nick of time. after an excruciating weekend in washington, lawmakers finally reach a deal to avoid the nation's first ever financial default. brutal crackdown. dozens are reportedly dead as syrian forces launch an assault on protesters. and fire in the hole. a rumbling mount aetna lights up the skies of sisly. a very good morning to you. those stories and much more straight ahead. this is "first look" on msnbc.

we begin this morning with a budget breakthrough. president obama announced last night that lawmaker mis-washington have reached a last minute agreement to raise the nation's debt ceiling before tuesday's deadline. nbc's tracie potts joins us from washington with the details. good morning to you. >> reporter: veronica, good morning. the deal will raise debt ceiling and deal with most of the tough questions well before the 2012 elections. the white house and top democrats and republicans agreed on over $2 trillion in budget cuts, allowing the u.s. to borrow that much more. >> it will allow us to avoid default, it will allow us to pay our bills, it will allow us to start reducing our deficit in a responsible way. >> reporter: here's the deal. almost a trillion in cuts now, much of it from the military, another trillion and a half decided by a panel of democrats and republicans in the fall, including tax reform and medicare. if they don't agree or if the government overspends, automatic cuts kick in.

>> the united states of america will not for the first time in our history default on its obligations. >> this agreement won't make every republican happy. it certainly won't make every democrat happy either. >> reporter: this morning leaders on both sides meet with their members to convince them to vote yes. some are reluctant. >> on the surface it looks like a satan sandwich. >> reporter: but the markets are happy. asian markets opened up this morning on news that it looks like the u.s. will be able to pay it bills after tomorrow. congress will also be required to vote on a balanced budget amendment by the end of this year. veronica? >> tracie potts in washington. thank you. to syria now where security forces have unleashed the latest in a month long series of brutal crackdowns leaving scores dead across the country. the death toll estimated between 75 and 140 people is expected to climb. harry smith from our english broadcaster reports.

>> reporter: the picture is now emerging from the city suggesting one of the biggest and most brutal crackdowns in the regime's recent history. according to eyewitnesses, the army had been preparing for this moment for several day,s surrounding the town an waiting only the eve of the holy month of ram made "today" to suppress the opposition pfs it is here that the current president's father sent in troops to crush an uprising. eyewitnesses say tanks fired shells at demonstrators and army snipers from nearby roofs. other r0r9s say some troops have defected. these pictures allegedly showing them standing on their tanks, jubilant demonstrators shouting the army and the people are one.

the reaction from the international community has been swift and the language strong. president obama and foreign secretary william hague both said they were appalled by events. the president condemned syrians for using torture, corruption and terror. one human rights group says syrian forces have also stormed a suburb in the west of damascus and if the claims prove to be true, unrest is growing ever closer to the heart of the syrian regime. in norway this morning, there is reason to believe that attorneys for tcould be lookinga new defense strategy. the head of a forensic panel says it is unlikely the admitted assassin will be declared legally insane because he appeared to be in control of his actions at the time of the attacks. according to the doctor, the careful planning and execution

of the attacks would make it difficult to argue they were the work of a delusional mad man. a lawyer for the two american hikers jailed in iran on spy charges says the court will announce it verdict by next week. josh fattal and shane bauer have been held since july 2009 after saying across the border into iran from iraq. a third hiker, sarah shroud was returned last year. now here is your "first look" at some of the other news going on around america today. in ohio, a test flight of a wright brothers replica plane led to the tragic end for two pilots before both died after their plane crashed in a rural area. authorities were notified of the crash an hour after the plane took off. the cause is under investigation. in wag, a father and son snapped photos of a giant jellyfish they discovered while exploring tide pools. the pair initially thought the

four foot creature was an alien, but an internet search confirmed its sea life origin. in california, overcast skies failed to put a damper on the annual u.s. open of surfing. a large crowd watched as surfers battled choppy water to kacht perfect wave. the event lasts all week and is expected to bring out world class competitors who will be vying for the $100,000 grand prize. finally in new jersey, over 100 balloons with vibrant colors and special designs soared toward clear skies over the weekend. thousands were captivated at the annual festival of about a along. the event is billed at largest hot air balloon festival in north america. beautiful. now for a look at the national weather, we turn to nbc meteorologist bill karins with the weather channel forecast. i've never seen anything like that live. i'm wondering if it's better in person. >> have you done a hot air

balloon before? have you? >> yes. it's a fun, tranquil experience. >> is it scary? >> the landings are interesting. because you hit and you tip over. but the pilot will treat you well. well, good morning, everyone. let's talk about what happened this weekend. the heat continues. there really weren't many areas that weren't in the nintz in weekend. almost everyone was on the hot side. the exception being the west coast. and this week, all the heat is going to expand in the middle of the country. it's going to be a brutal week. if you're anywhere from the red river from dallas to oklahoma city and everywhere in between, and the heat expanding to the north, kansas city, even chicago you get a taste of it. the exception will be up there in northern new england. yesterday it was 99 in washington, d.c. now, the humidity was a little bit lower, but 99 is 99. even new york city was 91, boston 91. not many major city it is that weren't in the 90s. a few spots were in the hundreds

including dallas at 103. even denver was 99. usually you get one side of the country or the other, but we're talking from the 90s east, everyone was hot. and look at this morning, it hasn't cooled off. this is a ridiculous number for this time of the morning. 90 degrees in dallas. the all-time record low highs. so in other words this is the warmest morning we've ever seen, 86 degrees. so you're not getting relief at night. and this is not the week to be in the big d. 106 today, 107, 105, this is going to be one of the hottest weeks in dallas that we've seen in over a decade and that's on heels of already an incredibly hot summer. by the end of this week, something either will get our attention. it looks like the next tropical disturbance is now forming, could easily become a tropical depression by the end of day. this would be emily when it does form. here is puerto rico, virgin islands.

this will start heading towards populated areas. the reason i'm bringing this up, a lot of our weather computers think that this should be a hurricane or tropical storm somewhere mere the bahamas or florida by the time we get to the upcoming weekend. forecast wise today, there's the heat in texas. and everyone in new england joining us, bring your umbrella today. thunderstorms will be widespread late this afternoon. so a lot of weather going on and in the a lot that we like. >> just once i'd like you to use the word brutal not in a forecast. how the markets react to the debt deal, major job cuts at a major bank and the home of a hollywood legend hits the markets. your first look at this morning's business headlines is straight ahead. back in the nfl, the red sox make franchise history and need a laugh, we've got you covered. you're watching "first look" on msnbc. chronologically i'm sixty years old.

is it the new forty, i don't know. i probably feel about thirty. how is it that we don't act our age? [ marcie ] you keep us young. [ kurt ] we were having too much fun we weren't thinking about a will at that time. we have responsibilities to the kids and ourselves. we're the vargos and we created our wills on legalzoom. finally. [ laughter ] [ shapiro ] we created legalzoom to help you take care of the ones you love. go to legalzoom.com today and complete your will in minutes. at legalzoom.com we put the law on your side.

like a ramen noodle- every-night budget. she thought allstate car insurance was out of her reach. until she heard about the value plan. dollar for dollar, nobody protects you like allstate.

welcome back to "first look." and here are some of the top stories making news this morning. in southern afghanistan, ten police officers and a child were killed in a suicide bombing at a police compound. the taliban claimed responsibility for the attack. in egypt, jose mubarak has been formally summoned to appear at a trial for the country's 18 day uprising. he's accused of ordering the killing of protesters. there have been questions about the 83-year-old's health, although activists say it's been used as an sxooexcuse to postpo proceedings. the trial opens in wednesday. in mexico, the alleged leader of a brutal drug gang has been arrested. police say jose acosta hernandez admitted to ordering the killings of 1500 people. investigators believe he was behind last year's attack that killed a u.s. consulate employee, her husband and the spouse of another consulate worker in juarez. in ohio today, the

sentencing phase begins for an ex-marine convicted of killing 11 women. anthony sowell had pleaded not guilty. if jurors decide against the death penalty, he faces life in prison without the possibility of parole. and in sicily, mount etna sent lava above its peak. it's come back to life with eruptions that are attracting concern. and now here is your "first look" at wall street. the dow opens at 12, 143 after falling 96 points friday. the s&p was down #, the nasdaq lost 9. taking a look at overseas trading this morning in tokyo, the nikkei rose 131 points while in hong kong, hang seng added 223. bankers and investors breathed a sigh of relief on news of the debt deal. the question is how long will a relief rally last.

markets across asia pick abouted up steam as the deal was announced by president obama rallies as much as 2% by midday. oil futures also shot up alongside riskier bets after tumbling in the wake of friday's revised gdp which showed the economy grew at a slower than expected pace. the price of gold fell 1% from it record highs. wall street futures also jumped on the debt deal news signaling a strong start to the trading week. however, experts are raising caution flags warning that once the initial relief wears off, investors will likely focus on sluggish economic growth and the continued threat of a credit rating downgrade. elsewhere, jobs will be a big focus ahead of july's employment numbers due out friday. traders are hoping for more than june's disappointing 18,000 new jobs. also this week, automatic though makers will have their monthly job figures for july.

belt tightening at hsbc has europe's biggest bank slashing some 10,000 jobs. the bank also announce it's selling nearly 200 of its upstate new york branches to first niagara financial for about $1 billion. and finally, if you are in the market for a house with a hollywood history, you can buy katharine hepburn's former connecticut estate for a cool $28 million. oh, yes. which mlb players will be packing their bags for new homes and close but no cigar for detroit pitcher justin verlander. plus two timely double plays help the cubs and a five game losing streak. your first look at sports is straight ahead. you're watching "first look" on msnbc.

>> announcer: there's a new breakthrough for men experiencing hair loss. introducing the new extreme lasercomb from hair club. it's quick, easy and affordable, and the extreme lasercomb is revolutionary. here's how it works. d.h.t. forms around the hair follicle, which shortens the lifespan of your hair. the extreme lasercomb combats hair loss, causing the hair follicle to grow thicker, stronger hair. this new technology is f.d.a.-cleared and clinically proven to work in 93% of candidates. call now for more information and get this free info kit mailed to you in a discreet envelope. hair club is the largest hair restoration provider, offering all proven hair loss solutions: non-surgical bio-matrix process, hair transplants, hair therapies and now the extreme lasercomb. >> hair club is not about one tool. it's about all proven hair loss solutions. what separates us from all the other hair loss companies is that only hair club provides all

the proven technologies and solutions for hair loss that are available. >> announcer: imagine looking in the mirror and turning back time with more hair. call now to see if you're a candidate. call this number to get more information on the extreme lasercomb and all other proven options to get your hair back. just look at these amazing results from hair club's many proven options. >> i found myself wearing hats all the time, and if someone out there has that same feeling, they need to go call hair club right now, because it's changed my life completely. i'm very excited about my hair. >> he was a good-looking guy before, but with his hair now, it's just this newfound confidence and there's a glow about him you just can't match. >> announcer: hair club provides customized hair loss solutions based on your age and type of hair loss. with locations nationwide, there's a hair club center near you. >> what's important is how you feel about yourself and how you look, and if you want to look better and if you want to feel better about yourself, hair club is the way to go. >> i'd look at it in the back and i'd start seeing thinning, and then it just kept falling out. getting my hair back was the best thing that ever happened to me. >> announcer: call for a free

hair analysis and you could have more hair in as little as four weeks. hair club, america's hair loss experts since 1976. call now for your free info kit and free hair analysis. welcome back to "first look." in sports, while lawmakers were in a race against time with a debt deadline, major league times had a ted lideadline of t own to beat. >> good morning. the trading deadline has come and gone, but not before a flurry of transactions around the league. the cardinals picked up from the dodgers. he was 0-1 against the cubs. play of the might turned in by kerry wood, and they turn the double play. that ends the st. louis rally. cubbies win 6-3. red sox acquired a pitcher from the mariners and completed their best july in franchise history. pedroia puts boston head in the

seventh. sox beat the white sox 5-3. jimenez from the rockies. royals beat the tribe 5-3. two home runs against the pirates and in the 10th, he ends it with an rb chlt single. pirate dismakerates did make a . detroit up 3-0, but check it out, he show boats as he trots to first. next batter, weaver throws at his head. he's ejected and not very happy. on the other side, ver lander had a no-hitter going into the eighth. struck out nine. tigers win. plaxico burris is officially back in the nfl after spending two years in prison. he signed a one year deal with the new york jets. nascar, paul menard won the

brickyard 400. and this is a mix between super cross and comedy hour. there are rocks, wood portions and a ton of thrills and spills. it's a very difficult sport, it made its x games debut last night and i think it will be bringing people smiles for years to come. and that's your first look at sports. and now for another quick look at the weather, here's bill karins. i said earlier you're not allowed to use the word brutal in your forecast. >> oppressive, how about that one? we'll use that instead. and in case you're wondering, now that we're done with july, today being august 1st, i don't usually get a lot into the climate number, but this has been an historical statement. i was reading a statement that this july was the hottest july ever in washington, d.c. and baltimore. and not only that, it was the hottest month ever recorded in the history of those weather

stations. which usually go back about 100 years about so that this has been a very historical summer. areas especially around d.c. to baltimore and philadelphia, new york city, your fifth hottest july ever. and those temperatures continue to be very warm in the cities. we had a little thunderstorm blow through morning city in the middle of the night. it cooled off the air a little bit. there's also a batch of thunderstorms coming down just outside of buffalo and in between buffalo and rochester, so western new york, you may see flashes of lightning in the sky and get a quick down pour. later on today, everyone will have a chance of thunderstorms. it will be hot and dry once again. most areas in the 90s. d.c. today around 98. we do cool it off in d.c. a little bit towards the eptd of this week, but it's been an incredibly hot summer and it continues. >> hottest july ever on record? >> not just july ever. all time month hottest ever for washington, d.c. >> all right. you're allowed to use the word brutal. the final harry potter film reach as magical milestone. plus everyone's little blue guys managed to smurf up a big surprise at the box office.

your first look at entertainment is straight ahead. you're watching "first look" on msnbc. over the south pacific in 1943. plus everyone's little blue guys i got mine in iraq, 2003. u.s.a.a. auto insurance is often handed down from generation to generation, because it offers a superior level of protection and because u.s.a.a.'s commitment to serve the military, veterans, and their families is without equal. begin your legacy. get an auto insurance quote. u.s.a.a. we know what it means to serve. can be even more powerful, with precise pain relieving cream. it blocks pain signals fast for relief precisely where you need it most. precise.

only from the makers of tylenol. precise. be kind to your eyes with transitions lenses. transitions adapt to changing light so you see your whole day comfortably and conveniently while protecting your eyes from the sun. ask your eyecare professional which transitions lenses are right for you. ask your eyecare professional for your transitions certificate of authenticity for your chance to win instant monthly prizes or our $20,000 grand prize! a vacation on a budget with expedia. make it work. booking a flight by itself is an uh-oh. see if we can "stitch" together a better deal. that's a hint, antoine. ooh! see what anandra did? booking your flight and hotel at the same time gets you prices hotels and airlines won't let expedia show separately. book it. major wow factor!

where you book matters. expedia.

welcome back to "first look." on the last late night with jimmy fallon, jimmy was in a singing mood and to back him up, brian williams made a special appearance. >> i want to slow gin the news and i'm not the only one. >> with the deadline it reach a deal looming this tuesday, democrats and republicans find themselves at a stalemate over

the nation's debt ceiling. that's the cap on the amount of debt our government can borrow. >> oh, yeah. i can't get no sleep at night because all the moaning and groaning on capitol hill. obama's on his knees begging for compromise in positions. you know what they say. anytime democrats and republicans come together, somebody's getting screwed. >> somebody's getting screwed. ♪ it's all right >> brian williams. such a good sport there. tonight jimmy welcomes lou dobbs and musical guest tonigon yards. all right. it is time now for your first look at entertainment news. the box office battle between

cowboy, aliens an smurfs ended in an unexpected tie. cowboys and aliens took in around $36.2 million about $4 million short of expectations. those were slightly disappointing numbers considering it big budget and big stars. but cowboys got smurfed by the competition. the smurfs also took in an estimated $36 about.2 million, about $15 million more than projected. a box office rare. and those numbers could shift. the other new release crazy stupid love took in $19.3 million coming in fifth behind captain america and harry potter. and speaking of the boy wizard, harry potter keeps working it magic. it's crossed the $1 billion mark worldwide after only 17 days. only eight other films have reached that milestone. the most recent being pirates of the cacaribbean. and you gave it a standing

ovation. >> people did clap at the end and i give it my $15 ticket. sdl very nice. this is "first look" on msnbc. stay tuned, because "way too early" starts right now. there are still some very important votes to be taken by members of congress, but i want to announce that the leaders of both party this is both chambers have reached an agreement that will reduce the deficit and avoid default. the default that would have had a devastating effect on our economy. >> yes, we have a deal. after weeks of will they, won't they negotiation, president obama and congressional leaders reached a deal sunday night on the debt. the question he is, why are leading progressives this morning saying the president surrendered to the tea party? we'll talk to john heilemann. meanwhile the international markets that thread ethreatened