LINDA O'BRYON: We could be one step closer to declaring a winner in the presidential election. The U.S. Supreme Court today heard arguments from both the Bush and Gore attorneys regarding the Florida ballot recount. Hopes for an end to the election drama, combined with several bullish analysts' notes pushed stocks higher today. The NASDAQ revisited the 3000 level, soaring almost 100 points to close at 3014; while the Dow rose 12 points. NIGHTLY BUSINESS REPORT Washington bureau chief, Darren Gersh was at the High Court today. And he joins us now. Darren, what was the mood during the hearing?

DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: Well, Linda, the justices clearly were focused and passionate in their questioning. They know this is an historic moment, and that investors and the rest of the world are looking to them to write what may be the final chapter of the 2000 election. Outside the Court, the divisions were loud and clear. Inside, the justices, already sharply divided 5-4 on their decision to stay the Florida recount, gave no hint in today's arguments that any of them were ready to change their minds. Many of the justices, though, were clearly worried that manual recounts in different counties, using different standards, raised constitutional concerns about equal protection under the law. In questioning the vice president's lawyer, David Boies, Justice David Souter suggested the whole issue of varying standards might be sent back to a state court.

JUSTICE DAVID SOUTER: We have got to make the assumption I think at this stage, that there may be such variation, and I think we would have a responsibility to tell the Florida courts what to do about it; on that assumption, what would you tell them to do about it?

DAVID BOIES, GORE CAMPAIGN LAWYER: I think that's a very hard question.

SOUTER: You'd tell them to count every vote. You would tell them to count every vote, Mr. Boies.

BOIES: I would tell them to count every vote.

GERSH: But Justice Sandra Day O'Connor considered one of the court's potential swing votes, seemed to accept Governor Bush's argument that ballots with dimpled or hanging chads were not legal votes.

JUSTICE SANDRA DAY O'CONNOR: Why isn't the standard the one that voters are instructed to follow, for goodness sakes. I mean, it couldn't be clearer.

GERSH: Boies said, Florida law, going back almost 100 years, was clear on what was and was not a legal vote.

BOIES: The Florida Supreme Court has held that where a voter's intent can be discerned, even if they don't do what they're told, that's supposed to be counted.

GERSH: Even if they could agree on how to count votes, the court's other possible swing vote, Justice Anthony Kennedy pointed out, it may not be possible to do anything about it. If the Florida legislature set new standards now, that would violate a federal statute against changing the law, after the election.

JUSTICE ANTHONY KENNEDY: Neither can the Supreme Court without it being a new law, a new scheme, a new system for recounting at this late date. I'm very troubled about it.

GERSH: Markets, however, were clearly relieved that someone seemed to be ready to bring this never-ending election to a close. Although analysts caution the bitterness may linger.

GREG VALLIERE, ANALYST, SCHWAB WASHINGTON RESEARCH: My guess would be that the markets, like the entire country, would prefer to see the Supreme Court act with unanimity: 9-0 or at least 7-2. If it was 5-4, indicating that even the Supreme Court is politically divided, that might not be a very satisfying conclusion for anybody.

GERSH: Also today, a House and Senate Committee of the Florida legislature approved a slate of electors, loyal to George W. Bush. Linda?

O'BRYON: Well, Darren, just moments ago, the Florida Supreme Court said it relied on Florida law when it issued its original decision in the case. How important is that statement to the U.S. Supreme Court?

GERSH: Well, there were a number of questions regarding that issue during today's Supreme Court argument. But the justices have moved beyond that to the question of the recount. And a ruling could come tomorrow, or sooner. Linda?

O'BRYON: Thank you, Darren. Darren Gersh, reporting live from our Washington bureau.

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.

LINDA O'BRYON: If you have a cell phone or a car, it probably has a Littelfuse (LFUS) product inside. Littelfuse is the world's leading maker of fuses. It's a low tech company that is racking up huge profits from the high tech boom. Diane Eastabrook reports.

DIANE EASTABROOK, NIGHTLY BUSINESS REPORT CORRESPONDENT: This is not something you would want to sprinkle on your food. These are tiny fuses that go into cell phones to keep them from shorting out. Small fuses are big business for Littelfuse. The Des Plaines, Illinois company is expected to sell roughly $375 million worth of them this year. That is about a 25 percent increase over last year. The company says future sales appear robust, too.

HOWARD WITT, CHAIRMAN & CEO, LITTELFUSE: There are going to be 500 million cell phones sold globally next year. A metric that we use is doubling that to take into account palm pilots, computers and that sort of device. So if you think of a billion of those things being sold, that market will grow 25 percent to 30 percent per year.

EASTABROOK: Littelfuse began making fuses about 75 years ago for testing meters. A few years after that, it began making fuses for cars and later for television sets, computers and cell phones. It is now the largest fuse maker in the world. Demand for fuses is also expected to soar as technology becomes more sophisticated. For example, cell phones with Web access require more fuses than non-Web phones. Additional options on cars also require extra fuses.

WITT: All of the gadgets that you and I want-heated seats, sun roofs, cell phones, computer access-the fuse count in actually going up. So on a flat car build fuses would increase two to three percent.

EASTABROOK: Despite a solid balance sheet and strong earnings, investors have been shunning Littelfuse stock in the past few months because of troubles in the high tech and automotive industries. But some analysts say the fundamentals for the company are strong and Littelfuse is a good stock to own.

ALEXANDER PARIS, AUTO ANALYST, BARRINGTON RESEARCH ASSOCIATION: I like the company because it has good management, very good manufacturing and most importantly they have the dominant market share in something everybody needs, fuses.

EASTABROOK: Littelfuse plans to grow its business further by adding products that can enhance its current business. It recently acquired a product that protects against short circuits caused by static electricity. But the company says the real key to future success is anticipating changes in technology and adapting products to them. It says that philosophy has sustained Littelfuse for three quarters of a century and should continue to sustain it for years to come. Diane Eastabrook, NIGHTLY BUSINESS REPORT, Des Plaines, Illinois.

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.

12/11/00: The Bad News Bears In Japan

PAUL KANGAS: Tonight we continue our look forward to the year 2001. And joining me now is Mariko de Couto, Chief International Policy Correspondent for BridgeNews. And welcome back, Mariko.

MARIKO DE COUTO, INTERNATIONAL POLICY CORRESPONDENT, BRIDGENEWS: Hello.

KANGAS: How is the picture unfolding for Japan's economy in the coming year?

DE COUTO: It looks a little better, improved from last year hopefully, but the outlook is not as rosy as the markets or the government hopes it to be. I think the government will probably reach its target of 1.5 percent, but it may be a little short. So for the coming year, the recovery process is going to be really slow, gradual and maybe tentative a little bit. And so we've got to see from now how the economy unfolds for the entire year of 2001.

KANGAS: Well, one of the problems is the Japanese people are great savers rather than spenders. What can be done to get them to spend a little more and take some of their savings and put it to work to elevate the economy?

DE COUTO: Unfortunately, there is no quick fix for consumers to start spending. As you said, consumers do have a lot of money. What needs to be done is what the government has done, which is restructure the corporate sector as well as try to clean up bad banks, bad debt among the banks. Credit quality has been a problem. And those are the two long-term issues that have to be corrected to get consumers to spend a lot more.

KANGAS: Well, the yen has been relatively strong and that's been a bit of a problem, is it not?

DE COUTO: Yes, obviously it is because if you compare the yen and the dollar, it has been strong, and if you compare the two economies, the fundamentals are vastly different. The Japanese economy is coming out of a recession. The U.S. economy has been growing at a rapid pace. So that, there is an imbalance there, as well.

KANGAS: What about the Tokyo stock market? Do you think it's basically in a bullish or bearish trend from the people you talk to? What do they consider it?

DE COUTO: It's in a bearish trend, unfortunately. Stock prices are probably one of the top concerns right now among consumers. The NIKKEI has been following the declines in the Dow and the NASDAQ and that has been a problem, a major concern going forward.

KANGAS: OK. Very good. Mariko, thanks very much. We appreciate your thoughts.

DE COUTO: Thank you.

KANGAS: My guest, Mariko de Couto, Chief International Policy Correspondent, 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.


12/11/00: Tax Tips For 2001

LINDA O'BRYON: The end of the year is rapidly approaching and joining me now to discuss some last minute tips for saving on your next tax return is Kevin McCormally, Editorial Director of "Kiplinger's Personal Finance." Welcome back, Kevin.

KEVIN MCCORMALLY, EDITORIAL DIRECTOR, "KIPLINGER'S PERSONAL FINANCE": Hi, Linda.

O'BRYON: Kevin, I understand there are several measures you can take to save on next year's tax return. These must be completed by December 31st.

MCCORMALLY: That's right. That's when the door closes for 2000 tax changes, but that means you've still got some time to do things. And the first thing I think all investors should do is think of this as pay back time. For the last several years we paid millions and millions of dollars of taxes to the government on all of our great capital gains. Well, this year a lot of us have got capital losses and it's important that people scour their portfolio and look for those losers. Now, you never sell a stock just for tax benefits. But what you need to do is look at these securities and say do I have a good reason to hold on to this stock or mutual fund? And if you don't have a good reason, Uncle Sam has a really good reason for you to sell it by December 31st. You can take a tax loss.

O'BRYON: All right, what about charitable donations at this time of year?

MCCORMALLY: Well, when it comes to charitable donations, I often feel like a grinch because I like to say put away your checkbook. And it's not that I don't want people to help worthy causes. But investors have got a much more potent way to help good causes rather than give them cash and that's by giving appreciated securities. When you give a stock or mutual fund that you owned for more than one year, you get to deduct the full market value of that security and you never have to pay tax on the appreciation from the time you bought it until the time you sold it. It's the great way to give a doubling double duty donation, give appreciated securities rather than cash.

O'BRYON: And what's the cost basis then for the recipient?

MCCORMALLY: Well, the recipient in this case doesn't care because they're a charitable organization. They don't pay taxes either. They pay no taxes, so they get the full market value, you get to deduct the full market value. The only thing that happens is Uncle Sam doesn't get his cut of the profit.

O'BRYON: OK, what about giving away appreciated stocks to others than charitable organizations?

MCCORMALLY: Right, well, this one isn't quite as good as giving to charity because you don't get a deduction, but I like to encourage people who are making substantial gifts to family members like a lot of people do this time of year, you know, you can give $10,000 a year to any number of people without worrying about the federal gift tax and a lot of wealthy people do this to reduce their taxable estates. The reason they give appreciated securities rather than cash, is they give them because you give away a tax bill. If you give away appreciated securities, the recipient takes on your basis. It's a way for a family to cut the tax bill from 20 percent, which is the capital gains rate the parent probably pays, to 10 percent, which is the rate the child will pay when they sell the very same securities.

O'BRYON: Kevin, what about IRAs, individual retirement accounts?

MCCORMALLY: Well, what we talk about here is really for people who converted regular IRAs to Roth IRAs earlier this year and the account has lost value. You know, Linda, the cost of making this conversion is you have to pay tax on the full amount to switch from an old IRA to a Roth. Well, if you've lost some of that money and do nothing, you still have to report the full amount you converted next year when you pay your taxes. But there's a way around that tax bill, which is simply call the IRA sponsor and say let's forget about the whole thing. It's sort of like a recount or a do over. Let's ignore the whole thing-

O'BRYON: We've heard of those.

MCCORMALLY: -- and pretend that it didn't happen. And Congress says that's fine. So you don't have to pay the tax on money that's disappeared. And then come next year, you can convert that money back to a Roth IRA again and pay tax on a lower amount. And the great thing, Linda, is you wouldn't owe that tax until 2002 when you file next year's return.

O'BRYON: Thanks for all of the great year end tax information, Kevin. Of course, it's always a good idea to consult your tax or investment advisor before making any decisions. My guest, Kevin McCormally, Editor of "Kiplinger's Corporate Finance."

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.


12/11/2000: Paul Kangas' Wall Street Wrap Up

PAUL KANGAS: The stock market opened on a mixed note, with profit takers causing the Dow Industrial Average at 10:00 a.m. to give back 35 points of last Friday's 95-point closing gain; but the NASDAQ Index, with a 25-point gain, followed through on its 164-point run-up last Friday. Although the suspense over what the U.S. Supreme Court might decide regarding the presidential stalemate was a drag on the market, it managed to improve modestly nevertheless, during the rest of the morning because some investors were still positive on the prospects for lower interest rates, while several analysts noted that the average Standard & Poor's 500 Index price-earnings multiple has now fallen to a four-year low.By noontime then, the Dow worked its way to a 48 1/2 point gain, and the NASDAQ Index was up 94 points. The blue chips went into a slow fade in afternoon trading, while the high-tech NASDAQ market held, and even added to its advance. The Dow Jones Industrial Average salvaged a closing gain of only 12.89 at 10,725.80. In today's 122-point trading gain, the Dow closed down 66 points from the best level of the session. The NASDAQ Composite recaptured that 3000 level, with its gain of 97.67 ending at 3015.10. In its 128-point trading range, the Composite settled about 14 points below its best level of the day, and up 14 points from the low of the session.

Big board volume down to 1.21 billion shares, well below Friday's pace. And about a 7 to 4 ratio of up volume over down volume.

The Dow Transport Index had a good day, up 58 1/2 points or nearly so.

Utility Index up .59.

And the Closing Tick modestly bullish at +462.

Standard & Poor's 500 up 10 1/3.

Almost a 7-point run-up in the 100.

MidCap 400 gained almost seven points as well.

Bridge Futures Price Index up 1 3/4 points.

New York Stock Exchange Composite gained 2.16.

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

Russell2000 Small Cap Index up 8.16.

And the broadly-based Wilshire 5000 up 145 1/10 points.

The bond market came under some selling pressure today, after its recent surge on hopes for an easier monetary policy by the Federal Reserve. The relatively solid upturn in the stock market also deprived bonds of any of that flight-to-safety support. Another negative was over a $1 per barrel rise in New York January oil futures to $29 1/2. As a result, tax-free and corporate issues ended with losses averaging 1/4 to 3/8 of a point.

And the Treasury market closed modestly lower across the board.

5-year notes dropping 3/32.

The 10-year notes down 14/32, bringing the yield up to 5.37 percent.

And the 30-year bond down just 1/32.

The Lehman Brothers Long-Term Treasury Bond Index lost just over 1/4 of a point.

Well, the NASDAQ market outperformed the blue chips today, reversing what happened several days last week. The Dow up just about 13 points, but the broader market nicely higher, with nearly 17 stocks on the up side for every 12 down side. And look at this, 247 new yearly highs and only 58 new lows. That was impressive.

Lucent Technologies (LU) had a decent day on 22 1/2 million shares, rising $1.25. The company's Agere systems unit has filed with the SEC for its initial public offering.

Nortel Networks (NT) was up $0.06.

Motorola (MOT) making a good comeback. The semiconductor stocks were very strong today, up $2.44 there.

MetLife (MET) down $1.25 after recent gains. Today, Salomon Smith Barney downgraded Met from "outperform" to "neutral" and Merrill Lynch downgraded it from "accumulate" to "near-term neutral."

General Electric (GE) edged up $0.13, fifth in big board volume.

Pfizer (PFE) up $0.13. The company sees annual earnings growth of 25 percent or better through the year 2002.

Citigroup in a strong financial group up $1.38.

And AT & T (T) edged up $0.44.

McDonald's (MCD) gained $0.94. McDonald's says its November total sales for the system were up 10 percent and it sees 10 percent growth for the full year.

Stryker (SYK), the medical devices company, down $0.26. It was added to the Standard & Poor's 500 Index after the close today but it recently already had a big rise in anticipation.

Boeing (BA) was down $1.56 even though the company's board approved the buy back of an additional 85 million shares, or 10 percent of the float, and Boeing is also boosting its quarterly dividend from $0.14 to $0.17 a share. That's a 21 percent increase.

Hershey Foods (HSY) down $2.75. The company made some major management changes and Merrill Lynch downgraded it from "buy" to just "neutral."

J.P. Morgan (JPM) up $9.50 a share and after the close, the Federal Reserve approved its acquisition by Chase Manhattan Bank (CMB).

Kinder Morgan (KMI), the natural gas pipeline company, up $1.94. It'll be added to the Standard & Poor's 500 on a date to be announced, replacing Nabisco Group Holdings (NGH).

And Philip Morris (MO) down $0.63. The company did today complete its $55 a share acquisition of Nabisco Holdings Corporation (NA).

Finally, Wal*Mart (WMT) down $3.06. First Boston made cautious comments and Wal*Mart itself noted that its latest weekly sales were below the company's projections.

MEMC Electronic Materials (WFR), this is another semiconductor maker and as I mentioned, those stocks were very strong today, bottom fishing in this case. This stock was as high as $23.75 back in March.

Global Crossing Limited (GX) up $2.94. The company's policy is not to comment on stock activity, but it also could be a case of bottom fishing. That stock in February was $61.

Dave & Buster's (DAB) up another $1.25 after gaining $2.38 on Friday on sharply higher third quarter earnings, $0.12 versus $0.02.

And Autoliv (ALV) down $3.13. The auto parts maker is predicting 2000 earnings at $1.65 to $1.75 a share. The Street was expecting $1.95.

Edison International (EIX) down $1.81. Morgan Stanley downgraded it from "outperform" to "neutral."

Also, California over the weekend had some major power problems at the point of a stage two emergency and Sempra Energy (SRE), which is the owner of San Diego Gas & Electric, I think it was involved in that, so some weak utilities.

NASDAQ trading, a gain of 97.67 on the Composite. Trading volume up a bit from last Friday, about 23 stocks higher for every 16 lower.

Sun Microsystems (SUNW) topped the active list, down $4.94. After the close, the company denied market rumors that it was having accounting irregularities, denied that. And the stock was trading at $36, incidentally, after hours.

Cisco Systems (CSCO) up $2.44.

QLogic (QLGC) gained $1.25.

Microsoft (MSFT) rising $3.63.

Intel (INTC) up $3.44. The company said it has now built the smallest and fastest transistor to date. It can finish two million calculations in the time it takes a speeding bullet to go one-inch.

Vitesse Semiconductor (