SUSIE GHARIB: A surge of new confidence on Wall Street today. Investors were heartened by President Bush's comments to business leaders calling on Congress to approve a multi-billion dollar economic stimulus plan. The Dow vaulted 173 points, closing above the 9,000 level for the first time since the September 11th terrorist attacks. The NASDAQ also posted its biggest gain since the attacks, up 88. Here's Darren Gersh with more on the Bush economic package.

DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: Meeting with business leaders in New York, the president said he wants an economic stimulus package for 2002 of between $60 and $75 billion, enough, he said to "kick-start the economy."

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I believe we've got a fantastic opportunity to invigorate this economy and to assure the business leaders around America that the government is playing a very active role and that we will take the steps necessary to provide growth and stimulus.

GERSH: The president said a stimulus package should do three things: boost consumer confidence, encourage businesses to invest, and support workers displaced by the sagging economy. Speaking before the Senate Finance Committee, Treasury Secretary Paul O'Neill said as a starting point, half the stimulus package might go to increased government spending, including emergency grants to states for extended unemployment benefits, the rest to tax cuts. O'Neill suggested Congress should use $25 billion to speed up the income tax rate reductions the president signed into law earlier this year, calling it a quick way to get consumers spending.

PAUL O'NEILL, TREASURY SECRETARY: Because the economic evidence is fairly clear that marginal rate cuts do make a difference.

GERSH: O'Neill told senators to prepare for a jump in unemployment this month, but he said he still believes the economy could rebound by the end of the year. One sign the economy is coming back, O'Neill said credit card use-which plunged 18 percent after the attacks-had bounced back over this past weekend.

O'NEILL: We're certainly seeing a trend of Americans, even with a heavy heart, going back and regaining their economic footing.

GERSH: It now seems certain the Federal budget will dip into deficit this fiscal year, but the president stressed this is clearly a national emergency, and his administration is backing a limited, front-loaded stimulus package that should not worry financial markets.

BUSH: But we're mindful of the effect on long-term interest rates, and we think that number is the right number.

GERSH: Secretary O'Neill suggested Congress should try to pass a stimulus package in the next three to four weeks. He also said Congress should consider making any tax cuts retroactive to September 11. 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.

SUSIE GHARIB: Nortel Networks was under pressure today. Moody's Investors Service downgraded its debt rating and Merrill Lynch downgraded the stock. The move came a day after the troubled Canadian telecom company warned that it would post a $3.6 billion loss in the third quarter, and announced 20,000 more job cuts. NorTel also said that Chief Financial Officer Frank Dunn would succeed John Roth as chief executive on November 1. Earlier today from a production studio in midtown Manhattan, I asked Dunn what his plan is for NorTel.

FRANK DUNN, CHIEF FINANCIAL OFFICER, NORTEL NETWORKS: We have laid out a work plan to focus on three major business areas, metro networks, wireless networks and the long haul optical network business and we've organized to actually to plan on that. We're going to bring tremendous technologies over the next number of months and we're going to just execute that plan right now.

GHARIB: Mr. Dunn, you've been, Nortel has been selling off its assets. It's been laying off workers, dramatically refocusing the business. How much more is Nortel going to slim down?

DUNN: Well, I think, you know, one major part of the first part of that work plan was to size the business to today's reality. There was a market correction. The capital markets were not going to support this industry the way it did in the last two years and we wanted to get an organization structure that's profitable, sustainable at today's level. We basically are there. So now it's all about bringing the products to market.

GHARIB: When you look ahead after you finish this restructuring, what will the new Nortel look like?

DUNN: The new Nortel will be focused on the three business areas. We'll bring tremendous value in those three areas and we'll have an organization size of about 45,000 to execute that plan.

GHARIB: When Nortel's current CEO was talking to analysts last night, John Roth, he says that he saw signs of a stabilization in the industry. What are those signs?

DUNN: Well, we're seeing the industry itself adjusting to today's capital and overall capacity demand and adjusting their businesses to be competitive in these environments. And we're seeing the customers that are going to be successful starting to go on a proactive, forward looking approach. And we're seeing those signs in Nortel, as well.

GHARIB: These are very difficult times for all businesses given the September 11 attacks and what's happened to the economy, but especially for the telecommunications equipment industry, which is going through some sort of consolidation. When this consolidation phase is done, will Nortel be a survivor?

DUNN: Our focus right now is on rolling out the plans we have for the products and solution sets that we believe are going to be very compelling, that will put us in a great leadership position. That's what our focus is. Our focus is not on merging with another company.

GHARIB: Well, some of the analysts that I've been talking to have said that Nortel's competitive position has eroded dramatically. And they also have doubts that Nortel can grow its gross margins when revenues are declining. So the question whether Nortel should even be in business, what do you say to that?

DUNN: Well, we have a tremendous technology capability in this company. We've been known for that. We have maybe too, our secrets are too well kept. You'll start to see this-as an example we announced today with SBC Communication (SBC) that we've won the primary vendor for an optical metro deployment in their 13 state territory. So new products are coming out. We are leadership in capabilities and we're going to have now be much more clear and explain that to the Street and our customers and we're doing that right now.

GHARIB: What are your customers telling you right now?

DUNN: Our customers are telling us that we have great products, we have great plans to bring up products in the near term and they are very supportive of us and they like doing business with us.

GHARIB: So when do you see real demand coming back?

DUNN: Well, you know, I think if everybody waits for a recovery they're going to be disappointed. So we have adjusted this business model to the new sustainable level. And that's where the focus is. We will be making money at these levels. We're not going to wait for the recovery because this is a reset. It's not a trough.

GHARIB: Mr. Dunn, Nortel's stock has plunged 90 percent just this year. As the new CEO Of the company, what can you tell investors about why they should be excited about this stock?

DUNN: I'm telling, I sit down and I talk to investors all the time and I clearly say what we have coming into the marketplace is a compelling leading edge capability and we will demonstrate that in the months and quarters to come.

GHARIB: Well, there is a credibility issue, which I'm sure you are aware of, with the investment community. How are you going to change that? What's your pitch?

DUNN: Well, I think we have to be very open and honest with our employees and with all our stake holders. And that's the approach I have used and I will continue to use. And our whole senior steam has the same mindset.

GHARIB: Mr. Dunn thank you for talking to NIGHTLY BUSINESS REPORT and good luck in your new position.

DUNN: 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.

10/03/01: High Tech Gadgets Designed To Get The Nation Over Its Fear Of Flying

SUSIE GHARIB: Security has become a big concern for airlines struggling to get passengers back on planes. Congress is moving forward with a new set of security standards. And as Quinn O'Toole reports, new technologies could play an important role.

QUINN O'TOOLE, NIGHTLY BUSINESS REPORT CORRESPONDENT: The airline industry is taking the first steps to shore up security in the air and on the ground. Today, a number of carriers announced they are beginning to fortify cockpit doors with steel bars. National Guard troops are being stationed at airport checkpoints around the country. But in addition to these low tech measures, security experts are also looking at some high tech approaches to securing the nation's skies. Experts are bullish on biometrics, which uses digital technology to measure body features like hands, faces and eyes.

STEWART MANN, CEO, EYE TICKET: The iris of the eye is the single most distinct physical characteristic that you have, and as an identifier, it's unparalleled.

O'TOOLE: Before last month's attacks, Eye Ticket had already installed identification systems that use iris recognition at airports in Charlotte, North Carolina and Frankfurt, Germany. Mann says he expects after last month's tragedies many in industry and government will move more quickly to embrace new technologies like his.

MANN: I think this may cause an adjustment in timelines or an emphasis on going ahead and making decisions that perhaps didn't, they were not quite as urgent previously.

O'TOOLE: But U.S. airports already use some of the most up to date X-ray and explosive detection equipment in the world and experts warn the battle against terrorists is less about technology and more about intelligence.

SCOTT FAULKNER, FORMER FAA OFFICIAL: The sharing of information in a relevant, timely way and a better analysis of that information, and then turning that analysis into timely action. And that, a lot of the failures that led to what happened on 9-11 was that information was there, but people didn't know what they were looking at.

O'TOOLE: The Senate began debate today on a bill to bolster airline security. It would require the workers who screen passengers and bags be federal employees. It would also mandate fortified cockpits and anti-hijacking training for crews. Passage of the bill could come as early as this week. Analysts say it's likely just the first step. 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.

10/03/01: Money File- Buy Stocks & Sit Tight

SUSIE GHARIB: In the money file tonight, buying stocks for the long-term. Here's Terry Savage, author of "The Savage Truth On Money."

TERRY SAVAGE, AUTHOR, "THE SAVAGE TRUTH ON MONEY": Scared out of the stock market? I wouldn't blame you for having that reaction to the market meltdown. No longer is the stock market seen as the easy way to get rich. But the stock market is still the way to grow rich if you have the time and discipline and a basic faith in America's future. Understanding that stock market opportunity requires some perspective, though. I think these numbers from Ibbotson Research will help give you that perspective. Suppose you invested $100 in the S&P 500 stock index in 1980. By year end 2000, your account would have been worth $1,841, and that's a lot better return than investing in Treasury bills, which would have grown your $100 to only $361 by year end 2000. Now, that's the return of a buy and hold investor versus Treasury bills. But what if you were a trader? Since all traders make mistakes, what if you had missed, that has been out of the market just the best 15 months of those 20 years? Then your $100 would have grown to only $473. Trading versus buy and holding adds to your risk. Now maybe you think the '80s and '90s were an unusual period? Well think again. Ibbotson has tracked these numbers back to 1926. And in that time there has never been a 20 year period where you would have lost money investing in a diversified portfolio of America's largest company stocks. So if you believe in America's long-term future and your own, don't stop investing now. I'm Terry Savage.

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.

10/03/01: Paul Kangas' Wall Street Wrap Up

JEFF YASTINE: Well, it was quite a day for the markets as buyers come off the sidelines. That proposed fiscal stimulus package, the Fed's rate cut yesterday and some new economic data, all adding up to another positive day for the major averages, a very positive day indeed. The Dow Industrial Average starting lower on the day, but buyers quickly stepped up to the plate cheered by President Bush's economic stimulus plan, and some new data which seemed to show activity in the service side of the economy wasn't as bad as many had feared. We'll have more on that in a moment. Decliners outnumbered advancers on the New York exchange by a narrow margin on heavy volume. And by noontime, the Dow Industrial Average was up 100 points. In early afternoon trading, the tech stocks came in for some buying as well. Even the big cap chip stocks like Intel (INTC), which lately have had no friends, moved higher. The sector was boosted by news Cisco Systems (CSCO) was comfortable with its first quarter profit forecasts. In late trading, market breadth continued to improve and the bulls took charge. By the closing bell the Dow soaring 173 points or nearly 2 percent closing at 9123 and the tech-laden NASDAQ Composite surging 88 1/2 points or about 6 percent to 1580.81. Volume over 1.6 billion shares exchanging hands. Up volume alone topping yesterday's overall volume. Transports gaining 52 1/2.

Utilities jumping nearly 10.

The Closing Tick bullish at +628.

In the broader market, the computer networking, semiconductor makers and home building sectors all enjoying hefty gains in helping the S&P 500 shoot up nearly 21 points.

The S&P 100 up 11.

The MidCap 400 up nearly 13.

And the CRB Bridge Futures Price Index with a fractional gain there.

The New York Stock Exchange Composite rising more than 7.

The Value Line up over 9 1/2.

The Small Caps gaining nearly 11 1/2.

And the broadly based Wilshire 5000 up 213 points.

Well, the bond market moved higher today and was skeptical about this morning's purchasing managers report on non-manufacturing activity. That was part of what drove equities higher today and the data for September showed a gain to 50.2. Economists were expecting a much weaker reading of 43. Usually that's bad news for bonds, since there wouldn't be much reason for further rate cuts by the Fed. But bond market participants aren't sure how much the September 11 attacks are reflected in the data and many are expecting this Friday's employment report to be quite negative as well, so they're betting that there's still more economic weakness in store.

So corporate and tax-free issues were higher on the day, and so were Treasuries.

The 5-year note gaining 3/32.

The 10-year gaining 10/32.

And the 30-year bond gaining 12/32.

The Lehman Brothers Long Bond Index rather rising 5 points.

Well, Eli Lilly's stock didn't do too well today, it fell $3.62 to $79.25. The rest of the market, though, moving sharply higher, the Dow gaining 173 points, building up a nice head of steam. 9123 was the closing price there. The advancers outpacing decliners by an easy 2 to 1 margin. 92 issues up for every 89 down.

EMC (EMC) topping the active list, 36 million shares. EMC not being able to catch a bid in recent days, but there's more interest now with Cisco Systems (CSCO) confirming its ability to meet first quarter estimates, the stock rising $0.91.

Nortel (NT) rising a $0.25.

Nokia (NOK) advancing $0.89.

Meanwhile, GE (GE) climbing a $0.10 on the day. It's risen nearly 30 percent in about two week's time.

Qwest Communications (Q) ended up $1.60.

Texas Instruments (TXN) jumping more than $2, reversing a loss yesterday, and all of the chip stocks came to life today.

Motorola (MOT) edged up $0.12.

Citigroup rising $1.23. ABN Amro started coverage today, calling the firm the most profitable financial company in the world. It said the stock was trading at a 45 percent discount to its peers.

Lucent (LU) ended up $0.38 higher.

Compaq Computer (CPQ) picked up $0.49. Lehman Brothers cut estimates on that stock today.

Among the widely helds, shares in Best Buy (BBY) climbing $3.70. It's among the electronic retailers benefiting from the second leg of President Bush's initiative to stimulate the economy.

A new day for shares of Canadian Pacific Railway (CP). The stock was up $0.95. Four spin-off firms, Fording, Fairmount Hotels , C.P. Shipps and Pan-Canadian Energy, all started trading alongside the parent today.

Delta Air (DAL) shooting up more than $2.25, helping the Dow Transports.

Edison International (EIX) and PSO Cal Edison (ph) reached a deal with California regulators to keep the company out of bankruptcy. The utilities will, the utility, rather, will pay its $3 billion debt with current rate increases and it will not pay out a dividend until 2003 unless the debt is paid off before then.

Home Depot (HD) jumping $1.78. The retailer announcing plans to acquire a plumbing distributor called Your Other Warehouse-that's the name-for undisclosed terms.

And IBM (IBM) rising $3.18.

On the plus side, Williams-Sonoma (WSM) rising nearly $5. The retailer confirming its ability to meet third quarter earnings targets of $0.05 to $0.07 a share with lower sales.

Ace Limited (ACE) surged nearly $5.50. Salomon Smith Barney raising estimates there following an upbeat analysts meeting in Bermuda.

PG&E (PCG) rising $2.50 in sympathy with Edison today.

Armor Holdings (AH) rising $3.40. The company got a mention in "Investors Business Daily" yesterday. It makes law enforcement security products and also does armoring for the military's humvee vehicles.

Winnebago (WGO) riding high, riding more than $3 higher. The motor home manufacturer posting record fourth quarter earnings of $0.52 a share. That's a 40 percent gain over last year's period.

Conseco (CNC ) falling $1.39. The company announcing plans to take a nearly $500 million charge in the third quarter and it remains cautious about fourth and first quarter results.

The NASDAQ popping 88 1/2 points to the up side, a nearly 6 percent gain. Volume, 2.7 billion shares. That's a billion above yesterday. Two stocks up for every one lower.

And it was sort of like the good old days here, Microsoft (MSFT) rising more than $3.

Cisco Systems (CSCO) taking the limelight, jumping nearly $2.50. John Chambers confident the company will meet earnings estimates.

Intel (INTC) gaining $1.69.

QUALCOMM (QCOM), though, missing out on the moves, losing $1.06.

Dell Computer (DELL) gaining $2.10.

Oracle (ORCL) advanced $1.06.

Applied Materials (AMAT) picki