Program: Thursday, September 11, 2003

Wall Street Reflects On & Remembers September 11th
One On One With Robert Hormats, Vice Chairman of Goldman Sachs International
"BusinessWeek" CEO Forum Jeremy Siegel, Professor of Finance, The Wharton School
Commentary: The Business World's New Wave Of Buzzwords
Last Word: Creative Ways To Pay Tribute On 9/11
Paul Kangas' Stocks In The News
Market Stats

09/11/03: Wall Street Reflects On & Remembers September 11th

SUSIE GHARIB: It is September 11, 2003, the second anniversary of the worst terrorist attacks in American history. It was a day of remembrance all across the nation. On Wall Street, the mood was somber. The major financial markets paused for four separate moments of silence this morning, but the New York Mercantile Exchange and the Board of Trade remained closed for 21 minutes more honoring the 21 members of the Exchange who died that terrible morning. These observances were just part of a day dedicated to marking the 9/11 attacks. Scott Gurvey reports from Ground Zero.

SCOTT GURVEY, NIGHTLY BUSINESS REPORT CORRESPONDENT: Four moments of silence. The first plane. The second plane. The first tower. The second tower. Each time, thoughts went back to that day two years ago. Then, the string of horrors seemed to take an eternity. Today, it just seemed to take the hour and 43 minutes it really was. The mayor said this should be a simple ceremony, and people should look to the future as well as reflect on the past.

MAYOR MICHAEL BLOOMBERG, NEW YORK CITY: We come here to honor those that we lost and to remember this day with sorrow, but we also remember with pride, and from that comes our resolve to go forward.

GURVEY: It was a day for the families and friends of the victims, and for the people of the community. It was a day for the children who read the names of the 2792 who were killed. 200 children read names for two-and-a-half hours. Every one of the children had lost a relative in the attack.

UNIDENTIFIED FEMALE: And my daddy Gerard Rod Capoa (ph), your light still shines on.

GURVEY: The scars at the site can still be seen: the 10 story pit itself, the damaged bridge, the still shuttered building across the street. But there are also signs of renewal. Reconstruction of one of the smaller trade center buildings has already begun. The New York Board of Trade has returned to the neighborhood, its trading floor was destroyed in the attack. And as traders pause to reflect, the major market averages are close to their pre-9/11 levels. For much of the community, today was close to business as usual. There will always be a conflict between the need to move forward and the need to remember. Certainly the most emotional part of today's ceremony was the heart-wrenching reading of the names by the children. And it seems safe to assume that whatever is to come in the days ahead, this day will always be remembered here at this place. Scott Gurvey, 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. Copyright (c) 2003 Community Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.

09/11/03: One On One With Robert Hormats, Vice Chairman of Goldman Sachs International

SUSIE GHARIB: The 9/11 attacks also took a big toll on the nation's economy. Earlier today, I asked Robert Hormats, vice chairman of Goldman Sachs International, for his sense of the lingering impact of those events two years later.

ROBERT HORMATS, VICE CHAIRMAN, GOLDMAN SACHS INTERNATIONAL: . realized before and it has as a result made American business considerably more cautious. American business has been more concerned about security, more concerned about the diversification, spreading themselves out geographically so they're not so vulnerable to an attack on any particular country, and made the more conservative about making big capital investments down the road. So it has had a conservative impact on business and on the American consumer.

GHARIB: Bob, two industries that were severely impacted by the 9/11 events were the airline and the hotel industry. To what extent have they gotten back to normal?

HORMATS: Neither of those sectors is back to normal yet. They're still suffering from the fact that many Americans are more caution about travel. Instead of taking a plane for their vacation, they will go in a radius that's relatively close to home. They may travel by car, as opposed to by an airplane to wherever vacation destination they have. So Americans are more conservative, more cautious about their travel. And that certainly hurt the whole leisure industry and the travel industry.

GHARIB: As you know, President Bush is asking Congress for $87 billion to fight the war on terrorism and also for reconstruction. If he gets it, if it's approved, what would that mean for the U.S. economy?

HORMATS: The major impact on certain companies will be quite beneficial, companies that produce capital goods that could be used to rebuild the Iraqi water system or the power system or the sewer system, those companies would benefit. On the other hand, it increases the size of the U.S. budget deficit quite substantially. And while we need to put more money into Iraq and Afghanistan, because we need to make that a success, we have not yet reprioritized our budgetary spending and take another look at the tax cuts that we have enacted in the past or domestic spending. And perhaps we will have to revisit those in the future to avoid a ballooning budget deficit in future years which could push up interest rates. And that would be a negative effect of the cumulative tax cuts and spending increases.

GHARIB: And a continuing debate to be sure. You know, when I interviewed you two years ago, right after the September 11 attacks, you talked about how this event could change the way American companies do business. What's your sense of how things are different?

HORMATS: It certainly changed one aspect of American business, and that is that American business is much more concerned about security. You have people scanning your brief cases as you go into a building and it has also made trade a little bit more difficult, because containers are looked at, are scanned at ports. And we're much more vigilant about trade and the movement of goods and the movement people, immigrants or workers that come into work say in Silicon Valley, much harder to do. So it has thrown a sort of sand in the gears of globalization.

GHARIB: Real quickly, I just want to ask you one question about the stock market and any kind of lingering issues that are impacting investor decisions.

HORMATS: Investors are more cautious, subliminally perhaps, but investors are aware there could be another act of terrorism and I think as a result they want to be more liquid, a little bit more conservative with their investments, a little bit more of their money in Treasuries or other types of very secure assets. And they don't want to take as many risks.

GHARIB: OK. Bob, thank you very much.

HORMATS: My pleasure.

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.

09/11/03: "BusinessWeek" CEO Forum Jeremy Siegel, Professor of Finance, The Wharton School

SUSIE GHARIB: Profiting in an uncertain business climate is a challenge for any company leader, and that topic was the focus of a recent "BusinessWeek" CEO Forum at the Wharton School. NIGHTLY BUSINESS REPORT's Darren Gersh sat down with author and professor Jeremy Siegel, one of Wharton's leading thinkers on the long-term investment outlook. Darren began by asking Siegel what he thinks of one of the nation's biggest uncertainties: paying for the Baby Boomers' retirement.

JEREMY SIEGEL, PROFESSOR OF FINANCE, THE WHARTON SCHOOL: The aging of the population is unprecedented in world history. As you know, retirement ages have been getting longer and longer. People are living longer on the one hand and then they're retiring earlier on the other hand. And they're hoping that their accumulation of assets combined with Social Security, other sources of income and pension, is enough for them to enjoy a very, very comfortable retirement period that is getting longer and longer. But the basic wishes of all those retirees flies in the face of the fact that there is not enough workers. that are young enough that can produce all of the goods and services and good things that the Baby Boomers want to buy when they get into retirement. That is the squeeze. There is not going to be enough workers, and on the other side of the coin is that not being enough workers there is not going to be enough people to buy all those assets.

DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: Well, all of the economists say that basically, you know, we need to have a more productive economy, that if we keep productive growing at a good rate, that's what is going to provide for the level of the comfort and security that the Baby Boomers want, the economic level of growth in their retirement, you're not buying that?

SIEGEL: It helps. And I have actually developed a model, a computer model, that puts productivity in. And when I crank up productivity, yes, it helps but not enough.

GERSH: So are you saying we have to go out in the world hire other workers, Chinese workers, Indian workers, to make the goods that the Baby Boomers are going to want in their retirement?

SIEGEL: Well, where I see the answer to the problem is where the young workers are and where are they, in the developing countries of the world: China, India, Indonesia and the other countries. That's where the youth is, that's where the worker population is. Now, do you have to have them immigrate into the United States? No, not necessarily. With worldwide trade they can produce the goods and even many of the services in their home country and then export them to the United States. And the beauty of that is not only are they going to provide us the goods, they're going to earn the income that is going to buy our assets, the Baby Boomer's assets once they retire.

SIEGEL: What you're describing to some people is their nightmare scenario, the idea that we're going to be sending our investment overseas, we're going to be sending our jobs overseas, and you're saying that that's a good thing.

SIEGEL: Well, no, I'm not saying it's a good thing. I am saying that saving is important. I'm not going to deny that, because that is where a lot of innovation takes place, but I do not see enough savings done by Americans and I don't even see how that can even come close, or productivity growth that is good enough to do the job by itself.

GERSH: So what does this mean for somebody who is sitting out there thinking, oh, I have to invest for the next 10, 15, 20 years in my 401(k) if I am going to have a comfortable retirement, and here Jeremy Siegel is saying the stock market is going to crash when the Baby Boomers retire?

SIEGEL: Oh, no, no. Because I do think - what I'm saying is I do think that that solution is going to come into the fore, but I think that U.S. policies have to be knowledgeable and understanding of these forces. In other words, we have to encourage world trade. We have to bring down the terrorists. We have to bring down quotas. We should encourage a bit more immigration because we do need - we are going to have shortages of workers coming up, although I don't see that as the major source of the problem. We have to encourage the rest of the world to grow, not just for their own benefit, not because of charity but because we need their goods going forward.

GERSH: Jeremy Siegel, thank you very much.

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

09/11/03: Commentary: The Business World's New Wave Of Buzzwords

SUSIE GHARIB: Business is full of buzzwords, and tonight's commentator says some new ones are on the way. Here's Tom Stewart, editor of the "Harvard Business Review."

TOM STEWART, COMMENTARY: The world of management ideas has underpopulated lately. Just about the only buzzword flying around in it was "execution," the eminently worthwhile, back-to-basics notion that the best strategy in the world won't help you if you don't keep promises, deliver on time, and do things right. That's the right nostrum for tough times, but it takes you only so far. So it's good that some new ideas are gaining currency. One word you'll be hearing a lot is "resilience." We all know there are some people you just can't keep down, no matter how often the world knocks them down, they bounce back. There are cities like that, London in The Blitz, New York every day of the week. Why not companies? What would organizational resilience look like? That question is being asked by strategy expert Gary Hamel. A resilient company, Hamel says, ought to set a goal of "zero trauma," no sudden layoffs, no big write-downs. These events are admissions of failure, like product recalls. Hamel suggests some capabilities companies need to improve resilience. One, they've got to learn to read the world as it is, not as they want it to be, to overcome what you might call "strategic denial." Two, they've got to make lots of little experiments so they're always testing new possibilities. Three, they've got to break the internal political logjams that make it hard to move resources where growth is. And last, they can't rely so totally on execution, important though it is, that they forget that the best execution in the world won't help a business that's going downhill no matter what. I'm Tom Stewart.

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.

09/11/03: Last Word: Creative Ways To Pay Tribute On 9/11

SUSIE GHARIB: And finally, this second anniversary of the 9/11 attacks is being noted by many Americans with a day of service. More than 100 companies are taking part in what's called "One Day's Pay." The non-profit group has organized corporate efforts nationwide to do volunteer work every September 11. Companies are also encouraging employees to do individual good deeds, from writing letters to soldiers in Iraq to delivering food to the elderly. experts say that volunteering is a good way to help people deal with tragedy by doing something meaningful.

PAUL KANGAS: You'll get no argument from me on that, great idea.

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.

9/11/03: "Paul Kangas' Stocks In The News"

PAUL KANGAS: The 9/11 observances were the backdrop for trading on Wall Street today. So as you might imagine it was a pretty gloomy session. In the first hour, the Dow was up as much as 33 points and the NASDAQ rose 10. The markets' advance was hampered by news that new weekly jobless benefit claims rose by 3000, and then that along with a brokerage downgrades not only on IBM (IBM), but on DuPont (DD). However, better-than-expected earnings from Adobe Systems and upgrades on Wyeth (WYE) and Dow Jones (DJ) helped keep the rally alive. By early afternoon, the Dow was up 65 points, the NASDAQ up 20. Then the rally began to lose its punch, partly because of lackluster volume. So the Dow Industrial Average faded to a closing gain of 39.30 points, putting it at 9459.76. The NASDAQ Composite ended up 22.28 points at 1846.09. The Standard & Poor's 500 Index rose exactly 5 ½ points, ending at 1016.42. The 10-year note over in the debt market fell 11/32 to 99 14/32, putting the yield at 4.32 percent.

Topping the New York Exchange active list, Lucent Technologies (LU) on 27.2 million shares. The stock up $0.12. Soundview Technology brokerage upgraded it from underperform to neutral on growing demand for Lucent's products.

NorTel Networks (NT) was a $0.02 gainer.

And then Liberty Media (L) down $0.31.

Followed by General Electric (GE), which move up $0.45.

Texas Instruments (TXN) was up $0.26, number five in big board volume.

Pfizer (PFE) managed to gain $0.07.

And Nokia (NOK), a $0.21 rise there.

Micron Technology (MU) up $0.25.

Advanced Micro Devices (AMD) rose $0.57.

And number 10 in big board volume, AOL Time Warner (AOL), rose $0.11 a share.

DuPont (DD), one of the Dow stocks, down $0.45. Banc of America this morning downgraded it from buy to neutral.

And then another Dow stock, none other than IBM (IBM), managed to close with a gain of $0.08. But it traded as low as $86.44 this morning after Smith Barney downgraded it from in-line to underperform in the belief that Wall Street's earnings estimates for Big Blue are too optimistic. But the stock did recover nicely.

Safeway (SWY) up $0.06 a share. It traded as low as 24 though earlier in the day after J.P. Morgan downgraded it from overweight to just neutral.

And then Wyeth (WYE), a giant pharmaceutical firm, up $0.65. Smith Barney upgraded it from in-line to outperform because it believes the company is poised for robust performances not only this year but through 2004.

ITT Industries (ITT) rose $1.82. Goldman Sachs upgraded this one from in-line to outperform. And a nice move in the stock.

Cypress Semiconductor (CY) up $0.76. It traded as high as $18.21. Smith Barney this morning upgraded it from in-line to outperform. And Smith Barney, which was very active today on upgrades and downgrades, also upgraded Fairchild Semiconductor (FCS). And that stock was up $1.02 to $17.81.

Huffy (HUF) was one of the bigger percentage losers, down almost 14 percent with that drop of almost a buck. The company lower its 2003 earnings guidance from the range of $0.55 to $0.65 down to $0.44 to $0.52 per share.

And then Dow Jones & Company (DJ) had a good day, up $2.61. Smith Barney upgraded it from underperform to in-line on indications the company's "Wall Street Journal" flagship publication is experiencing a strong pick-up in advertising space.

And then TECO Energy (TE), formerly called Tampa Electric, up $0.71. The company is going to sell 11 million of its common shares to funds managed by Franklin Advisors of San Mateo, California. And the price, $11.76 a share.

Wabash National (WNC) down $1.23. The truck trailer manufacturer was downgraded by BB&T Capital from a strong buy to just a buy.

Intel (INTC) topped the active list on NASDAQ, moving up $0.37.

Followed by Cisco (CSCO), $0.25 gain there.

Microsoft (MSFT) moved up $0.29.

And then Adobe Systems (ADBE) jumping $3.07. After the close yesterday, the company in with third-quarter earnings of $0.28, up from 20 the prior year. And that was $0.03 above the Wall Street estimate. Revenues up a respectable 12 percent. And today Merrill Lynch upgraded Adobe from neutral to buy.

Oracle (ORCL) was up $0.13 a share, fifth in dollar volume on NASDAQ.

Applied Materials (AMAT) rose $0.41.

Nextel Communications (NXTL), as $0.20 drop there.

KLA-Tencor (KLAC) moved up $0.89.

Then came Amazon.com (AMZN) with a loss of $1.03.

Number 10 in dollar volume on NASDAQ was Amgen (AMGN), gaining $1.26.

TriQuint Semiconductor (TQNT) had a big rise, almost 20 percent with that gain of $1.13. The company said Wall Street estimates for a third-quarter loss in the range of $0.09. A little bit too pessimistic, the company says it will probably have a loss of only $0.06 to $0.08, better than that. It also expects fourth-quarter revenues to be at the high end of the company's previous guidance.

Then a look at Carreker Corporation (CANI). This company is in the corporate software solutions business. And a real turnaround, second-quarter earnings of $0.17 versus a loss of $0.13 the prior year. And incidentally, this chart only goes back to May when the company re-qualified for NASDAQ listing requirements.

And those are our "Stocks in the News."

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.

09/11/03: Market Stats

			       
				   
                                      NET    PERCENT
                         CLOSE     CHANGE     CHANGE
DOW CLOSE              9459.76     +39.30       + .4
HIGH                                         9502.84
LOW                                          9410.42

NASDAQ COMP.           1846.09     +22.28       +1.2
HIGH                                         1852.60
LOW                                          1819.42

VOLUME                                       1,310.3
PREVIOUS                                     1,519.7
UP VOLUME                                      911.1
DOWN VOLUME                                    368.2

DOW TRANSPORTS         2735.07     +29.80      + 1.1
DOW UTILITIES           243.98      -1.07       - .4
CLOSING TICK                                    +469

S&P 500                1016.42      +5.50       + .5
S&P 100                 511.37      +2.60       + .5
MIDCAP 400              518.47      +3.72       + .7
REUTERS/CRB             244.87       -.51       - .2

NYSE COMPOSITE         5734.51     +26.28       + .5
VALUE LINE              328.67      +2.64       0.81
RUSSELL 2000            507.43      +5.67       1.13
WILSHIRE 5000          9853.11     +58.67        0.6

U.S. TREASURIES
5-YEAR NOTE 3.125%
Sept. 15,2008         99 13/32      -8/32       3.25

10-YEAR NOTE 4.25%
Aug. 15,2013          99 14/32     -11/32       4.32

30-YEAR NOTE 5.375%
Feb. 15, 2031        102 13/32     -24/32       5.21

LEHMAN BROS.
LONG BOND INDEX        1712.62      -3.71


DOW CLOSE              9459.76     +39.30       + .4
ADVANCES                                        2150
DECLINES                                        1103
NEW HIGHS                                         84
NEW LOWS                                          15

                                      NET    PERCENT
NYSE MOST ACTIVES    4PM CLOSE     CHANGE     CHANGE
LU     Lucent Tech        2.19       +.12       +5.8
NT     Nortel Networks    3.98       +.02        +.5
L      Liberty Media     10.80       -.31       -2.8
GE     GE                31.48       +.45       +1.5
TXN    Texas Instrument  23.68       +.26       +1.1
PFE    Pfizer            31.84       +.07        +.2
NOK    Nokia Corp        15.60       +.21       +1.4
MU     Micron Tech       13.60       +.25       +1.9
AMD    Advanced Micro    11.83       +.57       +5.1
AOL    AOL Time Warner   16.11       +.11        +.7

NASDAQ CLOSE           1846.09    + 22.28      + 1.2
VOLUME                                       1,754.0
PREVIOUS                                     2,007.0
ADVANCES                                        2070
DECLINES                                        1086

NASDAQ ACTIVES
INTC   Intel             28.03       +.37       +1.3
CSCO   Cisco Systems     20.71       +.25       +1.2
MSFT   Microsoft         27.84       +.29       +1.1
ADBE   Adobe System      39.46      +3.07       +8.4
ORCL   Oracle            12.98       +.13       +1.0
AMAT   Applied Matl      21.11       +.41       +2.0
NXTL   Nextel Comms      19.09       -.20       -1.0
KLAC   KLA Tencor        56.46       +.89       +1.6
AMZN   Amazon.com        45.19      -1.03       -2.2
AMGN   Amgen             68.25      +1.26       +1.9

AMEX CLOSE              987.49     - 1.18       - .1

INDEX SHARES
DIA    DIAMONDS TRUST    94.97       +.29        +.3
QQQ    NASDAQ 100        33.66       +.42       +1.3
SPY    S&P DEP.RECEIPTS 102.26       +.30        +.3

STOCKS IN THE NEWS
DD     Du Pont           43.36       -.45       -1.0
IBM    IBM               87.92       +.08        +.1
SWY    Safeway           24.90       +.06        +.2
WYE    Wyeth             47.25       +.65       +1.4
ITT    ITT Industries    62.79      +1.82       +3.0
CY     Cypress Semicon   17.86       +.76       +4.4
HUF    Huffy Corp         6.09       -.99      -14.0
DJ     Dow Jones & Co    45.86      +2.61       +6.0
TE     Teco Energy       13.07       +.71       +5.7
WNC    Wabash Natl       17.88      -1.23       -6.4
TQNT   TriQuint Semi      6.81      +1.13      +19.9
CANI   Carreker           6.89      +1.75      +34.1