i'm keith olbermann, good night, and good luck. president obama lays into republicans for holding up middle class tax cuts. grave situation. the army discovers at least two people buried in wrong spots at arlington national cemetery. and beast of burden. oregon firefighters rush to rescue a camel stuck in a sink hole. this is "first look" on msnbc.

we begin this morning with getting down to business. primaries are over, midterm elections are just weeks away, and now president obama is slamming republicans for holding up his tax plan to prop up small businesses and the middle class. tracie potts joins us now from capitol hill with more. good morning. >> reporter: good morning. the president has a problem because increasingly democrats also disagree with him over taxes, and republicans are digging in, not good signs for a compromise seven weeks before an election. >> reporter: how to win a tax fight and an election. first, solidify the base. >> don't forget who is standing with you and who is standing against you. >> reporter: then put pressure on your opponents. >> we simply don't have time anymore to play games. >> reporter: extending tax cuts to americans earning over 250,000 has become the lightning rod for a nasty part season

fight headed into november. more than two dozen democrats now disagree with president obama. republicans are not wavering. >> republicans are united. no tax increases on nobody. >> reporter: even house leader john boehner, who suggested sunday he might support the president, is now backing off. >> if it's your only option as you said sunday, would you vote -- >> i want to extend all of the current tax breaks. >> reporter: tuesday's primary appears to have spooked both sides. analysts say tea party wins could backfire on republicans. >> seemed like it was a sense of voter nullification, like we're not listening to you. we, the republican party, we're not listening. that's the problem. >> reporter: it could be a problem for democrats, too. a new cbs/"new york times" poll puts their disapproval rating at 58%. and it's actually 68% for republicans, even higher overall. bottom line here n that poll, most americans said they want

most of washington out. lynn? >> tracie potts in washington, thanks. as the race to november's midterm elections heats up, so are the campaign tactics on both sides of the aisle. last night joe biden was asked what he thinks of some of the more aggressive attacks on president obama. >> it's the same old playbook. when you can't compete in ideas what do you is the same playbook on the conservative play book, you try to delegitimize the other guy. that's what's going on. the attempt to delegitimize one of the most talented men to enter american politics in three generations. they did the same thing with bill clinton. remember, bill clinton was part of a drug network and drug dealers in arkansas. bill clinton was somehow involved in the murder of an individual. when you looked at these guys,

it was all about delegitimizing. >> it worked. it did weaken the clinton presidency. >> it did. but it didn't work. it ultimately didn't work. he was elected two terms. during his term we created millions of jobs. middle class folks actually saw their incomes go up. you saw a change in our foreign policy. we were respected. i mean, so, it didn't work. and it won't work this time. it will work if we're silent. >> don't miss "the rachel maddow show" weeknights at 9:00 eastern on msnbc. families who believe their loved ones were in their final resting places at arlington national cemetery have just learned that's not the case. at least two people were buried in wrong graves. remains have been exhumed from the military cemetery following an army report detailing mismanagement that led to the mishandling of over 200 graves.

a later senate report put that number up to 6,600. in an nbc news exclusive, chief foreign affairs correspondent andrea mitchell was granted an interview inside the presidential palace in tehran wednesday with iranian president mahmoud ahmadinejad. they talked about the fate of the american hikers held in iran, ahmadinejad wanted people to know that sarah shourd had been released on compassionate grounds. but when it came to tough questions on whether the two other american hikers still in jail and yesterday's international criticism of iraq's nuclear program, ahmadinejad remained defiant. be sure to watch andrea mitchell's one-on-one later this morning on "today." here is your first look at some of the other news going on around america today. texas police released dash cam video of an alleged beating of a motorcyclist pursued after he allegedly drove down a sidewalk.

officers approached the man and deliver several blows. of the 22 officers involved in the case, one has been fired and along with two others faces possible felony charges. three are on restricted duty for the duration of the investigation. and in michigan police are looking for a suspect they say is one of the world's dumbest criminals. the man walks into a convenience store and in plain sight of a security camera dons a darth vader mask. though the dark lord got away with an undisclosed amount of cash during the heist, he's now under the hot pursuit of the police force. oregon firefighters were called in for an unusual rescue, a privately-owned 1,200 pound camel, stuck in a sinkhole. the rescue team used ropes and straps to pull the distressed animal to safety. so far seems to be doing okay. in new york, guinness world record folk promoted the release

of their 2011 book with a play date for one of the biggest and smallest stars, giant george, the world's tallest living dog, and bobo, the smallest. boo boo needed a boost to see george, but there was an instant connection. now for a look at your national weather, we turn to nbc meteorologist bill karins with the forecast. >> do you think george is a happen dog? >> i hope not. >> a lot of those great danes think they are. george was pretty cute. let's talk about the hurricanes out there and the tropical storms. just got the new updates in. no big surprises, the biggest concern is down here in mexico where we are watching tropical storm karl. it's over the bay of cam peacpe now it looks like it will make landfall as a hurricane sometime on friday it shouldn't be too

big, maybe a category 1, at worst a category 2. here is the forecast timing. it's a little slower than previous. it looks like landfall sometime late friday night into saturday morning. again, as a category 1 most likely. it's still possible to be a category 2 at landfall. our friends in mexico will have to deal with that. no effects in south texas with the storm with the exception of a couple of rain bands what is more impressive is hurricane igor this is a huge, monster hurricane out here. it's safe from puerto rico and the virgin islands, but we have to watch our friends in bermuda the east coast, not a threat at all. but this is a category 4. it's restrengthened again. this is like a snail. it's a slow track to bermuda. it will take about four days to get there. the timing has shifted later because of the slow forward speed. it now looks like sunday night will be the worst for bermuda the forecast is for it to be a category 3 or category 2

hurricane as it nears the resort island. back on the mainland, not many problems today. we are watching a storm system through the great lakes with some rain and heavy rain at that, especially in areas of michigan, detroit seeing some steadier rainfall, same with kalamazoo, lansing, up to saginaw and the other area of rain is down here in memphis that should clear out quickly. lynn, forecast-wise, the east coast not bad. clouds also increaswill increas stocks boost on earnings, more trouble for goldman sachs, and what's in a name? maybe trademark infringement. your look at business headlines is straight ahead. a game-saving catch, and who will get reggie's iheisman?

everyone knows a fee is a tax. you raised some taxes during that period, particularly the property tax as well as a lot of fee increases. as you know, there's a big difference between fees and taxes. but...they're the same. it's a tax. it's a tax. it's a tax. it's a tax. there's a big difference between fees and taxes. fees and taxes are one in the same. if it comes out of my pocket, it's a tax. now he says it isn't true. we didn't raise taxes. what? still doing the same thing, paying out more money. typical politician. definitely. welcome back to "first look." i'm lynn berry. here are some of the top stories

making news this morning. israeli prime minister benjamin netyanhu and palestinian president mahmoud abbas are still divided on the latest issues after ending their recent round of peace talks in jerusalem yesterday. the leaders met with secretary of state hillary clinton for two hours and agreed to continue negotiations, but there was no word on when they would meet again. former ebay ceo meg whitman, the republican candidate for governor of california, now holds the record for personal spending on an election. earlier this week, she added another $15 million of her own money to her war chest, brining her own total campaign donations to a staggering $119 million. the nbc family is mourning the loss of edwin newman, a celebrated anchor, commentator, correspondent and host for the network for over 30 years. newman's family says the 91-year-old died of pneumonia in england last month. they delayed the announcement to spend time privately grieving. boeing says it's planning to

offer private citizens a chance to fly into space on a commercial rocket that is developing. the spacecraft, which can carry up to seven people, is expected to be ready in five years, although boeing has not named an exact price, experts estimate that one round-trip ticket to the international space station could easily cost $25 million. better be a bag of pretzels involved in that. here's your "first look" at how wall street will kick off the day. the dow opens at 10,572 after gaining 46 points yesterday. the s&p added 3 points. the nasdaq climbed 11. taking a look at overseas trading, this morning in tokyo the nikkei fell 7 points. while in hong kong, the hang seng lost 34. investors, look on the bright side of mixed economic data yesterday, and it's all further proof that predicting where the markets are heading these days is a tricky business.

traders set aside weak manufacturing data out of new york state, focusing instead on a second straight month of growth in u.s. industrial production. this afternoon, investors will have an eye on earnings with reports due out from oracle and research in motion. overseas, japanese officials did not step in to keep its currency trading lower for a second day. the bank of japan's surprise intervention wednesday drove the yen sharply lower and the u.s. dollar more than 3% higher. here in the u.s., the semi sector was dealt a blow by a downgrade to chipmaker micron technology. micron shares shed 4.5%. meanwhile, mastercard shares shot up 5% after the company predicted a 20% rise in income for 2010. elsewhere, a healthy earnings outlook from kraft foods pushed its shares to a new high for the year. the world trade organization is condemning the u.s. for paying, quote, massive subsidies to boeing that violate

international rules, which they say gave it an unfair advantage over its european rival, airbus. the wto's preliminary finding is the latest in the ongoing battle over global aviation rights, which found airbus guilty of similar violations back in april. goldman sachs is facing a gender bias suit from three former female employees who claim the firm is ruled by a, quote, outdated corporate culture which underpays and fails to promote women. and finally, praise the lord and pass the pancakes? well, if you're talking about the international house of prayer in southern kansas, just be sure you don't call it an ihop. the famed pancake house is suing the house of prayer for trademark dilution and infringement. well, the rays reclaim first, home runs in bunches, and no heisman for vince young. plus, a game saving catch in cincinnati leaves diamondback fans seeing red. your "first look" at sports is

straight ahead. you're watching "first look" on msnbc. wall street is getting back on its feet.

but the financial landscape is still full of uncertainty. in times like these, you need an experienced partner to look out for you. heads up! and after 300 years we have gotten pretty good at that.

welcome back to "first look." i'm lynn berry. in sports, another unsung hero came up big last night in the race for first place between the yankees and the rays in the american league east. here is nbc's fred roggin. >> good morning. the first two games went to extra innings and the season finale lived up to its hype. pick it up in the seventh.

it appears derek jeter gets hit with the ball. but take a look, the ball hit the butt end of jeter's bat. the manager came out to argue the case and he was sent for an early shower. wouldn't you know it. next batter, curtis granderson hit his 18th homer of the year. two-run bomb puts the yanks up 3-2. it wouldn't last for long. stan johnson hit his second home ripped his second two-run homer of the night. the rays were up, 4-3. now to the ninth, tying run on third. first, alex rodriguez hit the plate and he struck out swinging. rays take over first place with a 4-3 win. it's a three-horse race for the nl west thanks to the surging rockies. troy tulowitzki hit a homer against the padres. think third multi hit game in a week. rockies won, 9-6. they're just 2 1/2 behind the first place padres. great finish in cincinnati. diamondbacks down two. two outs in the ninth. adam laroche hits one high, he hit it deep. if it's out, it ties the game. jay hustled to the wall and robbed him of a homer. what a way to win it.

reds win it in dramatic fashion, 7-5. the heisman trust has decided who will receive the 2005 trophy that reggie bush gave back on tuesday. and the trophy goes to -- no one. a heisman could be in this kid's future. high schooler ashley lowery in kentucky. picked up the loose ball. watch him jump over the defender on his way to the end zone for a touchdown. lowery is expected to become a star in college and after seeing that play, we know why. another look, another angle. you can only imagine what the defender was thinking. lowery finished with three touchdowns, so i guess you can say the sky is the limit for that high-flyer. that's your "first look" at sports. i am fred roggin. >> now for another look at the record, sheer bill karins. you have football, hurdles, just -- >> very good. a little leapfrog. >> exactly. >> that's cool. it is also cool in new england. it's actually cold. 47 this morning in albany. 47 in hartford.

if you are up here in new england this morning, it's jacket weather. warmer down in d.c., 68 to start your morning. clouds on the increase today, too. not the perfect sunshine in this region like we had the last couple of days. rain is heading your way. this area of yellow could be as much as two inches of rain over the catskills, berkshires. the forecast today, rain for buffalo, pittsburgh, serious, state college, albany later today. more or less boston and hartford, the best chance of rain for you in new york city, overnight tonight and tomorrow morning. friday's forecast, the rain moves out and cooler and clear out behind it. the rest of the country, not many problems, just some rain this morning in michigan. >> all right, bill, thank i. which actor is fighting mad over rumors he cheated on his wife. plus it's a list everyone wants to make, "people" magazine's best dressed.

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welcome back to "first look." i'm lynn berry, last night on "late night with jimmy fallon" jimmy showed us everyone is fair game when it comes to getting a laugh on their birthday. >> happy birthday to heidi montag, today parts of her turned 24. everybody, mexico celebrated its 200th birthday today. that's right. that's right. they celebrated at their favorite spot -- here.

did you hear about this? in october, a monument will be unveiled in south carolina honoring the band hootie & the blowfish. no word yet as to why. this is pretty interesting. a new report found that bing passed yahoo! to become the number two search engine in the u.s. yeah. if you want to find out more about that, just google bing passes yahoo!. a whole story about it. amazing. cool. >> and tonight jimmy welcomes actor john hamm, amy ryan, that's "late night with jimmy fallon" on your local nbc station. it's time now for your "first look" at entertainment news. has "star" magazine gone too far with yet another he's cheating on her story? one hollywood heavyweight says yes. for the second time this month, "star" printed a story quoting a woman claiming to have had an affair with ashton kutcher.

now he's tweeted threats threatening to to take the magazine to court saying "you don't get to stand behind freedom of the press when you are writing fiction." michael jackson's mother and his children are suing aeg live claiming the company breached its agreement to provide physical care for jackson and was negligent in hiring dr. conrad murray. finally, "people" is out with its best dressed list. here we go. zoe saldana is the red carpet queen. gwen stefani is the hip mom. olivia palermo is the uptown girl. jessica alba is the mix master. jennifer anniston, the american classic. rachel bilson is the denim darling. kate middleton, the princess in waiting. and bill karins is the weather guy. >> don't go there. did you come up with those names or that's what the magazine --

>> that's what the magazine -- i'm not that creative. the daring darling. i spent all morning preparing for this. no, thankfully i have more important things to do. i'm lynn berry this is "first look" on msnbc. stay tuned, "way too early" with willie geist starts right now. christine o'donnell, day two. one day after trashing her in public, establishment republicans circle the wagons around the tea party candidate who sprung the upset in delaware what does o'donnell say in a clip from her past that has detractors lathered up this morning. and mahmoud ahmadinejad tells andrea mitchell his country does not need the united states? the question is what does the little guy have in store for us in his u.n. visit next week? and derek jeter is accused of being a