good morning. coming up on "early today," america's security and privacy exposed. calls for the u.s. to get tough and retaliate on the shadowy sony hackers. the second horrific scene out of australia this week this time involving the death of eight children. the russian economy tanks, stocks in the u.s. skyrocket, with the dow over 700 points in two days. and a must see undercover report on some of america's biggest stores selling used underwear. it is the last friday before christmas. "early today" starts right now. good morning. i'm dara brown. it is already crippled a big company. it cost a studio a major motion

picture and had a terrible cost of privacy. while the attack on sony pictures goes on federal officials are pointing right at the source. they say the attack was launched from inside north korea. it raises huge questions about vulnerability and national security. details from nbc justice correspondent pete williams. >> reporter: security analysts say even though north korea has a force of nearly 6,000 people assigned to do cyberattacks its previous attempts have been primitive. now they say the nature of the sony attack who it targeted the splashy claims of credit and the dumping of stolen e-mails and websites for hackers suggested that the north koreans were behind the attack they had help. >> now all of a sudden they did something quite sophisticated just abruptly out of nowhere. so how did they suddenly acquire that capability? it is hard to imagine how they do it without outside help. >> reporter: u.s. officials say they found into definitive sign yesterday that sony insider were

involved. they say this attack may have begun months ago and bounced all over routed through a series of servers to disguise the origin. if it was launched by north korea, how to respond. the obama administration says the attackers may be itching for a reaction. >> they carry out actions like this are oftentimes do not always but often seeking to provoke a response from the united states of america. >> reporter: responding in kind with a cyberattack might not be effective because north korea doesn't have much of a cyberfootprint. >> there is no banking structure in north korea. so it wouldn't do any good to go after those. north korea already suffered major power outages on a daily basis. >> reporter: a former federal computer crimes prosecutor says a country that mounts an attack over a movie looks weak. >> if this really is north korea, it is sort of silly that they would engage in almost an act of war because they don't like a movie. >> pete williams reports definitive word on the source of

the attack may come today. a tragic and horrific scene in australia this morning. eight children ages 1 1/2 to 15 years old found stabbed inside a home all of them dead. a 34-year-old woman was found stabbed but alive. police believe she's the mother of seven of the children. they haven't identified any suspects yet. this comes days after a deadly siege on a cafe where a gunman took 18 people hostage and killed two. tony abbott called these trying times for australia. he added in part all parents would feel a gut wrenching sadness at what has happened. this is an unspeakable crime. it has been a few days for -- busy few days for president obama before he heads out for his 17-day hawaiian vacation. he'll hold a year end news conference. there is a lot to talk about. tracie potts is live in washington, d.c. this morning. what is the president expected to address today? >> reporter: well let's start with cuba. it was his big announcement this week. we're expecting the president will be peppered with questions

on how he's going to implement new thawed relations with the island to our south. the state department said they are ready to go it will be a matter of weeks, not months before they put some of the changes in place. as for that trade embargo, congress will have to lift that. so the president will have to convince them to do so. so reluctant republicans already on record with that. and then the president also likely today to be addressing the sony hack the white house says that he considers it a serious national security matter. they believe that north korea, as you just said may be behind this. jay johnson said they're considering a range of options to deal with it. immigration, the secret service report could both come up today that report suggested changes in and around the white house and within the agency to keep the first family safe. and don't forget afghanistan. it is winding down at the end of this year. the official end of our combat role there. while all the washington

lawmakers and president himself are on vacation. >> tracie that's a lot to cram into an hour. thank you very much. tracie potts in washington, d.c. now talk about your santa claus rally. stocks had their best day of the year on thursday with a dow gaining 421 points. investors rallied on news fed will likely meet interest rates alone until summer along with some year end buying to spruce up portfolios. this two day rally could roll into a third day today with futures sharply higher at this hour. last night, stephen colbert hosted his final colbert report on comedy central. and at the end of the show there was a sing along with one of the greatest collections of celebrities we have ever seen. since we don't have time to play the entire song, here are some of the highlights. ♪

♪ ♪ ♪ we'll meet again don't know when ♪ ♪ i know we'll meet again with sunny days ♪ >> it was sunny days for colbert, but major rain may have put a dent in the california drought here. this was the view from space two months ago. lots and lots of brown. slide in the next image from this week and what do you see there? green in the valley and snow in the sierras. the u.s. drought monitor says the percentage of the state suffered exceptional drought, the worst of its kind is now the

lowest in six months. nbc meteorologist bill karins is here with your friday forecast. and good morning to you, bill. that's good news for the west coast. >> we're not going backwards anymore. that's important. here is how the map stands as of yesterday. the new release, exceptional at 32% of the state of california up there into the 50 percentile range, but the extreme was at 80%. it only dropped to 78%. this was a little drop in the bucket but it is a start. and, again, hopefully we're headed in the right direction with a wet pattern continuing as we go through this weekend and next week it appears. this morning, we also have a little light rain northern california once again. that's primarily where the most relief has been from san francisco northward. central california hasn't gotten quite as much rain. areas have gotten maybe two to three inches compared to maybe five to ten in northern portions of the state. it is a wet pattern and it is going to stay that way as we go throughout the weekend. oregon especially the cascades will get nailed up to the pacific northwest. i think after today won't be

quite as wet over the weekend in san francisco and also northern california. you can see our computers are still projecting the heaviest rainfall amounts from california northern sections northward. maybe another two to three inches of rain in the northwest. that's a good steady rain for you. starting today and unfortunately continuing throughout much of your weekend. i know you want to get your errands done and you'll be doing issues. otherwise, you're looking just damp. and as we go into next week it looks like we should return to a little more wet weather for california too. so it is good. >> it could be good too. if it is rainy, you go to the mall you shop more. >> you get your errands done. >> perfect for the holidays. >> no excuses. no beach days. >> no beach days. thanks bill. and it is one of today's

most popular undercover stories. america's biggest retailer selling used yes, used underwear. jeff rossen returns to the stores to see who's doing it. find out next. and then what professions do americans think are the most honest and ethical? doctors, clergy nurses police or one of the others? the answer when "early today" returns. ♪ ♪ ♪ wellllll... ♪ ♪ earlyfit ♪ ♪ latefit ♪ ♪ risefit ♪ ♪ fallfit ♪ ♪ ballfit ♪ wallfit ♪ pingfit ♪ ♪ongfit ♪ ♪ingfit ♪ ♪ongfit ♪ ♪owfit ♪ throwfit ♪ ♪lowfit ♪ ♪lliefit ♪ ♪opsfit ♪ ♪tisfit ♪ ♪hiswayfit ♪ thatwayfit ♪ ♪ daddyfit ♪ ♪ pappyfit ♪ ♪ datefit ♪ ♪ weightfit ♪ goalfit ♪ gooooooalfit ♪ ♪tepfit ♪ ♪tairfit ♪ ♪martfit ♪ ♪eartfit ♪ spinfit ♪ ♪ikefit ♪ hikefit ♪ ♪ikesfit ♪ ♪heeeeefit ♪ ♪owfit ♪ ♪ whoafit ♪ ♪ findyourfit ♪ ♪ it's all fitbit ♪ eh, you don't want that one. yea, actually i do. it's mucinex fast-max night time and it's got a nasal decongestant. is that really a thing? it sounds made up.

i can't sleep when i'm all stuffy. i take offense to that. i'm not going to argue with a talking ball of mucus. i think you're being a little hasty... he's not with me. mucinex fast max night time. multi-symptom relief plus nasal decongestant. breathe easy. sleep easy. start the relief. ditch the misery. let's end this. we got married, we became a family of five. without the time and money to wash all this stuff separately. so we wash it all in cold water with tide. even sara's shorts. those are mine. seriously? throw it all in... really? because tide cleans better. even in cold. ♪ ah, push it. ♪ ♪ ♪ ♪ push it. ♪ ♪ p...push it real good! ♪

♪ ♪ ♪ ow! ♪ ♪ oooh baby baby...baby baby. ♪ if you're salt-n-pepa, you tell people to push it. ♪ push it real good. ♪ it's what you do. ♪ ah. push it. ♪ if you want to save fifteen percent or more on car insurance you switch to geico. it's what you do. ♪ ah. push it. ♪ i'm pushing. i'm pushing it real good! so which professions do americans view as having high or very high honesty and ethical standards? nurses by a long shot. they take the top spot at 80% followed by medical doctors, pharmacists, police clergy bankers and on down to the bottom of the barrel with our members of congress. well just in time for your holiday shopping nbc's jeff rossen is going back to some of the country's biggest retailers who he busted selling used underwear in 2010. stores made promises back then

and with the hidden cameras rolling, he's keeping them honest. >> reporter: we're back. our rossen reports team shopping for underwear at some of the country's biggest brand name stores. >> thank you. >> reporter: and what our hidden cameras find this time is enough to gross you out. in 2010 our nbc news investigation uncovered a dirty little secret about new underwear. >> i'd like to return this stuff. >> reporter: major retail chains taking back used underwear and putting them back on the shelves as new. we found them doing it at victoria's secret nordstrom, walmart, macy's bloomingdale's gap, and marshalls. at the time when we caught them the stores told us they would re-educate their staffs. so today, four years later, we're buying underwear and

swimsuits at those same chains. and putting them to the test again. did they learn their lesson? we're doing exactly the same as last time ripping off all the tags and using this marker to put two little black dots right on the label. that way they know it's ours. right away good news we return our used underwear to macy's and they end up in a clear plastic bag with other damaged items. >> there you go. >> thank you. >> reporter: at bloomingdale's the clerk takes the underwear to the back room, never to be seen again. nordstrom and the gap both come out clean foo. but things are about to get gross all over again. at victoria's secret we return two pairs of underwear. >> thank you. >> reporter: the salesclerk quickly tosses them behind her. and it doesn't take long to find them right back on the table for sale as new. remember we know it is our underwear from the two little black dots on the tag.

now, on to marshalls and things get even worse. >> hi how are you? >> reporter: we buy a set of underwear and a swimsuit. don't forget all the tags are off. we even remove the protective liner from the bathing suit so it looks used. when we return them the sales woman wastes no time putting on new tags. we watch our bikini and underwear carted out and put right back on the rack. as if they were brand-new. but the saleswoman assures our producer that never happens. >> used used? no. like we just kind of -- >> so if it looks like it has been used you won't sell it right? >> no. >> think again. but what we found at walmart could be the most blatant. here's our producer returning the underwear. and watch this. the salesclerk staples new tags on right in front of us. she tosses the used underwear into a cart full of returns. the associate going through them

seems to realize they have been used. but the very next day, guess where we find our underwear? right back on the rack for sale. we bought them again so you don't. >> those are brand-new? >> of course. >> reporter: in a statement to nbc news walmart acknowledging our results are absolutely unacceptable. victoria's secret telling us what we found on hidden camera is a clear violation of their policy. marshalls says they're disappointed their procedures were not followed and all three companies again promising to re-educate their staffs. but we heard that before. that was jeff rossen reporting. experts say you should wash all new underwear before you wear them but if you really want to be safe ask if they have the size you need in the back that way you know it is straight from the packaging. and you can get it before it even hits the shelf. just ahead, beijing china is

pushing to do something no one else ever has. plus ronaldo trades in his celtics green and you're looking at a $600,000 sack. sports is next. at panera bread, our hearty all-natural turkey chili is back in season. slow-cooked with turkey raised thout antibiotics, tart tomatillos, chilies carrots, edamame and more. the savory spice of the chili pairs perfectly with the black bean hummus and the fresh crunch of napa cabbage blend in our southwestern chicken flatbread. and it all comes together in a you pick two made just for you. only at panera bread. these little angels build in softness. and these little angels build in strength. and that little angel says "weeeeeeeee!" 60% more sheets than charmin. everything you want and the value you love. angel soft. why do i cook for the holidays? to share with family to carry on traditions

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this morning on "today," meet a sixth grader who's getting to the heart of christmas and spreading holiday cheer to those in need. in sports, a battle of the 2

and 12ers on thursday night football. the jags lead the titans by 4 in the fourth quarter. jordan toddman breaks free down the middle for a 62-yard score. the jags longest scoring play on the ground this season. then on the very last play of the game jags send derek marks with the sack there. that earned him a $600,000 bonus in his contract for getting eight sacks on the season. jag win it 21-13. thunder star kevin durant with the hot hand scoring a season high 30 points. and that was just in first half. durant goes down with the mild right ankle sprain there after stepping on the foot of another player. good news, x-rays came back on the ankle and they were negative. a big trade in the nba. celtics are sending all-star point guard rajon rondo to the mavericks. in return boston gets brandon wright, jae crowder and jameer nelson. as well as a future first and second round draft pick. beijing jockeying to be the first city to host the summer and winter olympic games.

in 2008 they hosted the summer games and now they are ramping up to bid for the 2022 winter olympics. beloved dodgers announcer vince scully had a brief scare when he lost his world series ring. the quick thinking dodgers social media team sprang into action, tweeting. while christmas shopping today vin scully lost his 1988 world series ring and to contact him if found. nine minutes later they tweeted out that the ring was found. where? in one of the shopping bags that scully was packing food into. crisis averted. and a pair of autographed game shoes michael jordan wore as a freshman at unc sold yesterday for more than $33,000. sold by gray flannel auctions, the shoes were given to one of jordan's high school teammates. just ahead, a big battle at the box office this weekend, plus, the stars were out for "people's" biggest awards show yet. details as "early today" returns. i'm caridee. i've had moderate to severe plaque psoriasis most my life. but that hasn't stopped me from modeling.

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that's why, whenever the need arises... walgreens is always right around the corner, so you can get in and out in no time. most walgreens are even open 'til midnight to help keep the magic in your holidays. at the corner of happy and healthy. now for some entertainment news. at the box office this weekend, the hobbit, the battle of the five armies has its first weekend expecting to gross ing toing to gross $64 million, while ben stiller's night at the museum looks to take second place making 23 million. and annie is expecting $18 million.

>> the biggest stars of the year were honored at the first ever "people's" awards. jennifer aniston won actor of the year and michael keaton won male actor of the year. kevin hart is so funny, but this woman, kate upton walked away with the "people's" sexiest woman award. >> never heard of her. and neil patrick harris is joining the freak show. they start airing january 7th. he's going to play a traveling magician. >> neil patrick harris is my new favorite actor. i never know what role he's going to do next. >> he used to do it in california. >> you know more than i do. >> i'm dara brown. >> i think you used to be a magician. >> i'm a magician. we hope it is just your first stop of the day here on nbc. (cough, cough) mike? janet? cough if you can hear me. don't even think about it. i took mucinex dm for my phlegmy cough. yeah...but what about mike? he has that dry,

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leading the news. in "usa today" police stop pursuing nearly 79,000 fugitives. a "usa today" investigation found that nationwide police and prosecutors quietly told the fbi they had given up chasing people charged with armed robbery and raping children usually without informing their victims. the reason, because they had crossed state lines. and on nbcnews.com, contact high court, nebraska and oklahoma sue over colorado pot legalization. the lawsuit filed by the state's attorneys general argues that colorado marijuana has entered their states leading to more arrests, more impounded vehicles and higher jail and court costs. some other stories that we are following right now. more retribution following the attack at the school in pakistan earlier this week. pakistani jets and ground forces

killed 59 militants near the afghan border while another 32 terrorists were killed by security forces today only days after the massacre. the irs did the math and budget cuts could mean trouble. cuts enacted by congress could hurt enforcement efforts, reduce taxpayer services and most importantly delay tax refunds. the irs commissioner says that about half of the people that called the agency this year will not be able to get through to a live person. after an investigation authorities determined that that massive fire in los angeles last week was arson. the fire destroyed a seven story structure on a construction site and took nearly 250 firefighters to put the blaze out. check out this security footage that shows an attack from a flying tire. yes, after a tire fell off the truck -- that's amazing. >> you wonder how the guy's leg didn't fall off.

>> the truck was traveling down a texas highway and bounced off the curb and flew into the window. doctors say this say christmas miracle because the man had no serious injuries. >> salvation army ringers found a gold tooth. the oors organization is holding on to the tooth just in case it was an accidental donation. now time for a look ahead, olympic champion michael phelps will go on trial this morning for a dui charge. he was arrested in late september for allegedly driving 84 miles an hour in a 45 zone. police say he then registered above the legal limit on a blood alcohol test. phelps was arrested for drunk driving in 2004 and sentenced to 18 months probation. he could face up to a year if convicted. happy birthday to actor jake gyllenhaal who turns 34. alyssa milano is 42. and chris angel is 47. i'm dara brown. thanks for watching "early today." we hope you have a great friday

and a great weekend.

another microclimate weather alert. more rain on the way. the impact on your commute. >> and large flames from the chevron refinery. the unanswered questions this morning. >> and a popular dating app snares an apparent thief. how tinder helped light a fire. >> and good start to your day because it is a friday, december the 19th as we take in the bay bridge. you're watching "today in the bay". >> oh we don't like