Program: Wednesday, November 26, 2003

The Bulls Return To Wall Street For Thanksgiving
What's Coming Up For Congress?
Japan Takes The Convenience Store Concept To A New Level
"Money File"-The Good, The Bad & The Ugly of Mutual Funds
Commentary: Wild & Wacky Work Gifts
Paul Kangas' Stocks In The News
Market Stats

11/26/03:The Bulls Return To Wall Street For Thanksgiving

JEFF YASTINE: Investors nibbled at stocks on this day before Thanksgiving. The Dow gained 15. The NASDAQ rose 10. Investors were hesitant to make big bets ahead of the holiday tomorrow. But as Erika Miller reports, many on Wall Street are bullish about the remainder of the year.

ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: If you are a stock investor, chances are you have plenty to be thankful for this year. Since January, major market indexes have racked up impressive gains. The Dow has risen 17 percent, the S&P 500 20 percent and the NASDAQ has soared 46 percent. And if history is any guide, the market has just entered a sweet spot. The period from the day before Thanksgiving through the day after it has almost always been positive for stocks. Over the past 51 years, the Dow has risen 42 times in those two trading days.

UNIDENTIFIED MALE: I think it has to do with the black Friday after Thanksgiving, where people are sensing the retail year being kicked off and all the retail stores going into the black. And it`s the beginning of the year end stuff and there`s a lot of psychological, you know, positivity out there that traders are getting in.

MILLER: But many market analysts are optimistic beyond Friday. They expect the economic recovery to continue picking up steam. They also point to strong corporate profits.

UNIDENTIFIED MALE: I don`t think the momentum in earnings is priced into the market. It`s really just turned dramatically in the last couple of months and people are gaining conviction. So I suspect estimates are low for next year. And I think that`s going to heavily drive the market.

MILLER: Another positive sign: December has historically been a good month for stocks. Since 1950, December and November have been the best month for the Dow. And December has been the second best month for the S&P 500. Experts say part of the reason is that at the end of the month, investors tend to plow money into stocks, anticipating strong inflows in January, when bonus and pension money gets invested. Most Wall Street strategists are confident stocks will end the year several percentage points higher. That would make 2003 the first positive year for the market since 1999. 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.

11/26/03: What's Coming Up For Congress?

PAUL KANGAS: Members of Congress are heading home for the Thanksgiving holidays, having wrapped up most of their work. So far, the legislative year has brought victories for the President and his party. But as Darren Gersh reports, there are new challenges for the coming year.

DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: The year in Congress was a mixed one at best, according to American Enterprise Institute Political Analyst Norman Ornstein.

NORMAN ORNSTEIN, AEI POLITICAL ANALYST: Given what was on the wish list, the ambitions and the expectations as we started out the year, though, you can`t argue that this was a tremendously successful year.

GERSH: Despite August`s historic blackout in the Northeast, Congress pulled the plug on an energy bill that had ballooned to $31 billion, mostly in tax cuts for energy producers. There was no help for the growing number of people without health insurance and education reform was put on hold. Tort reform and medical malpractice reform also stalled. But the year did end with a major win for the President on Medicare. The legislation shows the Republicans can act on an issue that has dogged their party for years. But Ornstein says it is unclear whether this victory will be a pyrrhic one.

ORNSTEIN: But the substantive nature of this bill ultimately is going to determine whether it means that voters will rally around the President, including seniors, more than they have, or whether they`ll say, hey, I thought I was going to get something out of this, who do you people think you are?

GERSH: The tone in Washington, if anything, was more bitter and partisan than ever. But what Republicans hope voters will remember are the accomplishments, not the acrimony that accompanied them. And at the top of that list are the tax cuts the President signed into law in May.

CHARLES GABRIEL, WASHINGTON STRATEGIST, PRUDENTIAL SECURITIES: The `01 tax cuts really hadn`t had much economic effect and very little political effect because they were going to be phased in over a long period. Now, by phasing them in instantly, the tax relief became real. It provided a heck of an economic stimulus in the third quarter: 8.2 percent.

GERSH: But to many, those tax cuts are also a symbol of the evaporation of fiscal discipline in Washington. Entitlement spending is up. Discretionary spending is up, too. And federal revenues are down.

GABRIEL: We have willing suspension of disbelief about deficits. We have a deficits don`t matter paradigm in Washington, and that continued in 2003.

GERSH: Congress will be back next month to wrap up work on the budget, passing an $820 billion package of spending bills. And then next year it will start in on a new budget that is expected to run half a trillion dollars in the red. Darren Gersh, 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.

11/26/03: Japan Takes The Convenience Store Concept To A New Level

JEFF YASTINE: America is the birthplace of the convenience store. But ever since the first 7-Eleven opened in Tokyo 30 years ago, Japan has embraced the convenience concept with a vengeance. So perhaps it was inevitable that one of Japan`s leading chains is attempting, as the British would say, to carry coals to Newcastle, namely re-exporting the convenience store concept back to the U.S.. as if we don`t have enough already. As Lucy Craft reports, it`s not a convenience store most Americans would recognize.

LUCY CRAFT, NIGHTLY BUSINESS REPORT CORRESPONDENT: Every week, the Family Mart convenience chain debuts more than 100 new items. Merchandising is so refined an art in the Japanese convenience store universe almost every variety of snack or fast food in the store will be retired in less than a year, sometimes jerked off the shelf within days.

HIDENARI SATO, PRODUCT PLANNING DIRECTOR, FAMILY MART (THROUGH TRANSLATOR): In French, they call this dessert gift from god. Try it and tell me what you think. This one has pudding wrapped in a crepe. Tell me if you think it`s tasty or not.

CRAFT: The process of spotting hot new trends and micro tuning flavors is nothing less than painstaking.

UNIDENTIFIED FEMALE (THROUGH TRANSLATOR): I think the portion is right, but it`s hard to eat and hard to open the package.

CRAFT: While most American convenience stores exist to sell gas and perhaps coffee or a hot dog, Japan`s nearly 40,000 convenience stores earn a third of their revenues by fueling human beings, who usually arrive on foot. Thus, an intense competition has ensued for the hearts and stomachs of finicky patrons, driving up quality and driving down prices.

SATO (THROUGH TRANSLATOR): We`re in a rice ball war. Every chain is focused on rice war development. For instance, every three months we review the pickled plum used in our rice balls. Should we make it saltier? Or add fish flavoring? Should we make the plum bigger or smaller? It`s a constant process.

CRAFT: Family Mart, Japan`s number three convenience chain, won`t discuss details of plans to bring its fast food emporia to the continental U.S. But with white hot competition at home, the retailer has already expanded into Asian markets like China and South Korea. The company confirms it`s seeking a local partner to open 400 outlets in New York, Los Angeles and other major U.S. cities.

KAZUTAKA WAKUI, CORPORATE RESEARCH DEPARTMENT, OKASAN SECURITIES (THROUGH TRANSLATOR): Retail is a highly domestic oriented business. It will take a long time to win over customers. But since the overseas venture won`t affect their main business, I don`t think it`s a bad investment.

CRAFT: But some experts question whether Japanese convenience stores, based on elaborate supply logistics and evolved over decades to please Japanese palates, can transplant well to American soil.

SETH SULKIN, PRESIDENT & CEO, PACIFICA MALLS: A Japanese convenience store gets, you know, their biggest sales are in onigiri, which are rice balls, and bento (ph), which are lunch boxes. You know, so for Japanese that`s what they live on. That`s what they eat everyday, so it`s not a problem. Of course, Americans do like sushi. They like some Japanese food, but I can`t imagine Americans are ever going to buy Japanese food in sufficient quantities for a convenience store to make sense.

CRAFT: Analysts say Family Mart will proceed cautiously in the U.S., starting with just a few stores in large cities with Asian communities. Family Mart will have to drastically retool its business model, say analysts, in order to sell Americans on the Japanese idea of convenience. Lucy Craft, NIGHTLY BUSINESS REPORT, Tokyo.

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.

11/26/03: "Money File"-The Good, The Bad & The Ugly of Mutual Funds

JEFF YASTINE: Well, in the money file tonight, with all the turmoil over mutual funds in the news these days, what`s an investor to do? Well, some suggestions from Harriet Johnson Brackey, Personal Finance Columnist for "The Miami Herald."

HARRIET JOHNSON BRACKEY, PERSONAL FINANCE COLUMNIST, "THE MIAMI HERALD": OK, so the mutual fund scandals have made your nervous. Now you want to make some changes. But where can you find reliable advice? Be very careful. Brokers, good ones and bad ones, are waiting for a big crowd of former fund investors to arrive. To pick a financial advisor of course you start with the person`s experience and education. Then call your state securities regulator to find out about the advisor`s history. So many bad stories begin with investors failing to do this simple thing. A broker`s past is public record. Contact the National Association of Securities Dealers Regulation and ask for it. Next, be concerned about conflicts of interest. They`re still common and they are a serious problem on Wall Street. Your only defense is to know what they are. Follow the money that`s changing hands behind the scenes. If your broker recommends a mutual fund, is the fund paying to be on the firm`s list of preferred products? If you use a financial planner, does the planner get commissions, free research or anything else from the investments? Can the planner recommend anything, or only certain investments? If so, how come? Ask and ask some more. You should be just as serious about choosing the right advisor as you are about picking the best investments. I`m Harriet Johnson Brackey.

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.

11/26/03: Commentary: Wild & Wacky Work Gifts

JEFF YASTINE: And finally tonight, if you`re heading out on Friday to buy holiday gifts for your coworkers, here are some things you should not choose. Pass up the container of fake worms, the wooden propeller blade, the hat with a fish sticking out of it -- I think that`s your favorite, Paul -- the giant plastic carrot and the camel ride. Believe it or not, those are all actual gifts given to business associates at holiday time. The Creative Group, which is a marketing company, says those are some of the results of a new survey of advertising and marketing executives who were asked what the wackiest or most unusual gift they or a colleague has received. And, Paul, the question that has to come to mind, of course, is what were they thinking?

KANGAS: The hat with the fish sticking out of it makes perfect sense to me. It`s got to be given to a Florida Marlins fan after the team won the World Series.

YASTINE: It`s a belated World Series hat.

KANGAS: Absolutely.

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.

11/26/03: "Paul Kangas' Stocks In The News"

PAUL KANGAS: Those generally strong economic reports were backed up by news that new weekly jobless benefit claims fell 11,000. So buyers took the upper hand in early Wall Street trading. After 30 minutes, the Dow was up about 10 points and the NASDAQ Composite gained 12 points. Because the early rally was so modest and hesitant, disappointed investors began selling despite that much stronger than expected Chicago Purchasing Managers Report of Business Activity. By late morning, the Dow fell to a 40 point deficit and the NASDAQ Index was down 8. But then the Federal Reserve`s latest Beige Book survey of the economy underscored the breadth of the economic recovery and helped the market rebound this afternoon. The Dow Jones industrial average closed with a gain of 15.63 points, at 9,779.57. The NASDAQ Composite ended up 10 1/4 points, at 1,953.31. While the Standard & Poor`s 500 Index rose 4.56 points, at 1,058.45.

In the bond market, the 10-year note fell 16/32 to par, even, lifting the yield back up to 4 1/4 percent. The most active New York Exchange issue, trading 14.9 million shares, was Wyeth (WYE), the big pharmaceutical firm, up $2.40. It traded as high as $41.25. An Atlanta jury has decided the company should pay no damages to a woman who alleged she suffered heart injuries from the use of the company`s diet drug called Phenfen.

Then Johnson & Johnson (JNJ) down nearly a $1. Merrill Lynch predicts that Boston Scientific`s (BSX) drug eluding stent called Taxis, will give Johnson & Johnson`s Cypher stent a very tough competition in the U.S. starting early next year.

Xerox (XRX) moved up $0.51. Yesterday, Merrill Lynch upgraded it from "neutral" to "buy" and Lehman yesterday upgraded it from "under weight" to "equal weight."

NorTel Networks (NT) rose $0.15.

Pfizer (PFE) a $0.05 gain, number five in big board volume.

Then Lucent Technologies (LU) gained a $0.10 a share.

Time Warner (TWX) up $0.26.

But G.E. (GE) fell $0.1 4.

While Merck (MRK) dropped $0.40.

And then tenth in big board volume was Motorola (MOT), with a gain of $0.43 a share.

Citigroup`s (C) stock edged up $0.04, even though the federal prosecutors are probing possible improprieties in the company`s transfer agent business. Meanwhile, J.P. Morgan Chase plans to acquire Citigroup`s Citicorp election financial services unit for $380 million in cash.

Eli Lilly`s (LLY) down $1.37. A recent study shows that Haldol, which is a schizophrenia drug, but it`s cheaper than Lilly`s Iprexa but it`s just as effective. Not good news for Eli Lilly on that particular front.

Genentech (DNA) was down $0.59, but it traded as low as $82.75. A study of the company`s Avisten drug in treating colorectal cancer showed no significant improvement in the survival rate.

Mylan Laboratories (MYL) stock moved up nearly a $1. And Lehman Brothers upgraded it from "equal weight" to "over weight."

And PacifiCare Health Systems (PHS) had a good day, up $3.66. The company`s chief executive officer thinks that the new Medicare reform laws will benefit the company`s growth outlook.

H&R Block (HRB) up $4.01. The company turned a profit in the second quarter, $0.06 in the plus column versus a loss of $0.21 last year. I think it`s the first time ever the company has had a second quarter profit, not their best quarter. Revenues were up 23 percent and the company is predicting 2004 earnings would come in around $3.75 a share, well up from its previous guidance of about $3.65 a share.

Fair Isaac & Company (FIC), which is in the data management systems business, got an upgrade from the Smith Barney Brokerage from "hold" to "buy." Smith Barney cites the company`s attractive risk/reward ratio. The stock, that is.

And then Coeur d`Alene Mines (CDE), a gold and silver miner, up $0.50. A good percentage move, 11 1/2 percent. And it traded as high as $4.99 a share today. February New York gold futures got as high as $402 an ounce and then wound up at $398 even on the day.

And then moving along to the NASDAQ, the most active issue there, Intel (INTC), moving up $0.28.

Followed by Microsoft (MSFT), which gained a $0.05.

A

mgen (AMGN) down $0.77.

Yahoo! (YHOO) gained $1.03.

Cisco Systems (CSCO), fifth in dollar volume, up $0.19 a share there.

Dell Incorporated (DELL) rose $0.06.

Applied Materials (AMAT) a $0.28 drop.

And Qualcomm (QCOM) down $1.12.

Amazon.com (AMZN) was up $0.49.

Nextel Communications (NXTL), tenth in dollar volume on NASDAQ, was up $0.94 a share.

Open Solutions (OPEN) went public today. The company is involved in the electronic commerce systems business. Five million shares offered to the public at $17. The stock opened at $19.12. The high of the day $19.48. And the trading symbol on NASDAQ is OPEN.

Elsewhere, 8x8 Incorporated (EGHT) up nearly $3. That`s about an 80 percent rise. The company develops voice communications systems for the Internet. And forbes.com notes that changewave.com has selected this stock as its top pick.

Over on the American Exchange, we see Sunair Electronics (SNR) moving up 17 1/2 percent, with that gain of $0.88. Fourth quarter earnings, $0.14, way up from last year`s $0.03, and the backlog of the company is strong at $4.1 million.

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.

11/26/03: Market Stats

   
                                      NET    PERCENT
                         CLOSE     CHANGE     CHANGE
DOW CLOSE              9779.57     +15.63       + .2
HIGH                                         9794.68
LOW                                          9706.01

NASDAQ COMP.           1953.31     +10.27        +.5
HIGH                                         1960.31
LOW                                          1930.63

VOLUME                                       1,105.3
PREVIOUS                                     1,333.8
UP VOLUME                                      798.1
DOWN VOLUME                                    294.8

DOW TRANSPORTS         2919.27      -4.05       - .1
DOW UTILITIES           250.30      +1.19       + .5
CLOSING TICK                                    +648

S&P 500                1058.45      +4.56       + .4
S&P 100                 521.21      +1.67       + .3
MIDCAP 400              565.32      +1.87       + .3
REUTERS/CRB             248.44      +2.77      + 1.1

NYSE COMPOSITE         6068.77     +35.58       + .6
VALUE LINE              349.96      +1.56       0.45
RUSSELL 2000            545.31      +2.13       0.39
WILSHIRE 5000         10344.62     +43.66       0.42

U.S. TREASURIES
5-YEAR NOTE 3.375%
Nov. 15,2008         100 17/32     -12/32       3.26

10-YEAR NOTE 4.25%
Nov. 15,2013         100           -16/32       4.25

30-YEAR NOTE 5.375%
Feb. 15, 2031        104 14/32     -20/32       5.07

LEHMAN BROS.
LONG BOND INDEX        1730.25      -4.31 


DOW CLOSE              9779.57     +15.63       + .2
ADVANCES                                        2144
DECLINES                                        1061
NEW HIGHS                                        350
NEW LOWS                                           5

                                      NET    PERCENT
NYSE MOST ACTIVES    4PM CLOSE     CHANGE     CHANGE
WYE    Wyeth             40.15      +2.40       +6.4
JNJ    Johnson &Johnson  49.70       -.99       -2.0
XRX    Xerox             11.95       +.51       +4.5
NT     Nortel Networks    4.50       +.15       +3.5
PFE    Pfizer            33.83       +.05        +.2
LU     Lucent Tech        3.15       +.10       +3.3
TWX    Time Warner       16.35       +.26       +1.6
GE     GE                28.77       -.14        -.5
MRK    Merck & Co        41.02       -.40       -1.0
MOT    Motorola          13.88       +.43       +3.2

NASDAQ CLOSE           1953.31    + 10.27       + .5
VOLUME                                       1,526.6
PREVIOUS                                     1,851.0
ADVANCES                                        1830
DECLINES                                        1342

NASDAQ ACTIVES
INTC   Intel             33.35       +.28        +.9
MSFT   Microsoft         25.45       +.05        +.2
AMGN   Amgen             58.14       -.77       -1.3
YHOO   Yahoo!            43.08      +1.03       +2.5
CSCO   Cisco Systems     22.81       +.19        +.8
DELL   Dell Inc          34.42       +.06        +.2
AMAT   Applied Matl      23.74       -.28       -1.2
QCOM   Qualcomm          44.46      -1.12       -2.5
AMZN   Amazon.com        52.96       +.49        +.9
NXTL   Nextel Comms      25.27       +.94       +3.9

AMEX CLOSE             1088.61     + 7.65       + .7

INDEX SHARES
DIA    DIAMONDS TRUST    97.90       +.22        +.2
QQQ    NASDAQ 100        35.31       +.11        +.3
SPY    S&P DEP.RECEIPTS 106.37       +.38        +.4

STOCKS IN THE NEWS
C      Citigroup         46.95       +.04        +.1
LLY    Eli Lilly         69.30      -1.37       -1.9
DNA    Genentech         83.78       -.59        -.7
MYL    Mylan Labs        25.65       +.97       +3.9
PHS    PacifiCare Health 64.46      +3.66       +6.0
HRB    H&R Block         53.41      +4.01       +8.1
FIC    Fair Isaac Corp   55.26      +2.64       +5.0
CDE    Coeur D'Alene      4.88       +.50      +11.4
OPEN   Open Solutions    18.66      +1.66       +9.8
EGHT   8X8 Inc            6.76      +2.98      +78.8
SNR    Sunair Electron    5.88       +.88      +17.6