the broncos. peyton said it was offensive. it was kind of an embarrassment. interesting to think that in baseball, football players can decode signs. >> and 110 million people were watching. joe carter, thanks so much. still to come in the "newsroom," president obama vowing to push forward in what

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fresh off the state of the union speech, it seems president obama is getting a little tiny lip from american voters. a new cnnorc poll is out showing 45% now approve of the way the president is handling his job. that's up slightly from december. still, not that great. peter hamby joins me now.

the numbers are up a litt littl. the president is still having trouble selling miss his policies to the public. >> some other troubling trends are that most americans want to see the president's policies succeed. that number is down over the years cnn has pressured this number every year. it is at his lowest point of the presidency, the number of americans that want to see his policies succeed. most americans didn't watch the state of the union address the other night. they probably didn't care. two reasons here. that event has been an overrated event. a lot of americans are probably increasingly looking forward. they see the stagnant nature of policy-making in washington. they aren't really confident he can get many things done. look at how 2014 democratic candidates are reacting to the president. they don't want him in their states, specially if you are a red state democrat, like mark

pryor in arkansas, mark vagich in alaska say they are not comfortable with obama coming to campaign for them. keep watching the 2010 rating. it tracked pretty closely to how democratic candidates did. if he is 45%, the democratic candidate could be getting the same share, 45%. they are probably not going to do pretty well on election day. >> cnn asked democrats about their choice for the next president. hillary clinton is the clear favorite. i know you have spent a lot of time talking to people on the ground in iowa and across the country. what's your take? >> this is one more indication she is the unabashed front-runner. she is more inevitable than she was in 2008. this makes it harder for other democrats that are possibly

considering running for that spot. it makes it harder to get donors to commit and get rank and file voters on the same page. paradoxically, these numbers make it harder for her in some ways. she has to work for it. she can't have this nomination handed to her on a silver plat ter. talk to any early state democrat. particularly those in iowa and new hampshire. they love to be courted. they want the candidates to come to their back yards and shake their hands. the clinton people understand this. there is an air of inehe have vt ability here. you don't see a lot of names of people that could beat her. >> that's a true story. thanks for your insight. we appreciate it. still to come, facebook is blowing out the candles today. the social media site that

changed the way we communicate is celebrating ten years. lorie segal is in san francisco. good morning. >> reporter: hey, carol. it is hard to believe facebook has been around for a decade. i actually spent the day at facebook in menlo park yesterday. i spoke with v.p. of product, chris coston. you are going to want to hear his war stories coming up after the break. in 1953. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection. and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve. life's an adventure and it always has been. but your erectile dysfunction -

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good morning. i'm carol costello. thanks so much for joining me. it's been about an hour since the opening bell rang on wall street. here is a live look at the big board. investors are hoping for a bounce from yesterday's big drop, up more than 300 points. so far this morning, as you can see, stocks are rising just a bit. let's check in with alison kosik at the new york stock exchange. good morning. >> the negative is that many think we are still actually in a downturn. stocks are trying to claw their way back today. we are seeing the dow up 36 points today, much better than yesterday. you know, wall street is really just taking a breath. this is, by no means, not panic. it is normal to see this push and pull after the market makes a huge 300-point drop. i'll tell you what, it has really been a tough year so far. corporations have been issuing weak forecasts about what the road ahead is going to look

like. december's job numbers were weak. manufacturing is weak. you have the fed pulling its stimulus money, what many feel a support system out of the economy, which has been supporting the market. you have a lot of things changing, carol. stocks are playing catchup. carol? >> alison kosik reporting live from the new york stock exchange. it is hard to believe we have been poking and friending and tagging for a decade. facebook turns ten years old. from evolving news feeds to changing the way users use photos, the site is a long ways from how it was in 2004. face lack launched a new app called paper which allows viewers to view their news feed in a digital app. mark zuckerberg says the possibilities are endless. >> we have just gone through a number of periods where people just didn't believe that we could succeed at what we were trying to do. i have spent a lot of late nights pacing around in my living room trying to plot out what our next move it be to keep

pushing forward on this mission. there is always a next move. >> joining us from san francisco, cnn tech correspondent, lorie segal. how is the birthday celebration going? >> reporter: i was at menlo park yesterday. i spent the day with chris, the vp of product. he is a visionary when it comes to product e is behind many of the features. he gave me some insight into what was the rocky road of being a scrappy start up in a huge company and what we can expect in the future. check it out, carol. >> the big question was, is this something that could work outside of college? everybody said, no, it is probably not going to work outside of college. >> reporter: in honor of facebook's ten-year anniversary, we decided to take a walk down memory lane. do you have some stories where you can't believe you got through it? >> the news feed launch was pretty crazy. i spent with a bunch of people we worked really hard on making

news feed. it took us almost a year to build. with he were pretty naive. obviously, people were like, whoa, this is a lot of change. there was a protest organizing outside. we had to go out the back entrance. it was one of those things i look back on and it is hard to believe. >> reporter: since then, there have been a lot of landmarks that are hard to believe. 6 billion likes per day. 7.8 trillion messages sent using facebook and 1.2 billion monthly active users. a far cry from the early days. >> no chairs, no tables. they had to find a bean bag chair and the kid interviewing me who is now a good friend, he had bare feet on. i was like, what am i getting myself into? >> reporter: over the past 10 years, facebook moved from this small office to here and here and now to this sprawling campus here in menlo park. when we talk about the future of facebook, the word we keep

hearing is mobile. when did you guys know mobile was going to be so big. what does the future look like when it comes to mobile on facebook? >> it really happened a couple of years ago. we sort of instituted all of these rules in the company. whenever we show our products to each other, we need to start with the mobile version. >> the future of facebook might look a little different. alongside the traditional app, you might start seeing a variety of apps created by the company. >> we have facebook, instagram messenger. we just announced paper which is a more emer sieve way of looking at your news feed. >> it cure rates your news feed based on your interest. a challenge will be continuing to grow at such a rapid pace. they are starting to saturate the internet-connected world. >> when you look out over the next three years, there are going to be a lot more people with their first computer and phone and access to the internet. one of the things we are really excited about is making the access to the internet generally a lot more affordable. >> it will be a challenge.

the company now competes with an onslaught of apps like snap chat and twitter. >> what do you look for? >> i think it is the next billion. >> reporter: that's not going to be an easy one, carol but they are vested in doing it. i also spoke to chris about artificial intelligence. there is a small group at facebook working on artificial intelligence and making the technology even smarter. facebook getting to know you even better. chris, they have a lot of interesting data this he are exploring. that will be interesting in the future. i also asked him, i said, i love that asking entrepreneurs this. what keeps you up at night? really, it is trying to maintain what makes facebook so successful, which was this move fast and break things and they have divided some of the groups into smaller groups where they are building out different mobile apps and they are trying to maintain that ethos. they have over 6,000 employees and they are a publicly traded company checking our top stories at

32 minutes past the hour. bill gates stepping down at microsoft's chairman after 33 years. the world's second richest man will be taking on a new role as tech adviser in the company he helped found in 1975. microsoft is now the world's largest software company. it's board of director, satya nadella, the new company ceo. alfred bright was missing for three weeks before his family found his mutilated body after investigators gave up searching for him. his death was ruled an accident from drug use. wri his relatives say they never saw him use drugs after philip see more

hoffmann withdrew money. they are tracing his final hours by using phone records, credit cards and his atm transactions. they want to know where he was and who he was with before he died of an apparent drug overdose. >> the republican national committee is doing something it has never done before. it is making its first add to celebrate the accomplishments of black republicans in honor of black history month, february. today, in washington, the rnc will honor people like condoleezza rice and tim scott. join meeg joining me now is the co-host. you may remember for his role martin kendall on the cosby show. >> you don't look very much different. it is amazing. >> thanks to my wife and kids. although they keep me young. the hair is a bit different. >> we all have our crosses to bear as we age.

you wanted us to identify you as a conservative actor. why? >> well, as you well know, every republican is not a conservative. the other thing is, i'm not a spokesperson for the republican party which is something else all together. i am a conservative. >> i know republicans are reaching out to the african-american community. every time the rnc takes two steps forward it is one back. they sent out an unfortunate tweet saying, today, we remember rosa park's bold stand and her role in ending racism. many accused the rnc of saying racism was over. they clarified the tweet. it is just one example of how they say the republican party tries to reach out to black america but doesn't have a clue. do you think it is the message or the messenger? >> well, no. our message, the message of

conservatives and the republican party, that of freedom, economic freedom, political freedom, religious freedom, civil freedom, i think, is the right message. it is a message that resonates with people in all communities. personally, i think that that tweet and the whole hubbub surrounding that was much to do about nothing. it points to the fact that the republican party has had a problem reaching out. i happen to be one of those who has been a big critic. i think that you might say the republican party has been borrowing from the denver broncos playbook and has had about as much success. so i've been a critic and a skeptic. what the republican party is doing now is a bit different. they have actually put dollars behind the initiative here. i came out. i said, well, let me see what's going on. we have heard about republican engagement in the past. as you point out, sometimes it

hasn't really been all that it has been made out to be. so i wanted to come out and i wanted to see. >> when you make a gaffe like someone made in that tweet, it went everywhere. >> well, carol, i don't want to spend too much time on this but what was really the issue with the tweet. they honored rosa parks. they didn't say anything bad about rosa parks. the woman had a key role in the civil rights movement. of course, no one is implying by that that racism is over. i think that what happens sometimes is that the left and those in the media, they pick at things. the republican party leaves itself open, quite frankly, sometimes to that. that's a different conversation from what's happening today which is the republican party is honoring past black republican trailblazers looking forward to the future. actually, buying ads now.

reaching out into the community, not just during election cycles, not just during an election year but trying to establish relationships year-round, actually becoming active in the community. those things are new and they are different and i think that's far more worth our time and conversation than picking apart a tweet that was actually celebrating an american hero. >> you have a long way to go, because you will remember, tim scott, the only sitting african-american senator was not invited to speak at the mlk anniversary. scott is a republican. he has been called an uncle tom by some black civic leaders. they say he doesn't believe in civil rights. do you feel shunned by your community in choosing to be a republican? >> well, carol, i would ask, really, who has the problem? the naacp, ben jealous, black

republicans or tim scott. who is open-minded and who is closed-minded? who is reaching out and who is closing doors? i think that based on the little bit you said, i think the answer is obvious. it is not black republicans. >> on the other hand, during that same mlk event, republican leaders, like speenspeaker boeh eric cantor were invited but chose not to extend. somebody has to extend the olive branch. should it be you or them? >> i'm not a spokesperson for any of those people. i'm not a spokesperson for the republican party. i believe, quite sincerely that republicans have extended the olive branch only to be rebuffed. i would also suggest that just peering at the naacp is not a true measure of one's involvement in the black community. actually being grass roots,

hands-on, engaging in people at the community level is far more significant than whether you show up at an event by an organization that quite frankly is outdated, perhaps, certainly not on message or attending to the actual needs of the black community and is no you a political arm of the democratic party. i think that what is happening now is far more significant than whether or not you show up at the naacp and deliver a speech, a political speech in i saing what? >> i understand. joseph phillips, thank you so much for being with me. i appreciate it. we'll be right back. >> thank you. when you order the works you want everything. an expert ford technician knows your car's health depends on a full, complete checkup. the works. because when it comes to feeling safe behind the wheel, going the distance

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in our american journey, an

extraordinary story about race and education. in a remarkable documentary called american promise, two young boys growing up while the cameras roll documenting how they navigate a school where blending in is virtually impossible. >> reporter: it is 1999. both boys just five years oath, both excited to start kindergarten. they have been selected to attend the dalton school, a private school, a school i went to at a child. their parents, michelle and joe, decided to document the boys academic journey. as a result, we get to know these boys and their families in

a truly end matt way over the next 12 years of their lives. >> dalton will open doors for him for the rest of his life. >> reporter: that's the hope for both families. in time, the boys find themselves struggling, not only with typical growing pains but with issues of race, class, and gender. >> they have decided that our son is a problem. he is not a problem at home. he is not a problem in the community. he is a problem at dalton. the question is, what is it about edris that makes him disruptive? >> they always have this thing where people have to dance with the girls, this one part. i don't want to dance with girls i didn't like that part, because i don't get to dance with the girls. >> they usually say no. i don't know why. they just say no, which makes me feel bad. >> reporter: a quality education is a priority for both families but at what cost.

>> there is a cultural disconnect between independent schools and african-american boys. we see a high rate of kids not being successful, the boys not being successful. the question is, why? >> reporter: the boys part ways at high school. with shaon leaving dalton for a predominantly african-american school. their journey doesn't end there. this film offers an inside look into two families of color, the everyday challenges and choices they face, all questions raised aren't answered but the door for critical discussions for all of us is left wide open. anderson cooper, cnn, new york. i'm beth... and i'm michelle. and we own the paper cottage. it's a stationery and gifts store. anything we purchase for the paper cottage goes on our ink card. so you can manage your business expenses and access them online instantly with the game changing app from ink. we didn't get into business to spend time managing receipts,

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a surprising revelation from new jersey governor, chris christie. he admitted his office has been subpoenaed by the justice department. that justice department, the u.s. justice department, headed by eric holder. as you know, christie is accused of causing a huge traffic jam on the george washington bridge in an act of political retaliation and withholding hurricane sandy funds from the mayor of hoboken. he appeared on a new jersey radio station and doubled down on his claims that all of that was done without his knowledge or approval. >> the fact of the matter is, i've been very clear about this. before these lanes were closed, i knew nothing about it. i didn't plan it.

i didn't authorize it. i didn't approve it. i knew nothing about it. >> john rightmyer is the state house reporter. he joins me from new york. good morning, john. >> good morning. >> the governor appeared on that radio show. how did callers then accept his appearance. >> i think that's a good question. some of the calls were actually not even about the george washington bridge controversy. he took calls on some votee matters and other ancillary issues. he was asked pointed questions about the bridge controversy. he seemed to answer them directly. he was telling them the key issue is that he didn't know beforehand. >> two of his former allies are taking the fifth, david wildstein and bridget anne

kelly. he says he wants people involved to share information but understands their rights. what does bridget kelly's decision say to you? >> that's very interesting. she was a close aid to the governor. she is saying her testimony and providing documents would potentially put her in a situation of self-incrimination. so that's somebody who is very close to the governor. we also know that david wildstein already has pleaded the fifth and hasn't provided any information. those are the two key figures. bridget kelly sent the e-mail that said, time for some traffic problems in fort lee and david wild stein received it and said, got it. those are the two key figures. the governor has been framing this as the port authority or david wildstein's scheme. it is bridget kelly who sent that e-mail saying, time for some traffic problems. >> she could be charged criminally. the governor was asked about that and he gave kind of an interesting answer. a nonanswer, i should say.

>> well, that's been one of the key things. if you talk to people in new jersey about this, is when the governor fired bridget kelly, he didn't first ask her what she knew about this, why did you send that e-mail, some questions that a lot of people in new jersey have. i think that's one of the lingering questions here. the governor has said he wants to get to the bottom of this. there is an internal investigation. yet, chris christie is a former u.s. attorney and apparently, he didn't ask one of the key figures in this matter about her role. >> john r eitmeyer with the bergen record. thanks so much for being with me this morning. >> you're welcome. ♪ [ male announcer ] you're watching one of the biggest financial services companies in the country at work. hey. thanks for coming over. hey. [ male announcer ] how did it come to be? yours? ah. not anymore. it's a very short story. come on in. [ male announcer ] by meeting you more than halfway.

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the seahawks and the broncos weren't grabbing all the attention on sunday. some of our furry friends got in on the action as well complete with a halftime show. here is jeanne moos.

>> quick, name the mvp, not of the super bowl but the mvp of the puppy bowl. >> he breaks for the sideline, crosses the 40, the 30, the 20. >> reporter: touchdown. he scored four touchdowns but who is counting. not the pups. the 66 pups reminded us of the denver broncos. except for when the dog scored. >> he is in, touchdown. >> reporter: even the broncos didn't plop down and quit. it was one of the games. there was hallmark kitten's bowl where kitties had names like tom cat brady and feline manning and we can't forget the fish bowl. four hours of watching a goldfish mope around a poll -- pole, joined occasionally by a

guest fish. it was the puppy bowl that most mirrored the big game. the puppy bowl even featured a little trash talk. . instead of bruno mars, the halftime show featured the keyboard cat. this updated version was playing a bruno mars song. bruno's impressive footwork put the pups to shame when one kicked the ball over the goal line. all of the dogs come from shelters and all but two have been adopted. >> he is at the 30, the 20, the 10. he scores again. congratulations. you are our puppy bowl champ mvp. >> reporter: how did former jets quarterback, joe namath, get mixed up in the puppy bowl. it was the fur he wore and the

super bowl coin toss. broadway joe was compared to ron burgundy, the ikea monkey. one of the more often repeated tweets was that joe namath's coat was made from the losers of the puppy bowl. talk about a personal foul. jeanne moos, cnn, new york. >> that's terrible. thank you so much for joining me today. i'm carol costello. "legal view" with ashleigh banfield starts now. so was she molested by woody allen or was she brain washed by mia farrow? or was it something else entirely. is that couple's adopted daughter, her detailed account of a sexual assault a made-up memory or a bonafide rape? purposely, was that memory planted in the mind of a 7-year-old. the filmmaker's lawyer is making

his case. our experts are going to weigh in. also, what happened in the final hours before philip seymour hoffman was found dead with a needle sticking out of his arm. why were there six atm withdrawals, one after the other, totalling $1200. who were the two men with him wearing messenger bags at the time. a former teacher is under arrest accused of befriending and assaulting girls in their middle school class facing 16 counts of child sex abuse. but is it possible that a youtube video could be enough to convict? hello, everyone. i'm ashleigh banfield. it is tuesday, february 4th. welcome to "legal view." let's start with woody allen. his lawyer said that he has a logical explanation for the sex abuse claims that are coming from his adopted daughter, dylan. he says his ex, mia farrow, brain washed her, planting false memories in the mind of her when she was