tv CBS Evening News With Scott Pelley CBS May 18, 2012 7:00pm-7:30pm EDT
into a spectator sport. the question was what would the stock do? the answer at the end of the day-- not much. priced at $38 a share last night, it jumped to $42 at the open but soon fell back and closed at $38.23, a gain of just 23 cents a share. but investors bought a record number of those shares, making facebook the biggest i.p.o. ever. anthony mason begins our coverage. >> reporter: stock offerings don't usually become tourist attractions. >> we came over here to see what the commotion was about. >> reporter: but outside times square today, a crowd gathered to watch facebook go public. >> it's giving me chills because it's augs. >> our mission is to make the world more open and connected. >> reporter: on the other side of the country as facebook headquarters in california, foundefounder mark zuckerberg addressed employees of the social network that has 900 million monthly users. >> in the past eight years all
of you out there have built the largest community in the history of the world. >> reporter: on his own facebook page zuckerberg posted "listed a company on nasdaq." then by remote he rang the opening bell. more than 570 million shares would change hands today. outside nasdaq, cynthia smith said it was a good investment. >> get in on the ground floor and you would be a fool not to get it, like apple. >> reporter: but others weren't calling their brokers. >> after all, facebook doesn't produce a product so one has to ask why so much money. >> reporter: after rallying briefly, the most anticipated new stock in years ended the day about where it began. was this a fizzle, in effect? >> this was not a successful i.p.o. >> reporter: max wolfe is an economist with greencrest capital. >> the average first day is about a 15% gain overall and in tech land it's larger, about 25% gain and we have basically a nothing percent gain.
so they unveiled the great new starlet of the tech world here and she fell on the red carpet. she tripped and fell. >> reporter: still, zuckerberg made over $20 billion today and the stock offering values facebook at $104 billion. more than amazon, disney and starbucks. and that's the problem, some analysts say. facebook is being valued for its promise, not for its performance. in the market today, investors just weren't ready to pay that heavy a premium. >> was facebook ever in danger of falling below the $38 mark. >> reporter: it tested the level twice today particularly at the close and analysts say it looked like the banks rushed in to prop it up, they didn't want facebook closing on its opening day below its offering price, that would have been a huge embarrassment. >> o'donnell: no doubt, anthony, thank you. also making a lot of money on the facebook i.p.o. are the winklevoss twins, tyler and cameron. remember, they famously fought legal battles with zuckerberg
over who came up with the idea for facebook. the three men now have facebook shares totaling about $300 million. and it was a really beautiful day for bono, the lead singer of the rock group u2. an investment group he coowns bought 2% of facebook in 2009. today the group made nearly $1.5 billion when the stock went public. and then there are the people who work for facebook. john blackstone has the story of the overnight millionaires spreading the wealth. >> reporter: the employees at facebook's silicon valley headquarters were not the only ones celebrating in the region around menlo park, california. william collick is certain at least a few of the newly rich will be dropping by his luxury car dealership to try out lam boalamahasan boar genie models n cost more than $380,000. >> we're excited and congratulations to those involved in the facebook i.p.o.
and we're here to help in any way possible. >> reporter: ken deleon drives a $100,000 plus aston martin. he doesn't work for facebook, he's a real estate agent who's profitd from the sale of homes to a few of facebook's fortunate employees. 20-year-old moving into a $5, $6 million home? >> i had... one of my clients was in an 800 square foot apartment, moved into an 8,000 square foot home. the movers literally asked him "did you win the lottery." >> reporter: it's estimated today's stock sale made 1,000 facebook employees millionaires. but de leone says facebook workers, like many in the tech industry, don't flaunt their wealth. >> my client who's $100 plus million, he drives a toyota prius. so they're still centered. >> reporter: with companies like google and apple also thriving, there's now so much money in silicon valley that even modest homes fetch prices well over a million dollars and there are multiple buyers. this one listed at $1.4 million and sold for almost $2 million.
de leone is now putting the finishing touches on this $10 million mansion near facebook headquarters. time to go on the market just as the newly wealthy workers start house hunting. and here at facebook's headquarters, employees have been keeping a low profile today, but by one calculation, the average worker here is now worth $4.9 million, norah, that's on paper, at least. >> o'donnell: wow. all right, thank you. we're continuing to examine the evidence of the case of george zimmerman, the neighborhood watch volunteer charged with murdering an unarmed teenager, trayvon martin. zimmerman claims he acted in self-defense. mark strassmann now with the evidence and what it shows and what it doesn't show. >> reporter: the convenience store surveillance video showing trayvon martin buying snacks was first seen by his family last night. what was it like fo for trayvons mother to see him in that video?
>> she says she stayed upmost of the night crying last night. >> reporter: lawyer benjamin crump represents the teenager's parents. >> if you're a parent, you know, that is... there's an unimaginable thought that this is the last few minutes of my child's life. >> reporter: the state's evidence filed details injuries from the fight but offers no clear clues to explain what started the confrontation. it began as martin was talking to his girlfriend on his cell phone and here is what she told police. >> reporter: one witness told police he saw martin pummeling zimmerman like a mixed martial arts expert. >> reporter: but another witness' description is murkier. >> reporter: some of the case's most important evidence
has yet to be made public, including zimmerman's three interviews with police and his cell phone records. we've learned that includes texts zimmerman sent after the shooting, some of them disparage leaders of justice for trayvon rallies with language described as offensive. mark o'mara, zimmerman's lawyer, has yet to get copies of all those texts. so you still will be looking for that? >> absolutely. >.>> reporter: and if there's there? >> we'll deal with it. i don't know the context of it. i don't know what it was in responsible. i'm sure that as every other part of this case there will be explanations on both sides, let's wait and see what we have. >> reporter: o'mara expects to get the rest of the prosecution's case in pieces over the next few weeks and, norah, some of the evidence now under seal may be made public only in court. >> o'donnell: all right, mark, thank you. turning now to politics and a new battle over defense spending. president obama and republican leaders had agreed to trim the pentagon budget, but today the house passed a bill that adds $8 billion in new spending.
it includes funding for ships and aircraft that the military wants to retire. the president has threatened to veto it. the bitter climate in congress is holding up a measure on which both sides agree. democrats and republicans say they're in favor of extending the 1994 violence against women act. it protects victims of abuse. but does it go far enough? nancy cordes is at the capitol tonight. nancy? >> reporter: norah, the debate over this issue has been raw and emotional with some female members putting their personal, painful histories on the record to try to make their case. democrat gwen moore of wisconsin and republican sandy adams of florida share a history of being abused by men they trusted. moore says she was attacked in her 20s by a friend who gave her a ride. >> and he decided to take a detour behind some buildings to rape me and choke me almost to
death. >> reporter: adams fled an abusive marriage when she was a new mother barely out of her teens. >> the man i married had a penchant for drinking and was very violent when he drank. >> reporter: but the two women find themselves on opposite sides of a fight over the violence against women act. democrats say the bill needs to be modernized and their version expands protections to cover illegal immigrants, lesbian, gay, and transgender americans, and native americans, groups whose abuse complaints often get overlooked. but house republicans like adams say that's an election year stunt, singling out groups for special treatment. >> turning this reauthorization into a political issue is not only wrong but it's dangerous. it is dangerous. >> reporter: the democratic version passed the senate with some bipartisan support. >> s.b. 1925 is passed as amended. >> reporter: the republican version passed narrowly in the house. >> the yays are 222, the nays are 205. >> reporter: and now the two
sides are at an impasse. >> this is a direct assault on women's lives. three women are a day die from victimization. >> reporter: house speaker john boehner couldn't say how the conflict will be settled. how do you reconcile these two bills? is this going to turn into a fight over gay rights? >> well, we're eager to resolve our differences between the house and senate on the issue of domestic violence. >> reporter: this law allocates more than $600 million a year to help women who have been victimized and to go after their attackers and, norah, part of the reason the fight over the law has been so bitter is that both parties are trying to prove to women voters that they're on their side in an election year. >> o'donnell: all right, nancy, thank you. and raising the ship, how they plan to salvage the "costa condordia." the scale model used by the military to plan the bin laden raid. and how an eclipse will turn the sun into a ring of fire.
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to help make them resistant to fracture. and with reclast, well, no other osteoporosis treatment is approved to help protect in more places: hips, spine, even other bones. [ male announcer ] you should not take reclast if you're on zometa, have low blood calcium, or kidney problems. or you're pregnant, plan to become pregnant or are nursing. take calcium and vitamin d daily. tell your doctor if you develop severe muscle, bone or joint pain, if you have dental problems as jaw bone problems have been reported, or if you develop new or unusual pain in your hip, groin or thigh. the most common side effects include flu-like symptoms, fever, muscle or joint pain, headache, nausea, vomiting and diarrhea. if you have questions about your current treatment, ask your doctor about reclast. >> o'donnell: at the white house today, president obama held his first meeting with the new french president ahead of this weekend's g-8 summit at camp david and mr. obama got some bad fuse. francois hollande said he plans
to pull out all 3,000 french combat troops out of afghanistan by the end of this year. that's two years ahead of schedule. president obama will ask nato leaders to contribute more than a billion dollars for afghan security when they meet in chicago on sunday. that may be a hard sell because of dissatisfaction with afghan president hamid karzai ham and the corruption in his government. allen pizzey in kabul has more on that. >> reporter: from a traffic cop caught on surveillance video taking a bribe to government cronies accused of looting nearly a billion dollars from the country's biggest bank, corruption is rife in afghanistan. it even has its own language. traffic cops prod drivers for bribes by asking "is there a scorpion in your pocket?" a high level official will ask for long hairs, a reference to benjamin franklin's hair style. >> it starts from the street and it goes to the palace. but it is not what afghan people
want. >> reporter: social activist shafiq hamdam formed a citizens group to expose what he says is afghanistan's biggest challenge. corruption is more of a challenge than security? >> exactly. corruption feeds unrest, corruption feeds insurgency. >> reporter: a recent congressional report concluded that corruption undermines the effectiveness and legitimacy of the government of president hamid karzai. >> his government is the most corrupt government is is n the country. >> reporter: the karzai government is the most corrupt afghanistan has ever had? >> exactly. >> reporter: one of the biggest problems is finding a secure way to pay salaries, including those of the afghan security forces who will take over when american troops withdraw in 2014. government officials have been skimming up to 30% off employee salaries according to businessman zahir khoja. so a system was set up to bypass officials by using cell phones to pay monthly wages. so if your salary was $100, you were receiving maybe $70 before. not to mention it was taking upwards of 20 days to get to you.
>> reporter: under the new system, a cell phone message is sent to employees telling them they've been paid. khoja said a text message with a numbered code allows money to be collecting with complete security. the system should retrieve up to $60 million a year that had been lost to corruption. huge as they that may sound, however, it barely dent it is problem that has to be solved to help ensuring stability when u.s. forces pull out. allen pizzey, cbs news, kabul. >> o'donnell: the raid that killed osama bin laden last year was planned down to the smallest detail. now we know just how small. a scale model of the al qaeda leader's hideaway in pakistan went on display in the pentagon. built of styrofoam and clay the model was built on images of the compound taken by satellite. it was used to brief top u.s. officials ahead of the raid. now a large-scale operation, the plan to refloat an italian cruise ship. next.
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>> o'donnell: two american service members were killed today by enemy rockets in afghanistan. here at home, it's all too easy to forget about the war and the sacrifice of americans in uniform and their families. but there is a man determined to make sure our fallen heroes get the final salute they deserve. steve hartman met him "on the road". >> reporter: if you only new private first class dustin
gross. or his family. or even if you just grew up in the same small kentucky town you'd probably be here, too. but what if you didn't know dustin at all? what if all you knew about him was that he was an army soldier killed in afghanistan last week by a roadside bomb? how far out of your way would you go to honor his loss? >> 602 miles. >> reporter: this man drove 11 hours. >> all they know is that i'm coming to try and help them pay respect to one of their own. >> just grab flags and get going. >> reporter: larry eckhardt is a property manage from little york, illinois who lives by two mottos: "nothing is more important than honoring a fallen soldier" and "there's no such thing as too many flags." that's why for the last six years he's been going to every funeral he can. he typically arrive it is night before, recruits local volunteers and then, rain or shine, lines the processional route with stars and stripes forever. in this case eight miles worth,
2,200 flags. >> that's somebody that's got a heart right there. >> done a real good thing, that's for sure. >> that's a heart. >> reporter: these are dustin's parents. >> i don't think we can thank him enough. i really don't. >> reporter: it really is an incredible gift paid for through donations and a lot of his own money. larry has gone into debt doing this, partly because of the spectacular site it creates, but even more because of the stage it sets. >> it kind of gives a rallying point, you might say. this gives the town a way of coming out and saying thanks. >> reporter: turns out when you line a country road like a hero's coming he gets treated like one. people drop whatever they're doing, flags beget flags and for eight miles one family's loss is shouldered by an entire community. this was larry's 86th funeral and although he hopes more than anything that it's his
last, you can bet that if and when the time comes he will be there to honor that soldier he never met for a that sacrifice he can't ignore. steve hartman, "on the road", in mount sterling, kentucky. >> o'donnell: and for more on this story and the others you saw on our broadcast tonight, check out our redesigned web site cbsnews.com. that's the "cbs evening news" for tonight. scott will be along sunday on "60 minutes" and he'll be back here on monday. i'm norah o'donnell. thanks for joining us tonight and good night. captioning sponsored by cbs captioned by
now, "entertainment tonight," the most watched entertainment newsmagazine in the world. what led this kennedy wife to commit suicide by hanging? the connection to hollywood. the latest on the funeral. her troubled marriage with robert kennedy jr. >> i'm doing this because my husband said that we have to participate. >> and his new relationship with hollywood actress cheryl hines. donna summer, secret lung cancer. was it caused by smoking or e did she blame 9/11? >> i was in new york for 9/11 and it was just horrific. >> the latest on her public