. >> major funding for the pbs newshour has been provided by major funding for the pbs newshour has been provided by: and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. captioning sponsored by macneil/lehrer productions >> lehrer: the stock market rallied for the first time in more than a week. the dow jones industrial average was up more than 170 points before doubts about the economy took hold again. the dow finished with a gain of 57 points to close at 9743. the nasdaq rose two points to close near 2094. market fears have been magnified by weakness in job creation and housing and investors remain nervous about financial reform. we talked about this earlier this evening with treasury secretary timothy geithner. mr. secretary, welcome. good to be here, jim. >> lehrer: as the... has the economic recovery taken a sudden return for the worse? >> jim, the economy is healing. it's getting stronger. i'm very confident we'

major funding for the pbs newshour has been provided by: and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> lehrer: the storm system named bonnie took direct aim today at the oil spill in the gulf of mexico. it lost some strength on the way, but its approach triggered movements at sea and on land. newshour correspondent spencer michels reports from louisiana. >> reporter: bonnie was already churning the waters in the gulf of mexico, with 40-mile-an-hour winds pushing waves to five feet and more. even before the storm crossed south florida this afternoon, watches went up from destin, florida, on the panhandle to morgan city, louisiana. bonnie was expected to gain strength and reach the oil spill site by sunday as it continued toward louisiana. in the gulf, dozens of vessels began moving away from where the "deepwater horizon" rig once stood, after evacuation orders were issued last night. but in new orleans, retired c

major funding for the pbs newshour has been provided by: >> this is the engine that zero emission technologies to breathing a little easier, while taking 4.6 million truckloads off the road every year. bnsf, the engine that connects us. and the william and flora hewlett foundation, working to solve social and environmental problems at home and around the world. and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> ifill: arizona's tough immigration law would have empowered local law enforcement to check the immigration status of anyone they reasonably suspect was in the u.s. illegally, even if they were detained on unrelated charges. but a federal judge ruled today the state was, in effect, usurping, the federal government's role. ray suarez has been reporting the story from phoenix, and he joins us now. >> good talk to you. all during the week pressure was mounting. people on both sides of the question were waiting for th

major funding for the pbs newshour has been provided by: and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> lehrer: the big release of afghan war documents continued to rocket through official washington today. newshour correspondent kwame holman begins our coverage of the wikileaks story. >> reporter: as u.s. troops prosecuted the war in afghanistan today, officials past and present worried about the effects of wikileaks making all that material public. the chairman of the u.s. joint chiefs of staff, admiral mike mullen, warned there's a real potential threat to put american lives at risk. former cia director michael hayden says the taliban will be able to figure out who was in the room when operations were discussed. marine corps general james maddux echoed those concerns in the senate confirmation hearings. he's been nominated to oversee the operations in afghanistan and iraq. >> i just thought it was a -- just an

major funding for the pbs newshour has been provided by: and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> . >> woodruff: the justice department formally announced completion today of the largest exchange of spies since the end of the cold war. it unfolded at sites across europe. two planes, one from russia, the other from the u.s. arrived within minutes of each other today in vienna, austria. they lined up on the hot tarmac waiting for the swap. then a procession of convicted sleeper agents flown from new york climbed the steps to the russian plane. some had their children with them. meanwhile on the american charter, four russians convicted of spying for the west awaited their flight to freedom. two were dropped off later at a military base in england before the plane headed back across the atlanticment all had been required to sign confessions. the key to the swap came yesterday at a federal courthouse in new yor

major funding for the pbs newshour has been provided by: >> this is the engine that connects abundantrain from the american heartland to haran's best selling whole wheat, while keeping 60 billion pounds of carbon out of the atmosphere every year. bnsf, the engine that connects us. >> and by the bill and melinda gates foundation. dedicated to the idea that all people deserve the chance to live a healthy productive life. and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> lehrer: the death of six more americans in afghanistan focused new attention today on the dangers confronting u.s. forces there. chief among them-- the bombs known as i.e.d.s. ray suarez has our report. >> reporter: as of today, 66 u.s. troops have been killed in afghanistan in july with one more day left to go. the previous high was 60 killed in june. another 20 troopers from other nato countries have also been killed. that's actually down from

major funding for the pbs newshour has been provided by: and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> brown: the u.s. economy lost jobs overall last month, even as the jobless rate was declining. the numbers were the latest sign that the recovery may be losing momentum. private employers managed to add 83,000 jobs in june, but it wasn't enough-- the economy still recorded a net loss of 125,000 jobs, as the census bureau laid off more of the temporary workers it hired last spring. labor commissioner keith hall offered this perspective at a congressional hearing this morning. >> although the... the private- sector job growth was not strong, it was job growth, and it has been growing now for six straight... six straight months. so i think, in context, that's a positive sign. and in temporary help work continues to add jobs, and it's added quite a few jobs. and that continues to be a... a good sign for generally fu

major funding for the pbs newshour has been provided by: and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> lehrer: president obama countered some down poll numbers today with a trumpet note for his wall street reform plan and the selection of a new budget director. mr. obama hailed the senate's progress on a financial reform bill as a "breakthrough." >> three republican senators have put politics and partisanship aside to support this reform. and i am grateful for their decision, as well as all the democrats who've worked so hard to make this reform a reality. >> stahl: with the backing of those three republicans-- susan collins and olympia snowe of maine, and scott brown of massachusetts-- democrats now have the 60 votes needed to overcome a g.o.p. filibuster. the president then pivoted to his nomination of jack lew to serve as director of the office of management and budget. lew held the same position in the clint

major funding for the pbs newshour has been provided by: >> this is the engine that connects abundant grain from the american heartland to haran's best selling whole wheat, while keeping 60 billion pounds of carbon out of the atmosphere every year. bnsf, the engine that connects us. >> and by the bill and melinda gates foundation. dedicated to the idea that all people deserve the chance to live a healthy productive life. and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> lehrer: good corporate earnings reports helped fuel today's rally on wall street. caterpillar, 3m, u.p.s. and a.t&t all did better than expected. that helped push the dow jones industrial average up by 201 points to close at 10,322. the nasdaq rose 58 points to close near 2246. those broad-based gains more than made up for losses on wednesday. the stock market's surge came as other parts of the economy were headed in the opposite direction. the

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major funding for the pbs newshour has been provided by: >> lehrer: the president of afghanistan appealed for greater global support at today's kabul conference on security and development. as he spoke, the country's problems were underscored by events outside the afghan capital. zelikow president karzai addressed representatives from dozens of nations and organizations. and he called again for afghans to take charge of their own security nationwide by 2014. >> the national institutions dedicated to fulfilling the constitutional duty has ensured the security of our country. >> lehrer: karzai's date of 2014 is more than three years after american troops are supposed to start a drawdown. under president obama's timetable but at the conference secretary of state clinton insisted the u.s. has no intention of abandoning afghanistan. >> the july 2011 date captures both our sense of urgency and the strength of our resolve. the transition process is too important to push off indefinitely, but this date is the start of a new phase, not the end of our involvement. >> lehrer: the obama administratio

major funding for the pbs newshour has been provided by: this is the engine that connects zero emission technologies to breathing a little easier, while taking 4.6 million truckloads off the road every year. bnsf, the engine that connects us. and the william and flora hewlett foundation, working to solve social and environmental problems at home and around the world. and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> lehrer: u.s. forces in afghanistan added eight more names to the killed in action list today. it was the latest sign of the escalating war, as american commanders struggle to adapt. the first strike came in kandahar. three americans killed last night in a car bombing and gunfight at an afghan police headquarters. then, this morning, four more u.s. troops killed in a roadside bombing elsewhere in the south and a fifth shot dead. and three british soldiers died tuesday, when an afghan soldier attacked

major funding for the pbs newshour has been provided by: and by the alfred p. sloan foundation. supporting science, technology, and improved economic performance and financial literacy in the 21st century. and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> ifill: nursing homes were evacuated, transit slowed and millions sought relief today as intense hot weather continued to grip the east coast. heat records were shattered all along the east coast this week, as early summer readings headed into the triple digits. the hottest spot of all-- baltimore, where the temperature topped out at 105 degrees yesterday. the national weather service issued warnings for a searing swath of real estate stretching from the carolinas to new england and points west through kentucky and into illinois. a full quarter the nation's population was sweating it out. the sudden swelter was remarkable. just five months ago washington

. >> major funding for the pbs newshour has been provided by >> this is the engine that connects abundant grain from the american heartland to aaron's best-selling whole wheat while keeping 60 billion pounds of carbon out of the atmosphere each year. bsnf the engine that connects us. >> chevron, this is the power of human energy. >> and by the alfred p. sloan foundation, supporting science, technology, and improved economic performance and financial literacy in the 21st century. and with the ongoing support of these institutions and foundations. and this program was made possible by the corporation for public broadcasting and by contributions to your pbs station from viewers like you. thank you. >> woodruff: the obama administration today issued a new and revised ban on off shore drilling. last week a federal appeals court rejected the government's effort to restore its initial moratorium which denied any new permits for deep water projects and suspended drilling on 33 exploratory wells. the rules are the administration's second attempt to ban deep water drilling. and will apply to any fl

major funding for the pbs newshour has been provided by: and by the alfred p. sloan foundation. supporting science, technology, and improved economic performance and financial literacy in the 21st century. and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> brown: hurricane alex was mostly history today, but its after-effects kept oil spill cleanup crews in port once again. as they waited to get back to work, the gusher in the gulf reached a new milestone. white capped waves continued to buffet the texas coast today, hours after the hurricane hit. northern mexico got the worst of the storm last night with two people killed and the city of monterrey largely shut down. hundreds of miles to the east, the gulf of mexico was still too churned up today for oil skimming boats or boom-laying operations. in washington, the man overseeing operations-- thad allen-- said they're waiting for the all-clear. he spoke at

major funding for the pbs newshour has been provided by: and by the alfred p. sloan foundation. supporting science, technology, and improved economic performance and financial literacy in the 21st century. and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> woodruff: the campaign to toughen financial regulation in the u.s. reached its climax today. it came nearly two years after the financial meltdown that triggered the current recession. >> woodruff: the financial overhaul bill was one of the chief items on the president's agenda and he signed it with fanfare, before an audience of 400 lawmakers and others. >> it will finally bring transparency to the kinds of complex and risky transactions that helped trigger the financial crisis. shareholders will also have a greater say on the pay of c.e.o.s and other executives, so they can reward success instead of failure. and finally, because of this law, the ameri

major funding for the pbs newshour has been provided by: and by the alfred p. sloan foundation. supporting science, technology, and improved economic performance and financial literacy in the 21st century. and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> lehrer: veteran new york congressman charlie rangel agreed to a last-minute plea deal today on ethics charges. but the full house ethics committee has yet to accept its terms. "newshour" congressional correspondent kwame holman begins our coverage as the rangel drama finally goes public. >> reporter: reports of the plea deal came hours after the veteran new york congressman arrived at his capitol hill office prepared for a tough day. >> 60 years ago, i survived a chinese attack in north korea, and as a result, i wrote a book that having survived that, that i haven't had a bad day since. today, i have to reassess that statement. >> reporter: for a time,

major funding for the pbs newshour has been provided by: and with the ongoing support of these institutions and foundations. and... this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> brown: the huge document dump on the war in afghanistan opened questions today about pakistan's role, the afghan government, and u.s. military actions. it also put the u.s. debate on the war back on the front page. >> it's one of the largest disclosures of classified military information in u.s. history. last night the whistle-blowing web site wikileaks.organize released documents on the afghan war. the nonprofit organization gave the information to the "new york times", the british newspaper "the guardian" and the german mack several weeks ago. each did additional reporting and agreed to withhold publication until wikileaks released it first . >> brown: speaking to the guardian wikileaks founder defended the decision to release this material. >> in this case, it will show the true nature of this war. and then