JIM LEHRER: The stock market kept falling today, ending its worst week in five years. The sell-off was fueled again by worries over the mortgage market, oil prices, and credit for corporate buyouts.
The Dow Jones Industrial Average fell 208 points to close at 13,265. It's lost more than 500 points in the last two days. The Nasdaq dropped 37 points today to finish at 2,562. For the week, the Dow was down 4 percent; the Nasdaq fell 4.7 percent; the S&P 500 lost nearly 5 percent.
Even as stocks fell, there was some good economic news today. The Commerce Department reported a growth rate of 3.4 percent from April through June. It was the best showing in more than a year. President Bush touted the new numbers as he met with advisers today.
GEORGE W. BUSH, President of the United States: It's an economy that is large, flexible and resilient. I want the American people to take a good look at this economy of ours. The world is strong; the world economy is strong. I happen to believe one of the main reasons why it's because we remain strong.
JIM LEHRER: Treasury Secretary Paulson cited the economy's strong fundamentals, but he said the current market volatility is a "wake-up call." He said investors should reconsider how much risk they can stand.
White House officials stood behind Attorney General Gonzales today over Democratic claims he lied to Congress. Gonzales has denied any internal dispute over wiretaps without warrants, but FBI Director Mueller appeared to contradict that account at a House hearing yesterday. Presidential aides said today it's more a question of semantics than anything else. We'll have more on the story right after this news summary.
The House passed a new farm bill today. The five-year plan would cost $286 billion. The bill keeps subsidies for corn, soybeans and other major crops. It also adds more money for conservation, renewable energy, and food stamps. Most Republicans and some Democrats wanted to reduce subsidies in light of record-high prices; President Bush has threatened to veto the bill over that issue. We'll have more on this story later in the program tonight.
The House also gave final approval to a bill implementing more of the 9/11 Commission's proposals. Among other things, it mandated more cargo entering the United States be screened, and it included $4 billion for rail and bus security. The bill passed easily, but only after Democrats and Republicans traded barbs over why it wasn't done before.
REP. ALCEE HASTINGS (D), Florida: Did they pass $250 million annually for airport checkpoint screening? Did they pass $450 million annually for baggage screening? Did they do 100 percent screening within five years? Did they protect from lawsuits people who in good faith report what they believe are terrorist activities around airplanes, trains or buses? Did they do stronger security measures? No, they did none of that.
REP. DAN LUNGREN (R), California: We are safer today than we were on September 10th. We are safer today than we were two years ago, three years ago, a year ago. Are we safe enough? No. But to denigrate the efforts that have been made by good men and women in this body and the other body is nonsense and, more than that, it is detrimental to our effort to make this a safer country for the people we represent.
JIM LEHRER: The Senate passed the bill last night. It now goes to President Bush for his signature.
U.S. and Iraqi troops today waged a fierce battle with Shiite militants. It broke out when they arrested a rogue militia leader in Karbala. He's accused of carrying out attacks on U.S. forces. Seventeen militants were killed in the fight.
And the U.S. military reported another American soldier was killed yesterday. The total for July is now 67.
In Afghanistan today, the Taliban said 22 South Korean hostages are still alive, and it offered to negotiate their release. A 23rd hostage was killed earlier this week. The Associated Press obtained audio believed to be a hostage talking to an Afghani journalist. She said, "All of us are in a big problem. Our lives are in danger. Do something so they release us from here."
And two NATO soldiers were killed in the east today in a major fight with militants.
NASA faced allegations today of letting astronauts fly drunk. A panel of outside experts reported the claims, based on interviews with crew members and flight surgeons. The report said one astronaut allegedly flew on a Russian spacecraft after drinking heavily. The second was said to be cleared for a shuttle launch, but the flight was delayed. The panel did not investigate further, but Deputy Administrator Shana Dale said today the space agency will now do just that.
SHANA DALE, Deputy Administrator, NASA: Our job now, in terms of the allegations related to alcohol use, is determine if they occurred and, if they did, what is the scope, what are the facts and circumstances that might surround these alcohol-related incidents? And then what are the corrective actions that we're going to take? Alcohol use in regards to spacecraft or aircraft and anybody that's impaired is not going to be tolerated by this agency.
JIM LEHRER: The panel was created by NASA after the arrest of former astronaut Lisa Nowak. She was charged with trying to kidnap a romantic rival.
The former chief executive at Qwest Communications, Joe Nacchio, was sentenced to six years in prison today. He'd been convicted of dumping stock at huge profits while hiding the telephone company's financial troubles. A federal judge in Denver also ordered him to pay more than $70 million in fines and penalties. He said Nacchio committed "crimes of overarching greed."
Vice President Cheney will have his heart pacemaker replaced tomorrow. A spokeswoman said today Mr. Cheney will undergo the minor surgical procedure in Washington. He had the pacemaker installed in 2001. Last month, doctors found the battery was getting low. Mr. Cheney is 66 years old.
