12/21/04:
Add Aleve To The List Of Painkillers With Problems
SUSIE GHARIB: There are growing concerns tonight about the
safety of America`s drug industry, following a new warning
by the Food and Drug Administration about yet another painkiller.
This time it`s naproxen, sold over the counter as Aleve. A
new study says it poses possible heart risks. Interestingly,
that same study showed no additional cardiac risk from Celebrex,
Pfizer`s anti-arthritis drug, which was called into question
last Friday. As Darren Gersh reports, this latest addition
to the list of troubled drugs is raising questions about how
the government regulates the industry.
DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: Naproxen
has been sold over the counter for 10 years both as a generic
and by drug maker Bayer under the brand name Aleve. The FDA`s
warning that the drug should be limited to recommended doses
and taken for no longer than 10 days has renewed concerns
about how medications are regulated after they come to market.
JANELL MAYO DUNCAN, REGULATORY COUNSEL, CONSUMERS UNION:
Considering that this latest warning is following after the
Vioxx withdrawal and concerns about Celebrex, it is clear
that the system is not working and I think that consumers
are beginning to lose confidence in the safety of the drugs
that they are taking.
GERSH: The FDA approves drugs based on clinical trials that
average a total of 4,000 patients. But when a drug enters
what doctors call the real world, millions of patients may
take it. In that much larger population, new side effects
often come to light. The problem is, the FDA doesn`t have
the resources or organization to track how millions of patients
are actually using a drug. And doctors aren`t much help.
HENRY MILLER, REGULATORY EXPERT, HOOVER INSTITUTION: The
way that FDA finds out about side effects of a marketed drug
is voluntary reporting by practicing physicians. They are
not required to do so. It is a hassle for them and so under
reporting is the rule. And I think we need to fix that.
GERSH: The pharmaceutical industry warns that every drug
can pose a risk, but argues that the FDA is doing a good job
monitoring drugs on the market. Pharmaceutical manufacturers
say over the last 20 years, less than 3 percent of the 10,000
drugs on the market have been recalled.
DR. ALAN GOLDHAMMER, VP REGULATION, PHARMACEUTICAL RESEARCH
AND MANUFACTURERS OF AMERICA: I think it is important to remember
that all drugs are approved based on a benefit and risk. What
we don`t want to do is to swing the pendulum too far in one
direction or the other.
GERSH: Congress is expected to revamp the FDA`s post-approval
drug surveillance next year. In the meantime, the FDA cautions
it has not yet reached a conclusion about the safety of long-term
use of naproxen. Darren Gersh, NIGHTLY BUSINESS REPORT, Washington.
To Learn More about this topic, click
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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.
12/21/04:
Investment Banks Send Stocks In The Right Direction
PAUL KANGAS: The investment banking business has been very, very good for
two big Wall Street brokerage firms. Morgan Stanley and Bear Stearns both
reported higher fourth quarter earnings today and in both cases, profits
were lifted by a rising tide of corporate deal-making. Erika Miller has
details.
ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: Morgan Stanley
and Bear Stearns have a surge in mergers and acquisitions to thank for
strong profits in their fiscal fourth quarters. A dramatic rise in
corporate deal making helped boost investment banking revenues at both
firms.
ROBERT HANSEN, BROKERAGE ANALYST, STANDARD & POOR`S: Both companies
are seeing a pickup in their investment banking businesses, particularly in
the equities businesses, which is benefiting from the improved equity
markets here in the fourth quarter.
MILLER: That`s a key reason both companies trounced Wall Street
earnings expectations. At Morgan Stanley, profits rose 18 percent from
last year to $1.09 a share. Analysts were expecting earnings of just over
a dollar a share. Morgan also credits its strong showing to strength in
its credit card and investment management divisions. But there were some
disappointments. The company`s retail brokerage division took a big hit.
And there was a slump in revenues from the sales and trading of fixed
income securities. Despite that weakness, Morgan says it is optimistic
about the outlook for business in 2005 and it announced it would hike its
dividend by 8 percent. But some analysts rate the stock a "hold," saying
the firm faces big challenges.
HANSEN: We think Morgan Stanley`s retail brokerage is less
competitive than some of its peers and will probably need to be
restructured in 2005.
MILLER: For its part, Bear Stearns reported profits of $2.61 a share,
up from $2.19 a year ago. Analysts were expecting $2.14. Unlike Morgan
Stanley, Bear saw a big gain in fixed income revenues. It also reported a
surprising surge in merchant banking activity. But a large part of that
gain came from a one-time event: the sale of Bear`s stake in retailer New
York and Company through an initial public offering. Some analysts also
rate Bear a "hold" until there`s improvement in areas outside fixed income.
LAUREN SMITH, BROKERAGE ANALYST, KEEFE BRUYETTE WOODS: That would be
the key for Bear is for those businesses to gain traction and that would be
equity underwriting and M&A, their clearing. They have a private client
group. Those businesses have to improve for their revenues and earnings,
in our opinion, to grow.
MILLER: Analysts say there`s reason to be optimistic about brokerage
profits next year. They say they are particularly encouraged by an
increase in stock sales and trading activity after a multi-year slump.
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.
12/21/04:
Foreign Tourists Know The True Value of the Greenback
SUSIE GHARIB: While there are concerns about the dollar`s steady decline
against other world currencies, it is benefiting some areas of the United
States. Visits here by foreign tourists are on the upswing and as Jeff
Yastine reports, it`s not just the travel industry that`s raking in the
dough.
JEFF YASTINE, NIGHTLY BUSINESS REPORT CORRESPONDENT: The time it takes
to get to Miami from Europe? About eight hours. The time it takes for
Europeans to get to the mall after landing in Miami? About 18 minutes, if
they get on this convenience shuttle taking them directly to one of the
area`s biggest shopping centers. Europeans, it seems, are discovering the
great American pastime: shopping. And they`re hard to miss, queuing up at
mall-based foreign exchange booths and spending their newly converted
dollars on electronics and luxury goods.
UNIDENTIFIED FEMALE: Clothes, trainers, gold-- whatever we can carry
back in, basically.
YASTINE: And they don`t have to be a currency trader to know what a
bargain the dollar is.
UNIDENTIFIED FEMALE: 100 pounds in (INAUDIBLE) 50 pounds-- I mean,
$50, I should say.
YASTINE: Travel industry data shows the trend. Most months this year
have seen double-digit gains in the numbers of European, Asian, and South
American visitors to U.S. shores. Tour operators like Eelke Hoogstins are
in the thick of it. His firm, Travel Products USA, advertises heavily in
places like Holland and Germany, knowing the cheap dollar is a big draw for
bargain-seeking Europeans.
EELKE HOOGSTINS, GENERAL MANAGER, TRAVEL PRODUCTS USA: We do
advertising every week in the local newspaper. Every Saturday we`re in the
travel section with two or three ads. And every Saturday we try to sell a
different package or a different tour. And the last couple of ads, we`ve
just added sentences where you say "buy now and enjoy the cheap dollar."
It`s a good rate of exchange. It`s a good value for money right now.
YASTINE: The U.S. Department of Commerce is starting a $6 million
marketing campaign in the UK to encourage even more leisure travel to the
U.S. That means the tide of British and euro tourists may likely turn into
a flood, as long as the dollar remains near its historic lows. 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.
12/21/04:
Corporate Giving-Part 2: The New Strings Attached
SUSIE GHARIB: Well some of the nation`s biggest and smallest
nonprofit organizations have been finding it tough going this year when it
comes to raising cash. A wave of corporate consolidation is draining the
pool of possible donors and the companies that remain are demanding more
from charities these days. As we continue our series on corporate giving,
Diane Eastabrook says the changing landscape is creating challenges for
many groups.
DIANE EASTABROOK, NIGHTLY BUSINESS REPORT CORRESPONDENT: In this
classroom on Chicago`s south side, developmentally disabled preschoolers
get special attention. Across the hall, another group of youngsters learns
how to follow the leader. For more than a decade, El Valor, an inner city
nonprofit group, has provided educational and enrichment programs to
thousands of mostly Hispanic children. And it`s been doing so at two
schools. Both were built with more than $2 million in donations from a
handful of Chicago-based corporations. But El Valor`s president faces a
dilemma as he plans for a third school. Many old corporate contributors
either aren`t giving or no longer exist.
VINCENT ALLOCCO, PRESIDENT, EL VALOR: Amoco no longer funds us. Aon
is going through a more difficult time. Waste Management, their
headquarters are here, but we`re really not - there`s not a relationship to
the same extent. Ameritech is now SBC and they`re in Texas.
EASTABROOK: The loss of major corporations, because of mergers,
bankruptcy or relocation can leave gaping holes in the budgets of many
nonprofits. Consultant Jimmie Alford says filling those holes is getting
more difficult.
JIMMIE ALFORD, CHAIRMAN, THE ALFORD GROUP: A small not-for-profit
that may be receiving a $50,000 or $100,000 grant from a particular
corporation that may be phased out over the next year or two, then they
have to go out and find lots of $1,000 gifts or $500 gifts or whatever to
make up for that.
EASTABROOK: Not for profits that are successful raising corporate
dollars are finding more strings attached to them now. They say some
companies are demanding more recognition when they give, while others are
demanding more accountability. The Art Institute of Chicago counts on
corporate sponsorship for many of its exhibitions. The Boeing Company is
sponsoring its current show on American Indian art. The museum is using
Boeing`s six-figure donation for everything from displays to lighting. In
return, the company is recognized at the entrance of the exhibition and in
advertising. But the art institute says some potential sponsors demand
much more.
LISA KEY, DEVELOPMENT VICE PRESIDENT, THE ART INSTITUTE OF CHICAGO:
We`ve had a lot of situations with car manufacturers, because we can`t
really put a car on our premises. There`s no public space that the museum
has that would fit a car. So we`ve never had a car sponsor walk away from
us, but we`ve had to be very creative in what we offer them.
EASTABROOK: Boeing says it doesn`t put unreasonable demands on the
organizations it funds, but the company does make sure it is well
represented in all charitable projects.
ANTOINETTE BAILEY, V.P. COMMUNITY & EDUCATION RELATIONS, BOEING: We`re
not trying to direct those people who know best about exhibits and how they
should do their work. We do tell them the kinds of things that are of
interest to us and we also make sure that the way they project and portray
things are going to be extremely positive and well received and that no one
will be embarrassed by what`s being demonstrated.
EASTABROOK: Today many nonprofits and corporations are signing
contracts that explicitly spell out the missions and expectations of each.
That way either side can end a relationship if it feels doesn`t represent
its best interests. 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.
12/21/04:
Commentary-Hollywood Needs To Reshoot For Content
SUSIE GHARIB: Tonight`s commentator says sometimes it`s best to take the
high road, especially when it comes to how the rest of the world sees the
United States. Here`s Todd Buchholz, author of "Bringing the Jobs Home."
TODD BUCHHOLZ, FORMER WHITE HOUSE ECONOMIC ADVISOR: Hollywood, which
shakes our theater seats with Dolby sound, is tone-deaf. Film and TV miss
out on exports because directors love foul language, sex scenes and sawed-
off shotguns. Hollywood tries to be edgy while scorning family values as
too corny. Hollywood has gained its edge, but lost its balance.
Clearly, there is still a big market for smut. In a theater, we can
spend two hours watching people we would never let into our living room.
Conventional wisdom says I am flat wrong, that Hollywood`s best chance for
exports requires more sex and violence.
Why? Because they are universal. You don`t need a translator to
understand a bedroom scene or Rambo mowing down dozens with a machine gun.
The bullets spoke for Rambo, which was probably best, since even Americans
had trouble understanding Sylvester Stallone`s grunts.
So why should Hollywood tone down the vulgar meter? First, language
barriers are collapsing around the world, making dialogue more accessible.
Second, developing countries respect tradition. China approved Britney
Spears` first tour of that country, but literally insisted she keep her
pants on. Third, all over the world, "date night" includes dinner and a
movie. Food is a leading indicator for movie tickets.
Half of Chinese regularly visit a McDonald`s or a KFC. Because Ronald
McDonald leads the way for Julia Roberts, Chinese moviegoers develop
appetites for more than just easily translated grunts. Emerging Asia is a
crouching tiger. Hollywood better learn what to feed it. I`m Todd
Buchholz.
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.
12/21/04:
Paul Kangas' "Stocks In The News"
PAUL KANGAS: Wall Street moved steadily higher this morning on everything
from better-than-expected earnings from Bear Stearns and Morgan Stanley --
which we`ll detail in a moment -- to upgrades on Intel, American Express,
and McDonald`s. By the noon hour, the Dow was sporting a 70-point gain,
NASDAQ up 20 points.
The market continued its upward trek to levels not seen in over three
years, thanks to falling oil prices and seasonal inflows of money. The Dow
Industrial Average closed up nearly 98 points at 10,759.43. The NASDAQ
Composite rose 23 points to 2150.91. Standard & Poor`s 500 gained 10 3/4
points to 1205.45. Over in the bond market, the 10-year note was up 6/32
to par and 21/32, putting the yield at 4.17 percent.
Topping the active list once again Pfizer (PFE) today on 64 1/2
million shares and bucking its recent trend with a gain of $0.68.
Then Lucent Technologies (LU) down $0.03.
Time Warner (TWX) dropped $0.02.
Qwest Communications (Q) gained $0.27, even though Smith Barney
brokerage began covering the stock with a "sell" recommendation.
Advanced Micro Devices (AMD) down $0.11, fifth in big board volume.
Merck & Company (MRK) managed to gain $0.47.
News Corp. A (NWS.A) up $0.13.
General Electric (GE) a $0.06 rise.
Liberty Media (L) moved up $0.20. Liberty is going to buy additional
voting shares in News Corp., expanding its ownership to 18 percent.
Then came Cablevision Systems (CVC) up $2.95. Positive reaction to
news the company is suspending its plan to spin off its Rainbow media unit.
That`s a 13 percent gain.
American Express (AXP) which of course is a Dow stock, was up $0.59, a
little over a percent. JPMorgan began covering the stock with an "over
weight" rating.
Johnson & Johnson (JNJ) down $0.12. Company warned that its Remicade
drug to treat Crohn`s disease could cause liver risk or liver failure.
Then we see McDonald`s (MCD) moving up $0.20. Bank of America boosted
its price target for McDonald`s stock from $34 to $37 a share.
Union Pacific (UNP) up $3.42. Company sees better than expected fourth
quarter earnings of $0.82 to $0.87 a share.
York International (YRK) plunging $4.90. Company sees 2005 earnings at
the low end of its estimates, $2.60 to $2.90. JPMorgan meanwhile downgraded
York stock from "over weight" to just a "neutral" rating.
Invacare Corporation (IVC) down $4.03. Company cut its fourth quarter
earnings guidance from about $0.80 all the way down to $0.60 to $0.65
citing restrictive Medicare reimbursement policies.
And GTECH Holdings (GTK) was down $2.29. Third quarter earnings
flat, $0.35 same as last year and that`s despite a 24 percent bounce in
revenues. Company sees fourth quarter earnings dropping to $0.31 to $0.33 a
share.
NASDAQ 100 (QQQ) once again topped the NASDAQ`s active list, moving up
$0.48.
Microsoft (MSFT) $0.12 gain.
Intel (INTC) moved up $0.79. Lehman Brothers as I touched on, upgraded
it from "equal weight" to "over weight."
Cisco Systems (CSCO) a $0.31 gain.
Apple Computer (AAPL) up $0.97. That was fifth in dollar volume.
Symantec (SYMC) $0.93 gain.
Google (GOOG) down $1.27.
InterActiveCorp (IACI) moving up $1.53. The company plans to spin off
its travel business into a new company to be called Expedia and will leave
its electronic retail and service business with the long-existing company
IAC.
eBay (EBAY) $0.95.
And Research In Motion (RIMM) moved up $0.25, tenth in volume.
Scholastic Corporation (SCHL) up $1.51. The company will publish the
sixth Harry Potter book on July 16, 2005, "Harry Potter and the Half Blood
Prince."
And finally Rambus (RMBS) down $3.85. There`s concern about potential
legal problems in a patent infringement case that it`s filing against
Infineon.
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.
12/21/04:
Market Stats
NET PERCENT
CLOSE CHANGE CHANGE
DOW CLOSE 10759.43 +97.83 + .9
HIGH 10765.27
LOW 10661.89
NASDAQ COMP. 2150.91 +23.06 +1.1
HIGH 2151.71
LOW 2133.34
VOLUME 1,483.0
PREVIOUS 1,423.0
UP VOLUME 1,161.2
DOWN VOLUME 304.4
DOW TRANSPORTS 3792.09 +61.21 + 1.6
DOW UTILITIES 335.57 +2.36 + .7
CLOSING TICK +758
S&P 500 1205.45 +10.80 + .9
S&P 100 573.36 +5.56 + 1.0
MIDCAP 400 655.50 +6.78 + 1.1
REUTERS/CRB 286.73 -.50 - .2
NYSE COMPOSITE 7167.03 +50.05 + .7
VALUE LINE 398.83 +3.98 + 1.0
RUSSELL 2000 646.20 +8.15 + 1.3
DJW 5000 11881.20 +108.59 + .9
U.S. TREASURIES
5-YEAR NOTE 3.50%
Dec. 15,2009 99 23/32 +2/32 + 3.56
10-YEAR NOTE 4.25%
Nov. 15,2014 100 21/32 +6/32 + 4.17
30-YEAR NOTE 5.375%
Feb. 15, 2031 108 16/32 +5/32 + 4.80
LEHMAN BROS.
LONG BOND INDEX 1768.60 +5.31
DOW CLOSE 10759.43 +97.83 + .9
ADVANCES 2405
DECLINES 945
NEW HIGHS 283
NEW LOWS 10
NET PERCENT
NYSE MOST ACTIVES 4PM CLOSE CHANGE CHANGE
PFE Pfizer 24.97 +.68 +2.8
LU Lucent Tech 3.79 -.03 -.8
TWX Time Warner 19.38 -.02 -.1
Q Qwest Comms 4.50 +.27 +6.4
AMD Adv Micro Device 21.73 -.11 -.5
MRK Merck & Co 31.98 +.47 +1.5
NWSa News Corp A 18.59 +.13 +.7
GE GE 37.17 +.06 +.2
L Liberty Media 10.88 +.20 +1.9
CVC Cablevision Sys 25.06 +2.95 +13.3
NASDAQ CLOSE 2150.91 + 23.06 + 1.1
VOLUME 2,000.4
PREVIOUS 2,008.0
ADVANCES 2035
DECLINES 1103
NASDAQ ACTIVES
QQQQ Nasdaq 100 39.68 +.48 +1.2
MSFT Microsoft 27.07 +.12 +.5
INTC Intel 23.49 +.79 +3.5
CSCO Cisco Systems 19.36 +.31 +1.6
AAPL Apple Comp 63.69 +.97 +1.6
SYMC Symantec Corp 24.97 +.93 +3.9
GOOG Google 183.75 -1.27 -.7
IACI IAC/InterActive 27.41 +1.53 +5.9
EBAY eBay 113.70 -.95 -.8
RIMM Rsch In Motion 87.04 +.25 +.3
AMEX CLOSE 1411.92 - 2.65 - .2
INDEX SHARES
DIA DIAMONDS TRUST 107.41 +.79 +.7
QQQ NASDAQ 100 39.68 +.48 +1.2
SPY S&P DEP.RECEIPTS 120.39 +.92 +.8
STOCKS IN THE NEWS
Display Name
AXP Amer Express 56.44 +.59 +1.1
JNJ Johnson&Johnson 62.95 -.12 -.2
MCD Mcdonald's 32.59 +.20 +.6
UNP Union Pacific 65.67 +3.42 +5.5
YRK York Intl 33.46 -4.90 -12.8
IVC Invacare 47.41 -4.03 -7.8
GTK Gtech Holdings 26.07 -2.29 -8.1
SCHL Scholastic 37.44 +1.51 +4.2
RMBS Rambus 21.50 -3.85 -15.2
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