11/23/05: What's Behind The Latest Wall Street Rally?
SUSIE GHARIB: Investors have one more reason to be thankful
this Thanksgiving. All the major stock averages are finally in the black
for the year. The Dow posted its fifth consecutive gain today, rising 44
points and the NASDAQ added six. With just five weeks left in 2005, Scott
Gurvey looks at whether stocks can finish the year in the black.
SCOTT GURVEY, NIGHTLY BUSINESS REPORT CORRESPONDENT: As the market
enters the home stretch, the major averages are now all in positive
territory for the year. The S&P 500 and the NASDAQ composite are at levels
which haven`t been seen for 4 1/2 years. The Dow is close to that mark.
The industrial average has gained 1.2 percent. The S&P 500 is up 4.4
percent and the NASDAQ Composite is up 3.9 percent. Of course, what
investors want to know is where do we go from here? And there are fears
that a third straight year of gains for stocks will mean the end is near
for a normal market cycle. But many professionals disagree. They cite
price to earnings multiples as a reason why the bull market could have more
room to run in 2006.
STUART FREEMAN, CHIEF EQUITY STRATEGIST, A.G. EDWARDS: The S&P, for
instance, P/E multiple for next year is about 15.8 times. At the top of
the bull market into `99 and 2000, it moved up toward the 30 times area.
So we are hitting up in some similar levels, but the stocks are a lot
cheaper at these levels now because earnings have been growing for the
entire 4 1/2, five years.
GURVEY: The price of money is the biggest worry, according to most
market watchers. The Federal Reserve has been raising interest rates to
ward off inflation and is close to the point where rates would be
considered neutral. Some fear the Fed will continue to raise and actually
stifle economic growth.
STEVEN BLEIBERG, GLOBAL INVEST. STRATEGY DIRECTOR, CITIGROUP ASSET
MANAGEMENT: They do have a history in the past of quote overshooting; they
raise rates a little too far. Growth slows more than they had expected and
then they end up having to cut rates again a few months later. And in
particular, because we have a new Fed chairman coming in at a time when
headline inflation numbers have crept up above 4 percent, does raise the
risk I think that Mr. Bernanke will want to demonstrate his credibility
against inflation, so I think that`s a risk.
GURVEY: The next two Fed meetings are still on Mr. Greenspan`s watch
and the markets are predicting rate hikes at each. Scott Gurvey, 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.
11/23/05:The Science & Business of Nanotechnology
SUSIE GHARIB: It could be the next big thing on Wall Street and it`s really,
really small. Interest is heating up these days in nanotechnology, the
manipulation of matter at the atomic level. Some analysts say nanotech
could be a trillion dollar global industry in the next decade. To see how
something so small could have such a big economic impact, Washington bureau
chief Darren Gersh visited one of the nation`s leading nano research labs.
DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: The future will
be small. The future will be fast. How fast are these guys?
MICHAEL FUHRER, ASSOCIATE PROFESSOR, UNIVERSITY OF MARYLAND: So
they`re about 70 times faster than silicon if we apply the same voltage to
the nanotube, so you can make faster devices, lower powered devices with
nanotubes than you could with silicon.
GERSH: The future will be nanotechnology.
GARY RUBLOFF, DIRECTOR, MARYLAND CENTER FOR INTEGRATED NANOSCIENCE AND
ENGINEERING: I think nano is going to change the world and I don`t mean to
say that as hype. So when you look at the landscape, it`s incredibly rich
with diversity of application and of the way in which chemistry, physics
and biology are being exploited.
GERSH: Nanotechnology manipulates matter at the atomic level. The
idea is to rearrange atoms to make stronger materials, smarter sensors and
better drug delivery systems. The industry journal "Small Times" named the
University of Maryland the nation`s leading center for nano research and
education. But the scientists here say the ultimate success of nanotech,
really depends on what happens outside the lab.
RUBLOFF: Among the challenges are how do we make a seamless
integration between the science that`s driving so much of what we see today
and the economic sphere and manufacturing? We`re trying to do that by
integrating science with engineering and with industrial outreach.
GERSH: Nano also raises new environmental concerns about the health
risk of super small particles. The EPA is now studying the issue. It could
be a critical factor in the acceptance of nanotech. Analysts say consumers
are already skeptical that business and government can manage the risks
posed by new technologies.
DAVID REJESKI, DIRECTOR, PROJECT ON EMERGING NANOTECHNOLOGIES: So you
have this weird set of tensions. People are very excited about it, know
very little about it, but on the other hand are somewhat skeptical. I think
we`re facing a public today that is generally more suspicious and more
educated about technology than there were 30 or 40 years ago.
GERSH: And nanotech will require new ways of thinking and doing.
Consider manufacturing. The old way is to cut things down to size. Now
consider nano, which builds things up atom by atom, just like these nano
tubes. They`re basically tiny wires.
FUHRER: These nano tubes were grown from little tiny iron catalyst
particles that are lying on the surface and they`re grown in an oven.
GERSH: What do you mean grown?
FUHRER: Well, grown.
GERSH: You grow corn; you throw it in the ground, it comes up. How do
you grow a nanotube?
FUHRER: Right. It grows from a little seed particle, which we call a
catalyst, which is just a little tiny ball of iron. And we put that
particle in an oven and put methane flowing over it, and there`s carbon in
the methane, and that carbon dissolves in the iron. And so this little
tiny iron particle can actually spew out a nanotube that`s a millimeter
long, which is a million times longer than the particle is wide.
GERSH: If that sounds too complicated, just understand this: nanotubes
could one day replace silicon as the basis of the chips in your television
and everything else electronic.
FUHRER: These nanotubes are incredible conductors, and we can make
them. We can measure them in the lab, and they really do an incredible job
at conducting electricity and that`s real. Making it into a product that I
can sell you tomorrow -- we`re not quite there yet.
GERSH: Not yet, but big companies like IBM and Intel are investing
in nano.
REJESKI: So there`s huge economic bets being placed on
nanotechnology. And what you want is an engaged and informed public,
because ultimately they`ll be the ones that open their pocketbook up and
accept and buy these products.
GERSH: So it is possible that nanotech will change the world, one
small step at a time. Darren Gersh, NIGHTLY BUSINESS REPORT, College Park,
Maryland.
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.
11/23/05: Mississippi Casinos Want To Gamble On A New Year's Resurrection
SUSIE GHARIB: It`s only been a few months since hurricane Katrina
plowed through the Gulf coast, but one area of the region is already well
into rebuilding mode. In fact, Mississippi`s Gulf coast casino hotels are
planning to reopen for business on New Year`s Eve. All the area`s gaming
locations were heavily damaged by Katrina, but the desire for profit and a
change in state law, are helping fuel a quick recovery. Jeff Yastine
reports.
JEFF YASTINE, NIGHTLY BUSINESS REPORT CORRESPONDENT: They sit like
beached whales on the Gulf-front roadways and back bay bayous of the
Mississippi Gulf coast -- these barge-mounted, floating casinos, the geese
that laid the region`s golden economic eggs -- grounded, literally, by
hurricane Katrina`s winds and waves. But a lot has been happening here
since then. The main change, the state law which required floating casinos
in the first place. It`s a whole new world for the Mississippi Gulf coast. Katrina
pushed floating gambling halls like this one on to dry land, but in
October, the Mississippi legislature voted -- in a figurative sense-- to
keep them there. As the region rebuilds, gaming companies will be allowed
to build new and larger casinos here on dry land, but within 800 feet of
the shoreline, while floating casinos like this one are destined for the
scrap heap. For gaming operators, the new law means a world of savings in
rebuilding costs alone
BEVERLY MARTIN, EXECUTIVE DIRECTOR, MISSISSIPPI CASINO OPERATORS
ASSN.: It`s very expensive to build something on water as opposed to
building something on land. So we can take the same amount of money that
we invested on water and build twice the facility on land, which is what
most of them are planning to do.
BERNIE BURKHOLDER, PRESIDENT & CEO, TREASURE BAY CASINO: Business
loves stability. You can insure at reasonable rates; you can finance at
reasonable rates. People can plan, look out 10, 15, 20 years. A banker
can say I`ll consider giving you a 15-year amortization on this hotel
rather than, I think I better do this in five.
YASTINE: The change in the state`s gaming law was not without
controversy. Church groups recognize the economic benefits of the gaming
industry, but believe allowing casinos to expand -- even 800 feet onto
shore, as the law allows -- is too much.
CHUCK REGISTER, PASTOR, FIRST BAPTIST CHURCH OF GULFPORT: Now the
legislation that the governor signed brings our casinos north of highway 90
and the reason 90 is such a significant landmark is because in my
community, Gulfport, highway 90 separates the community from the tourist
district. South of 90: water sports, the beach, casino gaming, wonderful
seafood restaurants, charter boat fishing, et cetera. North of highway 90:
that`s where we raise our children. That`s where we send our children to
school. That`s where we try to teach them the values and the morals to live
by.
YASTINE: Nevertheless, the switch to shore-based casinos is re-
energizing the gaming industry here. Managers say the opportunities for
rebuilding are endless compared to the confines of the previous floating
barges.
KEITH CROSBY, GENERAL MANAGER, PALACE RESORT & CASINO: You`re
immediately confined on all sides. You can`t go down and you can`t blow
walls out and you can`t build up because of the stability of the vessel and
the depth of the vessel. The land-based opportunity you can build out as
far as you want to go. There`s limits here based to the legislation, but
there`s no limit to the creativity.
YASTINE: Larger operators are also responding, with MGM Mirage,
Harrah`s and others, readying plans for something the Mississippi Gulf
coast has not had before -- true destination resort hotels.
LARRY GREGORY, EXECUTIVE DIRECTOR, MISSISSIPPI GAMING COMMISSION:
We`re no Las Vegas. We never have wanted to be a Las Vegas. What we`ve
always wanted is an entertainment complex to provide a gaming resort
destination for visitors all across this country and this is not or it`s
very difficult to accomplish under the guidelines where the casinos were
placed prior to Katrina. They had to be placed on barges.
YASTINE: The work has already started. The barges, sitting where
Katrina left them, are being cut up and removed. And most of the hotels
here are busy adding small temporary casinos, aiming to reopen in time to
ring in the New Year and mark a new start for this hurricane-battered
region. Jeff Yastine, NIGHTLY BUSINESS REPORT, Biloxi.
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.
11/23/05: "Money File"-Tis The Season For Shoppers To Go Charge Crazy
SUSIE GHARIB: In the "money file" tonight, the calendar may say November,
but it`s not too early to start thinking about January and your holiday
shopping credit card bills. Here`s Terri Cullen, personal finance
columnist for "the Wall Street Journal online."
TERRI CULLEN, REPORTER, THE WALL STREET JOURNAL ONLINE: Consumers
who have become used to charging up a storm in December and paying it off
in the new year may find it more difficult than ever to make their bills.
Interest rates on credit cards have been steadily rising, to an average of
nearly 13 percent and many major credit card issuers have boosted their
minimum monthly payments at the urging of government regulators. What this
means is some consumers may see their monthly credit card payments double.
Consumers are expected to spend an average of $738 on gifts this
holiday season, up from $702 last year, according to an estimate by the
National Retail Foundation. Much of those sales will be purchased using
credit cards. Holiday purchases paid by credit cards will be piled on top
of thousands of dollars of credit card debt already charged up this year.
And with the new bankruptcy reform laws in effect, many who can`t afford to
make their payments won`t be able to find relief in bankruptcy court.
So let`s make this the holiday season the year without a credit
card. Figure out now how much you can afford to spend this year on gifts
without tapping into your credit line, and then split that amount among the
people on your gift list. Check last year`s bank and credit card
statements to get an idea of how much you typically spend and cutback where
you can. If you`re the type who prefers to pay with a credit card, to get
frequent flier miles or other types of rewards, limit your spending to the
budget you`ve set and make an early new year`s resolution to pay your card
off in full in January. I`m Terri Cullen.
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.
11/32/05:"Last Word"-Turkey Day Tidbits
SUSIE GHARIB: And finally on this night before Thanksgiving, here are a
few interesting tidbits about the holiday. American farmers will produce
256 million turkeys this year. They`ll also grow 629 million pounds of
cranberries and 1.6 billion pounds of sweet potatoes. There are three
places in the U.S. named for the holiday`s traditional main course:
Turkey, Texas; Turkey, Louisiana; and Turkey, North Carolina. Eight places
in the U.S. are named cranberry or some variation of the word. And 20
places bear the name of Plymouth, as in Plymouth Rock, which legend has it
was the first location of the first Thanksgiving. But Paul, there`s just
one township in the U.S. named Pilgrim and that`s in Missouri.
KANGAS: Well, imagine those pilgrims take great pride in that
name.
GHARIB: Indeed, they do.
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.
11/23/05:
"Paul Kangas' Stocks In The News"
PAUL KANGAS: While Wall Street`s blue chips had an opening correction of
recent gains as the Dow fell about 20 points at the outset of trading,
while the NASDAQ lost two points. The market then rallied in response to
those lower oil prices and buyers became bolder after that jump in consumer
sentiment. So at noontime, the Dow was up 45 points, NASDAQ up 10. The
Dow reached an 80 point advance this afternoon, but caution ahead of the
holiday trimmed it back a bit. Dow Industrial Average still closed up
44.66 at 10,916.09. NASDAQ Composite rose 6.42 ending at 2259.98.
Standard & Poor`s 500 Index was up 4.38 at 1265.61. Over in the bond
market, the 10-year note fell 11/32 to par and 7/32, putting the yield at
4.47 percent.
New York exchange volume leader on 22.7 million shares, Lucent
Technology (LU) edging up $0.07.
And then Motorola (MOT) $0.64 gain. Bank of America says the new
wireless subscription growth worldwide is continuing at a torrid pace and
may top fourth quarter expectations. Bank of America sees Nokia the best
play in the field. Nokia (NOK) stock up $0.14. It sees Motorola (MOT) as
number two and then Qualcomm (QCOM) as number three in the field. Qualcomm
edged up $0.08.
United Micro Electronics (UMC) up $0.21.
Pfizer (PFE) $0.26 gain.
Liberty Media (L), fifth in big board volume lost $0.02.
Then General Electric (GE) down $0.12.
Nortel Networks (NT) a $0.02 gainer.
Eastman Kodak (EK) had a good move up, $1.87, traded as high as $24.90
after the company said a Federal tax settlement will boost fourth quarter
earnings by $0.80 to $0.90 a share.
Ford Motor Co (F) up $0.09.
And then tenth in big board volume Time Warner (TWX) with a $0.15
gain.
Mobile Telesystems Ads (MBT) American Depository shares, this is that
big Russian cell phone company and today it reported lower than expected
third quarter profits of $738 million versus the Street estimate of $752
million. Also the company expressed concern about its shrinking profit
margins.
FMC Corp (FMC), the big agrichemical company up $2.33. Bank of America
upgraded the stock from "neutral" to "buy" and also boosted its price
target by $2 to $59 a share.
Aeropostale Inc (ARO) gained $1.67 after Bank of America also upgraded
this stock from "neutral" to a "buy."
And Agere Systems (AGR) rose $1.03. CIBC World Markets brokerage
upgraded it from "sector perform" to "sector outperform."
Ethan Allen Interiors (ETH), the furniture company, up $2.35. Morgan
Keegan brokerage upgraded it from "under perform" to "market perform."
Michaels Stores (MIK) rising $2.82. Third quarter earnings higher,
$0.40 versus $0.31 last year, $0.03 better than the Street expected and the
company sees fourth quarter earnings running all the way up to $0.88 to
$0.92 a share.
Atwood Oceanics (ATW) on the downside by $2.48. The company cut its
fourth quarter earnings estimate from the $0.30 to $0. 40 per share range,
all the way down to $0.20 to $0.25 per share and the company cited customer
delays and higher expenses.
Hormel Foods (HRL) lost $2.28. Fourth quarter earnings were high,
$0.59 versus last year`s $0.50 and a penny above the Street consensus. But
the company hinted its first quarter earnings could miss the Wall Street
estimate of $0.50 a share.
Google (GOOG) topped the active list again on NASDAQ and yes, hit
another new high, up $6.39. Of course, Monday UBS financial boosted its
price target from $430 to $500 a share.
Intel (INTC) $0.48 gain.
Microsoft (MSFT) edged a penny higher.
Research in Motion (RIMM) down $0.80.
And Apple Computer (AAPL) $0.59 gain.
Cisco Systems (CSCO) was up $0.16.
Yahoo! (YHOO) a $0.14 gain there.
Sandisk (SNDK) dropped $0.02.
eBay (EBAY) an $0.11 loss.
And then Qualcomm (QCOM) as I touched on earlier, up $0.08. That was
tenth in volume.
Alexion Pharmaceuticals (ALXN) tumbling $8.03. The problem is,
company`s experimental heart drug failed to meet its primary goal.
And then Petco Animal Supplies (PETC) down $2.14. Third quarter
earnings lower, $0.23 versus last year`s $0.36 and the company gave a
rather cautious fourth quarter outlook.
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.
11/23/05:
Market Stats
NET PERCENT
CLOSE CHANGE CHANGE
DOW CLOSE 10916.09 +44.66 + .4
HIGH 10950.75
LOW 10855.34
NASDAQ COMP. 2259.98 +6.42 +.3
HIGH 2269.30
LOW 2250.40
VOLUME 1,453.7
PREVIOUS 1,685.9
UP VOLUME 943.1
DOWN VOLUME 497.4
DOW TRANSPORTS 4176.08 -4.11 - .1
DOW UTILITIES 401.85 +3.34 + .8
CLOSING TICK +654
S&P 500 1265.61 +4.38 + .4
S&P 100 582.01 +2.18 + .4
MIDCAP 400 741.14 +1.37 + .2
REUTERS/CRB 314.38 -1.12 - .4
NYSE COMPOSITE 7743.34 +27.99 + .4
VALUE LINE 414.74 +1.37 + .3
RUSSELL 2000 683.14 +.59 + .1
DJW 5000 12678.87 +42.13 + .3
U.S. TREASURIES
5-YEAR NOTE 4.50%
Nov. 15,2010 100 18/32 -5/32 4.38
10-YEAR NOTE 4.50%
Nov. 15,2015 100 7/32 -11/32 4.47
30-YEAR NOTE 5.375%
Feb. 15, 2031 109 25/32 -26/32 4.71
LEHMAN BROS.
LONG BOND INDEX 1746.23 -9.92
DOW CLOSE 10916.09 +44.66 + .4
ADVANCES 1989
DECLINES 1324
NEW HIGHS 258
NEW LOWS 80
NET PERCENT
NYSE MOST ACTIVES 4PM CLOSE CHANGE CHANGE
LU Lucent Tech 2.97 +.07 +2.4
MOT Motorola 24.64 +.64 +2.7
UMC United Microelec 3.19 +.21 +7.1
PFE Pfizer 21.64 +.26 +1.2
L Liberty Media 7.73 -.02 -.3
GE GE 35.94 -.12 -.3
NT Nortel Networks 3.06 +.02 +.7
EK Eastman Kodak 24.02 +1.87 +8.4
F Ford Motor Co 8.43 +.09 +1.1
TWX Time Warner 18.32 +.15 +.8
NASDAQ CLOSE 2259.98 + 6.42 + .3
VOLUME 1,623.0
PREVIOUS 1,921.1
ADVANCES 1600
DECLINES 1417
NASDAQ ACTIVES
GOOG Google 422.86 +6.39 +1.5
INTC Intel 26.64 +.48 +1.8
MSFT Microsoft 27.92 +.01 +.0
RIMM Rsch In Motion 66.28 -.80 -1.2
AAPL Apple Computer 67.11 +.59 +.9
CSCO Cisco Systems 17.44 +.16 +.9
YHOO Yahoo! 42.50 +.14 +.3
SNDK SanDisk 49.60 -.02 -.0
EBAY eBay 46.64 -.11 -.2
QCOM Qualcomm 46.01 +.08 +.2
AMEX CLOSE 1725.92 - 1.00 - .1
INDEX SHARES
DIA DIAMONDS TRUST 109.10 +.46 +.4
QQQ NASDAQ 100 41.80 +.10 +.2
SPY S&P DEP.RECEIPTS 127.03 +.73 +.6
STOCKS IN THE NEWS
MBT Mobile Telesys 35.60 -3.32 -8.5
FMC FMC Corp 52.65 +2.33 +4.6
ARO Aeropostale 24.47 +1.67 +7.3
AGR Agere Systems 12.80 +1.03 +8.8
ETH Ethan Allen 38.83 +2.35 +6.4
MIK Michaels Stores 38.32 +2.82 +7.9
ATW Atwood Oceanics 71.05 -2.48 -3.4
HRL Hormel Foods 32.74 -2.28 -6.5
ALXN Alexion Pharm 21.53 -8.03 -27.2
PETC Petco Animal 21.23 -2.14 -9.2 |
