To view previous transcripts, check our list of recent broadcasts or select a year below to view older transcripts. Also, search recent transcripts by keyword or visit our searchable archives hosted by Quote.com.
| Select a year: | 2000 | 2001 | 2002 | 2003 | 2004 |
|
Program: Tuesday, September 30, 2003
09/30/03: Manufacturing In The Midwest Is Getting Weaker
SUSIE GHARIB: Wall Street wrapped up a winning quarter on a losing note. The Dow Industrials fell 105 points, and the NASDAQ was down 37. That sell-off was due partly to a bigger-than-expected drop in consumer confidence, and a plunge in the Chicago Purchasing Manager's index. The news came on top of a pessimistic outlook for manufacturing in the Midwest. Diane Eastabrook reports. DIANE EASTABROOK, NIGHTLY BUSINESS REPORT CORRESPONDENT: The U.S. lost roughly 3 million, or one out of every six, factory jobs in the past decade. About half of them disappeared over the last three years. Today, the Federal Reserve Bank of Chicago began a project to find out if manufacturing is dying in the U.S. The statistics aren't promising. At the end of World War II, one in every three Americans worked in a factory; today, one in eight does. WILLIAM STRAUSS, SR. ECONOMIST, FEDERAL RESERVE BANK/CHICAGO: If these trends continue and productivity - short - productivity gains, one could see those share (sic) of employment continuing to go down. EASTABROOK: Economists fear the industries that could disappear from the U.S. are those that pay the lowest wages. The apparel and textile industries face the greatest risk. But economists say industries that require more skill should survive. Some firms are improving sales by producing more sophisticated products so they can compete globally. J. BRADFORD JENSEN, DEPUTY DIR., INSTITUTE FOR INTERNATIONAL ECONOMICS: I think industries that are R&D intensive, and capital intensive, and high-skill intensive are most likely to survive and prosper. Instruments and controls, parts and transportation, chemicals, all those industries I think are likely to do well. EASTABROOK: While job growth has been flat in manufacturing over the past 50 years, it has been rising steadily in the service industry. Economists say that could mean the U.S. is evolving into a service-based society, instead of a manufacturing based one. The Chicago Fed Bank wants to know if factories shed jobs in recent years because of the recession, or because of a structural change in the economy. It says one problem can be corrected with interest rate cuts, but the other problem can't. MICHAEL MOSKOW, PRES., FEDERAL RESERVE BANK/CHICAGO: If it's a structural change, that's a different situation entirely. And monetary policy is a very blunt instrument, as was pointed out, it covers the entire economy, it can't be targeted to one specific industry. EASTABROOK: Many of the economists here are optimistic an improving economy driven by an investment boom will bring back some factory jobs. But they're less optimistic about the overall future for U.S. manufacturing. Diane Eastabrook, NIGHTLY BUSINESS REPORT, Chicago.
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.
PAUL KANGAS: Investors bailed out of Sun Microsystems shares today, after the company warned late yesterday that it's going to lose $0.10 a share in the quarter ending today. That's five times as much as Wall Street had expected. And as Scott Gurvey reports, the news reflects a fundamental change in how Sun's customers are doing business. SCOTT GURVEY, NIGHTLY BUSINESS REPORT CORRESPONDENT: Shares of Sun Microsystems took a beating today after the company pre-announced a loss of $0.07 to $0.10 for what it calls a difficult quarter. The company is also taking a $1 billion charge and revising reports from the prior quarter to show a loss. Several analysts downgraded the stock. Analysts were most upset by signs of weak sales and tough competition in the quarter ending today. Sun's revenue has now declined for nine quarters in a row. Sun was especially hard hit by the bursting of the Internet bubble, because its products had been especially popular with Internet infrastructure companies. GEORGE ELLING, COMPUTER ANALYST, DEUTSCHE BANK: At one point, they were growing 65 percent on revs. And when the dot-com boom ended and telecom fell on tough times, it has really taken down Sun dramatically, and it has been a slow spiral since. So they've had difficulty regaining any momentum. And clearly, the announcement yesterday that first quarter results were going to be somewhat lower continues the trend. GURVEY: Deutsche Bank has an investment banking relationship with Sun. Sun's customers are now moving from Sun's UNIX-based servers to other companies' Linux systems at a third of the cost, and Sun is losing market share. But Sun is a company which has reinvented itself more than once, and in spite of its current difficulties, many analysts see an eventual recovery. ELLING: I think the company does have a large install base which it can nurture, and we're hopeful that when IT spending turns, that things are going to look quite different for the company, and we're hopeful that company can turn around. They also have a very strong balance sheet. GURVEY: One wild card: with a stock price below $4, Sun is seen as a possible takeover target. Some analysts say it is worth as much for its customer list as it is for its technology. 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.
09/30/03: "CEO Outlook," -Brian Halla, Chairman & CEO of National Semiconductor
SUSIE GHARIB: Well, obviously, technology spending is a key driver for the economy. New reports this week show that semiconductor sales have been increasing, thanks to strong demand in the consumer, computer and wireless sectors. As we continue our series, "CEO Outlook," we get the outlook tonight from Brian Halla, the chairman and CEO of National Semiconductor. Mr. Halla, a pleasure to have you on the program this evening. BRIAN HALLA, CHMN. & CEO, NATIONAL SEMICONDUCTOR: Thanks for having me, Susie. GHARIB: So this pickup in semiconductor sales, do you think this is seasonal or is it the beginning of a new business cycle? HALLA: Watching the rest of your stories here on Sun Microsystems, I feel like I got off at the wrong bus stop. The market is down. The consumer confidence is down. The Yankees lost. I mean, as far as we're concerned, things are looking pretty good. Our bottom line is growing, the top line is growing and we're feeling pretty good. GHARIB: Well, how about for the industry? When you look at not just for National Semiconductor, but when you see the semiconductor reports showing that sales have been on the rise, is this a seasonal thing or is this the beginning of a recovery? HALLA: Well, when we announced our earnings, we said, we'll hold short of saying that this is an industry-wide recovery. We know that National is recovering. We took several steps to improve our bottom line. Those results are showing now. We also said that we would grow our top line by 4 to 7 percent in the quarter that we're in. We held short of calling it a recovery because we said Nokia (NOK) and Intel (INTC) and Dell (DELL) should do that for their industries. But what we said was the order patterns of our key OEMs, particularly the key OEMs in the handset, the PC and the display business, have given us a strong indication that they certainly think that there is a recovery. And the backlog that we had in place coming into the quarter gave us the visibility we needed to project that 4 to 7 percent increase. GHARIB: Well, in your conversations with CEOs from other companies, what are they telling you about their spending plans? HALLA: It's starting to look better and better. I'll give you, from my own perspective, my CIO came into my office the other - my chief information officer came into my office the other day, and he says, get ready to start spending. He says, I've had to upgrade 175 laptops for our field sales force. He says, now we've got to start upgrading the boxes in the office. And I think that that isn't just confined to National Semiconductor, I think that's industry-wide. And I think as soon as we see IT spending, then we can take the seasonality factor out of it. But even if this is somewhat seasonal, if you think about it, last year at this time, we went into this season predicting, maybe there wouldn't be a Christmas, maybe there wouldn't be a back-to-school. And sure enough there wasn't. And this year there is clearly going to be a back- to-school market and a Christmas build market. GHARIB: All right. So how are you responding to that new demand? Are you going to be ramping up? HALLA: Yes. We're at 85 percent utilized in the front end which is fairly consistent with the rest of the industry. The good news, as I said, about having the backlog in place coming into the quarter is that we have enough visibility in what will actually be purchased that we can load the front end of our fabs with a higher mix and higher ASP products. GHARIB: All right. So step back a little bit from National Semiconductor. If there is a recovery in the economy, what sectors of the technology and world are the best opportunities? Which ones do you see expanding? HALLA: You know, it's interesting, Susie. What we saw is Japan starting to drive a recovery of their own, maybe a couple of quarters earlier than the rest the world. And you look at the products that were being consumed, the product that we're selling off the shelf. It was obviously handsets, but handsets that were fully featured. It was DVD player, a lot of consumer products. And what we are seeing now is the same thing as extending into Asia and China with SARS behind us. We are seeing consumption there. I think you'll see a heavy consumer factor here driving the market. But you'll also see a lot of notebook PC sales. That's robust for us as we have been saying for the last several quarters. GHARIB: We just have a few seconds left. What about pricing power, I understand some of your prices have been moving up on an average level, do you have pricing power? HALLA: You could call it that, but also the other way to get prices up is to be able to load a richer mix of non-commodity products at the front end where the ASPs and the margins are higher. GHARIB: All right. We'll leave it there. Thank you very much, Mr., Halla. A pleasure having you. HALLA: My pleasure, Susie, thanks. GHARIB: We have been speaking with Brian Halla, chairman and CEO of National Semiconductor.
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.
09/30/03: 3rd Quarter Report With Paul Cherney, Chief Market Analyst at Standard & Poor's
PAUL KANGAS: Joining us now to review what the major stock averages did in this year's third quarter, along with a rundown of some of the best winners and worst losers, is Paul Cherney, chief market analyst for Standard & Poor's. Nice to see you again, Paul, welcome. PAUL CHERNEY, CHIEF MARKET ANALYST, STANDARD & POOR'S: Hi, Paul. KANGAS: After a strong second quarter, stocks followed through on the upside in the last three months but the gains were relatively modest, is that correct? CHERNEY: That is correct. The Dow Jones Industrials managed a gain of 3.2 percent in the quarter. The S&P 500 was up 2.2 and once again the NASDAQ 100 was pacing the gains to the upside with a gain of 8.5 percent. KANGAS: That was the best percentage move. Let's have a look at that Dow 30, the best three gainers in the Dow 30. Intel (INTC) topped the list there, didn't it. CHERNEY: Intel, you know, semiconductors are the bellwether for the techs. And the Semiconductor Industry Association has six consecutive monthly improvement in demand for chips. KANGAS: And then Caterpillar (CAT) and General Motors (GM). CHERNEY: CAT saw improving retail sales growth in their machinery and engine business. And GM has a hefty dividend, around 4.8 percent. KANGAS: Well, those two old timers doing well would indicate a stronger economy ahead, you would think. Let's look at the losers though. Kodak (EK) the big loser. CHERNEY: It's the opposite side of the GM situation. They slashed their dividend to expand their digital products line. And income investors dumped the stock. KANGAS: And SBC Communications (SBC). CHERNEY: They're having problems with increased competition in the local markets and it's expected to weigh on their revenues. KANGAS: You wouldn't think you'd see Merck (MRK) on the big losers list but there it is. CHERNEY: In August, AstraZeneca's (AZN) cholesterol drug Crestor got FDA approval, and people are worried it is going to impact Merck's Zocor sales. KANGAS: Right, right. Let's look over at the Standard & Poor's 500, and we see two good gainers, Advanced Micro (AMD). CHERNEY: Advanced Micro, it's a semiconductor chip story. KANGAS: Just like Intel, had a good gain. And then Novell (NOVL)? CHERNEY: In August, the CFO said that they were starting to see some sales growth in the software related to their computer log-in access software. KANGAS: OK. On the downside on the S&P 500 we see NVIDIA (NVDA). Boy, that's a drop. CHERNEY: Video graphics producer and recently they have been downgraded on fears of competition from foreign firms. KANGAS: Mm-hmm, and Qwest (Q)? CHERNEY: It suffers from concerns about a lack of revenue growth. KANGAS: OK. Let's turn now then to the NASDAQ 100, not the Composite but the NASDAQ 100, and we see RF Micro Devices (RFMD) leading the way higher there. CHERNEY: It's a chip story, too. This is wireless communication chips. And they recently raised their quarterly outlook. KANGAS: OK. And Sanmina-SCI (SANM), nice gain, 53 (ph) percent. CHERNEY: Yes, electronics manufacturing services. And they did well because they expected increase in demand for capital expenditures. KANGAS: Well, let's see what didn't do well on the NASDAQ 100. And that was NVIDIA again, which is a member here as it was in the 500. And you gave us the reasons. CHERNEY: Yes. Right, same reasons. KANGAS: And then of course, Sun Microsystems, which had terrible news out yesterday. CHERNEY: Right. They just delivered a warning and took a non-cash charge. Some are really concerned that as the capital expenditures start to ramp back up, there might be a move away from UNIX-based systems to Linux-based. KANGAS: OK, very interesting, Paul. We have about a minute left. Give us your thoughts on the market going into the fourth quarter. Your third-quarter forecast was excellent. You said modest gains for the economy and the markets. Good call. What about now? CHERNEY: It is going to be similar although there could be a little more volatility as we move through November and into the beginning of December. Things look good. I was talking to Sam Stovall, our chief investment strategist. And he has done studies looking at first years of bull markets. We're coming up on October 9, the one-year anniversary of the beginning of this new bull. And performance has been pretty in-line with historical standards for the S&P. In the second year of a bull market, so starting from October 9 this year going forward, the average gain for the S&P in the second year is about 14 percent. KANGAS: OK. All right. We're going to have to leave it there, Paul, but thanks very much, excellent review and we always look forward to your next visit. CHERNEY: Thank you. KANGAS: My guest, Paul Cherney, chief market analyst at Standard & Poor's.
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. 09/30/03: Last Word: Neiman-Marcus Christmas Catalog
SUSIE GHARIB: And finally tonight, for 77 years it has been the hallmark of holiday giving. And from the fun to the fabulous, this year's Neiman-Marcus (NMG) Christmas book is no exception. It features his-and-her robots for only $400,000 a pair. The mechanical marvels are adult-sized, interactive, and can handle daily chores around the house. The most expensive item this year is a plane, four unique planes, to be exact, four Lear (LEA) jets fitted out in luxury. Top dollar for one of these is almost $13 million bucks. On a smaller budget? How about a Swarovski Crystal chandelier? This is inspired by Japanese cherry trees, and has 200 tiny lights intermingled with the crystal blossoms. And Paul, you can light up your wife's life with that for about 25 grand. KANGAS: I thought I was the light of my wife's life. (LAUGHTER) GHARIB: You probably are. But just to make sure, you know, there is a 44 carat yellow diamond I'm told, that's one of a kind. And I won't even tell you how much that costs. KANGAS: Dreamer.
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. 9/30/03: "Paul Kangas' Stocks In The News"
PAUL KANGAS: Wall Street opened broadly lower even before the Chicago Purchasing Manager's report showed a slowing pace of growth in business activity. Not helping was a Sun Microsystems' profit warning, which we'll have more on next. And then there was end-of-quarter institutional selling. So the Dow tumbled 140 points at the start, while the NASDAQ Index was down 35. The sell-off gradually attracted buyers, despite news of a larger-than-expected drop in consumer confidence for September. By early afternoon, the Dow was off just 42 points, the NASDAQ down 18. But on continuing negative market breadth and unimpressive volume, sellers took command once more, so the Dow Industrial Average closed down 105.18 points at 9275.06. The NASDAQ Composite was down 37.62 at 1786.94. And the Standard & Poor's 500 fell 10.62 to 995.97. In the bond market, good gains, the 10-year note surged 1 5/32 to 102 17/32, pushing the yield down to 3.94 percent, a 10-week low. Topping the active list on the New York Exchange, Lucent Technologies (LU) trading 21.8 million shares. The stock closing down $0.09. Then General Electric (GE), a $0.56 loss. Enterasys Networks (ETS) tumbling $1.70. That's a 30 percent drop and it traded as low as $3.70. The company is in the communications equipment business. And it says, delayed customer purchasing decisions late in the third quarter, largely because of Hurricane Isabel, will cut revenues below expectations, perhaps by as much as 8 to 13 percent below. Also is forecasting a fourth- quarter loss. Pfizer (PFE) down $0.51. EMC (EMC), a nickel loss, number five in big board volume.. AOL Time Warner (AOL), a gainer, up $0.11. And Nokia (NOK) down $0.30. Motorola (MOT) dropped $0.33. Then NorTel Networks (NT), a $0.16 drop there. Citigroup (C), number 10 in big board volume, down $0.56. ALCOA (AA), one of the Dow stocks, off $1.20. UBS Financial brokerage repeated a reduce rating in the belief the company will report disappointing earnings next week. Moving along, we see Disney (DIS), another Dow stock, was off $0.11 on the close but it traded as high as $20.48 during the day after the company said strong earnings growth is expected next year, driven by gains at its cable and broadcast television networks. But it still ended down on the day. Alliance Capital Management (AC) dropping $2.04. Regulators are probing into alleged mutual fund trading violations at the company. Two employees have been suspended. Then KLM (KLM), one of the best gainers of the day, up nearly 9 percent with that gain of $1.27. The company will form a holding company with Air France (AF). And the deal values KLM's stock at about 16 ¾ euro. And the new company going to be called Air France-KLM, which is rather logical. On the downside, Benchmark Electronics (BHE) fell $3.76. The company did reaffirm third-quarter earnings guidance at $0.44 to $0.48. But one of its largest customers is Sun Microsystems, which is having its problems as we noted earlier. On the upside, Celera Genomics (CRA) rising $0.41. And the company in a joint venture with Applied Biosystems (ABI) had discovered new genetic markers linked to increased heart attack risk. And that knowledge help prevent them perhaps. On the downside again, Trex Company (TWP), off $3 ½, a maker of composite decking material sees third-quarter earnings lower than expected at $1.40 to $1.43. That's down from $1.63 to $1.66 of its previous guidance. It cited poor weather and the higher cost of materials. On the upside, Harris (HRS) rose $1.38. After the close yesterday the company said first-quarter earnings could be as high as $0.38 a share versus the $0.32 Wall Street estimate. The company cites a strong showing by its two government segment businesses. Microsoft (MSFT) topped the active list on NASDAQ, down $1.03. Intel (INTC) lost $0.85. Cisco (CSCO), a $0.61 drop. SINA Corp. (SINA), one of those Chinese Internet portals down almost $3. Amgen (AMGN) off $0.85, number five in volume. Dell (DELL), $0.81 loss there. A $0.55 drop in Sun Micro (SUNW). You heard about all the problems there. Applied Materials (AMAT) down $0.79. A $0.39 drop in Oracle (ORCL). And eBay (EBAY) fell $2.01. On the upside, look at this move, Garden Fresh Restaurants (LTUS), up $4.93. The news, Fairmont Capital will acquire the firm for $16.35 a share in cash. On the downside again, Regeneration Technologies (RTIX) dropping $4.52. The company cut its third-quarter revenue forecast from about 23 million to 20 million because of lower-than-expected orders for its spinal implant products. Major loss there. And Sypris Solutions (SYPR) dropped $2.37, almost a 15 percent loss. The company cut its third-quarter earnings guidance from about $0.22 to only $0.03 to $0.04 a share. 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.
09/30/03:
Market Stats
|
| <%dobanner 11,1901%> |
NBR
appreciates the support of its national underwriters -- A.G.
Edwards, Inc. and Franklin
Templeton Investments. The program is produced
by NBR
Enterprises/WPBT2 and distributed by American
Public Television.
Copyright © 2005 Community
Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms
of use
Click
here to contact NBR.