SUSIE GHARIB: It's still no decision on Decision 2000. America is still waiting to hear from the Supreme Court on the next move on the presidential election. Wall Street, like the whole country, was on pins and needles to find out whether the High Court decided if the so-called "undervotes" should be counted manually. No answer came during market hours. The Dow notched up only 42 points, and the NASDAQ lost 83. Now, if the Supreme Court makes a ruling tonight, it will certainly influence the tone of trading tomorrow. Well, in other business news. It looks like it won't be your kids' Oldsmobile either. GM is scrapping the "Olds." As Diane Eastabrook reports, the phase-out of the once-popular brand is part of a major overhaul at GM.

DIANE EASTABROOK, NIGHTLY BUSINESS REPORT CORRESPONDENT: GM officials unveiled their planned overhaul today in Detroit. The restructuring includes phasing out the Oldsmobile brand over the next few years, revamping manufacturing in Europe, and cutting 10 percent of GM's salaried workforce in Europe and North America - that's about 6500 jobs. CEO, Rick Wagoner says the decision to pull the plug on Oldsmobile was especially agonizing.

RICHARD WAGONER, PRES. & CEO, GENERAL MOTORS: Our teams worked very hard to try to find profitable ways to further strengthen the Oldsmobile product line, including consideration of products, developed with our global alliance partners. But in the current environment, we simply couldn't find an approach that would ensure Oldsmobile's future success.

EASTABROOK: Oldsmobile has been around for more than 100 years. In the mid-1970s, the brand was selling more than one million vehicles a year; but by the mid- '80s, sales began sliding. In recent years, GM says new products like the Bravada sport utility vehicle were attracting buyers, but not enough of them. GM plans to work with its nearly 3,000 Olds' dealers to phase out the brand. That process is expected to take up to three years. The automaker says the time and money saved on Oldsmobile will be spent developing existing brands.

RONALD ZARELLA, PRES., GM NORTH AMERICA: The use of those product development resources should allow us to shorten some life cycles, as well as provide more innovation and differentiation for the remaining brands in our product portfolio.

EASTABROOK: GM says the entire restructuring will lead to a special pre-tax charge of 1.5- to $2.5 billion for the fourth quarter, and will lower earnings as well. But despite that, analysts applaud the plan.

WENDY BEALE NEEDHAM, AUTO ANALYST, CS FIRST BOSTON: Rick is a very aggressive person. It's taken a bit during his tenure to get this going, but I think we'll see more of this. I don't think he's going to be patient to see businesses that aren't earning a return, stay in the GM fold. So I'm looking for more here. I'm looking for more overseas.

EASTABROOK: Wagoner admits at least one other GM division isn't performing well, but he would not identify the brand, or if the company has plans to axe it, as well. 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.

SUSIE GHARIB: Natural gas prices plunged today closing down $1.27 to the $8.00 level. That's a sharp reversal from yesterday when prices hit a historic high. But it's not much consolation to consumers who have watched prices triple this year. Erika Miller reports on what's heating up natural gas prices.

ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: Trading in the natural gas pits at the New York Mercantile Exchange became even more heated than usual today as the January contract plunged 13 percent from Monday's record levels. It's the biggest drop in almost four years and came after meteorologists predicted temperatures will climb above freezing in the Midwest this weekend. But prices are still up about 75 percent since November 1st as a result of unusually cold winter in many parts of the nation and experts say the price increase could soon be passed along to consumers. All told, the Energy Information Administration estimates the average winter heating bill will rise about 50 percent over last year. Driving the increase is strong demand at a time when supplies are dwindling. Natural gas is used to heat most homes in America during the winter. But it has also become more popular as a year round source of electricity, especially in places like California, which is experiencing a power crunch. On Friday, federal regulators approved plans to lift price caps on wholesale electricity in that state. That, in turn, is expected to increase demand for natural gas.

RON BARONE, NATURAL GAS ANALYST, UBS WARBURG: California has not built any power plants in recent years. The demand for electricity is increased and now as a result of that they're building gas fired combined cycle capacity, which is the fastest capacity that can be built. And that's causing an increase in demand for gas in California right now.

MILLER: Part of the increase in natural gas prices is also being blamed on stricter environmental regulations which make clean burning natural gas more attractive as a power source for utilities over coal or oil. Traders say the direction of prices will depend on tomorrow's key report from the American Gas Association.

ERIC BOLLING, NATURAL GAS TRADER: If, you know, they show a big draw down tomorrow, you should see a huge move up. If there's not so much of a concern, if there's not a huge draw down, you maybe see the prices ease to the, you know, the $7 area. MILLER: The natural gas crunch could have an impact well beyond the winter. Not only is natural gas used to make electricity, it's also used to make an additive in gasoline, which could lead to higher prices at the pump this summer. 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.

12/12/00:"Business Week" Digital Economy-William Esrey,CEO, Sprint

SUSIE GHARIB: This year will be remembered as one of the most painful for tech stocks and the stocks of long distance telephone companies have been some of the most badly battered. But at the recent "Business Week" forum on the digital economy in San Francisco, Sprint CEO William Esrey told Scott Gurvey that reports of his industry's demise are greatly exaggerated.

WILLIAM ESREY, CEO, SPRINT: Well, I think if you are reading the press, you would think it already had died. But in reality, it's a very robust industry. If you look at the telecommunications industry, in total it is probably going to grow, by our estimates, 34 percent over the next three years. It is a heck of an industry. It's very robust. It's changing a lot within and some of the ways that people are using communications are changing, but the industry is very vital, a very good industry. It's going to grow, as I say, on an annual basis, 11, 12 percent a year of a massive industry to begin with.

SCOTT GURVEY, NIGHTLY BUSINESS REPORT: How is Sprint positioning itself right now?

ESREY: Well, I think if you look at the areas that are going to have a lot of the growth, clearly wireless is a big area. Data and I.P. and the Internet are big areas. We happen to be exceptionally well positioned, the only really nationwide digital wireless company with one frequency across the board. For nine straight quarters now we've grown faster than any other company in the business in new customers. So we are uniquely positioned. in data in the Internet, we are a tier one Internet carrier carrying a significant percentage of the Internet traffic. We are expanding that network domestically and internationally and adding hosting and applications to that. So we are well positioned in the fastest growing parts of the industry.

GURVEY: You also have a different philosophy than some of your competitors, keeping the company in one piece.

ESREY: You know, you look at some of our competitors and they seem to have their head down or seem to be reorganizing, reformatting or doing something. We are quite enthusiastic. We are charged up. We see great opportunities.

GURVEY: What about the difficulties of raising capital? It must be quite a challenge to raise the money needed to build out these new services.

ESREY: Well, I think it is in a challenging economic environment. It's still a very good one, but it's been good for so long that people are nervous about what is happening and I think it's smart to be prepared and I think it's smart to be cautious and to be efficient, either in your capital expenditures or in your costs to be efficient because I think there are clearly sign clearly signs that the economy is having some hiccups. Now, with Chairman Greenspan's recent pronouncement it looks like that may ease up interest rates, or at least not increase them, but probably going to an easing and I think that will be helpful. And if we can guide this thing down from the very heady pace we've been on, in the whole perspective of things it's not so bad.

GURVEY: Are the capital markets becoming more friendly?

ESREY: Money is always available to a sound business plan that shows the opportunity to get a return on that money. For a while, we were in markets where capital was available to any story that you happened to think up last night in the middle of the night. Those days are gone and they should be gone.

GURVEY: That's surprising isn't it, actually expecting a company to make money for its shareholders?

ESREY: No, it's not surprising. What was surprising is we did look at them.

GURVEY: Thank you. William Esrey, Sprint.

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.


12/12/00: Commentary: Key Cabinet Posts To Power The Economy

SUSIE GHARIB: In tonight's commentary, whoever eventually wins the presidential race still has a lot of work to do before the January inauguration. Here's Barbara Hackman Franklin, President and CEO Of Barbara Franklin Enterprises and former U.S. Secretary of Commerce.

BARBARA HACKMAN FRANKLIN, CEO, BARBARA FRANKLIN ENTERPRISES: When the election is over, the new president must quickly fill the key spots in his administration. Several jobs are important to economic policy. First is the Secretary of the Treasury. With the U.S. economy slowing and some potential soft spots around the world, this position needs stature and wisdom, someone whom markets respect and who establishes good relations with the Federal Reserve. The Secretary of Commerce and the U.S. Trade Representative both have roles in expanding the exports and trade which spur economic growth. The Trade Representative must balance the needs of various constituencies to come up with a negotiating agenda and the Commerce Secretary has the lead in promoting and expanding U.S. exports. These jobs now need good people skills. Relationships with our trading partners are badly frayed, the result of years of high handed treatment by some U.S. officials. We'll make much more progress if we rebuild these relationships. The Chair of the Council of Economic Advisers is key and should be a respected economist and forecaster. And there must be an effective way to coordinate economic policy among the many departments that have a piece of it. But the president is the most crucial player. He must set the tone and ensure that his administration's policies promote trade, growth and a climate for entrepreneurship to flourish. I'm Barbara Hackman Franklin.

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.


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

PAUL KANGAS: It was a mixed opening on Wall Street today with the blue chip Dow Industrial Average, led by strength in General Motors, Procter & Gamble (PG) and J.P. Morgan (JPM), posting a 24-point gain by 10 a.m., while the NASDAQ Index which fell 65 points at the outset, trimmed its loss to only 36 points by 10 a.m. The NASDAQ market continued to flounder about in modestly lower ground for the rest of the morning under some profit-taking pressures in the wake of nearly a 9 1/2 percent rise in the Composite Index over the previous two trading days, but the blue chip sector extended its early advance with the help of buyers searching for quality and low price-earnings ratio stocks. At noontime, the Dow was up 103 points; the NASDAQ Index posted a 37-point deficit. It appeared the market was undermined in afternoon trading by the increasing suspense of what the U.S. Supreme Court would decide about the presidential election deadlock. In any case, the Dow Jones Industrial Average had its closing gain trimmed to only 42.47 points putting it at 10,768.27. In today's 152-point trading range, the Industrial Average closed down 88 points from the best level of the session. The NASDAQ Composite fell 83 1/3 points to 2931.77. In its 84-point trading range, the Composite Index settled just a fraction above its worst level of the day.

Big board volume dropped to just over a billion shares. And about 31 million more shares of down volume than up volume.

The Dow Transport Index down 33 1/10 points.

The Utility Index managed to gain 2.16.

The Closing Tick just slightly bearish at -260.

Standard & Poor's 500 off just over nine points.

Just over a 5-point loss in the 100.

The MidCap 400 down 17 and a small fraction.

And the Bridge Futures Price Index down nearly 2 1/2 points.

New York Stock Exchange Composite off just over 2 1/2.

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

The Russell2000 Small Cap Index dropped nearly 9 ½ points.

And the Broadly-Based Wilshire 5000 off just over 126 points.

The bond market was under mild profit-taking pressure early today, following solid recent gains. But prices snapped back as the day wore on, partly because of the growing uncertainty over the Supreme Court's impending decision about the presidential election, and partly in reaction to a survey of the Nations Purchasing Managers, showing only 35 percent were optimistic about the economy. If they're right, the Federal Reserve may be moved to cut interest rates. In any event, tax free and corporates closed up 1/8-

point on average.

And the Treasury market also posted modest closing gains.

5-year notes rising 3/32.

The 10-year notes up 2/32, with the yield at 5.36 percent.

30-year bond up 5/32.

And the Lehman Brothers Long-Term Treasury Bond Index gained exactly 2 1/4 points.

Well, this is they say the news sometimes is already in the stock because Kodak shares were up $1.50 today closing at $41.06. But it was a mixed picture on Wall Street overall. The Dow, after being up over 100 points early in the day, had to settle for a 42 1/2 point closing gain. The broader market lower by a 16 to 13 margin, but 140 new highs for the year against only 68 new lows, a really mixed picture.

Lucent Technologies (LU) topped the active list on 32 million shares, up $2. There's a rumor making the rounds that Nokia (NOK) might be interested in making a buyout bid. And no comment from either company on that.

Nortel Networks (NT) down $4.25, a little profit taking after recent strength. That sent the Toronto Exchange Index down 2 ½ percent, incidentally.

General Electric (GE) down $2.50, hurt by Honeywell's fourth quarter earnings warning. We'll see what Honeywell did in just a moment.

AT & T (T) moved up $1.06.

Philip Morris (MO) down 13, fifth in volume.

EMC (EMC) down $7.88, a little profit taking there. That stock hit $90 a share last week.

Motorola (MOT) down $0.88 after a good gain yesterday.

Sprint FON Group (FON) up $1.13. The telecom stocks made a nice rally today.

Citigroup was down $0.25.

And then Compaq Computer (CPQ) closed up $0.53. After the close it dipped down to around 19 and a fraction on that earnings warning and then after hours it moved just above 20 again. So, a real rebound there.

ALZA (AZA) was up $2.06. The company received FDA approval for its attention deficit disorder drug called Concerta™.

Best Buy (BBY) up $1.19. The company in with third quarter earnings lower, $0.27 versus $0.37 last year, but that was in line with expectations.

Honeywell International (HON) down $3.06. The company sees lower than expected fourth quarter earnings of $0.70 to $0.74. The Street was looking for $0.86.

Procter & Gamble (PG) moved up $2.88 benefiting from its rival Colgate's (CL) forecast of a very good year. Colgate's stock itself was up $2.43.

Glaxo Wellcome (GLX) up $1.81.

And SmithKline Beecham (SBH) gained $2.19. The U.S. federal regulators are giving a preliminary merger approval to those two companies.

CIBER (CBR) up $1.19. Now this has got to be some bottom fishing. That stock was almost $30 a share last December and it seemed to have bottomed out.

Pinnacle Entertainment (PNK) up $2.69. Stock got a favorable mention in a positive report on the gaming industry from Jason Ader at Bear Stearns.

Rogers Wireless Communications (RCN), now here's another example of a good telecom wireless stock rallying today.

Factset Research Systems (FDS) gained $5.24. First quarter earnings came in at $0.22, well up from last year's $0.16 and a penny above the Street estimate. Revenues up a whopping 36 percent.

Interstate Bakeries (IBC) down $3.50 a share. Second quarter earnings sharply lower, $0.22, down from $0.40 last year. Sales were flat and the company sees no improvement, really, until the fourth quarter of the year.

Dallas Semiconductor (DS) dropped $8 a share. The company says it sees fourth quarter earnings around $0.34 to $0.37. The Street estimate was $0.44. Also, Dallas sees a five to seven percent drop in sequential revenues. Robertson Stephens cut earnings estimates.

NASDAQ trading, an 83 1/3 point loss in the Index. Trading volume just below two billion shares, well down from yesterday. About 15 stocks up for every 23 down.

Sun Microsystems (SUNW) off $0.13.

JDS Uniphase (JDSU) fell $5.38.

Cisco Systems (CSCO) a $0.44 loss.

QUALCOMM (QCOM) down $1 -- or $9.69.

Microsoft (MSFT) managed to gain $0.31.

Then Intel (INTC) down $0.94.

Yahoo! (YHOO) gained $1.94.

Broadcom (BRCM) down $1.75.

CIENA (CIEN) losing $1.42.

And SDL (SDLI) was down $24.13 a share.

M.S. Carriers (MSCA) a $6 gain on news the company will be acquired by another trucking firm, namely Swift Transportation (SWFT). It'll be a deal of stock worth ab