SUSIE GHARIB: Internet stocks got another jolt of bad news today, this time from Priceline.com. The stock plunged almost 40 percent, down $3.56 to $5.81. Just seven months ago, it was trading at $100. The online retailer said that two of its licensees are shutting down, including the WebHouse Club which sells gas and groceries. The news comes just about a week after Priceline warned that its revenues would come in lower-than-expected in the third quarter. Analysts say that even though WebHouse is a separate business, the news is still bad for Priceline.

MICHAEL LEGG, SR. V.P., EQUITIES RESEARCH, JEFFERIES & CO.: I think importantly when you look at WebHouse, it did generate a lot of traffic to the Priceline site. And that traffic could be cross-leveraged over other platforms, and one of the key metrics we look at on Priceline is repeat customer usage and new customers, so that we can see the potential in the business. And obviously losing approximately a-third of that business, which was attributed to WebHouse, according to the Nielsen/NetRatings, will not be a positive for the traffic.

GHARIB: Well, Priceline.com says it will take a non-cash charge of $189 million for the third quarter, due to a loss of royalties from WebHouse. Paul?

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.


10/05/2000: BellSouth + SBC=Cingular

PAUL KANGAS: Meanwhile, another joint venture, this one between BellSouth (BLS) and SBC (SBC) is getting off the ground, and getting a new name: Cingular. The two communications' companies are hooking up their wireless operations. The new firm already has 19 million customers, and $12 billion in revenue. And it's the second largest wireless company in the United States, after Verizon (VZ). Stephanie Woods spoke with chief executive officer, Stephen Carter, and began by asking: how the new venture chose Cingular, with a "C", as its name.

STEPHEN CARTER, PRESIDENT & CEO, CINGULAR WIRELESS: Well, I think "singular" does describe what we want to do. It stands, I think, for many aspects of the brand positioning that we're trying to portray. We're trying to simplify the wireless business with a, a single approach. We're looking at the individual customer, in the singular. And I think we're looking at the unity of our joint venture as a singular opportunity. And, so we believe that by using the word "singular" and twisting the "s" into a "C," I think we've got a name that really speaks to our position.

STEPHANIE WOODS, NIGHTLY BUSINESS REPORT CORRESPONDENT: You're going to be up against competitors with familiar names, AT&T (T) and Sprint PCS (PCS) among them, that already have a nationwide footprint. What will you bring to this market, that the others don't?

CARTER: Well, of course, we're not a newcomer to the market. We started out with 19 million customers. We have a revenue stream of about $12 billion. And, in most markets, we're number one or two with our existing brands. I think with the "Cingular" brand, we bring to the table a national brand, a new array of services; I think the size, the scale and the scope will help us to compete even more effectively.

WOODS: Today, we saw Nextel (NXTL) miss its subscriber growth targets. Is that a sign the wireless industry is slowing?

CARTER: Yeah. I can't really comment on a competitor's position; but I can tell you, from our point of view, we only see growth in the industry. The data services side of the industry is going to grow tremendously with the onset of more applications and services coming out through the wireless net. And so, I believe we're looking at a very strong consumer market for years to come.

WOODS: There is a lot of hype around the combination of cell phones and the Internet. Maybe people won't want to pay extra for that. What's that going to do to your growth plans?

CARTER: Well, I think some of the early entrants to that marketplace perhaps over-promised, and people were used to the Internet, with a color screen PC. And when they started to use a phone with eight lines of black and white text, they were disappointed. I think as we launch our applications, you'll see services that are extremely useful, and actually add to the value of the Internet. They'll be used in mobile situations. People will find them to be an extremely good adjunct - not a substitute - to the Internet use they already have.

WOODS: New York City is an important market. You really don't have a presence there. What's your plan?

CARTER: Well, we cover most of the surrounding area of New York; we just missed the city, itself. We've got some great roaming partners there, so we're not disadvantaged with our existing customers. But we would like to fill the hole and there are a lot of options open to us: from alliances and partnerships to the auctions that are coming up. And we're keeping our options open and looking at all the alternatives.

WOODS: Stephen Carter, thank you.

CARTER: 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.

10/05/2000: "The Road To The White House"-Election 2000 & Your Money

SUSIE GHARIB: The presidential campaign debates take center stage this month. Tonight, the vice presidential candidates face off in Kentucky. Many investors are watching the back and forth, debating which candidates will be best for their portfolio. Well, tonight as we continue our coverage of: The Road to the White House, Darren Gersh reports on the investments that might do best once the new president is elected.

DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: For investors, what the election means for you may depend on whether your money is in stocks or bonds. Bond yields have been rising over the last six weeks as investors have come to realize that both major candidates plan to spend a lot of money.

PAUL MCCULLEY, PORTFOLIO MANAGER, PIMCO: In the bond market, that is an important political sea change, that you have Washington thinking in terms of how can we prudently lighten up a little bit on the austerity, as opposed to a competition in who can be the most austere.

GERSH: Overall, McCulley says Vice President Al Gore's policy of paying down debt is more friendly to bonds. McCulley says the market sees governor George W. Bush as more likely to use up the budget surplus on tax cuts, which could stimulate the economy and force the Fed to raise interest rates. But when it comes to stocks, political analyst Greg Valliere says Bush may be better for sectors like tobacco, energy and especially pharmaceuticals.

GREY VALLIERE, MANAGING DIR., SCHWAB WASHINGTON RESEARCH: Because of the rhetoric from Gore hinting that he might look at price controls, I think a Gore victory would really worry that sector. If it looks around Halloween as if Bush is going to win, I think drug stocks could rally.

GERSH: But a Gore win could boost stocks in some sectors such as generic drug makers, pharmacy benefit managers and alternative energy companies such as fuel cell manufacturers. Governor Bush is thought to be a better bet for defense stocks, utilities and HMOs. But analysts say the real investment impact won't be known until the next president gets down to business.

KIM WALLACE, POLITICAL ANALYST, LEHMAN BROTHERS: I believe that we'll have to wait until we see real legislative and regulatory agendas from the next president before we can know whether or not he is going to be pro big business or anti big business.

GERSH: Political analysts warn it's always risky to make investments based solely on campaign promises, especially in a race as close as this one. 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.


10/05/2000: Prime Mover: Jim Barksdale, Partner, The Barksdale Group

SUSIE GHARIB: Jim Barksdale won over investors by turning Netscape into a powerhouse. Now more companies will benefit from his magic touch. He now runs a venture capital firm that targets the early or late stage rounds of financing for technology companies. He founded the Barksdale Group last year, along with two other venture capitalists. The private firm finances Internet media, e-commerce and wireless communications companies. It has invested over 50 percent of its total assets and has backed about 13 companies. In tonight's prime movers segment, Donald van de Mark of Myprimetime.com asks Barksdale how the firm decides to invest its money.

JIM BARKSDALE, PARTNER, THE BARKSDALE GROUP: Well, we still believe very much, and I think there's enormous evidence that supports the fact that infrastructure companies, companies that are building equipment for carriers, we're rewiring America and the world as we sit here, companies that are building the switching systems for those and the servers that support those, companies that are building the software that supports the infrastructure, be it wire line or wireless. We're big believers in the wireless sector. Three, four of the companies we have invested in are in wireless areas or semi wireless areas that are building infrastructure, software and products that support the use of wireless telephones, for instance, for transmission of data such as e-mail or Internet data. And so we think that those are some areas that are very, very interesting. So we're bullish about those kind of things. What we're not investing in are some of the less developed ideas around business to consumer.

DONALD VAN DE MARK, MYPRIMETIME.COM: And yet you have an investment in Homegrocer (HOMG).

BARKSDALE: This is a model that people are selling groceries to people at home. It's a marvelous service that customers love and the great thing about it is it produces a lot of revenue, revenue of about $100 an order, revenue that's real and around which you can build real businesses.

VAN DE MARK: Do you think a lot of companies simply came to the market too fast?

BARKSDALE: Sure. That when we were at Netscape-

VAN DE MARK: And you were the guys who kicked it all off?

BARKSDALE: Yeah, I feel responsible for that. We have seen one of our competitors, a small company, go public even though they were losing money and I was all along planning to wait another year. But when I saw that I said well maybe something has changed here. We went public and, you know, the rest is history.

VAN DE MARK: Do you think Microsoft (MSFT) should be broken up?

BARKSDALE: I think that that's the most efficient way to deal with the issue of Microsoft taking a monopoly position in one area and using it to strengthen or move in a monopoly in another area, which is what the Sherman anti-trust law is against.

VAN DE MARK: Would it hurt the shareholders or might it help them?

BARKSDALE: I can make an argument it helps the shareholders, much like it did with AT&T (T). The value of AT&T and all of its spun off companies today is enormously greater, somewhere 10 times greater than AT&T was when it was not broken up-by the way, the same day that the court settled with IBM (IBM) and didn't break IBM up. It's only doubled in those 16 years in market cap, where as AT&T and its children have grown almost tenfold. There's good statistical evidence this is not bad for shareholders.

VAN DE MARK: So what do you think is holding back the breakup? Is it ego or management control?

BARKSDALE: I think it's ego or pride. It's not an unusual motive to want to hold onto what you've built.

VAN DE MARK: Barksdale knows the entrepreneurial character well. He's worked closely with Fred Smith of FedEx (FDX), Craig McCaw of McCaw Cellular and Jim Clark of Netscape. Barksdale says those three are similar in ways famous and not so famous.

BARKSDALE: It's sort of strange, they're all three sort of mystical. They believe in mystical l things, to their credit. I mean they're just different, you know? Craig was-Fred was absolutely convinced that the lost city of Atlantis was there and he was going to find it. Well, Craig was two. The two of them are going to, I guess, some day run into each other and go find that thing. But it's just true entrepreneurs like those three men move in ways of thinking that are different. They jump. They're very intuitive.

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.



10/05/2000: Commentary: Wall Street's Calendar

SUSIE GHARIB: Tonight's commentator says that sometimes the calendar fools you when it comes to watching Wall Street. Here's Irving R. Levine, Dean of International Studies at Lynn University and former chief economics correspondent for NBC News.

IRVING R. LEVINE, COMMENTARY: The poet Thomas Sterns Elliott lamented that April is the cruelest month. Obviously he wasn't thinking of the stock market. For investors October has that unenviable reputation. Starting with October 28th, 1929, October has witnessed a number of crashes large and small. But October is not all bad. For the past 25 years, the Dow Industrials have more often been higher at the end of October than at the beginning of the month. And looking at the broader S&P 500, over the past 50 years, stocks have, on average, done better in October than in five other months of the year. December has the best 50 year record for stock market gains. Yet poets don't have a lot of nice things to say about December. Like John Greenleaf Whittier's mournful words, "the sun that brief December day rose cheerless over hills of gray and darkly circled gave at noon a sadder light than waiting moon." Poets aside, historians attribute the big market drops to such causes as inflated stock prices, energy cost increases, currency crises and election uncertainties. To which a poet might say, current woes are just like those. I am Irving R. Levine.

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.


10/05/2000: Paul Kangas' Wall Street Wrap Up

PAUL KANGAS: The stock market opened higher in an attempt to extend yesterday's gains, with the Dow Industrial Average adding some 55 points to yesterday's 64-point advance in early trading, while the NASDAQ Index gained 26 points on top of Wednesday's 67-point rise. The tech sector soon undermined the market as Dell's (DELL) stock was a drag, after yesterday's post-market earnings warning; and of course, the Priceline news didn't help. The semiconductor stocks also headed lower after Merrill Lynch said it sees a sloppy earnings season for them. However, Merrill gave some of the consumer goods issues, like Procter & Gamble (PG), Colgate (CL), Clorox (CLX) and Gillette (G) a boost by upgrading them. Even so, at noontime, the Dow was down 52 points; the NASDAQ Index posted a 50-point deficit. The market churned around in narrow ground at its midday level throughout the afternoon as several rally attempts failed. The Dow Industrial Average closed with a loss of 59.56 points putting it at 10,724.92. In today's 121-point trading range, the Industrial Average closed down 119 points from the best level of the session. The NASDAQ Composite fell 51 points, closing at 3472.10. In its 90-point trading range, the Composite settled 77 points below the best level of the day.

Big board volume moved up a bit, a-hundred and one point 181 billion shares. And a little bit more down volume than up volume.

The Dow Transport Index was up 8.30. Airlines still firm on lower oil prices.

The Utility Index however down 6.81.

And the Closing Tick just barely bearish at -85.

Standard & Poor's 500 gained nearly 2 points.

The 100 up nearly 2 1/2.

MidCap 400 down .92.

And the Bridge Futures Price Index fell .57.

A gain of nearly 2 3/4 in the New York Composite.

But the Value Line was down 2 1/3 points.

Russell2000 Small Cap fell 4.82.

And the Broadly-Based Wilshire 5000 down almost 30 points.

After the market closed, the Federal Reserve reported in the week ending September 25, the M-2 money supply fell $4.6 billion. The bond market overcame nervousness about tomorrow's September employment report with the help of nearly a $1 decline in New York November oil futures. And that came along with news that the latest weekly jobless claims rose by 10,000, suggesting a cooling economy. Some support also came from flight-to-quality, or safe-haven buying, prompted by the sell-off on stocks.

Tax-free and corporate issues edged up 1/8s and 1/4s.

While the Treasury market rose moderately across the board.

5-year notes up 4/32.

10-year notes up 9/32.

And the 30-year bond up 22/32, bringing the yield down to 5.90 percent.

The Lehman Brothers Long-Term Treasury Bond Index gained exactly 7 1/4 points

The market today acted like no one was going to win the election. It was a pretty nasty down day, not on the averages so much, but just a kind of malaise around the market. A 59 ½ point drop on the Dow. The broader market lower by a 15 to 12 margin. Sixty new highs for the year, 76 new lows.

Lucent Technologies (LU) topped the active list on 19.7 million shares, edging up 6.

But Micron Technology (MU) down $6 despite yesterday's post-market report of much better than expected fourth quarter earnings.

Today, however, Robertson Stephens Brokerage cut earnings estimates ahead and also lowered its price target for the stock from $118 all the way down to $85.

Then a new issue, TNPC (NPW). This is a power company formed by Enron (ENE) that went public today, $24 million shares offered at $21, opened at $28.50, a high of the day $28.69.

America Online (AOL) gained $2.39. The ING Barings Brokerage upgraded it from "buy" to "strong buy" partly on that Time Warner news. Incidentally, Time Warner's stock had a good day, up $5.24 to $91.24.

Compaq Computer (CPQ) losing $3.64, no doubt partially a negative reaction to the Dell earnings warning.

General Motors Hughes (GMH) dropped $2.

Nortel Networks (NT) moving up $3.38.

And Pitney Bowes (PBI), the postage meter company, down $10.13. The news here, the company sees third quarter earnings falling $0.02 to $0.03 per share short of the $0.65 per share estimate and Goldman Sachs downgraded the stock from "market outperform" to just a "market performer."

Citigroup gained $1.38.

And Texas Instruments (TXN) down $1.50, 10th in big board volume.

Abercrombie & Fitch (ANF) rising $3.19. The company says September same store sales were up two percent, or down two percent, I should say. But that actually was better than expected and Prudential upgraded the stock from "hold" to "accumulate."

Avon Products (AVP) was up $2.69. Merrill Lynch upgraded it from "accumulate" to "near term buy."

Genentech (DNA) rose, or fell $1.38, even though it announced a 2 for 1 stock split. Just one of those days.

Lexmark International (LXK) down $3.13. The company sees flat 2000 earnings coming in around $2.30 to $2.35. That would be the same as 1999.

Masco (MAS), the building products company, down $2.50. Masco sees third quarter earnings at $0.41 and fourth quarter and year 2001 earnings about 10 percent below the Street consensus.

And Procter & Gamble (PG), a Dow stock, rising $2.75 after Merrill Lynch upgraded it from "neutral" to "near term accumulate." Coach Incorporated (COA) went public today. This is the company that manufactures leather accessories like handbags and wallets. 7.4 million shares offered at $16, opened at $20. The high of the day $21.50.

And then Polo Ralph Lauren (RL) was up $2.88. The company sees second quarter earnings in line with Street expectations of $0.50 to $0.52 a share.

Armstrong Holdings (ACK) down $4.25.

And W.R. Grace (GRA) down $2.38, our two big percentage losers. Now, the news affecting them was Owens Corning (OWC), which declared Chapter 11 bankruptcy to cope with the asbestos litigation against it and these companies are involved in that litigation and it could have negative implications, that Owens Corning bankruptcy. But the companies aren't really sure yet.

ShopKo Stores (SKO) down $2.56. The company sees lower than expected third quarter earnings of only $0.02 to $0.07.

Hudson United Bancorp (HU) down $5.56. It sees lower than expected third quarter earnings of $0.50 to $0.52.

NASDAQ trading, exactly a 51 point loss in the index, 1 ½ percent on the down side. Volume trailed off a bit from yesterday to 1.8 billion shares. Fifteen stocks up for every 22 down.

Dell Computer (DELL) topped the active list, down $3, as it was in after hours trading yesterday.

Cisco (CSCO) lost $1.

Sun Microsystems (SUNW) fell $1.70.

QUALCOMM (QCOM) bucking the trend, up $4.44.

Microsoft (MSFT) fell $0.06, fifth in volume.

Intel (INTC) lost $1.

And Oracle (ORCL) edging up $0.19.

Juniper Networks (JNPR) down $10.02.

JDS Uniphase (JDSU) man