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09/09/04:
Hurricane Ivan Threatens To Do Terrible Things To Florida
SUSIE GHARIB: Evacuations are underway in the Florida Keys
tonight as storm weary Floridians gear up for a possible hit by hurricane
Ivan. It`s a category five storm, packing winds of 160 miles an hour and
bearing down on Jamaica after claiming lives and property on the island of
Grenada. Landfall could come in Florida on Monday. As Jeff Yastine
reports, the prospect of a third major hurricane to hit the state in a
month has everyone nervous.
JEFF YASTINE, NIGHTLY BUSINESS REPORT ANCHOR: In this year`s hurricane
season, it seems all roads lead to Florida and images like this one are not
what residents or insurers want to see. In Jamaica residents are boarding
up their homes and making ready for a storm that, a day ago, reportedly
flattened up to 90 percent of the homes on the island of Grenada. Insurers
are still doling out claim checks for last weekend`s hurricane Frances,
which caused an estimated $6 billion in wind and flood damage in the
southeast and mid-August`s hurricane Charley, which caused $8 billion in
damage on Florida`s southwest coast. A third impact, in one hurricane
season, would be exceedingly rare. But analysts say the insurance
industry is still well positioned financially, even if Ivan turns out to be
the most damaging of all.
MICHAEL LEWIS, ANALYST, UBS INVESTMENT RESEARCH: Since the industry is
financially strong enough to handle this, this is an event that`s going to
be restricted to one quarter. In other words, the costs of all three
storms took place in the third quarter will be reflected in third quarter
numbers. This will have no effect of any size beyond the quarter, we
believe and certainly wouldn`t affect our projections for 2005. As a
matter of fact, if there are rate changes, it may even enhance our
projections for 2005.
YASTINE: Others warn the trio of hurricanes could have other economic
consequences. Tourism and citrus are already hurt and insurers won`t write
new insurance policies for high-risk areas, when hurricanes are in the
Caribbean.
BOB RUSBULDT, CEO, IIABA: These two hurricanes and with Ivan coming up in
the Caribbean right now, there`s a moratorium on writing all new homeowners
business in south Florida right now. If you`re trying to close on a home;
if you`re in the process of building a home; if you`re in a real estate
development activity you can`t get insurance now.
YASTINE: After two hurricanes this year, Florida`s own catastrophe
insurance fund has about $6 billion in cash and an $8 billion credit line,
but no one`s saying how they`ll replenish the fund if Ivan`s losses are
higher than that. Jeff Yastine, NIGHTLY BUSINESS REPORT, Miami.
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.
09/09/04:
Home Depot Tries To Take Manhattan
SUSIE GHARIB: Home Depot is drilling into the big apple, with a splashy high-end
new store. The world`s largest home improvement company, with stores
already in the outer boroughs of New York City, is opening its doors
tomorrow in Manhattan for the first time ever. Suzanne Pratt got a sneak
peek of Home Depot`s new store and its special marketing strategy.
SUZANNE PRATT, NIGHTLY BUSINESS REPORT CORRESPONDENT: It seems to make
perfect sense. Where else in America are there more homes per square block
than in Manhattan? More homes in need of a simple paint job or more homes
in need of a more radical renovation. Enter Home Depot, also known as
America`s largest home improvement store. Tomorrow, it opens its first
location in Manhattan on West 23rd street. The $20 million store is three
floors high and more than 100,000 square feet. It`s also far different
than Home Depot`s standard suburban formula: from its doorman to its same-
day delivery service. And, it`s designed to target a challenging
customer.
ROBERT NARDELLI, CHAIRMAN & CEO, HOME DEPOT: We did a lot of customer
surveys to understand what is it that a Manhattanite is interested in.
First they said convenience, get us the store. Second, they want
distinctive and innovative merchandise. They want to make sure that it is
fashion forward.
PRATT: While Nardelli wouldn`t reveal specific sales targets for the new
store, analysts say Home Depot wouldn`t be here if its other urban
locations weren`t doing well. The Manhattan arrival also fits in with the
company`s recent and sweeping restructuring. In the last few years, the
retailer has updated many of its older stores and upgraded technology
systems. Even though Home Depot is still fending off rival Lowes, analysts
say its own remodeling efforts are starting to pay off. Second quarter
profits exceeded Wall Street expectations and the company recently upped
its fiscal full-year profit growth target to between 14 and 17 percent.
NARDELLI: We raised out forecast on earnings twice this year. We raised
it at the end of the first quarter and we raised it again at the end of the
second quarter. And, we are very confident in reaffirming that range of
earnings for 2004.
PRATT: Nevertheless, Home Depot`s stock has been suffering. Once a Wall
Street darling, the shares have lost more than 40 percent in the last four
years. Still, some analysts say things could be looking up for
shareholders.
DANA TELSEY, SPECIALTY RETAIL ANALYST, BEAR STEARNS: Don`t forget that
many of the hardlines retailers like Home Depot, it`s a lot about macro
headwinds. Whether it`s child tax credit checks, rising rates or lower
refi costs, the fact that the housing cycle still remains quite strong is
encouraging for home retailers. It`s not until six or 12 months after you
move in your home until you furnish that home.
PRATT: This new store is just the start of Home Depot`s Manhattan
presence. By the end of the year, the company plans to open a second location on
Manhattan`s upper east side. Suzanne Pratt, NIGHTLY BUSINESS REPORT, New
York.
Nightly
Business Report transcripts are available on-line post broadcast.
The program is transcribed by eMediaMillWorks. Updates may
be posted at a later date. The views of our guests and commentators
are their own and do not necessarily represent the views of
Community Television Foundation of South Florida, Inc. Nightly
Business Report, or WPBT. Information presented on Nightly
Business Report is not and should not be considered as investment
advice. Copyright (c) 2003 Community Television Foundation
of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.
09/09/04:
Capitol Hill Takes Aim At Soldier Scams
SUSIE GHARIB: Members of Congress are calling it scandalous: reports that some
companies are selling high priced life insurance and mutual funds to
soldiers in a time of war. In Washington today, lawmakers scolded the
firms that do that kind of business and heard first hand from a solider who
was a victim of those tactics. Darren Gersh reports.
DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: One day during basic
training, specialist Brandon Conger says his drill sergeants told him some
financial advisers would be talking to him about mutual funds. The next
day, Conger was marched into a classroom and signed up for what he thought
was a savings plan. He then shipped off for Iraq, only to return months
later and find he had actually been sold an expensive life insurance
policy.
BRANDON CONGER, SPECIALIST, US ARMY: This has been an extremely
disappointing ordeal for me and for some of my fellow soldiers, not because
I lost money, but because I was misrepresented by a former soldier working
for American Amicable Life insurance who used his contacts to gain the
trust and confidence of young soldiers.
GERSH: Members of Congress are outraged that soldiers on bases across the
country are being sold high priced financial products they don`t need,
often by agents who are also veterans.
REP. GINNY BROWN-WAITE, (R) FLORIDA: If the Department of Defense had done
its job and if some of the insurance companies had not been so damn greedy,
we wouldn`t even be here today.
GERSH: American Amicable says the company has fired the agents involved in
such sales.
JOE DUNLAP, EXEC. VP, AMERICAN AMICABLE LIFE INSURANCE: We are not proud
of the conduct of the agents who sold our products at Fort Benning and Camp
Pendleton in a manner totally inconsistent with our compliance policies.
GERSH: But Richard Baker, the chairman of the House capital markets
subcommittee, wondered how American Amicable could justify selling solders
$20,000 in life insurance for a premium of $900 a year, when the government
charges $240 for a quarter million in coverage.
REP. RICHARD BAKER, CHAIRMAN CAPITAL MARKETS SUBCOMMITTEE: But in the free
market I don`t see how you survive in the comparison.
GERSH: American Amicable says its plan includes savings that build up over
20 years.
DUNLAP: This plan is a long-term commitment. That is the way it works to
the benefit of the customer.
GERSH: The committee did not seem convinced and is working on legislation
to curb sales abuses involving financial products aimed at the military.
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.
09/09/04:
IT + MD=Premium Patient Care
SUSIE GHARIB: A new survey out today by the Kaiser Family Foundation finds
health insurance premiums rose more than 11 percent this year. It`s the
fourth consecutive year of double digit increases. The rising cost of
health care is a key election issue. Now while President Bush and Senator
Kerry have sharp differences in healthcare policy, they both agree
information technology can be used to drive down costs. But as Stephanie
Woods reports, that`s more complicated than it sounds.
STEPHANIE WOODS, NIGHTLY BUSINESS REPORT CORRESPONDENT: Dr. Scott Taylor no
longer keeps his patient`s records on paper. The obstetrician helped
develop a computer system that stores records electronically and guides
health care providers through labor and delivery.
DR. SCOTT TAYLOR, MEDSTAR HEALTH: This is a system that`s intelligent. It
has the ability to case manage. And once we`re able to do that and we can
in fact produce better outcomes, then the result ultimately has to be a
lowering of cost at the same time that we`re decreasing risk to patients.
WOODS: The hospital chain where Taylor practices, Med Star Health, has
begun installing the system in five of its hospitals. The computer program
has over 16,000 protocols based on standards of patient care. It documents
all the procedures done on a patient, records all lab tests and forecasts
potential problems. The soaring cost of malpractice insurance drove the decision to invest in
the technology. It costs Med Star Health $3 million to develop the new
system and will cost another million dollars a year to keep it up and
running. But the hospital chain figures the system will quickly pay for
itself by reducing errors and malpractice costs. It`s just the kind of
system President Bush and Senator Kerry have been touting on the campaign
trail.
SEN. JOHN KERRY (D) PRESIDENTIAL CANDIDATE: In the age of the computers,
there`s no excuse for you being able to go to the bank and you can take
money out of the bank for one penny a transaction at the ATM, but if you go
to a hospital and get your hospital record, it costs you $15 to $25 a
transaction.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We will use the new
technologies available for other industries. We`ll promote them in the
health care industry so that we can wring out the inefficiencies in the
health care system, to reduce the costs.
WOODS: Labor and delivery generally follow a predictable pattern earn with
a birth and normal outcome, but hospital executives say that`s not true for
most medical situations and that makes health care technology complex.
LARRY SMITH, VP, RISK MANAGEMENT, MEDSTAR HEALTH: With this system, there
are 16,000 individual protocols that have been embedded in the system that
are all clinical pathway issues, that all could be different for any one
patient. You wouldn`t find that in banking. You deposit a check. There`s
a certain way in which it gets deposited and processed, gets recorded, gets
accounted and gets out. But in health care that`s not the case. So I
think the analogy between banking or any business transaction and a health
care transaction is very naive.
WOODS: Experts say the technology is just not ready to be integrated in all
areas of the hospital.
VICKI LUCAS, VP, WOMEN`S SERVICES, MEDSTAR HEALTH: Because it is so
complex, this evolves in little pieces, little (INAUDIBLE) pieces like a
laboratory system, a pharmacy system, a billing system, a fetal monitoring
system. But to get all that to talk together, which is really what you
need to do truly integrated technology solution, that is very difficult and
complex.
WOODS: But even though it`s complex, Med Star still intends to expand
electronic patient care with the latest technology. Stephanie Woods,
NIGHTLY BUSINESS REPORT, Baltimore.
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.
9/09/04:
"Paul Kangas' Stocks In The News"
PAUL KANGAS: Stocks opened mixed reflecting a positive surprise drop of 44, 000
in new weekly jobless benefit claims, their sharpest drop in three years
and a worrisome rise in oil prices. The tech stocks did well on improved
outlooks from Nokia and Texas Instruments. Steel stocks were also strong.
At mid-day the Dow was off 35 points, but the NASDAQ up five.
The blue chips in general remained modestly lower all the way to the close,
so the Dow Industrial Average lost 24 1/4 points at 10,289.10. But the
NASDAQ tech laden as it is, gained 19 points to 1869.65. Standard & Poor`s
500 rose 2.11 to close at 1118.38. Treasury prices ended on a mixed note.
The 10-year note fell 9/32 putting the yield up to 4.20 percent.
The most active New York exchange issue on 26.6 million shares, Texas
Instruments (TXN), a nice move up, $1.94. The company boosted its prior
third quarter earnings estimate of $0.26 to $0.29 a share to $0.27 to
$0.29. Street estimate is $0.26. But another reason, its best customer,
Nokia (NOK) also boosted its third quarter sales and earnings outlook due
to strong demand for its more expensive handsets.
General Electric (GE) up $0.20.
Lucent Technologies (LU) $0.14 gain.
Motorola (MOT) rose $0.96 in sympathy with Nokia and Texas Instruments.
National Semiconductor (NSM) up $1.48. Company in with first quarter
earnings better than expected $0.31, $0.05 above the Street estimate, way
up from $0.08 a year ago. Revenues were up a very respectable 29 percent.
NorTel Networks (NT) up $0.17.
Corning (GLW) gained $0.94 after the company reaffirmed its third quarter
earnings guidance at $0.10 to $0.12 a share.
Interpublic Group of Companies (IPG) up $0.54.
Micron Technology (MU) a $0.37 gain, tenth in big board volume.
The big drug firm AstraZeneca (AZN) down $2.65. The FDA is concerned about
liver damage in patients using the company`s anti-clotting drug Exanta,
using it more than a few weeks apparently. They`re afraid it might cause
problems.
Nucor Corporation (NUE), the big steel company, up $6.13. The company
boosted its third quarter outlook. It boosted its cash dividend 24 percent.
It`ll go from $0.21 to $0.26 per share quarterly and it also declared a 2
for 1 stock split. This had a very positive effect on the whole sector.
International Steel Group (ISG) up $1.82. International, I got an upgrade
from UBS which issued an outright buy.
Oregon Steel Mills (OS) up $1.97, similar gain also in the other area.
Chico`s (CHS) down $2.85. Company said September same store sales so far
are down about 2 percent. Obviously that`s because of hurricane Charley and
Frances and now another one looming on the horizon.
Premcor (PCO), this is an oil refining and distribution company up $3 a
share. The company sees 2004 earnings coming in at $4.50 a share. That`s
way up from $2.24 a year ago, more than double and Standard & Poor`s has
repeated an accumulate rating on the stock.
Yum! Brands (YUM) which owns Kentucky Fried Chicken, Pizza Hut and so
forth, up $1.28. The company`s comfortable with Wall Street third quarter
earnings estimates of $0.60 a share.
NASDAQ`s most active, Intel (INTC) rose $0.45 in the strong semiconductor
group.
Followed by Microsoft (MSFT), $0.02 gain there.
Cisco Systems (CSCO) up $0.62.
But eBay (EBAY) down $1.19.
TASER International (TASR) dropped $3.39. That was fifth in dollar volume.
Applied Materials (AMAT) up $0.60.
QUALCOMM (QCOM) gained $0.14.
Maxim Integrated Products (MXIM) up $1.61.
Dell (DELL) gained $0.23.
And Travelzoo (TZOO) up $7.63. This is a company that`s involved in online
travel infomercials and the company had no news today, but (INAUDIBLE)
after it`s being listed on the national market system since last month,
it`s been very active and very strong.
InterCept (ICPT) up $1.06. Fidelity National Financial will acquire it in a
deal worth $18.90 a share, 75 percent of that will be in cash, 25 percent
in Fidelity stock. And incidentally, Fidelity National stock did drop $1.74
to close at $36.72 today.
And we see Charlotte Russe Holding (CHIC) down $3.43. This is a women`s
apparel retailer and the company cut its earnings outlook because of
disappointing back to school sales.
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.
09/09/04:
Market Stats
NET PERCENT
CLOSE CHANGE CHANGE
DOW CLOSE 10289.10 -24.26 - .2
HIGH 10337.33
LOW 10269.49
NASDAQ COMP. 1869.65 +19.01 +1.0
HIGH 1875.39
LOW 1849.37
VOLUME 1,370.6
PREVIOUS 1,249.5
UP VOLUME 844.3
DOWN VOLUME 509.9
DOW TRANSPORTS 3193.81 +5.02 + .2
DOW UTILITIES 292.12 +1.37 + .5
CLOSING TICK +685
S&P 500 1118.38 +2.11 + .2
S&P 100 543.89 +.77 + .1
MIDCAP 400 586.68 +4.14 + .7
REUTERS/CRB 272.89 +2.35 + .9
NYSE COMPOSITE 6544.31 +10.22 + .2
VALUE LINE 356.65 +3.35 + 1.0
RUSSELL 2000 566.18 +8.39 + 1.5
DJW 5000 10880.00 -20.16 - .2
U.S. TREASURIES
5-YEAR NOTE 3.375%
Sept. 15,2009 99 26/32 +1/32 + 3.42
10-YEAR NOTE 4.25%
Aug. 15,2014 100 13/32 -9/32 + 4.20
30-YEAR NOTE 5.375%
Feb. 15, 2031 105 20/32 -20/32 + 4.99
LEHMAN BROS.
LONG BOND INDEX 1743.44 -6.91
DOW CLOSE 10289.10 -24.26 - .2
ADVANCES 2004
DECLINES 1296
NEW HIGHS 142
NEW LOWS 10
NET PERCENT
NYSE MOST ACTIVES 4PM CLOSE CHANGE CHANGE
TXN Texas Instrument 20.77 +1.94 +10.3
NOK Nokia Corp 13.77 +1.06 +8.3
GE GE 33.86 +.20 +.6
LU Lucent Tech 3.23 +.14 +4.5
MOT Motorola 16.06 +.96 +6.4
NSM Natl Semiconduct 13.48 +1.48 +12.3
NT Nortel Networks 3.85 +.17 +4.6
GLW Corning 11.09 +.94 +9.3
IPG Interpublic Group 11.05 +.54 +5.1
MU Micron Tech 11.52 +.37 +3.3
NASDAQ CLOSE 1869.65 + 19.01 + 1.0
VOLUME 1,669.4
PREVIOUS 1,462.2
ADVANCES 1994
DECLINES 1089
NASDAQ ACTIVES
INTC Intel 20.17 +.45 +2.3
MSFT Microsoft 27.28 +.02 +.1
CSCO Cisco Systems 19.93 +.62 +3.2
EBAY eBay 87.91 -1.19 -1.3
TASR Taser Intl 32.16 -3.39 -9.5
AMAT Applied Matl 16.39 +.60 +3.8
QCOM Qualcomm 39.65 +.14 +.4
MXIM Maxim Integrtd 40.88 +1.61 +4.1
DELL Dell Inc 35.69 +.23 +.7
TZOO Travelzoo 58.77 +7.63 +14.9
AMEX CLOSE 1244.89 + 5.86 + .5
INDEX SHARES
DIA DIAMONDS TRUST 103.00 -.49 -.5
QQQ NASDAQ 100 34.55 +.26 +.8
SPY S&P DEP.RECEIPTS 112.48 -.10 -.1
STOCKS IN THE NEWS
AZN Astrazeneca 44.40 -2.65 -5.6
NUE Nucor 88.43 +6.13 +7.5
ISG Intl Steel Group 33.57 +1.82 +5.7
OS Oregon Steel 17.00 +1.97 +13.1
X US Steel Corp 39.96 +1.96 +5.2
CHS Chico's Fas 33.91 -2.85 -7.8
PCO Premcor 36.82 +3.00 +8.9
YUM Yum! Brands 40.61 +1.28 +3.3
ICPT Intercept 18.51 +1.06 +6.1
CHIC Charlotte Russe 11.20 -3.43 -23.4 |
