12/08/05: Merck Is Feeling Even More Vioxx Heat
PAUL KANGAS: Controversy is swirling tonight
around drug maker Merck and its anti-arthritis drug Vioxx. Late today the
"New England Journal of Medicine" issued what`s called an "expression of
concern," after learning information about heart attacks had been omitted
from a research study Merck did five years ago. The journal also alleges
other information was deleted from the research before publication. Vioxx
was withdrawn from the market last year on concerns about heart risks. Two
product liability lawsuits have already been tried over the drug and a
third went to the jury today in Texas. The findings of that study five
years ago have played a key role in the testimony. Merck said it
appropriately disclosed the facts in that study, is confident in its
research and only recently learned of the journal`s concerns. The journal
has called on the authors of that disputed report to submit a correction.
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.
12/08/05: Time Is Running Out For Dow 11,000
PAUL KANGAS: On Wall Street these days, it looks like a Santa Claus rally
isn`t coming to town. Just days ago, the Dow seemed poised to hit the
11,000 mark. That`s not the case tonight, as Scott Gurvey reports.
SCOTT GURVEY, NIGHTLY BUSINESS REPORT CORRESPONDENT: Today`s decline
makes it three losing days in a row for the Dow Jones Industrial Average.
It was less than a month ago that Dow 11,000 seemed an easy reach as a
rally that started in October gathered steam. But since Thanksgiving, the
blue chips have stalled. Market watchers list several reasons for the loss
of momentum, including rising energy prices with the arrival of cold
weather in the north east, softness in the housing market and concerns
about slower earnings growth next year. Experts say the 11,000 mark on the
blue chip average is mostly a matter of psychology, but it is important
none the less.
ERNEST ANKRIM, CHIEF INVESTMENT STRATEGIST, RUSSELL INVESTMENT GROUP:
It`s important to get there. It means that we`ve paid off. I think what`s
really happening the last couple years is distinctive in that the markets
went almost nowhere for the first 10 1/2 months and then everything that
happened was in the last nine or 10 weeks. We`re seeing the same sort of
pattern this year, and I think we still have some good room to go before
the year is out.
GURVEY: While that view is shared by many, there is also a growing
consensus that the rally will pause, if not peak in the first half of next
year. For now, though, most say the market indicators are still pointing
up.
WILLIAM WILBY, DIRECTOR OF EQUITIES, OPPENHEIMERFUNDS: If you look at
the supply and demand for stock in circulation, corporations are retiring a
lot of equities. The short interest ratio on the NASDAQ is close to all-
time highs, which means the sentiment is very bearish, which is exactly
what you want for a healthy market environment. The market always climbs a
wall of worry and that kind of negative psychology is one of the things you
need for a good bull market.
GURVEY: The biggest market uncertainly the experts say, remains the
Federal Reserve. The Fed is widely expected to raise interest rates when
it meets next week. But its statement will be critically examined in the
hopes it will indicate an end is near to the current round of rate hikes.
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.
12/08/05: Tax Cuts May Have To Wait Until The New Year
PAUL KANGAS: This afternoon, the House of Representatives passed a $56
billion bill to extend tax breaks on dividends and capital gains. But
investors should not consider the matter a done deal. The Senate has very
different priorities for tax cuts this year and as Darren Gersh reports,
the clock is ticking down.
DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: Republicans call
the dividend and capital gains tax cuts job creators. Those tax cuts don`t
expire until 2009, but supporters say it will roil markets and upset
business planning if the extension is put off until the last minute.
REP. J.D. HAYWORTH (R) ARIZONA: Economic opportunity is important not
only for Wall Street, not only for Main Street, but for your street.
GERSH: It was a sometimes raucous and bitter debate with House
Republicans charging Democrats with class warfare and Democrats countering
the Republican tax cuts are paid for with budget cuts in child nutrition,
student loans and health care for the poor.
REP. EDWARD MARKEY (D) MASSACHUSETTS: Something`s going to have to
be cut. They cut the poorest, they cut the most vulnerable, they cut the
youngest. And where does the money go? The money goes to millionaires.
GERSH: Congressional Republicans still face difficult choices on
which tax cuts to fit into a budget that is stretched thin by a $300
billion plus deficit. Senators from the Gulf coast are insisting on tax
relief for casinos hit by hurricane Katrina. The House voted to deal those
out. Analysts say House Republicans also want to use $20 billion to extend
the capital gains and dividend tax cuts first, and then get to alternative
minimum tax relief. Analysts say moderate Republicans in the Senate want
to put AMT relief first and leave investment tax cuts for later.
MARK GARAY, DIRECTOR, DELOITTE TAX: There`s a real debate going on
between how soon can you do capital gains and dividend relief, given that
it doesn`t expire until the end of 2008, and to the extent it is important,
how far can you extend it.
GERSH: Analysts agree time has probably run out for a big tax deal
this year. It`s likely negotiators will now focus their efforts on cutting
spending before the holidays and return early next year to work on an even
larger, election year tax cut. Darren Gersh, NIGHTLY BUSINESS REPORT,
Washington.
Nightly
Business Report transcripts are available on-line post broadcast.
The program is transcribed by eMediaMillWorks. Updates may
be posted at a later date. The views of our guests and commentators
are their own and do not necessarily represent the views of
Community Television Foundation of South Florida, Inc. Nightly
Business Report, or WPBT. Information presented on Nightly
Business Report is not and should not be considered as investment
advice. Copyright (c) 2005 Community Television Foundation
of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.
12/08/05: Paving The Road For Women To Return To Work
SUSIE GHARIB: A recent study by the Center for Work Life Policy shows
that more than half of the women in the United States will take time out of
their careers. Most often, they`ll drop out at the height of those careers
and usually for 18 months to two years. The reason: to take care of
children or to handle a health crisis with an elderly parent. Most of
those women plan to return, but in the past many have found it a tough road
back. Tonight, our home economist, Brett Graff, looks at how that trend
may be changing.
BRETT GRAFF, NIGHTLY BUSINESS REPORT CORRESPONDENT: Lawyer Lisa Kay
Bennett is looking for a job. She has 14 years of litigation experience
and has clerked for a Federal judge. But after sending out 50 resumes, she
got just two responses for positions paying a fraction the going rate. The
problem, headhunters say, is her most recent work experience: a full-time
mother for the past seven years.
LISA BENNETT, LAWYER: People say there`s a learning curve. You`ve
got to get back into the marketplace. I think there`s a concern about what
kind of contacts I have. Obviously when I left I had many clients, I had a
following.
GRAFF: If you thought choosing a baby name was hard, you
have yet to wrestle with the idea of leaving your career to
be a full-time mom or take care of an older parent. The Center
for Work Life Policy says 60 percent of working women will
at some point step back or completely leave the workforce.
Most will want to reenter, but will do so accepting lesser
positions or lower wages.
SYLVIA HEWLETT, PRESIDENT, CENTER FOR WORK-LIFE POLICY: If you`ve
taken 18 months out or two years, you`re not de-skilled when you come back.
It`s just that I think employers tend to see these people as less than
fully committed. It`s as though their identity is transformed.
GRAFF: The Center for Work Life Policy is helping women who have left
to reenter the labor market. Its task force of 25 companies, including
multinationals like General Electric, Time Warner, Johnson & Johnson, Cisco
Systems and Lehman Brothers, is looking to actively recruit women who have
left the workforce.
ANNE ERNI, CHIEF DIVERSITY OFFICER, LEHMAN BROTHERS: These are
highly educated, experienced women, and we see them as an untapped talent
pool. And I think the time has come to start really thinking about how can
we reengage a talent pool when really talent is becoming very, very scarce.
GRAFF: Aisha Haque is part of that pool. She left her previous job
at an investment bank two years ago to raise her small children. She`s now
back in the banking community as a senior vice president at Lehman
Brothers.
AISHA HAQUE, SENIOR V. P., LEHMAN BROTHERS: I think that`s the
toughest thing for women that go back, is to feel that you`re leaving your
family every morning, but to do something meaningful and to do something
where you do have responsibility and you`re using skills and you have
somewhat of a status that you`d worked so hard to achieve previously.
GRAFF: Researchers say that 70 percent of the women who off-ramp are
confident about their decision. Perhaps in time, they won`t later wonder
whether they made the right decision when trying to on-ramp, because even a
stay-at-home economist like myself, would argue that overlooking skilled
professionals does not indulge people or profits. Brett Graff, NIGHTLY
BUSINESS REPORT, home economist.
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.
12/08/05: Kevin
McCormally's "Year-End Tax Tips" - Flexible Tax Choices
SUSIE GHARIB: Well, it`s good to be flexible when planning your taxes. It`s better
to take advantage of your company`s flexible spending plan when doing your
taxes. As we wrap up our series of "year-end tax tips," here`s Kevin
McCormally, editorial director of "Kiplinger`s."
KEVIN MCCORMALLY, EDITORIAL DIR., "KIPLINGER`S PERSONAL: FINANCE" The
media is filled this time of year with stories encouraging employees to buy
new eyeglasses or contact lenses or hearing aids or to fill prescriptions
or get their teeth cleaned and it has nothing to do with good health or
hygiene. Rather, the idea is to avoid the pain of forfeiting cash in a
flexible spending plan to the dreaded "use it or lose it" rule.
But you may be relieved of that rush this December, even if you have
a fat balance in a medical or child care reimbursement account. You see,
the IRS has given firms the opportunity to build a 2 1/2 month grace period
into their plans. If your company has done so, it means you can spend 2005
"set aside" money on expenses incurred as late as March 15 of next year.
Unfortunately, a lot of firms haven`t taken advantage of this break.
So check tomorrow to see if your company has bought more time. If not,
pinpoint your balance and figure out how to spend the money before it goes
"poof" on New Year`s Eve. Speaking of flex plans, if this is open season
for you to decide how much to set aside for 2006, be aggressive. Money
that goes into these plans avoids both income and Social Security taxes,
making this break so powerful that you can come out ahead even if you do
wind up losing money to the "use it or lose it" rule next year.
This is one area where it really is better to over, rather than
under-indulge. And one final point, if you use a reimbursement account to
cover child care costs, check the balance. If your boss has not added the
2.5 month grace period and you`re in jeopardy of forfeiting some money, use
it to give your care provider a year-end bonus. It really costs you
nothing, and it can buy you an awful lot of good will. I`m Kevin
McCormally.
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.
12/07/05:
"Paul Kangas' Stocks In The News"
PAUL KANGAS: A Dow move above 11,000 seemed even more elusive this morning
as stocks opened lower. That came on a cautious 2006 forecast from home
builder Toll Brothers, along with higher oil prices and a growing belief
the market has advanced too far too fast. The Dow fell 33 points early on
and the NASDAQ lost three points. A midday rally was derailed by a sell-
off in steel and semiconductor stocks on analyst downgrades. So the Dow
industrial average closed down 55 3/4 points at 10.755.12. The NASDAQ
Composite was off about 5 1/2 points at 2246.46, while the Standard &
Poor`s 500 down 1 1/2 at 1255.84. In the bond market, the 10-year note
rose 14/32 to par and 9/32, putting the yield at 4.47 percent.
Big board volume leader on 24.6 million shares, Time Warner (TWX) down
$0.36.
Then Qwest Communications (Q) moving up $0.32, good percentage move
there.
Pfizer (PFE) down $0.12.
General Electric (GE) fell $0.22.
Fifth in volume was Texas Instruments (TXN) down $0.93. After the
close yesterday as we reported, the company boosted its fourth quarter
estimate by $0.02 a share for earnings and the stock jumped about 1 1/2
percent then. But today it gave it all back and then some. The
semiconductor group was weak incidentally.
Tyco International (TYC) down $0.68.
Followed by Chesapeake Energy (CHK) up $0.61. After the close,
Chesapeake priced a public offering of 20 million of its common shares at
$31.46, just where it closed today.
Sprint Nextel (S) up $0.04.
Micron Technology (MU) $0.53 loss.
And News Corp "A" (NWSa), tenth in volume was up $0.26 a share.
Advanced Micro Devices (AMD) down $1.02 and that`s despite the company
giving an upbeat 2006 forecast, but as I mentioned, the chip group was
generally weak today.
American Greetings (AM) down $2.85. The company cut its third quarter
earnings estimate from its previous level of $0.70 to $0.75, all the way
down to $0.15 to $0.18. The company citing weaker operations in the United
Kingdom and disappointing sales of promotional Christmas gift wrapping. The
stock down rather significantly.
United States Steel (X) fell $1.57 after Deutsche Securities
downgraded it from "hold" to "sell."
Another weak steel, Nucor Corp (NUE) off $1.06. Merrill Lynch
downgraded this one from "buy" to "neutral" because of its rather lofty
valuation according to Merrill Lynch.
Then Toll Brothers (TOL), the home builder, up $1.25. Fourth quarter
earnings $1.84 up from $1.11 last year, $0.19 above the Street estimate.
The company during the day did give a cautious 2006 outlook on the stock
dropped as low as $33.75 but then recovered by the closing bell.
Veritas DGC (VTS) a $3 gainer. The company provides geophysical
information to the petroleum industry and first quarter earnings tenfold
above last year, $0.32 versus only $0.03 then, revenues up 30 percent.
Those earnings were $0.14 better than the Street expected and the backlog
is up 52 percent over last year.
Centerpoint Properties (CNT) up $3.72 on news that CalEast industrial
investors will acquire it for $50 a share in cash.
Then the big restaurant chain Brinker International (EAT) up $3.95. A
3 percent rise in November same store sales was lower than expected and on
top of that, the company cut its second quarter earnings estimate by about
$0.02 down to $0.55 per share.
Polaris Industries (PII), the manufacturer of snowmobiles and all
terrain vehicles was downgraded by Banc of America from "neutral" to "sell"
and Banc America also cut its $45 a share target down to $38 on slowing
sales growth and rising inventories.
UST Inc (UST), the smokeless tobacco company, up $1.37. It`s boosting
its dividend by 3.6 percent to $0.57 a share. It`s also going to buy back
up to $200 million in stock.
Google (GOOG) topped the active list with a nice gain of $6.43.
Intel (INTC) $0.45 drop. You heard the revenue cutbacks by the firm.
Apple Computer (AAPL) up $0.13.
And then Microsoft (MSFT) a $0.06 loss.
Cisco Systems (CSCO) down $0.14. That was fifth in dollar volume.
Qualcomm (QCOM) fell $0.79, even though the company boosted first
quarter earnings guidance by about $0.02 to as much as $0.39 a share.
Dell (DELL) down $0.13.
$0.07 drop in Oracle (ORCL)
Ebay (EBAY) down $0.86.
Sears Holdings (SHLD), tenth in volume, was up $0.29.
Analytical Surveys (ANLT), look at that percentage move. The company
plans to expand into the energy sector to provide geophysical information.
And finally on the American exchange, Infosonics (IFO) a nice gain, up
on news that it`s going to begin offering Samsung mobile phones on the
Internet.
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.
12/08/05:
Market Stats
NET PERCENT
CLOSE CHANGE CHANGE
DOW CLOSE 10755.12 -55.79 - .5
HIGH 10847.25
LOW 10729.67
NASDAQ COMP. 2246.46 -5.55 -.3
HIGH 2261.61
LOW 2233.74
VOLUME 1,664.1
PREVIOUS 1,584.3
UP VOLUME 841.8
DOWN VOLUME 788.1
DOW TRANSPORTS 4082.09 -28.16 - .7
DOW UTILITIES 406.58 +5.49 + 1.4
CLOSING TICK +988
S&P 500 1255.84 -1.53 - .1
S&P 100 573.87 -1.98 - .3
MIDCAP 400 741.06 +2.16 + .3
REUTERS/CRB 330.44 +5.78 + 1.8
NYSE COMPOSITE 7743.43 +12.15 + .2
VALUE LINE 415.42 +.44 + .1
RUSSELL 2000 685.22 +2.21 + .3
DJW 5000 12605.72 -.46 unch.
U.S. TREASURIES
5-YEAR NOTE 4.50%
Nov. 15,2010 100 1/32 +12/32 4.37
10-YEAR NOTE 4.50%
Nov. 15,2015 100 9/32 +14/32 4.47
30-YEAR NOTE 5.375%
Feb. 15, 2031 110 11/32 +23/32 4.67
LEHMAN BROS.
LONG BOND INDEX 1752.08 +8.73
DOW CLOSE 10755.12 -55.79 - .5
ADVANCES 1854
DECLINES 1483
NEW HIGHS 139
NEW LOWS 76
NET PERCENT
NYSE MOST ACTIVES 4PM CLOSE CHANGE CHANGE
TWX Time Warner 17.76 -.36 -2.0
Q Qwest Comms Intl 5.59 +.32 +6.1
PFE Pfizer 20.98 -.12 -.6
GE General Electric 35.35 -.22 -.6
TXN Texas Instrument 32.63 -.93 -2.8
TYC Tyco Intl 27.99 -.68 -2.4
CHK Chesapeake Energy 31.46 +.61 +2.0
S Sprint Nextel 24.65 +.04 +.2
MU Micron Tech 13.13 -.53 -3.9
NWSa News Corp “A” 15.59 +.26 +1.7
NASDAQ CLOSE 2246.46 - 5.55 - .3
VOLUME 1,969.9
PREVIOUS 1,787.9
ADVANCES 1559
DECLINES 1481
NASDAQ ACTIVES
GOOG Google 410.65 +6.43 +1.6
INTC Intel 25.70 -.45 -1.7
AAPL Apple Computer 74.08 +.13 +.2
MSFT Microsoft 27.69 -.06 -.2
CSCO Cisco Systems 17.64 -.14 -.8
QCOM Qualcomm 44.21 -.79 -1.8
DELL Dell 31.65 -.13 -.4
ORCL Oracle 12.44 -.07 -.6
EBAY eBay 43.47 -.86 -1.9
SHLD Sears Holdings 121.79 +.29 +.2
AMEX CLOSE 1757.55 + 7.63 + .4
INDEX SHARES
DIA DIAMONDS TRUST 107.62 -.48 -.4
QQQ NASDAQ 100 41.56 -.30 -.7
SPY S&P DEP.RECEIPTS 126.00 -.08 -.1
STOCKS IN THE NEWS
AMD Advanced Micro 25.65 -1.02 -3.8
AM American Greeting 23.33 -2.85 -10.9
X US Steel Corp 48.32 -1.57 -3.2
NUE Nucor 67.69 -1.06 -1.5
TOL Toll Brothers 35.55 +1.25 +3.6
VTS Veritas DGC 37.28 +3.00 +8.8
CNT Centerpoint Prop 49.55 +3.72 +8.1
EAT Brinker Intl 36.71 -3.95 -9.7
PII Polaris Inds 49.91 -3.46 -6.5
UST UST Inc 39.66 +1.37 +3.6
ANLT Analytical Survey 2.75 +1.58 +135.0
IFO Infosonics 15.30 +1.80 +13.3
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