Program: Tuesday, September 16, 2003

The Federal Reserve Inspires Investors To Go On A Buying Spree
The Senate Votes To Rollback The FCC Media Ownership Rules
One On One With Mike Holland, Chairman of Holland and Company
Commentary: The Economic Election Connection
Last Word- The Line On Grasso & The California Governor's Race
Paul Kangas' Stocks In The News
Market Stats

09/16/03: The Federal Reserve Inspires Investors To Go On A Buying Spree

JEFF YASTINE: Investors went on a buying spree on Wall Street after the Federal Reserve opted to leave interest rates unchanged. The Dow gained 118 points, the NASDAQ climbed 41. The Fed`s unanimous decision came amid signs the economy is finally firming up, although the central bankers say we aren`t out of the Woods yet. Suzanne Pratt takes a closer look at the Fed`s decision.

SUZANNE PRATT, NIGHTLY BUSINESS REPORT CORRESPONDENT: It was widely expected on Wall Street that the Federal Reserve would leave interest rates at 45 year lows today. After all, even though the U.S. economy is perking up, the U.S. labor market is not. And economists say the lack of new jobs means there is still a chance that growth could falter again. So for now, the Fed`s main lever for influencing economic activity, known as the federal funds rate, stands at one percent.

STEVEN RICCHIUTO, CHIEF U.S. ECONOMIST, ABN AMRO: They haven`t done anything because they continue to want to keep, foster the environment in which the economy can transition from unsustainable growth to sustainable growth. And by keeping short-term interest rates low, they help foster that environment.

PRATT: The statement accompanying today`s decision on interest rates was virtually the same that policymakers issued following the August meeting, with one exception. In today`s text, the Fed characterized labor market conditions as weakening. Last month it described them as mixed.

DAVID RESLER, CHIEF ECONOMIST, NOMURA SECURITIES: I think it underscores the notion that just because the economy seems to be picking up steam, the Fed is not any closer to tightening monetary policy than they were in the middle of the summer.

PRATT: In today`s decision, policymakers also repeated concerns first issued in May about disinflation. They said, "The committee judges that, on balance, the risk of inflation becoming undesirably low remains the predominant concern for the foreseeable future." Economists believe that part of the statement is directed at the bond market.

RICCHIUTO: The message they`re sending to the bond market is basically we`re not doing anything for a long period of time. The Fed funds rate is going to stay at one percent as long as the economy is doing well and inflation is still a concern.

PRATT: As for when the Federal Reserve is likely to raise interest rates, most experts say don`t look for any action before the middle of next year at the earliest. And that`s only if the job market recovers. 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. Copyright (c) 2003 Community Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.

09/16/03: The Senate Votes To Rollback The FCC Media Ownership Rules

JEFF YASTINE: The U.S. Senate voted to overturn new media ownership rules passed by the Federal Communications Commission. Those rules let broadcasters own more local TV stations and lets one company own a newspaper and broadcast station in the same city. But as Stephanie Woods reports, today`s vote is just the beginning of the battle.

STEPHANIE WOODS, NIGHTLY BUSINESS REPORT CORRESPONDENT: Opponents of the FCC`s move to ease media ownership restrictions are outraged. They say the changes will lead to a wave of mergers and stifle local programming and diversity.

SEN. RUSS FEINGOLD (D), WISCONSIN: The FCC has acted in a gross disregard of its mandate, of good public policy and of the will of the American people.

WOODS: FCC Chairman Michael Powell is the key champion of the new rules. Despite Congressional disapproval, he says the commission got it right.

MICHAEL POWELL, CHAIRMAN, FCC: I have not wavered one bit that I think the actual set of rules that we propounded are the correct ones. They`re the correct ones for the modern media marketplace. I do not think they provide for a tsunami of mergers. I think there`s been an extraordinary exaggeration of what`s permissible under the rules. So I think people have a really misguided impression of what would be permitted under these. So I`ve gone over them a thousand times. I worked harder than anyone in America for more hours than anyone in America on these rules and I`m convinced they`re the right ones.

WOODS: I spoke with Senator Dorgan. He said the FCC caved to special interests in writing these rules. What`s your response?

POWELL: Oh, it`s absolutely a ridiculous proposition. If that`s true, why are we being sued by broadcasters for not going far enough? If that were true, why did we draw restrictions that they now complain about? We tightened radio ownership rules. That`s certainly not what the radio industry was arguing for. We refused to let networks merge, one of the other rules. That`s certainly not what the networks would have urged for. So I think that`s wonderful theater, it`s wonderful hyperbole, but I think if a citizen sat down and looked at the six rules and how the restrictions really work, they`d find that there`s no way you could characterize that as a cave in of public interests. We don`t take money from industry. We don`t have any personal reason why we sit around and give them what they want. And if we gave them everything you want, I think you`d be looking at a very different set of rules today.

WOODS: Efforts to overturn the rules face an uphill battle in the House and beyond. President Bush has already said he would veto any measure overturning the regulations and a federal court has already put the rules on hold, pending an appeal. Powell says he anticipated an intense legal review, but not a political firestorm.

POWELL: What I didn`t anticipate necessarily is I think public, you know, are using the rules as a stalking horse for the anxiety at the media itself. You know, if you really read those postcards that we got, they`re not talking about our rules at all. They`re talking about we`re concerned about big media companies. We`re concerned about this show. We`re concerned about that viewpoint. I think the media has a lot of issues with the public in terms of trust and goodwill that are being played out in this debate.

WOODS: Do you feel a bit bruised?

POWELL: Oh, you can`t be in public policy in the modern era and not be, you know, bruised. You know, one of the things that I`ve discovered is that you can take two paths as the Chairman of the FCC, You can have a timid agenda or you can try to make a difference and you can try to change things in a significant way, which is going to require controversy. It`s going to require difficulty. It`s going to require pushing through. And I think if you`re not prepared to do that, give the job to somebody else.

WOODS: We`ve been speaking with Michael Powell, FCC Chairman. Thank you.

POWELL: Thank you for having me.

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.

09/16/03: One On One With Mike Holland, Chairman of Holland and Company

JEFF YASTINE: The Federal Reserve`s Open Market Committee leaves interest rates unchanged, saying the risk of deflation remains the chief concern. Our guest tonight, Mike Holland, Chairman of Holland and Company, says the markets breathed a sigh of relief at the Fed`s inaction.

MICHAEL HOLLAND, CHAIRMAN, HOLLAND & COMPANY: I think, Jeff, it was far more a function of the statement that the Federal Reserve made. Once again, there was always the possibility that there was going to be a surprise in a statement. And what we have right now is a Fed has told us that for a long period of time, interest rates are going to be at 40 plus year lows. That means that a lot of the liquidity building and economy building that`s been going on for the past couple of quarters should continue.

YASTINE: And yet the Fed`s talk about the economy, they`re still sending somewhat mixed messages there. They`re saying spending is firming, but the labor market is weakening. They`re saying core consumer prices remain muted, but at the same time companies continue to have little traction getting their own price increases to stick. I mean those are my, that`s my paraphrasing on the Fed`s statement. What do you think about that?

HOLLAND: An excellent observation that the Federal Reserve gave a very even- handed view of the economy. Had they been any more positive, people probably in the financial markets would have said, gee, it looks as if they`re viewing things somewhat more sanguine, in a more sanguine way than they did in the recent past, therefore we may have some concern about raising -- the Fed raising interest rates. Not at all. They gave a very even-handed, on the one hand, and on the other hand, a kind of economist view of things. So that I think the markets, which all right very smart and very quick to react, said so long as they have that kind of even handed response that deflation is as much of a risk as inflation and so on, the market said we`ll have lower rates for an extended period of time. A considerable period of time, is what the Federal Reserve has said, and I think the markets believe them.

YASTINE: Now, what do you think about the reaction in the bond market? Because there essentially seemed to be very little reaction. And, again, I would have thought if the Fed`s saying we`ll keep rates for as low as we need to for as long as necessary, that the bond market would be jumping for joy, the same way that the equity side of things do.

HOLLAND: The bond market is also quick to react, quick to vote on what the reality looks to be given what the Fed has said and is doing or not doing. The bond market saying, as the stock market is, that it`s possible, just possible, despite all the caution that`s out there in corporate America and in investing America, that things are going to be continue to get better and better and better. There is a message in what the bond market did today, which was to say inflation is going to remain low, that the Federal Reserve says that things are possibly getting a little bit better, maybe we shouldn`t be so quick to move one way or the other.

YASTINE: All right, now, we`ve got about a minute left. What`s your thought about the economy these days? Obviously, it sounds like you agree with the Fed and think that that turnaround is right around the corner, I guess?

HOLLAND: The economy, forgetting about the numbers that come out of Washington, which has continued to build on themselves, Jeff, in a way that is a cumulative, positive effect, we`re getting better and better numbers. Interesting that inventories and labor continue to be the weak parts of the economy, which once again gives evidence that corporate executives, like a lot of investors, remain very cautious. Nevertheless, the top line continues to grow. One factor that I would take a look at right today, and that would be Wal-Mart (WMT). Three percent of the economy. They continue to say their stores continue to do better than expected. I would watch companies like Wal-Mart. Forget about the Washington moves. And that would be a very good indicator of what`s really going on.

YASTINE: Mike, very quickly, how much of this is already baked into stocks at these prices these days?

HOLLAND: The stock market has correctly predicted this nascent upturn and I think that we probably have further to go in the number of industries, particularly the cyclical industries that will have the biggest swing.

YASTINE: All right, Mike, I appreciate your time with us.

HOLLAND: Jeff, thank you.

YASTINE: Our guest tonight, Mike Holland, Chairman of Holland and Company.

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.

09/16/03: Commentary: The Economic Election Connection

JEFF YASTINE: Tonight`s commentator suggests if we want to look to the future of the economy, we might want to look at one thing that`s usually overlooked. Here`s Irving R. Levine, Dean of International Studies at Lynn University and former Chief Economics Correspondent for NBC News.

IRVING R. LEVINE, COMMENTARY: It is conventional wisdom that the economy and the stock market do well in election years. The 2004 elections are just over a year away and there are signs that the economy and the market are reviving. Part of the reason is anticipation that the White House and Congress will, as in the past, try to win votes with measures that put more spending money in people`s pockets. Spending, of course, is the key a robust economy, which in turn can lift the stock market. What is new on the spending front is that candidates for political office have begun spending the money contributed by supporters. The spending is not only in the early presidential primary states and the in Congressional races, but also in the now delayed California recall. This is money that the contributors themselves might not otherwise have spent were it not for the campaigns. Although the money spent so far is relatively small change, there is much more to come. Every candidate promises, if elected, to enact laws to improve the economy. But the law of unintended consequences may already be operating. An unintended consequence of campaign spending may be to help boost the economy. I am Irving R. Levine.

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.

09/16/03: Last Word- The Line On Grasso & The California Governor's Race

JEFF YASTINE: Finally tonight, an online sports betting site has begun selling futures contracts on whether Richard Grasso will remain at the helm of the New York Stock Exchange through the end of the year. The site, tradesports.com, also has contracts on whether California Governor Gray Davis will be recalled by voters and whether actor Arnold Schwarzenegger will replace him. More than 1,100 contracts have already been traded on Grasso. They currently price in a 40 percent probability that he`ll leave by December 31. And, Paul, this Web site has something of a track record. It accurately predicting the ousting of Saddam Hussein in Iraq.

KANGAS: People will bet on anything.

YASTINE: That`s right. That`s what markets are all about.

KANGAS: I guess so.

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.

9/16/03: "Paul Kangas' Stocks In The News"

PAUL KANGAS: Stocks opened moderately higher on Wall Street, aided by Merrill Lynch`s upgrade of the semiconductor sector from "equal weight" to "over weight." Another plus was news of a 3/10 percent rise in August consumer prices, which suggested the economy was strong enough to produce some inflation, even though most of it was due to higher energy prices. Throughout the morning and up to the Fed`s announcement, the Dow was up between 45 and 50 points, and the NASDAQ averaged about a 20 point gain. Then, those assurances from the Fed that rates would remain low for quite some time triggered a rollicking rally for the rest of the session. The Dow Industrial average closed up 118 1/2 points, or 1 1/4 percent, to 9,567.34. The NASDAQ Composite soared 41 1/2 points, or 2 1/4 percent, ending at 1,887.25. The Standard & Poor`s 500 gained 14 1/2 points, or 1.4 percent, and now stands at 1,029.32. In the debt market, the 10-year note dipped 3/32 to 99 24/32, putting the yield at 4.28 percent.

Topping the active list on the big board on 38.8 million shares was NorTel (NT), moving up $0.37. That`s a nine percent gain. The company confirmed it got a networking equipment contract from France Telecom (FTE). Rumors have it it could be as much as a billion dollars.

Lucent Technologies (LU) a $0.09 gain there.

G.E. (GE) moved up $0.53.

And there you see Titan Corp. (TTN) up $4.33. Lockheed Martin will acquire the firm for $2.4 billion. That works out to $22 a share, $11 of it in cash and the other $11 will be in Lockheed stock, .22 shares. So this Lockheed stock, incidentally, fell $1.02 today, to $49.95.

Taiwan Semiconductor (TSM) a $0.40 gain, number five in big board volume.

Then came AOL Time Warner (AOL), moving up $0.28.

Pfizer (PFE), a $0.13 rise.

Nokia (NOK) gained $0.45.

Micron Technology (MU) gaining $0.40.

Tenth in volume, Home Depot (HD), a $0.52 rise.

International Paper (IP), a Dow stock, up $1.18. Merrill Lynch put it on its focus one list, saying the company is well positioned to benefit from any rebound in the paper industry.

Then Coca-Cola (KO), another Dow stock, but losing $0.58. The Thomas Weisel Brokerage downgraded it from "outperform" to just "peer perform."

And UPS, United Parcel (UPS), up $1.35. Merrill Lynch upgraded it from "neutral" to "buy" and has a $70 a share target for the stock.

Boston Scientific (BSX) a $0.48 gain. It traded as high as $67.25 this morning, after Wells Fargo (WFC) upgraded it from "hold" to "buy." Bank of America increased its target price from $69 to $82 over the next 12 months. Incidentally, the FDA will review the company`s Taxus stent on November 20.

Group 1 Automotive (GPI) moving down $1.40. Raymond James Financial Brokerage downgraded it from "strong buy" to just "market perform."

Raymond James also downgraded Sonic Automotive (SAH), which fell $1.04, and United Auto Group (UAG), which lost $1.02, downgrades from "outperform" to just "market perform."

And then the bulls didn`t make any dough in Krispy Kreme (KKD) today, down $0.65. The "Heard on the Street" column in today`s "Wall Street Journal" suggests the company`s newer outlets may not be doing as well as expected. The stock traded as low as $40.16.

Medical Staffing Network (MRN) losing 12 percent of its value with that loss of just over a $1. The company lowered its third quarter revenue forecast and withdrew its 2003 earnings guidance, citing difficult operating environments in the health care sector. Down she went.

And then Cole National (CNJ), which makes eyewear products, had a good gain of $2.24. The company narrowed its second quarter loss this year to only $0.34 a share, down from $0.35 last year.

And Citigroup (C) up $0.54. Just as the market was closing, shortly after, Citigroup Chairman and CEO Sandy Weill said he`s speeding up his retirement plans. He`ll step down on October 1, three months ahead of schedule, because he says Citi`s new management team is working better than ever. Weill will stay as Chairman through the year 2006.

And then another after the close development, a late day big win in court for Altria (MO), the parent of Philip Morris. The Illinois Supreme Court has cut in half the $12 billion bond the cigarette maker must post to appeal a multi- billion dollar verdict against the company. The move saves Altria from a potential cash crunch. In after hours trading, the stock moved up almost $4, to $44.40 a share.

The NASDAQ`s most active issue, Microsoft (MSFT), up $0.54.

Followed by Cisco (CSCO), with a $0.90 gain.

A similar rise in Intel (INTC).

But Gilead Sciences (GILD) tumbled $4.15 after J.P. Morgan Brokerage downgraded it from "over weight" to "neutral."

Qualcomm (QCOM) moving up $1.44. The company sees fourth quarter and full year earnings at the high end of its previous estimate. Its full year earnings estimate forecast was for $1.40 to $1.42 a share.

Dell Incorporated (DELL) up $1.03.

A $1.31 rise in Amgen (AMGN).

Applied Materials (AMAT) moved up $0.80.

An $0.08 gain in Oracle (ORCL).

And Yahoo! (YHOO) gained $1.19 a share.

eCollege.com (ECLG), what a gain it had, up nearly 32 percent. That`s a positive reaction to the company`s planned acquisition of Datamark Incorporated (DMK.TO) for $72 million. That should cause a big boost in the company`s revenues next year.

And then Internet Initiative Japan (IIJI) moving up $1.82, or 26 percent. Nippon Telegraph & Telephone (NTT) has increased its stake in Internet Initiative from about five percent to 31 percent.

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.

09/16/03: Market Stats

			       
				      NET    PERCENT
                         CLOSE     CHANGE     CHANGE
DOW CLOSE              9567.34    +118.53      + 1.3
HIGH                                         9571.13
LOW                                          9449.16

NASDAQ COMP.           1887.25     +41.55       +2.3
HIGH                                         1887.87
LOW                                          1848.41

VOLUME                                       1,368.4
PREVIOUS                                     1,134.8
UP VOLUME                                    1,151.1
DOWN VOLUME                                    207.5

DOW TRANSPORTS         2773.38     +40.40      + 1.5
DOW UTILITIES           246.31      +2.10       + .9
CLOSING TICK                                    +668

S&P 500                1029.32     +14.51      + 1.4
S&P 100                 517.36      +7.40      + 1.5
MIDCAP 400              526.47      +6.34      + 1.2
REUTERS/CRB             237.67      -2.75      - 1.1

NYSE COMPOSITE         5800.18     +69.74      + 1.2
VALUE LINE              333.31      +4.76       1.45
RUSSELL 2000            515.66      +8.02       1.58
WILSHIRE 5000          9979.04    +136.12       1.38

U.S. TREASURIES
5-YEAR NOTE 3.125%
Sept. 15,2008        100  1/32      +1/32       3.12

10-YEAR NOTE 4.25%
Aug. 15,2013          99 24/32      -3/32       4.28

30-YEAR NOTE 5.375%
Feb. 15, 2031        102 18/32      -5/32       5.20

LEHMAN BROS.
LONG BOND INDEX        1709.94      -8.44


DOW CLOSE              9567.34    +118.53      + 1.3
ADVANCES                                        2358
DECLINES                                         902
NEW HIGHS                                        173
NEW LOWS                                          13

                                      NET    PERCENT
NYSE MOST ACTIVES    4PM CLOSE     CHANGE     CHANGE
NT     Nortel Networks    4.50       +.37       +9.0
LU     Lucent Tech        2.31       +.09       +4.1
GE     GE                31.93       +.53       +1.7
TTN    Titan Corp        21.29      +4.33      +25.5
TSM    Taiwan Semi       11.70       +.40       +3.5
AOL    AOL Time Warner   16.05       +.28       +1.8
PFE    Pfizer            31.99       +.13        +.4
NOK    Nokia Corp        15.83       +.45       +2.9
MU     Micron Tech       13.62       +.40       +3.0
HD     Home Depot        33.30       +.52       +1.6

NASDAQ CLOSE           1887.25    + 41.55      + 2.3
VOLUME                                       1,796.2
PREVIOUS                                     1,466.3
ADVANCES                                        2200
DECLINES                                        1009

NASDAQ ACTIVES
MSFT   Microsoft         28.90       +.54       +1.9
CSCO   Cisco Systems     21.29       +.90       +4.4
INTC   Intel             28.91       +.92       +3.3
GILD   Gilead Sciences   61.86      -4.15       -6.3
QCOM   Qualcomm          44.89      +1.44       +3.3
DELL   Dell Inc          34.60      +1.03       +3.1
AMGN   Amgen             69.81      +1.31       +1.9
AMAT   Applied Matl      21.38       +.80       +3.9
ORCL   Oracle            12.53       +.08        +.6
YHOO   Yahoo!            35.82      +1.19       +3.4

AMEX CLOSE              983.36      + .19       + .0

INDEX SHARES
DIA    DIAMONDS TRUST    96.00      +1.17       +1.2
QQQ    NASDAQ 100        34.40       +.91       +2.7
SPY    S&P DEP.RECEIPTS 103.58      +1.49       +1.5

STOCKS IN THE NEWS
IP     Intl Paper Co     41.00      +1.18       +3.0
KO     Coca Cola Co      42.92       -.58       -1.3
UPS    United Parcel     63.96      +1.35       +2.2
BSX    Boston Scientific 66.50       +.48        +.7
GPI    Group 1 Auto      38.65      -1.40       -3.5
SAH    Sonic Automotive  26.66      -1.04       -3.8
UAG    United Auto       23.37      -1.02       -4.2
KKD    Krispy Kreme      42.05       -.65       -1.5
MRN    Med Staff Ntwk     7.62      -1.05      -12.1
CNJ    Cole Nation       12.00      +2.24      +23.0
C      Citigroup         44.70       +.54       +1.2
ECLG   Ecollege.Com      19.35      +4.67      +31.8
IIJI   Internet Initiat   8.82      +1.82      +26.0