PAUL KANGAS: A day of profit warnings on Wall Street. Dow component, DuPont led the pack. The world's largest chemical company says a rise in raw materials costs and weakness in the euro will impact its full-year earnings. DuPont now expects earnings between $2.85 and $2.95 a share for this year. That's down from Wall Street estimates of about $3. The news was a downer for DuPont stock which fell 11 percent. And analysts say oil prices are still the key to DuPont's outlook.

ALEX HITTLE, CHEMICAL ANALYST, A.G. EDWARDS: I think the thing that could turn it all around in a big hurry is if oil prices were to suddenly drop. And they don't need to drop back to, you know, $11 a barrel, but if they would drop back into the mid to upper 20's, even that could help the company substantially; and that could happen in the early part of next year.

KANGAS: Also warning about earnings today, Campbell Soup (CPB) and May Department Stores (MAY). Campbell says continued weakness in soup sales will hurt fiscal first-quarter earnings by 10 to 15 percent. May blames slow back-to-school sales for a drop of as much as 15 cents in its fiscal third-quarter earnings.

Nightly Business Report transcripts are available on-line post-broadcast. The program is transcribed by FDCH. Updates may be posted at a later date.

The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT.

Information presented on Nightly Business Report is not and should not be considered as investment advice.

©2000 Community Television Foundation of South Florida, Inc.


09/06/2000: The Justice Dept. Clears The Deutche Telekom/VoiceStream Deal

SUSIE GHARIB, NIGHTLY BUSINESS REPORT ANCHOR: The Justice Department cleared Deutsche Telekom's (DT) takeover bid for mobile phone operator, VoiceStream (VSTR). The German telecom giant still needs to get clearance from the Federal Communications Commission. But as Stephanie Woods reports, now Congress is also weighing in on the deal.

STEPHANIE WOODS, NIGHTLY BUSINESS REPORT CORRESPONDENT: The German government owns 58 percent of Deutsche Telekom. That, say critics, is the problem when it comes to buying VoiceStream, or any U.S. telecom company.

REP. EDWARD MARKEY (D) MASSACHUSETTS: We are trying to foster a .com revolution, not a .gov revolution. In the new economy, of global proportions, governments have no place competing in the private marketplace.

WOODS: Legislation is making its way through Congress that would forbid any foreign company that's more than 25 percent government-owned from taking over a U.S. telecom business. Opponents call it, "protectionism at its worst."

REP. ANNA ESHOO (D) CALIFORNIA: We cannot simply reverse course when it comes to our markets. To do so, I think, undermines our credibility, at the least, and at worst, exposes our economy to retaliation.

WOODS: VoiceStream argues its deal reduces the German government's stake to 45 percent. CEO, John Stanton made the case to lawmakers today, saying U.S. customers will be the winners from the $50 billion Deutche Telekom deal.

JOHN STANTON, CHAIRMAN & CEO, VOICESTREAM WIRELESS: The proposed legislation is simply a categorical ban on our transaction; and as such, would deprive our consumers, and frankly, the consumers that utilize our competitor's services, of the benefits of lower prices.

WOODS: The deal must still be cleared by the FCC, but Chairman Bill Kennard indicated he doesn't see foreign government ownership as an obstacle to the deal.

WILLIAM KENNARD, CHAIRMAN, FCC: And I am confident that if government ownership presents a competitive issue, or a threat to competition in our country, then we would be able to ferret out the problem, and deal with it.

WOODS: Analysts expect VoiceStream's hook-up with Deutsche Telekom will ultimately go through, but not without a lot more political static. Stephanie Woods, NIGHTLY BUSINESS REPORT, Washington.

Nightly Business Report transcripts are available on-line post-broadcast. The program is transcribed by FDCH. Updates may be posted at a later date.

The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT.

Information presented on Nightly Business Report is not and should not be considered as investment advice.

©2000 Community Television Foundation of South Florida, Inc.

09/07/2000: United & The Pilot's Union Work To Land A Contract

PAUL KANGAS: Leaders of the United Airlines' Pilots' Union are deciding this week if a new four-year contract will fly with its members. The carrier calls the deal, "generous." But as Diane Eastabrook explains, some analysts say it's too expensive for United, and for its competitors as well.

DIANE EASTABROOK, NIGHTLY BUSINESS REPORT CORRESPONDENT: This week, the Master Executive Council representing United Pilots is behind closed doors, combing through the tentative contract reached nearly two weeks ago with the carrier.

CAPT. HERB HUNTER, UNION SPOKESMAN: I think it has some things that are very, very good for us. Like with any deal, there's going to be something that somebody doesn't like. I don't think there's a deal out there that's ever been done in the history of labor where you had a 100 percent vote. So somebody's not going to like something for sure.

EASTABROOK: Analysts are among those who don't like the deal. The Airline Pilots Association and United won't talk about the contract, but analysts believe it is too generous to the pilots. Analysts think the contract gives them 21 and 28 percent salary increases, depending on the size of aircraft they fly. It also offers retirement, pay and job protection if a merger with US Airways (U) is approved. The salary hikes would make United's 10,000 pilots the best-paid in the U.S., and could prompt pilots at competing airlines to demand similar wages. Delta Air Lines (DAL) is currently embroiled in contract talks with its pilots, and some analysts fear pilots at American Airlines (AMR) may vote down a one-year contract extension, recently negotiated with that carrier.

RAYMOND NEIDL, AIRLINE ANALYST, ING BARINGS: American is very anxious to get a contract settlement with their pilots because this contract settlement gives American a large amount of additional flexibility in using regional jets. And to remain competitive, American needs that. So they very much want this one-year extension to go through.

EASTABROOK: Neidl also warns if the economy declines and takes passenger loads with it, the airlines will have trouble paying higher labor costs and maintaining solid earnings.

NEIDL: And it's also a danger to the workers because it would give the company a greater incentive to lay people off in an economic downturn.

EASTABROOK: If the Master Executive Council OKs the contract, ballots could go out to United pilots as early as next week. But it could take the pilots up to six weeks to finish voting. Diane Eastabrook, NIGHTLY BUSINESS REPORT, Chicago.

Nightly Business Report transcripts are available on-line post-broadcast. The program is transcribed by FDCH. Updates may be posted at a later date.

The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT.

Information presented on Nightly Business Report is not and should not be considered as investment advice.

©2000 Community Television Foundation of South Florida, Inc.

09/07/2000: The Death Tax Dies

SUSIE GHARIB: In Washington, the so-called death tax died today. Republicans in Congress couldn't raise enough votes to override President Clinton's veto of the repeal of the estate tax. But as Congress rushes to an early election year adjournment, there's still hope that other tax cuts are possible. Darren Gersh reports.

DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: Republicans may have lost a vote on the estate tax repeal, but they clearly believe they have gained an issue for the campaign.

REP. TOM DeLAY, R-TEXAS: We will let the American people decide by their own vote who they want to represent them because if they really want this tax relief, then we need a Republican Congress with a Republican president that will sign it.

GERSH: With the election now just two months away, analysts say hope for any tax legislation this year now hinges on political calculations.

CLINT STRETCH, TAX POLICY DIR., DELOITTE & TOUCHE: If the Republican leadership decides that their control of the House is in jeopardy under an attack that they're a do nothing Congress, then they'll try to do something. But what they will do will be very small. They'll have to work it out with the president.

GERSH: Estate tax repeal proved surprisingly popular with Democrats earlier this year. But in the end, Democrats argued the Republican version of death tax repeal would have favored the wealthiest two percent of the population.

REP. RICHARD GEPHARDT, MINORITY LEADER: People do not want to spend the majority of this surplus on tax cuts and they sure don't want to spend it on tax cuts for the wealthiest Americans.

GERSH: There is still some hope for a smaller tax cut this year, one focused on encouraging retirement savings. Legislation is now moving in the Senate that would increase the maximum IRA deduction to $5,000 and the maximum 401K contribution to $15,000. The bill also shortens the vesting period in pension plans and would allow taxpayers over 50 to make larger so-called catch up contributions.

STRETCH: That has a lot support on both sides of the aisle. Members are very enthusiastic about helping people save for their retirement.

GERSH: There is also an effort underway to work out a compromise to soften the impact of an increase in the minimum wage by cutting taxes for small businesses. But that depends on whether both parties want to get something done now or wait until after the election when their guy might be in the White House. Darren Gersh, NIGHTLY BUSINESS REPORT, Washington.

Nightly Business Report transcripts are available on-line post-broadcast. The program is transcribed by FDCH. Updates may be posted at a later date.

The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT.

Information presented on Nightly Business Report is not and should not be considered as investment advice.

©2000 Community Television Foundation of South Florida, Inc.

09/07/2000: Prime Mover: Lewis Platt/CEO, Kendall-Jackson Wine Estates

SUSIE GHARIB: Kendall Jackson has the distinction not only as one of California's largest and most successful wine makers, but its boss is one of Silicon Valley's most famous CEOs. Lewis Platt, the former chairman and CEO of Hewlett Packard and an avid wine collector, is now the CEO of Kendall Jackson. The company is very different from H.P. (HWP), sales of only $300 million and it's privately held. Its Vintner's Reserve Chardonnay and Grand Reserve are top selling brands in the U.S. Earlier this year, Kendall Jackson was named winery of the year by "Bon Appetit" magazine. In tonight's prime movers segment, Donald van de Mark of myprimetime.com asks Platt what's the difference between wine and high tech.

LEWIS PLATT, CEO, KENDALL-JACKSON WINE ESTATES: Wine is totally different from high tech in just about every way imaginable. High tech, I think the big difference is that everything in high tech happens in warp speed. Things in wine happen slowly. You plant vines and five years from now you get a crop and you make some wine and two years later you're selling it. So I think that's probably the biggest difference that I see.

DONALD VAN DE MARK, MYPRIMETIME.COM: Focusing on wine first, Kendall Jackson has been a very strong growth company and is now a global wine company. People have talked about an initial public offering, an IPO for this business. Are you considering it?

PLATT: Well, we've talked from time to time about getting access to the public capital markets and it's probably something we will do in time. We're not in the process of getting ready for an IPO right now, but it's certainly something that's in the back of our minds.

VAN DE MARK: The dot.com mania that we have experienced, particularly over the past year, and then the bust that we really experienced in the springtime, what do you make of that from an investor's standpoint and what do you say to investors who are interested in this sector of the economy? Is there more carnage to come or do you think that there's a good outlook?

PLATT: Well, I continue to personally invest in dot.com stocks, so I guess the carnage of a few months ago hasn't exactly turned me off, but I'm being more careful. I think there's been a return to quality. There's an interest in things like earnings, which didn't seem to be important for a while. So I think people who are thinking about investing in dot.com stocks need to do a couple of things. Number one, build a portfolio, because I don't think anybody is smart enough to pick the single stock that will make it, so you need to have a few to, you know, sort of hedge your bets. And number two, look for real quality, people you are convinced can turn a profit because suddenly that's important again.

VAN DE MARK: How do you value a company, then? Is it on profits or revenue growth, because for a while there we didn't know how to value these things?

PLATT: I think now you have to actually focus on the profitability side of the equation and forget, don't forget the revenue growth, but you can kind of forget that in terms of being the only driver of the stock price.

VAN DE MARK: The dot.com mania that we have witnessed, that is a lot of people rushing to IPOs and a lot of hired guns, if you will, going out there just looking for stock options, has that done damage to the high tech industry or Silicon Valley? Has it been a bad thing or maybe just a natural thing?

PLATT: I think it has made it harder for the established companies, whether they, you know, be a Hewlett Packard or an Intel (INTC) or a Cisco (CSCO), to hang on to their good employees just because people were offered this opportunity to go and get rich. A few of them actually did. Many of them didn't. So I think that there is some return to sanity in terms of the way employees are looking at companies today, just as there is a return to sanity in terms of the way investors are looking.

VAN DE MARK: Congratulations on your many years and successes at H.P. and this great transition to the wine industry.

PLATT: Yeah, thank you.

Nightly Business Report transcripts are available on-line post-broadcast. The program is transcribed by FDCH. Updates may be posted at a later date.

The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT.

Information presented on Nightly Business Report is not and should not be considered as investment advice.

©2000 Community Television Foundation of South Florida, Inc.

09/07/2000: Commentary: Beware The Raider Icahns

SUSIE GHARIB: Tonight's commentator has a rather different take on corporate takeovers. Here's Allan Sloan, Wall Street Editor of "Newsweek" magazine.

ALLAN SLOAN, COMMENTARY: That rumbling from Detroit these days isn't an earthquake. It's Alfred P. Sloan turning over in his grave. Alfred, no relation to me, unfortunately, is the father of the modern General Motors (GM). He is agitated because G.M. has fallen into such a state that that it is sort of under attack by a corporate raider, Carl Icahn, of all people. Thirty years ago, Icahn was a financial pimple. GM was one of the world's great companies. Now the world has changed. Icahn, who made a mint raiding corporations, is worth a ton of money. Meanwhile Wall Street values GM as if its car business is so lost that even a GPS system won't help. Wall Street values GM's satellite TV business, Hughes Electronics, more than it values GM, a major dis. Icahn's goal, if he actually does anything, would be to force GM to separate its businesses or sell one or maybe both of them, possibly to Rupert Murdoch, who is hot for satellite TV. That would really get Alfred rolling. GM isn't alone. AT&T (T), another Icahnic company, is also in big trouble on Wall Street. It's getting beat up for not signing customers fast enough. The Street loves AT&T but it hates it now. It would be no surprise if AT&T sells out within the next year if it can't get its stock price up. The moral? Big names are treated on Wall Street these days, but only as long as they perform well. Stumbling corporate icons have to beware of the raider Icahns. I'm Allan Sloan.

Nightly Business Report transcripts are available on-line post-broadcast. The program is transcribed by FDCH. Updates may be posted at a later date.

The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT.

Information presented on Nightly Business Report is not and should not be considered as investment advice.

©2000 Community Television Foundation of South Florida, Inc.

09/07/2000: Paul Kangas' Wall Street Wrap Up

PAUL KANGAS: Well, if those earnings warnings from DuPont, Campbell Soup and May Department Stores weren't enough to get Wall Street's blue chip sector off to a lower start today, add to the list of companies forecasting earnings shortfalls: Circuit City Stores (CC). An early $4-drop in DuPont shares accounted for about half of the 44-point loss posted by the Dow Industrial Average at 10:00 a.m., but after yesterday's 130-point tumble, the NASDAQ Index rebounded 32 points on bargain hunting. With the tables turned the opposite of the way they were yesterday, the blue chips remained on the weak side for the rest of the morning; while buyers, in the belief the tech sector had been oversold, continued to bid it higher. At noontime, then, the Dow was still down nearly 36 points, but the NASDAQ Index up 75 points. Although the NASDAQ market edged still higher in afternoon trading, the blue chips remained in moderately lower ground, and the Dow Jones Industrial Average ended with a loss of 50.77 points at 11,259.87. In today's 101-point trading range, the Industrial Average closed down 64 points from the best level of the session, and up about 36 points from the low of the day. The NASDAQ Composite rebounded 85.01 points, ending at 4098.25. In its 93-point trading range, the Composite Index settled only 7 1/4 points below its very best level of the day, and up 85 points from the low of the session.

Big board volume down about 20 million shares from yesterday's pace. And down volume exceeded up volume by almost 20 million shares.

The Dow Transport Index fell 7.15.

Utility Index hitting yet another record high. Up 0.37 today.

The Closing Tick moderately bullish at +464.

Standard & Poor's 500 was up just about 10 1/4 points.

Exactly a 3 3/4-point rise in the 100.

The MidCap 400 was up 7.79

And the Bridge Futures Index fell 0.28.

New York Stock Exchange Composite up just over a point.

Almost a 2 1/4-point rise in the Value Line.

Russell2000 Small Cap up exactly 6 1/2 points.

And the broadly-based Wilshire 5000 up 110 2/3 points.

After the market closed, the Federal Reserve reported in the week ending August 28, the M-2 money supply rose $8.6 billion. It was a dull and down day for the bond market as prices fell for the third straight session, largely because oil prices rose again, and this time above $35 per barrel. On top of that, the market was weighed down by a heavy schedule of corporate debt, coming to market over the near future. Against this basically negative background, tax-free and corporate issues closed with 1/8s and 1/4s point losses on average, while the Treasury market was modestly lower across the board.

We see a 2/32 drop in the 5-year note.

The 10-year note is down 7/32.

And the 30-year bond down 2/32, with the yield at 5.72 percent.

And the Lehman Brothers Long-Term Treasury Bond Index was down 4.67.

A rather taxing day for Wall Street's blue chips. While the tech stocks came back nicely, the Dow down nearly 51 points. It was worse, of course, at one point. But the broader market was actually a bit higher, by a 15 to 13 margin, 138 new yearly highs, only 39 new lows.

Associates First Capital (AFS) topped the active list on 19.6 million shares, coming down $0.44. A little profit taking after rising nearly 11 points yesterday on Citigroup's stock buyout bid, which is worth right around $40 a share.

Citigroup itself dropped $0.03 yesterday, down another $0.38 today.

And DuPont (DD), of course, the major casualty in the Dow, off $5.19. That caused 29 of the Dow's 51 point loss.

Compaq Computer (CPQ) moved up $1.38 in the rebound in the high techs.

Nortel Networks (NT) down $0.38. That was fifth in volume.

AT&T (T) fell $0.69.

Pfizer (PFE) edging up $0.63.

And Nokia (NOK) gained a $0.50.

Boeing (BA) was up $1.56 despite an Alex Brown Brokerage downgraded from "buy" to "hold."

And Ford Motor (F) held steady at $26.00 a share.

ALLTEL (AT) rose $1.50. The company sees earnings in 19, let's make it 2001 and 2002 rising between 12 and 16 percent each year.

Great Atlantic & Pacific (GAP) down $1.19. That company sees second quarter earnings at a lower than expected $0.12 to $0.14 a share and also expects for the rest of the year results to be lower than expected.

J.P. Morgan (JPM) down $4.75. That hurt the Dow by 26 1/2 points. Of course, that's a little profit taking after yesterday's nearly 8 point gain on speculation that Deutsche Bank is taking a look at them as a takeover target.

National Semiconductor (NSM) up $2.63. First quarter operating earnings $0.76 a share, $0.11 above the Street estimate.

And then Telmex (TMX) rose $3.63 on news the company plans to spin off its cellular phone unit called America Movile (ph), one share of Movile for each share of Telmex owned will be the deal.

Union Carbide (UK) off $3.44, that, of course, in sympathy with the drop in Du Pont's (DD) shares.

Quiksilver (ZQK), this is a casual apparel maker and distributor, third quarter earnings $0.29, nicely up from $0.24 last year, in line with Street estimates and the company says its order backlog is quite strong.

And Delhaize America B (DZB) stock up $2.38. This is the company that owns Foodland and Cash & Carry Supermarkets and its parent, which is a Belgian company called Delhaze Group is offering to buy all of these shares for one third a share of Delhaze Group, the parent company. That deal is worth about $18 a share and the B and the A stock both got the same deal.

Energen (EGN) up $3.38. Bank America upgraded it from "buy" to "strong buy."

Volt Information Sciences (VOL) down $5.19. Third quarter earnings higher, $0.64 versus $0.51, but the company sees a flat fourth quarter.

Houghton Mifflin (HTN), the publisher, down $6.50. It's going to invest $8.8 million, most of it in cash in Classwell Learning Group (ph). It's a money losing situation, an online educational company. Houghton's share of the losses for this year will be about $0.08 to $0.10 a share and $0.25 to $0.28 next year.

True North Communications (TNO) went the other way today. DaimlerChrysler (DCX), its largest client, may consolidate its advertising accounts and that might cause a loss of business to True North.

NASDAQ trading, an 85 point gain in the Index, volume down a little bit from yesterday, 22 stocks higher for every 17 lower.

Microsoft (MSFT) topped the active list, up $0.63.

Sun Micro (SUNW) doing well, up $6.31.

Intel (INTC) gained $1.73.

Cisco Systems (CSCO) a $2 rise.

Yahoo! (YHOO) moved $5.13 lower after Lehman mentioned a rather cautious stack on the stock-a cautious stance on the stock.

Juniper Netwo