12/06/05:
NYSE Members Approve Board's Purchase of Archipelago
LINDA O’BRYON: Good evening everyone. Tonight, The
New York Stock Exchange is one step closer to becoming a public
company. Late this afternoon, NYSE members overwhelmingly
approved the big board’s purchase of electronic trading
firm Archipelago Holdings. The deal transforms the exchange
into a for-profit public company and makes it easier to compete
with its electronic rivals. Suzanne Pratt looks at the move
and what it could mean for individual investors.
SUZANNE PRATT, NIGHTLY BUSINESS REPORT CORRESPONDENT: The
landmark deal is expected to profoundly affect the way the
big board does business in the 21st Century. The purchase
of Archipelago gives the exchange an electronic trading platform,
better equipping it to compete with its rival NASDAQ. The
transaction also turns the 213-year-old institution into a
public company, 70 percent owned by its member firms. That
means the NYSE will be able to use its shares as currency
for future acquisitions.
ROBERT MCCOOEY, CEO, THE GRISWOLD COMPANY: This transaction
is about members becoming shareholders in a new and dynamically
growing enterprise which will be a tremendous competitive
environment for all investors going forward.
PRATT: Since the deal was announced in April, a seat on the
exchange has more than doubled from under $2 million to $4
million today. Even though it’s easy to see why most
big board members are embracing the new era, it’s less
clear whether the changes will benefit small investors. Some
members say the merger is not designed to do anything for
individual investors. Others, however, say because the deal
accelerates the exchange’s move away from floor-based
trading, it should make many transactions more efficient.
In addition, greater competition should lead to lower trading
prices.
BILL CLINE, PARTNER, ACCENTURE: I think that probably over
time, as we see further efficiencies through the use of technology
and electronic trading, it’s likely to do so. But certainly
strong competition in the capital markets has proven to keep
lowest total cost of trading front in mind.
PRATT: On top of that, the deal will make it easier for the
NYSE to offer investors a broader array of products.
YAKOV AMIHUD, PROFESSOR, NYU STERN SCHOOL OF BUSINESS: The
plan is to trade a whole host of securities: stocks, options,
futures, bonds, exchange traded funds, perhaps foreign exchange.
We don’t know what the future is holding. So it will
be like a Wal-Mart of trading.
PRATT: Others also say the more efficient those U.S. markets
are, the easier it is to raise capital and the better it is
for the U.S. economy and all investors. 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) 2005 Community Television Foundation of South Florida,
Inc. ALL RIGHTS RESERVED. Terms of use.
12/06/05:
One On One With Scott McNealy, Chairman & CEO of Sun Microsystems
JEFF YASTINE: Sun Microsystems is rolling out two new servers
that will take some of the heat off its business -- quite
literally. The servers, named T-1000 and T-2000, use a version
of the Unix operating system, as well as advanced chips that
boost computing power while using less electrical power. That
means they generate less heat, a critical factor for data
centers that must keep servers up and running. New York Bureau
Chief Scott Gurvey talked with Sun’s Scott McNealy today
about the new chips and servers and began by asking what the
need for these new products.
SCOTT MCNEALY, CHAIRMAN & CEO, SUN MICROSYSTEMS: I think
the challenge everybody has is how do you get enough power,
energy into the server room? How do you then cool off the
server room? How do you have enough space? Data center managers
are absolutely just running out of space on where to put their
machines and how to get them powered up and how to cool them.
So we’re announcing our cool threads technology -- I
guess I should wear a suit for that particular event, highly
unusual for me - but the opportunity to basically do a transaction
or a computer task in a hardware thread, we call that, you
know, in typical, historical venues, it would take about 100
watts to run a thread, using a standard X-86 microprocessor.
With this spark processor, we can actually run a threat in
about two watts. So basically, taking if from 100 down to
two is a huge improvement in watts per thread, which will
lower -- if you think about Google, they have -- I don’t
know, I’m guessing -- a half a million processors to
go do these Google searches. One of their number one costs
is actually their power bill, their energy bill from Pacific
Gas & Electric to go run the grid.
SCOTT GURVEY, NIGHTLY BUSINESS REPORT CORRESPONDENT: A 100-watt
light bulb is something people can understand. If you have
thousands or tens of thousands of these things --
MCNEALY: Hundreds of thousands of these things showing up
on a grid now. So it’s a big deal. It is a very big
deal. It’s a lot of power.
GURVEY: What do you see in terms of the market right now,
just the economic conditions?
MCNEALY: It’s mixed and different geographies tend
to bounce up and down and around and we do see that the network
-- people are starting to discover -- they’re starting
to call it web 2-dot-0, that the network didn’t -- the
whole Internet thing didn’t go away and there’s
some very successful new business models being created, Google
and Yahoo! and eBay, salesforce.com, those kinds of companies
are all coming up with very innovative models.
GURVEY: How do you describe Sun now when you describe the
mission of the company?
MCNEALY: We have a very clear mission and that is to create
the infrastructure -- we want to be the interior designer
and implementer of your data center and when you go and look
at what’s happening, there’s like, several million
people being added every seven days on to the Internet and
they’re becoming not just the click and look, but actually
the click and contribute, or the participation age era of
Internet computing. We want to power that participation age,
the blogging, the podcasting, the (INAUDIBLE), the transacting
and the video and audio editors that we’re all becoming
on our own. And so our whole focus is just providing and being
that data center infrastructure provider with open interfaces
and sharing.
GURVEY: And how healthy is Sun itself at this point, in terms
of its own reorganization, repositioning that’s been
going on now for the years?
MCNEALY: We’ve been working pretty hard the last few
years. We’ve gotten costs way out. We’ve taken
about six million square feet of space out. We’ve taken
out about 10,000 employees, a little more than that. We have
made some wonderful new acquisitions of storage tech, and
Cibion and Procom, Terentela, Seven space, Acalia -- all have
been really, really positive additions to the product portfolio.
We’ve redone the product line, upgraded all the spark
and Solaris and middle ware technologies and our storage technologies
and we’re in an outstanding position. This is a big
day. This was the last really big push we wanted to do in
the ‘05 makeover of the company and as we head into
next year, we’re 16 straight years cash flow positive
from operations. We have a $4.5 billion of cash in the bank
and an enormous new image and spin on the company that I don’t
think people have seen before and the best product line far
and away that we’ve of had. So we’re pretty excited
about ‘06.
GURVEY: And you’re still talking to Steve Ballmer?
MCNEALY: Absolutely, he’s a good buddy.
GURVEY: Thank you, sir.
MCNEALY: See you later.
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.
12/06/05: Kids & Obesity
O’BRYON: Well Jeff, Well America’s kids
are facing an epidemic of obesity and America’s food
and beverage makers are part of the problem. That’s
the conclusion of a new report from the Institute of Medicine,
which says food and beverage makers should get healthy or
face regulation. The institute says food marketed to children
is often high in calories and low in nutrition and that often
leads to bad decisions about what children eat. Darren Gersh
reports.
DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: Today’s
report confirms what every parent knows: all that junk food
marketing has a direct influence on what kids eat and the
foods they beg for in the grocery store. Researchers say the
industry spends $10 billion marketing to young children foods
that are more often than not high in sugar and fat and low
in nutritional value.
MARY STORY, SCHOOL OF PUBLIC HEALTH, UNIVERSITY OF MINNESOTA:
The current marketing practices are putting the diets and
diet-related health of children and youth in this country
at great risk.
GERSH: Obesity in children has tripled in the last 40 years
and the Institute of Medicine’s report "Food Marketing
to Children and Youth" offers a comprehensive set of
recommendations for change. The report calls for food manufacturers
and restaurants to put more of their money into developing
foods and meals for kids that are lower in calories, sugar
and fat. Schools should improve the nutritional value of food
sold on campus. The institute also calls for advertising industry
self-regulation, asking marketers to use cartoon characters
to pitch only healthy foods. Just 20 percent of the food marketing
ad dollars aimed at kids are spent on television, which is
federally regulated and the report says voluntary standards
are needed to control the food ads kids see on the Internet.
ELLEN WARTELLA, PROVOST, UC RIVERSIDE: One could say that
food marketing is ubiquitous to children -- things on the
Internet, adver-gaming, product placement in stores.
GERSH: The committee argues heavy exposure to television
watching and marketing is associated with obesity, but it
stopped short of saying TV advertising causes expanding childhood
waistlines. Advertisers shot back that children are overweight
now because they aren’t getting enough exercise and
the food industry says it is not getting the credit it deserves.
STEPHANIE CHILDS, SPOKESWOMAN, GROCERY MANUFACTURERS ASSOCIATION:
In the last several years, there’s been a sea change
in what companies are doing to change product formulations
-- introduce new healthy-for-you, fun- for-you, better-for-you
foods as well as develop marketing campaigns to make sure
parents know those options are available for their children.
GERSH: Congress asked for this report and while the recommendation
now is for voluntary action by the food industry, the Institute
of Medicine says lawmakers should put in place new regulations
if companies don’t pitch a healthier lifestyle to our
increasingly unhealthy children. Darren Gersh, 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.
12/06/05: Kevin
McCormally's "Year-End Tax Tips" -
Moves To Make Before The New Year
O’BRYON: It’s that time of year again and no,
we don’t mean Christmas. It’s time to take advantage
of year-end strategies to lower your taxes. There are many
things you can do to keep Uncle Sam from keeping too much
of your cash. So this week, we’ll have some last minute
tax tips for you to consider. Here’s Kevin McCormally,
editorial director of Kiplinger’s.
KEVIN MCCORMALLY, EDITORIAL DIR., KIPLINGER’S: It’s
funny how carefully we count down the shopping days until
Christmas but give scant attention to the number of tax-saving
days left before the end of the year. But what you do between
now and then can have a major impact on your tax bill next
spring, which is why, for the next few days, I want to focus
on ways to save you money. As NIGHTLY BUSINESS REPORT viewers,
your investments probably hold a bucketful of opportunities.
Start by drawing up a list of your trades so far in 2005,
with the gain or loss on each. Now do the same thing for paper
profits and losses on securities you still own. If you have
a net gain so far, consider selling stocks or mutual funds
that have lost money. Now don’t make an investment change
solely for tax reasons, but the prospect of a money-saving
tax loss might be the motivation you need to weed out a weak
performer. On the other hand, if you have a net loss so far
or a carryover loss from your 2004 return, take a hard look
at your winners. Is now the time to take some money off the
table? To the extent that you have losses to sop up your gains,
your profits are effectively tax-free. You don’t necessarily
want to use up all your losses, though, since up to $3,000
worth can be used to offset other kinds of income that would
otherwise be taxed in your top tax bracket. Now, if you have
bonds that have declined in value as interest rates have risen,
this may be the time for a "bond swap." That’s
when you sell for a loss to lock in a tax-saving write-off
and then reinvest the proceeds in higher-yielding bonds to
maintain your income stream. You don’t even have to
worry about the dreaded "wash sale" rule as long
as the new bonds have a different yield or maturity date,
even if they come from the same issuer. I’m Kevin McCormally.
O’BRYON: Tomorrow night, Kevin on how charitable giving
can give you a helping hand on your taxes.
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.
12/06/05:
"Paul Kangas' Stocks In The News"
JEFF YASTINE: Stocks started out the day on a strong note, on
a lift from some positive economic news. The Dow soared more
than 80 points in the first half of trading, after October factory
orders and third quarter worker productivity showed better than
expected increases. The NASDAQ notched a new intra-day high
for the year and rose more than 20 points around midday. But
that was too much for sellers to resist, and profit taking sent
both indices finishing only marginally higher. The Dow Jones
industrial average rising nearly 22 points to 10,856.46. The
NASDAQ Composite rising more than three to 2260.76 and the S&P
500 picking up a little over one point to 1263 and a fraction.
And in the bond market, the 10-year note rising 23/32 to 100
4/32, the yield at 4.49 percent.
And topping our list, [on the Big Board] Pfizer (PFE) losing
$0.21.
But General Electric (GE) gaining $0.03. NBC Universal will
begin offering TV programs for download to video iPods, much
like ABC announced a few weeks ago.
Time Warner (TWX) gaining a fraction. Published reports saying
Microsoft and Google are the finalists in the bidding for
America Online and some think the deal could be announced
before Christmas.
Hewlett-Packard (HPQ) losing $0.17. Stars (ph) Entertainment
Group is using HP’s storage technology to manage its
movie library.
Wal-Mart Stores (WMT) rising $0.48. Merrill Lynch offering
a "buy" rating on that stock.
And then EMC Corp (EMC) climbing a nickel.
Boston Scientific (BSX) losing a penny. Some analysts say
the company could wind up overpaying for Guidant if that whole
situation with Guidant turned into a bidding war. But Johnson
& Johnson did not make a higher counteroffer today. Johnson
& Johnson shares losing nearly 1 percent.
Lucent Technology (LU) picking up $0.02.
AT&T (T) dropping $0.09.
Motorola (MOT) advancing $0.06.
Boeing Co (BA) rising $0.37. The aircraft maker does not
expect orders in 2006 to top this year’s rapid pace
for aircraft deliveries.
And Autozone (AZO) climbing almost $6. The auto parts retailer
seeing quarterly profits fall by more than 6 percent. But
analysts said a small rise in same store sales shows that
Autozone’s progress is coming due and making its stores
more customer friendly.
Dillard’s "A" (DDS) rising $1.76. Strong
sales for upscale merchandise and fewer mark downs. That meant
the retailer being able to cut its losses. Same store sales
rose 2 percent for Dillard’s.
Cameco Corp (CCJ) bolted nearly $3 higher. The uranium producer
selling its nearly 7 percent stake in an Australian uranium
producer. That sale with net Cameco about $90 million U.S.
dollars.
And shares in Devry (DV) falling more than 2 1/2. Enrollments
for the fall semester were disappointing. Analysts were looking
for gains of 8 1/2 percent, but Devry’s enrollments
climbed by a little over 6 percent. And that news, coupled
with some losses in Career Education on a separate
issue, which we’ll see in a minute, triggered some weakness
in the for-profit education sector today.
Over on the NASDAQ, shares in Google (GOOG) surged as high
as $416 early on, but that rally faded to a loss of a little
over $1 for the day.
Apple Computer (AAPL) gaining $2.23.
Microsoft (MSFT) slipped $0.16.
Intel (INTC) losing $0.23.
Sears Holdings (SHLD) advancing more than 6. The company’s
profits exceeded forecasts, although both Sears and K-mart
Stores posted declines in their same store sales comparisons.
Cisco Systems (CSCO) edging up a fraction.
Sandisk (SNDK) rising $0.36.
Yahoo! (YHOO) losing $0.28.
Dell (DELL) gaining $0.40.
And Adobe Systems (ADBE) advancing $1.74, its highest high
since December of 2000 for Adobe.
Altera (ALTR) rising $1.10. The company reaffirmed its revenue
guidance for the fourth quarter.
And advancing is Spherix Inc (SPEX). It soared nearly 2 1/2.
The biotech firm receiving FDA approval for conducting late
stage trials for a new drug, (INAUDIBLE) to treat diabetes.
And finally, there’s Career Education (CECO) sliding
over $4. The for profit education firm says one of its schools
was placed on probation by a major accrediting agency. No
word on the problems, but executives say they’re committed
to getting that accreditation situation fixed.
And that’s a look at our stocks in the news tonight,
Linda.
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.
12/06/05:
Market Stats
NET PERCENT
CLOSE CHANGE CHANGE
DOW CLOSE 10856.86 +21.85 + .2
HIGH 10936.20
LOW 10835.41
NASDAQ COMP. 2260.76 +3.12 +.1
HIGH 2278.16
LOW 2259.37
VOLUME 1,603.5
PREVIOUS 1,688.3
UP VOLUME 948.0
DOWN VOLUME 624.0
DOW TRANSPORTS 4128.49 +41.68 + 1.0
DOW UTILITIES 404.06 -.18 - .0
CLOSING TICK +954
S&P 500 1263.70 +1.61 + .1
S&P 100 578.65 +.11 + .0
MIDCAP 400 742.04 -.17 - .0
REUTERS/CRB 324.29 -1.30 - .4
NYSE COMPOSITE 7775.85 +16.61 + .2
VALUE LINE 416.95 +.75 + .2
RUSSELL 2000 687.58 +1.01 + .2
DJW 5000 12667.57 +15.00 + .1
U.S. TREASURIES
5-YEAR NOTE 4.50%
Nov. 15,2010 100 12/32 +12/32 4.42
10-YEAR NOTE 4.50%
Nov. 15,2015 100 4/32 +23/32 4.49
30-YEAR NOTE 5.375%
Feb. 15, 2031 110 6/32 +1 11/32 4.68
LEHMAN BROS.
LONG BOND INDEX 1747.38 +13.90
DOW CLOSE 10856.86 +21.85 + .2
ADVANCES 1871
DECLINES 1492
NEW HIGHS 258
NEW LOWS 61
NET PERCENT
NYSE MOST ACTIVES 4PM CLOSE CHANGE CHANGE
PFE Pfizer 21.14 -.21 -1.0
GE General Electric 35.80 +.03 +.1
TWX Time Warner 18.25 +.02 +.1
HPQ Hewlett-Packard 29.62 -.17 -.6
WMT Wal-Mart Stores 47.62 +.48 +1.0
EMC EMC Corp 14.28 +.05 +.4
BSX Boston Scientific 26.34 -.01 -.0
LU Lucent Tech 2.81 +.02 +.7
T AT&T 25.20 -.09 -.4
MOT Motorola 23.45 +.16 +.7
NASDAQ CLOSE 2260.76 + 3.12 + .1
VOLUME 1,839.2
PREVIOUS 1,714.1
ADVANCES 1625
DECLINES 1398
NASDAQ ACTIVES
GOOG Google 404.54 -1.31 -.3
AAPL Apple Computer 74.05 +2.23 +3.1
MSFT Microsoft 27.69 -.16 -.6
INTC Intel 26.67 -.23 -.9
SHLD Sears Holdings 122.97 +6.26 +5.4
CSCO Cisco Systems 17.56 +.06 +.3
SNDK SanDisk 48.92 +.36 +.7
YHOO Yahoo! 40.19 -.28 -.7
DELL Dell 31.66 +.40 +1.3
ADBE Adobe Systems 36.99 +1.74 +4.9
AMEX CLOSE 1747.73 + 9.39 + .5
INDEX SHARES
DIA DIAMONDS TRUST 108.69 +.30 +.3
QQQ NASDAQ 100 41.94 +.14 +.3
SPY S&P DEP.RECEIPTS 126.82 +.24 +.2
STOCKS IN THE NEWS
BA Boeing Co 69.57 +.37 +.5
AZO AutoZone 92.75 +5.80 +6.7
DDS Dillard’s “A” 22.46 +1.76 +8.5
CCJ Cameco 60.90 +2.72 +4.7
DV DeVry 21.87 -2.52 -10.3
ALTR Altera 19.40 +1.10 +6.0
SPEX Spherix 3.75 +2.48 +195.3
CECO Career Education 34.22 -4.62 -11.9
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