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American Morning

America Recovers: Market Gains Ground Yesterday

Aired October 03, 2001 - 09:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
PAULA ZAHN, CNN ANCHOR: Joining me right now is Andy Serwer of "Fortune" magazine, who is a little bit of egg on his face this morning. We had several conversations yesterday, and you thought the markets were going to go down.

What happened, Andy? Explain yourself.

ANDY SERWER, "FORTUNE" MAGAZINE: First of all, I am eating some crow for breakfast, no question about that. I did think the market would go down, because, Paula, I thought that everyone had anticipated the rate cut so much that it was already priced in the market, was not a surprise.

But the market did go up for two reasons. One, the Fed said it stood ready to cut rates again, a very positive sign. Also, we had some positive comments at companies like Boeing and Wal-Mart. That helped shore the market up some 113 points, almost to 9,000, which is nice to see. The Nasdaq was up 12 to the Columbus mark 1492, as they say on Wall Street.

Overseas, though, we've got some tough sledding. Japan was down about percent. Europe was down 1 or 2 percent. We've got all kinds of negative news coming from companies today. Nortel Networks.

ZAHN: Ford.

SERWER: Ford last night. Eli Lily warning that sales of Prozac are slipping.

ZAHN: That's actually kind of surprising given the environment we're living in right now. That one doesn't make any sense.

Beef sales down 20 percent doesn't make any sense to me either, but...

SERWER: Tiffany actually said that things are not looking so hot for their quarter. Greyhound, by the way, is owned by a Canadian company called Laid Law (ph), which trades thinly, just in case you want to watch that one tonight.

ZAHN: What are we going to see happen today? Even though you were wrong yesterday. I don't know how much to trust you anymore.

SERWER: Well, it's a market, and I think things will be a little weak today, given what we've seen, and also, you know, the bus crash, that kind of think weighs on the psychology of the market just like it weighs on the psychology of the nation.

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