saturday and clouds rolling in sunday and rain back for monday and tuesday. >> hope to see you at 6 ong. on our broadcast tonight, taking a dive. wall street way down, in its worst day of the year. wiping out months of gains as concerns mount that the days of cheap borrowing are coming to an end. james gandolfini, dead at 51 years of age. tonight the sudden loss of a big american original who set the bar for character portrayals. fuelling the fires now exploding across half a dozen states. new evacuations and a desperate need for water with no end in sight. and a remarkable moment. a young boy hears his father's voice for the first time. tonight the medical breakthrough to the web video being forwarded around the world. nightly news begins now.

good evening, this was the worst day of the year on wall street, and unlike other dips and dives in the stock market, the reason for what happened today was pretty clear. it was the nation's top money man, the chairman of the federal reserve who just yesterday gave a mostly positive review of the economy, but also in there was a warning that cheap borrowing may be coming to an end. that was the backdrop. and today the people who buy and sell stocks for a living chose to sell. and the numbers went down in a moment. we'll talk about how a lot of homeowners are watching this closely. first, however, let's go to where the damage was done. maria bartiromo on the floor of the stock exchange in new york. good evening. >> good evening to you. at this point everybody has gone home at the new york stock exchange. but it was quite the scene today as the market was plummeting. and today's 350-point sell-off comes on top of yesterday's 200-point sell-off as the

federal reserve suggested the winding down of the stimulus may very well happen beginning at the end of this year. so why is that such a bad thing? basically, people are focusing on the fact that once the stimulus goes away, interest rates will begin to creep up, and that will take money out of the stock market and into fixed income, into bonds. why would i keep my money in the stock market, which is riskier as opposed to putting it in the bond market, which is safer. that is the thinking. i don't think interest rates will skyrocket out of control and we're down about 5%. 4.8% from the all-time highs in the market, reached in may. every time we've seen a sell-off of 5%, a lot of people expecting a correction of 5%. each time we've seen that, that selling has been met by buyers, they call it the so-called buy on the dip mentality. i suspect we'll see a buy on the dip mentality once again, but it's unclear if that happens tomorrow or later. it looks like we'll be into choppy waters for the next couple of weeks, brian.

>> okay, where the damage happened today, maria, thanks. any time the market does anything dramatic, and what happens on wall street and what happens on wall street has an effect on everything from retirement accounts to mortgage rates. after years of record lows, this prospect that borrowing might get more expensive has a lot of people watching and on edge. we get that part of the story tonight from nbc's tom costello. >> reporter: it doesn't take much to spook traders on wall street. today, the prospect of higher interest rates. >> there is some concern that the only reason that stock prices have gotten to the lofty level they're at is because of what the fed has been doing. and so there is certainly some concern that if the fed provides less support, stock prices could tank. >> reporter: meanwhile, in the real estate sector, there is cautious optimism. new data today shows more than 5,000 homes were sold in may, up more than 4% in a month and a whopping 13% in a year. national median sale price for an existing home, $208,000, jumping 15% from a year ago.

home prices have now risen double digits for six straight months. but in los angeles, realtor candy peak fears another housing bubble. >> it is a feeding frenzy. we have five, ten, 25, 50 offers on most properties. >> reporter: cnbc's diana olick covers real estate. >> mortgage rates are rising with home prices and buyers are able to get a lot less house than they could even just a month ago. >> reporter: today in virginia, newlyweds john and aubrey holman were looking for a home just as interest rates start to rise. >> if the interest rates did go up, we'd be in a much more difficult situation. we probably wouldn't be able to afford the things we want. >> reporter: nervousness on main street and wall street as the economy regains its footing. there is fear higher interest rates could undermine the recovery in the housing market. one more factor at play today on wall street, brian, fear that the chinese economy is slowing. china is now the second largest economy in the world. back to you.

>> all right, tom costello in our d.c. bureau tonight. tom, thanks. now what could be a big breakthrough in a long and drawn out but urgent fight over immigration reform going on in congress. a compromise on border security. this one has the potential to garner overwhelming support in the senate. kelly o'donnell following things all day has our report from the hill tonight. kelly, good evening. >> reporter: good evening, brian. what the senate is working on could bring about the biggest political and cultural change we have seen in the last 30 years. anything that big is hard to achieve. today it feels like a momentum shift that is intended to bring along more republican support. the southern border with mexico is only one way undocumented immigrants gain entry into the u.s., but it's the biggest roadblock to my political solution. >> we need to fix this. and this is our chance to fix it. >> reporter: congress is wrestling with how to grant legal status to students like these and others who are undocumented. they're among an estimated 11

million in the country illegally. but there is fierce opposition, demanding more border security before any path to citizenship. today a potential breakthrough. >> some people have described this as a border surge. and the fact is that we are investing resources into securing our border that have never been invested before. >> reporter: a new bipartisan compromise would add 20,000 border agents, nearly doubling the force. and increase the border fence to extend 700 miles before green cards could be granted. >> you'll have a border patrol agent every thousand feet on the border, 24 hours a day, seven days a week. >> do the math. 20,000 people out there, armed. they're going to see them and turn them back. >> reporter: the plan would require an electronic proof of citizenship for workers. but the biggest objection from republican opponents is that it will not prevent future waves of illegal immigration. >> we believe in immigration. we want to be compassionate and

helpful to people who have been here a long time, but we have got to have a system we can count on in the future. >> reporter: even if the senate could reach an agreement, immigration reform face morse opposition in the house. speaker john boehner told cnbc congress should go slowly. >> if we don't have a secure border and a way to enforce our immigration laws, none of this is going to work. >> reporter: many opponents tell me they simply don't trust the federal government to deliver on promises of more enforcement. and there is lots of concern about how much all of this would cost. the senate hopes to wrap up by 4th of july. brian? >> kelly o'donnell covering it all on the hill tonight. kelly, thank you. a new revelation regarding edward snowden, the contractor who exposed the u.s. data mining program. we learn today that in the inspector general's office is conducting a criminal investigation into the company that did a background check on snowden back in 2011 in order for him to get his top secret government clearance. virginia-based usis is the

largest government contractor conducting the security clearance investigations. while the inspector general said there are concerns that the company may not have conducted its background check of snowden properly, no one is alleging a connection here, unless investigators find systemic failures on the part of the company. which is still conducting most of the government's background checks while under investigation. jury has been selected in the trayvon martin case in sanford, florida. in keeping with florida law for a case of this kind, a jury of six. all of them women. they will decide the case of george zimmerman, who is facing charges of second-degree murder. he maintains he is not guilty because of self-defense. in brazil tonight, a huge new wave of public demonstrations in the streets, driven by anger over economic injustice there. nbc's miguel almaguer is in rio de janeiro with the latest for us tonight. >> reporter: brian, good evening.

they are pouring into the streets of rio tonight. they are expecting to see upwards of anywhere to a million protesters in this city alone. demonstrators across this country say they are paying high taxes, and in return they say they are getting very poor government services back, everything from health care to education to security. as you know, rio is on the world stage. next year hosting the world cup and in three years hosting the olympic games. the government paying billions of dollars for those events, but folks in rio across brazil say in return they are getting very little back from their government. these protests sparked by a hike in bus fees, but tonight they are protesting on a much larger scale, expect to see protests of this size carry on throughout tonight, not just in rio, but major cities all across brazil. brian? >> miguel almaguer with our report tonight. among his fans and among

millions of americans just last night, it was one of those where were you when you heard the news moments regarding the death of james gandolfini. he was just 51 years old. he was in italy with members of his family prior to attending a film festival this coming weekend. and he was busy with new film projects and a pilot for hbo. he died of an apparent heart attack which he suffered after returning to his hotel. those who knew him and loved him described him today as a unique character who left was one of the great characters of all time. >> are you in the mafia? >> am i in the what? >> reporter: in real life he once said the violence he was forced to portray made him feel sick to his stomach. he consulted with real life wise guys on how to play tony soprano. they told him never to wear shorts. >> i'm in the waste management business. everybody immediately assumes you're monday up. it's a stereotype, and it's offensive. >> reporter: he played a bad man that struggled with goodness and

he played it so well and was so well liked in life, that today it seemed like all of hollywood and millions of us were feeling the same way. shocked. >> he was a tremendous, tremendous actor. >> really young, and i loved him. >> reporter: co-star edie falco says, quote, the love between tony and carmela was one of the greatest i've ever known. show creator said gandolfini was a genius. steven van zandt said he lost a brother and best friend. james gandolfini played a made man, tony soprano, and he made us care when his cold-blooded character suffered panic attacks and he sought therapy from the great dr. melfi. we cared about all of the characters, but there was tony in the center. a profane, violent, voracious sociopath with bouts of vulnerability. he didn't have killer good looks, but if looks could kill, tony's eyes alone could destroy lesser men. >> we're in a situation where

everybody involved knows the stakes. and if you're going to accept those stakes, you got to do certain things. >> reporter: james gandolfini was born in 1961 into a working class north jersey household. his italian immigrant father spoke the language at home. he graduated from rutgers, tended bar, ran a club, drove a truck, and then took an acting class, and he was hooked. he loved the offbeat indy projects on stage and on screen, and leaves us with many films. he recently played a down and out hitman opposite brad pitt in "killing them softly." he played the mayor of new york city, and later the director of the cia in "zero dark thirty." >> what else have you done for us. >> nothing. >> reporter: on broadway in "god of carnage", he played a character who morphed from a

yuppie possessor to a full-on thug, and it earned him an appropriately named tony nomination. in life, the big, shy actor could not have been less tony-like. he spoke quietly and with precision. he was funny and unpretentious. he was both tortured by his success and grateful for it, and loyal to those who helped him on the way up. he often said he felt indebted to members of the military for their service. he visited them in war zones and later hosted hbo documentaries on post traumatic stress and wounded veterans. >> honor, duty, loyalty to your country. it hit me. i guess some people forget about that. or don't think about it. and i think -- >> reporter: i understand. ♪ woke up this morning >> reporter: his role as tony set the bar for television portrayals, earning him emmys

and golden globes and helping to rocket hbo to premium status. "the sopranos" ran for six seasons, a staggering 86 episodes, and while it wasn't for everyone, it rewrote the modern-day depiction of the mob. he was hardly the elegant godfather figure we had previously come to know, but it was closest to what he knew from life. and as a fellow cast member put it, upon reacting to the news last night, at least he died in italy. james gandolfini leaves behind his wife, a teenaged son, and his infant daughter. we'll take a break at this point. when "nbc nightly news" continues this thursday night, we'll go west. there are some desperate measures under way tonight because of extreme drought fueling fires, and in some places not enough water to drink. and later, a whole new world for a 3-year-old boy. the incredible moment he hears his father's voice for the first time.

back now and we turn to the

west. firefighters battling dozens of wildfires tonight. that situation is not being helped by severe, in some places extreme drought conditions. the very worst of it right now is in new mexico. nbc's gabe gutierrez went to one town where there is no water at all. >> reporter: while thousands of firefighters rushed to squelch flames in six western states, in magdalena, new mexico, no fire yet, but there is already a state of emergency. >> about as dry as it gets. i tell you, water is a precious commodity. >> reporter: earlier this month, the town's well ran dry. mayor sandy julian is now fighting for water. some days the village has none. other times barely enough. officials have trucked in tankers. they're rationing water bottles, and trying to calm fears. >> we're praying for rain. >> reporter: jonathan runs the only laundromat for 60 miles. >> the stress itself is just beyond anything i imagined or have experienced in my life.

>> reporter: he wonders how to support his wife and 4-year-old daughter, and fears bankruptcy. resident bill fuller has other concerns. >> tomorrow there may not be any water in the well, and we'll have no water pressure at all, no way to flush the total. >> reporter: the situation is dire enough that city officials and some local businesses have rented port-a-potties throughout town to conserve water. new mexico is now part of the drought's epicenter. since 2012, notice how the dark red areas have shifted west. >> this year's drought is focused more over the southwest, where last year's drought was focused more over the central plains and into the southwest. >> this year's drought, focused over the southwest. >> reporter: dry conditions are fueling what could be a record fire season. today in colorado, eight fires are stretching crews to the limiting as they battle a 7,000 acre blaze near prescott, arizona. >> this stuff is prime to burn. >> reporter: on the lines, a desperate need for water, much like this small town. >> this here is the worst one

i've seen. >> reporter: which is begging the state for money to fix its well. but with no significant rain expected for months, this water war has no end in sight. gabe gutierrez, nbc news, magdalena, new mexico. and we are back in just a moment with the story of the right person in the right place at the right time, and a life was saved as a result.

just a heads up here tonight. something due to happen next week in washington could end up changing life in america in many ways. the u.s. supreme court has a dwindling number of days to announce decisions in some possibly momentous cases. and the big ones are now stacked up at the end of this court term, like aircraft waiting to land. affirmative action, gay marriage and voting rights act are among the decisions that are due. next monday and thursday are the likeliest days for these new decisions to be announced. the apple doesn't fall far from the tree, and that was a good thing for an infant who

fell from a fire escape in brooklyn, new york, yesterday. standing beneath the fire escape was christina torre, daughter of all star catcher joe torre. and christina torre safely caught the child and all is well. she is a teacher at a montessori school. she said she was just following her instincts, but such things do tend to run in families. among members of the animal kingdom, the queen of england is known to love corgis and racehorses, and today was a first for her. while the corgis were not in action, one of the queen's horses was, and won the gold cup at the ascot race for the first time ever. the queen's horses have won 21 times before, but never this race. and it's a big one. the winner was a filly named estimate. it took off at 7-2 odds. the queen, as you saw, managed to smile. and princess beatrice, fergie's

daughter, really seemed into the victory. when we come back, the captured moment that has become the talk of the web. tonight the story behind it.

finally tonight, perhaps it was forwarded to your inbox today, the piece of video on the

web where the sound you hear is really the most crucial thing. it shows a little boy hearing his father's voice for the first time and it represents an even larger story of the great science that made it possible. our report tonight from kate snow. >> reporter: 3-year-old grayson clamp was back at his doctor's office today for a checkup. grayson was born with a host of medical issues -- open heart surgery as an infant, vision loss in one eye, and no auditory nerves in either ear. but about four weeks ago after groundbreaking surgery, little grayson heard his father's voice for the first time. >> daddy loves you, daddy loves you. >> yes. hear. >> can you hear daddy? >> reporter: mom nicole was shooting the video. >> when they turned that thing on and it worked, and he responded to that sound, it was like the weight was lifted off of me. it was a long road getting there.

>> reporter: nicole and lynn are high school sweethearts, who adopted grayson out of foster care. >> he is a really smart little kid, a lot going on in that brain of his that he want to get out, that he wants to tell us, and you can tell that, but he just hasn't really been able to. >> i can hear myself. >> reporter: we've seen technology help others. the viral videos of that indescribable moment when a person hears for the very first time. >> it's exciting! >> reporter: but this is a milestone. grayson's implant requires brain surgery, and he is the first child to receive one as part of an fda-approved trial. the whole family's world has been turned upside down. grayson is drawn to live music and the radio. mom nicole hopes one day soon he'll start using words. >> my dream for him is that he will develop intelligible states and he'll be able to function independently. pretty much what any mom wants for their little boy.

>> reporter: they feel blessed to be the first and hope other children experience that same joy. >> daddy loves you. >> reporter: kate snow, nbc news, new york. >> great note good evening, and thanks for joining us. >> we begin with the high stakes battle that could threaten one of the most important tools the public uses to keep lawmakers in check. it guarantees that agencies provide records to people who request it. but a new bill would effectively gut the policy. >> reporter: good evening. the state lawmakers were on the

verge of changing or as you said, gutting strict guidelines that agencies have to follow when it comes to filling a public records request. it would make it voluntary to give up documents. lawmakers have changed their minds at least for now. if you want to know about crime statistics from your police department or what lobbyists may be writing to your local leaders, you'll likely have to file a public records request. >> finding out about law violations, finding out about fraud, abuse of power. >> reporter: these boxes are from a school district. and these papers are requests to the state asking about local government funding for high tech surveillance things including drones. >> people get very involved personally in it. >> reporter: he says every year roughly 0