SUSIE GHARIB: Wall Street opened the new quarter with stocks slipping into the minus column. The Dow fell 10 points and the NASDAQ lost 18. Investors got more evidence today that the manufacturing sector is worsening. The National Association of Purchasing Management said today that its September Index dropped to 47 from 47.9 in August. A reading below 50 means manufacturing activity is contracting. Although this is the 14th month in a row that the Index has declined, it was still better than what economists expected.

MAUREEN ALLYN, CHIEF ECON., ZURICH SCUDDER INVESTMENTS: This report suggests to me preliminarily that perhaps the impact of the terrorist attack is not quite as bad as I was expecting it would be in the immediate aftermath of this attack. We still are looking at a fragile economy. I don't think there is any good news here.

GHARIB: Separately, consumer spending rose modestly in August thanks to tax rebate checks that put more money in the pockets of Americans. A new report today shows that personal spending rose 0.2 percent, and personal income was flat.

PAUL KANGAS: With the economy expected to head into recession after last month's terrorist attacks, pressure is building in Congress for quick action on a stimulus package. One leading member of Congress tells "NIGHTLY BUSINESS REPORT" action could come as soon as next week. Darren Gersh reports.

DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: Members of Congress toured ground zero today to see the World Trade Center wreckage for themselves. They came to see the place where the nation's priorities changed so violently. When these members of Congress return to Washington, they are expected to write new priorities for the 2002 fiscal year that begins today.

STANLEY COLLENDER, BUDGET ANALYST, FLEISCHMAN-HILLARD: After September 11, everything changed. I mean this is not just a question of making a 180-degree turn. This is being in a whole other dimension.

GERSH: Back in Washington, Senate Assistant Majority Leader, Harry Reid, predicts an economic stimulus package could pass as soon as next week. Senator Reid is pushing for an additional $10 billion in spending on infrastructure projects in 2002. He says it's the fastest way to create jobs.

SEN. HARRY REID, ASSISTANT MAJORITY LEADER: We've had a deteriorating infrastructure for decades that we've done nothing about and I think now is the time. There's been a hurt to the economy, and this would certainly make it well.

GERSH: Reid and other Democrats want to spend a total of $40 billion to improve highways, modernize rail service, beef up public health defenses, and protect power grids from attack. Business groups would also like to see public works projects accelerated, but they argue substantial tax relief is needed to help companies cope with sagging earnings.

BRUCE JOSTEN, EXECUTIVE VP., U.S. CHAMBER OF COMMERCE: Put money back into the private sector from the public sector. That means accelerate tax cuts to individuals, cut corporate rates, get rid of the AMOUNT, provide liquidity back to people and companies, and let them choose how to use that money.

GERSH: But Democrats point out the best way to help consumers is to reduce payroll taxes.

REID: People keep talking about income tax, but most people, the largest amount of taxes they pay are payroll taxes, not income taxes.

GERSH: In the end, Congress is expected to do: cut taxes for businesses and consumers, and spend more on public works. Analysts predict a price tag for a stimulus package of between $50 billion and $70 billion. 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.

10/01/01: Trading Returns To The American Stock Exchange

SUSIE GHARIB: Trading resumed today on the floor of American Stock Exchange. The building had been closed since smoke poured in and debris rained down just before the scheduled start of trading on September 11. Scott Gurvey reports.

SCOTT GURVEY, NIGHTLY BUSINESS REPORT CORRESPONDENT: With a moment of silence and then the opening bell, the American Stock Exchange began trading on its own floor for the first time since the attack nearly three weeks ago. The bell was rung by Michael Pascuma, at age 94, the AMEX's oldest trader. His son was among the nine AMEX members who died in the attack.

SALVATORE SODANO, CHMN & CEO, AMERICAN STOCK EXCHANGE: Needless to say, we're incredibly happy to be back in the building, but it is also a day that we remember nine of our AMEX family who lost their lives, so it is both happy and sad at the same time.

GURVEY: Trading in AMEX issues actually resumed two weeks ago with the popular exchange-traded funds and stocks trading at the New York Stock Exchange. Options traded in Philadelphia. It was an unprecedented act of cooperation between the frequent rivals.

SODANO: We are normally fierce competitors, but I think what everyone sees is in times of tragedy and when humanity is involved, the competitive pressures are put aside and we do the-people do the right thing for each other, and what's good for the country. That was done and we are very grateful for what the New York Stock Exchange and the Philadelphia Stock Exchange has done for us.

GURVEY: The AMEX is only two blocks south of the World Trade Center site. It is still in the restricted crime scene zone. It took the intervention of the White House to make an exception and allow the AMEX to reopen. New York's governor said it was necessary to send a message to the world.

GOV. GEORGE PATAKI, R- NEW YORK: This is America. You are the American Stock Exchange. You're back home right where you belong. They have not divided us or broken our spirit. They have unified us. Anyone who has ever bet against America has lost. We are still the financial capital of the world right here in New York and our economy and our country and our city and state will be stronger next week, stronger next year, stronger in the next decade, stronger for the next century. So welcome home. God bless you and God bless America. It's great being with you this morning. Thank you.

GURVEY: With the return of the AMEX to its own trading floor, all the major exchanges are now operating out of their homes, but the New York financial district is still anything but business as usual, the situation that is expected to continue for many months, if not longer. Scott Gurvey, "NIGHTLY BUSINESS REPORT," at the American Stock Exchange.

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.

10/01/01: Commentary: Easing The Recession Blow

SUSIE GHARIB: It's pretty much agreed by most economists that the U.S. economy is headed for a recession, especially in the wake of the September 11th attacks. But tonight's commentator believes we can move to minimize that. Here's John Makin, Resident Scholar of the American Enterprise Institute.

JOHN MAKIN, COMMENTARY: America needs a budget deficit. The terrorist attacks on New York and Washington have taken a heavy toll on Americans. But in our grief we must not forget the economic toll. The last thing we need now as we rebuild our spirits is a serious recession. The uncertainty injected into our lives and the extra effort now required to assure our safety have exacted a heavy tax on the economy. It now takes more effort to produce the same amount of goods and services. We need to act promptly to offset this tax. Fortunately we have the means to do so. To offset the uncertainty tax, we need lower tax rates for individuals and corporations. Tax cuts already passed this year by Congress but with full enactment delayed for years need to be brought forward and made permanent. Corporate tax rates should be cut by 10 percentage points. These stimulative measures taken altogether would cost about $200 billion. The much touted surplus would disappear for a time, but that's exactly what should happen in times of recession. Those like former Treasury Secretary Robert Rubin, who oppose tax cuts, believe that tax increases and debt reduction were responsible for the booming economy of the late 1990s. Actually, the casualty runs the other way. The booming economy the result of private sector innovation was responsible for the debt pay down. We're fortunate to have a budget surplus in hand to fund tax cuts and security enhancement projects. Let's not be mislead by Mr. Rubin's depression era opposition to tax cuts. I'm John Makin.

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.

10/01/01: Paul Kangas' Wall Street Wrap Up

PAUL KANGAS: Those tepid reports on manufacturing activity and consumer spending gave little stimulus to buyers on Wall Street early today, and in the absence of those end-of-quarter purchases by institutions which helped boost the Dow 166 points and the NASDAQ 75 points last Friday, stocks opened broadly lower. By 11:00 a.m. Dow stair-stepped its way down to a 106-point, or 1.2 percent loss, while the NASDAQ Index was down 38 points, or 2.5 percent. The tech sector was put under pressure early on by Merrill Lynch's lowering of earnings estimates on Intel (INTC) and Advanced Micro Devices (AMD), but when the stocks fell only fractionally, bullish investors were encouraged and the market began to rebound. A strong buy recommendation from C.S. First Boston on Citigroup stock also helped the Dow trim its deficit to 24 points by 2:00 p.m., when the NASDAQ was off only 16. While the tech sector held fairly steady for the rest of the session, the blue chips edged a bit higher on confidence the Fed would cut rates by 0.5 percent tomorrow. The Dow Jones Industrial Average trimmed its closing loss to only 10.73 putting it at 8836.83. The NASDAQ Composite ended on a down note, falling 18.34 at 1480.46, but a lot better than it was at mid session.

Volume took quite a downturn, 1.17 billion shares, way down from Friday's level and about 7 to 4 ratio of down volume over up volume.

The Dow Transport Index off 52 1/2 points or 2.4 percent.

The Utilities managed to gain 2.79.

The Closing Tick rather bullish at +662.

Standard & Poor's 500 down over 2 1/3 points.

A gain of .30 in the S&P 100.

The MidCap 400 down a little over 7 3/4 points.

Bridge Futures Price Index fell 1 1/10 points.

New York Stock Exchange Composite off a little over 1 3/4.

A 5-point drop in the Value Line.

Russell2000 Small Cap Index off 7.27.

And the broadly based Wilshire 5000 off 44 1/2 points or 1/2 percent.

Most of those economic reports you heard about earlier underscored the continuing weakness in the economy and another sign today was the report of 1.1 percent decline in August construction spending. he figures boosted the bond market because they seemed to guarantee another cut in interest rates by the Federal Reserve tomorrow. As a result, tax-free and corporate issues closed up 1/4 to 3/8 of a point on average and the Treasury market was higher across the board.

5-year notes edging up 3/32.

10-year note rising 12/32.

The 30-year bond was up 22/32.

And the Lehman Brothers Long-Term Treasury Bond Index gained just over 5 1/4 points.

A relatively mild session of backtracking after Friday's significant gains in the market. The Dow off only 10 3/4 points, 1/10 of a percent, and the advance/decline ratio in favor of losers, 18 to 13. But that's not really terrible. The number of highs, 39 for the year, and 104 new yearly lows.

General Electric (GE) topped the active list, 19.7 million shares traded, the stock edging up $0.44.

And then Citigroup having a good day with a gain of $1.25 CS First Boston brokerage upgraded it from a buy to a strong buy.

EMC losing $.65

Pfizer a $1.00 gain in a firm drug group.

Wal-Mart edge up $.26 although the company says its same store sales were slightly below planned last week.

AOL Time Warner down $.33

Sprint Fon Group off $.11

AT&T down $.28

Texas Instrument edged up $.01

Cendant tenth in volume was off $.13. Not much movement on that board.

Advanced Microdevices fell $.22 traded as low as $7.72 after Merril Lynch lowered its earnings outlook.

Continental Air moving up $.77. First Boston moving it up from a buy to a strong buy .

Compaq Computer closed with a $.02 gain. But after the market closed it said its third quarters earnings won't be earnings. Instead of the plus $.05 they were expecting they now say they will fall to the red with a $.05 to $.07 a share in an after hours trading from there.

Sungard Data down $2.84 the company sees third quarter falling short of the $.25 Wall Street estimate, now expects $.21 to $.22 in earnings.

Merck up $1.72 that was the best point gainer in the Dow incidentally. As the ABM Amro Brokerage released a positive report on Merk today and suggested it has a $90 price target for the stock.

3M was the big point loser today no specific news.

MEMC Electronics up $1.24 or 118%. On news a German utility called Eon is going to sell its 72% stake to a US based company called Texas Pacific group. The price will vary based on the company's near term performance.

And here the star of the day NCH Corp. which sells specialty chemicals among other items it received a $47.50 a stock buy out bid from the chairman and his family which already own 57% of the stock.

Quanta Services rising a $1.66. Utilicorp united is boosting its stake in this company from 35.4% to 36.3%

Collins & Aikman down $1.39 the company couldn't account for that drop. The company makes auto interiors and it looks like investors assigned it a backseat at least for today.

Jack In The Box down $5 a share. The company cut its fourth quarter earnings estimates from the range of $.53 to $.57 down to $.49 and Bank America downgraded its performance to market perform.

AO Smith which makes electric motors, down $2.59 . The company sees a lower than expected third quarter , probably just break even at best.

Nasdaq trading a loss of 18 1/3. Much better than that 40 point loss in the midsession. Trading volume just like on the big board dropped signi