opposed to 112. >> that's going to do it for us. we thank you for watching. "nightly news" is heading your way next. >> i will see you at 11:00. on our broadcast tonight -- the bully pulpit, the president weighs in on the arrest of a black harvard professor in his own home. so does the cop who made the arrest. a crackdown on corruption, unbelievable roundup today by the feds. growth industry. a breakthrough in cloning research. what does it mean for humans? life lessons. putting summer to work for kids. a big idea that is catching on and making a difference in a lot of young lives. also tonight, is your state on the list of best places to do business? on the list of best places to do business? "nightly news" begins now. captions paid for by nbc-universal television

good evening. it came at the end of a press conference almost entirely about health care. a reporter asked president obama about the arrest of a man he knows, a distinguished professor at harvard, who was trying to enter his own home and was then mistaken for a burglar. police were called, tempers flared, and professor henry louis gates, jr., ended up in handcuffs and spent a few hours in the slammer before charges were dropped. complicating things we learn tonight there apparently had been a previous break-in while the professor had been away on a trip. the president last night said the police there acted stupidly. the police beg to differ. we begin with all of it tonight from nbc's ron allen. >> reporter: the aest of henry louis gates seemed to touch a nerve with president obama. while admitting he did not have all the facts about what happened when the harvard scholar was arrested at his home for disorderly conduct the president strongly criticized the cambridge police.

>> i think it is fair to say number one any of us would be pretty angry. number two, that the cambridge police acted stupidly. in arresting somebody when there was already proof at they were in their own home. >> i could not believe my ears this morning when i heard obama make that statement. >> reporter: that choice of words has ignited a strong emotional response. the arresting officer, sergeant james crowley told a local fox tv station he is not a racist. >> what is your reaction to that? >> there will be no apology. >> now and ever no apology? >> yes. >> reporter: colleagues say crowley is an expert who teaches cadets how to avoid racial profiling.

crowley's department today defended his actions. >> i do not believe his actions in any way were racially motivated. returning to his vacation home, gates refused to answer questions today, but last night on cnn, he vowed to keep speaking out. >> if this can happen to me in harvard square this can happen to anybody in the united states, and i'm determined it never happens to anybody again. >> reporter: while the two main players are giving conflicting accounts of what happened the debate swirls around them. was his arrest justified or racial profiling? should the president of the united states be commenting at all? white house press secretary robert gibbs tolreporters on "air force one" today, "i think there is a point in this where it becomes clear the situation as it was originally called in is not the current situation. at that point, cooler heads likely should have prevailed on both sides." but some say the president went too far. >> it was stupid to have been arrested in that situation for professor gates to have been arrested. but i think the president could havetopped short at labelling the entire police department as stupid. >> reporter: others convinced

the gates' case is an example of racial profiling applauded the president for addressing the issue. >> i'm sure he thought about it. and i accept it. i may have said something worse. it is not an issue that is void of emotion. >> reporter: while gates and crowley refuse to apologize, the spokesman insists the president has no regrets about what he said. ron allen, nbc news, new york. all of this brings us to our chief white house correspondent and political director chuck todd. chuck, to distill this, did you get the sense there today that the white house would like any of this back today? >> well, privately you talk to some aides they do wish the word "stupidi "stupidity" could be taken back. the president today in an interview that will air later seemed to stand by his critique. take a listen. >> i think that it doesn't make sense with all the problems we

have out there, to arrest a guy in his own home if he is not caing a serious disturbance. >> now, of course, the frustrating thing for the white house is all of this as you brought up at the ginning of the broadcast, brian, is stepping on their push for health care. today supposed to be the 11th straight day that the president used a public forum to push health care. in fact, he actually was dealt a setback. he was in cleveland at a townhall meeting and he admitted that senator reid, senate majority leader, was not going to get a bill out of the senate by the augt recess. that they were going to have to take more time. he accepted that as fact. his chief of staff, by the way, spent all day on capitol hill still trying to convince the house to get a health care bill out by the august recess. they don't want to be dealt a double setback in both the senate and the house. so it's -- distraction on a day where they had a lot of behind the scenes work to do, brian. >> chuck todd on a rainy night at the white house. so it goes in washington. chuck, thanks. a huge roundup in new jersey this morning.

and tonight nearly four dozen people including three city mayors and two state legislators are under arrest. charges here include bribery, money laundering, and no one has seen anything quite like this case. the story tonight from our justice correspondent pete williams. >> reporter: federal agents started the roundup at 6:00 a.m. arresting mayors and state legislators in new jersey and rabbis in a parallel case in new york. 44 in all. >> new jersey's corruption problem is one of the worst if not the worst in the nation. corruption is not only pervasive it has become engrained in new jersey's political culture. >> reporter: three mayors charged with taking bribes. peter cammarano, denis elwell, of secaucus, and and leona baldini, deputy mayor of jersey city. fbi agents were listening in as officials met in diners and parking lots with an undercover

informant posing as a real estate developer looking for favors. it appears whenever the informant waved money hands reached out to grab it. some $650,000 in cash, paid to city and state officials and go-betweens. court documents say hoboken's mayor was recorded telling the informant you are going to be treated like a friend. when the informant described himself to mariano vega, a jersey city official as being in good hands, vega replied, like allstate. >> for these defendants, corruption was a way of life. they existed in an ethics-free zone. >> reporter: jonathan dientz of new york's wnbc-tv who broke the story say agents made a surprising discovery? >> the fbi stumbled upon a brooklyn man who was willing to broker the sale of human kidneys. they say, for $160,000, he would find donors in israel who needed the money and then fool u.s. hospitals that the donor and recipient were related. they say he had been doing this for more than ten years.

>> reporter: prosecutors say rabbis at synagogues in new jersey and new york helped the informant launder over $3 million by sending it to contacts in israel who returne cash. the fbi says some new jersey officials appeared suspicious of the informant. but never wary enough to pass up the cash. pete williams, nbc news, at the justice department. word from the pentagon tonight. four americans have been killed in afghanistan over just the past 24 hours. this month not even over, of course, but it is still already the deadliest month of the almost eight-year-long war, 35 u.s. service members killed so far in july. there are reports tonight the son of osama bin laden has been killed in pakistan by a u.s. missile strike. 27-year-old sad bin laden, third eldest son among 17 children. he is the closest family member to osama bin laden to be eliminated by u.s. forces since 9/11. osama, of course, remains at large.

a good day on wall street here in new york today. the dow was up 188 points. closing above e 9,000 mark for the first time since the month of january. cnbcs maria bartiromo here to bring us up to speed. on where things stand. long established fact, there is the stock market and there is the u.s. economy. the two shouldn't be confused. if you are telling me the market is in a good period what does it mean? >> you make really good int, actually, brian. you are seeing a tale of two tapes if you will. we have got such momentum in the stock market. in fact, this market is up 11% just in the last nine trading days. very, very strong. there has been improving sentiment about the economy as well as about the earnings picture. now today's catalyst was about the housing market. we saw existing home sales higheror the third month in a row. we haven't seen a three month winning streak since 2004. on the earnings part of the picture, a little murky. we have seen a lot of better than expected earnings coming

out. but it is really the result of cost cutting efforts. companies really slimming down, cutting jobs, as opposed to real revenue growth and in demand. so we are waiting to see the story turn from cost cutting story to one of revenue growth. case in point, tonight, three major companies came out with earnings that were actually weaker than expected and stocks are down tonight. that may very well send a negative tone tomorrow morning. we'll see if this rally is snapped tomorrow. brian. back to you. cnbc's maria bartiromo at the stock exchange tonight. maria, thanks. even if you watch your share of baseball games you can live your whole life and not see one of these. a perfect game today from mark burle, of the white sox, defeating tampa, 5-0, 27 batters up, 27own. there have only been 18 perfect games in the recorded history of the sport. this one by the way saved by a great catch at the wall. in the ninth inning. he has him to thank. we are going to take a short break. when we continue, two big health

and science stories. including a breakthrough in cloning and the sobering word out today on swine flu. later on in the broadcast, if some of the kids returning to school this summer seem just a little bit ahead of the game, this might be why. a program that's making a difference.

we're back. as we mentioned two stories in the news tonight from the world of health and science. one has to do with a photo that caught our eye in the morning paper. kids at a summer camp in maine, sporting the accessory of the season to guard against swine flu. we got an update on that today. nbc's tom costello standing by in our whington newsroom with more on all of it tonight. tom, first things first. swine flu update. >> yep, brian, the fda wants to get a vaccine in place as quickly as possible, featuring fearing the virus may come back with a vengeance in the fall along with the seasonal flu virus. it is going to help rush the approval process.

the fda told congress it must prepare for the worst, though it will watch for adverse effects from the vaccine. the government is hoping to have 160 million doses of the swine flu vaccine in place by october. it plans to soon start testing the vaccine on people. >> tom, the other story, about cloning, questions immediately arise what could it possibly have to do with humans? >> yeah, this is a big story. if they can clone a mouse by using skin cells what they have done in china they might one day be able to use human skin cells to grow human tissue without destroying an embryo. >> reporter: his name is tiny and what make s this chinese mouse and 26 others unique is that researchers cloned him. not from embryonic stem cells, but from another mouse's skin cells. they're called ips stem cells and if it works in humans it could mean scientists would have an alternative to using human embryos to grow cells. in boston, stem cell transplant,

expert dr. george daly calls it a major breakthrough. >> and the real promise is that we could make any tissue that patient might need. yes, it could be blood cells. it could be brain cells. >> reporter: that could mean using a patient's own cells to grow new human organ tissue, damaged by parkinson's disease even spinal cord injuries. all the while bypassing the ethical dilemma of using human embryonic stem cells. the research conducted by two chinese scientists appears in today's journal "nature." >> there is no embryo destruction, no requirement for human egg donors to be involved. >> reporter: and that say bioethicists is critical. >> for many americans, embryo destructn has been the stopping point when it comes to stem cell research. >> reporter: experts say cloning an entire human is highly unlike. but the real value is in using a patient's own cells to regrow damaged tissue and organs. >> most scientists want to use these cells for legitimate

medical applications. not for the worrisome human cloning that i think will generate a lot of debate. >> reporter: experts caution the science is very preliminary and insist they still need to use embryonic stem cells to advance the research. meanwhile back in china, tiny has already produced offspring, second and third generations, all apparently healthy, and identical. this is likely to lead to new calls to ban any attempt to clone humans. it is a brave new world of bioethics, brian. >> here we go. tom costello in our washington newsroom tonight. to thanknks. when we come back, open for business. [ rooster crow ] it affects your entire day. to get a good night's sleep, try 2-layer ambien cr. the first layer dissolves quickly... to help you fall asleep. and unlike other sleep aids, a second dissolves slowly to help you stay asleep. when taking ambien cr, don't drive or operate machinery.

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taste these regional dishes for a limited time. at red lobster. talked about the economy minutes ago. it is tough out there right talked about the economy minutes ago. it is tough out there right now. but as promised this is your chance to see if your state is on a new list of the states in riving. surviving and me re the story tonight from cnbc's scott cohn. >> reporter: our annual cnbc study ranks 50 states in ten categories, including the quality of work force, infrastructure, cost of doing business there. at number five this ar, utah. it wins points for its quality of life but falls two places from last year on a wave of foreclosures. climbing to number four is iowa. which boasts the lowest cost of doing business in the nation. number three, colorado, is fighting the slowdown by pushing green jobs.

allowing companies like bella energy in the solar business to double its work force. >> we have a statewide initiative to require the utilities to use a certain percentage of renewables. and that forced the utilities to develop solar friendly rates that spurred the market. >> reporter: texas number two. it was tops in our study last year. but with energy prices half what they were then the state has lost some steam. america's top state for business, 2009, virginia. a perennial business favorite for its friendly regulatory client. even in the recession some businesses are growing. like the giant northrup gruman ship yard in newport news, adding 200 jobs. >> we work with the state on the development pipeline, richmond to our waterfront. >> reporter: the tough part, governor tim kaine says, keeping

it going in a downturn. >> reporter: this year's study reflects onto the earliest effects of the recession because the economy fell so far so fast. that means next year could bring even more changes and more competition in the war between the states for business. scott cohn, cnbc, richmond, virginia. earlier today as a light rain fell on midtown manhattan, hundreds of people gathered in a church to say a final good-bye to walter cronkite, the legendary cbs news anchorman who died last friday night at the age of 92. it was a gathering of the news media universe to be sure but it was also a gathering of friends and admirers. people who had watched walter, worked with him, sailed with him. even those who had been to war with him in the case of the old friend, the great andy rooney. andy talked about meeting walter in england in world war ii and then heap just couldn't go any further. >> i just feel so terrible about walter's death that i can hardly say anything. he has been such a good friend over the years.

please excuse me. thank you. >> walter's son chip cronkite spoke and said good-bye to his dad. speaker after speaker called today a celebration of a great man, great american life, well lived. we're back with more news in a moment. tonight, one educator's idea that's been making a difference in so many young lives. discover a light yogurt like no other. activia light! delicious, fat free, and above all... the only one that has bifidus regularis

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our making a difference report here tig our making a difference report here tonight deals with something called summer slide. not a ride at six flags. another term for the brain drain that can happen to kids during the summer. it is particularly cruel to lower income kids and it adds to what is called the achievement gap between them and their middle-class peers. but every year some very luc public schoolkids across this country spend their summer days at a local private school as part of a program called horizons. it's popular, growing, a favorite cause in our household. and it's making a difference nationally because it works. our report tonight from nbc's rehema ellis. >> reporter: algebra in july, but these kids make it sound luke a summer in the park. they are eighth graders doing college level math. >> this is what i got. >> we turn it into competition so they don't feel like they're doing work.

>> reporter: this is part of a national six-week summer enrichment program called horizons. k through 8th grade public school students spend their summers on private school campuses. the goal -- narrow the achievement gap between students from lower and upper income families. >> people are recognizing that partnerships like this that bring the public world and private world together is just works so fantastically. >> reporter: horizons began in connecticut in 1964, and now operates in 16 communities across the country. serving more than 1,600 kids fromll kinds of diverse backgrounds. all funded by private donations, tuition is free. kids are hand selected by their teachers. and while many have to be turned away, most of those who make it in come back year after year for an average of five years. for the last two years, not only have horizon students avoided the summer brain drain but they have advanced their learning by as much as three to four months in reading and math. individual attention is key.

>> we want to make sure every child here has an opportunity to connect to an adult. and through that connection we help them improve in school. >> they can help me here so i can do better in school that's what i really like about here. >> reporter: in the morning it's academics. >> very good. >> reporter: afternoons are packed with other activities. and swimming is mandatory. to boost kids' self-esteem and confidence. it is an all-around summer experience. teachers challenge kids and sometimes are challenged by them. >> he said i don't want you to quit on us. and i was like -- you got to promise me you won't quit on us. so those are the kids i serve. >> reporter: horizons making a commitment to kids, inspiring them to learn. rehema ellis, nbc news, westport, connecticut. that's our broadcast for

this thursday night. thank you for being with us. i'm brian williams. we hope to see you right back here tomorrow evening. we hope to see you right back here tomorrow evening. good night. -- captions bvitac -- www.vitac.com