11/04/05:
The Latest Jobs Report Does a Job On The Markets
SUSIE GHARIB: Another weak employment report led to a
weakness in the stock market today. The major averages were little changed
on news from the Labor Department that American businesses added just
56,000 jobs in October. Economists say hurricanes Rita and Katrina are part
of the reason for the sluggish pace of hiring. Erika Miller reports.
ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: There were many
surprises in today`s employment report, not the least of which was the
headline payrolls figure. Fifty six thousand non-farm jobs were created in
October, about half what was expected. But economists put much of the blame
on the after effects of hurricanes Katrina and Rita.
WILLIAM DUDLEY, CHIEF US ECONOMIST, GOLDMAN SACHS: The interesting
thing on payroll employment was the weakness was very much in the service
sector, which may suggest that there is a little bit more hurricane effects
here than meets the eye on the surface.
MILLER: However, the Bureau of Labor Statistics made a point of saying
job growth was weak even in regions that were not affected by the
hurricanes. Another surprise was a sharp revision downward in the number of
new jobs created in August. That may suggest the economy was not as strong
as previously thought-- before hurricanes Rita and Katrina hit. There was
one positive sign. The unemployment rate dipped unexpectedly to five
percent. Economists warn that data is based on a different survey, which is
considered less reliable than the payrolls number. But it was a big
increase in wage inflation that really raised eyebrows today. Workers`
average hourly earnings rose half a percent to $16.27. That was more than
double expectations. Its also the biggest monthly increase since early
2003. Still, most economists don`t think inflation is becoming more
threatening.
ANTHONY CHAN, SR. ECONOMIST, JP MORGAN ASSET MANAGEMENT: You have to
take the surge in average hourly earnings with a grain of salt and you
might want to look at that number in the context of what has happened over
the last several months. When you look at average hourly earnings over the
last four months, for example, you`ll see that average hourly earnings have
averaged only 3/10 of a percent increase.
MILLER: Analysts agree today`s report is likely to be carefully
scrutinized by Federal Reserve policy makers, but they don`t expect it to
change the outcome of next months meeting.
DUDLEY: I think, on balance, it is not going to sway their
determination to continue to tighten monetary policy. We will definitely
see a tightening at the next meeting.
MILLER: The Fed will also have the December employment report to consider before
deciding policy. Economists hope that data will help quell
concerns about slowing growth and rising inflation. 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) 2005 Community Television Foundation of South Florida,
Inc. ALL RIGHTS RESERVED. Terms of use.
11/04/05:
The Growing Concern Among Farmers About This Year's Corn Crops
SUSIE GHARIB: The nation's heartland is bursting with corn. American farmers
are nearly finished harvesting what should be the second largest corn crop
in U.S. history. But that bumper crop and transportation problems are
driving down prices. As Diane Eastabrook reports, that`s creating a dilemma
for many Midwest farmers.
DIANE EASTABROOK, NIGHTLY BUSINESS REPORT CORRESPONDENT: On his
central Illinois farm, Carl Neubauer scales a mountain of corn. His three
grain silos are filled to their brims with nearly 30,000 bushels of corn.
With grain prices so depressed now, Neubauer has only sold about a quarter
of the corn he recently harvested. He`s waiting for prices to improve
before he sells the rest.
CARL NEUBAUER, FARMER: Normally, well go into harvest with 40 to 50
percent of our crop priced, but due to uncertainty in our production this
summer due to the low rainfall and lower prices, we chose not to price as
much as we normally do.
EASTABROOK: American farmers are expected to harvest just under 11
billion bushels of corn this year, the second largest corn harvest in U.S.
history. There is so much corn, many grain elevators are piling the crop
onto the ground because they`ve run out of storage. With barge traffic on
the Mississippi River still tied up from the hurricanes, it could take
weeks to move it all out. And if you cant move it, you cant sell it. As a
result, the cash price for corn has plummeted to a low $1.65 a bushel.
TIM HANNAGAN, GRAIN ANALYST, ALARON TRADING: Bins are busting and now
were dumping the second largest crop on record there, so its going to take
time to chew through. Were looking at about 14 to 16 months.
EASTABROOK: Still, Hannagan is optimistic about corn prices. He thinks
export demand could increase up to 10 percent next year. Farmers are
expected to breed more cattle and hogs and that would increase demand for
corn as well. Additionally, ethanol production could reach five billion
gallons next year, a 25 percent increase over this year. Hannagan says the
combination of the three could help corn prices rebound.
HANNAGAN: Were probably looking at anywhere from as little as $0.25 a
bushel to $0.45. When you consider the price of December corn futures today
is around $1.97 to $2.00 a bushel, percentage-wise, that`s a significant
increase.
EASTABROOK: Neubauer says over the next several months, hell be
keeping a eye on grain prices, exports and ethanol production. That he says
will help him determine just how much corn hell plant next spring. Diane
Eastabrook, NIGHTLY BUSINESS REPORT, McLean County, Illinois.
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) 2005 Community Television Foundation
of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.
11/04/05: Wal-Mart Defends Its Discounting Practices
PAUL KANGAS: The worlds largest retailer, Wal-Mart, is fighting back
tonight, fighting growing criticism of how it runs its business. The
retailing giant sponsored a conference in Washington today to examine its
impact on the American economy. As Stephanie Dhue reports, Wal-Mart says
its commitment to low prices has paid off for both consumers and workers.
STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: Critics charge
Wal-Mart has lowered wages, forced jobs overseas and shifted health care
costs to taxpayers. To fight back, Wal-Mart hired the research firm Global
Insights to study the retailer`s impact on the economy.
ROBERT MCADAM, CORPORATE AFFAIRS, WAL-MART: We thought this was about
time that we sort of put a stake in the ground and said this is the kind of
study that really matters and that this is the kind of study that contains
the objectivity where you can really get a good look at it.
DHUE: Global Insights found Wal-Marts lower prices saved families an
average of $2,329 last year. The study also shows Wal-Mart created 210,000
jobs nationwide over two decades. The study shows the savings come from
Wal-Marts distribution and inventory control, imports and efficiencies in
its supply chain, not lower wages for employees.
CHRIS HOLLING, ANALYST, GLOBAL INSIGHT: We see evidence that they are
paying the market wage, the wage that balances the supply of labor with the
required skills, education, experience, et cetera to the demand for the
labor.
DHUE: But another study highlighted at the conference found Wal-Mart
increases claims for the earned income tax credit and increases Medicaid
expenditures by nearly $900 per worker. That`s because many Wal-Mart
workers cant afford the company`s health insurance. Critics are pressuring
Wal-Mart to be a more responsible corporation.
PAUL BLANK, CAMPAIGN DIRECTOR, WAKEUPWALMART.COM: On every issue that
the American people care about -- wages, health insurance, discrimination--
Wal-Mart has a poor record. And this is not a small mom and pop company
struggling to get by. This is the largest corporation in America and it
should reflect our values.
DHUE: Wal-Mart dismisses the campaign as a union effort to organize
its workers. Analysts say it`s important for Wal-Mart to improve its image
as it expands from rural and suburban locations into more urban areas.
JOSEPH BEAULIEU, SENIOR STOCK ANALYST MORNINGSTAR: They need to show
that they do take care of their employees and this is both to lower
resistance from municipalities when they`re moving stores and also to gain
motivated, good employees.
DHUE: Wal-Mart will continue to be under fire. A new documentary, Wal- Mart,
the High Cost of Low Price, premieres this weekend in New
York and Los Angeles. Wal-Mart calls the movie an error-ridden
propaganda video that wont have broad appeal. Stephanie Dhue,
NIGHTLY BUSINESS REPORT, Washington.
To
learn more about this topic, click here.
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) 2005 Community Television Foundation
of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.
11/04/05: "Market Monitor"- Douglas Jimerson, president of National Investment Advisors
PAUL KANGAS: My guest market monitor this week is Douglas Jimerson,
president of National Investment Advisors. And Doug, welcome back to
NIGHTLY BUSINESS REPORT.
DOUGLAS JIMERSON, PRESIDENT, NATIONAL INVESTMENT ADVISORS: Thank you,
Paul, great to be back.
KANGAS: For some time now you have been very cautious about owning
stocks saying that they have been showing characteristics of a classic bear
market. Have you changed your opinion or have you become even more bearish?
JIMERSON: I haven`t changed my opinion. I am still of the same
opinion.
KANGAS: Still bearish. But why?
JIMERSON: This market is trendless. Its been flat for, gee, how long,
we cant even remember.
KANGAS: That`s not good for the bears or the bulls.
JIMERSON: No, its not. But the -- the real concern I have is interest
rates. Because we continue to have a ratcheting higher of the short-term
rates and the long-term rates are going up. The Treasury bonds and notes
are now below their long-term moving averages.
KANGAS: So that is your main concern is higher interest rates. How
much higher do you think they can go?
JIMERSON: You know, I don`t have that crystal ball. But it does seem
that the Fed is intent on making certain that they flush out any hint of
inflation in spite of possible deflationary hints from overseas and in
spite of, you know, what we are seeing in the economy employment reports
don`t seem too bullish.
KANGAS: So you believe in the old axiom don`t fight the Fed when they
are boosting.
JIMERSON: Absolutely.
KANGAS: OK. Now one group that you have been bullish on and very
correctly so has been in the oil sector. But you did recommend taking some
profits there on your last visit with us in early May of this year. What is
your stance on the oils now?
JIMERSON: Well, by and large were flat the oils. You know, as you look
at ExxonMobil which I have been talking about for years, this is basically
unchanged, but it`s had a wild ride since last May. And so I really think
that that long-term bull phase for the oil stocks is passed.
KANGAS: OK. Now on that last visit in May, you said that the NASDAQ
market was due for a fall and you even recommended purchasing a bearish
mutual fund. Lets see how its done since May. I think it was the 5th of May
you were with us.
JIMERSON: Right.
KANGAS: There we see it, down 9.3 percent. Now you did have a profit
briefly in it when the market went down. But now its moving against you.
Are you still with it?
JIMERSON: Absolutely. I was calling that a long-term investment. And
the NASDAQ is down for the year still. That fund is up for the year still.
I think that we are going to see a more important or more significant leg
down in the market in the next month or so.
KANGAS: And it will be lead by the NASDAQ market?
JIMERSON: I think so. Although, an important element of this is going
to be a correction in the oil stocks which corrected during the summer and
I expect --
KANGAS: They corrected today pretty well also.
JIMERSON: I believe its the beginning of a next leg down in the oil
stocks.
KANGAS: So no year-end rally for the oils, in other words.
JIMERSON: No. And I think that they there are better opportunities
overseas. I`m suggesting that --
KANGAS: You have some new recommendations on the buy side.
JIMERSON: Yes. I think its good to look at markets that are in a very
different phase from ours. The bubble burst here in 2000. The bubble in
Japan burst in 1990. And their recovery has been under way for a long time.
And their interest rates are very low, practically nil.
KANGAS: Can we get specific as to recommendations?
JIMERSON: A couple of very nice opportunities with no-load funds would
be the Rydex Japan fund.
KANGAS: It has had quite a rise.
JIMERSON: It`s begun a very nice advance.
KANGAS: So you think that this chart just is typical of the beginning
of a trend.
JIMERSON: Oh, I think so. Now obviously its going to correct if our
market corrects. But I think this is a long-term opportunity.
KANGAS: Do you have another choice in that area?
JIMERSON: And Fidelity Japan fund also, another no-load fund. So its
diversified within the Japanese market which is very much out of phase with
the American markets.
KANGAS: OK, so you are going overseas, do you own any of these two
securities personally?
JIMERSON: At this point, no.
KANGAS: But you believe in them.
JIMERSON: Absolutely.
KANGAS: And they`ve got further to go on the upside.
JIMERSON: Yes, I believe so.
KANGAS: We have about half a minute left, Doug. Any last minute
thoughts for our viewers?
JIMERSON: Well, I think that the viewers need to look at the long-term
moving averages of the markets. And we have had a Dow that`s flat. It keeps
testing its long-term moving average. Its down two and a half percent for
the year. This is not a time to be aggressive with stocks.
KANGAS: All right, Doug. I want to thank you very much for your input.
As always interesting.
JIMERSON: Thank you, Paul.
KANGAS: My guest Doug Jimerson of National Investment Advisors.
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) 2005 Community Television Foundation
of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.
11/03/05:
"Paul Kangas' Stocks In The News"
PAUL KANGAS: Wall Streets first reaction to that employment report was
positive with the Dow rising 20 points and the NASDAQ up 10. But upon
closer scrutiny, investors turned defensive, so by late morning, the blue
chips were off 40 points and the NASDAQ up just a fraction. The market
stabilized this afternoon on falling oil prices and except for a weak
energy sector, stocks largely ended the day with small gains. The Dow
Industrial Average closed up 8.17 at 10,530.76.
This week it rose four of the five trading days for a net gain of 128
points or 1 1/4 percent. The NASDAQ Composite was up 9.21 today to 2169.43.
It also rose in four of this weeks five days for a net gain of 79.55 or 3.8
percent. Standard & Poor`s 500 edged a fraction higher today at 1220.14.
Over in the bond market, the 10-year note fell 3/32nds to 96 25/32nds,
putting the yield at 4.67 percent.
Big board volume leader on 23.2 million shares, Pfizer (PFE) edging up
$0.39.
Followed by ExxonMobil (XOM) down $0.67 in the weak energy sector.
Time Warner (TWX) lost a nickel.
Lucent Technology (LU) no change.
Calpine (CPN) down $0.21, a rather large percentage loss. After the
close yesterday, Calpine reported a third quarter loss of $0.45 a share and
said its goal of cutting debt by $3 billion will not be obtained this year.
Johnson & Johnson (JNJ), there you see it, down $0.32. You just heard
the story regarding Guidant.
And then Qwest Communications (Q) up $0.13.
General Electric (GE) a $0.04 gain.
Citigroup (C) $0.15 rise there.
News Corp B (NWSa), tenth in volume, down $0.22.
Honeywell Intl (HON) up $0.47. The company`s board of directors has
approved the purchase of outstanding common shares, up to $3 billion.
That`s 10 percent of the outstanding number of shares.
Halliburton (HAL) down $3.57. A lawsuit was filed in Houston Federal
court today alleging the company did not pay millions of dollars in
overtime to workers in Iraq and Kuwait.
Tesoro Petroleum (TSO) leading the energy group lower, down $5.43
there. Citigroup downgraded Tesoro from "buy" to just a "hold." Let`s have
a look at some of the other majors in the oil sector.
Chevron (CVX) down nearly $1.50.
Almost a $2 drop in Conocophillips (COP).
Marathon Oil (MRO) off over $2.
As was Occidental Petroleum (OXY).
And Sunoco (SUN) tumbling over $4 a share in that weak group.
Molina Healthcare (MOH) moving up $5.39. Third quarter earnings $0.24,
way down from $0.59 a year ago, but the Street was expecting only $0.15 and
revenues were up 30 percent. The company also boosted its 2005 earnings
guidance.
Bill Barrett Corp. (BBG) in the oil, gas and exploration business,
third quarter earnings of $0.30, versus a loss of over $6 last year and
revenues shot up 67 percent in the period.
Boyd Gaming (BYD) did well up $3.75. Third quarter earnings came in at
$0.57, $0.06 better than the Street estimate and well above last year`s
$0.38. Revenues up 27 percent and on top of that, Bear Stearns brokerage
upgraded the stock from "peer perform" to "out perform."
Quanta Services (PWR) in the energy delivery business, up $1.35. Third
quarter earnings came in at $0.11, more than - well almost - yeah, more
than just about triple $0.04 last year and revenues up 13 percent. The
estimate on the Street was not for $0.11, but only $0.04 so the stock was
bound to do rather well.
Google (GOOG) topped the active list again and once again hit a new
closing high, closing in on that $400 target, up $4.48 today.
Then Apple Computer (AAPL) down $0.70, traded as low as $59.62 this
morning after Prudential downgraded Apple from "overweight" to "neutral" on
a valuation basis. It has had quite a rise.
Microsoft (MSFT) a $0.22 gainer.
Intel (INTC) up a dime.
Then Qualcomm (QCOM) rose $0.78, fifth in dollar volume.
Amgen (AMGN) up $1.68.
Cisco Systems (CSCO) $0.36 gain there.
Sandisk (SNDK) rose $0.63.
Symantec (SYMC) an $0.11 advance.
And tenth in volume was Oracle (ORCL) with a $0.41 gain.
Sanmina SCI Corporation (SANM) in the electronic manufactured services
business, fourth quarter earnings tripled, $0.03 versus only a penny last
year and the company sees first quarter coming in at $0.06 to $0.08.
Then we see Emdeon Corporation (HLTH). This company used to be called
WebMD. Fourth quarter earnings doubled to $0.04 versus $0.02 last year, but
that was the low end of the company`s guidance and the company expects full
year earnings estimates to miss the Wall Street estimate overall.
ZipRealty (ZIPR) tumbling $4.77. Third quarter earnings $0.11 versus
break even last year. Revenues up 61 percent, but the earnings were $0.02
below estimates.
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) 2005 Community Television Foundation
of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.
11/04/05:
Market Stats
NET PERCENT
CLOSE CHANGE CHANGE
DOW CLOSE 10530.76 +8.17 + .1
HIGH 10552.38
LOW 10479.39
NASDAQ COMP. 2169.43 +9.21 +.4
HIGH 2172.68
LOW 2156.60
VOLUME 1,526.3
PREVIOUS 1,998.2
UP VOLUME 747.7
DOWN VOLUME 741.4
DOW TRANSPORTS 3935.22 -38.22 - 1.0
DOW UTILITIES 392.90 -1.32 - .3
CLOSING TICK +975
S&P 500 1220.14 +.20 + .0
S&P 100 561.97 +.57 + .1
MIDCAP 400 714.16 -.94 - .1
REUTERS/CRB 318.77 -2.52 - .8
NYSE COMPOSITE 7507.56 -27.25 - .4
VALUE LINE 401.35 +.01 unch.
RUSSELL 2000 658.16 -.61 - .1
DJW 5000 12219.60 +1.33 + .0
U.S. TREASURIES
5-YEAR NOTE 4.25%
Oct. 15,2010 98 20/32 -2/32 4.57
10-YEAR NOTE 4.25%
Aug. 15,2015 96 25/32 -3/32 4.67
30-YEAR NOTE 5.375%
Feb. 15, 2031 107 15/32 -5/32 4.86
LEHMAN BROS.
LONG BOND INDEX 1719.57 -5.94
DOW CLOSE 10530.76 +8.17 + .1
ADVANCES 1511
DECLINES 1735
NEW HIGHS 66
NEW LOWS 70
NET PERCENT
NYSE MOST ACTIVES 4PM CLOSE CHANGE CHANGE
PFE Pfizer 22.26 +.39 +1.8
XOM Exxon Mobil 57.90 -.67 -1.1
TWX Time Warner 17.61 -.05 -.3
LU Lucent Tech 2.78 unch. unch.
CPN Calpine 2.09 -.21 -9.1
JNJ Johnson &Johnson 60.88 -.32 -.5
Q Qwest Comms Intl 4.72 +.13 +2.8
GE GE 34.02 +.04 +.1
C Citigroup 45.60 +.15 +.3
NWSa News Corp “A” 14.17 -.22 -1.5
NASDAQ CLOSE 2169.43 + 9.21 + .4
VOLUME 1,754.7
PREVIOUS 2,364.8
ADVANCES 1530
DECLINES 1465
NASDAQ ACTIVES
GOOG Google 390.43 +4.48 +1.2
AAPL Apple Computer 61.15 -.70 -1.1
MSFT Microsoft 26.66 +.22 +.8
INTC Intel 23.99 +.10 +.4
QCOM Qualcomm 44.80 +.78 +1.8
AMGN Amgen 79.19 +1.68 +2.2
CSCO Cisco Systems 17.87 +.36 +2.1
SNDK SanDisk 65.14 +.63 +1.0
SYMC Symantec 18.63 +.11 +.6
ORCL Oracle 12.61 +.41 +3.4
AMEX CLOSE 1684.69 - 9.52 - .6
INDEX SHARES
DIA DIAMONDS TRUST 105.19 -.10 -.1
QQQ NASDAQ 100 40.08 +.14 +.4
SPY S&P DEP.RECEIPTS 122.11 -.16 -.1
STOCKS IN THE NEWS
HON Honeywell Intl 35.90 +.47 +1.3
HAL Halliburton Co 61.11 -3.57 -5.5
TSO Tesoro 58.57 -5.43 -8.5
CVX Chevron 58.01 -1.47 -2.5
COP ConocoPhillips 66.25 -1.92 -2.8
MRO Marathon Oil 60.93 -2.20 -3.5
OXY Occidental Pete 78.80 -2.01 -2.5
SUN Sunoco 72.85 -4.14 -5.4
MOH Molina Hlthcare 27.49 +5.39 +24.4
BBG Bill Barrett 37.65 +4.75 +14.4
BYD Boyd Gaming 46.92 +3.75 +8.7
PWR Quanta Services 12.79 +1.35 +11.8
SANM Sanmina-SCI 4.41 +.75 +20.5
HLTH Emdeon 7.84 -1.11 -12.4
ZIPR Ziprealty 8.40 -4.7 -36.2
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