LINDA O'BRYON: After the attack, America continues to suffer through the nightmare of the worst terrorist incident in our history. But there are signs of recovery beginning to rise from the rubble. The nation's big financial markets, the New York and American Stock Exchanges and the NASDAQ plan to reopen for equities trading Monday morning. Futures trading got under way this morning in Chicago after a two-day hiatus. Many traders were prepared for a calamitous start. But as Diane Eastabrook reports, they got something else instead.

DIANE EASTABROOK, NIGHTLY BUSINESS REPORT CORRESPONDENT: Minutes before trading opened at the Chicago Board of Trade, anxiety prevailed.

EASTABROOK: But the potential for chaos quickly dissolved into order once traders began buying and selling interest rate futures. Traders say the long bond got a modest boost from investors who are seeking a safe haven in an uncertain stock market. But they say short-term bonds spiked higher on speculation the Federal Reserve is poised to slash interest rates again.

MICHAEL McDERMOTT, BOND TRADER, SALOMON SMITH BARNEY: They're looking for maybe 50 basis points sometime from the Fed within the next couple of days. If it looks like the market needs it, and the Fed has said that they will provide whatever liquidity is necessary for the markets and I think people look for that impact to be felt most severely in the short end.

EASTABROOK: Across town at the Chicago Mercantile Exchange traders observed a minute of silence, honoring the victims of Tuesday's tragedy, then returned to an active trading day. The eurodollar advanced against the dollar. Some traders attributed that movement to increased concern about the US economy. What surprised many traders, though, was the relative calm their clients displayed.

JACK BOUROUDJIAN, CURRENCY TRADER, COMMERZ FUTURES: You see a lot of activity in the rolling of positions which is nothing more than maintaining positions. So what they're doing is they're rolling from one contract to the next. That is nothing more than just maintaining your position and holding it until the next quarter.

EASTABROOK: Orders at retail futures brokerages were also slow today. Some brokers believe customers are still assessing where the stock market is headed.

PHILIP FLYNN, VICE PRESIDENT, ALARON TRADING: I think customers are trying to gauge what to do, how to react, and really more not knowing.

EASTABROOK: Some futures traders say keeping their market closed for a couple of days gave investors a chance to digest information and eliminated panic. They say that could be a good omen for the equity market. Diane Eastabrook, "NIGHTLY BUSINESS REPORT," Chicago.

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by eMediaMillWorks. 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. © 2001 Community Television Foundation of South Florida, Inc.

09/13/01: Richard Grasso, Chmn & CEO NYSE On Wall Street's Upcoming Return

PAUL KANGAS: And the 30-year bond overcame early weakness to close with a gain of 21/32.

PAUL KANGAS: So the spotlight tonight is on the New York Stock Exchange and trading for Monday. Joining me now from the exchange is its Chairman Richard Grasso and thanks very much for joining us.

RICHARD GRASSO, CHMN & CEO, NEW YORK STOCK EXCHANGE: Paul, good to be with you again.

KANGAS: How much work still has to be done to prepare for the market's opening Monday?

GRASSO: Well, there is a lot of coordinated planning being executed as we speak, Paul. But most importantly, as of today, we are still recovering live, members of the two facilities that imploded. And so long before we start the process of resuming the market, hopefully we'll have the process of recovering those who are still alive under the rubble.

KANGAS: How much backup trading volume might you guess there is out there?

GRASSO: It's hard to say, Paul, but I think that as you heard in the earlier segment, people are taking a measured, very intelligent approach. They're not reacting in a knee jerk fashion. History has proven time and again that the worst thing to do under a circumstance such as this is to react emotionally. We've got to step back, when the markets open and react in a calm, measured and analytical way. Most importantly Paul, let me say if I might, there are thousands of men and women in the New York City fire and police department who are right now crawling through that debris rescuing those who are still alive. That is the most important consideration for all of us here in America that we recover as many who are still alive as possible. Markets will recover. They will open and they will be fine.

KANGAS: How did you, along with the other leaders of the other markets and the SEC make the decision to delay the opening until the first of next week?

GRASSO: Well, it was a joint effort among the industry leaders in coordination with the two principle equity market. The New York Stock Exchange and NASDAQ worked arm in arm to be certain that we provide to 85 million Americans that same high quality of market that they've come to expect over the course of the 20th century. And that will be the case come Monday, Paul. And it's the human factor that we first have got to be concerned about. The rest in terms of infrastructure, power, telecommunications, those are all being worked on and will be ready come Monday morning.

KANGAS: What are your thoughts about what you and your colleagues have been through since last Tuesday?

GRASSO: I would not say. It is just-we here in lower Manhattan-obviously the tragedy struck lower Manhattan but it also struck in the Pentagon. It struck in Pennsylvania. It struck all Americans, Paul. This was a heinous act against America and while innocent people were killed and injured, and property was destroyed, let us not forget that the idealism, the American way of life hasn't been destroyed. Our country will recover and be stronger than ever. These markets will support that. That's the message I think that is so important for your viewers to hear.

KANGAS: Very true and very briefly can you share with us your gut feeling about what kind of a day Monday is going to be briefly?

GRASSO: Well from an operating standpoint, we will bring the market up systematically both here and at NASDAQ with the same level of service you've come to expect. From a market performance standpoint I would hope investors would take this weekend to evaluate calmly and intelligently the fact that this is the greatest country on earth, Paul. And those who are long-term, who are patient, will be well rewarded.

KANGAS: Thank you very much, Richard Grasso chairman of the New York Stock Exchange, thanks again.

GRASSO: Thank you, Paul.

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by eMediaMillWorks. 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. © 2001 Community Television Foundation of South Florida, Inc.

09/13/01: Brokerages Brace For Uncertain Investors

LINDA O'BRYON: As we've reported, we now know US equity markets will reopen for trading on Monday. The major US brokerage firms spent the day today preparing for that open and talking with investors about what to expect. Suzanne Pratt reports.

SUZANNE PRATT, NIGHTLY BUSINESS REPORT CORRESPONDENT: Financial services firms across the country did their best today to reassure and calm investors that trading would be orderly once US stock markets reopen.

CHARLES SCHWAB, CHAIRMAN & CO-CEO, CHARLES SCHWAB CORP. It is likely that there will be some short-term volatility. That is to be expected. There might be a few glitches. They'll be smoothed out in short order.

PRATT: The nation's largest discount broker also said call volume from investors has been light and there is no panic among clients. Even brokerages located in lower Manhattan expect to be fully operational and participate in all markets although it will be anything but business as usual. Lehman Brothers, with headquarters in the world financial center, is one of the firms most affected. Its building has been sealed off and operations are being diverted to branch offices. Gruntal and Company, which was located across from the World Trade Center at One Liberty Plaza, has been displaced and has set up temporary headquarters in midtown. Goldman Sachs and Prudential Securities, both of which are based on the east side of the financial district, are coping with the huge infrastructure blow to lower Manhattan, but are ready to open whenever trading resumes. Again, most experts predict a sell-off, but many are advising investors not to make any rash decisions.

ALAN SKRAINKA, CHIEF MARKET STRATEGIST, EDWARD JONES: It certainly is a tragedy what has occurred and we just don't think in the heat of the moment really our customers should be buying or selling. Our message has been for them to maintain their positions and ultimately when all of this settles out we think the economy and the markets will regain a more solid footing.

PRATT: Every brokerage firm we spoke to today says maintaining investor confidence is a top priority. And while getting up and running may be tough on some, all expect no noticeable disruptions to trading for their clients. Suzanne Pratt, NIGHTLY BUSINESS REPORT, New York.

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by eMediaMillWorks. 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. © 2001 Community Television Foundation of South Florida, Inc.

09/13/01: Investment Advice From James Awad, President, Awad Capital Management

SUSIE GHARIB: Let's talk now about what investors can expect when the financial markets do open and where is the best place to put their money. Joining me here at the Nasdaq market site is James Awad. He is President of his own firm, Awad Capital Management. Jim, you have been in the investment business for over 32 years and you've been through these crises before. What can we expect when the stock market does open?

JIM AWAD, PORTFOLIO STRATEGIST, AWAD ASSET MANAGEMENT: Well, the first reaction is likely to be that the sellers who have felt locked in will start to sell and you'll see some pressure on stocks. Now, there are a whole lot of bargain hunters waiting in come in and buy that weakness. And so then you are likely to see somewhat of a rally. But I think the bargain hunters may get fooled this time because this event is not good for the American economy. On the margin you're going to damage consumer confidence, you're going to damage business confidence. The consumer is not going to buy that extra SUV. The businessman or businesswoman is going to delay delivery of goods and inventory that they bought. And I think what we're going to go through is a round of reductions of GNP, estimates for the fourth quarter, reduction in corporate profit estimates for the quarter. The next-and I think that will lead to weakness. Then the next question that investors will be asking is are we just going to push out that demand till 2002 or have we permanently lost it? And you're not going to know for a while.

GHARIB: Well, let's talk first just on the short-term. There's a number of economists who I've talked to who, like yourself, are very concerned about the economy and they're saying that we're going into a recession. So does that mean we're going into a protracted bear market?

AWAD: No. You had the bear market and this will be the final leg of it. Once you get away from the few technology stocks that are still expensive, although they're down a lot they're still expensive, the broad body of stocks are attractively priced and I think it's very important not to get too bearish on America. It doesn't pay to be too bearish on America for too long. A year from today we'll be talking about growth and profits and increasing stock prices.

GHARIB: But short-term you're saying there is going to be weakness in the market. Are we talking about a couple of hours, a day or so, or are we talking about months?

AWAD: I think we're talking about a few months, the final leg down in what has been a bear market. But I think it will be measured in months, not years. And I think it will probably be measured in a quarter, two at most, not in a period longer than that. So I would view this as what will be the cathartic last selling in what has been a terrible market.

GHARIB: Well, and not only have we had a terrible market, we've also had this terrible terrorist attack on America and so there's another kind of psychological thinking. People are worried that there is more terrorism to come, maybe a war like kind of a situation and so they want to have access to their money and they are not really thinking of maybe the stock market. Are the alternatives perhaps better? Money markets? Bonds?

AWAD: Well, first of all I agree with you that this one is a little bit different in terms of the uncertainty because it's not a clear enemy that we can eliminate in day number one. So there will be that uncertainty. Now, money markets, there's a place for people who want liquidity even though rates are very low. But money markets are a good place to put your money. Bonds will probably have one more run, particularly Treasuries, because they are viewed as safety in a period of poor economic activity. But I wouldn't lock in long-term bonds here because I think a year from today the economy will be better, stocks will be higher and bond yields that you are offering today will be too low. Gold, I don't see that as an alternative. We don't have the inflation that you typically have in gold. So I would say I would do cash and be looking to buy stocks.

GHARIB: All right, looking to buy stocks, in what sectors? What do you see would be a safe place?

AWAD: OK. What you don't want to do is go back and bottom fish on the Nasdaq because I think that that has some more pain to experience. So what you want to look at are companies that you think can show earnings growth in a no growth economy with good balance sheets that are sensibly priced. And in terms of industry there is particular opportunity in education in this country, there's opportunity in finance as the baby boomers age and health care as the baby boomers age. Clearly, defense is going to get a lot of poplar support here and Bush is for it so you're going to see some spending in that area. But I think the theme here that investors ought to pay attention to is don't look at the leaders from the last cycle, which are the technology stocks that are still selling very expensively. Get away from them. The rest of the stock market is very reasonably priced with some terrific companies that you are going to want to buy them into the weakness that I'm talking about.

GHARIB: All right, well, we'll see what happens. Thank you so much for talking to NIGHTLY BUSINESS REPORT.

AWAD: My pleasure.

GHARIB: And we've been speaking with James Awad of Awad Asset Management.

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by eMediaMillWorks. 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. © 2001 Community Television Foundation of South Florida, Inc.

09/13/01: Will Emergency Spending Cause An Economic Emergency?

LINDA O'BRYON: Also in Washington, President Bush and Congress moved forward today with financial assistance for rescue efforts and vows to find those responsible for Tuesday's horrific attacks. But as Washington Bureau Chief Darren Gersh reports, President Bush says the nation must be ready to meet new challenges.

DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: The United States faces a new kind of war, the President said, and this is a time for new priorities.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: This is now the focus of my administration. We will very much engage in domestic policy, of course. I look forward to working with Congress on a variety of issues. But now that a war has been declared on us, we will lead the world to victory.

GERSH: The President has asked for $20 billion in emergency funding to spend as he sees fit for relief efforts and to combat terrorism. At the Treasury, Secretary Paul O'Neill says the government is working to minimize disruptions to the financial system and he says prospects for economic rebound are unchanged.

PAUL O'NEILL, TREASURY SECRETARY: We have every reason to maintain our confidence in the U.S. economy. No evil, no matter how unspeakable, can destroy America's productive spirit.

GERSH: Fed Chairman Alan Greenspan spent the day meeting with senior staff and the Fed is monitoring markets that are open. Last night the Fed injected $70 billion into the U.S. banking system and this morning it announced a $50 billion swap arrangement with the European Central Bank to provide dollars to foreign banks without disrupting or intervening in currency markets. Currency traders took that as a strong signal to avoid any temptation to speculate and the dollar was little changed today. Market watchers also say anyone who tried to make money off this tragedy would run into a wall of peer pressure from fellow traders.

PATRICK COLLINS, CURRENCY TRADER, RUESCH INTERNATIONAL: There's been a huge amount of human loss and it has hit to the heart of the financial community in the U.S. and throughout the world. So any reaction to any speculative move would be extremely negative.

GERSH: Congressional leaders say they know the amount of emergency spending will grow in the days and weeks ahead. And just late this afternoon, the President said he would seek an additional $20 billion in relief for the New York area. Darren Gersh, NIGHTLY BUSINESS REPORT, Washington.

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by eMediaMillWorks. 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. © 2001 Community Television Foundation of South Florida, Inc.

09/13/01: One On One With Gary Thayer, A.G. Edwards' Chief Economist

LINDA O'BRYON: Economists are now assessing what the tragedy could mean to our future. One big question is whether these events will change the perception of where the country is headed. I asked that question late today to Gary Thayer, A.G. Edwards' Chief Economist.

GARY THAYER, CHIEF ECONOMIST, A.G. EDWARDS: Well, I think, Linda, that over the last year, people haven't viewed the developments in the country all that favorably. The economy has held up OK but I think people were a little bit concerned about where we were headed. And I think out of that week's unbelievable events, we have seen a sense of unity and patriotism develop and I think that could change perceptions of where the country is headed.

O'BRYON: And you have said that the perception is so important in terms of the overall economy.

THAYER: Sure. You know, right now I think that the consumers are torn between worry about what's going on and a sevens patriotism for how the county is coping. And I think if we can get a perception that the country is coping with these problems and has a course of action that could get us through this difficult time, I think the economy could be helped by that.

O'BRYON: But then what about the worries that we've heard by some economists that consumer confidence is declining and that as a result of the tragic events of this week that we could see a recession?

THAYER: Well, I think these events this week draw us closer to a recession, but I'm not sure that we're there yet. I think that a lot will depend upon consumers. Between the cutting interest rates this year and the tax cuts, consumers still have the capacity to spend. And so it just depends on how they feel, and hopefully if we can resolve these problems quickly, consumers may not feel that bad for long.

O'BRYON: So you think that consumer sentiment that we saw was dropping even before this week could turn around pretty quickly?

THAYER: Well, we hope it can. A lot, we've learned this week, can change very quickly, and therefore it's hard to say for sure what's going to happen in the future. But it's possible that if we get a quick resolution to these difficult times that the consumers may look favorably on that.

O'BRYON: Gary, what about other factors that could be viewed as concerns such as oil supply?

THAYER: Well, fortunately OPEC has said that they will provide, if possible, the needed supply of oil to keep prices from spiking upward and I think that is a very encouraging sign. We need to make sure that we don't have any disruptions in oil supply in order to prevent another problem from developing on top of this disaster this week.

O'BRYON: And of course we saw the bond markets open today and then a spike in short-term bonds. What does that suggest for the overall economy and Fed policy?

THAYER: Well, I think what it shows is that the markets are anticipating that the Fed will cut interest rates. The Fed has said that it will do what it needs, it will provide liquidity to the financial system and the markets are interpreting that as a sign the Fed's going to cut rates.

O'BRYON: So do you see that as a reassuring sign, then, by the bond market today?

THAYER: Yes, absolutely. I think it's a good sign. I mean it does reflect some concern by some investors, I suppose. But it's also a sign that the markets recognize that the Fed is willing to take action.

O'BRYON: Thank you very much.

THAYER: Thank you, Linda.

O'BRYON: Our guest, Gary Thayer, Chief Economist of A.G. Edwards.