JIM LEHRER: Wall Street staged a modest comeback today after a major sell-off. The Dow Jones Industrial Average had dropped more than 400 points on Tuesday. Today, it finished with a gain of 52 points to close at 12,268. The Nasdaq rose eight points to close at 2,416, after losing nearly 100 points a day earlier.
Around the world, the Chinese stock market in Shanghai gained 4 percent, less than half its loss on Tuesday. Other markets across Asia and Europe were down for a second day.
The chairman of the Federal Reserve played down the stock shock today. Ben Bernanke said there was no single cause, and he said the markets appear to be "working well."
Bernanke spoke amid new signs of slower growth. The Commerce Department reported the gross domestic product increased 2.2 percent from October through December, far less than earlier estimates. A second report said new home sales dropped 16.6 percent in January, the most in 13 years.
But at a House hearing, the Fed chairman took the new reports in stride.
BEN BERNANKE, Federal Reserve Chairman: My view is that, taking all the new data into account, that there is really no material change in our expectations for the U.S. economy.
And I would add parenthetically that the downward revision of the fourth quarter GDP numbers we got this morning is actually more consistent with our overall view of the economy than were the original numbers, so we expect moderate growth going forward.
JIM LEHRER: Bernanke said there is a reasonable chance of stronger growth in the middle of the year. We'll have more this right after the news summary.
The Iraqi government today formally announced plans for a security conference March 10th in Baghdad. The United States and Britain will attend, and the Syrians confirmed they will, as well. Iran said it was still considering the invitation.
An aide to the Iraqi prime minister said the U.S., Iran and Syria will be able to "sit down together without paying a political price." We'll have more on this story later in the program tonight.
New violence hit Baghdad today, as officials touted the new security plan. The day's worst attack was a car bombing that killed at least 10 Iraqis. Still, an Iraqi general said there's been a "remarkable decrease" in attacks since the crackdown began. He said at least 70 militants have been killed, with some 450 arrested.
There was also word another U.S. soldier was killed on Tuesday in Baghdad, and a British soldier was killed in Basra.
The U.S. military denied today that 18 Iraqi boys were killed this week in a car bombing near a soccer field. Yesterday, Iraqi television reported the attack took place in Ramadi. Iraqi police confirmed it, but a senior U.S. military official said it never happened. He said U.S. forces did blow up some explosives and several people got hurt.
Chicago Mayor Richard Daley easily won reelection last night. He overcame a corruption scandal and lesser-known rivals to win his sixth term. That puts him on course to serve longer than any other Chicago mayor, including his late father, Richard J. Daley.
The mayor thanked his supporters last night.
MAYOR RICHARD DALEY, Chicago: As I said many times before, there's no better city in the world, and there's no better job than being mayor of the great city of Chicago.
An election is not an end; instead, it offers a new beginning. With continued support from people and communities all across our city, we will rededicate ourselves to making this city even greater.
JIM LEHRER: Daley has been mayor for 18 years. His father died in office in 1976 after serving 21 years.
A federal judge in Miami ruled today terror suspect Jose Padilla is mentally competent to stand trial. Defense lawyers had argued he had post-traumatic stress disorder. Padilla was originally held more than three years as an enemy combatant. He now faces charges of aiding Islamic extremists worldwide. His trial is set for April.
The Roman Catholic Diocese of San Diego filed for federal bankruptcy protection late Tuesday. The Chapter 11 filing automatically suspended all court proceedings.
The diocese faced more than 140 lawsuits over alleged sexual abuse by priests. The first had been set for trial today. San Diego is the fifth U.S. diocese to file for bankruptcy since the abuse scandal erupted.
