>> and new detail about the "newsweek" cover photograph of michele bachmann. where one where she looks all googly-eyed. how does the magazine explain using that image against the hundreds of others taken during a photo shoot. hear what they have to say. it's "way too early" for this. good morning. i'm willie geist. and this is "way too early," the show that was outraged over its unfair cover shot, on "ferret monthly" magazine. you're listening live on sirius/xm radio. you can do what there dr. marcus bachman is, and text the word awake, followed by your response. we'll read the best responses, as we always do, later in the

show. the next 30 minutes will be your cram session for this wednesday, august 10th. a lot to tell you about today, including the first picks in the 2011 congressional supercommittee fantasy draft. we'll tell you who harry reid has chosen. plus, what in the wild world of sports is going on here? seriously. how does that happen? honestly, i don't know. we'll find out together a bit later in the show. first, let's get to the news, live at 5:30 a.m., here at 30 rock in new york city. markets around the world are reacting after a tumultuous trading session on wall street yesterday. news causing the stocks to rise, fall and rise again. the s&p 500 jumps 53 points for a gain of 4.7%. those were the biggest one-day point and percentage gain for the two indices since march

2009. cnbc's sue herrera recaps yesterday's wild ride on wall street. >> reporter: ahead of the federal reserve's statement, stocks were up more than 240 points, on hopes that the fed might intervene to stabilize the market. >> moments from the fed decision. >> reporter: when it got word of that action. >> no change in interest rates. no change in interest rates. >> reporter: that was not enough to keep the rally going. stocks fell more than 200 points. >> that wasn't what i was hoping to hear. and there's nothing that he can say at this point. i'm doubtful he can restore investor confidence. and that's a major scare at this point. >> reporter: the dip was temporary. and stocks shot up to end the day up nearly 430 points. >> an incredible rally. a rip-roaring rally. in a statement, the fed had confirmed what investors had decided. downside risk to the economy have increased. and for the first time, the fed

set a target date for interest rates. likely to warrant exceptionally low levels through mid 2013. >> the fed is hoping to encourage investors to come back in and buy stocks, buy corporate bonds. buie things that have some yield left. >> reporter: but for many, like this retired realtor in miami, it will take more than one day to undo the damage. >> what we were looking forward to in our retirement and having these funds, you know, to carry us on, it's just dwindling down. and so, you wonder, where is it going to end? >> cnbc's sue herrera. wall street's gain is providing a boost to stocks in asia and europe. we turn to london for an early look at the markets. cnbc's steve sedgwick live for us there. what happened yesterday, my friend? >> it was quite incredible. as sue was talking there, the magnitude of these moves was

stunning. the s&p, which is a broad brush index of the united states, reversed directions six times. the dow was down within half an hour after the fed announcement. and then, rallied 600 points off its low. the s&p at one stage, was in bare market territory, having growing 400%, in its april high. you are in bear market territory. as far as the markets are concerned today, they're quite calm. they opened up and stayed up. we haven't seen the huge reversals of fortune. the nikkei, that was up 1% today. i'm looking at the big european markets. london is steady, up at 1.5%. the german market, up 2.5%. and the 600-point range we saw yesterday, they're down just 19 points. all very calm. albeit for the moment. back to you. >> we'll take calm for now. steve sedgwick, live for us in

london. senate majority leader, harry reid, revealing his choices for the debt supercommittee, the group charged with cutting $1 trillion from the deficit by the end of the year. reid announcing he will appoint senators patty murray, max baucus, and john kerry to the bipartisan panel. reid's picks could be a preview of another political fight to come. the republican chairman took issue, saying that reid's appointment is proof that democrats are not serious about deficit reduction. he calls patsty murray the democrats' fund-raiser in chief. they have until august 16th to name members to the 12-member committee. new riots in the u.k. for the fourth-consecutive day, as protests expand into nottingham and manchester. police taking unprecedented

action. authorizing the use of rubber bullets. in london, police have been successful bringing calm to the city, after cameron added about 10,000 officers and armored vehicles to patrol the streets. a large police presence is expected to remain in london for at least the next 24 hours. more than 1,100 people have been arrested in the violence so far. and more than 110 police officers have been injured. nbc's michelle kaczynski has more from london. >> reporter: there are new flash points in britain. but nothing like london. over three nights of raw violence out of control. the destruction. open attacks on police. almost celebratory looting of family businesses. the day after is heartbreaking. >> i don't know why people do this. certain images linger. this young man throws rocks at officers. an older citizen tries to talk him down.

and is answered with violence. looters intent on breaking in. the victims escaping burning buildings. some having to jump. >> these are sickening scenes. this is criminality, pure and simple. and it has to be confronted and defeated. >> reporter: the prime minister cut short his vacation to deal with the rioting that spread to more than a dozen neighborhoods in london and beyond. with 16,000 police on the streets. that force, very angry teenagers, tearing up the capital. >> the police have too much power. and they're using that power. >> reporter: but for many, there's not any real reason behind it. >> just lazy. and going around robbing shops for easy money. >> clearly, people will point to deep sociological background polarization. i don't find that satisfactory information. >> is it embarrassing? >> i'll be honest. i feel furious. >> reporter: citizens took their own action. volunteering.

some cheered as police rolled in. three days late. but many willing to understand they were unprepared. no one expected this or had seen before. or fully comprehends. >> michelle kaczynski reporting for us there from london. uh you saw inside michelle's piece, this photograph, the one that will become the iconic one from these four days of riots. you saw the london mayor, boris johnson in there. he went in to say, this is not the time, in the midst of austerity to be cutting police officers. other news in the states. the u.s. military investigating the cause of a devastating helicopter crash that killed 30 american service members in afghanistan last weekend. questions remain about why u.s. forces were called into a firefight, in a dangerous eastern region of the country. and what was known about the situation. pentagon officials so far, not commenting on that probe.

it comes after president obama met the two military aircraft, carrying the troops' remains. the president seen saluting. sent an hour with 250 family members of the fallen, along with defense secretary, leon panetta, and joint chiefs chairman, admiral mike mullen. in wisconsin last night, republicans fend off a stated senate recall election, that was largely described as a referendum on the policies of scott walker. walker drew the ire of many unions in march, when he used a majority to strip public employees of their right to bargain collectively. it sparked widespread protests across the state. democrats were able to capture two of the six seats up for grabs last night. dashing their hopes of gaining a

majority. in a statement last night, governor walker took a more conciliatory tone saying, in the days ahead, i look forward to working with legislators for all parties to grow jobs for wisconsin and to move our state forward. it was a local election. but it drew big national money. special interests poured as much as $31 million into those recall races. and the controversy continues to grow over "newsweek's" latest cover, over michele bachmann. the feature is calling what some are calling an unflattering image of the presidential hopeful. bachman appears wide-eyed, with the headline, "the queen of rage." she is revealing outtakes of the cover shoot. including images of the congresswoman campaigning in iowa and washington. bachman's campaign claims the photo was talken during a lighting test.

tina brown says in a statement, michele bachmann's intensity is galvanizing voters in iowa right now. and "newsweek's" cover captures that. we'll hear more from tina when she joins us on "morning joe." bachman will speak to david gregory sunday, when "meet the press" goes to iowa. still ahead, new england patriots' wide receiver chad ochocinco announces his housing plans in his home city. did you hear about this? says he's going to move in with a patriots' fan. perhaps even mike barnacle. we'll let chad explain. and jon stewart weighs in on the michele bachmann cover, with a gag in a looked oddly familiar to some of you viewers who e-mailed us from "way too early" nation. is that a thing? that clip and a check on weather.

>> david berkowitz, 24. spent his days sorting letters in the post office, so meek and mild and quiet, nobody ever noticed him. and spent his nights, police say, roaming the streets of new york city, with a .44 revolver, shooting young people and killing six of them.

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welcome back to "way too early." you look at a beautiful picture of the sun rising over new york city. let's get a check on weather from nbc meteorologist, bill kari karins. >> it rained in new york city. boston got nailed also. many areas got hit in new england, with much-needed

rainfall. the grass and the lawns needed it. today is our transition day. humidity levels will be dropping. you'll love thursday, friday and saturday, on i-95, back through the great lakes, the ohio valley. a taste of fall for some of us. we're seeing severe weather, around kansas and ft. smith, arkansas. these places need the wet weather. and dallas, 39 days in a row of 100-degree heat. we'll do it again today, with a forecast high of 107. it will be a close call. friday and saturday, temperatures are supposed to drop a little bit. probably will be right around 100. we have to -- nervous anticipation, of course. >> 107 for now. all right, bill. thanks so much. let's turn to sports. we begin in the american league central, where the indians started the night four games behind the tigers. they played last night in cleveland. in the 12th inning, game tied at 2-2. brendan bosh makes a great diving catch in left. nice play by the kid. indians rookie snags the line

drive to second. defense, keeping this game tied. great play there. tied until the bottom of the 14th. indians with the bases loaded. throwing inside to fukudome. and hit his right arm. that brings in the winning run. did he lean into it a little bit? maybe. indians win 3-2, on a strange walkoff hit by a pitch. they are three games behind the tigers. the odds-on favorite to win the world series, the phillies, last night, taking on the dodgers out in l.a. one of the reasons they're favorite to win it all, their pitching staff. and that man, cliff lee. last night, doing it all. strikes out andre ethier. he struck out ten. by the way, this is good at the plate. top of the seventh. cliff lee goes deep off ted lilly. that decided the game. phillies win 2-1, on the strength of cliff lee's home

run. crazy game. yankees/angels in the bronx. derek jeter scores two. 4-4. then, in the ninth inning, look at that. rivera, blowing another save. bobby abreu, the former yankee, gives the angels a 6-4 lead. that was off rivera. now, bottom of the ninth. runners on the corners. jordan wall streeten does the fake to third and throw. and it works. that never works. they get curtis granderson in a rundown. that was the final out of the game. 6-4, was the final. new york trails boston by 2 1/2 games in the a.l. east. chad ochocinco, still adjusting to his new team and his new city, while he looks for a place to live. he has a plan to get to know the area. >> i'm going to do something different. i'm going to stay with a fan the first two, three weeks of the

season. that should be fun, until i get myself acclimated, learn myself around and actually just find a place. not sure how many boston fans i have. i'll pick somebody. not sure how it will work. they have to have internet. they have to have x-box. and that's about it. >> are you serious? >> have i ever lied to you before? >> chad ochocinco going to move in with a new england patriots fan that he chooses at random, as long as they have x-box. coming up on "morning joe," the riots quiet a bit in london last night. but the violence continues to spread in great britain. what's behind it? and when we come back here, we'll huddle up around the water cooler to watch a rant for the ages.gingivit . thankfully, there's new crest pro-health clinical gum protection toothpaste. it helps eliminate plaque at the gumline, helping prevent gingivitis.

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as we told you at the top of the show, the federal reserve gave the markets a boost by announcing interest rates would be frozen for two years, and hinting there could be more economic stimulus to come. if you want to sound smart today, tell your friends the federal reserve was created in 1913, to provide the u.s. with a stable and flexible monetary system. in addition to setting targets, the fed helps to regulate banks,

as well as keeping enough currency in circulation to meet public demand. let's check in with our buddy of dylan ratigan, a man who speaks truth to power at 4:00 p.m. every day on this network. he is whip-smart, devilishly handsome and passionate, as you might notice, in his analysis yesterday of the american political system. >> i'm tired of republicans and democrats, the republicans that want to burn the place to the ground. and democrats, with all due respect, to announce a plan to get it through the second term of their presidency and screws me and my kids when it's over. until we do that, we have to deal with the extraction at foot. it's the reason the financial markets are behaving the way they're behaving. it's a mathematical fact. this is not some opinion. this is a mathematical fact. we're sitting here arguing about whether we should do the $4 trillion plan that kicks the can down the road for the president for 2017 or burn the place to

the ground. both are reckless, irresponsible and stupid. and the fact of the matter is -- until we actually -- i'm sorry to lose my temper. but i've been coming on tv for three years doing this. and the fact of the matter is, there's a refusal on both the democratic and the republican side of the aisle to acknowledge the mathematical problem, which is the united states of america is being extracted. >> dylan ratigan. the best part of the clip, the stone-faced cutaways on the show. if you look in the background, our good friend from makeup, alisa, a little alarmed. what in the sam hill is going on there? alisa, getting it done. some of the viewers noticed something on "the daily show" last night. we're going to play for you a clip of jon stewart talking about that michele bachmann "newsweek" cover. and we'll tell you what you pointed out for us. >> you've got to go pretty far out of your way to find a crappy

photo of michele bachmann. and you did. i look at that picture and think, isn't that a little soon to be doing a female remake of "the 40-year-old virgin." >> so, the e-mails came in. i wake up to a few of them. here's us on "morning joe" on monday. >> did you see the new copy of "newsweek"? >> it calls to mind one other famous photograph. almost exactly the same. you know what i mean? >> i see the comparison. >> show the other one. >> he's not cross-eyed. >> similar gaze. >> yeah. >> as we said many times, jon stewart steals all his material from 5:30 a.m. cable news programming. that gets the look of disapproval. one more thing for you. did you see this clip? an unusual, i dare to say, pretty unusual, accident closing down a freeway in houston in the middle of rush hour yesterday. that's a tractor-trailer.

don't ask me how it got caught in the middle of a highway sign. the trailer separated from the cab. it took flight. the wind got under it. got stuck on a highway sign. they're investigating what happened. i don't know if i want to know. let's keep the mystery. still ahead, why are you awake? your misguided tweets, texts and e-mails are next. [ female announcer ] what if your natural beauty could be flawless too? discover aveeno

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the one story on msnbc.com right now. tampa bay sheriff says three fugitive siblings extremely dangerous. how do you pick your number one stories? number two, democrats fall short, in the recall elections in wisconsin. at the top of the show, we asked what are you doing up this hour? our producer has a few answers. what are they saying? >> michael writes, planet sub seeds. now, waiting and watching my chia pet grow. >> that's depressing. watching your chia pet grow. i'm glad you're here with us this morning. what else? >>