this morning on "early today," batten down the hatches, the atlantic hurricane season kicks into high gear as claudette makes landfall in florida. the obama administration signals it may be willing to compromise on a key component of its hlth care plan. deadly maneuver. russian stunt jets collide during an air show rehearsal russian stunt jets collide during an air show rehearsal near moscow. captions paid for by nbc-universal television hello and good morning. i'm christina brown. today we begin with claudette. residents of florida's panhandle had just one day to prepare as tropical storm claudette made a swift entrance as the first

major storm to make landfall this season. though it never quite made it to hurricane strength, claudette's soaking rains and strong winds may be just a taste of more storms to come. nbc's kristin dahlgren joins us live from panama city, florida, with the latest. good morning. >> reporter: hey there. right now just some light rain here, light winds in panama city. but we are expecting heavier band looking at the radar to come through in just a short time here. some places can expect to get up to 6 inches, even more locally. so the rain really going to be the signature of this storm. but claudette's lasting impact may well be a reminder of how quickly a hurricane season can change. claudette came ashore on florida's panhandle with lashing winds. >> 55, 60, even 65-mile-an-hour gusts. >> reporter: and pounding surf. while to the south near ft. myers a tornado spawned by the system ripped into more than 20 homes. all hallmarks of a tropical

system. but for many, a bit of a surprise. claudette seemed to come out of nowhere, growing quickly to a tropical storm on the same weekend the season's first two storms also formed. >> why has it been such a slow start? high pressure over the gulf of mexico. nothing has formed there. very few storms coming off the coast of africa. >> reporter: as well as el nino, or warm water in the pacific, which tend to suppress storms in the atlantic. but that comes with a warning. 1992's hurricane andrew formed during an el nino year, and was the first named storm of that season on august 17th. >> we're just now getting into the time frame where we on average see our first storm reach hurricane intensity. >> reporter: bill is now strengthening in the atlantic. while what's left of ana struggles, the three systems that formed this weekend have those in the strike zone starting to pay attention.

relieved that this season's first land-falling storm wasn't stronger. >> thankfully it's passed us by. >> reporter: well aware hurricane season still has 14 weeks to go. and we are learning that claudette's powerful surf may have proved deadly here in panama city. one victim was pulled out of the water late yesterday, a man in his late 20s. it's still unclear exactly how he died and whether the storm had a direct effect, but either way, officials are warning people to stay out of the waters which could still be dangerous this morning. >> all right. thanks so much, kristin dahlgren joining us live from panama city, florida. facing fierce backlash from gop leaders, the white house appears ready to concede on part of its health care reform plan by abandoning the idea of giving americans the choice of government-run insurance. health and human services secretary kathleen sebelius said yesterday the alternative, known

as the public option is, quote, not the essential element. it now appears the administration is leaving the door open instead to a health insurance cooperative where americans could get insurance through a nonprofit, nongovernmental consumer entity. while that koch myself could win over republicans it would be sure to anger some core obama supporters who see the public option as a way of forcing insurance companies to price competitively. well, across california, fire crews and hundreds of families are keeping a close watch on wildfires, fanned by hot temperatures and dry winds. 11 blazes have been burning across the state. firefighters have been making progress on one big fire along the santa cruz mountains. hundreds of residents there returned home after an evacuation order was lifted. that fire, has burned at least ten square miles. now here's a look at some other stories making news early today in america. a car collided with a firetruck

in chicago, sending seven people to the hospital. the firetruck was actually responding to a call when the sedan smashed into it. both passengers in the car were critically injured. five firefighters were also hurt but they are expected to be released from the hospital. police shut down a major marijuana growing operation in central california. more than 2300 plants were discovered in the bust. the estimated street value was over $9 million. a suspect found sleeping nearby injured himself while running from police and was flown to a hospital. elsewhere, in chicago, the city saw a much lower turnout for its annual gun buy back program. corporate donations once again funded gift certificates of $10, $50 and $100 in exchange for firearms. while the program collected almost 2,000 weapons this year, it was far short of the 6,800 guns handed over last year.

in washington, d.c., one teenager took the hard road to raise awareness for homeless children. take a look. the 14-year-old walked from orlando to the nation's capital, stopping at homeless shelters to draw attention to kids, he says, aren't able to help themselves. the young activist hit the pavement for two months covering 1100 miles in the process. now for a look at your national and regional weather, here's nbc meteorologist rafael with the weather channel forecast. good morning. it looks like mother nature is certainly unleashing her wrath. >> yes, it's going to be an interesting day today. we have the heat continuing in the east, especially the northeast, but we also have tropical storm claudette. i want to give you the latest. you can see on the infrared satellite it continues to sit offshore making landfall this morning, but lots of rain going to be the big story for the panhandle. we have a check of the radar, the heaviest rain expected east of pensacola. most of the heaviest rain still offshore but it's going to continue to push on in. it's going to be a wet day along

i-10 today. some severe thunderstorms possible as well. a quick look at the satellite, nothing going on except the heat. forecast highs today well into the 90s once again. 93 in new york city. 94 in d.c. lots of sunshine as well. watch out for a few storms in places like chicago and detroit but heat is the story in the big apple. now a check of the weather outside your door. for portland, the heat continues, 8 8 degrees, warm and sticky. watch out for a few thunderstorms in places like grand rapids and also indianapolis with temperature in the 80s. 93 in philly. now here's a look at other stories. >> thanks so much. well, japan's economy jumps, oil slides and so much for those secret swiss bank accounts. your early morning business headlines are straight ahead. plus, internet buzz and a crazy plot had this film going into the weekend as the favorite

at the box office. we'll tell you where it finished. you know what's bigger than tiger woods winning a major? tiger woods not winning a major. epic battle at the pga. plus, a new world record. you're watching "early today."

good morning and welcome back to "early today." i'm christina brown. here are some of your top headlines this morning. today parts of chicago will be shut down because of the city's money problems. in an effort to balance the budget, public libraries, health clinics and most city offices, including city hall, will be closed. milwaukee mayor tom barrett has been hospitalized in stable condition after a man attacked him with a metal pipe. the mayor was at a state fair when he tried to help a grandmother and granddaughter caught in a domestic dispute. he suffered hand and head

wounds. the suspect fled the scene but was later arrested. in russia fighter jets crashed while they practiced for the annual air show. one pilot died, another broke his spine. five others on the ground were also hurt when one of the planes crashed into a residential building. scientists tracking minute movements along two massive tech tonic plates in the northwest say if those plates snap, the seattle/tacoma area could be hit by a 9.0 or greaterette quake. earlier data on the tremors centered a possible earthquake much farther from the seattle/tacoma area. home to at least 3.6 million people. the last mega quack ke in janua estimated a 9.2 and produced a tsunami that reached japan. here's an early look at how wall street will kick off the day. the dow opens at 9,321 after dropping 76 points on friday.

the s&p lost 8. the nasdaq fell 23 points. taking a look at overseas trading, in tokyo, the nikkei dropped 328 points, while in hong kong the hang seng plunged 755 points. the world's second largest economy is showing signs of life this morning, but investors are not completely sold on its staying power. healthy demand for japanese electronics drove that nation's economy up 0.9 of a percent last quarter. the first expansion in over a year. however, analysts expected to see growth of a full percentage point, prompty weary investors to sell off shares of major players sony, niece san and nintendo. crowd with a downward slide. oil prices fell below $67 a barrel, following a 4% decline during the previous trading session. one sign wall street is heading

into historically light trading in august, waning investment in short stocks, or betting the price of an overvalued stock will fall. short interest ratio for the s&p 500 is at its lowest level in a decade. the swiss bank ubs has agreed to turn over the names of 5,000 clients after the irs sued the world's second largest wealth manager for more than 52,000 names on suspicious of tax evasion. as its grounds for giving up the information, ubs cited an agreement between the two countries involving criminal investigations. the housing industry is on deck this week with the national association of home builders set to release updated numbers today. and the number of new homes to begin construction will be reported tuesday followed by existing home sales friday. as earning season winds down, there are still some retailers yet to report second quarter earnings. a few to keep an eye on this week, home depot, hewlett-packard, sears and the

gap. finally company officials from a hotel in venice hope posting a deal for a half price romantic weekend will boost sales. the surprise mistakenly listed for the equivalent of 14 cents brought in 1400 bookings. a spokesperson for the hotel says it plans to honor the accidental deal. a bolt of lightning in berlin and some big popping in atlanta leaves the phillies past the braves. he's the first guy ever to do it against tiger woods. your early morning sports headlines are straight ahead. claudette bears down on the gulf. we'll have your regional forecast coming up in a few minute. you're watching "early today."

if you're just waking up this is "early today." in sports with the pga championship within his grasp, tiger woods let the once unthinkable happen, proving even he isn't invincible after all. here is nbc's bill sue ward with a look at all your sports headlines. >> hi, everybody. tiger woods has had some epic battles over the years. he almost always comes out on top. but not this time. at hazeltine in minnesota, tiger entering the final round of the pga championship with a two-stroke lead. y.e. yang hanging tough. yang chipping onto the green. that looks good.

that looks great. into the hole for the rarest of eagles. yang catching tiger and passing him for a one one-shot advantage. to 17. woods a stroke behind. putting for par. needs this bad. no dice. tough time all day on the greens. and heed, that's the reason he lost. yang had a little something to do with that, too. on 18, yang clinging to a one-stroke lead when he hits the shot of his life. 206 yards over a tree. take a look here. right next to the hole. stops about eight feet away. he knows he's got it. just to put the cherry on top on his sunday, yang for birdie on the closing hole, into the cup to be the first player to beat tyinger in a major after woods held a 55-hole lead. more importantly for yang, he's the first asian-born player to win a major title. yankees and mariners in seattle. derek jeter making history, breaking the 36-year-old record for most hits by a shortstop. added bonus, jeter gets an rbi on the double. but the yanks lose 10-3. phillies and braves in

atlanta. ryan howard crushing a pair of homers, accounting for all of philadelphia's run production. he has 30 dingers on the year. phils beat the braves 4-1. new touch of gray let's you keep some gray hair. touch of gray for the generation that swore it would never get old. usain bolt giving the crowd a show in berlin. gentleman mayne make can sprinter shattering his own world record in the 100 meters, crossing the line at 9.58 seconds. he is, without a doubt, the fastest man alive. that's your early look at sports on "early today." i'm bill sue ward. two pretty big names bomb at the box office this weekend. your early morning entertainment headlines are straight ahead. plus, talk about walking a fine line. you're watching "early today."

welcome back on this monday. we're watching heavy rain across the gulf coast, places like mississippi, alabama, tallahassee can see drenching rains from claudette. across the northeast the big story will be the heat. temperatures in the 90s in those big cities. if you're watching us on wcnc tv in raleigh, north carolina, come out of your shell to learn about turtles when you meet the animals at the museum of natural sciences. that's your eastern event of the day. christina? >> thanks so much. now here's an early look at this morning's headlines in entertainment.

when is number one at the box office the double bonanza? when it costs more than to produce. "direct 9" featuring a first time director and cost of unknowns opened at number one than a better than expected $39 million. the $39 million budget may have cost-conscious studios rethinking big budgets. g.i. joe came in second at $22 million. "the time traveler's wife" opened third with more than $19 million. women not interested in explosions made up the audience. jeremy piven in the used car comedy "goods" came in sixth. finally, so much for the drawing power of high school musical star vanessa hutchens. "bandslam" belly-flopped into 13th place. this comes from wlwt news 5 in cincinnati, ohio where a

nearby manson dare devil went for a long walk for a very long way high above the ground. the tight rope walker safely made it 801 feet on a wire suspended 662 feet in the air. this is the highest walk ever for the 30-year-old from the famous high wire family. to further appreciate the high-flying feat the steel cable he crossed was only as wide as a nickel. i'm christina brown.

>> a very good monday morning. a hot one today. high pressure in control. as far as our companies go, let's take a look. it looks like we're 78 to 76 downtown. 69 at the airport. 70 in easton. 72, cambridge. 72, ocean city. a nice mild start. we're going to head up into the low 90's today. 88 to 93. partly cloudy skies and dry with the presence of that high pressure still over the mid-atlantic. winds out of the southwest. the sun setting just before 8:00 tonight at 7:59. this is tropical storm claudette that made landfall overnight in the panhandle of florida. moving very slowly to the

northwest, losing strength overland. it will probably be entering southwest alabama later this morning. i've got more on the very active tropics as well as your seven-day coming up. >> see you in a bit. 4:57. here's a look ahead to 11 news today. >> police need your help to find a man who shot two people at the inner harbor this weekend. i'll have the details. >> president obama appears ready to compromise in the health care reform debate. >> and checking on your morning commute. so far looking pretty good. we'll update you on the major roads.

>> good morning. i'm mindy basara. >> and i'm stan stovall. thanks for joining us. >> we'll get to our big story. first a check of the forecast. a nice weekend. >> beautiful. >> nice morning. >> it is nice. we're going to be hot again this afternoon. but the humidity by the afternoon hasn't been too bad. so patchy fog p