SUSIE GHARIB: Wall Street struggled with a mixture of good and bad news today. Another round of earnings warnings, plus a report showing that the job market suffered its worst monthly decline in more than decade. Meanwhile, President Bush urged Congress to push through a multi-billion dollar economic stimulus package. That gave the stock market a late day boost. The Dow rose 58 points, and the NASDAQ added eight. We have two reports this evening. We begin with Suzanne Pratt in New York.

SUZANNE PRATT, NIGHTLY BUSINESS REPORT CORRESPONDENT: Even before last month's terrorist attacks, the US job market was already under intense pressure. According to the Labor Department, businesses slashed 199,000 jobs from payrolls in September. That was nearly double what Wall Street expected and followed a revised loss of 84,000 positions in August. As for the unemployment rate, it managed to hold steady at 4.9 percent in September. Most economists agree conditions in the labor market are consistent with an economy that's contracting.

RICHARD BERNER, CHIEF US ECONOMIST, MORGAN STANLEY: This is a weak employment report. And to me, it says that the economy really was in recession prior to the tragic attacks on the World Trade Center on September 11.

PRATT: Although some of the polling for the latest jobs report took place in days following the attacks, the government said people had yet to lose their jobs at that point. As a result, the September data captured few if any of the thousands of layoffs in airline and related industries that occurred later in the month.

JOSHUA FEINMAN, CHIEF ECONOMIST, DEUTSCHE ASSET MANAGEMENT: There had not yet been enough time elapsed from the terrorist attacks to when this report was sampled to have had a major impact on the employment picture.

PRATT: So economists say the October employment report will reflect job cuts directly and indirectly tied to the terrorist attacks. And many are concerned that worries about the labor market are causing American consumers to severely cut back on spending, pushing the economy deeper into recession.

FEINMAN: The length and the magnitude of time that the economy is in this contraction is going to depend, in large part, on when that uncertainty and fear starts to lift. And that is predicated to a great extent on the geopolitical, military response.

PRATT: At least for the balance of this year, economists predict job cuts will accelerate even further. At the same time, many expect the nation's unemployment rate will rise to as high as 5.5 percent. 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.

10/05/01: The President's Plan Targets Taxes

DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: This is Darren Gersh in Washington. With Congress rushing forward to draft a stimulus package, the president today laid down his marker. In the aftermath of September 11, Mr. Bush pointed out some $60 billion in new spending has already been approved.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: In order to stimulate the economy, Congress doesn't need to spend any more money. What they need to do is to cut taxes.

GERSH: The president has already said he wants an economic stimulus package of $60-$75 billion for 2002. Today, he said at least $60 billion of that should go to tax cuts. Topping his list of priorities, the president urged Congress to speed up the income tax cuts he has already signed into law; those rate reductions now phase in over five years. The president also wants to eliminate the corporate alternative minimum tax, and enhance expensing for new equipment. Democrats argue a stimulus package should help the 30 million low income workers who did not get income tax rebate checks this fall. Mr. Bush agreed.

BUSH: The American people expect us to act, and here's a way for us to act.

GERSH: Still, some key Democrats say the best way to revive the economy is to increase spending on roads, bridges and trains, but that idea infuriates the president's conservative allies on Capitol Hill who say it would not help the economy. Now analysts say the president is using his sky-high post-attack approval ratings to push through tax cuts.

NANCY ROMAN, POLITICAL ANALYST, G-7 GROUP: I don't think this indicates that there is no compromise going forward. I just think it makes the mountain a lot steeper to climb for the Democrats.

GERSH: But even if Congress passes a stimulus package quickly, Treasury Secretary Paul O'Neill cautioned not to expect it will immediately put people back to work. O'Neill predicts that when the October unemployment report is released, the unemployment rate will be higher. 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.

10/05/01: The Skills Involved In Finding A Job

JEFF YASTINE: As we've said, today's employment numbers show layoffs are on the rise. The hard hit group is younger workers in their '20s and early '30s. After a decade of economic expansion, this is the first dramatic downturn that many have experienced in their adult working life. Job fairs like this one have taken on a lot more importance recently for younger workers, and for many it's something of a new experience. Jobs have been plentiful for a decade and those with the right skills could find the job they needed when they needed it. That's not the case any longer for 30-year-old unemployed network engineer John Boesen.

JOHN BOESEN, JOB HUNTER: You know, online newspaper, placement services and I've had about three interviews in three months. And I'm just not getting much feedback. I'm a highly trained network engineer and I never had a problem finding work. So it's a little distressing.

YASTINE: Others are recent college graduates who've watched the economy roar along as they sought their degree but now find no takers for their skills. Lauren Hartog finished college in December.

LAUREN HARTOG, JOB HUNTER: Right before I graduated I was getting more interviews. I had more opportunities. And then I'd say about six months ago the opportunities just stopped coming. They were far and few in between.

YASTINE: Economists estimate the number of jobless in their early 20's to mid 30's makes up about a quarter of the 4.9 percent of the nation's unemployed, roughly two million workers in all. There is a bright spot, though, according to demographic economists.

ROBERT LEWIS, PRESIDENT, DEVELOPMENT STRATEGIES: I think this particular, particularly the younger part of the labor force is a group that is more accustomed to moving from job to job, to being light on their feet, to shifting from company to company. So they're not going to be as frightened by, as a generation, that is, frightened by the need to find other work.

YASTINE: But that doesn't pay the bills for now for people like Delia Torres, whose travel industry employer went broke last week.

DELIA TORRES, JOB HUNTER: I'm looking for a job, I mean, actively seeking employment. And its been kind of rough for the past week. So it's only been a week that I've been unemployed, but I can tell the job market is a lot different than what it was when I was last looking for a job.

YASTINE: Which was when?

TORRES: About two years ago.

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.

10/05/01: Market Monitor-Abby Joseph Cohen, Chair of the Investment Policy Committee at Goldman Sachs

SUSIE GHARIB: Our market monitor guest said today that she expects the S&P 500 to rise as much as 33 percent by the end of 2002. We're happy to have with us Abby Joseph Cohen, Chair of the Investment Policy Committee at Goldman Sachs. Hello, Abby. Nice to have you with us.

ABBY JOSEPH COHEN, CHIEF MARKET STRATEGIST, GOLDMAN SACHS: Thank you, Susie.

GHARIB: Since the September 11 terrorist attacks, you have told clients to raise their stock holdings 75 percent of their portfolio and then today you adjusted your outlook on the S&P outlook. Tell us a little bit about your thinking about the markets.

COHEN: A week and a half ago, Susie, with the S&P 500 at 965 and the Dow at 8,200, we thought that the stock market was notably under valued and in that environment we suggested that investors raise their exposure to the stock market. What we did today was really more mechanical than anything else. We extended out our forecast. It previously had gone through September 2002 and the price targets we gave to our clients today are for December 2002. But the message is the same and that is we think there will be severe disruptions to the economy and corporate profits short-term. But by the middle of 2002, we think the economy will be closer to trend growth both for GDP and corporate profits.

GHARIB: As for the stock market, we've seen a tug war, some rallies, some sell-offs. o you think that the worst of the selling is over?

COHEN: Our work would indicate that the worst of the selling may be over if, in fact, we are spared from additional terrorist activity on our own soil. I'm not a defense expert. I try to look at economic data. And we believe that with the Dow at 8,200, an extraordinarily ugly economic scenario was already priced in at those levels. We don't think it could get worse than that.

GHARIB: And yet we still get these earnings announcements every day. Sun Microsystems (SUNW), Gateway (GTW) today. And it's very difficult for investors to feel comfortable about putting new money into the stock market. What do you say to that?

COHEN: We have been presuming for a while that the third and fourth quarter numbers would be ugly. And what September 11 means is that the fourth quarter will be even uglier than we had expected. But we think at current stock prices that is already largely reflected. Keep in mind that most investors, but not all, but most equity investors ought to be thinking about the next few weeks and months, not really so much should be focusing instead on what happens six, 12 and 18 months out. We think that profit growth will be returning to a trend level of about seven to eight percent rather than the declines that we're experiencing right now.

GHARIB: When do you see profits turning around?

COHEN: We think mid year 2002 is a good guess. Obviously it will vary dramatically by sector. There are some sectors in the United States that have been in profit correction for almost two years now and they may be close to the end of their problems. Others will take longer to recover.

GHARIB: Let's talk a little bit about the sectors. You've been telling your clients stand up, it's time to buy stock. What are the sectors that you find most attractive right now?

COHEN: Well, in the first phase of rebuilding portfolios many investors are looking at what they consider to be defensive names. We think, however, that those with a longer term investment horizon ought to be thinking a little more aggressively, adding some beta to the portfolio, adding some economic sensitive to the portfolio. This would include technology stocks. It would include some stocks with economic sensitivity and it would also include Small and Mid Cap stocks.

GHARIB: Abby, can you be a little bit more specific within technology, within the economically sensitive areas?

COHEN: Within technology, we think that there's been an awful lot that has changed over the past two to four weeks. In some categories, for example, excess inventories have disappeared because of the destruction on the 11th of September and the subsequent rebuilding process. In addition, we're hearing from some of the companies that demand remains good for some forms of PCs, telecom equipment and semiconductors. So we are being very selective but we do see opportunities within that sector.

GHARIB: We really appreciate you talking to NIGHTLY BUSINESS REPORT. Thank you so much, Abby.

COHEN: Thank you.

GHARIB: And we've been speaking with Abby Joseph Cohen of Goldman Sachs.

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.

10/05/01: Paul Kangas' Wall Street Wrap Up

JEFF YASTINE: Well, today's employment report put some fear back in the Indexes this morning, but as Darren Gersh pointed out, President Bush's comments this afternoon put the bulls back in charge for the day. The Dow Jones Industrial Average starting on that down note, falling about 100 points in the first hour of trading, the early reaction to the employment data. Decliners were outpacing advancers by a 2-1 margin, but then bargain hunters stepped in, buying on that bad news, and by noontime, the Dow cut its opening losses to about 45 points. In afternoon trading, the NASDAQ continued to make up lost ground, no shortage of bullishness there despite Sun Micro (SUNW) issuing yet another earnings warning this morning. And Intel (INTC), Microsoft (MSFT), even Cisco Systems (CSC), all found buyers. But in late trading, it looked as if the indices would drift lower into the close, but buyers emerged after President Bush urged rapid approval of the stimulus plan, and the Dow spurted 60 points in the final half-hour, closing the day with a gain of 58.89 points at 9,119. This week, the Dow rose three times and fell twice for a net overall gain of 272 points. That's about a 3 percent gain. The NASDAQ ended up nearly eight points on the day at 1605. This week the Index fell once and rose in the last four sessions for a gain of 106 1/2 points. That's about a 7 percent gain.

Volume weighing in a touch below 1.3 billion shares.

It's down just over 280 million shares from yesterday.

Up and down volume almost evenly spit, split rather.

Transports slipping 1 1/2 points.

Utilities up 2 1/2.

The Closing Tick bullish at +629.

In the broader market, the S&P 500 and 100 each edging a fraction higher.

The MidCap ended own about 2.8.

And the CRB falling about 1 point.

The New York Stock Exchange Composite Index slipping a fraction.

As did the Value Line.

The Small Caps falling just over 2 points.

And the Wilshire 5000 gaining nearly 3 points.

Bonds finished somewhat weaker as traders took profits after this morning's weak employment data and the session closed early, 2 p.m. for this Monday's Columbus Day events. That September jobs report was bullish for bonds but it was offset by expectations that the Treasury will sell a supply of 5-year notes into the market sometime next week to add more liquidity. It sold about $6 billion in

10-year notes yesterday and that extra supply is taking a little of the starch out of Treasury prices the last couple days.

So tax free and corporate issues were unchanged and Treasuries were mostly lower.

The 5-year notes was unchanged.

The 10-year note lost 1/32.

And the 30-year bond falling about 5/32.

The Lehman Brothers Long Bond Index gaining about 2 2/3 points.

And one side effect to the rising unemployment among younger workers: defaults on credit cards and loans. Well, the blue chips holding on nicely and closing out the week this Friday with a nice up day, up nearly 60 points, a 58.8 point gain. The advance/decline ratio settling in a dead heat, 46 issues setting new highs, 62 new lows.

EMC (EMC) winding out the week as the volume leader, rising $0.65.

GE (GE) a fractional gainer.

Citigroup falling $0.52.

U.S. Bancorp (USB) ending off $3.50. It's increasing its loan loss provisions. It had a loan portfolio with exposure to the airlines and manufacturing, transportation, as well, and it will likely miss third quarter estimates, as well.

Compaq (CPQ) slipping a $0.01 on the day.

Lucent Technologies (LU) rising $0.29.

AOL Time Warner (AOL) falling that much.

AT&T (T) dropping $0.78. The telecom giant wants to sell nearly $2 billion in Cable Vision New York Class A shares.

AT&T Wireless (AWE) advancing about a $1.

And Pfizer (PFE) gaining $0.77 on the day.

Among the widely helds, Advanced Micro (AMD) falling $0.40. Sales were off 22 percent from last year. The price war with Intel also taking its toll. Its forecasting a third quarter loss of up to $0.31 a share.

AFLAC (AFL) falling $1.80. That's on news premium sales in Japan have not shown much improvement there.

Bank of America (BAC) finishing off $2.75.

Cablevision Systems (CVC) tumbling nearly $5. Slumping ad revenues following the September attacks will hurt cash flow growth about one to two percent and it's also canceling plans for a convertible preferred stock offering.

Genentech (DNA) down $1.64. The FDA is requesting more tests of its experimental psoriasis drug Zanelim and that will delay the approval process for that one.

Morgan Stanley (MWD) losing $1.52. The financial powerhouse reportedly mulling the sale of its 33 floor office building in Times Square.

Universal Compression (UCO) jumping more than $3. The company gave an upbeat presentation at an investment conference today and reaffirmed it will meet second quarter targets.

Symbol Technology (SBL) gaining $1.47. The company says it's comfortable with third quarter earnings of about $0.05 a share. Revenues will be a little bit late, though.

Shares of Actuant (ATU) climbing $2.60, and that's after a 25 percent jump yesterday in response to stronger than expected fourth quarter profits. Goldman Sachs upgrading that one.

Celltech Group (CLL) gaining $1.55. There's speculation that Celltech may resume merger talks with Biogen (BGEN).

Broadwing (BRW) falling $1.76. J.P. Morgan downgrading the stock, also cutting this year's and next year's profit estimates.

And Northwest Natural Gas (NWN) dropping $2.58. The company wants to buy Enron's (ENE) Portland General Electric Company for about cash and stock, about $1.8 billion there.

The Nasdaq Composite ending on an up note, rising about 8 points at 1605. That's just 90 points below its pre-attack level. That was $16.95. Volume tapering off from yesterday, 288 more issues down than up.

Microsoft (MSFT) rising $1.28 on the day.

QUALCOMM (QCOM) continuing to fall, though. Back in August, these shares were trading in the mid-60s.

Cisco Systems (CSCO) gaining $0.52.

Intel (INTC) gaining $0.41.

Sun Micro (SUNW) gaining $0.58 and that's despite issuing another profit warning. Revenues will be about 18 percent off expectations and also Wall Street was expecting a loss of $0.03. Some said it's likely to lose about $0.05 to $0.07.

Dell