Program: Thursday, September 4, 2003

Wal-Mart & Other Retailers Have Plenty To Smile About
FirstEnergy Gets Grilled On Capitol Hill Over The Big Blackout
Porter Bibb Of Media Tech Capital Partners On The Outlook For Media Ownership Rules
Commentary: Forecasting The Future By Looking To The Past
Lowe's Looks To Score New Customers With A Music Number
Paul Kangas' Stocks In The News
Market Stats

09/04/03: Wal-Mart & Other Retailers Have Plenty To Smile About

SUSIE GHARIB:August was a surprisingly strong month for many retailers. Consumers rushed to buy summer clearance items and stock up on supplies for the back to school season. Wal-Mart (WMT) was one of the big winners, reporting a nearly seven percent rise in same store sales. Target (TGT) reported an increase of almost six percent. Many large department chains like Sears (S) also posted bigger than expected gains. Sales at The Gap (GPS) rose four percent, but that was less than expected. Retailers say tax rebates and generally warm weather encouraged people to go shopping. Experts predict retail sales will continue to improve.

CHRISTINE AUGUSTINE, RETAIL ANALYST, BEAR STEARNS: We are cautiously optimistic for the second half. And I do expect the discounters to still do better than the department stores, generally speaking. But I think we are at least starting to see some stabilization of trends at department stores.

KANGAS: Experts say the pick up in retail sales will depend largely on how quickly the economy and job markets improve. They are hoping tomorrow's employment report will confirm that the recovery is progressing.

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. Copyright (c) 2003 Community Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.

09/04/03: FirstEnergy Gets Grilled On Capitol Hill Over The Big Blackout

PAUL KANGAS: It was day two of hearings on Capitol Hill into the cause of the blackout of 2003. The House Energy and Commerce Committee turned its attention today to the role of the utility companies. And as Stephanie Woods reports, for Ohio's FirstEnergy (FE), it was a day in the hot seat.

STEPHANIE WOODS, NIGHTLY BUSINESS REPORT CORRESPONDENT: The CEO of FirstEnergy defended his company, saying it alone was not responsible for the blackout of 2003.

PETER BURG, CHAIRMAN & CEO, FIRSTENERGY CORP.: Based upon what we know today, FirstEnergy believes that the August 14 outage could only be the result of a combination of events that occurred across the Eastern interconnection.

WOODS: The Midwest independent transmission system operator that controls the regional grid first identified problems in the early afternoon. Transcripts of telephone conversations between the system operator and utilities, released by the Energy and Commerce Committee, show FirstEnergy controllers were struggling to monitor their own system, saying, "We have no clue. Our computer is giving us fits, too. We don't even know the status of what's around us." The transcripts also show an early afternoon discussion about an imminent danger of collapsing or a cascade could occur if an energy plant in the region were shut down. Lawmakers continue to look for a single cause and questioned whether a FirstEnergy computer failure was to blame. But the company says it may not have mattered.

BURG: Even now, in hindsight, our system was relatively stable until the very end. So had -- and I wish they had -- had our system operators had perfect knowledge at that point in time, I don't know that they would have done anything differently than what was done.

WOODS: Utilities in the Northeast say they didn't know of the problems until it was too late. New York utilities say they had less than nine seconds to react. Consolidated Edison (ED) says its first sign of trouble was when the lights flickered.

EUGENE MCGRATH, CHAIRMAN & CEO, CONSOLIDATED EDISON OF NEW YORK: You know, the aberrations happened so quickly, the operator did two things. He pressed the max generation button, started up the gas turbines that weren't running, and by that time the system was down.

WOODS: Long Island's top energy executives say the worst may not be over.

RICHARD KESSEL, CHAIRMAN & CEO, LONG ISLAND POWER AUTHORITY: While the event of the blackout is over, the emergency isn't. We still don't know really what caused it or whether or not it can be prevented again.

WOODS: Utility executives told lawmakers new legislation to create uniform standards may help keep them from being left in the dark again. Stephanie Woods, 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. Copyright (c) 2003 Community Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.

09/04/03: Porter Bibb Of Media Tech Capital Partners On The Outlook For Media Ownership Rules

SUSIE GHARIB: Another hot topic in Washington today -- the impact of a federal appeals court decision to block the new media ownership rules championed by the Federal Communications Commission. Joining us now to talk more about this, Porter Bibb, a Managing Partner and Media Specialist at Media Tech Capital Partners. Hi, Porter.

PORTER BIBB, MANAGING PARTNER, MEDIATECH CAPITAL PARTNERS: Good evening, Susie.

GHARIB: Well, as you know, these new media ownership rules were controversial right from the start. Now that they've been blocked, how much of a setback is this for media companies?

BIBB: I think it's a serious setback to the four networks that petitioned the court against this, the plaintiffs' demand that the FCC's mandate be rolled back. They wanted to move concentrations from 35 percent of the national audience to 45 percent, and the court basically yesterday decided that the plaintiffs' case was strong enough to indicate that they would win in a court battle. And that gives the legislators in the House and the Senate, I think, enough ammunition to roll back the FCC's decision.

GHARIB: Well, let's talk about -- let's stay on with those media companies. Were there any deals in the works that now will have to be undone?

BIBB: Well, that's interesting. There was brooded about before the FCC's decision an onslaught of media mergers and consolidation. And in real life, once the FCC ruled, there was almost no noise at all. We heard on the Street from broadcast group owners in smaller stations that were expecting to be gobbled up by the large networks, they said where is the buyer, where's the market? It didn't happen. So in reality, if there was any kind of rush to consolidate, it was -- everybody was keeping his powder dry.

GHARIB: Some people say that, you know, the big consolidations and the cross ownership deals have already -- are already in place. Do you agree with that?

BIBB: I think most of the consolidation, yes, absolutely, has occurred. You have situations, for example, in New York City, where Viacom (VIA) owns eight radio stations, including two of the only all news stations in this market. So they can't buy any more radio stations. The one really controversial issue that the FCC mandated that probably is going to die along with the other rulings is cross ownership. They were going to remove the barriers that prohibited newspapers from buying radio and television stations in the same market.

GHARIB: Let me ask you a little bit about the Federal Communications itself. How much of a setback is this for the FCC and for Michael Powell, who was the champion and architect of these rules?

BIBB: Well, I think this is a terrific slap on the wrist to Chairman Powell. I think it's a very big indication of the fact that the FCC may, in fact, have outlived its usefulness. It is not a political situation any longer. Congress has taken over. The courts have taken over. And basically technology has taken over. And despite this one issue, the media consolidation issue, there are huge new problems that the FCC really is not competent to tackle -- the question of Internet privacy, security, spamming; the wide ranging regulatory issues involving telecommunications and wireless.

GHARIB: OK --

BIBB: Those need to be matters that the Justice Department and Congress will handle. And I think you may see this as the beginning of the end of the FCC.

GHARIB: That's very interesting that you say that. But I nutritionist want to get, in the remaining time that we have left, sort of what happens next. They're still committee --

BIBB: Well, the court --

GHARIB: Yes, there are committees in Congress that are still trying to undo all of this.

BIBB: That's right. They're --

GHARIB: Is it going to become a reality?

BIBB: The court's ruling was based on the fact that the FCC has been accused of not giving the public a voice in the hearings. And, in fact, Michael Powell kept the public basically shielded from any voice. They had three hearings in the greater Washington area and that was it. These rulings by the court are going to steamroll, the legislation in Congress will roll back the FCC mandates.

GHARIB: OK. All right, well, we really appreciate you coming on our program tonight to talk about this.

BIBB: It's a pleasure.

GHARIB: We've been speaking with Porter Bibb of Media Tech Capital Partners.

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. Copyright (c) 2003 Community Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.

09/04/03: Commentary: Forecasting The Future By Looking To The Past

SUSIE GHARIB: In tonight's commentary, have we entered a second cold war? Here's David Warsh, Editor of economicprinciples.com.

DAVID WARSH, COMMENTARY: Let me tell you a story that I think casts some light on our times. An old friend spent the summer of 1945 in Okinawa as a Marine getting ready for the invasion of Japan. Like everybody else, he was afraid. One afternoon came the news about the dropping of the atom bomb. They knew the war was over, so they walked off their jobs, they got drunk and they wound up getting in terrible fistfights with one another. I think that's a pretty good metaphor for what happened in the U.S. during the 1990s. The Berlin Wall came down, the Gulf War drove the lesson home, the failed coup against Gorbachev in the summer of '91 proved the point -- the cold war was over. America had won. A decade of peace followed, a decade of excess. Gas went under $1. The end of history was announced. We impeached a President. The stock market went crazy. There was a bust. All that changed with 9/11. The peace had ended. Something new had begun. No longer was it a standoff between two superpowers. Instead, it would be governments everywhere versus terrorists. And with that something new, there would be a return to something resembling a mild wartime discipline. It's always possible that those of us who think of this as cold war two are wrong. But if we're right, it's a valuable clue to understanding the years ahead. True, Harry Truman was tossed aside, but only after winning the 1948 election and fashioning a foreign policy that would serve for 40 years. But then it turned out that discipline had several meanings. Oh, yes, markets did fine for many years. I'm David Warsh.

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. Copyright (c) 2003 Community Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.

09/04/03: Lowe's Looks To Score New Customers With A Music Number

SUSIE GHARIB: And finally tonight, hitting the right note with corporate advertising can be a real challenge. It takes skill, smarts and sometimes knowing the right score. Scott Gurvey explains.

AMANDA KRAVAT: New guidance will grow, flowers will bloom, we'll make new memories in every room.

SCOTT GURVEY, NIGHTLY BUSINESS REPORT CORRESPONDENT: Singer/songwriter Amanda Kravat is recording a tune meant to suggest home improvement. It is not a topic you'd expect to find on the Billboard charts, but in the future, you might. That's because it will be sold by home improvement giant Lowe's (LOW) on a CD designed to meet customer demand for the music. It was written by the same team that composed Lowe's award winning television commercial called Spring Anthem.

UNIDENTIFIED MALE: For 56 years, families have been coming home to Lowe's.

BOB GFELLER, SENIOR VICE PRESIDENT, MARKETING, LOWE'S HOME IMPROVEMENT: Consumers remember it, they like it, and, frankly, they started asking us how they could get it. And we had so many inquiries either from the press or from our customer groups through either our 800 number or our Web site, that we decided that we ought to try to put it up online.

GURVEY: The Lowe's music was created by To The Beat Productions, the province of husband and wife team Sue Cirillo and Mark Saunders. To The Beat's commercial credits include L'Oreal, Maybelline, major league baseball and MasterCard. Making music for advertisers is more difficult than most imagine.

SUE CIRILLO, TO THE BEAT PRODUCTIONS: Music is a very strong branding tool. People, you know, remember music, and it makes their campaign stronger. But as you know, it shouldn't be a distraction from the message of the ad. So it truly is an art to be able to be heard and effective without being terribly distracting and, you know, covering the message that they're trying to get out.

GURVEY: In the case of Lowe's, To The Beat proposed several different musical ideas. Most were distinctly American. The composers were surprised when Lowe's picked a theme with an international flavor.

MARK SAUNDERS, TO THE BEAT PRODUCTIONS: I think that's what makes it stand out because, you know, if you go to a hardware store and Americana is kind of more what you'd expect. But this leaps off the TV screen.

GURVEY: So far, more than 3,000 people have taken the leap and downloaded the music from the Lowe's Web site. The CD goes on sale soon. Scott Gurvey, NIGHTLY BUSINESS REPORT, New York.

GHARIB: Paul, do you ever whistle the tune of ads that you heard on television?

KANGAS: I remember that quartet called the Hilows . Maybe they ought to try out for some of that advertising.

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. Copyright (c) 2003 Community Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.

9/04/03: "Paul Kangas' Stocks In The News"

PAUL KANGAS: After an hour of trading, the Dow was down 22 points, while the NASDAQ Index was little changed. The market slowly recovered as investors focused on today's much stronger than expected 1.6 percent rise in July new factory orders and the Purchasing Manager's August Service Activity Index, which matched July's record high. By early afternoon, the Dow bounced back with a 31 point gain. The NASDAQ Composite was up 16. Federal Reserve Governor Ben Bernanke's comment that there is no reason to hike interest rates for some time helped stocks stay positive for the rest of the session. The Dow Industrial average went on to close up 19.44 points, at 9,587.90. The NASDAQ Composite was up 16.07 points, ending at 1,868.97. The Standard & Poor's 500 Index gained 1.70 points, to 1,027.97.

The 10-year note in the bond market advanced 22/32, to close at 97 30/32, putting the yield at 4.50 percent.

The most active big board issue on 35.3 million shares, NorTel Networks (NT) rising another $0.31. It was up $0.29 yesterday when it got a $1 billion contract to provide Verizon (VZ) with voice and networking equipment.

Then Lucent Technologies (LU) edged up $0.03.

The Gap (GPS) down $2.82. As we mentioned, August same store sales were up four percent, but Wall Street was looking for a 7.3 percent gain and the Robinson Humphrey Brokerage downgraded the stock from "over weight" to "equal weight" today.

Pfizer (PFE) down $0.28. After the close yesterday, the company cut its 2003 GAAP earnings estimate from $0.86 down to $0.70 a share, citing acquisition costs of Pharmacia (PHA).

Home Depot (HD) moving up $1.45. It opened its first store in Manhattan today and of course it's in that strong retailing group, which helped it move up today.

Caremark (CMX) up $0.25. It dropped over $2 yesterday on news it's negotiating to acquire Advanced PCS for $6 billion.

G.E. (GE) a $0.20 gain.

AOL Time Warner (AOL) dropped a $0.01.

Motorola (MOT) a $0.24 rise.

And tenth in volume, Sprint PCS (PCS) up $0.15 a share.

Procter & Gamble (PG), a Dow stock, helping that average with a gain of $2.63. The company increased its first quarter earnings estimates by 19 to 21 percent. It says it'll do that with the help of sales of generic Prilosec, the heartburn drug.

And then we see a good gain in Elan Corp. (ELN), the best percentage gain on the big board, as a matter of fact. The company completed its audit of fiscal year 2002 and expects to file its annual report to the SEC tomorrow. And that will avoid a technical default on the company's senior note debt. A nice move.

National Semiconductor (NSM) up $3.17. Today, first quarter earnings out, $0.15, up from a $0.01 last year, and $0.03 above the Wall Street estimate. A nice move in the stock, and that was a strong group.

Albertson's (ABS) up $2.04. Second quarter earnings $0.44, down from last year's $0.63. But that was $0.02 above the Street estimate and the company reaffirmed 2004 earnings in the range of $1.70 to $1.75 a share.

Talbots (TLB) didn't do well today, down $2.79. The company's August same store sales dropped 8.7 percent. The kids' clothing units had very disappointing sales, apparently.

And then another retailer, Christopher & Banks (CBK), dropping $3.45. The women's clothing retailer had a drop of one percent in August same store sales. A rise was generally expected. But the company did initiate a $0.04 per share quarterly dividend.

And then Cooper Companies (COO), which makes health care products, higher earnings for the third quarter, $0.58 versus $0.43 last year, and $0.04 above the Street estimate. Revenues jumped 20 percent and the company increased its fourth quarter earnings estimates up to $0.62 a share.

Salton Incorporated (SFP), I believe they make the George Foreman grills, had a fourth quarter loss of $0.79 a share, much bigger than last year's $0.21 loss. Sales dipped 13 percent. Standard & Poor's repeated an "avoid" rating on Salton's stock.

On the up side, Entercom Communications (ETM) rising $2.36. Merrill Lynch upgraded a national briefing of radio stocks in the belief the upcoming political campaigns and the Olympics will increase advertising revenues. That helped a number of stocks in this sector, including Clear Channel (CCU), up $1.12; Cox Radio (CXR), up a fraction; Emmis Communications (EMMS) and Westwood One (WON), nice gains, as well here.

Topping the active list on NASDAQ, Microsoft (MSFT) up $0.13.

A $0.38 gain in Intel (INTC). And after the close, Intel revised first quarter revenue projections to the high end of its previous forecasts.

Cisco (CSCO), a $0.35 gain.

eBay (EBAY) up $1.13.

Nextel Communications (NXTL) a $0.39 rise, fifth in dollar volume on NASDAQ.

Qualcomm (QCOM) up $0.73.

Yahoo! (YHOO) did well, up $1.26.

Amazon.com (AMZN) up $1.10.

KLA-Tencor (KLAC) rose $1.38. UBS Brokerage upgraded it from "neutral" to "buy."

And then Oracle (ORCL) down $0.04, tenth in volume on NASDAQ.

Dendreon (DNDN) up $2.30. The FDA gave fast track status to the company's prostate cancer drug called Provenge.

And then Cerus (CERS) losing $2.42, almost 32 percent. The company and Baxter International (BAX) have halted trials aimed at improving blood transfusions.

And then finally we see WebMD (HLTH) dropping $0.98. It traded as low as $8.20. Yesterday, the Department of Justice searched three of the company's offices for documents related to the firm's acquisition of Medical Manager. That's a software firm.

And those are the stocks in the news tonight.

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. Copyright (c) 2003 Community Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.

09/04/03: Market Stats

								      NET    PERCENT
                          CLOSE     CHANGE     CHANGE
						  
						  
DOW CLOSE              9587.90     +19.44       + .2
HIGH                                         9609.09
LOW                                          9541.72

NASDAQ COMP.           1868.97     +16.07        +.9
HIGH                                         1870.00
LOW                                          1848.95

VOLUME                                       1,459.8
PREVIOUS                                     1,650.8
UP VOLUME                                      776.5
DOWN VOLUME                                    655.1

DOW TRANSPORTS         2757.15      -4.32       - .2
DOW UTILITIES           244.34       -.50       - .2
CLOSING TICK                                    +585

S&P 500                1027.97      +1.70       + .2
S&P 100                 516.18      +1.68       + .3
MIDCAP 400              526.99      +1.32       + .3
REUTERS/CRB             241.80       +.10       + .0

NYSE COMPOSITE         5768.55      +8.75       + .2
VALUE LINE              332.64      +1.08       0.33
RUSSELL 2000            512.56      +1.85       0.36
WILSHIRE 5000           9967.2     +20.05        0.2

U.S. TREASURIES
5-YEAR NOTE 3.25%
Aug. 15,2008          99           +17/32       3.47

10-YEAR NOTE 4.25%
Aug. 15,2013          97 30/32     +22/32       4.51

30-YEAR NOTE 5.375%
Feb. 15, 2031        100 30/32     +20/32       5.31

LEHMAN BROS.
LONG BOND INDEX        1679.25     +10.88


DOW CLOSE              9587.90     +19.44       + .2
ADVANCES                                        1823
DECLINES                                        1408
NEW HIGHS                                        318
NEW LOWS                                          12

                                      NET    PERCENT
NYSE MOST ACTIVES    4PM CLOSE     CHANGE     CHANGE
NT     Nortel Networks    3.82       +.31       +8.8
LU     Lucent Tech        2.15       +.03       +1.4
GPS    Gap Inc           18.18      -2.82      -13.4
PFE    Pfizer Inc        30.60       -.28        -.9
HD     Home Depot Inc    34.24      +1.45       +4.4
CMX    Caremark Rx       23.55       +.25       +1.1
GE     GE                31.32       +.20        +.6
AOL    AOL Time Warner   16.75       -.01        -.1
MOT    Motorola          10.84       +.24       +2.3
PCS    Sprint Pcs Group   5.69       +.15       +2.7

NASDAQ CLOSE           1868.97    + 16.07       + .9
VOLUME                                       1,892.9
PREVIOUS                                     2,340.0
ADVANCES                                        1821
DECLINES                                        1359

NASDAQ ACTIVES
MSFT   Microsoft         28.43       +.13        +.5
INTC   Intel             28.60       +.38       +1.4
CSCO   Cisco Systems     20.59       +.35       +1.7
EBAY   eBay              53.62      +1.13       +2.2
NXTL   Nextel Comm       19.33       +.39       +2.1
QCOM   Qualcomm          41.10       +.73       +1.8
YHOO   Yahoo!            34.83      +1.26       +3.8
AMZN   Amazon.com        47.29      +1.10       +2.4
KLAC   KLA Tencor        57.91      +1.38       +2.4
ORCL   Oracle            13.72       -.04        -.3

AMEX CLOSE              989.25     + 6.44       + .7

INDEX SHARES
DIA    DIAMONDS TRUST    96.21       +.19        +.2
QQQ    NASDAQ 100        34.16       +.31        +.9
SPY    S&P DEP.RECEIPTS 103.41       +.05        +.1

STOCKS IN THE NEWS
PG     Procter & Gamble  91.43      +2.63       +3.0
ELN    Elan Corp Plc      5.87      +1.00      +20.5
NSM    Natl Semiconduct  31.99      +3.17      +11.0
ABS    Albertson's       23.00      +2.04       +9.7
TLB    The Talbots       35.36      -2.79       -7.3
CBK    Chrstphr & Banks  27.10      -3.45      -11.3
COO    Cooper Cos        44.38      +6.19      +16.2
SFP    Salton Inc         9.80      -1.40      -12.5
ETM    Entercom Comm     51.66      +2.36       +4.8
CCU    Clear Channel     45.79      +1.12       +2.5
CXR    Cox Radio         24.35       +.35       +1.5
EMMS   Emmis Comm        23.90      +2.56      +12.0
WON    Westwood One      33.69      +1.19       +3.7
DNDN   Dendreon           8.53      +2.30      +36.9
CERS   Cerus              5.29      -2.42      -31.4
HLTH   WebMD              9.22       -.98       -9.6