crude confrontation. big oil heads to capitol hill with billions in profits and tax breaks on the line. terror plot. arrests in an alleged terror plot targeting new york, as osama bin laden's own diary reveals plans and details never heard before. and washed away. more heavy rain is forecast for the flood-plagued mississippi more heavy rain is forecast for the flood-plagued mississippi delta. captioning funded by cbs good morning, everybody, thanks for joining us, i'm betty nguyen. oil industry tax breaks top the agenda on capitol hill today. in the face of soaring profits

and ever-higher fuel costs, most democrats want to limit or eliminate subsidies to big oil. the five biggest u.s. oil companies in the u.s. made more than $900 billion in profits in the past nine years. and $36 billion in the first quarter of this year. a 38% increase from the same period last year. executives from five of the biggest oil companies will testify before a senate committee today. tara mergener is in washington with details. good morning, tara. >> good morning to you, betty. the big five will certainly be on the defense today, accused of not paying their fair share. democrats are demanding to know why the world's richest oil companies deserve tax breaks that make them even richer. >> we're here to say, enough already, to big oil. you're doing just fine on your own, and you don't need the taxpayer giving you an extra handout to help. >> reporter: fueled by high gas prices, and a soaring deficit, members of the senate finance committee are expected this morning to grill top executives from chevron, shell, conoco

phillips, bp america, and exxon mobil. the so-called big five receive billions of dollars in subsidies every year. but now some lawmakers want that to stop. so do drivers paying top dollar at the pump. >> feels like we're getting gouged. >> i don't think they've done anything for us except taken our money. >> reporter: senate democrats have introduced the bill they say would lower the federal deficit by repealing $21 billion in tax breaks over ten years. but republicans and even some democrats argue that's not the answer. they fear taxing the oil companies will only end up hurting consumers the most. >> higher gas prices, fewer american jobs, at the expense of american energy, that's their plan? no thank you. >> reporter: the oil industry is also expected to come out swinging against the proposal. in a statement ahead of today's hearing, conoco's chief

executive described the planned tax reforms as, quote, unprecedented and un-american. and the house passed the bill yesterday, requiring the government to act within 60 days on offshore drilling permits. it's one of three bills republicans believe would boost government revenues and domestic energy. but it's unlikely, betty, to clear the senate. >> all right, tara mergener live in washington for us. thank you, tara. here in new york, it is reported that two men are under arrest this morning for an alleged terrorist plot. one source tells "the new york times" the suspects are of north african descent. now details of the alleged plot are not available, and it's still unclear what prompted the arrest. pakistani officials say a missile strike launched from a u.s. drone aircraft today killed at least five alleged militants. they say the missiles were fired at a car traveling north of waziristan, a taliban stronghold. it is the third such drone attack since the raid on osama bin laden's compound. u.s. officials say osama bin laden's private handwritten

journal, recovered from his hideout in pakistan, paints a picture of a man in charge. the officials say the journal and other documents make it clear bin laden was not just a figurehead. he communicated with followers using computer flash drives, delivered by couriers. bin laden pressed followers to find new ways to attack the u.s. and sought to kill americans in large numbers. his goal was to force the u.s. to withdraw from the middle east, and he suggested striking a variety of targets, including smaller u.s. cities, and trains, as well as aircraft. it's reported this morning that detainees at the guantanamo bay prison may soon be allowed visitors. the guantanamo bay facility currently holds 172 prisoners. "the washington post" reports that international red cross has been in discussion with the pentagon about setting up a visitation program. well, they are assessing the damage in parts of iowa and texas this morning following a new surge of violent weather. two tornadoes struck the

southwest iowa town of lennox yesterday afternoon. officials say 45% of the town was damaged. in texas, yesterday, strong winds and thunderstorms caused damage in the dallas-ft. worth area. severe weather could also be on tap for flood victims along the mississippi river. rain and strong thunderstorms are forecast for much of the mississippi delta today and tomorrow. floodwaters there have already turned farmland into swamps. the high water is surging downriver, with a crest not expected in the delta region until next week. randall pinkston reports. >> reporter: neighborhoods are unrecognizable in tunic ka cutoff, mississippi. 300 homes are all under water. building codes require new construction to be raised above the 100 year flood plain. but for many residents who want to rebuild, it's just too expensive. >> i don't think anybody will be able to afford to built their house 17 feet in the air. >> reporter: the red cross is providing shelter for displaced residents.

many don't know when or if they'll be able to return home. >> it's hard to save it, you know what i mean? if you hadn't been there you just don't know. >> reporter: across the state, it's a similar vision of heartbreak. >> you see something like that, you just kind of want to turn around and go the other way. >> reporter: this was supposed to be a banner year for delta farmers, with bountiful crops and good prices. but the floods have them counting up losses, not profits. >> it's going to be devastation. >> reporter: this is part of harold mays' 400 acre plot of corn, soon to be ruined by floodwaters. >> today, we're high and dry. our crops are dry. our fields are dry. everything looks great. a week, week and a half from today, we expect to lose every bit of it. >> reporter: this warm in yazoo county is already partially submerged. the army corps of engineers is trying to prevent further damage. patching up potential soft spots along the levee system. president obama signed a disaster declaration wednesday, covering 14 mississippi counties. for some, the aid can't get here

fast enough. randall pinkston, cbs news, yazoo county, mississippi. president obama holds budget talks with senate republicans today. he told democratic senators yesterday they need to be flexible. the president discussed the budget negotiations during a town hall meeting right here on cbs. >> i think that what we're going to end up having to do, probably, is to set some targets and say, you know, those targets have to be hit. if not, automatically some cuts and tax increases start taking place. >> you can see the entire town hall meeting with president obama coming up on this morning's "early" show. overseas, nato continued its attacks on government positions in libya. overnight at least four air strikes hit tripoli. the attacks follow libyan leader moammar gadhafi's first tv appearance in 11 days. since march 31st, nato has carried out more than 2,400 air strikes in support of rebels trying to oust gadhafi.

in southern spain, they are searching for more victims after two earthquakes killed at least ten people. in one town yesterday, a church tower collapsed while a tv crew was doing a report. the reporter escaped. but elsewhere, dozens of people were injured by falling debris. in china, northwest of beijing, residents are battling a fierce sandstorm that's cut visibility to near zero. the red sand is driven by winds up to 60 miles an hour. it's not expected to ease until late today. on the "cbs moneywatch," stocks were down on asian markets today. ashley morrison is here in new york with the latest on that. good morning, ashley. >> and good morning to you, betty. well, not a good day for the asian markets. tokyo's nikkei and hong kong's hang seng each lost more than 1% and the price of oil plunged, losing 6% to trade at about $100 a barrel. today, wall street gets the latest on inflation and retail sales, as well as those weekly

jobless claim numbers. on wednesday, stocks took a hit with energy stocks leading the way down. the dow lost 130 points, wiping out all of its gains for the week. while the nasdaq gave back almost 27. new numbers released overnight show foreclosure filings were down 9% from march to april, and down 34% from this same time a year ago. but analysts say the decline is because of processing delays and not a sign of recovering in the housing market. from january to march, the foreclosure process took an average of 400 days to run its course. after getting hammered by the stock market crash and recession, 401(k) balances have reached a 12-year high. according to fidelity investments, americans average 401(k) balance at the end of the first quarter was just under $75,000. that's a 12% jump from a year ago, and the highest since fidelity started keeping track. and here's your one and only chance to own a piece of royal and what could be history.

the bizarre headpiece worn by princess beatrice at the wedding of prince william and kate middleton is going to be auctioned off on ebay with proceeds going to charity. the flamboyant creation made headlines and divided opinions. and betty, technically, it's called a fascinator. not a hat. >> i wouldn't fasten that to my head. what would you do with that? is that a centerpiece? >> it's a conversation piece. >> yeah, that's about all it is. i wonder how much that's going to make on ebay. interesting. ashley morrison, thank you so much for that. just ahead on the "morning news," who says it's not that hard to quit smoking? well, the head of philip morris, that's who. plus bed bugs. they are not only disgusting, scientists now think they spread disease. this is the "cbs morning news." i'm phil mickelson, pro golfer.

if you have painful, swollen joints, i've been in your shoes. one day i'm on p of the world... the next i'm saying... i have this thing called psoriatic arthritis. i had some intense pain. it progressively got worse. my rheumatologist told me about enbrel. i'm surprised how quickly my symptoms have been managed. [ male announcer ] because enbrel suppresses your immune system, it may lower your ability to fight infections. serious, sometimes fatal events including infections, tuberculosis, lymphoma, other cancers, and nervous system and blood disorders have occurred. before starting enbrel, your doctor should test you for tuberculosis and discuss whether you've been to a region where certain fungal infections are common. don't start enbrel if you have an infection like the flu. tell your doctor if you're prone to infections,

have cuts or sores, have had hepatitis b, have been treated for heart failure, or if, while on enbrel, you experience persistent fever, bruising, bleeding, or paleness. get back to the things that matter most. good job girls. ask your rheumatologist if enbrel is right for you. evangelist billy graham is in an asheville, north carolina, hospital this morning being treated for pneumonia. a hospital spokesman said the

92-year-old checked himself in last night. he remains fully alert and in good spirits. this may surprise millions of smokers who try to quit each year and fail. philip morris' ceo says quitting isn't that hard to do. louis camillen was responding to a critic who said smoking is addictive and deadly. a longtime smoker, he conceded that tobacco is addictive, but insisted, quote, it is not that hard to quit. now to the latest finding on bed bugs. disgusting as they are, it is long believed that they do not spread disease in humans. but, a new study suggests that that belief may be wrong. manuel gallegus reports. >> reporter: they're about the size of an apple seed, they lurk in your home, and they bite. now, a new study shows bed bugs can also carry superbag bacteria like mrsa. >> they're drug resistant bacteria. we still have antibiotics that are useful in treating them, fortunately. but they have been troublesome. >> reporter: the five bacteria

infected bed bugs were discovered in vancouver, canada, in a poor community where the pesky insects and mrsa are on the rise. mrsa infections start off on the skin but can prove deadly if they get into the bloodstream. the findings of the small study raise a bigger question. can bed bugs actually spread disease in humans the way mosquitoes and ticks do? >> they're a bother. but they're not known to transmit any infections. so this raises some interesting and provocative questions. >> reporter: last summer bed bugs took a big bite out of the big apple. closing down clothing stores, movie theaters, even hotels. and experts say beware, the insects thrive as the weather heats up. >> violating. it's a violating experience. >> reporter: damon had a miserable time with bed bugs in his apartment last year. >> you feel like you're having guests in a home, and -- and you want them to leave. but they're having lunch on you. >> reporter: it's not clear how the bed bugs in the study got the bacteria. scientists say it may have come from biting their human hosts. manuel gallegus, cbs news, new

york. all right. so you've been warned. straight ahead your thursday morning weather. and in sports, the decision paid off. dwyane wade and lebron james are going to the eastern conference championship. [ male announcer ] it's the softest touch, when you need it the most. it's the comfort of a scent you've always loved. it's freshness that lasts for 14 days. it's snuggly softness you depend on. ♪ it's value you can feel good about. it's what makes the world a softer place. ♪ let's snuggle. to stay healthy. but did you know fiber choice can help support your overall well-being?

every tasty tablet has prebiotic fiber from fruits and veggies... that lets your good bacteria thrive and helps support your immune system. fiber choice. an easy way to defend your health everyday. learn more about prebiotics and get a free sample at fiberchoice.com. here's a look at the weather in some cities around the country. new york, sunny, 70 degrees. miami, partly cloudy, 90.

chicago, thunderstorms, 85 degrees there. dallas, thunderstorms there, 88. and l.a., a sunny 73. time now for a check of the national forecast. the latest satellite picture shows a few rain clouds in the northwest. and the middle of the country is dominated by a vast storm system with heavy rain and gusty wind. later today, another wave of severe thunderstorms will hit the midwest. tornadoes are possible from texas to iowa. and there will be scattered showers in the northwest, but lots of sun in the southwest. in sports, it was game five against boston, and the heat were not to be denied. in the first, miami's dwyane wade made a ridiculous over-the-shoulder shot. look at that. down the stretch, though, lebron james had a couple of threes, and then made the steal to seal the deal. the heat burned the celtics 97-87. miami moves on to the eastern conference finals. in oklahoma city, the thunder took the fight out of the grizzlies. kevin durant scored 19 points to

help blow out memphis 99-72. oklahoma now leads the series 3-2. in baseball the padres went on a hitting spree. against the brewers. first inning, chris denorfia led off with a home run. by the end of the game, the padres had racked up a season-high 23 hits. they blew out milwaukee 13-6. in the american league, kansas city at new york in the fifth, the yankees robinson got nailed in the head by the royals' nate adcock. he had to leave the game. in the eleventh, eric hosmer sit the sac fly for the winning run as the royals beat the yaks 4-3. when we return, another look at this morning's top stories. and some critics don't like it but president obama welcomes a hip-hop poet to the white house. hip-hop poet to the white house. i love that my daughter's part fish. but when she got asthma, all i could do was worry ! specialists, lots of doctors, lots of advice...

and my hands were full. i couldn't sort through it all. with unitedhealthcare, it's different. we have access to great specialists, and our pediatrician gets all the information. everyone works as a team. and i only need to talk to one person about her care. we're more than 78,000 people looking out for 70 million americans. that's health in numbers. unitedhealthcare.

what we could learn about the three people killed, their ties to the university.. and a possible motive. new hope that injured giants fan bryan stow could be coming home. the major progress he's made, in the past few days. complaining about your commute? why a new study says the bay area has some of the best public transit in the country. plus, big oil gets grilled over high gas prices. join us for cbs 5 early edition ... beginning at 4:30. ,,

on the "cbs morning news," here's a look at today's weather. a major storm system is bringing severe weather from the southern plains to the great lakes. sunny and windy conditions linger in the southwest. it's mild and mostly clear in the northeast. here's another look at this morning's top stories. top oil executives testify on capitol hill today. they'll be questioned about high gas prices, big profits, and the tax breaks democrats want to limit, or cut altogether. and it's reported that two men are under arrest for allegedly plotting a terrorist attack in new york city. "the new york times" says they were taken into custody late yesterday. it's finally official, former speaker of the house newt gingrich is attempting the ultimate political comeback, running for president in 2012. >> i'm newt gingrich. and i'm announcing my candidacy for president of the united states. because i believe we can return

america to hope and opportunity, to full employment, to real security, to an american energy program, to a balanced budget. >> in 1994, gingrich led republicans to take control of the house. but his history of marital problems could be a problem with conservative christians. and last night was poetry night at the white house. an all-star lineup of poets and musicians was invited with president obama starting off the festivities. >> in the spirit of full disclosure, i actually submitted a couple of poems to my college literary magazine, and you'll be pleased to know that i will not be reading them tonight. >> despite an outcry from some republicans claiming his lyrics celebrate violence, grammy award winning rapper common performed. the white house defended inviting him, saying reports about the rapper were being deliberately distorted, and that everyone invited had a wonderful evening. take a listen. >> in front of buildings, their

eyes look older, it's hard to this morning on "the early show," a special town hall discussion with president obama. i'm betty nguyen, this is the "cbs morning news." [ dog treats drop ] everybody likes to get a bonus... ...at the petsmart big brands bonus sale. save 20% on all great choice® dog and cat toys, select dog bags and more. exclusively at petsmart.

well, it looks like curiosity almost killed a cat in pennsylvania, when it got stuck in a pipe. ems crews couldn't get it out, so they cut the pipe and took it to the local vet. after sedating the feline. the doctor tried to squeeze it out. that didn't work so she broke out the tool kit and used a saw to set the kitty free. an attorney in indianapolis has been thrown off facebook. but not for anything he posted or did. simply because of his name. mark zuckerberg. the same as facebook's founder. the indianapolis zuckerberg was suspected of posing as his billionaire namesake. >> i've gotten e-mails from

people on facebook thanking me for finding their lost relatives because of facebook. then they would say lend me some money so i can fly and go meet them. >> facebook officials have apologized and say they are in the process of reactivating zuckerberg's account. in texas a teenage good samaritan found an envelope stuffed with cash and is now learning a valuable lesson in civics. you can fight city hall, provided enough people, including the mayor, are on your side. bud gillette from our dallas station has the story. >> oh, i am very proud of her. we didn't have no idea how much money it was because we never counted it. >> reporter: betty and her granddaughter ashley donaldson were looking for cats at a dallas petsmart back in february when they found a chase bank envelope with $2,000 in cash. ashley insisted on taking it directly to the bank. >> we never hesitated. we just took it over there. we just was thinking about somebody that was poorer than we was. maybe that was their whole paycheck, and that was their rent money. >> reporter: when no one claimed

it after 90 days ashley thought she'd be getting it. except dallas officials said the city policy was that so-called found money went to the city. >> well, that was a big disappointment for her. >> reporter: calls went pouring in to city hall, and mayor dwayne carroway. >> my heart went out to say, hey, give her the money. but now there's a system in place that we will have to follow, because here in the city of dallas we must dot our "is" and cross our "ts." >> reporter: dallas police revealed that under state law ashley might get the money after all. but possibly not until august. ashley is a freshman at sheffton high school in plano where the principal tells me he has fielded phone calls all day from people offering support, and in some cases money. >> we was only doing the right thing. and i -- but she said she would do the same thing over again. >> reporter: people apparently recognized the right thing in her. donors, including members of the dallas police association are raising money right now to say, well done. bud gillette, cbs 11 news. coming up a little bit later on "the early show," a town hall

meeting on the economy with president obama hosted by erica hill and harry smith. also the latest on the top five big oil executives testifying on capitol hill today. and details on the sweeping changes the faa is proposing for how pilots are trained. that's the "cbs morning news" for this thursday. thanks for watching, everyone. i'm betty nguyen. have a great day. d ,,,,,,,,