SUSIE GHARIB: Confidence slipped on Wall Street today: Blue chip stocks fell sharply following disappointing news about consumer confidence. The Dow lost 110 points, and the NASDAQ slipped 5. Consumer confidence fell to 82.2 in November from a revised 85.3 last month. The unexpected decline helped spark a rally in the bond market partly because gloomy news on the economy could mean more rate cuts by the Federal Reserve. As Erika Miller reports, it was the bond market's first big rally in weeks.

ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: The bond market's sharp retreat over the past few weeks has stunned many investors. Even professionals are struggling to explain why Treasury prices have fallen so sharply since the first week in November.

JOSEPH PORTERA, BOND FUND MANAGER, MACKAY SHIELDS: I've been doing this for close to 18 years; the last time I saw rates drop as much as this was the crash in '87, when the Fed came in and on that Monday and there was a tremendous amount of short covering that took place.

MILLER: The price of the benchmark 10-year note is now at a level not seen since August. And the yield, which moves in the opposite direction of price, is now hovering near 5 percent. Some analysts say new optimism about the economy is changing expectations for Fed policy. In particular, they point to the rebound in October retail sales data.

JOHN RYDING, SR. ECONOMIST, BEAR STEARNS: That had people starting to think that maybe the bottom in the recession might not be so far away. Maybe the Fed would not cut rates as much as much as people previously thought. Maybe even start to increase rates.

MILLER: And experts say that's helped make stocks a more attractive investment. The Dow Jones Industrial Average has rallied 20 percent from its late September lows on hopes for economic recovery next year as well as signs of progress in the war against terrorism.

PORTERA: The war in Afghanistan is going a lot better than people thought it was even two weeks ago. So there's been a relief I think to some extent in the United States that we're not going to be in this protracted war in Afghanistan.

MILLER: Most analysts say the bond market sell-off has been overdone. They predict prices will stabilize near current levels until there is better indication about the pace of economic recovery. Erika Miller, "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.

11/27/01: Senate Majority Whip Harry Reid Talks Economic Stimulus

SUSIE GHARIB: Pressure continues to build for an economic stimulus package. President Bush will be meeting with Congressional leaders at the White House tomorrow and he's expected to press them to pass a package before the Christmas recess. Here to talk about the outlook is Senator Harry Reid. He's the majority whip in the Senate. And he joins us live from Capitol Hill. Senator, it's a real pleasure to have you on the program.

SEN. HARRY REID, MAJORITY WHIP: My pleasure.

GHARIB: Everybody I talk to on Wall Street is pretty much counting on a recovery in the economy in the second half of next year, because they say Washington is going to deliver on an economic stimulus package. And that's one of the reasons why we've seen the stock market recently do much better. Can you reassure investors that there actually is going to be an economic stimulus package?

REID: I just returned from the Thanksgiving break, from Nevada. The people of Nevada are concerned, they're concerned about their own economic security, but they're also very, very concerned about their private security and national security. Those all come together in what I think we need to do right away. Of course we need a stimulus package. But we don't need one six months from now, we need it immediately. And that's what we're trying to work out on the Senate floor as we speak, literally. There are meetings going on now to see if we can work out something. We really need to. The problem we have, as I see it, is we have a bill that came from the House that is just a little more of what we don't need. And that is more tax cuts to help the very wealthy corporations. For example, some corporations would receive tax benefits of over a billion dollars, in effect what they would be getting back is the taxes - they paid the minimum taxes they paid over the last 12 or 13 years, we don't need that. What we need to do is to do some things that are going to help business people create jobs and also make us more secure.

GHARIB: Well, there are obviously differences on both sides. What is it going to take to break the deadlock?

REID: I think that we should approach this like we do every other piece of legislation. We reported a bill out of the Finance Committee that has some very good measures in it, we believe. The Republicans have their package. I think we should sit down and talk about the two of them. What we have found, though, is they're not willing to do that. They're not willing to do anything that deals with homeland security. What does that mean? It means whether we're going to have bioterrorism security in this country, transportation security, whether we're going to have our computer systems that are secure. We want also to have this as part of our economic recovery package, because we're talking about many there dollars that will go into immediate stimulation of the economy.

GHARIB: Well, actually, I've heard that the White House is not willing to accept a package that has infrastructure spending and also home line defense spending. Would you be willing to accept a stimulus package that didn't have those elements?

REID: Well, remember, we have a unique government around here. The president doesn't determine what we do all the time. We have three separate but equal branches of government. We're the legislative branch of government and we have some say. The president doesn't have to agree with what we want. But what we want is something that is important to this country, and we believe the president, the White House, should sit down and talk to us about this. They're unwilling to do that and that's a nonstarter because…

GHARIB: Well, let me ask you this in terms of some of the politics here. There are some political analysts who are saying that the Democrats would like to see this whole stimulus package fall apart, because then when the next round of elections come the voters will blame the Republicans.

REID: Well, I think whoever says that is not only do they not know what they're talking about, but they're foolish. Because if we do good things back here, as we have done -- we've worked together on a bipartisan basis. The President's ratings are real high, Congress' rating are real high. We have to work together. We're not going to get a stimulus package unless we work together.

GHARIB: Do you think we'll have a stimulus package before Christmas, real quickly?

REID: We have to have one before Christmas. It's important to this economy.

GHARIB: OK.

REID: We're going to do everything we can to make sure we do.

GHARIB: All right, we appreciate you talking to NIGHTLY BUSINESS REPORT, Senator Reid. And we have been speaking with Senator Harry Reid, the Majority Whip in the Senate, live from Capitol Hill.

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.

11/27/01: No Small Change-The Euro Switch

SUSIE GHARIB: Just 34 days until January 1st, so-called E Day for 12 countries in Western Europe making the switch to the new Euro currency. It's an unprecedented event 10 years in the planning with a $10 billion price tag. And the logistics are staggering. Germany alone has to collect and get rid of more than two and a half billion Deutschemark bank notes. Tonight, we begin a three part series on the Euro called No Small Change. Paul Miller looks at how 300 million Europeans will handle the Euro switch.

PAUL MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: The Auteuil antique show is one of the best and priciest in Paris. This year there is more interest than usual. People are beating the changeover to the Euro by using francs, especially those they never declared as income, to buy items of value.

ERIC CHANEY, ECONOMIST, MORGAN STANLEY: A lot of people are spending the money right now just to avoid showing the bank notes in the bank. They are suspicious that maybe the tax administration will do something about that. And we see to some extent a strong consumer spending in Europe, especially for luxury goods.

MILLER: It's one of the unexpected consequences of a currency switch involving 12 countries and 300 million people. The exchange of money begins January 1st and is supposed to be completed by the end of February. Millions of notes and coins have already been distributed to banks. On December 17th, people can buy a few Euro coins, but they won't see the bills until the first of the year.

UNIDENTIFIED ACTOR: The shiny hologram shows the value.

MILLER: Advertisements have tried to familiarize people with the Euro's security features and with its value relative to the old currency. But sometimes the computations seem a bit off. Prices in Euros, which are now supposed to be more prominently displayed, are often significantly higher than prices in old currencies a few months ago. People are complaining of price gouging, not price conversion.

CHANEY: We have found that maybe inflation accelerated by as much as half a percentage point, because of this conversion. So I mean it's not a 100 percent certainty. But there a lot of negative evidences that during the conversion some prices went down, some prices went up, but more prices went up than down.

MILLER: Governments are checking prices and threatening action against gougers. The price increases have contributed to a wariness about the Euro, especially in Germany. According to opinion polls, only about 50 percent of the people here in Germany want the Euro. They like their Deutschmarks. One reason, is that Germans use credit cards less than many Europeans, so if there are problems with Euro notes and coins, Germans will experience them. The main concern is counterfeit Euros. Peter Walter, the head cashier at the German national bank, the Bundesbank, keeps one set of seven Euro notes in a safe in his office. The idea is that the fewer people who have the notes before January 1st, the less the chance of possible counterfeit. Most people will only see the notes on TV.

PETER WALTER, HEAD CASHIER, BUNDESBANK: They're doing quite a lot to make the security features familiar. We hope, of course, that when the Euro is introduced, people are enough familiar with the security features that they can distinguish a Euro bank note from counterfeit.

MILLER: Some law enforcement authorities think organized crime may try to pass as much as $300 billion worth of phony Euros during the two month transition period when people are relatively unfamiliar with the real thing. Money launderers and thieves are expected to be busy, as well. At the least, all that will add to the expected confusion and delays of the first few days, as people figure out what they have and what it's worth. Paul Miller, NIGHTLY BUSINESS REPORT, Frankfurt.

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.

11/27/01: Commentary: Exercising Restraint Amid A Recession

SUSIE GHARIB: Are you among the millions of Americans who have lost their jobs in recent months, laid off or fired? Well, tonight's commentator has some suggestions if you are, or even if you aren't. Here's Suzy Wetlaufer, Editor of the "Harvard Business Review."

SUZY WETLAUFER, COMMENTARY: Well, Thanksgiving is over and we're now officially in the mad dash toward Christmas, which, if you recall, involved tons of frenzied shopping last year. I don't know about you, but this year I'm talking to my kids about one gift per person. And you know what? Even they seem to understand that fiscal restraint is necessary right now. The reason is not so much the war, but the layoffs. They're everywhere, or at least they seem to be. Even if you haven't been affected, you can't help but feel the threat. Now, you could fill a two car garage with advice for companies on how to fire people the right way, humanely and with minimal legal risk. But much less has been said about how to get fired right so that you land on your feet and better yet hit the ground running. But the fact is with so many struggling companies supplying only minimal severance packages, when you get laid off nowadays, you own the problem. OK, what does that mean? Basically, it means not taking your layoff personally, not going ballistic in person or via email. It also means not falling into two common traps: losing your identity when you lose your job or feeling as if you have lost your family. The reactions, as human and natural as they are, will jeopardize your efforts to get a new job at a time when you can least afford any obstacle in your way. I hope this is advice you never have to heed, but for better or worse, getting fired right is just another thing Americans need to learn to do well in this brave and ever changing, new world. I'm Suzy Wetlaufer.

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.

11/27/01: Paul Kangas' Wall Street Wrap Up

PAUL KANGAS: Stocks on Wall Street began the day in slightly lower ground, partly in negative reaction to a $2 per share drop in Nokia (NOK) stock after the cellular phone giant lowered it's industry sales estimate for this year. At 10:00 a.m., the Dow Industrial Average posted a 47 point loss, NASDAQ Index down 6 points. With that report of a bigger than expected drop in consumer confidence, the market's mild early decline turned into a steep sell-off as many investors' hopes were dashed for a recovery in the economy early next year. At 11:00 a.m., the Dow fell to a 143-point, or 1.4 percent, loss and the NASDAQ Index was down 36 points, or 1.9 percent. With the help of continuing demand for tech stocks, the market improved steadily throughout most of the afternoon with the Dow cutting its loss to only 33 points at 2:00 p.m., while the NASDAQ moved to an 18-point gain. Then a late spurt of selling however sent the Dow Industrial Average to a closing loss of 110.15 points, or 1.1 percent, putting it at 9,872.60. The NASDAQ Index fell just a modest 5.26 putting it at 1935.97.

Big board volume perked up considerably to 1.3 billion shares and about a 7 to 5 ratio of down volume over up volume.

The Dow Transport Index down just over 16 ½ points.

But the Utilities Index gained 1.22.

The Closing Tick modestly bullish at +391.

Standard & Poor's 500 fell nearly 8 points.

Almost a 5 1/2-point drop on the 100.

The MidCap 400 off only 0.20.

Bridge Futures Price Index rose 0.70.

A loss of 3 2/3 points on the New York Composite.

The Value Line down just about 1/2 point.

A little over 1/2-point loss on the Russell2000 Small Cap Index.

And the Wilshire 5000 dropped 56 3/4 points.

The bond market snapped a three-week downturn with an overdue technical rally, which was enhanced by that drop in consumer confidence. And Fed Governor Laurence Meyer, who suggested rates should go still lower. The report of a 5.5 percent rise in October existing home sales had little impact as tax free and corporate issues rose 3/8 to 5/8 of a point while the Treasury market also did quite well.

The 5-year notes jumping 17/32.

The 10-year notes up 22/32.

The 30-year bond rose 21/32.

And the Lehman Brothers Long-Term Treasury Bond Index was up 4.86.

Let's have a look at the Dow, down 110 points, or 1.1 percent. The broader market lower by a 17 to 14 margin and yet 80 new yearly highs, only 24 new lows.

Enron (ENE) topped the active list on nearly 40 million shares, edging up $0.13. The company reportedly still negotiating about a merger with Dynegy (DYN), but at a much lower price, some say as much as 40 percent lower than the original.

EMC (EMC) up one full $1. Positive mention by Merrill Lynch today helped that stock.

And Nokia (NOK) closing down $1.52 after trading as low as $23.20. As I mentioned, the company cut its cellular phone industry sales estimate for this year, but it was much more upbeat about next year and the year after. And, of course, the stock vulnerable to profit taking. It has doubled in the last month or so.

AT&T Wireless (AWE) moved up $0.02.

AOL Time Warner (AOL) down $0.61, fifth in volume.

The Nasdaq Qs (QQQ) a $0.05 loss there.

ExxonMobil (XOM) down $0.42 even though oil futures were up about $0.80 in New York.

NorTel Networks (NT) dropped $0.11.

Lucent Technologies (LU) a $0.15 drop.

And Compaq Computer (CPQ), tenth in volume, lost $0.42 per share.

Fairmont Hotels (FHR) moved up $0.94 after the Goldman Sachs brokerage added it to the "recommended" list.

IBM (IBM) down $2.13. A little weakness in Big Blue. No specific news.

K Mart (KM) lost $0.47. Third quarter results excluding restructuring charges, a loss of $0.25 a share for K Mart. That was $0.02 better than expected, however. But it was well up from last year's $0.14 per share loss and A.G. Edwards Brokerage issued a "sell" on K Mart today.

Phillips Petroleum (P) moving up $0.60. Alex Brown Brokerage issued a "buy" and sees tomorrow's meeting with analysts as a potential positive for the stock.

Scientific-Atlanta (SFA) up $1.86. Baring's this week had positive remarks about it.

And then Vimpel-Com (VIP) down $2.02. Third quarter results in, $0.32 in earnings versus a loss of $0.14 in the same period a year ago. But the stock has had quite a run-up in the last month. It has gained about 10 points. So it was vulnerable to profit taking.

Sierra Health (SIE) gained $1.10 a share. A spokesman told us several large institutional "buy" riders were executed today.

Four Seasons (FS) up $3.58. Goldman Sachs did turn positive on the lodging industry and so here's another stock that did well.

Petro Geo-Services (PGO) up $1.03 on news it's going to merge with Veritas DGC (VTS). Shareholders of Petro will get .47 shares of the new company and Veritas shareholders will get one share for each share of Veritas that they own. The stock dropped $1.58.

Genesco (GCO), the manufacturer of shoes, down $4.40. Third quarter earnings $0.33 versus $0.36 last year, a little better than expected, but the company is projecting lower than expected results for 2002 and 2003. And the Dresdner Kleinward Brokerage (ph) downgraded the stock from "buy" to "hold."

Men's Warehouse (MW) belted for a $2.79 loss. Third quarter earnings down $0.77 to only $0.10 a share versus $0.40 last year. The company also lowered its expectations for the rest of this year.

Nasdaq trading, a 5 1/4 point loss in the Index after being down about 30 in early trading. Volume heavy, 2.13 billion shares, and 18 stocks down for every 17 higher.

Microsoft (MSFT), there you see it, down $1.40, topped the active list.

Followed by Intel (INTC), up $0.44. The company is confident it'll meet fourth quarte