raising the stakes. another ominous credit rating threat for the u.s. as debt ceiling negotiations take a break. federal case. the fbi opens an investigation into whether rupert murdoch's news corp tried to hack the phones of 9/11 victims. and reefer madness, mexican soldiers bust the country's largest marijuana plantation ever. good morning. i'm lynn berry. those stories and more are straight ahead. this is "first look" on msnbc. we start this morning with the hard bargain. as the nation's deficit clock ticks closer to default, lawmakers will regroup today after a week of tense white

house negotiations. the president will hold a news conference this morning. while on capitol hill, a backup plan proposed by senate minority leader mitch mcconnell appears to be gaining momentum. nbc's kristen dahlgren joins us from washington with more. good morning. >> good morning, lynn. the president holding his second press conference taking it to the american people as he tells lawmakers to take it back to their caucuses and figure out some way forward. they have a ray day off from the face to face negotiations. yesterday's meeting focused on taxes with republicaning standing firm on their pledge not to raise them. meanwhile, mitch mcconnell and harry read are trying to work together on that backup plan. it's complex, but would give the president authority to raise the debt ceiling, and it could give lawmakers a way to save a little face. it would put off the debate on the deficit until 2013. some republicans still call it a

sellout plan. reid says they're still looking for a grand bargain, but this is at least an alternative they're working on. that as another credit rating agency, standard & poor's say it may downgrade the u.s. credit rating. lawmakers will be meeting individually today on both sides. they could come back together this weekend. we'll have live coverage of the president's news conference beginning at 11:00 a.m. eastern time right here on msnbc, the place for politics. last night on the rachel maddow show, rachel asked house financial services committee chair barney frank from massachusetts to explain why standard & poor's has taken the step of putting the u.s. on negative credit watch. >> it's not because our economy is in any serious trouble or we can't repay. it's the right wing that has taken control of the republican party might temporarily refuse to pay because they don't think it will make any difference. there may be some sense on the

part of some that, oh, people can't be that crazy. but they haven't lived with these people for six months the way i have. yeah. they are that divorced from reality. that's a better word than crazy. this is an indication if we don't make the payment, you're going to see serious trouble. i think it's very clear with those ratings coming out that if the date passes, august 2nd, when we are now going to be unable to make some of these payments that we've got, that's going to cost us some money. it's going to cost us -- we're fighting, as you said, to get a recovery. paradoxically, the biggest problem is uncertainty, that that's the biggest problem. nothing has created more uncertainty than this right wing threat not to pay our debts. >> each night rachel maddow takes on the biggest tories of the day with in-depth analysis. lean forward with the rachel

maddow show only on msnbc. both outrage and inquiries into the rupert murdoch phone hacking scandal are growing as an american probe has been launched in addition to those already taking place in england. speaking today in australia, u.s. attorney general eric holder confirmed the fbi is investigating allegations murdoch's news corp tried to hack into the phones of 9/11 victims. those and other accusations of phone hacking and bribing police for information led murdoch to shut down his london-based "news of the world" tabloid. lawmakers were forced toish you a summons to murdoch and his son james after the pair refused to appear before parliament to answer questions. both quickly complied. the ones fearless father and son, their reign may be waning. meanwhile murdoch's own tv network in england just reported

news international ceo rebekah brooks has resigned. controversy continues to swirl around the military's don't ask don't tell poll seeshlgs banning openly gay service members. despite congress voting to end the 17-year-old policy last year. yesterday the obama administration asked a federal appeals court to reconsider an order it made last week for an immediate end to don't ask don't tell. the court ruled since the process of repealing the policy was well under way, there was no reason to continue enforcing it. but the justice department is arguing ending the ban now would eliminate a timetable established last year that was designed to promote an orderly transition. here is your first look at some other news going on around america. a severe storm led to a tragic turn of events in utah. heavy rain washed away a road, creating a massive sinkhole that caused a father to crash into the edge of the 30-foot deep and

40-foot wide crater instantly killing his daughter. another motorist drove into the sinkhole but suffered only minor injuries. if anyone is in need of a long weekend, it's this seattle window washer. he dangled 60 feet above ground after slipping out of his seat. firefighters soon arrived and safely returned him to the ground. bad planning is blamed for an eruption of chaos in dallas early thursday morning. thousands scrambled to get a shot at housing assistance, making a mad dash for a limited supply of vouchers. several were trampled including children. at least eight people suffered injuries before police restored order. finally, are you hungry? check this out in florida. one south beach restaurant serves up dishes with such outrageous decorations that diners actually pull out their

cameras before digging in. the hot spot has generated a strong following that keeps coming back for those over-the-top presentations as well as the food. i'd just go back for the smores. now we turn to nbc meteorologist bill karins with the weather channel forecast. this is about dinnertime for us is what people don't understand. so that kind of video is cool. >> i decided i'm going to put whipped cream on my waffles this morning. chocolate sauce. >> and spark hers. >> sparklers will get us in trouble. the heat is on. this has been a period of extreme heat in the middle of the country that will continue this weekend. if you're joining us from areas like minneapolis, chicago, omaha, st. louis, you had a little break. you've enjoyed a couple days that haven't been so hot or so humid. that's about to change. we also have gorgeous weekend conditions for everyone pretty much from new england down

through the mid atlantic. even you will have to deal with a heat wave come next week. keep your eye on the jet stream which is dipping down through the west and after the east coast and also this area of blue, this high pressure. i'm going to fast forward into the middle of next week. all of a sudden the map gets a lot brighter. the jet stream lifts to the north, bringing the cooler air from canada. that's not going to happen. that will remain to the north. the heat ridge will expand all the way up to the canadian border and eventually to the east coast pushing into southern new england next week. that's kind of a heads up. next week is going to be the hot eftd week of the summer, i think by far from the rockies to the eastern seaboard. right now it still feels like 89 in dallas this morning. 90 in wichita. this is where the humid air is. we don't have any heat index problems on the eastern seaboard because the humidity levels are still lower. today the heat, once again on full blast, 104 today in oklahoma city, 102 in dallas. now the heat is starting to

expand, up to 94 in omaha and 92 in st. louis. everyone on the east coast, enjoy another great day with low humidity. the exception, lynn, down along the gulf from georgia, mississippi, louisiana, thunderstorms are in their forecast today. >> bill, thanks so much. big ben takes the wind out of wall street's sales. your first look at this morning's business headlines is straight ahead. the nfl lockout is nearing an end. the roger clemens trial is over. is there such a thing as an all-star game hangover? if you're the yankees, the answer is yes. you're watching "first look" on msnbc. [ female announcer ] now, give dry, damaged hair a whole new life!

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look," i'm lynn berry. two delta air lines planes collided while taxing on the runway of boston's logan international airport. one passenger was treated for a possible neck injury.

federal prosecutors say an army private was arrested in arizona after trying to board a united airlines flight with h f explosives. the government said he stole it while attending a training course. the fbi released images of bundles of cash received from james whitey bulger after he was arrested along with his long time companion. authorities are trying to figure out how the former fbi most wanted fugitive lived for years in california without police knowing. soldiers in western mexico have discovered the country's largest marijuana plantation ever. a huge field covering almost 300 acres, four times larger than the previous record. and visitors to yosemite national park will be treated to a rare nighttime phenomena this

weekend, a moon bow, like rainbow, but it's the moon. it appears when light through the full moon shines through mist released by the park's many water falls. here is your first look at wall street. the dow opens at 12,437 after falling 54 points yesterday. the s&p dropped eight points, the nasdaq sank 34. taking a look overseas this morning, in tokyo the nikkei rose 38 points, but in hong kong the hang seng lost 64. stocks fell thursday as fed chief ben bernanke backed off hintsz that more stimulus from the feds could be on the way, clarifying statements that drove markets higher wednesday. bernanke stressed the central bank would inject more money into the economy only if things got much worse. now is not the time. that immediately sent stocks falling, led by techs and financials. wall street's so-called fear index rose, thanks also to no

progress in debt ceiling negotiations. in fact, after the bell, standard & poor's warned even if lawmakers do reach a deal, the risk the u.s. will loose its aaa credit rating in next three months has risen considerably. news corp fell 3% after the fbi said it would investigate the phone hacking of 9/11 victims. jpmorgan chase rose after reporting higher than expected profit. after hours, google shot up 12% on earnings that blew past all expectations. conoco phillips rose after the country's third largest oil company said it would split in two, one an oil producer, the other a refiner oopsz. on the data front, last week unemployment applications fell to a three-month low. wholesale prices last month had their biggest fall in a year and a half. but june's retail sales barely rose. bhp bill ton is buying petro

hawk energy for a little more than $12 billion. finally, after one casey anthony juror reportedly sought thousands for an interview, a florida lawmaker has proposed making it a felony for jurors to profit from civic service. coming up, the blue jays peck the yankees, hope for the nfl and the first day of the british open. plus being a good athlete doesn't necessarily mean being a good golfer. bill, that looks like your swing. sports is straight ahead. you're watching "first look" on msnbc.

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breathing with copd is no small thing. ask your doctor about spiriva. welcome back to "first look." i'm lynn berry. in sports, prior to last night for nine straight years the new york yankees had won their first game back after the all-star break. eight blue jay runs in the first inning last night put an end to that streak. here is mario solis. >> the all-star break is over. it's time for the second half of the baseball season. someone forgot to tell that to the yankees. chalk this up as an all-star break hangover. bar toll low cologne giving up eight runs in the first inning. the cubs wasted a two-run lead in ninth against the marlins. greg dobbs putting florida on top with an rbi double. luckily the throw gets away from

the kaefrp and he jogs in to score the go-ahead run. the nfl lockout is nearing an end. the league and players have agreed to a $120 million salary cap. all that's needed is to hammer out a few more issues and the lockout could be over as soon as tonight. in the second day of testimony, the judge declared a mistrial in the roger clemens mistrial. this after the judge could not guarantee a fair trial because prosecutors showed the jury evidence that had been ruled out. a major blunder by the government prosecutors turned into a home ruj for clemens. after day one of the open, a veteran and wide-eyed amateur on top of the leaderboard. thomas born shares the board with 20-year-old tom lewis. the second round is underway in england. aaron rogers, tony romo attempting to hit off a high tee and it didn't go well. after a swing and a miss, roger breaks it in half.

romo gets distance, but not with his ball. jordan makes contact. the ball flies onto the green. just one problem, it was a green on the hole behind him. will someone please end the lockout in the nfl and nba, these guys need to get back to their day jobs. that's your look at sports. for another quick look at the weather, here is nbc meteorologist bill karins. bill, i like tennis, it's like the mix for me. i'm not a big golfer. >> with a racket would be easier instead of those stupid golf clubs. ic, horrible sport. good morning everyone. it's going to be a beautiful day. it's a beautiful start. just like yesterday. enjoy it while it lasts. next week looks very hot in many areas including new england and mid atlantic. today, 84 in new york, d.c. at 85. as we go into saturday, starting to get warmer, temperatures in the upper 80s.

the humidity is still low. a great time for the beach, the lake or the pool. by the time we get to sunday, it's just like saturday, another great day with a lot of sunshine very much like summertime. as far as the rest of the country goes, a lot of wet weather in the southeast. the drought has been horrible. we need the wealth weather and it will cool you off late in the afternoon. the heat in the middle of the country is going to be brutal. watch what happens by sunday here, lynn. even minneapolis, kansas city, everyone up there near 100. that's where the humidity is high. it's not going to be a fun period next week. enjoy now. >> bill, thank you. it is a big weekend for hog wort fans all over the country. plus the expectations are huge for potter. perhaps record-shattering business for the final big screen installment. your first look at entertainment is straight ahead. you're watching "first look" on msnbc. no white jeans after labor day?

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welcome back to "first look." i'm lynn berry. last night on "late night with jimmy fallon," he spoke about one congressman's claim that had an all-too-familiar ring to it. >> ohio congressman bill johnson says his twitter account was hacked yesterday after an image of a naked man was posted on his page. you know what they say? when the lord taketh a weiner, he then giveth a johnson. congressman johnson said someone hacked his account and posted a naked picture. this week was spain's annual

running of the bulls, or as bulls are reporting it or as the bulls reported, this was the annual kicking of the idiots. spain held the running of the bulls. it's not as scary as the event in the u.s., the running of sarah palin. you don't want -- can't touch it. can't touch this. >> tonight jimmy welcomes actress marisa tomei and billy ray cyrus. that's tonight weekends 12:35, 11:35 central on your local nbc station. time for your first look in the nbc entertainment news. the long awaited ""harry potter and the deathly hallows" part two, looking to break the midnight debut, opening day and opening weekend. considering how many theaters it's in, how many 3d screens it's on, and the pre sales

figures, most experts think it will break the first two but just fall short of "the dark night's" total. this weekend it finished number one with roughly $150 million. after two staggering weekend "transformers dark of the moon" will be humbled, but with a note too humble $25 million good enough to take the stop shot. the surprisingly r rated comedy "horrible bosses" should finish third with $15 million. i saw you come in, you had your pointy hat, the striped shirt. >> you are in the minority on the harry potter thing. >> i didn't say i was a harry potter fan. >> you haven't watched any of the movies. you seer so happy it's over. i'm lynn berry. this is "first look" on msnbc.

stay tuned, willie geist is next. not a lot of progress after another day of debt meetings at the white house with john boehner saying it's like sitting in a room with two people not speaking the same language. the question is what, if anything, can president obama do at his press conference to advance a process that seems to be stuck in quicksand. meanwhile, breaking news this morning as rupert murdoch's right hand in great britain resigned over the newspaper hacking scandal. the question is what will the fbi uncover in its new investigation of murdoch's media empire here in the states. today is the day for all your harry potter kids and adults who read books about boy sorcerers. the question is how long have you been camping out for opening night of "harry potter and the deathly hallows" part two? it's way too early for this.