SUSIE GHARIB: On Wall Street today, a blue-ribbon rally for the blue chips, a day ahead of the elections. The Dow gained almost 160 points, and traded above the 11,000 mark for the first time since September. But the NASDAQ fell 35. Well, things don't look so bright for tech stocks tomorrow, now that Cisco Systems is out with its much-anticipated earnings report. After the bell, the high-tech bellwether said that it earned 18 cents a share in its fiscal first quarter, a penny better than estimates. That might not be strong enough to boost the tech sector, even though Cisco's sales were explosive, up 66 percent. Cisco's stock was down slightly in after-hours trading from its regular session close of $55.13. Cisco is one of the last big-name firms to come out with its quarterly earnings. Now that almost all of corporate America has reported, Erika Miller tallies up numbers.

ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: Despite high-profile profit warnings for this and future earnings seasons, corporate America reported a blockbuster third quarter. Of the 90 percent of the S&P 500 that have reported so far, the results are running, on average, 19 percent above last year. And they're beating Wall Street estimates by an average of 3 percent, the historic norm. Most retailers have not yet reported, but experts say they probably won't have much of an impact on the numbers. Two sectors stole the show.

CHUCK HILL, DIR. OF RESEARCH, FIRST CALL: Technology, at least through the third quarter, had continued to perform outstandingly. And, you know, they're the biggest sector in the S&P, so that had a huge impact. And then, the energy sector, with the higher prices, obviously, is coming in with terrific earnings.

MILLER: profits. Giants like Eastman Kodak (NYSE:EK), Lucent (NYSE:LU), Compaq (NYSE:CPQ), Apple (NASDAQ:AAPL), AT&T (NYSE:T) and Motorola (NYSE:MOT) have already guided estimates lower, and analysts have been trimming their forecasts at a much faster rate than usual, especially for technology companies. Profits are expected to be up just 12 percent in the fourth quarter, and 11 percent in the first quarter of next year. But some experts say both sets of results could dip into single digits. Slowing economic growth is one culprit, as well as higher energy costs. Companies also blame the weak euro for making American products more expensive abroad. The big question on investors' minds: Is the earnings slowdown already factored into stock prices? Yes, says strategist, Chris Callies.

CHRISTINE CALLIES, CHIEF INVESTMENT STRATEGIST, MERRILL LYNCH: So rather than over-promise, and disappoint, again, early in the year, it's been typical, I think, for a lot of the spokesmen, a lot of observers on the market to talk more cautiously than we later find out was necessarily required.

MILLER: But others argue the market is not fully braced for an earnings slowdown. They say factors like higher oil prices and the weak euro could get worse. That could spell trouble for earnings, and ultimately stock prices. Erika Miller, NIGHTLY BUSINESS REPORT, New York.

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.

PAUL KANGAS: After tomorrow, one of those two men will be getting a long and well earned vacation. The other will be making plans to move into the White House. As the road to the white house comes to an end, it's easy to overlook areas where both candidates agree. As Darren Gersh reports from Delaware, one of them is education and the role charter schools should play.

DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: At the Charter School of Wilmington, the focus is on science and math. This was a failing public school until six CEOs, prodded by the governor, put together $600,000 and reopened it as a charter school four years ago. Now many educators and politicians consider schools like this part of the formula for fixing public education. School President Ron Russo says this is still a public school, but with one major difference.

RON RUSSO, PRESIDENT, CHARTER SCHOOL OF WILMINGTON: The single most important thing would be autonomy. We're talking about real site based management. It seems to me that the people who are in the building, who deal with the parents directly, deal with the students everyday, these are the people who have the best knowledge of what will work and what won't work.

GERSH: The charter for this school, essentially the school's business plan, was approved by the local school board. But unlike a traditional public school, the Charter School of Wilmington is free from most state and local school district rules. All it must do is meet standards of student performance. So when the ninth grade science curriculum wasn't working after the second year, students called it too easy, the teachers met and simply changed it. That flexibility helps explain why the Charter School of Wilmington has been the top scoring school in the state in math and reading for the last three years. Local School Board President Bill Manning says he's now convinced charter schools work.

BILL MANNING, PRESIDENT, RED CLAY CONSOLIDATED SCHOOL BOARD: Charter schools can be many different things and if what we need in American education is competition and variety and choice, then charter schools provide all of that.

GERSH: When it comes to charter schools, both George W. Bush and Al Gore agree. Both candidates want to dramatically increase the number of schools like this one. But first there is this challenge, finding space.

MANNING: The public has built all these school buildings, but the public school system won't let go of them. And so if you realistically want to have a place for a charter school, you're almost going to have to build it yourself and that is a very tall order.

GERSH: Paul Fine helped push through legislation establishing charter schools when he was president of the state board of education. But he cautions that charter schools are not a panacea.

PAUL FINE, FORMER PRESIDENT, DELAWARE STATE BOARD OF EDUCATION: I think the jury is still out on the long-term viability of charter schools. It is a reasonable option that is available to a very small number of children in our state.

GERSH: Critics fear charter schools take money away from traditional public schools, leaving them without the resources they need. But Russo says the public school system should learn from the emerging competition.

RUSSO: If what I'm doing is attracting this student and you want this student, well, then I would turn to you and say, what should you be doing to attract that student?

GERSH: That's a message both candidates hope will also appeal to voters. Darren Gersh, NIGHTLY BUSINESS REPORT, Wilmington, Delaware.

GHARIB: More legal wrangling today in a landmark Florida tobacco trial. A Florida circuit judge upheld the $145 billion verdict in the Engle case. That's the class action representing thousands of sick smokers. Philip Morris (NYSE:MO) now says it will post the required $100 million bond and begin its appeal. Meanwhile, the European Union is fuming over alleged cigarette smuggling. Today it launched a civil suit against Philip Morris and R.J. Reynolds Tobacco (NYSE:RJR), accusing the companies of flooding the 15 nation Union with illegal smokes.

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.

PAUL KANGAS: The Federal Reserve's Open Market Committee meets next week and of course against the backdrop of tomorrow's presidential election, there is a lot of speculation about how a new presidency would impact the Fed. Joining me now to talk about that is Ed Kean, Chief Washington Financial Correspondent for BridgeNews. And Ed, welcome.

ED KEAN, CHIEF FINANCIAL CORRESPONDENT, BRIDGENEWS: Hi. KANGAS: How will the election outcome impact Federal Reserve policy in the next few months? KEAN: Well, for the near future there probably isn't going to be a great deal of impact on the Fed from the election outcome. Most economists think the Fed is likely to keep interest rates unchanged in coming months. It is going to take a fair bit of time for the new president and the next Congress to push through any fiscal stimulus program that does look likely. The effects of that fiscal stimulus probably won't take effect right away. They probably won't kick in until 2002 at the earliest. And so for the he near term, the Fed, I think, is going to be focusing monetary policy on the basic economic situation, which does suggest that growth has slowed somewhat and that inflation is still relatively subdued.

KANGAS: The next president will have a chance to put his stamp on the Fed because there will be at least two immediate vacancies and then two more terms expiring. What does that portend for the makeup of the panel?

KEAN: Well, for the near term it probably doesn't imply a dramatic change in monetary policy. But further down the road, it is probably going to create some uncertainty in the financial markets about the direction of Fed policy. But even so, history suggests that the next president, while he may try to put a stamp on the Fed, may not be able to alter the direction of monetary policy. History suggests that once Federal Reserve officials get on to the board, that they put political pressure second and they'll concentrate on the economy first. George Bush was thought to be sympathetic to Alan Greenspan but he and Greenspan didn't exactly have a totally harmonious relations during his tenure.

KANGAS: All right, interesting. We appreciate your sharing your thoughts with us, Ed.

KEAN: Thank you.

KANGAS: My guest, Ed Kean, Chief Washington Financial Correspondent for BridgeNews.

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.



11/06/2000: Writing Your Way Into Independent Business

SUSIE GHARIB: If you've always wanted to own a small, prestigious business, this could be your chance. A boat building company in Massachusetts is up for grabs to the winner of an essay contest that runs until the end of the month. Mont Fennel explains.

MONT FENNEL, NIGHTLY BUSINESS REPORT CORRESPONDENT: Former Olympic rower Gary Piantedosi keeps in shape with a Saroca.

GARY PIANTEDOSI, FORMER OLYMPIC ROWER: There's no limit to where you can go with it.

FENNEL: It's fast yet stable. It can be converted from a rowboat to a canoe to a sailboat.

PIANTEDOSI: It's hardly worth the effort to get a boat down to the water for a half an hour workout. With this boat, I can combine it into a fishing trip or a, you know, a little picnic trip, island hopping.

FENNEL: The name Saroca was formed by combining the first two letters of sailboat with the first two letters of rowboat and canoe. But now after 18 years, founder Jan Dorfman is selling the company to the person who in 250 words or less can convince three judges why he or she should own Saroca Incorporated.

JAN DORFMAN, FOUNDER, SAROCA: The judges are looking for an essay that embodies enthusiasm, excitement to why the winning entrant wants to change their life.

FENNEL: It costs $100 to enter the contest. The prize? Well, the company is worth about $400,000 for its trademarks and design patents, tools and production molds. There is no factory. Work is outsourced to various manufacturers. The winner will also receive eight Saroca boats, each worth $4,000.

DORFMAN: This gives people that wonderful unexpected option of rowing into something new.

FENNEL: So far, over 3,500 people have bought Sarocas. At it's peak in the early '90s, the company made 600 boats per year and Dorfman claims that the potential market is huge, from scuba divers to duck hunters to families looking for a versatile safe craft. But the essay competition will be stiff. Dorfman expects over 4,000 people to enter. Still, Olympian Piantedosi says go for it.

PIANTEDOSI: It will be an adventure. Owning your own business is an adventure anyway, but this sort of a product, this sort of a clientele, it's fun.

FENNEL: Mont Fennel, NIGHTLY BUSINESS REPORT, Gloucester, Massachusetts.

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.



11/06/2000: Paul Kangas' Wall Street Wrap Up

PAUL KANGAS: Even though Cisco's earnings weren't to come out until after the market closed, some mild optimism about them helped the stock remain firm in early trading, and that helped the NASDAQ Index post a modest 17-point gain at 10:30 a.m. But the pre-election jitters steered many money managers into some of the old stalwart blue chips, boosting the Dow Industrial Average to a 67-point gain an hour into the session. The perception that a Bush victory would be good for old-line Dow stock companies, like Caterpillar (NYSE:CAT), Merck (NYSE:MRK) and United Technologies (NYSE:UTX), coupled with Bush's slight edge in the latest polls, attracted more money into that sector of the market throughout the rest of the morning, while the tech-laden NASDAQ stocks languished. At 12:30 p.m., then, the Dow posted a 157-point gain, only 25 points below the 11,000 level, and the NASDAQ was down 8 ½ points. The blue chips held their gains, but did little else in afternoon trading, while the NASDAQ market faded. The Dow Industrial Average posted a closing gain of 159.26 points, or 1.5 percent, putting it at 10,977.21. In today's 196 ½-point trading range, the Industrial Average closed down 29 points from the best level of the session; up 167 ¼ points from the low of the day. The NASDAQ Composite fell 35.37 ending at 3416.21. In its narrow 67-point trading range, the NASDAQ Composite Index settled 64 points below its best level of the day.

Big board volume down from Friday in the slowest we've seen in a while, 924 1/4 million shares. Up volume exceeded down volume by about a 4 to 3 margin.

The Dow Transport Index up nearly 31 1/2 points.

Utilities up exactly 2 1/4 points.

And the Closing Tick modestly bullish at +450.

Standard & Poor's 500 up exactly 5 1/2 points.

A 3 3/4 point rise in the 100.

The MidCap 400 edged up .85.

And the Bridge Futures Price Index gained .39.

Just over a 4-point rise in the New York Exchange Composite.

The Value Line down .43.

And the Russell2000 Small Cap off over 3 3/4 points.

The Wilshire 5000 however, up just about 21 3/4 points.

Investors did not seek refuge in the bond market to assuage their pre-election nervousness today, partly because the fiscal proposals of both candidates leave little room for future reductions of government debt. Then, of course, there is the uncertainty about how the Federal Reserve will be affected by any new administration, and we'll have more on that a bit later in the program.

As a result, tax-free and corporates ended with 1/8 and 1/4 point losses, while the Treasury market closed moderately lower across the board.

The 5-year notes dropping 5/32.

Bellwether 10-year note down 7/32, with the yield up to 5.86 percent.

30-year bond dropped 11/32.

And the Lehman Brothers Long-Term Treasury Bond Index was off 4.81.

It was blue chip heaven, up 159.26 on the Dow, and it was flirting with 11,000 for part of the day. The broader market just barely higher, only 37 more stocks closing with gains than losses. But 91 new highs for the year and only 30 new lows.

Sprint Corp PCS Group (NYSE:PCS) topped the active list on 17 1/2 million shares, down another $1.56. It lost over $8 last Friday on concerns about slowing sales growth. And today Lehman Brothers increased its loss estimate for 2000 from $1.92 to $1.95 in the red.

AT & T (NYSE:T) lost $0.50.

And there you see Philip Morris (NYSE:MO) dropping $0.13 a share.

Lucent Technologies (NYSE:LU) moved up $0.25.

Nortel Networks (NYSE:NT) a loss of $1.38, fifth in volume.

Pfizer (NYSE:PFE) up $0.88. The drugs were firm today.

Global Crossing (AMEX:GX), first day of trading on the big board today. GX is the symbol on Global Crossing.

And then General Electric (NYSE:GE) up $1.19, one of those blue chips doing well.

America Online (NYSE:AOL) gained $2.32. The company and Time Warner (NYSE:TWX) could be forced to open their high speed cable lines to Internet rivals in cities served by Time Warner. That could be part of an anti-trust settlement.

And then Corning (NYSE:GLW), 10th in volume, was down $2.63.

British Airways (NYSE:BAB), a good day, up $4.38. The company's second quarter profits more than doubled on a 5.8 percent increase in revenues.

General Motors (NYSE:GM), one of the stars in the Dow today, up $3.94.

And Merck (NYSE:MRK) in that strong drug group up $2.13.

Omnicom Group (NYSE:OMC) was up a $1.31. Big advertising company's BBDO unit has received Chrysler's (NYSE:DAJ) advertising account and took it away from True North Communications (NYSE:TNO).

Now True North at one point this morning was as low as $34, then rallied. But the company says the loss of the Chrysler account will hurt its 2001 earnings by $0.15 to $0.22 a share. First Boston downgraded it and Merrill Lynch cut earnings on True North, but the stock snapped right back. United Technologies (NYSE:UTX) doing well, up $2.69.

Continental Airlines A (NYSE:CAL) up $11.81. Now, in an attempt to settle the government's anti-trust case against them, Continental and

Northwest (NYSE:NWB) have come to an agreement. Continental is going to repurchase 6.7 million of these Class A shares of it for $450 million. Well, that works out to just about $67 a share. So the stock moved right toward that price.

Lasmo (NYSE:LSO), an oil and gas exploration company, up $1.25. It's going to be acquired by Amerada Hess (NYSE:AHC) in a $3.5 billion deal, a complicated deal. Amerada's stock was down $2.44.

Enzo Biochem (NYSE:ENZ) up $5.06. UBS Warburg Brokerage upgraded the stock from "buy" to a "strong buy."

And Doncasters (NYSE:DCS) doing well, up $2.38. This is a manufacturer of precision metal products and it's hired C.S. First Boston to explore its strategic alternatives, including the possible sale of the company.

Too (NYSE:TOO), the apparel retailer spun off from Limited (NYSE:LTD) about a year ago, down $3.44. A.G. Edwards downgraded the stock from "accumulate" to just a "hold."

And Florida Rock Industries (NYSE:FRK) tumbling $4.75 after the company said its fourth quarter earnings would only be $0.57 to $0.60 a share. That's down from $0.67 a year ago.

NASDAQ trading, very slow, and 35.37 to the negative on the Index. Volume just 1.6 billion shares, well down from the recent average, I believe. 1775 up, 2109 down.

Cisco (NASDAQ:CSCO) topped the active list, down $1.63. And in after hours trading it was just above $52 a share despite that $0.18 first quarter, a penny better than expectations.

Microsoft (NASDAQ:MSFT) up $1.25.

Oracle (NASDAQ:ORCL) was down $2.38.

But Juniper (NASDAQ:JNPR) gained $2.69.

JDS Uniphase (NASDAQ:JDSU) a loss of $3.81.

Then CIENA (NASDAQ:CIEN), down $9.31.

A $2.38 loss for Sun Microsystems (NASDAQ:SUNW).

WorldCom (NASDAQ:WCOM) edged up $0.06.

A