SUSIE GHARIB: Wall Street's two-day rally ran out of gas. The Dow fell 92 points today, and the NASDAQ lost 37. But some good news today on the oil front. OPEC ministers oil meeting in Vienna decided to hold production steady. As Suzanne Pratt reports, this could help the US economy.

SUZANNE PRATT, NIGHTLY BUSINESS REPORT CORRESPONDENT: In response to tough international pressure, OPEC members meeting in Vienna today unofficially agreed to keep oil supplies unchanged, at least for now. Although a formal announcement will come tomorrow, oil ministers today said it was better to allow time for existing production cuts to be felt in the world's oil markets, rather than trim output and risk taking the blame for nudging world economies into recession. As a result, OPEC's oil production will remain at just over 23 million barrels a day, a level most experts said is reasonable.

AARON KILDOW, ENERGY FUTURES ANALYST, PRUDENTIAL SECURITIES: I think it's about all they could do. If they decided to - if they're going to come out and try to bring in production to try to keep prices high, it could really come back to bite them if the global economy turns against them, which it probably would.

PRATT: In the days immediately following the terrorist attacks, oil prices around the world spurted higher on concerns about possible supply disruptions. But in the last 10 days, prices have fallen sharply as businesses and consumers cut demand for jet fuel and gasoline. In fact, light sweet crude, which trades on the New York Mercantile Exchange, has plummeted 20 percent from its close of about $28 a barrel on September 10. For oil producing nations, not to mention oil companies, the plunge is frightening. But for the weak US economy, it's good news. Experts say almost nothing gives consumers a quicker cash infusion than a drop in oil prices. But analysts say whether prices will remain low is questionable.

PETER ROSENTHAL, SENIOR MARKET ANALYST, ENERGY ARGUS: Based on the activity in the last few weeks, people think maybe a bottom could be close, and OPEC will try to maybe to cut back or better adhere with their quotas, so they can get prices a little higher. On the other hand, if demand continues to drop off, then we could be in a free fall for a little more time.

PRATT: OPEC ministers are scheduled to meet again in November. Analysts say that is the earliest that OPEC would decide cut output, but a key factor in making that decision is exactly where the war on terrorism stands at that time. 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.

09/26/01: One On One With John Dillon, CEO, International Paper

SUSIE GHARIB: Treasury Secretary Paul O'Neill urged business leaders today to be patient about getting government help to jump start the economy. At a breakfast meeting in New York with about a dozen CEOs of the Business Roundtable, O'Neill proposed a cautious approach rather than immediate action for a stimulus package in the aftermath of the terrorist attacks. When I talked to John Dillon, chairman of the Business Roundtable and CEO of International Paper (IP) , I asked about his reaction to O'Neill's strategy.

JOHN DILLON, CEO, INTERNATIONAL PAPER: He's very realistic, I think in terms of understanding the risks in the situation that we're in and he is working through trying to determine what the best set of solutions that we can pursue are.

GHARIB: Mr. Dillon, the economy is pretty much in a recession. There are many companies that could go bankrupt. What kind of help do you want from the government?

DILLON: We're recommending a broad based range of stimuli. One of the ones that we feel most comfortable with is a recommendation to get money in hands of consumers rapidly. And that could be accomplished through a change in withholdings taxes or you know, some form of relief to the American consumer, the American employee, that will give them more discretionary income and provide a stimulus for them to continue spending. At the same time, there has been some discussion of corporate tax, change in corporate tax rates and we support that as well.

GHARIB: The Federal Reserve is expected to cut interest rates again by another half percent next week. Do you find all these interest rate cuts are helping businesses?

DILLON: Well we have not seen an overwhelming reaction to that speaking from International Paper's perspective. The recession that we are in is a demand side recession. It is not a liquidity issue. It's not a credit issue. It's not an investment issue. What we need is to stimulate demand for our products. And that's why we've been talking about what can we do for the consumer? What can we do to get more money in the hands of the consumer and what can we do on corporate tax rates to help stimulate corporate spending over the longer term.

GHARIB: You represent 150 big businesses in this country. How has this terrorist attack affected the way you do business?

DILLON: Our factories are running. We're calling on customers. We're receiving orders. We're making product. We're shipping it. And our company is running today just like it was three weeks ago. We're going on with business. We have cut back on some travel, of course. But this is all about keeping going. It's all about the future. It's not about stalling.

GHARIB: Mr. Dillon this whole terrorist attack really shook up America. What do you think it's going to take to get this economy stronger and to get this country psychologically stronger?

DILLON: We got to stop being in a funk and we've got to say, here is what we're facing. Here is how we're going to react to it. Communicate with our employees. Be honest with them that yes, we are likely to see more difficult conditions than we've had and move to we're vigorous. We've had a tremendous shock. We're going to move through this and we're going to be stronger than ever when we come out the other side.

GHARIB: Mr. Dillon, thank you very much for talking to NIGHTLY BUSINESS REPORT.

DILLON: Thank you.

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.

09/26/01: The Closing Of Reagan Airport Is Causing Turbulence To DC Businesses

SUSIE GHARIB: Reagan National Airport just outside of Washington, D.C. is the only airport that is still closed after the terrorist attacks. And as Angela Terrell Heath reports, that's having a huge impact on that region.

ANGELA TERRELL HEATH, NIGHTLY BUSINESS REPORT CORRESPONDENT: Since the attacks on September 11, the Saint Gregory Hotel has laid off 10 percent of its employees and cut back hours for other workers.

HECTOR TORRES, VICE PRESIDENT, CAPITAL HOTELS: Business, as it would be obvious to expect, is much lower than we had expected and perhaps even anticipated. We have seen reductions of 20, 25 percent of our expected occupancy for the same period. We're getting hit very badly, as the city is.

TERRELL: This time of year, hotels normally see occupancy rates as high as 80 percent, mostly due to convention bookings. But now, average hotel occupancy rates in the region have fallen to 50 percent. Florist William Burchett relies on those hotels for business and has seen his sales fall as much as 10 percent.

WILLIAM BURCHETT, OWNER, BIRD'S FLORIST: Without people being in the hotels and coming to and from town, and especially coming to and from town easily, it impacts things.

TERRELL: With National Airport closed, even taxicab drivers are feeling the pinch.

MUSSIE SEBHATU, TAXI CAB DRIVER: I'm not making as much money as I used to make, not even close.

TERRELL: D.C.'s Red Sage restaurant closed a portion of its dining room for one week due to slow sales. Owner Dan Mesches is Vice Chair of the National Restaurant Association's local chapter and he's hopeful about the future.

DAN MESCHES, PRESIDENT, STAR MANAGEMENT GROUP: I think we will adjust how we do business for a while, all of us. But we feel confident that it will eventually be back as strong as it was.

TERRELL: Economists warn even if the airport opens next week, a portion of the billions of dollars the hospitality industry brings in annually is already lost. But there is an upside. Analysts predict increased federal spending by government agencies will offset some of the decline in the region's economy. Economist Stephen Fuller says that may not be enough to get the hospitality industry back on its feet.

STEPHEN FULLER, PROFESSOR, GEORGE MASON UNIVERSITY: It won't gain back what its lost, but it could regain its normal business base come next year. But a lot has to happen both in the airport and the airline industry and just among consumers where they feel safe coming to Washington.

TERRELL: Washington Mayor Anthony Williams and other local politicians met with White House officials this afternoon. They stressed the importance of reopening National Airport as soon as possible. Williams said keeping the airport closed, even temporarily, sends a signal to the rest of the world that the nation's capital is not safe. Angela Terrell Heath, 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.

09/26/01: The Terrorist Attack Is Leaving Insurance Companies Uncertain About The Future

SUSIE GHARIB: Insurance companies, like the airlines, have been hit hard by the recent terrorist attacks. So far they've been able to pay all of their claims. But as Quinn O'Toole reports, many are worried about understanding against future acts of terrorism.

QUINN O'TOOLE, NIGHTLY BUSINESS REPORT CORRESPONDENT: The September 11 terrorist attacks could cost the insurance industry between $30 billion and $60 billion. Today before a Congressional panel insurance executives said they expect to pay all of their claims and stay in business.

RONALD FERGUSON, CHAIRMAN, GENERAL RE: So the losses will be paid. The industry can handle it. But the big question is and then what?

O'TOOLE: The biggest losses fall on reinsurers, companies that provide insurance to insurance companies. Among them, Berkshire Hathaway (BRK) says it expects losses of more than $2 billion. Munich Re expects to lose more than $1.9 billion. And just today, Lloyds of London announced it will lose $1.9 billion, as well. After absorbing such massive losses, many primary insurers, which cover individuals and businesses, warn insurance against any future terrorist attacks may not be available.

DEAN O'HARE, CEO, CHUBB CORPORATION: If I wanted to go and insure a major investment banking organization with an office in downtown Manhattan, there would be absolutely no place where I could go and buy reinsurance that would cover terrorism.

O'TOOLE: So the insurance industry is asking the government to get involved. One proposal would create an industry funded reinsurance pool to cover terrorist acts, with the government acting as an insurer of last resort, something similar to the federal flood insurance program. Analysts say such a program would keep insurance coverage available and prices manageable. But there are drawbacks.

ALAIN KARAOGLAN, ANALYST, DEUTSCHE BANK ALEX BROWN: There would always be a tendency if the government is assuming financial responsibility that maybe corporations or individuals may not be as careful, as diligent in protecting themselves and taking all the right steps.

O'TOOLE: Any assistance for the insurance industry may be slow in coming. After spending $15 billion to bail out the airlines, analysts say law makers will likely take their time with any new proposals. Quinn O'Toole, 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.

09/26/01: Money File- Surviving The Volatile Post Terrorist Attack Market

SUSIE GHARIB: All over America these days, nervous investors are watching Wall Street, wondering what to do in the wake of the terrorist attacks. In the money file tonight, some suggestions. Here's Don Phillips, Managing Director of Morningstar.

DON PHILLIPS, MANAGING DIRECTOR, MORNINGSTAR: Following the investment markets is a lot less fun today than it was just a few years ago. Gone are the quick double digit gains and the sizzling IPOs of 1999. In their place are day after day of down prices and new lows, and now the horrific news of the terrorist attacks on New York and Washington. It's enough to make one turn one's back on the investment markets entirely. Don't do it. Yes, this is a rotten market for those seeking short-term windfalls, but easy riches are the siren call of speculators, not of true investors. Those looking for solid long-term investment gains will actually find this market more hospitable than those of recent years, as lower prices and less exuberant behavior leads to greater opportunities. One of the most successful managers I know says you make your money during markets like these, you just don't know it at the time. I think that that's an important insight to keep in mind these days. True investment success comes not from flipping hot IPOs in a bull market, but from weathering tough markets and using periods like this one to discover bargains that will bear fruit in the future. It may be less pleasurable to read today's financial news, but the very fact that so many fair weather investors are tuning out is what makes for greater opportunities for those who stay engaged. It's times like these that separate the true investors from the short-term speculators. I'm Don Phillips.

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.

09/26/01: Paul Kangas' Wall Street Wrap Up

PAUL KANGAS: The stock market opened modestly higher today in an attempt to follow through on its two-day advance, but after the Dow Industrial Average rose only 43 points at the outset, and the NASDAQ Index gained 15 points, sellers moved in and by 10:30 this morning., the Dow fell to a 47-point loss. The NASDAQ was down 10. The market continued to lose ground for the rest of the morning, partly in reaction to disappointing quarterly results posted by Micron Technology (MU), and especially AES Corporation (AES), whose stock tumbled over 45 percent, causing big losses in other power producers like Calpine (CPN). At noontime, the Industrial Average was off 108 points, or 1.2 percent, while the NASDAQ Index posted a 27-point, or 1.8 percent, loss. The blue chip sector stabilized at its midday levels throughout the afternoon, but the NASDAQ market lost some further ground due to weakness in the tech sector. The Dow Jones Industrial Average ended with a loss of 92.58 or 1.1 percent and now stands at 8567.39. The NASDAQ Composite slid 37.60 to close at 1464.04.

Big board volume slipped a bit on the sell off. Technically, that's encouraging, 1.5 billion shares, but about a 9 to 5 ratio of down volume over up volume.

The Dow Transport Index off just over 16 points.

The Utility Index down 13 points.

And the Closing Tick just barely bullish at +356.

Standard & Poor's 500 down nearly 5 ¼ points.

A loss of nearly 1 2/3 in the 100.

The MidCap 400 fell just about 5 points.

And the Bridge Futures Price Index moved up 1.47.

New York Stock Exchange Composite Index losing nearly 1 1/2.

The Value Line off 5.90.

Russell2000 Small Cap Index off over 6 1/3 points.

And the broadly based Wilshire 5000 losing just over 61 1/4 points.

The bond market extended yesterday's upturn today as more deteriorating corporate earnings reports underscored the probability of another aggressive interest rate cut next week. The stock sell-off also prompted flight to quality buying, especially in the five-year Treasury note, which saw its yield drop to a 38-year low. A firm US dollar was another plus, which helped tax-free and corporate issues come in with closing gains of 1/4 to 1/2 point, while the Treasury market was solidly higher across the board.

5-year notes up 9/32.

The 10-year notes up 19/32.

30-year bond gained 31/32 with a yield at 5 1/2 percent.

And the Lehman Brothers Long-Term Treasury Bond Index up 13 2/3 points.

Well, I guess there was no insurance against a little profit taking today on Wall Street. But the Dow Industrial Average did give back some of the gains of the last two sessions, down 92 ½ points, 1.1 percent. The broader market really not that negative, only 16 to 15 negative. Only 23 new highs for the year, though; 203 new lows.

AES (AES) topped the active list on 42.4 million shares. This is a power plant company with exposure, a lot of exposure in Brazil, and it reported first quarter earnings of only $1.25 to $1.45, or it's predicting that. The Street estimate is $1.75 to $1.90. Standard & Poor's downgraded it from "accumulate" to "avoid." Morgan Stanley, Alex Brown, Merrill Lynch all downgraded AES.

Micron Technology (MU) down nearly $4 a share. It came in with a fourth quarter loss of $0.28 per share versus earnings of $1.20 a year ago. One of the reasons, a 79 percent drop in sales.

General Electric (GE) edging up $0.14.

And then EMC (EMC) down $0.28.

Pfizer (PFE) in a firm drug group today gained $1.57.

AOL Time Warner (AOL) dropped $0.52.

Compaq Computer (CPQ) off $0.42.

And AT&T (T) lost $0.12.

A $0.16 drop in Lucent (LU).

And another fractional loser is Merrill Lynch (MER), 10th in volume, down $0.72.

Bear Stearns Companies (BSC) edged up $0.28 even though third quarter earnings came in $0.26, or 26 percent below last year, $0.95 versus $1.32 then. But that was actually $0.05 better than the Street estimate so the stock managed to gain a little.

Calpine (CPN) tumbling $2.35. That in sympathy with that sharp drop in AES Corp.

Carnival Cruise Lines (CCL) up $1.18. The Alex Brown Brokerage upgraded it from "market perform" to "buy."

Goldman Sachs (GS) down just $0.18 despite reporting a third quarter drop in earnings of 43 percent, all the way down to $0.87 versus last year's $1.62. But that was $0.06 above the Street estimate.

IBM (IBM) down $3.15. Goldman Sachs cut earnings estimates for this year from $4.45 down to $4.40. The biggest point loser in the Dow was IBM.

Johnson & Johnson (JNJ), the biggest point gainer in the Dow, rose $1.19.

Tyson Foods (TSN) up $1.15. The company increased its fourth quarter earnings estimate from a range of $0.08 to $0.12 a share up to $0.18 to $0.22 and its merger partner to be, IBP Corp., that stock rose $2.81 in sympathy.

Heico (HEI) gained $1.58. Standard & Poor's upgraded it from "hold" to a "strong buy."

Primedia (PRM) the big percentage loser, down $1.62. The company sees lower than expected third quarter results.

Winn-Dixie Stores (WIN), this is the southeastern United States grocery store chains, tumbling $7.37 after the close yesterday when Dixie cut its first quarter earnings estimates down to the $0.15 to $0.18 per share range. The Street was expecting $0.25. Today,

Standard & Poor's downgraded it from "accumulate" to just a "hold."

Textron (TXT), maker of small planes and helicopters, tumbling $10.20 a share. The company is predicting a third quarter loss of $0.25. The Street was looking for $0.71 in earnings.

And Lamson & Session (LMS), the thermoplastics products maker, down $1.15. It was up $1.40 yesterday on optimism that the company today would have an upbeat third quarter outlook. Well, it didn't. The company is forecasting a loss of $0.10 to $0.15 a share on much lower than expected sales.

NASDAQ trading, a loss of 37.60 in the Composite Index. Volume down from yesterday. 13 stocks higher for every 22 lower