making news in america this morning -- >> what recovery? new signs say the economy is slipping again. so, is it new recession? and coast-to-coa raging forest infernos, midwest floods and tallying the toll from rare tornadoes. and what a comeback. dallas comes roaring back for a spectacular finish at the nba finals. good morning. economists are now bracing for a new shock. we are just hours away from another bleak update on the state of the economy. >> when the may jobs report is released later this morning, it could show fewer than 100,000

jobs created last month. that's a drop-off from earlier this year. >> could it be the dreaded double-dip recession that many people talked about? john hendren is now live in washington with insight on this, and big news on chrysler's recovery today. good morning, john. >> reporter: good morning, peggy and daniel. it is a good morning for chrysler. for them, the news is good. after a government investment and a buyout by fiat, it's once again rolling on solid ground. as you mentioned, for the overall economy, not so much. president obama is coming to chrysler with a message that can be summed up in three words. the bailout worked. the automaker has paid back billions in government loans years ahead of schedule. the u.s. treasury says it's selling the final stake in chrysler, now owned by fiat. >> we talk about how wonderful ohio is. how wonderful toledo is. how wonderful the corporation is. how wonderful it is to pay back this money. and how we're going to create more jobs. >> reporter: it's perhaps no

coincidence that the announcement is being made in ohio, a key election battleground. >> he needs to pay attention to this part of the country because no president wins without ohio. >> reporter: the president boasts as a new dawn for chrysler, there are gathering storm clouds on the economic horizon. gas prices are up, along with the jobless rate. home prices are down, along with consumer confidence. >> the economic data flow has turned more negative. that's largely due to the surge in oil and food prices. declining house prices. and of course, the ill effects of the japanese quake on our manufacturing sector. >> reporter: 25% of homes are now under water. >> now, i'm a single mom with kids. i don't want them to lose the house. >> reporter: the president's political rivals say what he's doing isn't working. >> when he took office, the economy was in recession. and he made it worse. >> reporter: those complaints are only likely to grow louder as the 2012 campaign heats up. moody's investors service just issued a new warning, saying it

may downgrade america's credit, unless the president and congress agree to raise the nation's debt limit. that would make borrowing money to run the government more expensive than ever. daniel and peggy? >> john hendren in washington this morning. thank you. today's jobs report will add to the campaign rhetoric you heard in john's story. mitt romney officially entered the race for president yesterday. and he's making the economy the center of his pitch. here's john berman. >> reporter: it's uncertain what was in the chili mitt romney served out. but his campaign's recipe has just two ingredients. >> jobs, economy. losing their jobs. economy. job creation. >> reporter: unemployment is still over 8%. and according to mitt romney, that's the president's fault. will you have a jobs program, day one? >> absolutely. the first thing i will do as president of the united states, if i'm lucky enough to get that job, is return america to being the number one place in the world for creating jobs. i know how to do that. it's what i spent my life doing. >> reporter: his record includes turning around the 2002 olympics. and years as a ceo, helping to buy and build companies.

though, he did oversee layoffs, too. still, jobs are what he wants to discuss. not so much health care. but sarah palin was happy to do that, as her bus rolled into new hampshire, just hours after romney's announcement. >> he'll have maybe a bit more of a challenge with the independents who make up the tea party movement. >> reporter: what do you make of her visit here? do you think she's trying to step on your toes? >> oh, no. she's a person of great energy and passion. she does a great job for our party. >> reporter: romney, who was runner-up here in 2008, is trying to do things differently this time. smaller staff. smaller production. the new two-color t-shirts are $5 cheaper than last time. he even looks different. no more buttoned-up businessman. john berman, abc news, stratham, new hampshire. and a story that we'll be covering closely today. the two-year investigation of john edwards appears headed towards the conclusion within hours.

prosecutors are prepared to file charges today. but edwards' attorneys are still in discussions for a plea deal. it isn't clear whether edwards will be indicted or agree to a negotiated charge. at issue, is whether edwards spent presidential campaign money to keep his mistress in hiding. a felony plea could strip him of his law license. chris christie has repaid $2,100 for using state police helicopters. christie didn't apologize yesterday for flying in the choppers to a couple of his son's baseball games. he says he paid the money to end the controversy that had become a distraction. this could become one of the deadliest years for tornadoes. so far, 5 2 people have died, the worst since 1950. that includes the three people killed as twisters tore through western massachusetts. police and national guard are have been doing door-to-door to check for any other survivors. tens of thousands of people are still without power. downpours have forced the evacuations of hundreds of people in low-lying areas. up to ten inches of rain came

down in some towns, triggering flash flooding along an overflowing creek. and already raised the swollen kansas river. in the dakotas, thousands are leaving their homes near the rising missouri river. and a third natural disaster this morning. wildfires in parts of eastern and southern arizona. about 1,200 people were ordered out 1 vacation area. now, the mandatory evacuations are also in place for two other communities. so far, the flames have scorched 125,000 acres. >> quite a mess there. so, just what will the weather be like in these areas we just talked about today? well, a beautiful day in new england. still hot and dry across arizona. and more rain in kansas, as severe storms stretch from the upper midwest to the texas panhandle. rain in northern california. showers and thunderstorms around atlanta, montgomery, and charleston, south carolina. scorching heat from texas to tennessee. >> and we're looking at dallas getting up to 97. new orleans, 91. atlanta, 96. 70s in new york and boston. minneapolis, omaha and kansas city hover around the 90-degree mark.

near 70 degrees in seattle. 64 in salt lake city. coming up, the deadly e. coli outbreak in europe has now sickened people here in the u.s. and the new details of jaycee dugard's 18-year kidnapping nightmare, including the day she was tasered and taken away. and the nation's new superspeller. her incredible preparation to become the champ.

overseas markets are holding

steady, while they await the new u.s. job numbers this morning. tokyo's nikkei average fell almost 63 points today. hong kong's hang seng was down 183. and in london, the ftse opened slightly higher. on wall street, the dow fell . 41. 1/2 points. the nasdaq index was up four. when the deal is approved, the bailout will have cost taxpayers $1.3 billion. but treasury secretary, timothy geithner, said the administration made the right choice. a new york prosecutor has subpoenaed goldman sachs. the investment bank bet that the mortgage market would collapse. yet selled bundles of bad mortgages to its clients. goldman denies the allegations. people who traveled to germany have been tes for e. coli. researchers are unable to pinpoint the food responsible.

but they suspect cucumbers, lettuce and tomatoes. groupon wants to offer its biggest deal yet. the company wants to go public. but groupon has been wracking up big losses. and google and facebook are getting ready to enter the online coupon business. >> that would be a good stock to get maybe. coming up next, the jellyfish threat that could last for a year. and whoever said the heat would sweep the mavs? they never asked the mavericks. stunning finish in game two. and the man that picked up a hitchhiker that turned out to be none other than bono. i found out that connected to our muscles are nerves that send messages through the body. my doctor diagnosed it as fibromyalgia -- thought to be the result of overactive nerves that cause chronic, widespread pain. lyrica is believed to calm these nerves. i learned lyrica can provide

significant relief from fibromyalgia pain. and less pain means i can feel better and do more of what i love. [ female announcer ] lyrica is not for everyone. lyrica may cause serious allergic reactions or suicidal thoughts or actions. tell your doctor right away if you have these, new or worsening depression, or unusual changes in mood or behavior, or any swelling or affected breathing or skin, or changes in eyesight, including blurry vision, or muscle pain with fever or tired feeling. common side effects are dizziness, sleepiness, weight gain and swelling of hands, legs and feet. don't drink alcohol while taking lyrica. don't drive or use machinery until you know how lyrica affects you. i found answers about fibromyalgia. then i found lyrica. ask your doctor about lyrica today. and my dog bailey and ica. love to hang out in the kitchen.

you love the aroma of beef tenderloin, don't you? you inspired a very special dog food. [ female announcer ] chef michael's canine creations. chef inspired. dog desired. invasion of jellyfish along florida's atlantic coast could last for an entire year. thousands of jellyfish have swarmed cocoa beach since last week, stinging at least 1,800

people. some people are blaming it on a population boom from the gulf of mexico. now, taking a look at your morning road conditions. slippery highways in the upper midwest and plains, especially along i-94 and the northern end of i-35 in minnesota. parts of i-70 in kansas. rain on northern california. >> if you're flying, airport delays are possible in san francisco, minneapolis and atlanta. and turning, now, to the stiff sentences for the northern california couple who kidnapped jaycee dugard and then terrorized her for 18 years. >> dugard was not in court to hear her captors' fate. but she heard a message read by her mother. here's annette miranda. >> reporter: phillip and nancy garrido looked down when jaycee dugard's mother, terry, shook like a leaf and cried as he read emotional statements from her daughter and herself. for the portions directed of

phillip, jaycee said she hated every second of every day in captivity. >> he feels remorseful and bad about, you know, what he did. and that was the reason why he pled guilty. >> reporter: the judge gave the serial sex offender 431 years to life in prison. telling phillip, he reinvented slavery and had no soul. nancy garrido got 36 years to life, which means she could be eligible for parole in her 80s. during the sentencing, new details emerged about dugard's kidnapping. the judge said the garridos had gone shopping for a young girl, when they snatched the 11-year-old off the street. phillip used a taser to subdue her. they held her in their antioch backyard compound for 18 years. y then, phillip fathered two daughters with his victim. katie callaway hall is a previous victim of phillip

garrido. she says she's glad he's going to spend the rest of his life in prison. >> i would like him to know i hope he rots in hell. according to newly-released grand jury testimony, dugard said right after she was abducted, she heard phillip garrido laughing saying, i can't believe we got away with it. casey anthony may never take the stand. but yesterday, the jury got an earful of the woman accused of killing her daughter. anthony insisted she was not lying when she said a babysitter kidnapped caylee. it's been a reunion between mark kelly and his wife, congresswoman, gabrielle giffords. it had been 18 days since they had last been together. right before "endeavour's" may 16th launch. they met at giffords' rehab hospital, where she is

recovering from a gunshot wound. dallas mavericks star, dirk nowitzki said, that was big. will selva shows us the reason for that understated reaction. >> good morning. the dallas mavericks came with a sense of purpose to miami. and they were determined to even up their series. dwyane wade and company had other ideas. they're 9-0 at home in postseason. chris bosh with a big follow there. under a minute to go. now, heat up a dozen. chalmers to wade. 3 of his 36 points. heat up 15, after a 13-0 run. but the mavs would not go away. jason kidd. it might be good to get a hand in his face. that's down six. jason terry. dirk nowitzki, he does his thing. part of a 17-2 run. lebron misses the three. loose ball goes to the mavs. shawn marion, in transition.

and the matrix finds dirk. using the left-hand banged up. ties it up at 9-9. the fans go crazy. next possession. who are you going to give it to? everybody knows. the heat knew it. dirk, bottom. mavs up by three. now, heat possession. on the inbounds pass. lebron to chalmers, buries the big shot there. 24.5 seconds to go. dirk, 24 and 11 from him, as the mavs come back to win, 95-93. and that will do it for this espn news update. i'm will selva. >> a great game. >> going to be a good series. from one great game to another of sorts. the final round of the scripps national spelling bee was the longest ever. they battled past their bedtimes late last night live on espn. >> the final few included an

11-year-old, a boy who started spelling before he turned 2. and a three-time canadian champ. then, a final word. >> cymotrichous. c-y-m-o-t-r-i-c-h-o-u-s. >> interesting how she writes the words out on her hand. >> probably a good tactic. >> 14-year-old from scranton, p.a. to prepare, she went through the dictionary twice from start to finish. >> that word would have done me in. i'm pretty sure. >> and the short words can be tough, too. >> they can trick you.

very impressive. congratulations. nhl player, gilbert brule and his girlfriend picked up bono hitchhiking. the u2 frontman had gotten caught in the rain. >> bono offered brule and his girlfriend backstage passes for the u2 concert on wednesday night. >> how cool is that. picking up bono as a hitchhiker. coming up next, the nfl lockout. will it affect training camp? and where you can get a free doughnut on that national doughnut day. >> we've had many. at bayer, we've been relieving pain for over 100 years. and today, we're re-inventing aspirin for pain relief. with new extra-strength bayer advanced aspirin.

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advair helps prevent symptoms. and my dog bailey and i love to hang out in the kitchen. you love the aroma of beef tenderloin, don't you? you inspired a very special dog food. [ female announcer ] chef michael's canine creations. chef inspired. dog desired. and now, a look ahead at the stories that we'll be watching this friday. not expecting good news from today's unemployment report. analysts said hiring slowed last month. president obama visits a chrysler plant in ohio today, where he will discuss a turnaround in the auto industry. the u.s. treasury secretary says it's selling on its remaining stake in chrysler. john edwards is expected to be indicted or agree to a plea deal today, after a two-year government investigation. edwards is accused of using campaign funds to cover up his

extramarital affair. lawmakers may vote today to put restrictions on the u.s. role in libya. they're demanding that the president gives them a compelling rationale. the nfl and players union are due in court today. they will hear whether the league lockout can tonight. training camp would open in seven weeks. there's no sign that will happen on time. today is national doughnut day, established by the salvation army in 1938. homer simpson is happy. you can get a free doughnut today at krispy kreme and dunkin' donuts. coming up later on "good morning america," a frightening, new drug that is sweeping through high schools. also, it's sold in malls with innocent-sounding names. brian ross explains the powerful effects. for some of you, your local news is next. >> for everybody else, the

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up next on abc7 news at 4:30 a.m. -- >> love the job. he lived for that. >> the highly feared phenomenon that killed a veteran bay area firefighter and has another fighting for his life. and the newly released grand jury transcript with the biggest mysteries surrounding the kidnapping and two-decade kidnapping of jaycee dugard. mike has a look at the forecast. >> quiet thi and finally this morning, controversial steps. giving a paralyzed man new hope that he will one day walk again.

>> the young man from alabama is the first in the country to receive a embryonic stem cell implant. more, now, from steve osunsami. >> reporter: it was the dream of christopher reeve, who fought so hard for stem cell therapy, but never lived to receive it. today, t.j. atkinson is living that dream. runhe used to run l. and then, he was in a devastating car accident. >> from the waist down, paralyzed. when i got to the hospital, they said i would never walk again. >> reporter: t.j. was still accepting the news when doctors told him he'd be a great candidate. he was newly injured, just days before. his body strong. his will even stronger. t.j. agreed to be a laboratory of hope. the first human with a spinal cord injury to test human embryonic stem cells. doctors opened his wound. and researchers guided a needle

with the cells that they hope will develop into new nerve cells. in the laboratory, they've used embryonic stem cells to repair the broken spinal cords of small animals that walked again. the stem cells have the potential to produce unlimited quantities of any type of cells. t.j.'s mother says she knows people oppose the research on religious grounds. >> i don't think think should judge anybody. >> reporter: t.j.'s role was only to prove the procedure is safe. but he believes it's already working. it's now six months after the procedure. and he says he can feel a sense of weight when he places heavy items in his lap. he's holding out hope that one day, once again, he'll run like the wind. steve osunsami. >> we wish the best for him, as