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: Friday, November 7, 2003
11/07/03: The Latest Employment Report Creates Jobs & A Stock Sell Off
SUSIE GHARIB:More good news for Americans looking for a job and for the economy. The government reported today that 126,000 jobs were created last month, the biggest increase in nine months. Even more encouraging, the unemployment rate dropped to 6 percent. But investors greeted the news with caution: The Dow fell 47 points and the NASDAQ lost 5. Erika Miller reports. UNIDENTIFIED FEMALE: Thank you for calling Adecco (ADO). ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: If you want to see signs of recovery in the job market, come to the Midtown Manhattan office of Adecco, the world`s largest staffing firm. BOB KOVALSKY, NY REGIONAL VP, ADECCO: We are seeing a modest increase in hiring trends. Actually through the course of this year, business has picked up, month-over-month and actually week-over-week. MILLER: It`s a trend that is happening nationwide. Strong demand for temporary workers helped the economy add 126,000 non-farm jobs in October. That`s roughly double the number economists were forecasting. And the unemployment rate dropped unexpectedly to 6 percent, the lowest level in six months. KATHLEEN CAMILLI, U.S. ECONOMIST, CREDIT SUISSE ASSET MANAGEMENT: It`s not only telling us that the job market has stabilized. But it`s telling us that the job market is actually improving now, and we`re seeing new job creation. MILLER: That job creation is happening almost entirely in the services sector, not in manufacturing. In fact, last month factory employment declined for the thirty-ninth month in a row. But economists say dig into the data, and it`s clear the outlook for that sector is improving. CAMILLI: We`ve continued to lose manufacturing jobs, yet the unemployment rate among manufacturing workers dropped a full percentage point. And the work week went up. This implies that manufacturing workers are going back to work, they`re just not going back to work in the big establishments. MILLER: Despite the good news on the labor front, stocks sold off. Investors are concerned signs of an improving economy will encourage the Federal Reserve to raise interest rates sooner rather than later. WILLIAM SULLIVAN, SR. ECONOMIST, MORGAN STANLEY: I believe that if job creation continues to improve, that if the stock market registers solid gains in the months to come, there`s increasing pressure for the Fed to tighten monetary policy early next year. MILLER: Part of the reason economists are optimistic about job creation is the strength in temporary services. They predict many companies now hiring temporary workers will be willing to create permanent positions down the road. Erika Miller, 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.
SUSIE GHARIB: Back now to our top story, the Bush administration says the new job figures are encouraging and show the economy is growing. This afternoon, Washington bureau chief Darren Gersh talked with the president`s budget director, Josh Bolten, and asked him if the numbers prove the jobless recovery is over. JOSHUA BOLTEN, OMB DIRECTOR: And we certainly hope it is, but we need to see more signs. The news that`s out today and the news that`s been out for the past few weeks have been very good. It has been good cause for optimism. But we still have more to go. And so the president`s going to be working very hard pursuing the policies that helped put us into a situation where we`ve got economic growth and job growth to ensure that every American who`s looking for a job can find a job. DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: Now, we had a pretty good GDP number recently. The job numbers are picking up. Are you going to be increasing your forecasts for next year in the upcoming budget? BOLTEN: The latest forecast we`ve done had `04 growth at about 3.7 percent, mostly - and that was - we did that in July. So we are not going to formally renew our forecast until we put out our budget again, and - our budget estimations again in January and February. But I would say that most of the blue chip forecasters have now gone up above that 3.7. I think we will go up somewhat above that 3.7, as well. GERSH: Now, budget season never ends in Washington, but you`re in the middle of the budget season for `05. And there`s talk around town that there`s going to be another tax cut in the budget that would focus on better incentives and increased incentives for retirement accounts and retirement savings accounts. Can we expect something like that in the budget? BOLTEN: I think there`s a good chance of it. The president hasn`t made any decisions yet, but there was a proposal in the president`s budget of the past year for these savings accounts that you referred to that I think are very good policy, put the incentives in the right place. And I would be surprised if the president didn`t want to come back to that kind of proposal for the fiscal year ahead. GERSH: Well, I`m sure you won`t be surprised by this question, which is: how are you going to pay for a tax cut or another tax cut if the deficit next year is looking at something like $500 billion? BOLTEN: Well, the savings proposals I was just referring to don`t have any substantial cost on the budget. In fact, if I recall the numbers correctly, there are even small revenue gainers in the early years and then some small revenue loss compensating in the out years. What these proposals would do would be - correctly align people`s incentives and make it more attractive for people to save, which we do want to encourage in this economy. GERSH: Are we going to see any tax cuts that aren`t paid for in the next budget? BOLTEN: Well, the president had a number of proposals out there. I don`t want to pre-judge what he`s going to decide for his `05 budget. But he has a number of tax cut proposals that are currently on the table that are basically extensions of the tax cuts that were put in place over the last three years and which deserve a lot of the credit for the turnaround in our economic fortunes that we are just now seeing the evidence of in the last few weeks. GERSH: There are reports out now that the administration is working on some kind of cap on Medicare spending so that if a prescription drug plan is passed and the spending goes above projections, that there will be a cap where Congress will have to vote to cut benefits. Is that going to be part of the plan if in fact Congress passes a plan? BOLTEN: I don`t want to insert myself too much into ongoing negotiations, but the president has always had an interest in ensuring that Medicare spending be brought under some reasonable control without posing the prospect of limiting the benefits that our senior citizens deserve. There are a number of ways to do that. We`ve proposed that to the conference committee and to the other members who are going to be voting on Medicare legislation. We hope that they will adopt some serious form of cost containment. GERSH: OMB director Josh Bolten, thank you. BOLTEN: 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.
11/07/03: SEC Chairman William Donaldson Takes A Stand SUSIE GHARIB: Some tough talk today from the head of the Securities and Exchange Commission. At a meeting of the Securities Industry Association in Boca Raton, William Donaldson said it`s time for a new era of disclosure and oversight. Donaldson and the New York Stock Exchange`s interim chairman, John Reed, also defended new proposals to reform the big board. Jeff Yastine reports. JEFF YASTINE, NIGHTLY BUSINESS REPORT CORRESPONDENT: It was a blunt speech. SEC Chairman William Donaldson telling the group he was fed up with abuses in the securities industry. WILLIAM DONALDSON, CHMN., SECURITIES & EXCHANGE COMMISSION: I`m left with a conclusion that these occurrences represent a fundamental betrayal of our nation`s investors, and are symptomatic of a disease that has afflicted far too many in the industry. YASTINE: Donaldson elaborated further on the details of his agency`s plans to repair the damage to investor confidence wrought by recent fund-trading disclosures. The SEC is considering a 2 percent industry-wide redemption fee charged to short-term mutual fund trades, to discourage market-timing. Donaldson also called for more disclosure in the fees charged to fund investors, and disclosure of the marketing and trade-execution relationships between fund companies and broker-dealers. Also speaking to industry executives, New York Stock Exchange interim CEO John Reed. He defended his proposals to reform corporate governance at the big board. Those reforms were the subject of criticism yesterday from CalPERS, the big California pension fund. Reed disagrees with CalPERS` assessment. JOHN REED, INTERIM CHMN. & CEO, NYSE: They don`t want an outside independent board, they would like a board made up of industry groups. We had one of those, it didn`t serve us very well and it didn`t serve the American people very well, and so we simply disagree. YASTINE: SEC Chairman Donaldson also defended Reed`s reform plan. DONALDSON: And I believe that the independence inherent in that committee, and if you look at that committee carefully, it has got some pretty good representation there in terms of investors, that its going to be a pretty independent committee if elected. YASTINE: The theme for the industry`s convention here was "Leadership, Values and Vision." But SEC Chairman Donaldson, noting the abuses that have been uncovered so far, warned executives: take a bigger role in cleaning up your industry, because as he put it: if you don`t, the SEC will. Jeff Yastine, NIGHTLY BUSINESS REPORT, Boca Raton, 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.
11/07/03: "Market Monitor"- James Dines, Editor, "The Dines Letter"
PAUL KANGAS: My guest "Market Monitor" this week is James Dines, editor and publisher of the popular "Dines Letter," based in Belvedere, California. Welcome back to NIGHTLY BUSINESS REPORT, Jim. JAMES DINES, EDITOR, "THE DINES LETTER": Good, Paul. How are you doing? KANGAS: Just fine, thank you. In your last three visits with us, going back 18 months, you have been strongly recommending the gold stocks and they have been stellar performers. More recently, the stock market in general, which you have maintained is in a long-term bear trend, has been making big gains. Is it no longer a secular bear market? DINES: We`re still in a short-term buy signal but I think it`s a long-term bear market. And the trigger for the break will come with the next terrorist events and boy, it`s going to happen. The crazies are held back only by their weaponry and that will improve over time. But one day it`ll like 9/11, the market will cave in and the golds will go up on that day, as they did on 9/11. KANGAS: As well as your gold portfolio has performed, it lacks the safety of diversification, does it not? DINES: People use my letter to - let`s say if they want to put a portion of their portfolio in gold, they use my letter to run that part of it. But you can use as much gold as you want in your portfolio. I just think that`s the surest bull market that I have - that I see right now. KANGAS: Well, you made a number of recommendations, about 10 or 12, but let`s have a look at about half of them from your last visit with us on May 9. DINES: OK. KANGAS: The first one we`ll put up on the board here. You recommended Newmont Mining (NEM), which is way up from 28 to 43 almost, Placer Dome (PDG) is up over 50 percent. Those were two - let`s have a couple more. Anglogold (AU) and Meridian (MDG) way up from where they were hack back in May... DINES: These are hefty subscribers. KANGAS: And Ashanti (ASL). But listen. Apex Silver (SIL) is down a little less than a dollar. What`s with that? DINES: I missed one. Well, God gave dogs fleas to remind them they`re dogs, you know. KANGAS: You still like Apex? DINES: I do. It`s a good play on silver and zinc. KANGAS: All right. What would have to happen to turn you bearish on gold? DINES: Well, for the U.S. government to balance its budget for one, to have a serious monetary system where they don`t just print all the paper they want. I`ve been a pioneer crusading for an honest currency for a long time, and we don`t have one. And you need to defend yourself against that by having some gold in your portfolio in case the dollar caves in, which has already begun. KANGAS: So you believe that gold and silver, for that matter, are both in long-term bull markets? DINES: Correct. And in fact the "Dines Wolf Pack" series says that silver and gold also move with platinum and palladium, that`s the "Dines Wolf Pack" theory. KANGAS: How about some new recommendations, Jim? DINES: Well, the first one is North American Palladium (PAL), is reviving again. Platinum is so far above palladium in price that the automotive companies must right now, it`s not in the papers yet, be considering switching their automotive catalytic converters from platinum back to palladium and that will send the price up much higher. Plus, this - PAL is probably - no, it is the only independent palladium mine in the entire Western hemisphere. They`re very - it`s a very rare deposit and it`s in an uptrend. KANGAS: All right. Do we have another recommendation? DINES: Yes, I also like Imax (IMAX) because they have these big theaters that are going to be spreading all over the world. They introduced "The Matrix." KANGAS: OK. Another one? DINES: Another one is Saffron. I`ve been very bullish on India for years, and this is a nice spread for an ordinary investor who can`t follow the industry. KANGAS: You have a lot of Indian investments, I understand? DINES: Yes, they do. They`re Indian stocks, and it`s a great way to do it. And all of these stocks are in uptrends. KANGAS: And do you own them all? Let`s have - you have one more, I believe, don`t you? DINES: Oh absolutely. I own them all. I have... KANGAS: You have one more that you were going to recommend? DINES: Yes, Barrick (ABX) is one of the gold blue chips that has not yet moved along with Placer Dome. I also want to mention two huge new deposits just now discovered, it hasn`t been in "The Wall Street Journal" yet, and that`s one in Eritrea and there is one in Mongolia. The Mongolia one, you`ve got into recommended Ivanhoe Mines at 3 1/4. It`s now 12, it has quadrupled. I also like Minco, MMM in Toronto. And that is the area of the market that`s on fire right now. KANGAS: OK. All right. Now, you own all of these you say? DINES: I do. And I also have one final comment, if you have time for it. KANGAS: Yes, yes, we have just enough time. DINES: Well, it`s always very important to live well and to travel first class because if you don`t travel first class, your children will. KANGAS: That`s a pretty - that`s a very sage observation. Jim, thanks very much for being with us again. DINES: You`re welcome, Paul, any time. KANGAS: My guest "Market Monitor" this week, James Dines, editor and publisher of "The Dines Letter."
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.
SUSIE GHARIB: Here`s a look now at what`s happening next week: Our Friday "Market Monitor" guest is Douglas Jimerson, president of National Investment Advisors. It`s a light week on the economic calendar: Thursday, weekly jobless claims; Friday, several October reports including the producer price index, retail sales and industrial production. On the earnings calendar: Dell (DELL), Federated Department Stores (FD), Starbucks (SBUX), Target (TGT) , Tiffany (TIF) and Wal-Mart (WMT).
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.
11/07/03:
"Paul Kangas' Stocks In The News"
PAUL KANGAS: As strong as that employment report was, investors weren`t very impressed because they felt the good news had already been included in the market`s recent rally. After an hour of trading, the Dow struggled to post a 23-point gain, the NASDAQ Index was up 12. Brokerage downgrades on the homebuilding stocks dragged down the market for the rest of the morning. At noontime, the Dow was off 8 points, the NASDAQ up only 4. Normal pre-weekend selling pressure kept stocks in retreat for the rest of the day. So the Dow Industrial Average came in with a closing loss of 47.18 points at 9809.79. This week the Dow fell three times, rose twice at a net gain of 8 2/3 points. The NASDAQ Composite lost 5.63 points to 1970.74 today. This week it fell twice, rose three times, had a gain of 38.5 points or about 2 percent. The Standard & Poor`s 500 Index fell 4.84 today to 1053.21. Over in the bond market, the 10-year note fell 7/32 to 98 16/32, putting the yield at 4.44 percent.
The most active big board issue, Lucent Technologies (LU), edging up $0.04. It traded 20.2 million shares on the New York Exchange.
That was followed by Wyeth (WYE), the pharmaceutical, down $2.98. The stock down on news that a Texas court has awarded $1.36 million to a woman who claimed injuries from the company`s Fen-Phen diet pills.
Calpine (CPN) lost $0.02.
AT&T Wireless (AWE) an $0.08 loss.
Time Warner (TWX) gained $0.08, fifth in big board volume.
Then Pfizer (PFE), a $0.09 loss.
GE (GE) fell $0.32.
Motorola (MOT), a $0.24 gain there.
And McDonald`s (MCD) wound up with a gain of only $0.03 but traded as high as $26.60. As we mentioned earlier, U.S. same-store sales up 15 percent in October, best monthly increased in five years.
Altria Group (MO), that`s the parent of Philip Morris, of course, up $2.21. Also a Dow stock like McDonald`s. And Merrill Lynch added Altria to its "Focus One" list and increased the price target to $63 a share on the belief the company may spin off the rest of its food operations late next year.
Toll Brothers (TOL), the homebuilder, down $2.41. C.S. First Boston downgraded it from outperform to neutral on a valuation basis. And did the same with Lennar (LEN), M.D.C. Holdings (MDC), and another homebuilder, Ryland Group (RYL), all major losers today.
Circuit City (CC) stores moved up $0.94. It traded as high $10.92. "The Wall Street Journal" today notes there is optimism, and it`s high, for strong Christmas sales, especially for consumer electronics.
Sovereign Bancorp (SOV) down $1.34. Smith Barney brokerage downgraded it from buy to hold due to the recent run-up on takeover speculation. But no bids yet forthcoming.
Bayer (BAY), $1.73 gainer. The company plans a public offering for most of its chemical and polymer operations.
Wackenhut Corrections (WHC) gained $1.44. The company received a contract to manage a 3000-bed detention center in Reeves City (sic), Texas. That contract could be as good for as much as 10 years.
Public Storage (PSA) gained $1.65. Third-quarter earnings higher, $0.79 versus the prior year`s $0.65. Smith Barney upgraded the stock from hold to a buy.
Then Eastman Chemical (EMN) up $2.33. UBS Financial upgraded that stock from neutral to buy.
And GTECH Holdings (GTK) up $2.31. The company is in a deal to acquire Spielo Manufacturing, which makes video slot machines. And the price, $150 million in cash.
NASDAQ`s most active issue was Intel (INTC), moving down $0.25.
Followed by Cisco Systems (CSCO), a $0.56 loss there.
Microsoft (MSFT) dropped $0.13.
Qualcomm (QCOM) up $1.38.
NVIDIA (NVDA) moved up $3.58. After the close of trading yesterday, NVIDIA reported third-quarter earnings of $0.04 versus a loss of $0.32 the prior year. And revenues did surpass Wall Street projections. The company sees fourth-quarter results very similar to the third-quarter levels.
Amgen (AMGN) was down $1.18.
Applied Materials (AMAT) fell $0.36.
Oracle (ORCL), a $0.24 loss there.
InteractiveCorp (IACI) moved up $0.79.
Tenth in NASDAQ dollar volume, Comcast A (CMCSA) stock, moving up $0.47 a share.
Akamai Technologies (AKAM) up $1.22 on news that Cable & Wireless (CWP) Internet services have dropped a patent infringement lawsuit against Akamai.
First Horizon Pharmaceutical (FHRX) up $3.13. Nice move there. Third-quarter earnings came in at $0.10. That`s much better than last year`s break-even. And the Street was actually looking for a loss of $0.10 a share.
And FAO Incorporated (FAOO), this is the parent of the toy retailer FAO Schwarz, the company is in a cash crunch just as it enters its peak selling season. It is asking its lenders for more money to stay in operation.
And those are the "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.
|
| <%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.