Program: Friday, September 26, 2003

A Big Meeting At The Big Board
A New Hang Up For The Do Not Call List
Market Monitor-Jim Grinney, Chief Investment Officer for Northern Trust Bank of Florida
The Last Word: IBM's Smart Cart
The Week Ahead
Paul Kangas' Stocks In The News
Market Stats

09/26/03: A Big Meeting At The Big Board

SUSIE GHARIB: The staff of the New York Stock Exchange met their new boss today. John Reed, the new Interim Chairman of the NYSE, came here this afternoon to talk with executives of the exchange. Reed`s visit comes a day after Carl McCall announced his resignation as lead director of the NYSE board. As Scott Gurvey reports, the big board is now gearing up for a new era.

SCOTT GURVEY, NIGHTLY BUSINESS REPORT CORRESPONDENT: There`s a new sheriff in town and by all estimates John Reed will leave his mark on the New York Stock Exchange, even if his reign as interim chief executive is, as he plans, only a few months in duration. The New York Stock Exchange board of directors named Reed to the post last weekend and today the former head of Citigroup (C) returned to the United States from a vacation in France. Many who knew him in his banking days say he is the right man for a tough job.

ROBERT ALBERTSON, CHIEF STRATEGIST, SANDLER O`NEILL: You`re going to get one big, one big gust of fresh direct air. It may surprise you. He may come up with conclusions and thoughts that a lot of us haven`t considered. So there`s room for surprise here. He`s an out of the box thinker. But there will be no doubt where he`s going and why.

GURVEY: Dick Grasso is gone and so, too, is Carl McCall, the board member who headed the compensation committee. But many expect Reed to ask for most, if not all, of the current board members to resign. Creating a new board structure and naming new board members top Reed`s to do list of tasks. Reed and his board must also find a permanent CEO and set compensation formulas for executives. Then comes the restructuring of the exchange itself. SEC Chairman William Donaldson is said to believe the NYSE should separate its trading and regulatory functions. Reed met with Donaldson today. Reed also must consider the future of the specialist system. Many believe an electronic trading system with multiple market makers would be better for investors.

NICHOLAS ECONOMIDES, ECONOMICS PROFESSOR, NYU STERN: What happens practically right now is the specialists create the conditions for people to trade and they are very richly rewarded for creating these markets. The method that I`m proposing is going to create the markets by itself and nobody would have to get rewarded for creating them. They will be there and it will be more efficient.

GURVEY: A proposal calling for the end of the specialist system would be a tough sell. It would be nothing less than a revolution for an institution that traces its history back more than 200 years. 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.

09/26/03:A New Hang Up For The Do Not Call List

SUSIE GHARIB: The national do not call list has been put on hold again. This time the registry is hung up on first amendment issues. Stephanie Woods looks at the issues facing the anti-telemarketing program.

STEPHANIE WOODS, NIGHTLY BUSINESS REPORT CORRESPONDENT: Shortly after Congress voted to remove a technical legal challenge to the national do not call registry, another court threw up an even bigger obstacle. A federal district judge in Denver found the registry unconstitutional because it blocks commercial calls but not calls from charities, political parties and other interest groups. Lawmakers say the court is wrong.

SEN. BYRON DORGAN (D), NORTH DAKOTA: All we have done is to empower people to affect their own right of privacy in a positive way. I fail to see how a court can say that violates the constitutional right of someone who wants to bother someone by putting a call in over a telephone line that the family paid for but doesn`t want to receive the call. It`s just a Byzantine ruling by the court.

WOODS: The Federal Trade Commission plans to appeal the ruling, but telemarketers argue the government shouldn`t be in the business of blocking calls.

TIM SEARCY, EXECUTIVE DIRECTOR, AMERICAN TELESERVICES ASSOCIATION: A ringing phone is a ringing phone. Only after you pick up do you make the decision of whether or not you want to take that call. And the reality is, it`s not up to the government to decide what happens once you pick up that phone.

WOODS: The Supreme Court may make the final call. Legal experts say it could be a chance for the court to shape the distinction between commercial and public speech.

JOSEPH VAN EATON, ATTORNEY, MILLER & VAN EATON: It`s an opportunity for the court to either uphold the precedent of the last 50 years or to begin to equate public debate with the sale of vacuum cleaners. And, frankly, the problem with the latter is, if we start equating public debate with selling vacuum cleaners, we`re going to end up with no debate at all.

WOODS: There`s still confusion over whether telemarketers will keep from calling people who`ve already put their numbers on the national registry. In the meantime, you can ask telemarketers to remove your name from their lists. 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.

09/26/03: Market Monitor-Jim Grinney, Chief Investment Officer for Northern Trust Bank of Florida

PAUL KANGAS: My guest market monitor this week is Jim Grinney, Chief Investment Officer for Northern Trust Bank of Florida. Welcome back to NIGHTLY BUSINESS REPORT, Jim. Good to see you.

JIM GRINNEY, SENIOR VICE PRESIDENT & CHIEF INVESTMENT OFFICER, NORTHERN TRUST: Thank you. Nice to be here.

KANGAS: You know, the stock market has been gathering impressive upward momentum since the lows of March.

GRINNEY: Yes.

KANGAS: And now it seems to have hit a stone wall here. What do you think the problem is all of a sudden?

GRINNEY: Actually, we`ve gone into a trading range. What`s happened is the market is taking a wait and see attitude. Remember, the second quarter earnings actually were above expectations. Sixty-five percent of the companies beat the numbers.

KANGAS: Now we`ve got third quarter to worry about.

GRINNEY: Now we have third quarter. And remember that nothing is in a straight line. We still have some question marks out there. Consumer confidence, as you saw today, was down just a tick. The last couple days oil prices went up. Before that it was the initial jobless claims, that have not gone down yet. So the market climate is a wall of worry. There`s always going to be some of these things out there to be concerned about and right now I think second, third quarter earnings are going to help that overall situation.

KANGAS: They`ll be good enough to give us another boost?

GRINNEY: They`ll be good enough, yes.

KANGAS: What about interest rates here? You`re a banker. Have we bottomed out for sure or could we go back and visit those lower levels?

GRINNEY: Conceivably, we could go down and visit those lower levels. But when you`re down at 40 year lows or 45 year lows in rates, I mean you`re talking such small gradations that for all practical purposes we probably have seen the bottom.

KANGAS: So you think the refinancing boom is over?

GRINNEY: The refinancing boom at this point appears to have leveled off and in some cases have gone down. It very likely -- the best part of it is behind us.

KANGAS: And some of the stocks involved in that business have shown some weakness lately. I guess that`s the proof of the pudding, you might say.

GRINNEY: Yes, they have. Yes, they have.

KANGAS: What areas do you think look the strongest now, from here to the end of the year. What stock groups?

GRINNEY: That`s a short time frame.

KANGAS: Yes.

GRINNEY: If you believe that the economy, in fact, has turned around and we have six quarters now behind us of positive GDP growth -- again, earnings have turned, analysts are raising estimates in every different industry -- then I think you have to position yourself in those companies that are economically sensitive. Two examples that I`d point out -- and I do, by the way, own these, as do my clients -- one is Staples (SPLS), the office supply place. As you see a pick up in business, so, too, does their business grow. And they`re one of the leaders at Internet business to business activity. And the second is in the technology area, Intel (INTC). That, too, as you see the replacement cycle coming around, which it has already started to do, Intel chips, as you know, are everywhere so.

KANGAS: So you would be buying these two issues now?

GRINNEY: Am now and own them for my clients and myself.

KANGAS: Let`s go back to your last visit with us February 21 of this year. You recommended some stocks that you had liked on previous visits that hadn`t done particularly well, but since this last visit they`ve done very well. You said stick with them and that was good advice. United Parcel Service, UPS (UPS), was in the high $50s.

GRINNEY: Right.

KANGAS: It`s now in the mid $60s. Dell Computer (DELL) was around $26 and now it`s, of course, in the mid $30s.

GRINNEY: Right.

KANGAS: And Sigma-Aldrich (SIAL) you liked around $44. It`s now in the early $50s. And the only new recommendation at that time was Johnson and Johnson (JNJ), which is only down about 2 1/2, 3 points. Are you still with all of them?

GRINNEY: We still are with all of them. I will say the whole drug area is under a cloud right now, obviously, with the issue of the pricing of drugs.

KANGAS: Right.

GRINNEY: J&J is in the same boat, although they have a lot more over the counter drugs.

KANGAS: But you would buy them, again, at these levels?

GRINNEY: All of them with the exception -- J&J I`d hold just to get a better sense for how this is going to develop in Washington.

KANGAS: OK.

GRINNEY: The others would still be buyable, yes.

KANGAS: You know, gold bouillon and the gold stocks have been putting in stellar performances recently. Are you into that at all or do you think that that signals trouble ahead?

GRINNEY: We`re not into the gold stocks, primarily because the only prices of gold are set by psychology. And there`s no earnings fundamentals really behind it, some supply and demand, but mostly psychology. And the price run-up we`ve seen has been, I think, a reflection of the market sniffing out an economic recovery. Typically inflation follows, although this time around we`ve seen inflation continue to remain subdued, two percent in the CPI because productivity is very high.

KANGAS: But you don`t see deflation as a threat here?

GRINNEY: No.

KANGAS: OK.

GRINNEY: At this point, we do not.

KANGAS: And just briefly, what about the ethics on Wall Street? Do you think this has been slowing the market a bit, the problems that the New York Exchange, the mutual funds --

GRINNEY: Oh, no question. No question. You know, we thought we had seen the bulk of the problems come out with Enron and Tyco (TYC) and WorldCom (WCEQ.OB), etc. And then you have the problems with Mr. Grasso. And it is not over yet. It, again, there`s a cloud. It`s depressing people. But when you think long- term, this is a cleansing process. And we are working out of all these. They`re coming to the fore. We have a lot more corporate governance than in the past. So ultimately it`s a good thing.

KANGAS: It just makes the hurdle a little higher, too, higher?

GRINNEY: Yes, it does.

KANGAS: OK.

GRINNEY: Yes, it does.

KANGAS: Jim, thanks very much for being with us.

GRINNEY: My pleasure. Thank you.

KANGAS: My guest, Jim Grinney of Northern Trust Bank of Florida.

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.

09/26/03: The Last Word: IBM's Smart Cart

SUSIE GHARIB: And finally IBM (IBM) wants to make your trip to the grocery store a lot easier. Big Blue hopes its new smart cart will speed your trip down the aisle. The high tech shopping cart has a computer screen that can be swiped with the shopper`s store card, which brings up their purchase history, likes and dislikes, as well as store specials. The cart also talks, telling the shopper what items will go with other items that are placed in the basket, like suggesting wine pairings. Paul, the smart cart also offers friendly reminders about items that you may have forgotten, like toothpaste or toilet paper.

KANGAS: I may forget toothpaste, but that`s about it.

GHARIB: I think if it`s really a smart cart, it should do the shopping for you and put them in your car.

KANGAS: Well, I hope it doesn`t talk while you`re waiting in line at the cashier.

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.

09/26/03: The Week Ahead

SUSIE GHARIB: Here`s a look at what`s happening next week, a busy week. Our Friday market monitor guest is Douglas Cliggott, President and Investment Strategist at B&P Research. Monday, it`s August personal income and spending; Tuesday, the Conference Board`s September report on consumer confidence comes out; Wednesday, it`s August construction spending and the Institute of Supply Management`s Manufacturing Index for the month of September; Thursday, August factory orders; and then on Friday, it`s the September jobs report.

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.

9/26/03: "Paul Kangas' Stocks In The News"

PAUL KANGAS: Well, Wall Street opened slightly lower on some light carryover selling from yesterday`s late downturn, but that upward revision in second quarter GDP kept the early decline a minor one. At the outset, the Dow fell only about a dozen points and the NASDAQ Index off just 3. That unexpected drop in the Consumer Sentiment Index put stocks a bit more on the defensive, but trading was light, with little other news to sway investors. At noontime, the Dow was off 27 points and the NASDAQ was down about 14 points. Growing nervousness about upcoming third quarter earnings and the normal pre- weekend evening up operations kept the market modestly lower for the rest of the day. The Dow Industrial average closed down 30.88 points, at 9, 313.08. However, it fell in four of this week`s five sessions, for a net loss overall of 331 3/4 points, or 3.4 percent. The NASDAQ Composite fell 25.17, to end at 1, 792.07 today. It also fell on four of five days this week, and tumbled 113 points, or six percent overall. The Standard & Poor`s 500 Index was down 6.42, ending at 996.85 today. Over on the bond market, the 10 year note rose 23/32, to 102 even, and that put the yield at a flat four percent.

The most active issue, as I mentioned, Motorola (MOT) trading 31 million shares, coming up from a low during the day of $11.80. J.P. Morgan also upgraded the stock from "neutral" to "over weight." It closed at the high of the day.

NorTel Networks (NT) was down $0.19.

Followed by Lucent Technologies (LU), with a $0.04 loss.

Then General Electric (GE) down $0.51.

And Eastman Kodak (EK) down another $0.75. It was off nearly $5 yesterday after announcing a slash in its dividend from $1.80 to only $0.50 a year. That`s a 70 percent cut.

Liberty Media (L) was up $0.20.

AOL Time Warner (AOL) down $0.32.

Pfizer (PFE) edged up $0.03 a share.

Nokia (NOK) was a $0.19 gainer. The company unveiled a sweeping reorganization which will break operations into four business groups -- mobile phones, multi- media, networks and enterprise solutions. A positive effect on the stock.

Hewlett Packard (HPQ) was up $0.14, tenth in big board volume.

3M Company (MMM) up $1.84. That helped the Dow Industrial Average a bit. Bank of America (BAC) has upgraded it from "neutral" to "buy" and now has a $170 a share target for the stock in the belief that the company`s LCD business, that`s liquid crystal displays, will grow some 30 percent per year.

Northrop Grumman (NOC) moved up $1.23 after the Jefferies Brokerage upgraded it from "hold" to a "buy."

And John Hancock Financial Services (JHF) rising $2.25. The "Boston Globe" newspaper reports the company is again in the advanced stages of talks with a potential buyer. But John Hancock declined any comment on who it might be. There`s a lot of speculation, of course.

Rite Aid (RAD) was up $0.17. It traded as high as $5.29 after the Smith Barney Brokerage upgraded it from "sell" to a "buy." A real turnabout there.

Allegheny Energy (AYE) was down $0.17. J.P. Morgan downgraded it from "neutral" to "under weight" and the company restated lower its first quarter of 2002 results from a loss of $0.23 to a loss of $0.43 and the second quarter of 2002 from a loss of $0.26 to a loss of $0.27. Also, there`s speculation the company could be in default after the third quarter of this year.

Fisher Scientific International (FSH) down $1.50. The company agreed to sell Bank of America`s securities, 6.6 million common shares for $261 million. That works out to about $39.50 per share, but a little earnings dilution involved with those extra shares out.

Concord EFS (CE) was up $0.64. It traded as high as $14.26. There is speculation the planned buyout of the company by First Data Corporation (FDC) will go through.

And then we see Newmont Mining (NEM) down $1.42, representing a very weak gold group today. A lot of profit taking after gold bouillon hit a seven year high yesterday.

The NASDAQ`s most active issue, Intel (INTC), down $0.18.

Followed by Microsoft (MSFT) with a $0.05 loss.

Cisco (CSCO) dropped a $0.10.

And SINA Corporation (SINA) down $5.24. This is a Chinese Internet portal company and it`s had a huge run up recently, so that`s pure profit taking, no doubt.

Amgen (AMGN) down $0.23 a share, fifth in dollar volume on NASDAQ.

Dell Incorporated (DELL) moved up $0.22 yesterday. It said it`s getting into the consumer electronics business.

Amgen (AMGN) was down $0.23.

Applied Materials (AMAT) a $0.25 loss.

KLA Tencor (KLAC) dropping just over a $1.

And MedImmune (MEDI) down $2.06 per share.

American Business Financial Services (ABFI) fell $1.72, or 25 percent. The company is going to suspend its quarterly cash dividend of $0.08 a share and that had a very negative impact, as you might expect. It did on Kodak (EK), that`s for sure.

SCO Group (SCOX) was down $2.94. This company is a Linux software marketer, among other things, and IBM is counter suing the company, alleging that it is misusing its rights to the UNIX operating system. A little legal going on there.

Research In Motion (RIMM) up $1.57. After the close yesterday, the company came in with second quarter results, better than expected. Earnings of $0.03 versus a loss of $0.18 the prior year. This company makes wireless solutions and markets them and says its next big opportunity is China.

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.

09/26/03: Market Stats

			
             

                                      NET    PERCENT
                         CLOSE     CHANGE     CHANGE
DOW CLOSE              9313.08     -30.88       - .3
HIGH                                         9358.28
LOW                                          9303.82

NASDAQ COMP.           1792.07     -25.17       -1.4
HIGH                                         1821.57
LOW                                          1792.06

VOLUME                                       1,443.0
PREVIOUS                                     1,524.4
UP VOLUME                                      396.1
DOWN VOLUME                                  1,005.8

DOW TRANSPORTS         2663.83     -33.29      - 1.2
DOW UTILITIES           248.98      +2.57      + 1.0
CLOSING TICK                                    -220

S&P 500                 996.85      -6.42       - .6
S&P 100                 499.61      -3.01       - .6
MIDCAP 400              508.47      -6.19      - 1.2
REUTERS/CRB             239.97      -2.54      - 1.1

NYSE COMPOSITE         5644.14     -35.49       - .6
VALUE LINE              317.93      -4.67      -1.45
RUSSELL 2000            485.29      -9.77      -1.97
WILSHIRE 5000          9646.46     -79.94      -0.82

U.S. TREASURIES
5-YEAR NOTE 3.125%
Sept. 15,2008        101           +17/32       2.90

10-YEAR NOTE 4.25%
Aug. 15,2013         102           +23/32       4.00

30-YEAR NOTE 5.375%
Feb. 15, 2031        106 18/32     +27/32       4.94

LEHMAN BROS.
LONG BOND INDEX        1761.88     +15.81


DOW CLOSE              9313.08     -30.88       - .3
ADVANCES                                        1202
DECLINES                                        2023
NEW HIGHS                                         42
NEW LOWS                                          16

                                      NET    PERCENT
NYSE MOST ACTIVES    4PM CLOSE     CHANGE     CHANGE
MOT    Motorola          12.53      unch.      unch.
NT     Nortel Networks    4.09       -.19       -4.4
LU     Lucent Tech        2.25       -.04       -1.8
GE     GE                29.87       -.51       -1.7
EK     Eastman Kodak     21.40       -.75       -3.4
L      Liberty Media     10.11       +.20       +2.0
AOL    AOL Time Warner   15.20       -.32       -2.1
PFE    Pfizer            30.56       +.03        +.1
NOK    Nokia             15.26       +.19       +1.3
HPQ    Hewlett-Packard   19.40       +.14        +.7

NASDAQ CLOSE           1792.07    - 25.17      - 1.4
VOLUME                                       1,849.4
PREVIOUS                                     2,047.8
ADVANCES                                         814
DECLINES                                        2335

NASDAQ ACTIVES
INTC   Intel             27.27       -.18        -.7
MSFT   Microsoft         28.19       -.05        -.2
CSCO   Cisco Systems     19.96       -.10        -.5
SINA   Sina Corp         33.68      -5.24      -13.5
AMGN   Amgen             65.15       -.23        -.4
DELL   Dell Inc          34.14       +.22        +.7
AMGN   Amgen             65.15       -.23        -.4
AMAT   Applied Matl      18.42       -.25       -1.3
KLAC   KLA Tencor        51.79      -1.02       -1.9
MEDI   MedImmune         32.00      -2.06       -6.1

AMEX CLOSE              986.27    - 11.77      - 1.2

INDEX SHARES
DIA    DIAMONDS TRUST    93.30       +.05        +.1
QQQ    NASDAQ 100        32.58       -.21        -.6
SPY    S&P DEP.RECEIPT   99.95       -.33        -.3

STOCKS IN THE NEWS
MMM    3M Co            143.45      +1.84       +1.3
NOC    Northrop Grumman  86.15      +1.23       +1.5
JHF    John Hancock      34.30      +2.25       +7.0
RAD    Rite Aid Corp      5.18       +.17       +3.4
AYE    Allegheny Energy   8.76       -.17       -1.9
FSH    Fisher Sci Intl   39.25      -1.50       -3.7
CE     Concord EFS       14.00       +.64       +4.8
NEM    Newmont Mining    38.91      -1.42       -3.5
ABFI   Amer Business      5.15      -1.72      -25.0
SCOX   SCO Group Inc     14.29      -2.94      -17.1
RIMM   Research in Mot   37.29      +1.57       +4.4