terror scare. suspicious luggage prompts the arrest of two airline passengers on an international flight. combat countdown. president obama to declare an official end to u.s. combat operations in iraq. and taking aim. powerful hurricane earl makes a run for the atlantic coast. this is the "cbs morning news" run for the atlantic coast. this is the "cbs morning news" for tuesday, august 31st, 2010. captioning funded by cbs good morning. thanks for joining us. i'm betty nguyen. this morning two u.s. residents are being held in the netherlands for what u.s. officials say may have been a test run for a terrorist plot. the men were picked up at the request of u.s. officials, but neither man has been charged. terrell brown has the latest.

>> reporter: this was triggered by suspicious items found in their luggage, but it's still unclear if it was a misunderstanding or a dry run for a terrorist attack. these are the men in question, al soofi and al murisi. both natives of yemen, both picked up in amsterdam monday after a flight from chicago. security officials found these items in al soofi's luggage. watches, cell phones taped together and watches taped to a bottle of pepto-bismol. they also found $7,000 in cash. >> anytime anybody's got a whole bunch of cell phones taped to bottles and triggering devices like digital watches, that sounds per se like something you'd want to know about. >> reporter: but al soofi was allowed to continue his trip despite what appeared to be mock explosive devices. he was supposed to fly from alabama to chicago to dulles airport in virginia and then to

amsterdam, but changed his plans. >> after 9/11 that's rule number one, that passengers and luggage goes together. >> reporter: no suspicious items were found in al murisi's luggage, but he also changed his flight plans. security officials point out here it's not illegal to carry taped cell phones and watches in checked baggage. still, in the post- 9/11 world, probably not the best move. >> i'd say so. okay. terrell brown joining us live here in new york. thanks. tonight president obama officially declares an end to u.s. combat operations in iraq. it's mr. obama's second address from the oval office and fulfills a campaign promise made in 2008. tara mergener has more on all of that. >> reporter: good morning.

the white house calls today a milestone in the mission, but says it is not abandoning iraq. the end of america's combat operations in iraq marks the beginning of a new mission. >> what you'll see is the changing of a mission from one of combat to one of support. >> reporter: roughly 50,000 american forces will take part in operation new dawn, down from the nearly 170,000 that once patrolled the streets. they'll focus on stabilizing the country, training and advising security forces. vice president joe biden flew to iraq monday to reassure the nation of america's commitment. he'll preside over today's ceremonies and push leaders to end a six month old stalemate that's prevented them from forming a new government. president obama heads to ft. bliss, texas, this morning to meet with soldiers who served in iraq. later he'll return to the white house to deliver a prime time address from the oval office. the president is expected to tell the american people iraqis

are now in charge of their own destiny. but one phrase you won't hear, mission accomplished. >> you won't hear those words coming from us. >> reporter: the remaining u.s. forces aren't expected to come home until the end of next year. even then, some experts say that may not happen. >> recently the chief of staff of the iraqi army said we could need the americans here as long as 2020. >> reporter: iraq has recently seen a spike in violence, including a string of deadly attacks just last week. and before tonight's speech, president obama will be speaking with former president bush who ordered the troop surge in 2007. betty, back to you. >> tara mergener live from washington, thank you for that. and cbs news will bring you live coverage of president obama's address tonight starting at 8:00 eastern. meanwhile, the u.s. casualties continue to mount in afghanistan. this morning four americans were killed by a roadside bomb, seven were killed in afghanistan on monday. in two days, the obama

administration takes on another long standing foreign policy issue. trying to negotiate peace in the middle east. the white house is hosting the first israeli-palestinian peace talks in 20 months beginning thursday. u.s. officials don't expect a major breakthrough. the man accused of slashing a new york cabbie's throat because the driver is muslim will be arraigned next month. 21-year-old michael enright was indicted monday in a new york city court. he's charged with attempted murder and assault, both as hate crimes. enright allegedly attacked the cabbie after asking him if he was muslim. the driver did survive. a long sought mexican drug pin is in custody this morning. edgar valdez is known as la barbie because of his fair complexion. he was captured monday near mexico city. he was born in texas. authorities say he was behind a surge of bloodshed in mexico. u.s. officials put a $2 million bounty on his head. now to hurricane earl. and if you live along the

atlantic coast, this is a powerful storm you need to pay attention to. earl is now a category 4 storm with sustained winds of 135 miles-an-hour. earl battered islands in the northern caribbean on monday and is now headed toward the u.s. coast. now, it's too early to say what effect earl will have, but residents from the carolinas to maine are warned to be on alert. don teague reports. >> reporter: the first video and pictures shot by those riding out the storm posted on youtube and twitter, heavy rain and high winds as hurricane earl roared across the northeastern caribbean. >> there's more flooding, there's more trees down. some of the restaurants on the strip have taken a hit, a little bit of a beating. >> reporter: earl is a powerful hurricane. it battered the islands of antiqua and st. martin tearing roofs from homes, toppling power poles and knocking out electricity for thousands.

>> we're all out of power. we're on generator from the hotel right now. >> reporter: it's now impacting the u.s. virgin islands and puerto rico and those along the atlantic coast are watching it closely. >> if we had a category 2, category 3 storm hitting directly from the south say long island or coastal new england, that has the potential to be a pretty big disaster. >> reporter: on north carolina's outer banks, those on the beach are battling dangerous rip currents, created by hurricane danielle, which stayed at sea, but brought heavy surf. >> the surfers are having a great time. we're actually catching a few fish out here, too. but i think we'll be out of here before earl comes close. >> reporter: hurricane earl is still a few days away from threatening the atlantic coast. the latest computer models have the storm very near the outer banks here in north carolina late thursday evening. so folks from here north all the way to maine are watching the forecast very closely.

don teague, cbs news, hatteras, north carolina. just ahead on the "morning news," overseas markets see a huge selloff, plus tiger on the move. woods moves into his new apartment in the big apple. you're watching the "cbs morning news." spu're watching the "cbs morning news." welcome to progressive. nice calculator. i'm just trying to save money on my car insurance. you know, with progressive, you get the option to name your price. is that even possible? uh, absolutely. trade? and i still get great service? more like super great. oh, you have a message. "hello." calculator humor. i'll be here all week. i will -- that was my schedule. the freedom to name your price. now, that's progressive. call or click today.

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in california, an alaska airline 737 returned to los angeles international airport after the pilot reported a bird strike. the plane was about a mile and a half away from the airport last night when the bird hit the plane's windshield. there was no damage and no one was injured. the government has found some stunning violations at two iowa farms involved in the massive egg recall, wright county egg and hillendale farms have voluntarily recalled more than a half billion eggs.

the fda has now found rodent, bug and bird infestation as well as samples of salmonella at both facilities. at wright county egg, manure was piled so deep, it was seeping through a building foundation. critics are calling for the farms to be shut down. >> it does seem that a company that has violated so many different laws should be closed down. >> the fda says it will inspect the 600 largest egg farms in the country, which account for 80% of all the eggs produced in the u.s. on the cbs "moneywatch," stocks in asia took a nose dive this morning. ashley morrison is here in new york with the latest on that. good morning, ashley. >> reporter: good morning. well, investors in asia were bailing out on the heels of losses on wall street. japan's nikkei dropped more than 3.5%, while the hang seng was also sharply lower. today wall street gets the latest on consumer confidence and home prices. on monday, stocks lost more ground after a disappointing personal income report. the dow slid almost 141 points

while the nasdaq gave back 33. small businesses are hiring fewer people. firms with 20 employees or less added just 26,000 jobs last month, about half of what they added earlier this year. on monday, president obama urged senate republicans to drop their opposition to a bill to help small businesses. obama says the package of tax incentives should be lawmakers' first order of business when they return from summer break next month. mortgage rates may be way down, but closing costs are way up. according to "usa today," on average, origination and third party fees on a $200,000 mortgage added up to more than $3700. that's almost a 40% jump over last year. the fees can include appraisals, surveys, credit reports and attorney fees. some housing experts argue it's because lenders have to comply with stricter government regulations. fewer people are going to the movies. just over 550 million tickets

have been sold so far this summer season. that is the lowest in five years. but don't cry for hollywood. the industry is still seeing record revenue up $100 million over last summer thanks largely to jacked up ticket prices for 3d features. and it's not unusual for athletes to have a special insurance covering their bodies if they get hurt, but this has got to be a first. pittsburgh steelers safety troy polamalu has a $1 million policy on his hair. he doesn't even have to pay the premium. that's covered by head and shoulders, the shampoo that he endorses. while the long locks occasionally cause him problems on the field, polamalu says he will not cut them as a tribute to his samoan heritage. and i'm wondering does that policy cover bad hair days or just if he loses his hair? >> i don't know, but that's some pretty good hair. i'm a little jealous. >> me, too. >> ashley morrison live in new york. thanks for that. roger clemens has pleaded not guilty.

the former baseball star was in court in washington monday to answer charges that he lied to congress about using steroids and human growth hormone. if convicted, he could face fines and prison time. clemens then hustled down to north carolina to play in a golf tournament. he had to finish the 18 holes before sundown and he did. listen to this, tiger woods has moved to new york city. woods is said to have taken up residence this weekend in a bachelor pad in downtown manhattan. according to "us weekly," he introduced himself as the new neighbor. woods' divorce became final last month. the six year marriage ended after woods confessed to multiple affairs. straight ahead, your tuesday morning weather. and in sports, the u.s. open starts with an unbelievable shot between the legs for the winner. look at that. we'll have the latest on all of it.

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the southeast enjoys a much drier afternoon. and scattered showers and thunderstorms are likely around the great plains. in sports, day one of the u.s. open, five time champ roger federer hit an amazing between the legs shot in an easy straight set victory in the first round. and venus williams played her first match in two months also winning easily to advance to the second round. in baseball, tampa bay is still tied with the yankees for the best record in the majors. carlos pena hit a three run homer against toronto. tampa bay's 6-2 win keeps them tied with new york in the eastern division. in the 11th inning, a two run home run off cleveland. chicago's 10-6 victory moves them within four games of division leading minnesota. and in the 10th inning, jay bruce of cincinnati hit a walkoff single to left for a 5-4 win over milwaukee. the reds now lead the central

division by six games. when we return, another look at this morning's top stories. and a red flag for young athletes on the field. a look at an alarming rise in concussions. [ female announcer ] your precious eyes. when allergies make them itch, don't wait for your pills to kick in. choose alaway, from the eye health experts at bausch & lomb. it works in minutes and up to 12 hours. bausch & lomb alaway. because it's not just your allergies, it's your eyes. look at all this stuff for coffee. oh there's tons. french presses, expresso tampers, filters. it can get really complicated. not nearly as complicated as shipping it, though. i mean shipping is a hassle. not with priority mail flat rate boxes from the postal service. if it fits it ships anywhere in the country for a low flat rate. that is easy. best news i've heard all day! i'm soooo amped!

i mean not amped. excited. well, sort of amped. really kind of in between. have you ever thought about decaf? do you think that would help? yeah. priority mail flat rate box shipping starts at $4.95, only from the postal service. a simpler way to ship. good morning. i'm john kessler. and i'm sydnie kohara. look at this... a hole in one of the engines. the jet was heading to australia when it had to turn back. coming up at five: we'll hear reaction from passengers. an arrest late last night... the man in custody is suspected in seven shootings in ten days in oakland. what was being thrown from a second floor apartment window as officers approached. that sewage spill in redwood shores... bigger than previously believed. how many gallons

of raw sewage has spewed from a broken pipe. and hurricane earl is gaining strength. the warnings for the east coast. join us for cbs 5 eyewitness news early edition ... beginning at five. on the cbs "morning news", here's a look at today's weather. scattered showers will be popping up across much of the great plains. the northeast remains mostly dry and the southeast enjoys a much drier afternoon. here's another look at this morning's top stories. two american residents are under arrest in amsterdam after suspicious items were found in one man's luggage, including cell phones taped together and watches taped to a bottle of pepto-bismol. >> and in an address from the oval office tonight, president

obama officially declares the end of u.s. combat missions in iraq. it's mr. obama's second address from the oval office and fulfills a campaign promise made in 2008. now some remarkable health news that you can drink to. a new study finds that people who are moderate drinkers, that's one to three drinks a day, actually live longer than those who never drink alcohol. researchers tracked 1800 people between ages 55 and 65 over 20 years. they also found heavy drinkers outlived abstainers, as well. drinking is thought to improve heart health, circulation, and social ability. and a disturbing trend. the number of young athletes going to emergency rooms with a concussion have soared. and many still don't understand how serious the injury can be. karen brown reports. >> reporter: matt gfeller had always dreamed of playing varsity football, but his first game was his last.

during a routine play, he was hit in the head. it turned out to be a fatal brain injury. head trauma and especially concussions are on the rise among young athletes. a study in the journal "pediatrics" found that emergency room visits for sports related concussions doubled for 8 to 13-year-olds over the last decade and tripled for 14 to 19-year-olds. >> they play with complete abandon and they're hitting their heads a lot harder. >> reporter: the danger of concussions for professional athletes especially in the nfl has been widely publicized, but researchers say child athletes may be even more vulnerable because their brains are still developing. symptoms include headache, nausea, and dizziness, and you don't have to always lose consciousness. several states have adopted tougher limits on when athletes can resume play after a concussion. players at matt's school go through mental and balance tests before the season so if they're injured, they can be more accurately treated, ensuring that matt's legacy lives on. karen brown, cbs news, los angeles.

this morning on the "early show", dave price has the latest tracking for hurricane earl. i'm betty nguyen. this is the "cbs morning news." i'm iris cross. bp has taken full responsibility for the clean up in the gulf and that includes keeping you informed. my job is to listen to the shrimpers and fishermen, hotel and restaurant workers and find ways to help. that means working with communities. we have 19 centers in 4 states. we've made over 120,000 claims payments, more than $375 million. we've committed $20 billion to an independent claims fund to cover lost income until people impacted can get back to work. we'll keep looking for oil, cleaning it up if we find it and restoring the gulf coast. i was born in new orleans. my family still lives here. bp is gonna be here until the oil is gone

and the people and businesses are back to normal...

the developer behind plans to build an islamic center near ground zero is speaking out about the controversy. the 37-year-old who owns the site says he is determined to move on with the project. he recently sat down with scott pelley. >> it's very surreal. it's a very surreal experience to be in the middle of this storm. >> reporter: he's a manhattan real estate developer who sat down with us because he says he wants to clear up misconceptions about his project, its funding, and himself. >> who are you? >> i'm an american. i'm a new yorker. born in methodist hospital in brooklyn to a polish catholic

mother, to an egyptian father. >> let me make sure i have this straight. you're a muslim who married a christian girl. your mother is catholic. and you joined the jewish community center on the west side of manhattan. >> i did. >> this facility that is being debated all around the world is universally known as the ground zero mosque. what do you call it? >> it should be universally known as a hub of culture, a hub of co-existence, a hub of bringing people together. >> reporter: this is the hub he's talking about, an abandoned burlington coat factory store two blocks from ground zero. you can't see the world trade center site from here. he intends to put in a swimming pool, cooking school, meeting hall and, yes, an islamic prayer room. >> did it occur to you when you were putting this together that

that was two blocks too close to a place that many, many people feel very strongly about? >> not at all. it did not even cross my mind once. >> why not? >> because i did not hold myself or my faith accountable for that tragedy. >> reporter: he didn't spring this on the neighborhood. he said it took eight years to negotiate the purchase. >> you don't have your choice of putting this anywhere you want to. >> of course not. it's not like you can just walk up and say i want that building or i want that building. this is one of the most competitive marketplaces in the world. >> reporter: over the last year, he took the proposal to a community board four times. it was approved every time. >> the president himself has agreed that you have the right, some people question the wisdom. >> it matched the needs of my community. it matched the needs of my muslim brothers and sisters, my

christian brothers and sisters, my jewish brothers and sisters, who live and work in lower manhattan. >> do you intend to go ahead with the project after all of this? >> 100%. scott pelley reporting there for "60 minutes." and that's the "cbs morning news" for this tuesday. thanks for watching. hope you'll join us later for "the early show." i'm betty gnuyen. "the early show." i'm betty gnuyen. have a great day. -- captions by vitac -- www.vitac.com www.vitac.com

your realtime captioner is linda marie macdonald. caption colorado, l.l.c. comments@captioncolorado.com >> a passenger jet returns to san francisco international airport with a hole in its engine casing. >> the