own people. hopes for change from the obama presidency turning into frustration. simon mcgreggor-wood, abc news, ramallah on the west bank. here at home united airlines and us airways are facing millions of dollars in potential fines due to safety violations. the faa says united should be fined nearly $4 million for operating a jet with towels stuffed into an engine. that's instead of using caps to prevent oil leaks. the agency is proposing an almost $5.5 million fine against us airways for flying eight planes in violation of safety directives. most of the lawsuits stemming from a 2005 train derailment in southern california have been settled. the agency has agreed to pay about $30 million to victims' families. 11 people were killed after a train derailed after hitting a car whose driver was tryg to commit suicide. we're getting our first look into jaycee dugard's years of captivity. her picture is on the cover of "people" magazine and there is a brief statement inside. a family spokesman says dugard is thanking her supporters. >> reporter: it's the rld's first glimpse and even the magazine's editors were stunned jaycee dugard could look this good after 18 years of captivity and abuse. >> she seems much younger in fact in pictures than you would expect. especially having lived through something, you know, that's out of your worst nightmares. >> reporter: kidnapped on her way to school when she was in the fifth grade, this 1991 picture was the last time we saw her face. police investigators created this age-progression animation what was a grown-up jaycee could look like. compared to today it's nearly spot-on. jaycee tells "people," "i'm so happy to be back with my family. nothing is more important than the unconditional love and support i have from them." the girls who once were never allowed in school now have a private tutor. jaycee, who was held captive, is free to go horseback riding every day. and most important, jaycee is with her mother. they all live in privacy in northern california, reading, catching up, and cooking. jaycee's specialty -- rice, beans, and salsa. >> this is a person who really is radiant and seems to be incredibly happy and grateful to be where she is in her life right now. no one but jaycee knows how long and difficult the journey to having a full and normal life will be. >> reporter: but it sure sounds like this strong young woman is well on her way. mike von fremd, abc news, los angeles. >> big story about jaycee in this week's "people" magazine. here is your thursday forecast. an early nor easter from washington, d.c. to southern new england. rain, flooding, 50-mile-an-hour winds plus snow in parts of pennsylvania and new york. hopefully not this part of new york. thunderstorms and severe weather from texas to tennessee. rain and snow showers in the pacific northwest. >> 62 in seattle. 63 in portland. 75 in sacramento. fargo gets up to 38 degrees. detroit 46. and 40 in the twin cities. 40s in the northeast. a record 92 degrees in miami. >> i keep hearing people say that this is supposed to be a colder than normal winter. when you look at that it sort of makes you think so. i hope they're wrong. >> except for miami. >> nice and warm down there. it was an early winter surprise for a special little boy in missouri. >> 4-year-old cancer patient colton thurman wanted to see snow. and he got his wish. a tv station turned colton's front yard into a winter wonder land after hearing his wish. colton, who has an inoperable brain tumor, was delighted to play in the snow. >> colton's mom said it was well worth it to see him smile. it looked like colton had already mastered the art of the snowball. >> a heart-warming story. oooooooooooooooooooooooooooooood to control my diabetes, to stay healthy - and get on with my life. it comes from liberty medical. and now, it's not only where i get my diabetes prescription drugs as well. see if you're on medicare, the cost of your diabetes testing supplies as well as your liberty takes care of all the paperwork with medicare and sends the prescription forms directly to your doctor for approval. then, on your schedule, packs up this box and sends it right to your door with no charge for shipping. and liberty assures you have everything you need to call now and we'll send you a free meter. plus, a free cookbook when you join. call liberty. call the number on your screen. your old mop will just have to get over it... 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[ female announcer ] new swiffer wet jet is redesigned. it cleans deep in corners. its solution penetrates layers of dirt and its absorbent pad locks it away to clean better than a mop. the newly redesigned swiffer wet jet. ♪ love stinks! secretary of state hillary clinton returns to washington from moscow after failing to get full russian support for sanctions against iran. >> clinton spoke to cynthia mac tadden about russia and other key foreign policy issues in an abc news exclusive. >> reporter: it was her first trip to russia as secretary of state and hillary clinton continued the administration's efforts to, as she puts it, reset relations between the two countries. among her stops a visit with students at moscow state university. >> i will be the first to tell you that we have people in our government and you have people in your government who are still living in the past. they do not believe that the united states and russia can cooperate to this extent. they do not trust each other. and we have to prove them wrong. that is our goal. >> reporter: as for u.s./russia agenda, issue number one, what to do about iran's nuclear program. russian leaders made clear during secretary clinton's visit, they do not favor sanctions against iran. >> russia does not prefer sanctions but sanctions may be inevitable. whether they are or not what is we're trying to determine. >> reporter: but do you feel that if sanctions become necessary, the u.s. will have russia's support? >> i believe if sanctions become necessary, we will have support from russia. >> reporter: we also asked about the war in afghanistan. secretary clinton regularly participates in the president's national security meetings on afghanistan by phone. >> president karzai in an interview with my colleague diane sawyer said that the election in afghanistan was, quote, good and ir and worthy of praise. is that how you see it? >> i think there were irregularities, there's no doubt about that. >> reporter: secretary clinton wants to wait and see the results of two election panels. if it's clear the election was compromised what does that mean for u.s. foreign policy? >> if they conclude there has to be a second ruined there has to be a secd round. >> reporter: will that mean the decision about the u.s.' role be deferred pending a new election? >> i don't know about being deferred but it makes the timing of it more challenging, that's obvious. >> reporter: finally we asked about life when the day comes that she steps down as secretary of state. you're never going to run for president again? >> i have absolutely no interest in running for president again. none. >> reporter: let me asyou about some other persistent rumors. that you are frustrated at state. that you're going to step down and go back and run again for your seat from new york. >> no. i am neither frustrated nor planning anything other than being the best secretary of state i could be. >> hillary clinton told cynthia mcfadden that president obama called her on her cell phone and at first she refused and turned down the deal, saying other people were more qualified for the secretary of state position. >> felt other people deserved the job, she planned to enjoy her life after running for the white house. she said had she won the presidential race she would have found a suitable role for president obama as well. clearly they were going to put each other to work no matter at. california's first lady maria shriver has apologized for breaking that ste law requiring drive others cell phones to use hands-free devices. >> tmz posted pictures of shriver behind the wheel using a conventional cell phone, violating law signed into place by her husband. >> shriver has issued this statement. it says, i'm sorry. i will be donating my favorite old cell phone to my women's conference partner verizon through their hopeline program. that's my version of a swift action with a higher purpose. of course, the governor said there would be swift action after he found his wife had been talking on that phone. >>coming up, the global battle against the first flu pandemic in 40 years. >> how doctors worldwide are confronting and trying to prevent the spread of the h1n1 virus. welcome back. the first injected vaccine against h1n1 swine flu were given out nationwide. it's a vital shot for pregnant women told not to get the nasal vaccine. >> globally doctors are vaccinating and informing the public about swine flu. we get the latest from our correspondents around the world. >> reporter: i'm clarisa ward in beijing. more than 21,000 people in china have been infected with the h1n1 virus and last week the country announced its first swine flu-relate the death. with flu season around the corner, public health officials are trying to stop the spread of the disease by launching a massive vaccinatn program. among the first people to be inoculated, the tens of thousands of performers in china's national day parade. the health ministry says it plans to vaccinate 65 million people before the end of the year. 5% of china's population. >> i'm nick watt in paris. france was not hit hard by the first wave of h1n1 in the summer. now that temperatures are dropping and kids are back in school infection rates are climbing sharply. some schools and employers have even told people to give up the traditional two-cheeked dishello. based on research in paris, a lot of people are ignoring that device. the french government is about to start a vaccination program. 65% of french people in a recent poll said they would not get the vaccines. they're more concerned about side effects than they are about swine flu itself. >> i'm dina hughes in nairobi, kenya, a place hundreds of tourists from europe and asia travel to each day. now because of swine flu fears they must fill out a form declaring they're healthy before leaving the airport. kenya hasn't had any deaths from h1n1 but health officials want to make sure the number of cases stays low. there are minor outbreaks in slums and refugee camps where filthy, crowded conditions are common. but malaria and water-borne diseases such as col era are a much greater problem and a greater public health priority. >> i'm margaret connelly in tokyo. everywhere you look here people are wearing masks. children at a paper airplane contest. sumo wrestlers getting ready for the ring. even mission control engineers at japan's space agency. now it seems hygiene obsessed. every prefecture has recorded cases of swine flu. >> i'm karen russer in new delhi. urban centers like this marketplace make it easy for the disease to spread. in the country's overcrowded hospitals, where care for tuberculosis is pressing, may not be able to handle increased numbers. health officials say they are taking precautions. public service announcements like this one explain ways to prevent the disease from spreading. >> covering your mouth and nose with a hanky while coughing and sneezing can stop the h1n1 flu from spreading. stop the infection. be the hero. >> reporter: in this country of more than 1 billion it will be difficult to stop swine flu once it arrives in full force. >> new test resuls show children under 10 may need two swine flu shots to be fully protected. >> it's interesting to get this world perspective. we see so much coverage in the united states and i think we sense a lot of reluctance despite what all these medical experts are saying. you should get these shots, you should get vaccinated. now we know there's a lot of reluctance, people worried about the side effects of the shot. who comes first in your household, your spouse or her pet? >> why a woman picked a crocodile over her husband, next. assistance getting around their homes. there is a medicare benefit that may qualify you for a new power chair or scooter at little to no cost to you. stay tuned for this important medicare benefit information and free scooter guarantee. imagine... one scooter or power 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"world news now" delivers your "morning papers." >> we start our "morning papers" with a happy birthday wish to a left-hand time viewer. kathy fry-forbes is turning 50 today. we know you're watching because your daughter tells us you watch. happy birthday to you, now go to bed. don't go to bed, we need you to keep watching. >> interesting story out of australia. a woman who for many years would take in abandoned and ill pets, she had adopted a crocodile that was left on her doorstep back in 1996. her husband told her it's either me or the crocodile. guess what? she chose the croc. her husband told her she spent way too much time with the pet and asked her to give it up but she refuelsed and the couple divorced in 2005. her response, husbands can look after themselves but my crocodile can't make his meals. tough going. probably in trouble before the crocodile. >> one would have to imagine. her husband must have some rough skin or something, she chose that. >> some therapy was needed long ago there. hey, another case of criminal stupidity. i guess you could call this. breaking and entering and sleeping. we've got a fatr and son alleged criminal team. here they are right there. out of alabama. they're accused of basically breaking into a home and the guy on the right sort of fell asleep on the job. here's what happened. this woman has a bed ridden husband. she goes to check on him. she sees a guy laying underneath her husband's bed. the guy on the right. turns out they had broken in during the evening. they were intoxicated allegedly. and they tried to rob the place but then somebody woke up so they got startled and the kid hung out underneath the bed hoping they would go away. he fell asleep. and so -- yeah. dad got away. they found him later. both of them are in trouble now. >> i guess it's time for me to wake up. >> wake up, exactly. >> funny story of an ohio woman who caused a riot in a burlington coat factory when she promised all the customers she would pay free coats for everybody. $500 worth. and she arrived in her stretch hummer limousine. she maxed out her credit card and told them, hey, i've got to go back and get more money. yeah. >> she didn't come back. >> not so much. meanwhile people were calling friend and say family to have them come and say, you'll never guess what, we're about to have this free shopping spree, this lady's going to pay for us. she not only didn't pay for their shopping spree, it was a hoax. she didn't win the lottery as she had claimed she had. according to court documents she has a history of causing these kind of false alarms. >> she's everybody's favorite friend. until thun road trip. president obama travels to louisiana this morning. why some katrina victims are criticizing his visit. tax cheats. the irs gets tough with the nation's wealthiest americans. >> it's either get in now or face prosecution later. elvis for sale. sort of. clothes, pictures, even the king of rock 'n' roll's hair about to hit the auction block. it's thursday, october 15th. >> from abc news, this is "world news now." >> did i see you just practicing your lip curl, your elvis, thank you very much? >> getting my pompadour in shape. i'll tell you what. if i had the money, honestly, i'm a big enough fan, i'd buy that. >> you would buy the hair? >> i would buy the hair. i would. >> that's interesting. that tells me a lot about you. good morning, i'm linsey davis. >> we'll talk more about that this half hour. i'm jeremy hubbard. we start with a developing story out of pakistan this morning. a suicide car bomber has killed at least ten people, including children. the bomb was detonated outside a police station. >> there are reports gunmen attacked a federal building and several other police stations in lahore. at least two of the gunmen were killed. we'll have more on this developing story coming up in our next hf hour. now to the struggling city of new orleans. they get some high-level attention today with a visit from president obama. while manyesidents there welcome the president they don't want their neighborhoods turned into just another presidential photo op. karen traverse is joining us with more on this from washington. >> reporter: good morning, jeremy and linsey. four years after hurricane katrina ravaged the gulf coast, president obama travels to new orleans today to fulfill a campaign promise to survey firsthand the city's recovery. as a candidate mr. obama promised new orleans residents his administration would not repeat mistakes of the bush administration. >> when i am president, i will start by restoring that most basic trust. that your government wildo what it takes to keep you safe. >> reporter: today the president will visit the martin luther king charter school in the city's lower ninth ward. that neighborhood, of course, was devastated by the flood waters of katrina after the city's levees were breached. the charter school was the first to be rebuilt after the storm. on the second anniversary of the hurricane, former president george w. bush and his wife laura visited the school and met with louisiana education officials. mr. obama will also hold a town hall meeting with local residents and he may face tough questioning. before he steps foot on the ground in louisiana critics in the region have taken aim at mr. obama for waiting nine months to visit, staying for just four hours, and skipping mississippi and alabama, which were also devastated by the 2005 storm. the white house strongly pushed back against the criticism. >> i think you can be judged on what youe said you're going to do for new orleans and for the gulf or you can be judged on what you've done and what you're continuing to do. >> reporter: the image of former president george w. bush peering out a window of air force one, looking at the damage from katrina, is fresh in the minds of gulf coast residents. one local scholar said the obama administration is risking its own glorified fly-over. white house officials note that since taking office in january, their measures to speed up federal aid har live freed up more than $1 billion for recovery projects in louisiana. policy analysts say that is what really matters, not a presidential photo op. jeremy and linsey? >> thanks, karen, for that. stocks surged on asian markets this morning following the dow's first close over 10,000 in over a year. what a roller coaster year it's been. the dow closed at 10,015 yesterday, 53% higher than its low in march, just about where it was early last october. better than expected third quarter earnings from jpmorgan chase was one factor driving the market higher yesterday. the bank reported a profit of over $3.5 billion. big profits like that usually lead to enormous executive bonuses at the big wall street firms. congress tried to rein in those bonuses when it passed bank bailout legislation. as david muir reports, that hasn't happened. >> reporter: did the banking crisis, the recession, ever happen? it would be hard to tell looking at the pay now being doled out at the nation's top banks. by some estimates a record $140 billion in compensation this year. enough to pay for 2.6 million teachers. >> we have history repeating itself. >> reporter: on capitol hill, lawmakers ask, are we about to see another banking bonus fiasco like the one we saw last spring at taxpayer-owned aig? in fact, a new "wall street journal" analysis finds workers at the nation's 23 top banks are set to earn more than ever. 2007, before the banking melt-down, and $130 billion was spent on pay. now, 2009, they're going to pay out even more than before. would this be the most the banks have ever paid out? >> for these banks it would be the top number, yes. >> reporter: even with the highest unemployment in a generation? >> right. >> wall street's able to make more money than before because washington loaned them money at cut rates to rehabilitate them. so our thanks is, they're going to stuff it in their pockets even as many americans are suering from unemployment and reduced wages. >> reporter: but there are many in the banking industry who say there's no reason to get angry, that these improving banks have helped the economy as a whole. they say just look at today's stock market. a lot of people at home are going to say, it was our taxpayer dollars that got these banks back on track. >> i think the taxpayers should be happy because their investments are actually increasing with these -- with the fortunes of these companies. >> reporter: many of the banks have paid back that taxpayer money with interest. unemployment remains near 10%. one available job for every six unemployed workers. like michael rainer who we met exactly a year ago. his 21-year job gone. he's still looking. his at-home wife forced back to work. she called wall street paychecks stomach-turning. even with the dow breaking 10,000, it's certainly not breaking their way yet. david muir, abc news, new york. millions of older americans could get a $250 payment if president obama has his way. the president is urging congress to approve the money to help seniors who will not receive an increase in social security benefits next year. it's the first time since 1975 that there's been no cost of living increase since social security payments increases are tied to inflation, which has been negative this year. talk show host rush limbaugh has been dropped from an investors group trying to buy the st. louis rams. the head of the group says limbaugh's inclusion had become a distraction and a complication. limbaugh's initial interest had drawn a firestorm of criticism from within the nfl and civil rights activists. on his radio show limbaugh blamed the controversy on those who wanted to destroy conservatism. california gets a nice, warm day to dry out after getting battered by that powerful storm. the high winds and heavy rain triggered widespread flooding but the state was spared the catastrophic mudslides that were expected. still, hundreds of thousands of people lost power and re than 500 car accidents were reported in los angeles county alone. here's a look now at your thursday forecast. an early nor'easter brings rain, snow, gusty winds and coastal flooding from washington, d.c. to southern new england. a mix of rain and snow in the ohio valley and upper midwest. showers, thunderstorms, and severe weather from texas to tennessee. >> still hot in florida. record 92 in miami. a high of 87 forew orleans. 75 in dallas. 40s in the northeast and much of the midwest. phoenix hits 94 today. sacramento 75. and boise will be 67 degrees. there was no sign of rocky but it certainly looked like bullwinkle single-handedly sent police in north dakota on a moose chase. >> look at this. a moose meandered into downtown fargo just in time for the morning commute. not a real hurry, the big guy seemed harmless enough but wildlife experiments say his size and temperament made him a significant risk to public safety. >> they managed to tranquilize the moose and relocate him to a safe spot. looked like he was harmless. >> just another day in fargo. reminds me of the "northern exposure." remember that tv show? >> yes, yes. >> they had a moose. it was an everyday occurrence to that town.e meandering through and in fargo too action apparently. pparently. looking back, well today is an irs deadline for any american who's filed income tax extensions and it'an even bigger day for the ultra-wealthy. >> you're going to have to listen up to this, jeremy. a new irs mandate requires anyone with secret offshore bank accounts to come clean or face tax evasion charges. brian ross investigates. >> reporter: it's already too late for the multi-millionaire accountant who lives in this waterfront mansion in boca raton, florida, and who had $7 million in a secret bank account in switzerland. the irs learned of steven rubenstein's account before he could turn himself in. and now he faces three years in prison on tax charges. a case that serves as an implied threat from the irs. >> so it's either get in now or face prosecution later. >> reporter: rubenstein was the first of potentially thousands of u.s. citizens whose names are being turned over to american authorities by the giant swiss bank ubs, which abandoned its policy of secrecy when faced with possible prosecution itself. >> we have clients on that list and they are quite angry. in their view, betrayed by the bank, in terms of having their information turned over. >> reporter: two weeks ago ubs sent this final notice setting off a kind of panic among its american customers. your account with ubs, it said, will be secret from the irs no more. was it a kind of panic that you saw? >> yes, yes. panic, crying, hysteria. >> reporter: now with the midnight deadline nearing officials at the irs says there is a surge of people beyond just ubs customers willing to pay stiff penalties to avoid prosecution. >> right now, we're seeing disclosures about banks, 240 banks in 70 countries, on every continent except antarctica. >> reporter: among those turning themselves in, the retired wall street broker who lives in this new york country estate. bruce krastin who freely admits he failed to report his swiss account as required on yearly irs tax forms. that is a sin, and we pay for our sins, he told abc news. the irs acknowledges it will only go back seven years to collect back due taxes. for some who have had overseas secret aounts for ten years or more, they can pay the penalty, take the forfeiture, and still come out well ahead. for some, crime will pay. brian ross, abc news, new york. >> some people are coming clean. 7,500 americans have already told the irs they do have these offshore accounts. everybody else has until midnight, jeremy. until midnight. >> believe me, i am not on the list. it's not just the ultra wealthy. people with as little as ten grand stashed overseas have to report it too. not just the super rich, unlike me. >> word to the wise. more than 90 years after two african-american men were executed for a murder they did not commit, the state of south carolina has pardoned them. >> radio personality tom joiner pushed for the pardon. historians discovered joiner's two great uncles were framedn the murder of a white confederate army veteran in 1913. joiner's relatives and harvard professor henry lewis gates were there for yesterday's celebration. >> fascinating story. as far as they know it's the first time somebody has been pardoned posthumously in that state for capital murder. history-making right there. when we come back we'll hear from a very candid hillary clinton. >> in an abc news exclusive the secretary of state talks about the afghantan war and her political future. welcome back. secretary of state hillary clinton gave us an inside look at her demanding job and challenging schedule during her trip to moscow. >> she admits being president obama's chief diplomat is not easy as the secretary sat down for an exclusive interview with abc's cynthia mcfadden. >> reporter: she says it's a job she never sought and never thought she'd have. secretary of state. and yet, here she is in moscow doing it. since landing in moscow, she's met with her counterpart the russian foreign minister about iran. but says there was no talk of sanctions. >> we didn't ask for anything today. we reviewed the situation. and where it stood. >> reporter: she also met with the russian president. >> thank you very much. ♪ >> reporter: and attended the opera. what did you think? >> i think it's very funny. >> it's amazing, isn't it? >> it's absurd, it's just unbelievable. >> reporter: that was one day. so, how did a woman who ran so hard against barack obama for president -- >> so shame on you, barack obama. >> reporter: end up working so hard for him? people are also endlessly fascinated with how you came to this position. when did you get the first indication that he might be interested in having you serve in the administration? >> it was, you know, about -i don't know, five, six days after the election. and my husband and i were out for a walk, actually, in a sort of prerve near where we live in new york. and he had his cell phone in his pocket. and all of a sudden it started ringing in the middle of this, you know, big nature preserve. and instead of turning it off he answered it and it was president-elect obama. >> reporter: tell me about that phone call. he calls and he says, hillary? >> well, he called and he said, you know, i really would like to talk to you about some things and i'd like you to come to chicago to meet with me. even then, i honestly did not believe it was about me. i did not. >> reporter: now, did he say state department right away? >> oh, absolutely. absolutely. he said, i want you to be my secretary of state. and i said, oh, no you don't. >> reporter: did you really? was that the first thing you said? >> no, really. i said, oh, please. there are so many other people who could do this and do it really well. you know, i had this kind of image in my head, i'd be back in the senate, i'd get to spend time in my house, i'd visit my friends in the city and upstate, go back and work on health care. so i was very taken aback and somewhat resistant to the idea. because it just seemed so unexpected. i couldn't grasp it. and i finally began thinking, look, if i had won and i had called him, i would have wanted him to say yes. and you know, i'm pretty old-fashioned. it's just who i am. so at the end of the day when your president asks you to serve, you say yes if you can. >> reporter: would you have called him? >> absolutely, absolutely. oh, of course. >> reporter: you said earlier this week that you were going to retire at some point. and that you were not going to run for president. >> i did say that. >> reporter: it's making enormous waves throughout the country back home. >> you think so? oh, well, i mean, really. i feel like i have had the most amazing life in my public service. and for the last 17 years, ever since my husband started running for president, i have been, you know, in the spotlight, working hard, and this job is incredibly alencompassing. so i think, looking forward to maybe taking some time off. you don't think that's a good idea? >> reporter: never is a long time. so i want to ask you again. you're never going to run for president again? >> i have absolutely no interest in running for president again. none, none. i mean, i know that's hard for some people to believe. but you know, i just don't. >> reporter: let me ask you about some other persistent rumors. >> sure. >> reporter: that you are frustrated at state, that you're going to step down and go back and run again for your seat from new york. >> no. i am neither frustrated nor planning anything other than being the best secretary of state i could be. >> reporter: afghanistan. neither country wants to see the taliban return to power there. but the obama administration itself is divided over whether the taliban is an enemy worth fighting. president karzai also said, and i want to read this to you, al qaeda was driven out of afghanistan in 2001. they have no base in afghanistan. the war against terrorism is not in afghanistan villages, it is not in the afghan countryside. if that's true, what are we doing there? >> well, i think what president karzai means, because i've had this conversation with him and with others, is there are many elements of the taliban. but what i think he's trying to get at, which is also our analysis, there are people, quote, taliban, who are fighting because they get paid to fight. they have no other way of making a living. but not every taliban is an extremist ally. so that's what we're trying to make clear, both in our understanding and in our actions. >> reporter: so in your heart of hearts at this moment in time, do you know what you think the right strategy for america is? >> i am still, you know, considering all the different aspects of making this decision. and i will be prepared to offer the president my best advice when he asks for it. >> reporter: but if he asked tomorrow, wod you know what you were going to say? >> probably. >> her five-day european trip is now over but some critics question if it did anything to advance relations at all. >> interesting to hear her talking about her hopes to slow down after the election was over. she certainly did not get that wish. >> things picked up a little bit. the biggest auction of elvis presley memorabilia in years. medicmorabilia in years. clean so deep... it's like your old mop's worst nightmare. ♪ [ thunder crashes ] [ man ] love stinks. ♪ love stinks! [ female announcer ] swiffer wet cloths with new cleansers that attract dirt ♪ love stinks! assistance getting around their homes. there is a medicare benefit that may qualify you for a new power chair or scooter at little to no stay tuned for this important medicare benefit information and free scooter guarantee. imagine... one scooter or power chair that could improve your may entitle you to pay little to nothing to own it. one company that can make it all happen ... your power chair will be paid in full. the scooter store. why should you call the scooter store today? because their mobility experts are also medicare experts. and that means the scooter store is your best shot at qualifying for a scooter that costs you little to nothing. hi i'm doug harrison. pay little to nothing out of pocket. how do we do it? we know what it takes to get you your power chair it's our strength. it's our mission. and we back it up with the scooter store guarantee. if we qualify you and medicare denies your claim for a new powerchair or scooter, i'll give it to you absolutely free. i paid into medicare all my life, and when i needed it the benefit was there for me. the scooter store made it so easy. i didn't pay a penny out of pocket for my power chair. the scooter store got me back out in the world again. talk to. there is a medicare benefit that may qualify you for a new power chair or scooter at little to no cost to you. finally from us this half hour, today the public will get to see an unusual collection of elvis presley memorabilia that's going on the auction block in chicago. >> the collection once belonged to a friend and it includes more than 200 interesting items. ♪ feel my temperature rising >> the temperature is also rising at leslie hindman auctioneers, west of chicago's loop, during a final setup for an elvis presley memorabilia auction that will knock your blue suede shoes off your rock and rolling feet. >> i'm amazed by it. we have more interest in this auction than any auction we've had in five years. >> reporter: what makes this collection so special is it belonged to a man named gary pepper. gary pepper had a very special relationship with elvis presley. >> he was one of elvis' best friends. he was a guy who had cerebral palsy and started his first fan club. and they were friends all their lives. >> reporter: all these items were collected by gary pepper or given to him by elvis. some worth a lot of money, others very little. there are many simple snapshots taken at parties. even photos of elvis playing football. there is no other elvis collection like it. >> this collection has the best story behind it. i mean, even the original photographs were taken by gary with a polaroid that elvis gave him to take pictures. so it's really a documentation of elvis' life. >> reporter: elvis died in 1977. gary pepper died three years later. he willed the collection to his long-time nurse, who's now selling the albums, photographs and clothes, and most of all a hunk a hunk of elvis hair. but how can they be sure it's the king of rock's locks? >> this hair was given to gary pepper after a haircut that elvis had when he went into the army. >> reporter: suspicious minds might doubt that it's the real thing. but you can see for yourself as the doors to the chicago auction house open to the public today. everything goes up for bids on sunday. ♪ hunk a hunk of burning love >> so maybe you can take some of the money out of your offshore accounts. and buy the hair. would you seriously buy it? >> i would but i would need some pre. they would have to come up with a way to know -- >> dna tests for you? >> yes, i uld have to know it was elvis' hair. >> it's supposed to get $15,000, potentially. >> i would -- if i had the money, i would pay it. i have figured out what you can get me for christmas. >> what's that? >> they're coming out with this box set in december. 100 elvis presley songs are going to be ing market milestone. the dow market milestone. the dow breaks 10,000 after a turbulent year. it's a positive sign for investors. but what about main street? then, first glimpse. the family of jaycee dugard releases pictures of the kidnapping victim. is it too soon to be in the public spotlight? >> this was a big step for the family to take. > and, the real deal? this painting could make an art collector a very rich man. who the famous painter could be. it's thursday, october 15th. >> from abc news, this is "world news now." >> good morning on this thursday. thanks for joining us. i'm jeremy hubbard. >> i'm linsey davis. we begin this half hour with a developing story from pakistan where police officers and militants were killed in different attacks. >> it comes ter a suicide bomber detonated explosives outside a police station. abc's nick schifrin is in kabul, afghanistan, with the latest for us. good morning, nick. >> reporter: good morning, jeremy. yeah, these are two separate sides of the country. and the first attack that pakistanis woke up to this morning in the tribal areas. that's the very volatile area next to the afghanistan border. yet another suicide attack on a police station. this was an area of the country that has obviously really suffered in the last few months and years as militants have become stronger across northwest pakistan. perhaps the more significant attack that you mentioned is in lahore. and that is in the eastern part of the country near the indian border. the distinction is important because lahore is really kind of the spiritual center of the country. any time that there's an attack in lahore itself, it really is a strike at the heart of pakistan. not only was there one attack, three simultaneous attacks this morning on t equivalent of the fbi, another police training center, actually two police training centers, and across lahore this morning at least 18 people have died. and it led the interior minister this morning to say that there's a guerilla war that the militants have launched. clearly they have become stronger. they have linked up with each other across the country and pose a direct threat to the pakistani state and certainly the stability of the nuclear nation that is so important for the stability,ot only of the whole region but also for afghanistan and u.s. troops in afghanistan as well. jeremy? >> all right, much more on that story throughout the day here on abc news. nick schifrin joining us from afghanistan, thanks to you, nick. it's just a number. but oh, what a number. the dow has surpassed the 10,000 mark, closing at 10,015. that's pretty remarkable considering that just seven months ago it stood at 6,500. it's the most visible sign yet the economy is clawing its way back. here's betsy stark. >> reporter: traders celebrated when the dow touched 10,000. >> the dow, 10,000 on the way down wasn't as much fun as dow, 10,000 on the way up. >> reporter: it may be just a number but it is also a symbol of how much things have improved. at least on wall street. >> a year ago, it was a melt-down. we didn't know if we were going be here this time last year. no one, no one suspected we'd be over dow 10,000 this day last year. no question about it. >> reporter: a year ago wall street was imploding. some of its mightiest investment banks had collapsed. there was genuine fear of another great depression. fast forward a year later and the rebound is nothing short of remarkable. since bottoming in march of this year the dow soared 53%, almost 3,500 points. a broad-based advance led by financial and technology companies. >> it's obviously -- it's another indication that the wind is sort of behind the market at the moment and we're moving a little higher. >> reporter: push to 10,000 powered by news of unexpectedly strong profits at the banking giant jpmorgan which appeared vulnerable just a year ago. technology power house intel posted surprisingly good numbers. goldman sachs and google are expected to wow investors. >> going to go forward, at least to the end of the year, and then we'll readjust. >> reporter: while corporate america seems to be in recovery mode, main street americans continue to struggle. dolores holmes who hopes to retire someday from running a bed and breakfast saw her retirement savings drop almost 80% and still has a long way to go to get back to where she was. >> it was a big increase this last statement. which was very positive. but as far as the business goes, it's not going to come back as quickly as i need it to. >> reporter: the first time the dow passed through 10,000 a decade ago they passed out these hats. i saved mine as you see. well, they passed them out again on wednesday. this one says "dow 10,000 2.0." betsy stark, abc news, new york. >> asian markets extended their gains today after wall street's show of strength. markets across the region were higher for the third straight day. in japan the nikkei closed up more than 100 points. but in thailand, investors are worrd about the health of its 81-year-old king. wall street's robust gains so far this year mean executive bonuses at the big banks are likely to be huge. by some estimates the nation's top banks will pay out a record $140 billion in compensation. a new "wall street journal" analysis finds workers at the 23 biggest banks are set to earn more than ever. >> wall street's able to make more money than before because washington loaned them money at cut rates to rehabilitate them. sour thanks is they're going to stuff it in their pockets, even as many americans are suffering from unemployment and reduced wages. >> reporter: the banking industry defends itself by basically saying that they're their improving helps the economy recover and points to the stock market's recent run-up as proof. the terror suspect accused of plot against new york city reportedly had some very high-level connections. the associated press reports najibullah zazi had al qaeda contacts which went almost all the way to osama bin laden. the ap says a top al qaeda leader in afghanistan used a middleman to contact zazi. it's not clear whether the contact was simply encouragement or to help with the plot. today is the day tax cheats with offshore accounts must reveal themselves to the irs or risk prosecution. we're told that 7,500 americans have already come clean about their secret accounts and that the irs expects thousands more to do so by the midnight deadline. the flood of disclosures comes two weeks after swiss banking giant ubs told its american customers their accounts would be disclosed. >> we have clients on that list and they are quite angry, and in their view, betrayed by the bank in terms of having their information turned over. >> some tax cheats are going to make out on the deal. the irs only goes back seven years to collect back taxes. those with secret accounts for longer cannot be penalized beyond those seven years. new math scores show that for the first time in two decades fourth graders failed to improve. 39% of those students were at or above the proficient level. scores for eighth graders advanced for another year with a 34% proficiency. education officials called the results troubling and blamed poor training of math teachers. in massachusetts, for example, 55% of the elementary school teachers failed the math portion of their assessment. and here's a look at your thursday weather. stormy and chilly from connecticut to washington, d.c. an early nor'easter brings rain, flooding, gusty winds, snow in parts of pennsylvania and new york. rain and snow from minnesota to the ohio valley. thunderstorms and severe weather from texas to tennessee. >> 65 today in atlanta. 48 in baltimore. 47 in new york. 50 in st. louis. mostly in the 40s across the midwest. portland climbs up to 63 today. salt lake city 64. and albuquerque 77. how about trying this on for size. it was a fason show put together with extremely good taste. >> the outfits on the runway good enough to eat. because they were actually made with real chocolate. look at that. top fashion designers and the world's best chocolatiers collaborated to come up with the confectionary couture. e sweet pieces were modeled by actresses, singers and tv personalities. >> the catwalk extravaganza kicked off an annual chocolate ade show in paris. i wonder if -- it's edible i would assume? that you could eat it right off of someone? >> i -- i won't even go there. i will say our producer josh said that it's nothing to snicker about. >> oh! [ bottle #1 ] oh hey, hey... there's that mr. clean magic eraser thing again. clean freak. [ bottle #2 ] whoa... is he better than us? uh, i mean, i mean i feel like it took you like three times longer to do whatever he did... dude, dude, he's got...these -- like -- microscrubbers... yeah, i guess... magic man. he's a magic man. what? i just want to be squeezed. [ male announcer ] remove three timemore grime per swipe with the mr. clean magic eraser. kidnapping survivor jaycee dugard, who was abducted as a little girl from a california bus stop in 1991, is now telling the world about her years of torment. >> at 29, dugard is trying to reclaim her life and preparing to testify against the alleged captor who fathered her two children. here's mike von fremd. >> reporter: it's been less than two months since jaycee dugard was freed from a captivity that lasted almost two decades. the world got its first glimpse of what this 29-year-old mother of two looks like. the photo featured on the cover of "people" magazine is ironically extraordinary. because she looks so normal. a smile that at once reveals the joy of her newfound freedom but may mask the difficulty of starting a whole new life. >> she seems much younger, in fact, in pictures than you would expect. especially having lived through something, you know, that's out of your worst nightmares. she looks like a happy, healthy, successful young woman. >> reporter: jaycee was allegedly kidnapped by philip garrido more than 18 years ago as she was on the way to catch the bus to her fifth grade class. garrido was accused of keeping her in deplorable conditions in a secret section of his backyard and fathering her two daughters, 15-year-old angel and 11-year-old starlet. worldwide interest in jaycee's sensational story has been so high that with little more than two written sentences from jaycee, and a cover photo, "people" has created an issue that is certain to fly off of newsstands. >> this was a big step for the family to take. i think one of the reasons they thought they should take it was that so that the world could get over its curiosity about jaycee and how she was doing. and hopefully give them some space to heal and to help her really make the transition into a normal adult life. >> reporter: the article gives insight into what the first weeks of jaycee's freedom and reunion with her family have been like. she told "people," "i'm so happy to be back with my family, nothing is more important than the unconditional love and support i have from them." jaycee has taken her two daughters to live with her mother terry in northern california. after 18 years of captivity, jaycee is now free to go horseback riding every day. her two girls, who weronce never allowed in school, now have a private tutor. and the family spokesperson says an interview on "good morning america," their progress is stunning. >> i can say that they are bright, darling girls who are, you know, curious and interested in the world around them and really have a lot of knowledge. it's amazing what jaycee was able to do under those circumstances. >> reporter: the new photo is amazingly similar to an age progression rendering of jaycee made by the center for missing and exploited children. >> ever since she's recovered i was probably the most anxious one in the whole country to see how close we were, or far off we were, in age progression. i feel we definitely were in the ballpark. >> reporter: forensic imaging specialist joe mullens created the age progression photo of jaycee in 2006, aiming for what she would look like at age 25. >> like putting together a puzzle. i can manipulate the puzzle pieces and readjust them to make them fit. >> reporter: bonds worked from the last picture of jaycee to painstakingly create an older face, feature by feature. the process is more art than science. there's no computer program that does this work. >> anything that's unique about it, a smile, is great. this is the smile that you had as you were young, this is the smile you still have today. it's off the shelf software, adobe photoshop we use, more technique than technology right now. >> reporter: a technique vindicated by the new photo of jaycee, demonstrating that this work has the potential to save children. >> i hope that whait will do is remind the american people that you really need to look at these pictures. you need to look at these children in the eyes. you need to take the two seconds necessary to really look at them, because it's average people doing average things who are bringing these kids home. somebody knows. >> reporter: as jaycee and her daughters get acquainted with their family for the first time, they are considering ways to erase the memory of philip garrido. jaycee is working with investigators to help build a case against garrido. she may ultimately testify against him. though finally free, her ordeal is not over. >> i think it's too early to say if that smile is the early success, a product of the euphoria, of the reunification, can it be sustained? we're committed to trying to make sure that that family gets the help that it needs. so that these early days can be sustained. but it's going to be hard. >> reporter: this is mike von fremd in los angeles. >> according to the magazine she may actually collaborate on a book about her years in captivity. that picture, the age progression, is remarkable how close it looks. >> stunning. and i think that one guy made a great point, that we tend to get so dismissive when we see pictures of missing children. we see so many of them it's sort of overload. this is proof that we need to pay attention because some of them are dead on accurate. well, one of the most over the top managers in the world of pro wrestling has died. >> captain lou albano was one of the most recognized promoters in the business and his celebrity went beyond the wrestling ring by landing acting roles and appearing in a memorable cyndi lauper music video. >> well known for having rubber bands in his beard too. he died of natural causes at his home in caramel, new york. memorial services are tomorrow. he was 76 years old. you've heard of singer leona lewis before. >> i have, yes. >> she was at a book signing, signing pictures in london yesterday when a guy that she was signing a book for, he comes up and punches her. >> oh, wow. >> hit her right in the head. appantly it was a 29-year-old. he was immediately led away by security guards and later arrested by police. she was launching her new autobiography "dreams" when the incident happened. one witness said, "i heard leona cry out in pain as she was quickly led off by her security." they said she actually had part of her face was swollen by it. the guy started laughing. >> so we don't know why he did it? >> no idea why, no idea. >> here's video from right afterwards. >> just a fan, and she had to cancel several appearances after. but it's kind of shocking. >> that's crazy. these book signings are becoming dangerous. i remember a couple of years ago jane fonda had a book signing in kansas city. i think it was kansas city. somebody spat in her face. >> i guess there's nothing to stop anybody from coming off the street who claims to be a fan from doing whatever they want. >> i guess so. might make some of these authors a little less likely to have these book signings. although you have to if you want to sell those books. catch-22 for them. >> right. >> i had friends who have internet dated before. >> right. >> you go on the internet, match.com, whatever websites, put a profile cture on there. a lot of times you think it's a fake. >> sounds like you know. >> i have friends. i'm married. happy. you'll see the profile picture and it looks fake and you're like, that can't be her. if you're on there and see somebody who looks like jessica simpson, it may not be a fake. she might actually take to online dating. that's what she's telling reporters. e said she's never tried it before, dating online, but she said she is not above it, she has no problem with it. anybody who can find love online, so be it, she says. so perhaps she will go online looking for love. of course, you know, she's had her share of heartbreaks. divorced from nick lachey, broke up with tony romo from the cowboys. you see jessica simpson online, click, you never know. might be able to date. >> have a hot date. >> it's exciting, isn't it? >> just in case you're starting to think about your funeral arrangements. >> i wasn't but thank you. >> you may want to know the crypabove marilyn monroe is for sale. >> it's available again? >> for a mere $500,000. it potentially could be yours. yes, it was up for auction before and the guy said that he was going to bid $4.6 million for it. it fell through. he actually didn't have the money, he was just driving it up. >> of course. >> so now they're putting it up. you have to put down a little bit of 1% to 5% refundable deposit. they're making sure that you have the cash at this point. it's expected to fetch millions of dollars at auction. and just as a sidebar, the winning bidder will have to share dead space with hugh hefner. he reportedly already paid $1 million for the plot right next to her. you're surrounded. >> even when you die it's all about real estate. >> location, location, location. >> cover your ears. because mike tyson and evander holyfield are going to be in the same room again. hopefully evander will be doing this. they're going to meet up on oprah's show. she's doing a live show from chicago friday. i don't know if you saw it, mike tyson waon there and he was a mesmerizing guest and talked about every time he and evander are in the same room evander is sort of nervous. we'll see how it goes on friday when they reunite. that famous bout ten years ago. here are some stories to watch today on abc news. president obama visits new orleans today to visit schools and rricane katrina survivors. later he'll attend a democratic fund-raiser in san francisco. the first lady is also traveling. michelle obama will be among 500 guests at a miami event raising money for education. a new foreclosure report just released shows a 5% increase in the number of filings nationwide between july and september. analysts from realty tracks say more than 937,000 homeowners got foreclosure filings over the summer. finally this half hour, a small painting purchased for $19,000 could be a multi-million dollar masterpiece. >> the art world is absolutely buzzing about the unknown work that could be from, drumroll, leonardo da vinci. jim sciutto reports from london. >> reporter: a dirty fingerprint is not what you want to find on a valuable painting. unless it happens to belong to a master. for art dealer peter silverman the story began with a hunch that the 19th century german portrait he bought for a swiss collector two years ago was something much more. >> when i saw it, my heart beat a million miles a minute. i thought of leonardo but i dare not pronounce that name. >> reporter: silverman took the painting to a lab in paris equipped with a camera designed to see under the chalk and ink. >> he came here in a motorcycle. he opens the top case of the motorcycle and he gave us the painting. >> reporter: the scans revealed a fingerprint in the top left corner which appeared to match one on leonardo's "st. jerome." there were other clues. the canvas carbon dated to leonardo's time. as well as stylistic similarities. >> you have a lot of palm prints just here. because leonardo da vinci used this part of the arm to change the nuance of light inside the neck. >> reporter: the discovery of a painting by a master with only two dozen or so known works ha electrified the art world. though there are septics. including the auction house christie's which valued the painting at less than $20,000. christie's told us today, the claim relies on unproven scientific techniques which were not available to us at the time of the sale." silverman and the anonymous swiss collector he represents, however, are convinced. >> she is mysterious and beautiful. >> reporter: if they're right they'll turn a $19,000 investment into tens of millions of dollars, fingerprint included. jim sciutto, abc news, london. >> lucky, whoever bought that painting originally. >> never has a smudge meant so much.. making news in america this morning. market rebound. stocks surge along with many portfolios, surprising even market traders. where will the markets go today? 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