xfdce NIGHTLY-BUSINESS-REPO-00

Show: NIGHTLY BUSINESS REPORT>

Date: December 16, 2003>

Time: 18:30:00>

Tran: 121600cb.118>

Type: SHOW>

Head: Nightly Business Report>

Sect: Business>

Byline: Paul Kangas, Jeff Yastine>

Guest: Phil Angelides, Edward Zander>

Spec: Business; Economy>

Time: 00:00:00>

PAUL KANGAS, NIGHTLY BUSINESS REPORT ANCHOR: The nation`s largest public pension fund, CalPERS, sues the New York Stock Exchange, charging the big board and its specialist firms allowed, and made money from, improper stock trading. It`s a first of its kind action, and California`s treasurer will tell you why the fund is taking this landmark step.JEFF YASTINE, NIGHTLY BUSINESS REPORT ANCHOR: And the housing industry continues to see stellar growth. Single-family housing starts reach record levels in November, but experts question whether the industry can keep up the torrid pace.

KANGAS: Also tonight, Motorola (MOT) hopes this man will make the right call. He`s Edward Zander, named today as the cell phone maker`s new chairman and CEO. We ask him about his plans to turn around the troubled company.

YASTINE: And it`s up, up and away for Boeing`s (BA) newest jetliner, the 7E7. The aerospace giant gives the green light to the model, its first in over a decade.

KANGAS: I`m Paul Kangas.

YASTINE: And I`m Jeff Yastine. Susie Gharib is off tonight. This is NIGHTLY BUSINESS REPORT for Tuesday, December 16.

Good evening, everyone.

A stunning move today by the nation`s largest public pension fund. The California Public Employees Retirement System, or CalPERS, is suing the New York Stock Exchange and seven of its specialist trading firms, accusing them of “front running” stock trades. At a news conference in Sacramento, CalPERS` President Sean Harrigan accused the big board of knowing there were rampant problems with specialist trading. But Harrigan said the exchange looked the other way because it allegedly profited from the abuse. CalPERS says the specialist firms took advantage of confidential knowledge of public investors orders, by buying stocks for their own accounts before completing those of investors. The pension fund also alleges that orders weren`t filled at the best available prices and that the big board deliberately failed to oversee, regulate, supervise or discipline its members for not following the rules. The New York Stock Exchange refused comment on CalPERS` charges, saying, as a matter of policy, it does not comment on pending litigation.

Now joining us to talk more about lawsuit is Phil Angelides, California state treasurer and a member of CalPERS board of administration.

So you`re saying the specialists are front running, the exchange management is looking to other way, that`s quite a set of allegations. Where is the proof that you`re basing the lawsuit on?

PHIL ANGELIDES, CALIFORNIA STATE TREASURER: Well, our legal office and based on what we know from the work of the Securities and Exchange Commission indicates to us that there has been substantial abuses and fraud committed here by the specialists. And I will say that we also believe the New York Stock Exchange knew these practices were going on and did nothing to stop them. You know, it was three months ago to the day that I joined with my colleagues, the head of CalPERS and CalSTERS to call for the resignation of Richard Grasso, and at that time we weren`t seeking the resignation of just one man but rather reform of the exchange because it needs to be viewed and be in reality an open, honest and fair forum for American investors. And what we have seen both in the Grasso compensation saga and in the work of the SEC and the belief and the facts that our legal office has come to see is that this exchange has not operated with the kind of openness and fairness that is required of it to function well in the American economy. So we`re serious about reform. We`ve called for separation of business and regulatory functions. It`s very clear the exchange failed to police its business practices.

YASTINE: Right, Mr. Angelides, let me ask you a question though. What would you say to some who think this might be a publicity stunt or perhaps payback to the New York Stock Exchange because you have a difference with interim chairman or interim chief John Reed regarding the reform plan that he`s proposing to the SEC?

ANGELIDES: We would never do that. We have a fiduciary obligation to defend the assets of our members, the 1.4 members of CalPERS firefighters, police officers, school employees. We have a fiduciary obligation and it is our firm belief, and we believe that it will come out during the litigation, that in fact it was built out of substantial sums of money, as you know, the SEC itself has said they believe the front running practices have cost at least $155 million to investors. So this is about our fiduciary obligation. We sue infrequently, only when we believe we have an obligation to seek restitution, and in this case also reforms.

YASTINE: Well, this is a quote from today`s press conference, the CalPERS press conference, you said “the last few years the SEC has been a day late and a dollar short every step of the way, there has been no instance where the SEC has driven to conclusion fundamental reforms that are needed in the marketplace.” How much of this is an attempt to out-pressure the SEC to reject the plan that`s currently in front of them from John Reed?

ANGELIDES: Well, the plain truth is that the SEC has been slow on the mark, whether it was on investment banking practices that Eliot Spitzer pursued or mutual fund practices which Eliot Spitzer pursued or other market reforms which we have pursued as investors representing working men and women who invest in the markets. This is not an attempt to do anything other than seek restitution for our pensioners and tax payers and the many investor who were bilked by these front running and trading ahead practices, and yes to seek reform ultimately of this institution. We believe firmly that the New York Stock Exchange did not do its regulatory job during the worst wave of corporate scandal that permeated this market over the last three years and it`s time to have a separation of business and regulatory practices.

YASTINE: Mr. Angelides, one last question, I`ve got about 20 second left. You talked about restitution. A figure I heard during the call today was $155 million, perhaps more. Is that in the ball park?

ANGELIDES: We believe that`s the minimum based on the work of the SEC. And we`re doing further due diligence and we`ll do discovery and we believe that in the end unfortunately that number may climb significantly higher.

YASTINE: All right, we`ll have to end it there. Mr. Angelides, thank you for joining us.

ANGELIDES: Thank you.

YASTINE: Our guest, Phil Angelides, the California state treasurer and a member of CalPERS board of administration.

KANGAS: Alliance Capital Management (AC) is facing a double whammy tonight. The Securities and Exchange Commission and New York`s attorney general have reached a deal to impose on Alliance the biggest fines ever on a mutual fund company.

As Darren Gersh reports, the impact could top half a billion dollars, but the deal is causing friction between the SEC and the AG.

DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: In the next few days, New York Attorney General Eliot Spitzer and the SEC will make another public display of solidarity, issuing a joint announcement of a settlement with Alliance Capital over late trading and marketing timing abuses. But despite claims of united action, the two regulators are heading off in very different directions. Sources tell NIGHTLY BUSINESS REPORT Alliance will pay the SEC a $100 million fine and $150 million in restitution. That money will go to investors who were directly harmed by any misconduct. The New York Attorney General`s Office confirms Alliance has agreed to reduce the management fees it charges investors by 20 percent over the next five years. That could save Alliance investors several hundred millions dollars. But the SEC opposes Spitzer`s decision to force Alliance to slash its fees. The SEC calls that price fixing, and argues investors will have to stay with a firm that harmed them in order to benefit from the lower cost. The mutual fund industry agrees, saying fees are not the issue here.

MATTHEW FINK, PRES., INVESTMENT CO. INST.: This case involved market timing through a hedge fund. Fees were not involved, so it strikes me as the punishment having no relationship to the crime.

GERSH: But critics of high mutual fund fees applaud the New York attorney general.

HAROLD EVENSKY, FINANCIAL PLANNER, EVENSKY BROWN & KATZ: I think this is a Solomon-like proposal, in terms of a punishment; that the free market has not been working well for investors, it has been working great for the fund industry. And I think it`s about time someone started working for my clients and other investors.

GERSH: Next month, the SEC will adopt tougher requirements for disclosure of mutual fund fees. But critics say it is time to send the industry a strong message.

EVENSKY: These problems have existed for a long time.

GERSH: This fight is not going away. The New York Attorney General`s Office says it sees the fee deal with Alliance Capital as a template for settling other investigations into mutual fund trading abuses.

Darren Gersh, NIGHTLY BUSINESS REPORT, Washington.

KANGAS: Wall Street`s blue chips staged a brisk opening rally, on good economic news. Last month consumer prices dropped 0.2 percent, industrial production grew a stronger-than-expected 0.9 percent, and housing starts rose 4 1/2 percent. We`ll have details on that shortly. After 30 minutes of trading the Dow was up 55 points, but the NASDAQ Index was down about 3 points. News that another former senior Iraqi official was captured kept the blue chips buoyant, but profit-taking in the high-tech sector kept the NASDAQ market lower. In early afternoon, the Dow was up 74 points, but NASDAQ down 12. And that was the same trend that lasted to the end today. The Dow Industrial Average closed up 106 3/4 points at 10,129.56, a 19- month high. But the NASDAQ Composite managed to rise only 6 points to 1924.29. The S&P 500 gained 7 points to 1075.13. In the bond market, the 10-year note rose 12/32 to par and 9/32, putting the yield 4.21 percent.

As I mentioned, positive economic data helped fuel today`s stock market rally. Wall Street was pleasantly surprised that housing starts soared last month, surpassing the 2 million mark.

Erika Miller runs down the numbers.

ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: Housing starts have been going through the roof. Starts surged 4.5 percent in November, to a 2.07 million unit annual pace. That`s the fastest rate in almost two decades. The strength cane as a surprise to Wall Street economists. Most were expecting starts to decline, given the uptick in mortgage rates over the past six months.

HENRY WILLMORE, CHIEF U.S. ECONOMIST, BARCLAYS CAPITAL: Part of the reason why today`s number was a bit of a surprise is that at this point we should really be seeing starts start to taper off a little bit. But it might be delayed because, for example, consumer confidence has been rising. We`ve been seeing some improvement in job growth. So those two factors might be sort of mitigating the rise in mortgage rates.

MILLER: But building permits, which are a barometer of future building activity, fell more than 5 percent during the month, to a $1.8 million unit annual rate. And economists say a pullback in housing demand is on the horizon.

WILLMORE: A collapse is unlikely, but I think given the direction of mortgage rates, and we expect those to keep climbing, we`ll probably see some decline in activity next year.

MILLER: But those concerns did not seem to bother investors. Shares of most home building companies rose today, and many of the stocks are up more than 80 percent this year. And even if mortgage rates creep higher, some analysts predict many of the big names in the sector will continue to shine.

STEPHEN KIM, HOMEBUILDING ANALYST, SMITH BARNEY: The reason that the homebuilders are seeing such tremendous growth is that they are taking share from smaller builders. That is the primary reason why the homebuilding stocks are growing as rapidly as they are.

MILLER: A strong housing market is good for more than just homebuilders. When people buy homes, they almost always buy furniture and appliances to go in them, spreading the wealth throughout the economy.

Erika Miller, NIGHTLY BUSINESS REPORT, New York.

YASTINE: Motorola has a new chairman and chief executive officer tonight. Edward Zander was named to the company`s top spot this morning, officially ending three generations of leadership under the Galvin family. Motorola has been struggling over the last few years, first as companies slowed their telecom spending, and now it`s facing challenges with delivery problems with some of its wireless phones. That`s why the choice of a new chairman is critical to the firm. Until June of last year, Zander was the president of Sun Microsystems (SUNW).

When I talked with Zander earlier today, I began by asking him why he thinks Motorola`s board chose him for the job.

EDWARD ZANDER, CHMN. & CEO, MOTOROLA: I can only guess by the interview process they were looking for someone that had come from technology, that had been in businesses with high growth rates and where innovation happens very quickly, and time to market, results-oriented are important, and somebody that understands I think the next wave of digital convergence in technology, where it`s going. So it`s hard for me to put it all together, one that hopefully has high character, and high values, and I`ll leave it at that.

YASTINE: Well, you`re taking this job in January, becomes effective in January, what are the first steps that you`ll be doing when you take the helm at Motorola?

ZANDER: Well, as tempting as it may seem to go make decisions very quickly and have some preconceived notions, because I`ve read a lot about the company and talked to people on the outside, the most important thing I can do is discipline myself to listen and learn, and communicate at a very high level with as many employees as possible, certainly spending a lot of time with the management teams, spend a lot of time with customers and spend a lot of time with partners. And I really can`t give you the five things I`m going to go do. There is obviously a need to improve execution. There`s a need to focus a little better, and get results to the expectations that we have internally as well as meeting shareholder expectations. And those are the blocking and tackling things you have to go do. The bigger question, really, taking the company over the next decade or next few years, I`m going to have to wait and understand a little bit more about the businesses, and take what I`ve learned on the outside and see if it`s true on the inside.

YASTINE: Well, you mentioned executions. Talk about that, because just earlier this month news had come out that there are part shortages and not as many of those new camera phones – the new camera phones that Motorola is coming out with, would be able to hit store shelves. What do you do to fix those sorts of glitches which have to some investors appeared to be just too common that have occurred in recent quarters at Motorola?

ZANDER: Right. Here is, by the way, the new camera phone. You`ve got to go out and buy one. It`s a great device. But I think that`s part of what I ultimately can bring to the party. It does take, unfortunately, a little time to turn a company of this size and getting in the right direction. But there are things happening here, they`re trying to address those issues that I feel good about. And I think that I have to take root cause with some of these issues and understand them, treat the symptoms, and treat the disease actually, and put the changes in that are necessary to get execution to the degree of which we want it. And.

(CROSSTALK)

ZANDER: I`m sorry, go ahead.

YASTINE: Well, just broadly speaking, do you think that Motorola in these five and 10 years ahead is still a growth story or is it really a restructuring story? The board has talked about spinning off the semiconductor unit already. That is in play. That is part of restructuring. Is that where you get the growth from, basically unlocking value?

ZANDER: No, boy, I hope not. Spinning off semiconductors, you know, if you look at great companies, I don`t care where it`s GE (GE) or IBM (IBM), that are constantly adding things and potentially things that don`t make sense in their portfolio, that`s part of an ongoing long-term business process. This has to be a growth story. We`re in the communications business. We`re in the mobile wireless business. We`re playing in some of the biggest markets and the biggest technology discount annuities over the next decade. And we`ve got $3 1/2 billion R&D to go apply to this thing. We have got a global brand. We`ve got great people. So I`m looking at growing the business. I`m looking at getting into a lot of the great opportunities I see.

YASTINE: Still a growth story then.

ZANDER: I think so.

YASTINE: Still a growth story. All right, we`ll have to end it there, Mr. Zander, sorry about that.

ZANDER: Thank you.

YASTINE: Our guest, Ed Zander, the incoming chief, chairman and CEO at Motorola.

Boeing unveiled what it hopes will be a solution to its sagging jet business today, the 7E7 Dreamliner. Boeing CEO Harry Stonecipher announced that the company`s board had given the go-ahead to marketing the Dreamliner. It`s Boeing`s first major jet launch in over a decade, and comes at a time when the company`s commercial airliner business has been eroded by post-9/11 cutbacks and increased competition from Airbus.

And Paul, the 7E7 is a mid-sized plane. It`s supposed to be more fuel efficient. It carries about 250 people.

KANGAS: And it will be built in Everett, Washington, Jeff. Now let`s take a look at our other “Stocks in the News” tonight.

Topping the New York Exchange active list, Motorola (MOT) on 34.1 million shares. The stock moving up $0.54 or 4.2 percent. You heard the news about the new chief executive.

And then Lucent Technologies (LU) showed no change.

Followed by General Electric (GE), a $0.32-gain.

Caremark (CMX) down $1.26. Negative reaction to news that AdvancePCS, which it is in the process of acquiring, lost a major health care account to Prime Therapeutics Corp.

Time Warner (TWX), number five in big board volume, was down $0.09.

And then we see Wal-Mart (WMT) recovering $0.65 after a sizeable loss yesterday.

Pfizer (PFE), a $0.16-gainer.

Nokia (NOK) moved up $0.04.

Advanced Micro Devices (AMD), a $0.37-loss.

And Ford Motor (F), tenth in big board volume, move up $0.07.

Honeywell (HON), a member of the Dow Industrial Average, down $0.34. The company sees 2004 earnings between $1.40 and $1.55. But that`s well below the Wall Street estimate of $1.59. The company notes it will have a $0.30 per share increase in expenses for pension benefits to former employees.

And then Sears Roebuck (S), which used to be a member of the Dow but is no longer, down $0.91. UBS research downgraded from buy to neutral due to discounting and strong competition in the retailing area.

Celanese (CZ) had a good day, up $4.26. Blackstone Partners has made a 3.1 billion euro buyout bid. That works out to 32 1/2 euro per share. Translated into dollars, that`s just about $40 per share for Celanese.

Amdocs Limited (DOX) down $3.27. Now the company reaffirmed its previous first-quarter revenue and earnings guidance even through Sprint PCS (PCS) has cancelled a planned switch to the company`s billing software.

And interestingly, the company that got that contract was Convergys (CVG), up $1.30. It`s a seven-year deal to support Sprint PCS` billing needs. Raymond James financial upgraded Convergys stock from underperform to market perform.

And then LaBranche & Company (LAB) down $0.71. It`s among the specialist firms under pressure after CalPERS filed that trading abuse lawsuit that we talked about earlier.

And then Coachmen Industries (COA) down $2.65. The company cut its 2003 earnings estimate from previous guidance of $0.52 down to $0.41 to $0.45. The company blames the shortage of recreational vehicle ovens and ranges and says that shortage will continue through the month of February.

And then York International (YRK) down $4.26. The company did reaffirm its previous 2003 operating earnings estimate, but says 2004 will come in lower than its earlier forecasts.

NASDAQ`s most active, Microsoft (MSFT) up $0.32.

Followed by Intel (INTC), a $0.02-gain.

Oracle (ORCL) was up $0.42, better-than-expected earnings out yesterday after the close.

SanDisk (SNDK), however, down $5.61. Weakening prices for Flash memory chips due to more than adequate supplies is hurting that stock and those similar to it.

Cisco (CSCO) down $0.21.

AdvancePCS (ADVP), we talked about that earlier, down $3.35.

And then Amgen (AMGN) moving up $0.65. After the close yesterday the company had some positive comments.

Applied Materials (AMAT), a $0.31-loss.

Dell Incorporated (DELL), a $0.36-loss.

And Yahoo! (YHOO) tenth in volume, was down $1.55.

Immucor (BLUD) fell $2.93. The company sees second-quarter earnings of only $0.14 a share. That`s $0.06 below the Wall Street estimate of $0.20.

Extreme Networks (EXTR) falling $1.84, almost, well, 22 1/2 percent drop. The company sees a second-quarter loss of $0.02 to $0.06 because its losing market share, apparently to Cisco and Foundry Networks (FDRY), or so says the W.R. Hambrecht brokerage.

And then Trust Company of New Jersey (TCNJ) up $3.24. North Fork Bancorp (NFB) is going to acquire this company for $726 million in North Fork stock on a one-for-one share basis. North Fork closed at $39.05, up $1.40. So that`s what Trust Company is worth today, $39.05 a share.

And those are the “Stocks in the News” tonight.

YASTINE: Tomorrow: some people think of it as the anti-stock, and they`re predicting a bull market in gold.

Spammers beware: President Bush today signed into law a bill aimed at stemming the tide of unwanted e-mails sent to Americans. The national anti- spam law bans bulk commercial e-mail that uses false identities or misleading subject lines. The legislation also lays the groundwork for the creation of a national “do not e-mail” list similar to the Federal Trade Commission`s “do not call list” that blocks unwanted telemarketing.

KANGAS: The Federal Trade Commission is warning about a new employment scam: ads promising big bucks for stuffing envelopes at home. The advertisements are popping up in mailboxes, e-mail, and newspapers, offering instructions on how to make big money stuffing envelopes in exchange for a small fee. The FTC says work-at-home business opportunities rank seventh in its list of top 10 consumer fraud complaints.

YASTINE: And recapping today`s market action: good economic and corporate news push stocks higher. The Dow gaining 106 points, the NASDAQ climbs 6. And please be sure to join us at our World Wide Web site, NBR.com.

And that`s NIGHTLY BUSINESS REPORT for this Tuesday, December 16. I`m Jeff Yastine. Good night, everyone.

Good night to you, Paul.

KANGAS: Good night, Jeff.

I`m Paul Kangas, wishing all of you the best of good buys.

END

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by FDCH e-Media, Inc. 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. c 2003 Community Television Foundation of South Florida, Inc.

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xfdce NIGHTLY-BUSINESS-REPO-00

Show: NIGHTLY BUSINESS REPORT>

Date: December 11, 2003>

Time: 18:30:00>

Tran: 121100cb.118>

Type: SHOW>

Head: Nightly Business Report>

Sect: Business>

Byline: Paul Kangas, Susie Gharib, Suzanne Pratt, Darren Gersh>

Guest: Burtch Drake>

Spec: Business; Economy>

Time: 00:00:00>

PAUL KANGAS, NIGHTLY BUSINESS REPORT ANCHOR: It took 18 months, but the Dow finally managed to close back above the 10,000 level today. Investors sent the blue chip index higher by 86 points, to close at 10,008.

SUSIE GHARIB, NIGHTLY BUSINESS REPORT ANCHOR: Helping to push stocks higher, news of a better than expected jump in retail sales. It turns out that consumers were full of good cheer in November. We`ll have the latest on today`s retail report.

KANGAS: It`s quid pro quo when it comes to contracts for rebuilding Iraq. President Bush today defending his position on $18 billion in contracts, saying they should go to those countries who put boots on the ground in Iraq.

GHARIB: Then, from child`s play to a multimillion dollar business. We look at job opportunities in the video gaming industry, as we wrap up our series Help Wanted.

KANGAS: I`m Paul Kangas.

GHARIB: And I`m Susie Gharib.

This is NIGHTLY BUSINESS REPORT for Thursday, December 11.

Good evening, everyone.

It`s Dow 10,000 again. A rally in stocks pushed the blue chip average over that milestone for the first time since May 2002. The Dow added 86 points, closing at 10,008. And the NASDAQ also rose sharply, gaining almost 38 points.

Helping to propel stocks higher today, an upbeat report on retail sales.

Suzanne Pratt has more.

SUZANNE PRATT, NIGHTLY BUSINESS REPORT CORRESPONDENT: The latest measure of retail spending suggests American consumers are full of holiday cheer. The Commerce Department says retail sales rose a better than expected 0.9 percent in November. On top of that, October`s sales were revised higher, to unchanged, after a previously announced drop. Experts say the report indicates the recovery may be more durable than originally forecast. And many say the data helps put to rest concerns that growth might slow sharply in the fourth quarter.

LAKSHMAN ACHUTHAN, MANAGING DIRECTOR, ECONOMIC CYCLE RESEARCH INSTITUTE: This is one of the key coincident indicators of the economy. So, they tell you what the economy is like right now outside your window. And the answer is the economy continues to grow faster, essentially, than expected.

PRATT: Purchases of electronics, furniture and automobiles helped to fuel the increase in November retail sales.

But some economists are concerned that the composition of spending suggests a level of cautiousness on the part of the consumer.

DREW MATUS, SENIOR MARKET ECONOMIST LEHMAN BROTHERS: When consumers are spending based on things such as low interest rates, prompting people to go and try and buy autos, or they`re just filling up homes, all those things are temporary factors and therefore we have to watch to make sure that the spending growth continues in the U.S. economy.

PRATT: Still, most economists believe that consumer spending now has the momentum to continue strongly into 2004. They say not only are Americans becoming less worried about their jobs, but they believe tax cuts and low interest rates will continue to encourage spending.

ACHUTHAN: It may simply be that the stimulus has jumpstarted enough confidence to bring back a more healthy recovery that is not simply the consumer, that also begins to include the business side of our economy.

PRATT: Economists forecast a healthy recovery will translate into a four percent increase in fourth quarter GDP. That`s a respectable number, but still slower than the third quarter`s torrid pace.

Suzanne Pratt, NIGHTLY BUSINESS REPORT, New York.

GHARIB: Some strong words today from Alan Greenspan about free trade. The Chairman of the federal Reserve challenged what he called the conventional wisdom that China`s foreign exchange policies give the communist nation an unfair advantage over American businesses. Mr. Greenspan said that a move by China to float its currency would do little to help America`s job market and could prove destabilizing to China`s banking system. The comments in a speech to the World Affairs Council come as the White House continues to urge China to adopt a flexible exchange rate.

KANGAS: Stocks opened broadly higher as those encouraging November retail sales figures overshadowed news that weekly jobless benefit claims rose 13,000. After an hour of trading, the Dow was up 68 points, the NASDAQ up 22 points.

The market held its gains for the rest of the morning on word that October business inventories rose 0.4 percent, suggesting businesses are growing more confident of the economic recovery. Early afternoon brought a fade, but stocks came on strong again after the minutes of the Fed`s October 28th meeting were released. They downplayed inflation, suggesting interest rates should stay low for up to two more years.

With that, the Dow Jones Industrial average surged to an 18 month high with a closing gain of 86.30 points, at 10,008.16, a psychological victory for the bulls.

The NASDAQ Composite jumped 37 2/3 points, or two percent, to 1,942.32.

The Standard & Poor`s 500 Index gained 12.16, ending at 1,071.21.

Despite lukewarm demand for the Treasury`s 10-year note auction today, the 10-year note did advance 21/32, at par and 4/32, pulling the yield below 4 1/4 percent, and that was thanks largely to the release of those October Fed meeting minutes.

GHARIB: France, Russia and Germany need not apply. The President is sticking to that message when it comes to handing out U.S. contracts to rebuild Iraq.

And as Darren Gersh explains, the controversy could complicate the administration`s efforts to pare back Iraq`s staggering debt.

DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: The President was standing his ground today, defending his administration`s decision to restrict contracts to rebuild Iraq to countries that have, as the Pentagon would say, put boots on the ground.

GEORGE W. BUSH, PRESIDENT, UNITED STATES OF AMERICA: It`s very simple. Our people risked their lives. Coalition — friendly coalition folks risked their lives and therefore the contracting is going to reflect that. And that`s what the U.S. taxpayers expect.

GERSH: The decision means countries ranging from Albania to Uzbekistan can bid on more than $18 billion in Iraqi reconstruction contracts, but France, Germany and Russia cannot, though an exception might be made for Canada.

Analysts say while the contracts to rebuild everything from bridges to oil wells are valuable in the short run, the contracting controversy could jeopardize opportunities for American businesses in the long run.

STEVEN SCHOONER, GEORGE WASHINGTON UNIVERSITY: If we signal to other nations that we`re going to exclude their firms from opportunities to compete when we spend money, we invite them to do the same to us, and that has to be concern to us firms.

GERSH: Russia, Germany and France reacted with furor. The E.U. called the decision “gratuitous.” The controversy comes just days before the administration will send former Treasury Secretary James Baker on a mission to ask these same countries to forgive much of Iraq`s massive prewar foreign debt.

G.W. BUSH: If these countries want to participate in helping the world become more secure by enabling Iraq to emerge as a free and peaceful country, one way to contribute is through debt restructuring.

GERSH: The Center for Strategic and International Studies estimates Iraq`s total debt at $383 billion. That figure includes $57 billion in contracts signed between Saddam Hussein and Chinese, Russian, Dutch and French companies. The timing of the contract announcement seemed to link debt relief with future work in Iraq. But analysts say such a strategy could backfire.

BATHSHEBA CROCKER CENTER FOR STRATEGIC & INTERNATIONAL STUDIES: So rather than being leverage to get other countries to come toward what we would like to see on the debt, that this will actually just alienate those countries even further.

GERSH: The E.U. is studying whether the contract exclusions violate international trade agreements. But the U.S. says companies from countries left out of the initial bidding, could still participate as subcontractors.

Darren Gersh, NIGHTLY BUSINESS REPORT, Washington.

KANGAS: The head of the Tribune Company (TRB) sees a rebound in ad spending next year. Chief Executive Dennis FitzSimons expects earnings growth in the low double digits for Tribune`s newspapers and television stations in 2004. Speaking at a UBS investor conference today, FitzSimons said much of that growth will come from a rebound in advertising, specifically help wanted ads, as the economy continues to pick up.

GHARIB: The advertising industry is also trying to boost business. The American Association of Advertising Agencies, or the AAAAs, announced plans today for a festival in New York called Advertising Week, showcasing the industry`s creativity.

When I talked with AAAAs President Burtch Drake today, I asked him why he`s hosting the event.

BURTCH DRAKE, AMERICAN ASSOCIATION OF ADVERTISING AGENCIES: Everybody thinks of Madison Avenue and Wall Street and 7th Avenue. So we`re kind of known but we have never done anything to publicize ourselves. So the thought was maybe we`ll take a lesson from 7th Avenue with Fashion Week and create an event to celebrate and also showcase our industry.

GHARIB: Mr. Drake, that`s interesting because the advertising industry has been hesitant to promote itself. Why the change?

DRAKE: We spend so much time promoting our clients` products and services that I think we`ve forgotten how to promote ourselves. And the light has gone off of our industry, maybe because we have been so reticent. So the thought was, you know, we`ve got some pretty smart people and a very creative business and maybe we can do something to put, you know, raise our level out there.

GHARIB: Several forecasters have been saying that ad spending is picking up. Why are things looking better?

DRAKE: Well, I think the recession is well past us. The economy is in very healthy shape. The Bush tax cuts seem to be working. The Iraqi war is pretty much behind us in terms of what that was doing. And all the forecasts are much more bullish, actually, than I would have thought. Next year is going to be even better. The two outside forces are the Olympics and the presidential elections, which always bring new money into the business.

GHARIB: Can you put this in perspective? How does this compare with 2000, which was the best year ever for advertising?

DRAKE: For the first time in the history of the industry since the Depression, in 2001 we actually had a decline in ad spend. Ad spending has always been kind of bulletproof. But in 2001, we actually had a year to year decline. It came back in 2002 modestly, I think two or three percent. And then 2003 is going to be four or five percent. And now we`re looking at 2004, seven or eight percent. So we`re on a pretty good track, but I think the absolute numbers shows that 2004 will just be barely ahead of where we were in 2000.

GHARIB: Where will we see the growth? Is it mostly going to TV or across the media spectrum?

DRAKE: Television, despite all the questions about TiVo and viewing falling, continues to be the real engine of ad spending.

GHARIB: Well, there was a time that there were only three TV networks. But now with so many channels, how difficult is it for advertisers to get their message out?

DRAKE: Viewers are more diverse, but they`re also more targeted. So that you can rifle shot your advertising more today, even though there are a thousand channels, than you could have when there were three channels only. So, by example, if you advertised on “I Love Lucy” 20, 30 years ago, you would reach hundreds of millions of people. Not all of them might have been candidates to buy your product.

GHARIB: And what about the impact of personal video recorders like TiVo, where people can just skip through the commercials? How do advertisers reach their audience?

DRAKE: The challenge for advertisers will be to have advertising that`s creative enough that people will not want to skip through it. And if you use the Super Bowl as an analogy, actually, the most watched portions of the Super Bowl happen to be the advertising. So if the setting is right and the advertising is right, people will watch it. If it`s boring, then they`re going to snap through it.

GHARIB: And what are the prospects for the Internet?

DRAKE: I think Internet sales this year are going to hit, you know, all kinds of records around the Christmas season. So it has its strengths. But it`s not a mass market advertising medium and it will not ever reach or influence people in the same way, say, that television or radio or some of the mass media does.

GHARIB: When you talk about ad spending picking up, which advertisers are spending the most? Which industry sectors?

DRAKE: The very healthy sectors right now are automobiles, telecommunications — think of the all the wireless people out there trying to get people to switch and carry their numbers over. Movies is a very large industry and health care.

GHARIB: Mr. Drake, thank you very much.

DRAKE: Thank you very much.

I enjoyed it.

Shares of Ikon Office Solutions (IKN) soared today, rising almost 20 percent on news that General Electric (GE) is buying its equipment leasing business for $1.5 billion. The deal is set to close in the first quarter of 2004 and no job cuts are expected. The companies will also enter into an agreement for the funding and services of Ikon`s future leases and rental contracts.

Paul?

KANGAS: Ikon shares jumped $1.75, to close at $10.55. G.E. (GE) was the most active big board issue. We`ll see it in just a moment, as we take a look at our stocks in the news tonight.

And there it is, G.E. (GE) trading 21.4 million shares. It moved up $0.68 on that acquisition of Ikon assets.

Then Concord EFS (CE) up $1.38. The “Heard on the Street” column in today`s “Wall Street Journal” reviews First Data`s (FDC) anti-trust problems in its plans to acquire Concord. Rumor today was that First Data may have reached a settlement with the Justice Department allowing the acquisition to go through. First Data was up $0.85, at $39.06.

Lucent Tech (LU) up $0.15.

Pfizer (PFE) rose $0.58.

Nortel Networks (NT) up $0.09, number five in big board volume.

Time Warner (TWX) gained $0.38.

A $0.05 rise in AT&T Wireless (AWE).

Citizens Communications (CZN) up $2.15. The company has hired a financial adviser to explore strategic alternatives. That often means the sale of part or all of a company.

Home Depot (HD) up $1.45. The company completed a $1 billion share buyback program and now has approved the buyback of an additional $1 billion shares in stock.

Liberty Media (LR) was tenth in volume and moved up $0.26 a share.

AT&T (T), which, of course, is a Dow stock, down $0.26, not helping it get above 10,000. The company is going to cut 12 percent of its workforce, not 10 percent, as previously planned. Also, it sees business services revenues this year dropping six percent. On top of that, the company plans to offer Internet-based phone service in the top 100 U.S. markets by the end of next year.

Procter & Gamble (PG), still another Dow stock, down $0.88. It backed its previous second quarter and 2004 earnings forecasts thanks to good volume growth in fabric, home care and health care sales, especially in Russia and China.

Caterpillar (CAT), yet another Dow stock, up $1.94. The best gainer in the Dow, incidentally, point wise. The Chairman and CEO, Glen Barton, plans to retire at the end of this coming January.

Goodyear Tire & Rubber (GT) down $0.84. The company is going to delay a 10K SEC filing until the new year because of possible improper accounting. Standard & Poor`s repeated a “sell” recommendation.

And Goodrich (GR), not to be confused with Goodyear — Goodrich no longer makes tires. It`s an aerospace components company. Jeffries Brokerage upgraded it from “hold” to “buy.”

And then Cascade (CAE) down $2.12. The company`s in the lift truck business and it had higher third quarter earnings, $0.41 versus $0.36 last year. But that was $0.09 below the Street estimate.

And Unisys (UIS) fell $1.46. The company sees 2004 pension expenses, well, they are large enough that they have investors concerned. They`re going to be triple what they were this year. Morgan Stanley cut earnings estimates. Soundview Financial downgraded Unisys from “outperform” just to “neutral.”

And then Right Management Consultants (RHT) up $1.23. Manpower (MAN) will acquire the company for $488 million in stock. That works out to $18.75 a share. Manpower was unchanged today, at $45.23.

Microsoft (MSFT) topped NASDAQ`s active list, rising $0.02.

Followed by Intel (INTC), up $0.49.

A $0.15 gain in Cisco (CSCO).

Dell (DELL) up $1.25.

Sandisk (SNDK) gained $2.67, fifth in volume.

Applied Materials (AMAT) was up $0.61.

And then a $0.53 gain in Amgen (AMGN).

A $1.39 rise in Qualcomm.

EBay (EBAY) gained almost $2.

And Electronic Arts (ERTS) up $2.28 after J.P. Morgan upgraded it from “neutral” to “over weight.” That upgrade bolstered a lot of the video game stocks today.

Patriot Bank (PBIX) up $5.40. The Pennsylvania bank holding company will be acquired by Susquehanna Bancshares (SUSQ) for $30 a share in cash or 1.14 shares of Susquehanna. That would be worth today $28.60 because Susquehanna`s stock fell $0.31, to $25.09 a share.

And Pharmaceutical Product Development (PPDI) down $1.90. The Robert Baird Brokerage downgraded it from “outperform” to “neutral” after the company said it sees lower than expected 2004 earnings. Baird also cut the price target by $8, down to $26 a share, about where it closed today.

And those are the stocks in the news tonight.

Susie?

GHARIB: Thanks, Paul.

Game Cube, Xbox and PlayStation have turned video games into a multibillion dollar industry. They`ve also opened up job opportunities for many game enthusiasts.

As we wrap up our series Help Wanted, Diane Eastabrook looks at lucrative careers in the video game business.

DIANE EASTABROOK, NIGHTLY BUSINESS REPORT CORRESPONDENT: What started as a pastime could turn into a profession for these students at the Illinois institute of Art. In a world where laughter was king….

21 year old marshal is one of several students who wants a job developing video games after he graduates next week. Anything with character animation, hopefully with games or movies. Pixar`s (PIXR) a really nice company. I`d like to work there.

the $10 billion video game industry is becoming an attractive career choice for a generation that grew up with the Sims and Mario Brothers. So attractive, in fact, the Illinois Institute of Art.

UNIDENTIFIED MALE: In a world where laughter was king.

EASTABROOK: Twenty-one-year-old Marshall Bock is one of several students who wants a job developing video games after he graduates next week.

MARSHALL BOCK STUDENT ILLINOIS INSTITUTE OF ART: Anything in character animation, hopefully with games or with movies. Pixar is a really nice company. I`d like to work there.

EASTABROOK: The $10 billion video game industry is becoming an attractive career choice for a generation that grew up with the Sims and Mario Brothers, so attractive, in fact, the Illinois Institute of Art recently launched a game art and design program that focuses specifically on video game production.

CARRIE GALE, ILLINOIS INSTITUTE OF ART: I think our players in gaming are very excited about it. You know, we`re going to be having graduates that are more qualified for what they`re looking for.

EASTABROOK: The company that developed The Haunted Mansion, Hunter the Reckoning and nearly 40 other titles says it`s constantly seeking new talented. High Voltage Software has grown from less than a dozen employees to nearly 150 in 10 years. The company expects to add even more producers, animators and audio engineers down the road.

ERIC NOFSINGER, V.P., HIGH VOLTAGE SOFTWARE: The player is demanding more depth in their game play, a more rewarding experience for their $50. And in order for games to keep up with film, we`ve found that teams need to get larger and the time frames involved in creating those games needs to get longer.

EASTABROOK: Wages in the video game industry are attractive. Starting salaries range anywhere from $35,000 a year for audio engineers to $67,000 annually for producers. Since video games appeal primarily to young males, most of the staff at High Voltage are men under age 35. But Nofsinger hopes that will change as the industry broadens its audience base.

NOFSINGER: You know, I`ve got a 10-year-old daughter who I`m very proud of and she doesn`t — the games that she, that are available for her and for her interests are very limited.

EASTABROOK: Industry watchers say as video games become more realistic, they could become even more popular than movies, making careers in gaming more appealing and profitable.

Diane Eastabrook NIGHTLY BUSINESS REPORT, Chicago.

KANGAS: Tomorrow, our Friday market monitor guest is Eugene Peroni, Jr., Senior Managing Director of Claymore Securities.

GHARIB: More trouble tonight for Prudential Securities. Massachusetts state regulators charged the company today with the illegal late trading of hedge funds. Regulators say the brokerage allowed more than 1,200 illegal late trades worth more than $162 million. Prudential is already being investigated by the NASD for late trading. And last month five Pru brokers were charged with deceiving shareholders by market timing trades.

KANGAS: Meanwhile, add Heartland Advisors to the list of mutual fund families in trouble with federal regulators. The SEC today charged 12 company officials, including its chief executive officer, with insider trading and fraudulent pricing of two high yield bond funds. The SEC says investors lost $93 million as a result. Heartland says the trades are old news and that its CEO has done nothing wrong.

GHARIB: Here`s a look at what`s happening tomorrow. The November Producer Price Index comes out, as well as October`s international trade deficit and the University of Michigan`s preliminary report on consumer sentiment for the month of December.

In tonight`s commentary, a holiday lesson.

Here`s Tom Stewart, Editor of the “Harvard Business Review.”

TOM STEWART, “HARVARD BUSINESS REVIEW”: It`s hard to imagine Christmas without FAO Schwarz, but this may be the last year when children and parents, their breath steaming, line up to get into the famous Manhattan store. FAO Schwarz declared bankruptcy for the second time and may not live to see another Christmas.

It`s a bittersweet season, too, at the Condit household. Phil Condit, the CEO of Boeing (BA), resigned last week after, here we go again, a series of scandals. Condit might have survived the scandals, which didn`t touch him personally, but for the fact that during his tenure, Boeing`s stock has gone essentially sideways.

Toy planes, big planes, they have more in common than you think. Lesson number one — beware of mergers. A big merger helped to undo both companies. Mergers rarely live up to expectations and they devour management time. Larry Selden, a professor at Columbia, says that you shouldn`t think of a merger as an acquisition of a company. You`re really buying its customers. And unless you know how profitable those customers are, and you probably don`t, you`re liable to make a bad deal.

Lesson number two, it`s not one punch that kills you, it`s the old one-two punch. For Condit, there was scandal and mediocre results. FAO took on a complicated merger and the restructuring of the whole retail sector under pressure from Wal-Mart (WMT) and electronic commerce. Why stand in the cold when you can Google from the den?

So if you`re shopping for companies this season, be extra careful. And wherever you shop, remember, it`s the thought that counts.

I`m Tom Stewart.

KANGAS: Recapping today`s market action, the blue chips revisit 10,000. The Dow gained 86 points, to close at 10,008, while the NASDAQ Composite rose almost 38 points.

And please be sure to join us at our World Wide Web site, nbr.com.

GHARIB: And that`s NIGHTLY BUSINESS REPORT for Thursday, December 11. I`m Susie Gharib. Have a good evening, everyone. And good night to you, Paul.

KANGAS: Good night, Susie. I`m Paul Kangas wishing all of you the best of good buys.

END

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PAUL KANGAS, NIGHTLY BUSINESS REPORT ANCHOR: Wall Street spent the day waiting for the Fed. But it wasn`t the Fed`s decision to hold rates steady that investors were focused on, it was the statement with the central bank`s decision. We`ll tell you what the Fed sees for the future and how Wall Street reacted.LINDA O`BRYON, NIGHTLY BUSINESS REPORT ANCHOR: President Bush hosts China`s premier at the White House today. But behind the pomp and circumstance lurked serious questions about the trade relationship between the two countries.

KANGAS: Then, after years of operating in the red, the U.S. Postal Service delivers news in the black — an almost $4 billion surplus for the year. That means stamp prices will hold steady.

O`BRYON: And why is this woman training for a job in technology? It`s a sector that`s seeing surprising employment growth, and it`s not the only place the so-called jobless recovery is generating new jobs. We`ll show you where the help wanted signs are hanging.

KANGAS: I`m Paul Kangas.

O`BRYON: And I`m Linda O`Bryon.

Susie Gharib is on assignment tonight.

This is NIGHTLY BUSINESS REPORT for Tuesday, December 9.

Good evening, everyone.

The Federal Reserve met today to consider changing short-term interest rates. But in the end, the central bank left rates at a 45 year low of one percent. Stocks sold off on the decision to hold rates steady. Both the Dow and the NASDAQ lost just over 40 points.

As Erika Miller reports, Wall Street was focused on any hints from the Fed about the future direction of rates.

ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: Traders watched their screens with more intensity than usual as the federal Reserve`s announcement came over the wires. But it was not the decision to keep rates unchanged that had Wall Street riveted. All eyes were on the statement accompanying the Fed`s decision. In it the central bank continued to say it would keep rates on hold for “a considerable period.” Many economists thought the Fed would drop that phrase.

ROBERT BRUSCA, CHIEF ECONOMIST, NATIVE AMERICAN SECRETARIES: I don`t think that the Fed is really that eager to start raising rates even yet. I think the Fed realizes that the economy is still spotty, it has some holes in it. The Fed really wants to make sure the economy has got a good head of steam before it starts to hike rates.

MILLER: The central bank also made a small shift in its position on inflation, saying the threat of disinflation is almost equal to that of inflation. Previously, the Fed had said disinflation was its predominant concern. The Fed also noted signs of economic improvement.

JOHN RYDING, SENIOR ECONOMIST, BEAR STEARNS: The economy is, in the Fed`s opinion, and certainly my opinion, is growing quite strongly at the present time. We`re now seeing a manufacturing recovery that looks to be quite fast. And that`s something that has been missing. And the labor market does seem to be improving.

MILLER: On Wall Street today, traders debated when the Fed might start to nudge up rates. Economists say the answer depends on how quickly the job market recovers.

RYDING: It will be the point at which the economy has been creating, say, 250,000 jobs a month for two or three months. When we have seen that, then we`ll know the Fed is close to moving, raising rates.

MILLER: Most Fed watchers say the soonest the central bank is likely to raise rates is the second quarter of next year. But there are still plenty of traders on Wall Street that predict the Fed will wait until the third quarter at the earliest.

Erika Miller, NIGHTLY BUSINESS REPORT, New York.

KANGAS: Wall Street`s blue chips opened with enough strength to lift the Dow Industrial average above the 10,000 level for the first time in 18 months. Fueling that strength were brokerage upgrades on General Motors (GM) and International Paper (IP).

Just 10 minutes into the session, the Dow was up 38 points, at 10,003. But that move triggered a lot of pre-arranged sell orders, and the Dow quickly backed down.

The NASDAQ Index rose about 8 points at the outset of trading.

The market spent the next several hours narrowly mixed as investors stood by for the Fed`s interest rate decision at 2:15 p.m. News that rates would stay unchanged prompted a rally, which lifted the Dow back to the 10,000 level. But once again, sellers took control and sent the market into a late slide.

The Dow Jones industrial average fell to a closing loss of 41.85 points, at 9,923.42.

The NASDAQ Composite lost 40 1/2 points, or 2.1 percent, ending at 1,908.32.

The Standard & Poor`s 500 Index dropped 9.12, ending at 1,060.18.

Over in the bond market, the 10-year note fell 21/32, to 99 5/32, lifting the yield to 4.35 percent.

O`BRYON: President Bush told the Chinese premier today that he wants to see China take concrete steps towards a free floating currency. The U.S. argues the undervalued Chinese yuan gives exporters there an unfair advantage. Security issues also topped today`s agenda as the two men met at the White House.

But as Darren Gersh reports, the leaders still found time to talk about China`s $120 billion trade surplus with the United States.

DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: The pomp of the Chinese premier`s South Lawn arrival was barely over when the President got down to business, signaling he expects China to further open its markets and move towards a floating exchange rate.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We recognize that if prosperity`s power is to reach in every corner of China, the Chinese government must fully integrate into the rules and norms of the international trading and finance system.

GERSH: There is broad agreement among U.S. business that China has not made good on market opening promises it made when it entered the World Trade Organization. The President urged Wen to beef up China`s Intellectual property protection. Copyright theft in China cost U.S. businesses an estimated at $1.8 billion last year.

Despite some high profile crackdowns, Chinese counterfeiters are again exporting CDs and DVDs. And over 90 percent of the software used in China is illegal.

MICHAEL SCHLESINGER, INTERNATIONAL INTELLECTUAL PROPERTY ALLIANCE: That means that over nine copies out of every 10 of software being used in China is illegal. That`s unacceptable and it`s really a piracy level that`s almost unparalleled around the world.

GERSH: Throughout his visit, Wen has defended his country`s trade record, arguing China has reduced average tariffs to 11 percent and slashed other barriers on hundreds of products.

WEN JIABAO, CHINESE PREMIER (THROUGH TRANSLATOR): We have to admit, though, in our economic and trade relationship, problems do exist, and mainly, the U.S. trade deficit with China. The Chinese government takes this problem seriously and has taken measures to improve the situation.

GERSH: Still, the U.S. is pressing China to do much more. The President raised concerns that China`s currency is undervalued, giving exports an unfair advantage. The Chinese premier repeated his country`s desire to move to a floating exchange rate over time, and a U.S. Chinese working group will meet next month on the issue.

But trade tensions are clearly rising. In recent weeks the Commerce Department has threatened to slap tariffs on Chinese products that it says are unfairly flooding into the U.S. But China analyst Minxin Pei believes the those actions will do little to resolve China`s $120 billion trade surplus with the U.S.

MINXIN PEI, CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE: People not living in the U.S. would view these measures not as genuine steps taken to address the trade imbalance, but rather as cynical moves taken by a President in an election campaign.

GERSH: Pei says the U.S. will be more successful if it can convince China to deliver on the promises it has already made to open its markets.

PEI: In that case, I think American companies will benefit a little bit more and probably that will bring down the trade deficit a little bit.

GERSH: But in a meeting with the two leaders and their economic teams, the Chinese premier urged both sides not to politicize their differences over trade.

Darren Gersh, NIGHTLY BUSINESS REPORT, Washington.

KANGAS: A guilty plea today in the ongoing mutual fund scandal. A former executive with Security Trust Company has pleaded guilty to securities fraud in connection with late trading of mutual fund shares. New York Attorney General Eliot Spitzer says Nicole McDermott entered the plea today and admitted in court to directing STC employees to place numerous orders on behalf of two large hedge fund firms after the 4:00 p.m. cutoff. She faces up to four years in prison and will be sentenced in June.

O`BRYON: The New York Stock Exchange saw plenty of turmoil at the top during the third quarter, but its profits jumped sharply higher. The NYSE reported third quarter earnings of nearly $7 million, compared to a paltry $279,000 in the year ago period. The exchange says the across the board cost cuts accounted for nearly all of the gains. The big board also stressed the jump in profits was not related to the departure of its former chairman, Richard Grasso, and the controversy over Grasso`s $180 million pay package.

KANGAS: 2003 was a good year for the United States Postal Service. The agency reported a $4 billion surplus for the year despite declining mail volumes. The earnings boost came mainly from productivity gains and a reduction in payments to its pension plan. The USPS says the surplus should allow it to hold postal rates steady though 2006.

Separately, the White House is urging Congress to approve wide ranging changes in operations at the post office, including greater flexibility in setting postal rates, changes that the post office has sought for years.

O`BRYON: Labor issues are eating away at Kroger`s (KR) bottom line. The grocery store chain`s net income plunged 57 percent in the third quarter. Kroger had earnings of $0.15 a share in the quarter, far shy of the analysts` consensus estimate of $0.29 a share. The company says the drop in earnings is directly related to strikes by grocery store workers in five states. And while the strikes continue in California and Indiana, Kroger today reached tentative agreement with some 3,300 workers in West Virginia, Ohio and Kentucky, Paul.

KANGAS: Linda, Kroger`s shares fell $0.58, to $17.31.

Now let`s take a look at some of our other stocks in the news tonight.

The most active list on the big board, trading 20.4 million shares, Lucent Technologies (LU) dropping a $0.10 a share.

Followed by General Electric (GE), up $0.19.

Then EMC (EMC) down $0.81.

Newell Rubbermaid (NWL) was off $1.97. The company sees 2003 earnings at about $1.47 a share, well below the $1.60 Wall Street estimate. The company cites soft sales. Standard & Poor`s repeated an “avoid” on Newell`s stock.

Washington Mutual (WM) dropping $3.88. The company cut its 2003 earnings outlook from $4.42 a share down to about $4.20 due to lower mortgage income. And that news affected the whole mortgage sector.

Let`s have a look at some other stocks in that group.

Countrywide Financial (CFC) dropping $5.10. Almost a $3 loss in Doral Financial (DRL).

And Wells Fargo (WFC) down $0.78.

Texas Instruments (TXN) was down $0.75.

Pfizer (PFE) fell $0.04.

Nokia (NOK) dropping $0.41.

Taiwan Semiconductor (TSM) off $0.44 a share. After the close yesterday, the company aid November revenues were up 27 percent from a year ago, but they were actually nine percent below October`s record level and that hurt the whole semiconductor group, including Motorola (MOT), which dropped $0.39, tenth in volume.

General Motors (GM) up $1.27. Goldman Sachs upgraded it from “in line” to “outperform” because of the reduced pension expenses for G.M.

And then another Dow stock, International Paper (IP), edging up $0.38. It traded as high as $41.15 after Morgan Stanley upgraded it from “under weight” to “equal weight.”

Amerada Hess (AHC) rose $2.16. The big oil company got an upgrade from Goldman Sachs from “under perform” to “outperform.”

Tyco International (TYC) edging up $0.40 a share. Merrill Lynch increased its price target from $25 a share all the way up to $33 a share.

Hovnanian Enterprises (HOV) tumbling $7.61. This is the big home builder. 2003 earnings out today, $7.85, way up from $4.28 the year before and $0.10 above the Wall Street estimate. But the company sees next year`s earnings coming in at $9 a share, and that`s just “in line” with the Street estimate. A little disappointing to some shareholders.

Also, the declining mortgage activity I talked about earlier at Washington Mutual hurts the whole home building sector.

Let`s have a look at some other stocks in there.

Centex (CTX) dropping $5.29.

Over a $2 drop in D.R. Horton (DHI).

And Lennar (LEN) off $3.89.

Ryland Group (RYL) fell $4.15 a share.

Dow Chemical (DOW) moved up $0.71. Prudential upgraded the whole chemical industry from “neutral” to “favorable” and upgraded Dow`s stock from “neutral” to “over weight.”

Interstate Bakeries (IBC), well, $1.34 sliced off the value of its stocks by sellers. The story here, the company sees second quarter operating income down 30 percent from last year`s level at that period.

Stanley Works (SWK) up $1.32. The company increased fourth quarter sales growth forecasts from plus seven percent to the mid-teens. Raymond James Financial upgraded the stock from “market perform” to a “strong buy.”

And more news on Stanley Works, having to do with Masonite International (MHM), which rose $1.80. Masonite`s going to acquire Stanley Works` residential entry door business for $160 million in cash.

The NASDAQ`s most active, Intel (INTC), down $1.39 in that weak semiconductor group.

Followed by Microsoft (MSFT), which edged $0.14 higher.

Cisco Systems (CSCO) a $1.06 loss.

Dell (DELL) down $1.25 today.

And Amgen (AMGN), fifth in NASDAQ dollar volume, lost $0.02 a share.

Applied Materials (AMAT) down $1.09.

SanDisk (SNDK) tumbling $5.54.

Qualcomm (QCOM), a $0.78 loss there.

Costco Wholesale (COST) fell $0.14.

Amazon.com (AMZN), tenth in Nasdaq dollar volume, down $1.74.

We had a big initial public offering today, Ctrip.com International (CTRP). This is a Chinese hotel and airline travel company based in Shanghai. 4.2 million American depository shares offered at $18 each, opened at $24, the high of the day $37.35. It backed off a little bit, but it was still up 88 1/2 percent from its offering price on the first day.

CCBT Financial Companies (CCBT) up $8.41. This is a Massachusetts commercial bank and it`s going to be acquired by Bank North for almost 1.1 shares of Bank North for each share of CCBT. Today, that would be worth about $34.75 to CCBT holders. Bank North`s stock was down $0.71, at $32.06.

And then REMEC Incorporated (REMC), this is a manufacturer of communications equipment. The company had a third quarter loss of $0.07, not as bad as last year`s $0.26 loss, but the Street was thinking only about a $0.01 per share loss. And on top of that, the Ferris Baker Brokerage downgraded it from “hold” to “sell.”

And those are the stocks in the news tonight.

Linda?

O`BRYON: Well, Paul, the United States is in the midst of what economists call a jobless recovery, and the tight job market is forcing many Americans to retool their careers.

So tonight we begin a three part series looking at how some people are doing just that.

In part one of Help Wanted, Diane Eastabrook introduces us to one displaced worker who is trading in one highly competitive career for another.

EMILY TRIGGIANO, TECHNOLOGY MANAGEMENT STUDENT: Help desk. This is Emily. Can I help you?

DIANE EASTABROOK, NIGHTLY BUSINESS REPORT CORRESPONDENT: Getting laid off from a corporate sales job last year led 33-year-old Emily Triggiano down a new career path.

TRIGGIANO: I knew that what I was doing wasn`t truly my passion and what I wanted to do.

EASTABROOK: Technology turned out to be Triggiano`s passion. So she now works mornings troubleshooting computer problems at a DeVry (Company: DeVry Inc.; Ticker: DV; URL: http://www.devry.com) University campus near Chicago.

TRIGGIANO: Do you print from any DOS-based programs?

EASTABROOK: Afternoons are spent taking classes at DeVry. Triggiano is working towards a bachelor`s degree in technical management. Even though Triggiano is a single parent racking up student loan debt, she thinks her future is much brighter today than it was a few years ago.

TRIGGIANO: Technology is changing by leaps and bounds and I`m the kind of person that`s not afraid to flow with the changes and to learn new technologies and new systems.

EASTABROOK: Triggiano`s career plans could also reflect a possible change in the technology industry. The sector began shedding jobs by the thousands in late 2000 and early 2001. But now there are signs the industry may finally be turning itself around. While the jobless rate in information technology is still high, around six percent, the sector is improving. The outplacement firm Challenger, Gray and Christmas says the number of technology job cuts fell by a third in the last quarter compared to the same period last year. Industry watchers think renewed demand for tech workers could be just around the corner. Some predict corporate spending on technology could increase between six and eight percent next year, paving the way for future hiring.

JOHN CHALLENGER, CEO, CHALLENGER, GRAY & CHRISTMAS: Tech spending is up in the last six months. Companies are hiring tech workers to come in and do their computer security, to build their enterprise systems, especially smaller companies, to just develop that technology infrastructure.

EASTABROOK: DeVry thinks optimism about technology is bringing more students back to its campuses. The for profit educational company is known for its tech programs. Enrollment at its nearly 70 schools began dropping in early 2001. But last summer it began picking up again.

JERRY DILL, REGIONAL VICE PRESIDENT, DEVRY: Every company has networks these days. And so it`s going to take, you know, good skilled people who have good technology skills to work in that environment and be productive for those organizations.

EASTABROOK: Triggiano probably won`t graduate for a couple of years. She hopes by then the tech sector will be red hot again and demand for workers like her will be hot, as well.

Diane Eastabrook, NIGHTLY BUSINESS REPORT, Addison, Illinois.

KANGAS: Tomorrow, our series Help Wanted continues, with a look at the nation`s nursing shortage.

O`BRYON: If you want to book a US Airways (UAIR) ticket on the online travel service Expedia, well, you can`t. The carrier pulled its listings from the Web site in a dispute over booking fees. US Airways claims Expedia hiked its fees to almost $9 a ticket while charging other airlines` customers less. Expedia says from time to time it uses variable fees to cover the cost of doing business, just as its competitors do.

KANGAS: Consumers trying to change wireless carriers and keep their phone numbers are running into static. In the two weeks since number portability began, the Federal Communications Commission has logged 600 complaints, most for delays in moving from one wireless company to another. All six of the top wireless firms have gotten complaints, with AT&T Wireless (AWE) receiving the most.

O`BRYON: And here`s a look at what`s happening tomorrow. The Commerce Department issues its annual benchmark revisions to the U.S. gross domestic product for the period 1929 through the second quarter of 2003. Also, the Energy Information Administration will release its weekly petroleum inventories and we`ll see earnings from CKE Restaurants (CKR), Korn/Ferry International (KFY) and Toll Brothers (TOL).

Tonight`s commentator has a question — do you have to cheat to compete?

Here is Daniel Henninger, Deputy Editor of the “Wall Street Journal`s” editorial page.

DANIEL HENNINGER, COMMENTARY: We Americans are a competitive people. Competition is the watchword of American business. We spend weekends cheering our sports teams, compete in sports ourselves and encourage our children to learn the rigors of competition.

What are we to make, then, of the fact both these most American of endeavors, sports and business, are now engulfed in serious cheating scandals?

Readers of sports pages know about the growing scandal of professional athletes using steroids. Baseball, football, swimming and track have all been tarnished by allegations of athletes taking steroids to produce super human performances.

We now know that a lot of what looked like super human performance in business was mainly accomplished with financial steroids and accounting supplements.

I think we should call it cheat to compete. Some say they have to do this because the pressure to perform now, whether a won/lost record or a profit and loss statement is so intense that they need an extra edge. Which means that many of us, in business or sports are now operating inside a very narrow band. On one side is tough, honest competition. But always lurking nearby, it seems, is behavior that dishonors the idea of competition. Prosecutions and exposes will help clean up the scandals. But the better solution lies within ourselves. In the past 10 years, we learned a lot about the obsession of winning. Maybe it`s time to rebuild a workable theory of honorable competition.

I`m Daniel Henninger.

KANGAS: Recapping today`s market action, after briefly crossing the 10,000 level, the Dow headed south and closed down almost 42 points, while the NASDAQ Composite lost 40 points, or two percent.

And please be sure to join us at our World Wide Web site, nbr.com.

O`BRYON: And finally tonight, here`s another reason to keep your tray table in the upright and locked position if you`re flying America West (AWA), because that way you can read the ads on it. The carrier said today it has sold advertising space on its tray tables to Mercedes Benz, Bank of America (BAC) and the History Channel. America West is the first airline to launch this type of tray table ad placement, in what it calls a novel opportunity for passengers to learn about new products. And it`s the only to a customer, since only one advertiser per aircraft will be permitted, Paul.

KANGAS: Linda, after looking at that ad in front of you on a five hour flight, I guarantee you the advertiser is going to get his message across.

O`BRYON: That`s for sure. Talk about a captive audience.

KANGAS: Boy, you`ve got it.

O`BRYON: And that`s NIGHTLY BUSINESS REPORT for Tuesday, December 9. I`m Linda O`Bryon. Good night, everyone. And good night to you, too, Paul.

KANGAS: Good night, Linda. I`m Paul Kangas, wishing all of you the best of good buys.

END

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by FDCH e-Media, Inc. 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. c 2003 Community Television Foundation of South Florida, Inc.

TO PURCHASE A VIDEOTAPE OF THIS PIECE, PLEASE CALL 888-266-3601

Content and programming copyright 2003 Community Television Foundation of South Florida,

Inc. Formatting and transcription copyright 2003 FDCH e-Media, Inc. (f/k/a Federal Document Clearing House Inc., eMediaMillWorks, Inc.), No quotes from the materials contained herein may be used in any media without attribution to Community Television Foundation of South Florida, Inc. This transcript may not be copied or resold in any media.

xfdce NIGHTLY-BUSINESS-REPO-00

Show: NIGHTLY BUSINESS REPORT>

Date: December 9, 2003>

Time: 18:30:00>

Tran: 120900cb.118>

Type: SHOW>

Head: Nightly Business Report>

Sect: Business>

Byline: Paul Kangas, Linda O`Bryon>

Guest: Daniel Henninger>

Spec: Business; Economy>

Time: 00:00:00>

PAUL KANGAS, NIGHTLY BUSINESS REPORT ANCHOR: Wall Street spent the day waiting for the Fed. But it wasn`t the Fed`s decision to hold rates steady that investors were focused on, it was the statement with the central bank`s decision. We`ll tell you what the Fed sees for the future and how Wall Street reacted.LINDA O`BRYON, NIGHTLY BUSINESS REPORT ANCHOR: President Bush hosts China`s premier at the White House today. But behind the pomp and circumstance lurked serious questions about the trade relationship between the two countries.

KANGAS: Then, after years of operating in the red, the U.S. Postal Service delivers news in the black — an almost $4 billion surplus for the year. That means stamp prices will hold steady.

O`BRYON: And why is this woman training for a job in technology? It`s a sector that`s seeing surprising employment growth, and it`s not the only place the so-called jobless recovery is generating new jobs. We`ll show you where the help wanted signs are hanging.

KANGAS: I`m Paul Kangas.

O`BRYON: And I`m Linda O`Bryon.

Susie Gharib is on assignment tonight.

This is NIGHTLY BUSINESS REPORT for Tuesday, December 9.

Good evening, everyone.

The Federal Reserve met today to consider changing short-term interest rates. But in the end, the central bank left rates at a 45 year low of one percent. Stocks sold off on the decision to hold rates steady. Both the Dow and the NASDAQ lost just over 40 points.

As Erika Miller reports, Wall Street was focused on any hints from the Fed about the future direction of rates.

ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: Traders watched their screens with more intensity than usual as the federal Reserve`s announcement came over the wires. But it was not the decision to keep rates unchanged that had Wall Street riveted. All eyes were on the statement accompanying the Fed`s decision. In it the central bank continued to say it would keep rates on hold for “a considerable period.” Many economists thought the Fed would drop that phrase.

ROBERT BRUSCA, CHIEF ECONOMIST, NATIVE AMERICAN SECRETARIES: I don`t think that the Fed is really that eager to start raising rates even yet. I think the Fed realizes that the economy is still spotty, it has some holes in it. The Fed really wants to make sure the economy has got a good head of steam before it starts to hike rates.

MILLER: The central bank also made a small shift in its position on inflation, saying the threat of disinflation is almost equal to that of inflation. Previously, the Fed had said disinflation was its predominant concern. The Fed also noted signs of economic improvement.

JOHN RYDING, SENIOR ECONOMIST, BEAR STEARNS: The economy is, in the Fed`s opinion, and certainly my opinion, is growing quite strongly at the present time. We`re now seeing a manufacturing recovery that looks to be quite fast. And that`s something that has been missing. And the labor market does seem to be improving.

MILLER: On Wall Street today, traders debated when the Fed might start to nudge up rates. Economists say the answer depends on how quickly the job market recovers.

RYDING: It will be the point at which the economy has been creating, say, 250,000 jobs a month for two or three months. When we have seen that, then we`ll know the Fed is close to moving, raising rates.

MILLER: Most Fed watchers say the soonest the central bank is likely to raise rates is the second quarter of next year. But there are still plenty of traders on Wall Street that predict the Fed will wait until the third quarter at the earliest.

Erika Miller, NIGHTLY BUSINESS REPORT, New York.

KANGAS: Wall Street`s blue chips opened with enough strength to lift the Dow Industrial average above the 10,000 level for the first time in 18 months. Fueling that strength were brokerage upgrades on General Motors (GM) and International Paper (IP).

Just 10 minutes into the session, the Dow was up 38 points, at 10,003. But that move triggered a lot of pre-arranged sell orders, and the Dow quickly backed down.

The NASDAQ Index rose about 8 points at the outset of trading.

The market spent the next several hours narrowly mixed as investors stood by for the Fed`s interest rate decision at 2:15 p.m. News that rates would stay unchanged prompted a rally, which lifted the Dow back to the 10,000 level. But once again, sellers took control and sent the market into a late slide.

The Dow Jones industrial average fell to a closing loss of 41.85 points, at 9,923.42.

The NASDAQ Composite lost 40 1/2 points, or 2.1 percent, ending at 1,908.32.

The Standard & Poor`s 500 Index dropped 9.12, ending at 1,060.18.

Over in the bond market, the 10-year note fell 21/32, to 99 5/32, lifting the yield to 4.35 percent.

O`BRYON: President Bush told the Chinese premier today that he wants to see China take concrete steps towards a free floating currency. The U.S. argues the undervalued Chinese yuan gives exporters there an unfair advantage. Security issues also topped today`s agenda as the two men met at the White House.

But as Darren Gersh reports, the leaders still found time to talk about China`s $120 billion trade surplus with the United States.

DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: The pomp of the Chinese premier`s South Lawn arrival was barely over when the President got down to business, signaling he expects China to further open its markets and move towards a floating exchange rate.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We recognize that if prosperity`s power is to reach in every corner of China, the Chinese government must fully integrate into the rules and norms of the international trading and finance system.

GERSH: There is broad agreement among U.S. business that China has not made good on market opening promises it made when it entered the World Trade Organization. The President urged Wen to beef up China`s Intellectual property protection. Copyright theft in China cost U.S. businesses an estimated at $1.8 billion last year.

Despite some high profile crackdowns, Chinese counterfeiters are again exporting CDs and DVDs. And over 90 percent of the software used in China is illegal.

MICHAEL SCHLESINGER, INTERNATIONAL INTELLECTUAL PROPERTY ALLIANCE: That means that over nine copies out of every 10 of software being used in China is illegal. That`s unacceptable and it`s really a piracy level that`s almost unparalleled around the world.

GERSH: Throughout his visit, Wen has defended his country`s trade record, arguing China has reduced average tariffs to 11 percent and slashed other barriers on hundreds of products.

WEN JIABAO, CHINESE PREMIER (THROUGH TRANSLATOR): We have to admit, though, in our economic and trade relationship, problems do exist, and mainly, the U.S. trade deficit with China. The Chinese government takes this problem seriously and has taken measures to improve the situation.

GERSH: Still, the U.S. is pressing China to do much more. The President raised concerns that China`s currency is undervalued, giving exports an unfair advantage. The Chinese premier repeated his country`s desire to move to a floating exchange rate over time, and a U.S. Chinese working group will meet next month on the issue.

But trade tensions are clearly rising. In recent weeks the Commerce Department has threatened to slap tariffs on Chinese products that it says are unfairly flooding into the U.S. But China analyst Minxin Pei believes the those actions will do little to resolve China`s $120 billion trade surplus with the U.S.

MINXIN PEI, CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE: People not living in the U.S. would view these measures not as genuine steps taken to address the trade imbalance, but rather as cynical moves taken by a President in an election campaign.

GERSH: Pei says the U.S. will be more successful if it can convince China to deliver on the promises it has already made to open its markets.

PEI: In that case, I think American companies will benefit a little bit more and probably that will bring down the trade deficit a little bit.

GERSH: But in a meeting with the two leaders and their economic teams, the Chinese premier urged both sides not to politicize their differences over trade.

Darren Gersh, NIGHTLY BUSINESS REPORT, Washington.

KANGAS: A guilty plea today in the ongoing mutual fund scandal. A former executive with Security Trust Company has pleaded guilty to securities fraud in connection with late trading of mutual fund shares. New York Attorney General Eliot Spitzer says Nicole McDermott entered the plea today and admitted in court to directing STC employees to place numerous orders on behalf of two large hedge fund firms after the 4:00 p.m. cutoff. She faces up to four years in prison and will be sentenced in June.

O`BRYON: The New York Stock Exchange saw plenty of turmoil at the top during the third quarter, but its profits jumped sharply higher. The NYSE reported third quarter earnings of nearly $7 million, compared to a paltry $279,000 in the year ago period. The exchange says the across the board cost cuts accounted for nearly all of the gains. The big board also stressed the jump in profits was not related to the departure of its former chairman, Richard Grasso, and the controversy over Grasso`s $180 million pay package.

KANGAS: 2003 was a good year for the United States Postal Service. The agency reported a $4 billion surplus for the year despite declining mail volumes. The earnings boost came mainly from productivity gains and a reduction in payments to its pension plan. The USPS says the surplus should allow it to hold postal rates steady though 2006.

Separately, the White House is urging Congress to approve wide ranging changes in operations at the post office, including greater flexibility in setting postal rates, changes that the post office has sought for years.

O`BRYON: Labor issues are eating away at Kroger`s (KR) bottom line. The grocery store chain`s net income plunged 57 percent in the third quarter. Kroger had earnings of $0.15 a share in the quarter, far shy of the analysts` consensus estimate of $0.29 a share. The company says the drop in earnings is directly related to strikes by grocery store workers in five states. And while the strikes continue in California and Indiana, Kroger today reached tentative agreement with some 3,300 workers in West Virginia, Ohio and Kentucky, Paul.

KANGAS: Linda, Kroger`s shares fell $0.58, to $17.31.

Now let`s take a look at some of our other stocks in the news tonight.

The most active list on the big board, trading 20.4 million shares, Lucent Technologies (LU) dropping a $0.10 a share.

Followed by General Electric (GE), up $0.19.

Then EMC (EMC) down $0.81.

Newell Rubbermaid (NWL) was off $1.97. The company sees 2003 earnings at about $1.47 a share, well below the $1.60 Wall Street estimate. The company cites soft sales. Standard & Poor`s repeated an “avoid” on Newell`s stock.

Washington Mutual (WM) dropping $3.88. The company cut its 2003 earnings outlook from $4.42 a share down to about $4.20 due to lower mortgage income. And that news affected the whole mortgage sector.

Let`s have a look at some other stocks in that group.

Countrywide Financial (CFC) dropping $5.10. Almost a $3 loss in Doral Financial (DRL).

And Wells Fargo (WFC) down $0.78.

Texas Instruments (TXN) was down $0.75.

Pfizer (PFE) fell $0.04.

Nokia (NOK) dropping $0.41.

Taiwan Semiconductor (TSM) off $0.44 a share. After the close yesterday, the company aid November revenues were up 27 percent from a year ago, but they were actually nine percent below October`s record level and that hurt the whole semiconductor group, including Motorola (MOT), which dropped $0.39, tenth in volume.

General Motors (GM) up $1.27. Goldman Sachs upgraded it from “in line” to “outperform” because of the reduced pension expenses for G.M.

And then another Dow stock, International Paper (IP), edging up $0.38. It traded as high as $41.15 after Morgan Stanley upgraded it from “under weight” to “equal weight.”

Amerada Hess (AHC) rose $2.16. The big oil company got an upgrade from Goldman Sachs from “under perform” to “outperform.”

Tyco International (TYC) edging up $0.40 a share. Merrill Lynch increased its price target from $25 a share all the way up to $33 a share.

Hovnanian Enterprises (HOV) tumbling $7.61. This is the big home builder. 2003 earnings out today, $7.85, way up from $4.28 the year before and $0.10 above the Wall Street estimate. But the company sees next year`s earnings coming in at $9 a share, and that`s just “in line” with the Street estimate. A little disappointing to some shareholders.

Also, the declining mortgage activity I talked about earlier at Washington Mutual hurts the whole home building sector.

Let`s have a look at some other stocks in there.

Centex (CTX) dropping $5.29.

Over a $2 drop in D.R. Horton (DHI).

And Lennar (LEN) off $3.89.

Ryland Group (RYL) fell $4.15 a share.

Dow Chemical (DOW) moved up $0.71. Prudential upgraded the whole chemical industry from “neutral” to “favorable” and upgraded Dow`s stock from “neutral” to “over weight.”

Interstate Bakeries (IBC), well, $1.34 sliced off the value of its stocks by sellers. The story here, the company sees second quarter operating income down 30 percent from last year`s level at that period.

Stanley Works (SWK) up $1.32. The company increased fourth quarter sales growth forecasts from plus seven percent to the mid-teens. Raymond James Financial upgraded the stock from “market perform” to a “strong buy.”

And more news on Stanley Works, having to do with Masonite International (MHM), which rose $1.80. Masonite`s going to acquire Stanley Works` residential entry door business for $160 million in cash.

The NASDAQ`s most active, Intel (INTC), down $1.39 in that weak semiconductor group.

Followed by Microsoft (MSFT), which edged $0.14 higher.

Cisco Systems (CSCO) a $1.06 loss.

Dell (DELL) down $1.25 today.

And Amgen (AMGN), fifth in NASDAQ dollar volume, lost $0.02 a share.

Applied Materials (AMAT) down $1.09.

SanDisk (SNDK) tumbling $5.54.

Qualcomm (QCOM), a $0.78 loss there.

Costco Wholesale (COST) fell $0.14.

Amazon.com (AMZN), tenth in Nasdaq dollar volume, down $1.74.

We had a big initial public offering today, Ctrip.com International (CTRP). This is a Chinese hotel and airline travel company based in Shanghai. 4.2 million American depository shares offered at $18 each, opened at $24, the high of the day $37.35. It backed off a little bit, but it was still up 88 1/2 percent from its offering price on the first day.

CCBT Financial Companies (CCBT) up $8.41. This is a Massachusetts commercial bank and it`s going to be acquired by Bank North for almost 1.1 shares of Bank North for each share of CCBT. Today, that would be worth about $34.75 to CCBT holders. Bank North`s stock was down $0.71, at $32.06.

And then REMEC Incorporated (REMC), this is a manufacturer of communications equipment. The company had a third quarter loss of $0.07, not as bad as last year`s $0.26 loss, but the Street was thinking only about a $0.01 per share loss. And on top of that, the Ferris Baker Brokerage downgraded it from “hold” to “sell.”

And those are the stocks in the news tonight.

Linda?

O`BRYON: Well, Paul, the United States is in the midst of what economists call a jobless recovery, and the tight job market is forcing many Americans to retool their careers.

So tonight we begin a three part series looking at how some people are doing just that.

In part one of Help Wanted, Diane Eastabrook introduces us to one displaced worker who is trading in one highly competitive career for another.

EMILY TRIGGIANO, TECHNOLOGY MANAGEMENT STUDENT: Help desk. This is Emily. Can I help you?

DIANE EASTABROOK, NIGHTLY BUSINESS REPORT CORRESPONDENT: Getting laid off from a corporate sales job last year led 33-year-old Emily Triggiano down a new career path.

TRIGGIANO: I knew that what I was doing wasn`t truly my passion and what I wanted to do.

EASTABROOK: Technology turned out to be Triggiano`s passion. So she now works mornings troubleshooting computer problems at a DeVry (Company: DeVry Inc.; Ticker: DV; URL: http://www.devry.com) University campus near Chicago.

TRIGGIANO: Do you print from any DOS-based programs?

EASTABROOK: Afternoons are spent taking classes at DeVry. Triggiano is working towards a bachelor`s degree in technical management. Even though Triggiano is a single parent racking up student loan debt, she thinks her future is much brighter today than it was a few years ago.

TRIGGIANO: Technology is changing by leaps and bounds and I`m the kind of person that`s not afraid to flow with the changes and to learn new technologies and new systems.

EASTABROOK: Triggiano`s career plans could also reflect a possible change in the technology industry. The sector began shedding jobs by the thousands in late 2000 and early 2001. But now there are signs the industry may finally be turning itself around. While the jobless rate in information technology is still high, around six percent, the sector is improving. The outplacement firm Challenger, Gray and Christmas says the number of technology job cuts fell by a third in the last quarter compared to the same period last year. Industry watchers think renewed demand for tech workers could be just around the corner. Some predict corporate spending on technology could increase between six and eight percent next year, paving the way for future hiring.

JOHN CHALLENGER, CEO, CHALLENGER, GRAY & CHRISTMAS: Tech spending is up in the last six months. Companies are hiring tech workers to come in and do their computer security, to build their enterprise systems, especially smaller companies, to just develop that technology infrastructure.

EASTABROOK: DeVry thinks optimism about technology is bringing more students back to its campuses. The for profit educational company is known for its tech programs. Enrollment at its nearly 70 schools began dropping in early 2001. But last summer it began picking up again.

JERRY DILL, REGIONAL VICE PRESIDENT, DEVRY: Every company has networks these days. And so it`s going to take, you know, good skilled people who have good technology skills to work in that environment and be productive for those organizations.

EASTABROOK: Triggiano probably won`t graduate for a couple of years. She hopes by then the tech sector will be red hot again and demand for workers like her will be hot, as well.

Diane Eastabrook, NIGHTLY BUSINESS REPORT, Addison, Illinois.

KANGAS: Tomorrow, our series Help Wanted continues, with a look at the nation`s nursing shortage.

O`BRYON: If you want to book a US Airways (UAIR) ticket on the online travel service Expedia, well, you can`t. The carrier pulled its listings from the Web site in a dispute over booking fees. US Airways claims Expedia hiked its fees to almost $9 a ticket while charging other airlines` customers less. Expedia says from time to time it uses variable fees to cover the cost of doing business, just as its competitors do.

KANGAS: Consumers trying to change wireless carriers and keep their phone numbers are running into static. In the two weeks since number portability began, the Federal Communications Commission has logged 600 complaints, most for delays in moving from one wireless company to another. All six of the top wireless firms have gotten complaints, with AT&T Wireless (AWE) receiving the most.

O`BRYON: And here`s a look at what`s happening tomorrow. The Commerce Department issues its annual benchmark revisions to the U.S. gross domestic product for the period 1929 through the second quarter of 2003. Also, the Energy Information Administration will release its weekly petroleum inventories and we`ll see earnings from CKE Restaurants (CKR), Korn/Ferry International (KFY) and Toll Brothers (TOL).

Tonight`s commentator has a question — do you have to cheat to compete?

Here is Daniel Henninger, Deputy Editor of the “Wall Street Journal`s” editorial page.

DANIEL HENNINGER, COMMENTARY: We Americans are a competitive people. Competition is the watchword of American business. We spend weekends cheering our sports teams, compete in sports ourselves and encourage our children to learn the rigors of competition.

What are we to make, then, of the fact both these most American of endeavors, sports and business, are now engulfed in serious cheating scandals?

Readers of sports pages know about the growing scandal of professional athletes using steroids. Baseball, football, swimming and track have all been tarnished by allegations of athletes taking steroids to produce super human performances.

We now know that a lot of what looked like super human performance in business was mainly accomplished with financial steroids and accounting supplements.

I think we should call it cheat to compete. Some say they have to do this because the pressure to perform now, whether a won/lost record or a profit and loss statement is so intense that they need an extra edge. Which means that many of us, in business or sports are now operating inside a very narrow band. On one side is tough, honest competition. But always lurking nearby, it seems, is behavior that dishonors the idea of competition. Prosecutions and exposes will help clean up the scandals. But the better solution lies within ourselves. In the past 10 years, we learned a lot about the obsession of winning. Maybe it`s time to rebuild a workable theory of honorable competition.

I`m Daniel Henninger.

KANGAS: Recapping today`s market action, after briefly crossing the 10,000 level, the Dow headed south and closed down almost 42 points, while the NASDAQ Composite lost 40 points, or two percent.

And please be sure to join us at our World Wide Web site, nbr.com.

O`BRYON: And finally tonight, here`s another reason to keep your tray table in the upright and locked position if you`re flying America West (AWA), because that way you can read the ads on it. The carrier said today it has sold advertising space on its tray tables to Mercedes Benz, Bank of America (BAC) and the History Channel. America West is the first airline to launch this type of tray table ad placement, in what it calls a novel opportunity for passengers to learn about new products. And it`s the only to a customer, since only one advertiser per aircraft will be permitted, Paul.

KANGAS: Linda, after looking at that ad in front of you on a five hour flight, I guarantee you the advertiser is going to get his message across.

O`BRYON: That`s for sure. Talk about a captive audience.

KANGAS: Boy, you`ve got it.

O`BRYON: And that`s NIGHTLY BUSINESS REPORT for Tuesday, December 9. I`m Linda O`Bryon. Good night, everyone. And good night to you, too, Paul.

KANGAS: Good night, Linda. I`m Paul Kangas, wishing all of you the best of good buys.

END

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by FDCH e-Media, Inc. 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. c 2003 Community Television Foundation of South Florida, Inc.

TO PURCHASE A VIDEOTAPE OF THIS PIECE, PLEASE CALL 888-266-3601

Content and programming copyright 2003 Community Television Foundation of South Florida,

Inc. Formatting and transcription copyright 2003 FDCH e-Media, Inc. (f/k/a Federal Document Clearing House Inc., eMediaMillWorks, Inc.), No quotes from the materials contained herein may be used in any media without attribution to Community Television Foundation of South Florida, Inc. This transcript may not be copied or resold in any media.