market jitters. stocks plunge around the world and wall street could see more of the same today. judgment day. will same-sex marriage resume today in california? it's up to a federal judge. and deadlocked. the jury in the corruption case against former illinois governor blagojevich asks the judge for help. this is the "cbs morning news" help. this is the "cbs morning news" for thursday, august 12, 2010. captioning funded by cbs good morning, everybody, and thanks for joining us. i'm betty nguyen. this week's stock market plunge was felt around the world and wall street may be set for yet another tumble. on wednesday alone the dow lost

265 points and almost 2.5%. the nasdaq was down 68.5 points, more than 3%. all the major indexes are in the red for the year, so let's get more from ashley morrison here in new york. good morning. >> good morning to you. the bad news continues to pile up this morning, fueling fears the global economic recovery is in serious trouble. asian markets picked up where wall street left off with investors rushing to cut their losses. major markets were down across the board. japan's nikkei dropped 0.9%, rebounding a bit after hitting its lowest point in more than a year. wall street worries we may be headed into deflation when wages and prices drop, cutting business profits leading to more job losses and reinforcing the downward spiral. >> i think they're looking at it as possibly a 50/50 shot. >> reporter: today's round of economic news will not help the latest report on home foreclosures shows another surge

with nearly 93,000 homes repossessed in july. that's a 9% jump over june and the eighth month in a row the pace of foreclosures has increased. and tough times are turning more spenders into savers. the latest retail figures show shoppers kept a tight grip on their wallets last month with nonauto retail sales falling by almost a full percentage point. that's especially worrisome as consumer spending accounts for two-thirds of economic recovery. >> we've never really seen the recovery to match the talk we've seen about the recovery. >> reporter: the job front remains bleak. 14 million americans are out of work and the unemployment rate is hovering near 10%. there were 60,000 more job openings in june than the month before, which means there are five unemployed workers competing for every one job. >> we'll get more news on jobs today when the labor department releases the weekly jobless claims. most analysts are not expecting good news.

betty? >> ashley, thank you for that, joining us live in new york. this is a day many gay and lesbian couples in california have been anxiously waiting. they'll see if they can continue with wedding plans or continue with a long wait. tara mergener is in washington with more on this. good morning. >> reporter: good morning. if the stay is lifted, same-sex marriage will be legal in california, but the ruling will be watched closely from coast to coast. this could be the day eric ross and his partner get to say "i do." >> this is my application for a marriage certificate. >> reporter: judge vaughn walker is expected to announce today whether same-sex marriages in california can resume immediately or if couples will have to wait for a federal appeals court ruling. last week he struck down the voter-approved ban on same-sex marriage known as proposition 8, calling it unconstitutional. but walker issued a temporary stay on the ruling while he heard arguments from both sides.

>> if the stay is lifted today, we want to make sure we can get in and get married in case another stay gets put back on or reversed. >> reporter: currently same-sex couples can marry legally in five states and washington, d.c. but the ninth circuit court, where the case will be heard next, could make it legal in many more states. that's the last thing supporters of the ban want. ron prentice, chairman of protectmarriage.com says he hears from angry californians every day upset proposition 8 was reversed by what they call an activist judge. >> he said, moral values should have nothing to do with law. well, they always have. and they always will. >> reporter: the case could eventually end up at the u.s. supreme court where a decision would impact the entire nation. and it could take up to two years for the case to reach the supreme court unless it's expedited. betty, back to you. >> tara mergener joining us live in washington, thank you. now to the corruption trial

of former illinois governor rod blagojevich which may or may not have a hung jury. blagojevich and his wife were in court wednesday when jurors sent out a note saying after 11 days of deliberations, they can't agree on all counts. they asked the judge for guidance. blagojevich's lawyer says it's unclear what that means. >> i understood it to be that they can't reach a -- make a decision, and it seemed on like every count with a specific act. we don't know what it means. the judge doesn't know what it means. >> the judge asked for clarification, including whether jurors have reached agreement on any of the charges against blagojevich. deadly floods in central iowa have forced hundreds from their homes. three straight nights of heavy rain drove creeks over their banks wednesday. whole farms were submerged and residents had to be rescued in boats. east of des moines a teenage girl drowned and ten others had to be rescued when floodwaters

swept three cars off roads. in asia, worse flooding to tell you about, some of the worst on record has killed thousands and left millions without shelter or food. celia hatton has that story, beginning in china, where flood-producing rains caused a disastrous landslide. >> reporter: he was pulled out feet-first but breathing after being buried in a mammoth landslide in northwestern china's gansu province for 58 hours. it's likely this man will be the last to be found alive. more than 600 are missing in a sea of mud that slid down the mountain and crashed over the valley town below. an army of workers are digging through the mud in an attempt to recover 1,100 corpses under the debris. the bodies are starting to decay, says this medical worker. if we don't take precaution, diseases will spread. more than 3 1/2 inches of rain are forecast for the area on friday. water is also causing havoc in

pakistan. relentless monsoon rain continues, feeding the worst floods the country has ever experienced. the numbers are staggering. at least 1500 are dead, 300,000 homes destroyed, 14 million people have been effected. >> we are now targeting up to 6 million people with food assistance. >> reporter: the united nations is pleading for $500,500 in aid. the u.s. is already contributing more than $70 million in assistance and also sending 19 heavy-lift helicopters to distribute supplies. many in pakistan are scrambling to salvage what little they can from the rising water. celia hatton, cbs news, beijing. in other news a military jury at guantanamo bay has recommended a 14-year prison sentence for osama bin laden's former cook. the sudanese cook pleaded guilty to supporting terrorism in a

plea deal. he's not expected to serve the full 14 years. in a related story, al qaeda is pleading for donations. the appeal turned up on a militant website. it includes an old audio recording of osama bin laden urging muslims to donate and a plea from an al qaeda commander saying many fighters in afghanistan lack pay and equipment. that commander was killed by a u.s. air strike in may. just ahead on the morning news -- new details in the plane crash that killed former senator ted stevens. plus, oops, some highway workers paint themselves in a corner with this embarrassing mistake. corner with this embarrassing mistake. [ woman ] alright, so this tylenol 8 hour lasts 8 hours.

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how are you? good, how are you? [ male announcer ] aleve. proven better on pain. take off that mask. lose that heavy makeup look, and slip into lightweight coverage that really fits. clean makeup. easy breezy beautiful covergirl. in poland, 104 skydivers are trying to break the european record for the number of divers linked up in an air formation. so far they failed to make the formation before they had to break apart to open their parachutes. the previous record is 99 skydivers. they'll try again today.

the work on the bottom kill relief well in the gulf of mexico is still on hold because of concerns about the weather. crews stopped drilling on tuesday, but the system in the gulf did not turn into a tropical storm. heavy rain is forecast for the area, so it's unclear when the drilling will resume again. once that happens, work on the bottom kill might be finished by early next week. the senate interrupts its august recess today for an unusual one-day session. senators will vote on a $600 million bill to fund additional agents for the u.s. border with mexico. they'll also pass a resolution honoring the late former senator ted stevens who died monday in a plane crash. now to the investigation of that crash that killed stevens and four others. bad weather is believed to have played a major role in the accident. bob orr reports. >> reporter: it was supposed to be a 22-minute flight on this float plane from a remote alaskan lodge to a fishing camp where former senator ted stevens and eight others hoped to catch silver salmon.

but when the plane lifted off, it immediately flew into dicey weather. rain, gusty winds and patchy fog. now federal investigators are focusing on the possibility the pilot never saw the hillside he hit. veteran alaska bush pilot john was the first to spot the wreckage. >> i believe he was in the clouds when he hit. i don't think he saw anything. i think he probably lost ground contact, applied full power and was trying to outclimb the mountains when he hit. >> reporter: it's clear the aircraft hit the hillside at low speed and most likely belly-first. >> he was climbing when he hit or it would have been a lot worse. >> reporter: that impact helped four passengers, including nasa chief o'keefe, survive the crash. the survivors were wearing rubberized fishing gear. finding the cause of the crash will be difficult. the plane, a 53-year-old de-h de

havilland otter was not equipped with black box and there are to radar or air traffic control tapes to help say what went wrong. the four people injured in the crash are still in the hospital. investigators have not yet interviewed them. bob orr, cbs news, washington. switching gears now. someone in north carolina needed spellcheck. a highway painting crew made a spelling error on the word "school," reversing two letters. student returning to classes at this school thought it was pretty funny. the error, though, was fixed but no doubt the laughs will continue. straight ahead, your thursday morning weather. in sports, a clutch ninth inning rally for the bronx bombers. [ woman ] most of us don't get enough fiber in our diets.

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here's a look at the weather in some cities around the country. new york, showers, 83. miami, partly cloudy, 90. chicago, sunny, 93. partly cloudy in denver with 92 degrees there. and l.a. is a sunny 82 degrees. time now for a check of the national forecast. the latest satellite picture shows scattered clouds entering the northeast and swirling over the southeast. it's mostly clear over the southern plains and over the rockies clouds are moving toward the plains. later today, the remnants of a tropical depression could bring heavy rains and gusty winds to parts of the southeast. in the northern plains, severe thunderstorms are expected. and the central and southern plains, well, they stay hot and humid. in sports, the yankees got a comeback win in texas. in the ninth inning marcus

thames singled in the go ahead run as new york beat rangers 7-6. the yankees' lead in the american league east is now 1 1/2 games. bill hall had two of boston's four home runs in a decisive win over toronto. the 10-1 victory is the ninth for the red sox against the blue jays this season and keeps boston five games behind the yankees. in the national league, roy oswalt got his first win since joining the phillies. he pitched seven scoreless innings against the dodgers and raul ibanez doubled as philadelphia shut out los angeles 2-0. and in the tenth inning, atlanta's brian mccann hit a grand slam home run as the braves beat houston 8-2. atlanta still has a 2 1/2 game lead over the phillies in the national league east. and new york mets' relief pitcher francisco rodriguez was in police custody after last night's game. police say rodriguez, seen here in tuesday night's game, was not arrested.

he will be charged for what police call, quote, a physical assault on his father-in-law, who went to a hospital. according to police he had a scrape on his face and a bump on his head. when we return, another look at this morning's top stories. and flight of fancy. a jetblue flight attendant is catapulted to cult status. attendant is catapulted to consult status. just want to say natural instincts looks healthy. we want to prove it. take the natural instincts challenge. get healthier color in 10 minutes. guaranteed. or, we'll buy you 2 boxes of your old color. for details, go to naturalinstincts.com.

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now there's nothing left standing between you and a satisfying breakfast. introducing special k® low-fat granola. with 50% less fat than the leading granola and 5 grams of fiber per serving, it's a satisfying way to help you manage your weight. special k® low-fat granola -- a taste of freedom. on the "cbs morning news," here's a look at today's weather. triple digit temperatures are expected across much of the south. cooler weather is finally taking over the northeast. there will be severe thunderstorms in the northern plains. and heavy rains in the southeast. here's another look at this morning's top stories. a federal judge in california will announce later today whether same-sex marriages may resume immediately or if couples must wait out the appeals process.

former illinois governor rod blagojevich is also waiting to learn if there's a hung jury in his corruption trial. jurors told the judge yesterday they can't agree on all counts. actress zsa zsa gabor is back home this morning. an ambulance returned the 93-year-old to her bel air home wednesday. she underwent hip replacement surgery last month after she fell trying to get into her wheelchair. her husband says she feels well enough to flirt with the guys who took her home. jetblue flight attendant steven slater is finding out what it feels like to be a celebrity. he is now famous for his in-flight meltdown, which has made him the most talked about people in recent days and he's inspired countless fans. michelle miller reports. >> reporter: with his partner by his side, steven slater seemed to be taking his strange new celebrity in stride. >> how do you feel? >> relieved. >> what are you going to do today? eye got a lot of things to do. >> reporter: what happened exactly on jetblue is still in

dispute but that didn't stop filmmakers in taiwan from reimagining his confrontation and his dramatic exit on the evacuation slide, beer in hand, after unleashing on the unruly passenger on the intercom. >> he said to [ bleep ] who just told me to [ bleep ] go [ bleep ]. it's been a great 28 years. i'm out of here. >> reporter: he's become a folk hero to some, surprising even himself, as he told "the new york times." >> for 28 years i thought about it, but you never think you're going to do it. >> reporter: there's no denying the chord he struck from 100,000 facebook fans to free steven slater t-shirts, even a song. ♪ the flight attendant and a hero ♪ >> reporter: it's even reached into the white house where press secretary robert gibbs made a tongue-in-cheek reference to slater. >> there's no truth to the rumor that i've added an inflate bl exit to my office. >> reporter: so far jetblue is

trying to play this for laughs, too, writing on their blog, sometimes the weird news is about us. you can't make this shtick up. but anger on the job is real. job satisfaction is the worst it's been in two decades. >> he really is a symbol and a representation of people's frustration in the workplace. >> reporter: but prosecutors aren't so understanding. they say slater's impulsive exit could have hurt someone on the ground. and for that, he's no hero. michelle miller, cbs news, new york. in suburban chicago an unusual sister act. three sisters gave birth within hours of each other in the same hospital, on friday and saturday. two girls and one boy. what are the chances of that? their obstetrician says it wasn't planned that way. to add to the happy news, a fourth sister living in california gave birth to a boy on monday. the mothers say they are happy the cousins will grow up together. sounds like a lot of diapers. this morning on "the early show," back-to-school fashions. i'm betty nguyen.

this is the "cbs morning news." there's oil out there we've got to capture. my job is to hunt it down. i'm fred lemond, and i'm in charge of bp's efforts to remove oil from these waters. bp has taken full responsibility for the cleanup and that includes keeping you informed. you may have heard that oil is no longer flowing into the gulf, but our spotter planes and helicopters will keep searching for any oil. we use satellite images, infrared and thermal photography to map and target the oil. we're finding less oil every day, but we've still got thousands of vessels ready to clean it up. local shrimp and fishing boats, organized into task forces and strike teams. plus, specialized skimmers from around the world. we've skimmed over 35 million gallons of oil/water mixture and removed millions more with other methods.

i grew up on the gulf coast and i love these waters. as long as there's oil out there that could make it ashore, i'm gonna do everything i can to stop it. bp's commitment is that we will see this through. and we'll be here as long as it takes to clean up the gulf.

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in the news, gone! the campaign sign the gone from the police commissioner's yard. also, a faker got out of paying his check. and should you eat shellfish from the bay. it could be making some people sick. more news and the first traffic report of the morning in a few minutes. ,,,,,,

>> >> hello, in 25 secondings it will be 5:00. some of you are wake up to evidence of rain and everyone has humidity. we'll have th