12/09/05: The Winter Blast Is Heating Up Oil & Energy Prices
PAUL KANGAS: winter storm that started in the Midwest
spread a blanket of snow across the northeast today, raising concerns that
energy prices could soon spike again. The U.S. Energy Department is
forecasting that Americans will see a big jump in home heating bills this
season, the highest in five years. Darren Gersh reports.
DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: A few inches of
snow is sometimes enough to shut down much of Washington, D.C. For the
D.C. energy hotline, the snow and cold weather means more business. This
is where people call who need help paying their heating bills.
ROBIN JOHNSON, HOTLINE OPERATOR: We`re getting a lot of calls. It may
slow up towards the evenings, say around 4:00. But once you turn that
phone system on, it`s call after call after call after call.
GERSH: Many of those calls for assistance are urgent and there are
more of them this year. Home heating prices are projected to rise 20 to 40
percent over last year. That`s why state energy offices expect an
additional million applications for heating assistance this year, up from
five million last year.
RAMONA BUFORD, HOTLINE COORDINATOR: In a day we will have maybe
anywhere from ten to 20 clients who will call because their heat is off.
GERSH: A blast of arctic air across much of the nation sent natural
gas prices up above $15 per million BTU yesterday, close to a record,
though the January contract closed down $0.68 today at $14.31. The good
news amid the snow, despite high prices, natural gas inventories have
recovered from the effects of hurricane Katrina, and now stand 7 percent
about a five-year average.
DAVID PARKER, PRESIDENT, AMERICAN GAS ASSN: If we have a normal
winter, home heating is safe, although it`s pricey, and that`s the big
concern. It`s pricey and clearly, the customer base in the United States
is going to be extremely concerned.
GERSH: Analysts add that projections of higher heating bills do not
mean everyone will see huge increases. Some will pay a little bit more;
others a lot more.
HOWARD GRUENSPECHT, DEPUTY ADMINISTRATOR, ENERGY INFORMATION
ADMINISTRATION: Both dollar and percentage changes in heating costs can
vary significantly depending on location, size of the house, who your fuel
supplier is, amount of insulation, the efficiency of heating equipment, and
your thermostat settings.
GERSH: Right now, the National Weather Service is calling for a cold
snap over the next two weeks with an otherwise normal winter for the east
coast and a warmer winter across the plains. And if you live somewhere
cold, I won`t even bother telling you about today`s weather in Florida.
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.
12/09/05: Japan Considers Importing Oil Workers
SUSIE GHARIB:Japan has long depended on imports, bringing in
everything from oil to iron to make up for shortages and keep its
industries humming. Now it is facing a shortage of a different kind:
people. With lots of seniors and few babies, Japan is dealing with a
shortage of workers. As Lucy Craft reports from Tokyo, while the idea of
importing them has been shunned in the past, that may be changing now.
UNIDENTIFIED MALE: If we explain exactly to them what format it`s
going to be stored in, they will be happy about that.
LUCY CRAFT, NIGHTLY BUSINESS REPORT CORRESPONDENT: Indian techies are
a hot commodity in Japan nowadays. Hailing from Bangalore and (INAUDIBLE),
IT specialists who once would have made a bee line for Silicon Valley now
are heading to Tokyo and labor-starved Japan is only too happy to pony up
visa for the software savvy migrants.
ANANDA MURALI, STRATEGIC ACCOUNTS, SATYAM COMPUTER SERVICES/JAPAN:
If you look at the potential, Japan offers a lot of potential, definitely
yes.
CRAFT: But the recent modest upswing in foreign skilled workers is
deceiving. Japan as migrant mecca, hardly? While the welcome mat is out
for Indian software engineers or Russian web designers, Japan still slams
the door on foreign home helpers, nannies and factory workers, exactly the
kind of low-skilled labor the country so desperately needs.
JEFFREY KINGSTON, DIRECTOR ASIAN STUDIES, TEMPLE UNIVERSITY/JAPAN:
Just like all other advanced specialized countries, they need a cheap labor
force to do low value-added work.
CRAFT: In fact, all foreign residents, legal or not, account for
under 2 percent of Japan`s total population. That`s a pittance compared to
the foreign migrant community of the U.S., which is over 10 percent.
Officially, Japan still resists large-scale immigration. It`s counting on
underused women, robots and senior citizens to offset its dwindling labor
pool. A domestic supply won`t be enough to cover worker short falls, say
experts, who warn that without heavily relying on imported labor, a
shortage is looming that threatens to send wage rates soaring, with
disastrous results for economic growth.
ROBERT FELDMAN, SR. ECONOMIST, MORGAN STANLEY/JAPAN: Yes, Japan does
need more immigrants. I think it`s across the board, from highly skilled,
high-tech people, to the entrepreneur, businessmen types, all the way down
to standard day workers for agriculture.
CRAFT: Still, Japan`s coveted low crime rate and checkered history of
assimilating other cultures have made it reluctant to dramatically open up
immigration.
KINGSTON: The Japanese look at what`s happening in France and Germany
and the Netherlands, the United States, and say, well, we don`t really want
that.
CRAFT: Homogeneity has long been a source of Japanese pride, but with
its (INAUDIBLE) population set to plunge by 10 million over the next few
decades, observers say an anti-immigration policy is one luxury Japan can
no longer afford. Lucy Craft, NIGHTLY BUSINESS REPORT, Tokyo.
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.
12/09/05: Market Monitor-Jeff Everett of Templeton Global Advisors
PAUL KANGAS: My guest market monitor this week is Jeffrey Everett, chief
investment officer for Templeton Global Advisors. And Jeff, welcome back
to NIGHTLY BUSINESS REPORT.
JEFFREY EVERETT, CHIEF INVESTMENT OFFICER, TEMPLETON GLOBAL ADVISORS:
Thank you Paul. Nice to be here.
KANGAS: Over the last month or so, the U.S. stock market has had a
nice run-up which many are calling the traditional year end or Santa Claus
rally. Drawing on your extensive knowledge of markets around the world,
how is the U.S. market doing in comparison with the others?
EVERETT: The U.S. market has done fine, but I would tell you the place to be has
been outside the U.S. You see a tremendous degree of change. You`ve seen
companies in Korea increasing earnings by five-fold, the market up 80
percent. You have seen Russian companies reporting a U.S. gap.
KANGAS: Well, that`s what you said to us last time when you were here
in March, foreign markets look better.
EVERETT: Foreign markets, yes, they were cheaper and they had better
growth. But that has left, but that has left the U.S. market as a laggard
and Templeton always likes laggard markets. We`re seeing a lot of
interesting opportunities there right now.
KANGAS: So you think the Santa Claus rally has staying power then?
EVERETT: I do. We see some great valuations. We`ve seen dramatic
earnings growth in a lot of companies and yet the market really hasn`t
reflected any of that positive news.
KANGAS: But you`re taking some profits in some of these foreign
markets that have had big run-ups, taking the proceeds and buying U.S.
stocks.
EVERETT: Well we don`t do that en masse. We`re doing it on a bottom
up basis, but where the valuations are too expensive overseas because of
these strong performing markets. Mexico up 100 percent, Brazil up 80
percent. Many of the European markets are up 20 to 40 percent and yet the
U.S. is virtually unchanged.
KANGAS: And the economy here is stronger than most others.
EVERETT: People don`t seem to be paying attention to the facts. The
facts and the fundamentals for the U.S. economy are very, very strong. The
fundamentals of many U.S. companies are very strong. But, yet, people get
confused. They`re letting emotion play too big of a role.
KANGAS: Gold has had a huge run run-up, but we can`t get out of here
without your thoughts on gold.
EVERETT: We`re not gold bugs necessarily, but I will tell you that one
thing that gold does reflect is this emotional uncertainty and fear that
investors have. Gold is the perfect hedge when you`re not sure what you`re
hedging, and I think that`s what investors are doing right now.
KANGAS: When you were last with us in early March, you gave our
viewers three buy recommendations. Let`s see how they`ve performed since
then. Sanofi, the big drug company, down just a mere percent. I believe it
got to 46 at its best level and then Pearson PLC, that`s the British media
company, down 2.4 percent. But a ha, there was a third recommendation that
you gave us and that was Kookmin Bank of South Korea, look at that gain,
that made up for everything.
EVERETT: Well as I said, Korea was a very cheap market, Kookmin Bank,
despite a 40-50 percent gain, is still selling for a P/E of less than
eight.
KANGAS: So you still like?
EVERETT: We still own all three.
KANGAS: All three.
EVERETT: Yes, very good valuations at all three companies.
KANGAS: How about some new recommendations Jeff?
EVERETT: Well, as I mentioned, the laggard markets are always markets
that interest us at Templeton, and right now the U.S. is among the biggest
laggards in the world. Financials, specifically, are among some of the
biggest laggards and not surprisingly, two recommendations tonight would be
two financials.
KANGAS: The first one, what do you like?
EVERETT: The first would be JPMorgan. There`s no question that this
is a company that is under earning.
KANGAS: Looking at that chart, it`s had a big move recently.
EVERETT: It`s had a big move, but if you go back over the past year,
it really hasn`t done very much at all. It`s under earning its
competition. Most importantly, I think, the catalyst is going to be Jamie
Diamond coming in as CEO. Everything from real estate ownership to
sponsorships, he`s under the gun with him, he should deliver a much better
results.
KANGAS: Let`s get on with our second choice in the financial area,
right.
EVERETT: Merrill Lynch.
KANGAS: OK. Another strong chart there.
EVERETT: Another strong chart, but I would tell you that Merrill Lynch
still has an awful lot of work it can do relative to its group. It`s under
earning relative to its capital base. Essentially, there`s a great
financial athlete wrapped in Merrill Lynch, that we can`t see, because they
have a flabby capital structure.
KANGAS: We have time for one more recommendation.
EVERETT: I would talk about News Corps. News Corp to most people may
surprise them, is now a U.S. stock.
KANGAS: Now there is a laggard right there.
EVERETT: It`s a tremendous undervalued asset play, six times cash
flow. Rupert Murdoch re-domiciled the company from Australia to the United
States. It`s a great plan, the global world, the emerging world, 42 percent
of its revenues outside the U.S.
KANGAS: OK, we`re going to have to leave it there, Jeff.
Incidentally, you own all these stocks personally or through the fund?
EVERETT: We own all of them significantly in the Templeton Funds.
KANGAS: OK, Jeff, it`s always a pleasure to have you with us, thank
you.
EVERETT: Thank you.
KANGAS: My guest Jeff Everett of Templeton Global 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.
12/09/05: The Week Ahead
SUSIE GHARIB: Here`s a look at what`s happening next week. Our Friday
market monitor guest is James Stack, president of Investech Research. On
the economic calendar: Tuesday, it`s November retail sales and October
business inventories; Wednesday, October`s trade deficit and November
import prices; and Thursday, November`s consumer price index and the
November reports on industrial production and capacity utilization.
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.
12/09/05:
"Paul Kangas' Stocks In The News"
PAUL KANGAS: Stocks did not rise on the opening today, as higher oil prices
and analyst downgrades on IBM and National Semiconductor stocks undermined
the market. At mid-morning, the Dow was off 21 points, while the NASDAQ was
down five. That December sentiment number and an easing in oil prices
helped stocks rebound with the Dow posting as much as a 50-point gain this
afternoon but that was trimmed by pre-weekend selling.
So the Dow came in with a gain of 23 1/2 points at 10,778.58. This
week, the Dow rose twice, fell three times, had a overall loss of 98.93
points. The NASDAQ Composite was up 10 1/4 points ending at 2256.73 today.
That index fell in three of this week`s five sessions for an overall drop
of 16.64 points. The Standard & Poor`s 500 Index gained 3 1/2 points today
to 1259.37. Over in the bond market, the 10-year note fell 16/32 to 99
25/32, lifting the yield to 4.53 percent.
Most active New York exchange issue on 24.3 million shares, Pfizer
(PFE) down $0.36.
Chesapeake Energy (CHK) down $0.31. The company is in the process of
offering 20 million of its common shares at a price of $31.46.
Time Warner (TWX) down a dime.
Qwest Communications (Q) moved up $0.14.
Exxon Mobil (XOM), fifth in big board volume, down $0.92.
Then we see Merck & Co (MRK) down $0.55. You heard the story just a
few moments ago.
General Electric (GE) an $0.18 gainer.
Texas Instrument (TXN) rose $0.74.
Lucent Technology (LU) a $0.03 rise.
And then tenth in volume was General Motors (GM) up $0.92. GM and Kirk
Kerkorian`s Tracinda Corporation failed to agree on terms under which a
Kerkorian representative would be made available on the General Motors
board. But discussions may well continue according to both companies.
IBM (IBM) down $0.53. As a touched on earlier, UBS financial
downgraded it from "buy" to just a "neutral" rating for big blue.
Advanced Micro Devices (AMD) however up $1.25. Several analysts
believe the company is taking market share from Intel in the chip business.
Viacom (VIA) a $0.06 loss. The company`s Paramount unit is in talks to
buy DreamWorks. DreamWorks stock moved up $0.08 to close at $25.14 and in
after hours trading, it was up nearly $1 from that price.
Eli Lilly (LLY) up $1.20 today, a 2.3 percent rise. The company sees
fourth quarter earnings at the top end of the Wall Street estimate range of
$0.73 to $0.79 per share.
And then Barr Pharmaceuticals (BRL) rose $2.20. Bank of America
upgraded it from "neutral" to a "buy."
Arvinmeritor (ARM) up $1.98. Goldman Sachs upgraded it from "under
perform" to "in line" in reaction to the company`s rather upbeat forecast.
Then another automotive stock doing well, up $1.93, Goldman Sachs
upgraded this one from "in line" to "out perform" Lithia Motors (LAD).
Dave & Busters (DAB) up $2.24. Wellspring Capital Management is going
to acquire this company for $18.05 a share in cash.
Cascade Corp. (CAE) up $4.24. This company makes materials handling
equipment and its third quarter earnings were very nicely higher, $0.84 up
from $0.68 last year. Sales up a very respectable 17 percent.
Alpha Natural Resources (ANR) didn`t do too well, down $3.39. The
company cut its 2005 outlook saying fourth quarter revenues will be cut by
$10 to $15 million due to delayed coal shipments.
But then we had a new issue, Basic Energy Services (BAS), an oil field
services firm, 12.5 million shares offered to the public at $20 a share.
The stock opened at $21.75, the high of the day $22 and it backed off a
half dollar from there, but a good debut.
Google (GOOG) topped the active list. Google rising $1 or falling
$1.45.
Then Intel (INTC) up $0.38.
Apple Computer (AAPL) a $0.25 rise.
Research in Motion (RIMM) you just heard the story, up $3.38. It was
down a few cents in after hours trading.
Microsoft (MSFT) gained $0.02. That was fifth in dollar volume on
NASDAQ.
Cisco Systems (CSCO) a $0.09 loss.
Sirius Satellite Radio (SIRI) pretty decent gain of $0.45.
Dell (DELL) $0.52 rise.
And Oracle (ORCL) up $0.06.
Tenth in volume was Sun Micro Devices (SUNW) up $0.15.
Here`s a new issue, Cynosure (CYNO). This company makes cosmetic
surgery laser. Five million shares offered at $15, opened at $16.99, the
high of the day $21.15, back off a bit from there, but still a good first
day of trading.
And Neomagic (NMGC), look at that gain, up $4.88 or 128 percent. The
company`s in the semiconductor solutions business and it had third quarter
earnings of $0.11 versus a loss of $0.91 a share last year. Revenues jumped
to $8.6 million in the period, versus last year`s $301,000
Those are the stocks 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.
12/09/05:
Market Stats
NET PERCENT
CLOSE CHANGE CHANGE
DOW CLOSE 10778.58 +23.46 + .2
HIGH 10805.95
LOW 10729.91
NASDAQ COMP. 2256.73 +10.27 +.5
HIGH 2258.67
LOW 2241.03
VOLUME 1,404.2
PREVIOUS 1,664.1
UP VOLUME 841.7
DOWN VOLUME 547.3
DOW TRANSPORTS 4102.34 +20.25 + .5
DOW UTILITIES 409.82 +3.24 + .8
CLOSING TICK +769
S&P 500 1259.37 +3.53 + .3
S&P 100 574.63 +.76 + .1
MIDCAP 400 744.54 +3.48 + .5
REUTERS/CRB 327.81 -2.63 - .8
NYSE COMPOSITE 7762.60 +19.17 + .3
VALUE LINE 417.51 +2.09 + .5
RUSSELL 2000 688.77 +3.55 + .5
DJW 5000 12640.82 +35.10 + .3
U.S. TREASURIES
5-YEAR NOTE 4.50%
Nov. 15,2010 99 24/32 -9/32 4.43
10-YEAR NOTE 4.50%
Nov. 15,2015 99 25/32 -16/32 4.53
30-YEAR NOTE 5.375%
Feb. 15, 2031 109 14/32 -28/32 4.73
LEHMAN BROS.
LONG BOND INDEX 1745.51 -6.56
DOW CLOSE 10778.58 +23.46 + .2
ADVANCES 2046
DECLINES 1297
NEW HIGHS 104
NEW LOWS 62
NET PERCENT
NYSE MOST ACTIVES 4PM CLOSE CHANGE CHANGE
PFE Pfizer 20.62 -.36 -1.7
CHK Chesapeake Energy 31.15 -.31 -1.0
TWX Time Warner 17.66 -.10 -.6
Q Qwest Comms Intl 5.73 +.14 +2.5
XOM Exxon Mobil 58.50 -.92 -1.6
MRK Merck & Co 29.13 -.55 -1.9
GE General Electric 35.53 +.18 +.5
TXN Texas Instrument 33.37 +.74 +2.3
LU Lucent Tech 2.80 +.03 +1.1
GM General Motors 22.92 +.92 +4.2
NASDAQ CLOSE 2256.73 + 10.27 + .5
VOLUME 1,713.1
PREVIOUS 1,969.9
ADVANCES 1819
DECLINES 1201
NASDAQ ACTIVES
GOOG Google 409.20 -1.45 -.4
INTC Intel 26.08 +.38 +1.5
AAPL Apple Computer 74.33 +.25 +.3
RIMM Rsch In Motion 64.13 +3.38 +5.6
MSFT Microsoft 27.71 +.02 +.1
CSCO Cisco Systems 17.55 -.09 -.5
SIRI Sirius Satellite 7.87 +.45 +6.1
DELL Dell 32.17 +.52 +1.6
ORCL Oracle 12.50 +.06 +.5
SUNW Sun Micro 4.33 +.15 +3.6
AMEX CLOSE 1756.32 - 1.23 - .1
INDEX SHARES
DIA DIAMONDS TRUST 107.74 +.12 +.1
QQQ NASDAQ 100 41.72 +.15 +.4
SPY S&P DEP.RECEIPTS 126.31 +.31 +.3
STOCKS IN THE NEWS
IBM IBM 86.97 -.53 -.6
AMD Advanced Micro 26.90 +1.25 +4.9
LLY Eli Lilly 53.41 +1.20 +2.3
BRL Barr Pharma 62.76 +2.20 +3.6
ARM Arvinmeritor 15.40 +1.98 +14.8
LAD Lithia Motors 30.71 +1.93 +6.7
DAB Dave & Busters 17.45 +2.24 +14.7
CAE Cascade 52.90 +4.24 +8.7
ANR Alpha Natural Res 20.76 -3.39 -14.0
BAS Basic Energy Svs 21.50 +1.50 +7.5
CYNO Cynosure 18.93 +3.93 +26.2
NMGC Neomagic 8.68 +4.88 +128.4
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