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Lou Dobbs Moneyline

More Cases of Anthrax Inhalation Discovered; Investors Shrug Off Anthrax Concerns

Aired October 22, 2001 - 18:00   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.
JAN HOPKINS, CNN ANCHOR: Good evening, everyone. I'm Jan Hopkins, in for Lou Dobbs -- more cases of anthrax inhalation, more tests for possible exposure, and two deaths that may be related. We'll have a live report from Washington, D.C.

We'll talk to a leading security expert on what's being done to protect American workers.

In Afghanistan, U.S. jets continue to pound Taliban and al Qaeda targets. Meanwhile, pressure mounts for a quick end to the campaign. We'll have a live report from the region.

On Wall Street, investors shrug off anthrax concerns, focusing instead on upbeat earnings news from corporate America.

And tonight, Deputy Treasury Secretary Kenneth Dam on the progress in tracking the Osama bin Laden money trail.

Now for the latest on the anthrax investigation: The surgeon general says it's highly probable two Washington, D.C. postal workers died as a result of inhalation anthrax.

Meanwhile, another Washington area postal worker has contracted inhaled anthrax, which is often deadly. All four worked in the same Washington facility. More than 2,000 D.C. postal employees are being tested for possible exposure to anthrax.

In New York City, Governor George Pataki's office reopened today. It was closed last Wednesday after anthrax spores were found in an office used by a security detail.

Rea Blakey joins us now from Washington, D.C. with the latest on the anthrax testing now under way -- Rea.

REA BLAKEY, CNN MEDICAL CORRESPONDENT: Jan, that testing continues. It's been going on since 9:00 Eastern time this morning.

There are a number employees who, even though they've been quite patient throughout the day, are also expressing a great deal of concern now that more information has become available after a news conference earlier today where it was, in fact, disclosed that there are now two postal employees who have died from something that could well be related to anthrax -- as the surgeon general said, very likely -- and then two other cases that are suspicious of people who are hospitalized.

Add to that the fact that the D.C. Public Health Commission is keeping its eye on nine other people who have reported recently some flu-like symptoms, and you can imagine, there's a great deal of concern at this point.

A little earlier, there was a news conference: Homeland Security Director Tom Ridge talking about the difficulty in confirming specifically what's going on.

(BEGIN VIDEO CLIP)

TOM RIDGE, DIRECTOR, OFFICE OF HOMELAND SECURITY: We are still undergoing final tests to determine absolutely if these two deaths were related to anthrax exposure. Their cause of death, to date, is unclear. But I'll tell you what is very clear: It is very clear that their symptoms are suspicious and their deaths are likely due to anthrax.

(END VIDEO CLIP)

BLAKEY: As you might imagine, those are not comforting words for the people who work at the Brentwood postal service office. In fact, some 2,200 employees who work in the back portion of that office have some sincere concerns tonight. Many of them were tested today, received their 10-day supply of Cipro. And then many of them reported back to the Brentwood station for work outside the building.

However, there was a challenge put pretty much to the U.S. Postal Service. And the response came from Debbie Willhite.

(BEGIN VIDEO CLIP)

DEBORAH WILLHITE, U.S. POSTAL SERVICE: We followed the advice of the CDC and other public health officials, who advised us that, until there was a evidence chain that indicated that there was anthrax present in the facility, that it was not necessary to test our workers.

(END VIDEO CLIP)

BLAKEY: Some of the workers, Jan, are indicating not only are they disappointed, but they feel that their lives were somehow deemed expendable compared to the very quick and aggressive action that took place on Capitol Hill when the letter was discovered at Senator Daschle's office -- Jan.

HOPKINS: Well, that's the real question. Why wasn't there more action in the post offices, where the letter obviously came from, right?

BLAKEY: According to the officials that we've heard from today, they're indicating that they moved as quickly as they could based on what they call pure science.

They traced that letter, in fact, from Senator Daschle's office back to a substation at P Street in Washington D.C. And prior to the P Street location, it had come through Brentwood. However, at the P Street location, apparently there was no indication that there was any hot spots for anthrax there. And so things sort of got muddled and slowed down then -- and, again, the U.S. public -- the U.S. Postal Service indicating that they were going on the word from the Centers for Disease Control.

And when the CDC said, "We don't feel there is an imminent need to test employees at this time," that's exactly what happened -- of course, now, a regretful decision for some employees.

HOPKINS: That's right. Rea Blakey, thanks very much -- from Washington.

Now for the latest in the war against terrorism: For a second straight day, U.S. planes blasted frontline Taliban positions near Kabul. Defense Secretary Donald Rumsfeld says the attacks are directed at wiping out Taliban and al Qaeda forces and assisting the opposition on the ground.

Meanwhile, the Pentagon is denying Taliban claims that two U.S. helicopters were shot down.

(BEGIN VIDEO CLIP)

DONALD RUMSFELD, U.S. SECRETARY OF DEFENSE: The Taliban have said that they have shot down at least two helicopters, which is false. They have not. They have indicated that they have captured some Americans, which is false. They have not.

(END VIDEO CLIP)

HOPKINS: The Taliban invited a CNN crew to videotape what it claims are helicopter parts. The crew was not shown the actual crash site. The Taliban says the area was full of mines. The Taliban also claims that American bombs struck a hospital in the western city of Herat and says the U.S. is deliberately targeting Afghan civilians. The Pentagon says it will investigate whether a hospital was indeed hit.

The first U.S. serviceman to die in the war against terrorism was buried at Arlington National Cemetery today. Air Force Master Sergeant Evander Andrews was killed on October 10 in a forklift accident in Qatar. The Pentagon confirmed two servicemen died over the weekend when their helicopter crashed in Pakistan.

The pressure is mounting on Pakistan's President Musharraf. Muslim extremists want him to end his support for the U.S. war on terrorism in Afghanistan.

John Vause is in Islamabad with more -- John.

JOHN VAUSE, CNN CORRESPONDENT: Well, Jan, pressure also coming from the Taliban here -- the Taliban ambassador holding a press conference earlier. He, in fact, accused the United States of conducting genocide. What we're seeing from the Taliban ambassador: The rhetoric is being ratcheting up as this air strike continues. When the air strikes first began, he said the White House was a bully. And then, a couple of days later, he said that the White House was a global terrorist. Now comes this accusation of genocide.

Also from the Taliban ambassador, he said that the air strikes are annoying the souls of those who were killed in New York by killing innocent men, women and children in Afghanistan. Still, the air strikes do continue on Afghanistan. We have reports of more air strikes on Kandahar, the Taliban stronghold. Sources in Kandahar report some loud explosions near the airport -- also in Kandahar, reports of two executions in Kandahar today.

What we're being told is that the people who were executed were responsible for looting, that they had been in fact been robbing and killing some citizens as they left Kandahar -- the public execution indeed a show of law and order by Mullah Omar, the Taliban leader, who earlier had gone on radio to ask for the return of any looted property. So it certainly seems as if the Taliban is trying to reassert some kind of law and order.

Now, the other issue which is coming up is the month of Ramadan. And there's been some talk, much talk about whether or not the U.S. air strikes should let up out of respect for the Muslim world -- a very religious month for Muslims. It's a time of contemplation, a time of fasting. It's basically when then they believe that the Koran was handed down from heaven.

Now, certainly, here in Pakistan, President Musharraf would certainly like to see some kind of letup in the U.S. air strikes.

(BEGIN VIDEO CLIP)

PERVEZ MUSHARRAF, PRESIDENT OF PAKISTAN: It should not have any effect on the campaign as such. But it may have some effects in the Muslim world. So one would hope and wish that this campaign comes to an end before the month of Ramadan. And one would hope for restraint during the month of Ramadan, because this would certainly have some negative effects in the Muslim world.

(END VIDEO CLIP)

VAUSE: Now, not only is President Musharraf appearing on "LARRY KING LIVE," he also has gone on television here in Pakistan. It was a taped interview with some local reporters, where he answered a range of questions. It was very much for domestic consumption.

He told the people here in Pakistan that they would start seeing benefits of being part of this international coalition against terror. He said aid is already coming into the country and that, in fact, there would be some substantial debt relief for the Pakistan economy -- very important issues here in Pakistan.

And he also reassured the people of Pakistan that the U.S. forces which are based here certainly would not be permanent -- Jan.

HOPKINS: So is there more support in Pakistan or a lot of opposition, still?

VAUSE: Well, it seems to be fairly steady, if you like. There's been much conjecture about, the longer these air strikes go on, the more problems it is for President Musharraf. He has certainly got a very tight lid at the situation at the moment. He's been detaining a number of these Islamic clerics. One of the leading hard-line clerics is actually being charged with sedition, a very serious charge.

The problem that he will be facing will be further down the track. Many people here talk about they understand what Musharraf has done, that they know that he's doing what is best for the country. And that's what he was trying to point out tonight, in the fact that this is good for Pakistan; this is good for economy; it's going to good for the average, the silent majority as he calls them.

But, of course, as we see more and more pictures coming out of Afghanistan of men, women and children who have been injured during these air strikes and indeed killed, obviously that does put increasing pressure on President Musharraf to try and hold the line.

HOPKINS: Thanks very much -- John Vause in Islamabad.

And as John mentioned, you can see General Musharraf's entire interview this evening on "LARRY KING LIVE." That's at 9:00 p.m. Eastern right here on CNN.

Still to come on MONEYLINE: tracking Osama bin Laden's money. We'll talk to Deputy Treasury Secretary Kenneth Dam on the difficulties and the progress of those endeavors.

And then, we'll tell you why the insurance industry wants more help from the U.S. government.

And as the number of anthrax cases grows, we'll talk to a leading security expert about what's being done to protect American workers.

(COMMERCIAL BREAK)

HOPKINS: More than 150 countries have agreed to crack down on terrorist money. But unlike the military campaign under way tonight, success in choking off terrorist funding is proving harder to calculate.

Earlier today, I spoke with Deputy Treasury Secretary Kenneth Dam and asked him where we stand in the financial war against terrorism.

(BEGIN VIDEOTAPE)

KENNETH DAM, DEPUTY TREASURY SECRETARY: We are implementing a process that we began a few weeks ago and we are going after the terrorists money.

HOPKINS: How much money have you managed to freeze? DAM: Well, let me put it this way: We now have some 144 countries who are actively enlisted in this war on terrorism -- war on financing of terrorism. And some 70 countries have already blocked accounts.

HOPKINS: So 70 countries have blocked accounts. Do you have any idea what that amounts to and how much al Qaeda needs every month?

DAM: I don't have an exact number for you. But 70 countries blocking accounts is unprecedented in the history of any kind of sanctions.

Al Qaeda needs quite a bit, more than some people have thought, because if you go back and see what these terrorists did, in the case of the World Trade Center, they flew all over the world, had all kinds of meetings, and it adds up, and we're after that money.

HOPKINS: Well we understand that a lot it, though, is in formal networks. And these kinds of things would be very difficult -- to freeze accounts because there might not be accounts?

DAM: I agree with you.

And that's one of the challenges here. And that's one the things we're going to moving forward on. This is unprecedented. Nobody has ever gone after those kinds of arrangements before.

HOPKINS: What support are you getting from Saudi Arabia? Is that country freezing accounts?

DAM: We believe that they are moving right ahead. We are -- have confidence that they'll be in focal operation. They've come to see me. I've called them on the phone. I think we are in active conversation with them.

HOPKINS: What problems are you having?

DAM: Generally, our biggest problem is simply here at home, in a way -- identifying the names of the terrorists and of the organization whose accounts we want blocked. That's a complicated process involving intelligence information and law enforcement information. We have to be careful that we don't push ahead in a way that disrupts our knowledge of what's going on internationally and our ability to actually arrest these people.

HOPKINS: Now, there are some anti-terrorism bills. The Senate has passed one. The House is considering one. But they do different things in terms of money laundering and freezing of accounts.

Is there politics involved at this point, or do you suspect that, you know, you're going to get some kind of help from the Congress?

DAM: Oh, I think we're going to get help from the Congress.

The only issue is whether it's one bill or two bills, because one house of Congress approached it one way and the other the other way. But that's a legislative question that I think will get resolved.

HOPKINS: Now, what about U.S. banks? They actually have been trying to protect the privacy of some of their clients in money laundering bills. Did that change after September 11? Are they cooperating?

DAM: Well, they're certainly cooperating, and very much so, on the terrorist financing. I don't have any qualms at all. In fact, we need to do even more to enlist their support and I'm sure it will be forthcoming.

HOPKINS: What about things that we've heard about, like the honey trade. Can you tell us anything about this?

DAM: Well it's simply -- there are certain enterprises in that part of the world, Middle East and on into South Asia, that have legitimate businesses, but actually are also in a second business which they conduct under the counter, which is funneling, financing to terrorists.

HOPKINS: Now, we also heard over the weekend that coupons, the kind we use in stores, may have been used to help finance the terrorists.

DAM: I'm sure there are all kinds of techniques like that. We can go into that at some length but we don't have the time.

But let me say, we're looking at all the methods of financing terrorism.

HOPKINS: Thanks very much, Kenneth Dam, the deputy secretary of the Treasury.

Thank you.

DAM: Thank you.

(END VIDEOTAPE)

HOPKINS: Coming up on MONEYLINE: the latest developments in America's war on terrorism.

We'll also tell you why the insurance industry is asking the federal government for some insurance of its own.

And the rising use of videophones -- keeping Americans and the world informed on developments in Afghanistan -- plus, a report on the increase in e-commerce since the terrorist attacks on September 11.

It's all ahead tonight on MONEYLINE.

(COMMERCIAL BREAK)

(INTERRUPTED FOR LIVE EVENT)

HOPKINS: Security is definitely getting tighter at many of the nation's companies. But is it enough to protect American workers?

Jules Kroll is chairman of Kroll Associates, one of the countries leading security firms and Jules Kroll joins us now.

Companies must be concerned about employees given what's going on with the anthrax scare. What are you hearing from companies?

JULES KROLL, CHMN & CEO, KROLL ASSOCIATES: Well, it's broader than just the anthrax issue. Ever since September 11, every major corporation that's at all responsible is reviewing their security plans, strategies and the crisis management plans, evacuation plans for all kind of potential issues.

HOPKINS: Is it important that all companies do this kind of thing, or are there certain companies that are more vulnerable?

KROLL: You do have to make categories. For example, those that are symbols of American corporate life, clearly the media has been targeted, Capitol Hill has been targeted, and there are certain industries that are going to be more a subject and more likely to be attacked than others. And people need to prioritize which those companies are.

HOPKINS: What kind of advice do you give to companies that maybe are at the forefront, media companies, or companies that are in the financial services area?

KROLL: We have many models around the world where security has been an issue for a lot longer. So you look to countries like the U.K. and France, Israel, where much more rigorous security policies, for example, egress, ingress and egress to buildings, need for real identification, people who are doing the checking who are extremely alert, who are well paid, well trained, all the basic issues that permit people to gain access.

And most importantly of all, companies need to know who's working at their companies. Not only full time employees but temporary employees because there are many companies that have been very casual about this in the past. And this will change.

HOPKINS: Do you think that American workers are basically safe?

KROLL: Yes. Yes. I think the greatest problem we have today is my own personal concerns about people having an overreaction. It's natural under these circumstances, so it's very important for companies to give their employees a sense of security, not just as public relations device but to explain to their employees what they're doing and to solicit from their employees their ideas given their environments. The employees know more about security vulnerabilities than people sitting up on the 50th floor.

HOPKINS: Now your company is also involved in tracking assets, the same kind of thing that the government is doing with Osama bin Laden. Do you have advice to the government about other things that they need to be looking at? KROLL: Well in our past experiences, looking at Osama bin Laden and people like him, your best information, quite often, comes from expatriate from those countries. They have their relationships, they have the contact. They know the culture, so the expatriate community, and our officials, the Bureau, the Agency, the Treasury they understand this, but getting it organized is a big job.

HOPKINS: Thanks very much, Jules Kroll of Kroll & Associates.

KROLL: You are welcome.

HOPKINS: Last month's terrorist attacks on the United States will cost insurance companies billions of dollars. They say they can handle it. But the industry wants some protection from future attacks, essentially, asking the government to insure the insurers. Tim O'Brien has the report. (BEGIN VIDEOTAPE)

TIM O'BRIEN, CNN CORRESPONDENT (voice-over): Property claims from last month's terrorism could exceed $40 billion.

ROBERT BENMOSCHE, CEO, METROPOLITAN LIFE: We are more than capable of sustaining the losses.

O'BRIEN: But the largely unregulated re-insurance companies who end up paying most of the tab are balking, discontinuing future coverage for terrorism when their contracts expire at the end of the year.

Retail insurance companies are heavily regulated by the state and cannot so easily exclude terrorism. And without re-insurance, they say they may have to stop writing some commercial insurance or charge exorbitant premiums. That threat last week prompted no less a champion of free markets than Alan Greenspan to endorse government re- insurance as a last resort.

ALAN GREENSPAN, FEDERAL RESERVE CHAIRMAN: I can conceive of situations where those premiums would be so large as to inhibit people from actually taking out that insurance.

O'BRIEN: The Bush Administration is proposing a three-year plan that would cap industry liability at about $16 billion next year, with slightly higher liability in the following two years. Expect a hot debate on the role of government.

JULIE ROCHMAN, AMERICAN INSURANCE ASSN.: In this particular environment, it is entirely appropriate and necessary that the government get involved, precisely because terrorist acts are (A) intentional, and (B) committed against the government. They're not fortuitous, naturally occurring events.

O'BRIEN: Rochman says the reluctance of insurance companies to write commercial insurance could further depress the economy. To some, that's a hard sell.

JOHN SAMPLES, CATO INSTITUTE: Bankers, builders and so on are in the business of making loans. They're in the business of building buildings. They'll find ways to adapt to this new environment after September 11, that's why we have markets.

(END VIDEOTAPE)

O'BRIEN: Insurance industry leaders bristle at the word "bailout." Without re-insurance they say they should be permitted to discontinue coverage for terrorism at any time. Senate insiders say some sort of compromise does seem likely, but it will only be temporary, and no one can accurately predict what it might cost anymore than one can predict terrorism itself -- Jan.

HOPKINS: Thanks, Tim O'Brien in Washington.

Coming up on MONEYLINE, we'll bring you the latest on the bombing against the Taliban in Afghanistan. Plus, an update on the anthrax scare, more cases surfacing in Washington. And the country's largest brokerage makes an aggressive move to downsize. We'll have that story.

(COMMERCIAL BREAK)

HOPKINS: Now for the latest developments in the war on terrorism. Two Washington-area postal workers have died from suspicious causes. Officials say the deaths are likely linked to anthrax. Two other postal workers who worked at the same facility are known to have inhaled anthrax. More than 2,000 postal workers in the capital area are being tested for possible anthrax exposure.

U.S. military has been striking frontline Taliban targets north of the capital of Kabul for a second straight day. And the Pentagon says Taliban claims of shooting down two U.S. helicopters and capturing some Americans are false.

Providing news coverage of the war against terrorism is proving to be difficult, due to the rugged Afghan terrain and Pentagon-imposed secrecy. But a British company's videophone technology is helping to fill in some of the blanks.

Steve Young reports.

(BEGIN VIDEOTAPE)

STEVE YOUNG, CNN CORRESPONDENT (voice-over); The videophone became a star when it gave CNN a world scoop. Shots of departing crew members from that American spy plane forced to land on China's Hainan Island last April. The gear was designed to put a correspondent on camera, indeed 7E-Communications, the British maker, calls it the talking head. But enterprising TV journalists have stretched the technology envelope, using the gizmo to broadcast general views from remote places like Afghanistan.

What you see isn't as smooth as regular TV pictures, but the talking head costs a fraction of the price and occupies a fraction of the space of big satellite gear, according to the U.S. distributor interviewed via videophone. GERRY GUTMAN, PRESIDENT, RICHTECH: Here, the whole thing is in a box not much bigger than a lunch box. And the satellite terminal, just a few years ago, would've been a steamer trunk worth of electronics. And here, it's a package that can fit in a briefcase.

YOUNG: It's the culmination of a vision nearly 40 years old, when AT&T showed a picture phone at the 1964 World's Fair. But Flushing Meadow, New York where the fair was held, is a walk in the park compared with Afghanistan's rugged terrain.

PETER DEARDOW, CEO, 7E-COMMUNICATIONS : I think we discovered in Afghanistan that we needed to have a little bit more cooling, as we were packing this box with more and more electronics. We also had to put up with a lot more dust than we have on previous expeditions.

YOUNG: Deardow is working on a peacetime version of the system, now mostly used to cover terrorist war.

(END VIDEOTAPE)

(on camera): He figures that he would help insurance assessors do quick damage estimates by installing smaller, less expensive videophones at auto repair shops -- Jan.

HOPKINS: Interesting idea and interesting way that it's working. How much do these things cost?

YOUNG: Can be yours for $8,000 for the phone, plus another $8,000 for the satellite. And if you want a real good transmission, about $26,000.

HOPKINS: Thanks, Steve Young.

Coming up on MONEYLINE, thousands of Merrill Lynch employees getting buyout offers. Plus, a look at today's trading session and how investors shrugged off any anxiety over anthrax. Our next guest says as more jobs hit main street, the longer it will take for our economy to recover.

ANNOUNCER: Next, Jan is joined by Lakshman Achuthan of the Economic Cycle Research Institute.

(COMMERCIAL BREAK)

HOPKINS: It was a winning session on Wall Street. Stocks soaring on the latest round of better than expected quarterly results. On the big board, 46 stocks reaching new 52-week highs, 54 dropping to new lows.

On the Nasdaq, 52 stocks hitting new highs, 26 falling to new lows.

Dow's adding to Friday's advance with a triple digit gain. The Blue Chip Index gaining 172 points. Advancing issues beating out declining issues by a 3 to 2 margin. Nasdaq gaining 36 points, more than 2 percent. Advancers beating out decliners by a 4 to 3 margin on the Nasdaq. Stocks rallied, despite some bleak earnings reports, including American Express. The company missing estimates. Profits falling 60 percent compared to last year, as people cut back on travel and avoided shops and restaurants in September.

SBC Communications also missing estimates. Net income falling 31 percent. The phone company also pessimistic about earnings for next year. SBC cutting several thousand jobs and slashing costs.

3M's earnings also hurt by a sluggish economy. The maker of Post-it notes and Scotch tape beat lowered estimates. But 3M guiding earnings lower for the current quarter and saying it would continue to cut costs. Investors taking heart in that cost cutting initiative. 3M up more than $5. Amex up $1 and SBC fell 5 percent.

After the bell, Vitesse Semiconductor posted a loss in line with estimates. Sales falling 71 percent. And in after hours trading, Vitesse up 32 cents to $9.88 a share.

For more on today's rally, let's go to our correspondents following today's trading action. Allan Chernoff is at the New York Stock Exchange and Greg Clarkin's at the Nasdaq marketsite. Let's begin with Allan.

ALLAN CHERNOFF, CNN CORRESPONDENT: Jan, stocks rising in the face of bad news, very encouraging to the bulls. One more example, USX, the big steelmaker. The company's loss of 22 cents a share wasn't as deep as Wall Street's consensus, but the outlook that the company gave was downright miserable. Chairman Tom Usher saying the business environment "remains extremely difficult," adding that oversupply continues to depress prices.

The stock price been depressed as well. Yet, in spite of Usher's comments, the shares popped up $1.31 to $14.74. The majority of economically sensitive companies, so-called deep cyclicals, are facing tough times as signaled by today's leading economic indicators. Even so, the deep cyclicals had a strong day.

Manufacturers like Illinois Toolworks, Arthur Hannison, Textron and Tyco. One more encouraging items for the bulls, financials, always a key sector, enjoyed gains. Even banking companies that have been reporting earnings declines recently, including Fleet Boston, J.P. Morgan Chase, Citigroup and Bank of America. There are many Wall Street veterans who argue you cannot have a sustained rally without the financials participating -- Jan.

HOPKINS: Thanks, Allan. Allan Chernoff at the New York Stock Exchange.

A solid advance on the Nasdaq as well. Greg Clarkin is at the Nasdaq marketsite. He has those details -- Greg.

GREG CLARKIN, CNN CORRESPONDENT: And Jan, really saw a continuation today of the pattern that we saw the middle of last week to the last part of last week. And that was what the market's ability to shake off the anthrax reports, as well as the earnings report. And stocks, the technology stocks rising nicely today, up about 37 points, about a 2 percent gain for the Nasdaq.

It closes above 1700 for the first time since last Tuesday. And it also closes at session highs. So it ends today with a lot of momentum. And the chips were very strong today. We saw Intel and Rambus moving higher. Rambus has signed a licensing deal at Intel. And that gave a lift to both of those shares.

Novellus stock gaining better than $2.00. Altera was also up. Overall, the semiconductor equipment makers had a real nice day today. Now other movers on the Nasdaq today included shares of Amazon, Yahoo! and eBay. We did see the Internets fairly strong.

Amazon, keep in mind, will be out with their earnings after the close of trading tomorrow. That stock rose ahead of that.

And then biotechnology shares continue to make nice gains as witnessed by Immunex. That was up $1.30 at $23.84.

So at this point, traders we spoke with are fairly encouraged by the action that they're seeing in the Nasdaq. It does appear to be very resilient in the face of not only the earnings reports, which at this point expectations have been lowered so dramatically, that there doesn't appear to be any surprises that are catching people, as well as the market's ability to shake up increasing anthrax reports.

Jan, back to you.

HOPKINS: Thanks, Greg Clarkin at the Nasdaq marketsite.

As the holiday season approaches, many retailers are predicting disappointing sales. But online retailers are feeling fairly positive. They claim the war against terrorism and the recent anthrax scares have most consumers staying closer to home and logging onto the Internet. Fred Katayama has the story.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Good afternoon, Bluefly.

FRED KATAYAMA, CNN CORRESPONDENT (voice-over): The day of the terrorist attacks, orders for name brand apparel plummeted at this off-price, online retailer. But sales at Bluefly.com bounced right back. And despite consumer concern over the war and now anthrax, the company is bullish its sales will not sour in what's traditionally the busiest quarter of the year.

KEN SEIFF, CEO, BLUEFLY.COM: We expect good things from the holiday. This weekend, we did as much business as any weekend since Christmas of last year.

KATAYAMA: And toysrus.com says early signs suggest it'll do fairly well this season. Consumers are letting their mice do the shopping. In a week that saw anthrax uncovered in New York, sales over the Internet rose 51 percent over the same period last year. What's more, the research firm BizRate.com reports sales notched double digit percentage gains the past three weeks.

And so, Forrester Research predicts holiday sales online will grow 10 percent this year to $11 billion. That's down sharply from the 100 percent increase last holiday season, but it's still growth in a slumping economy. Helping fuel it, cocooning web users concerned about safety may shop from home.

CARRIE JOHNSON, FORRESTER RESEARCH: As consumers travel less this holiday season, that may translate into more online sales, because consumers will be at home, not visiting their relatives, not visiting their friends. And they'll need to send those people gifts.

KATAYAMA: Some skeptics on Wall Street say online traffic may rise, but consumers will spend less because of the weak economy. But that forecast may not fly at Bluefly. Its customers have spent more on average in the past four weeks than they have for the quarter.

Fred Katayama, CNN Financial News, New York.

(END VIDEOTAPE)

HOPKINS: Ford Motor Company today holding a mammoth bond sale. It may be tough times for automakers, but Ford having an easy time selling this deal to investors.

Kathleen Hays is here to explain why. Well, part of it is, great yields, right?

KATHLEEN HAYS, CNN CORRESPONDENT: Absolutely. But just think of the numbers, Jan.

$9.4 billion worth of bonds. When Ford started talking about this deal, they were thinking in terms of $3 billion. It's the sixth largest corporate bond deal ever. And in fact, it's the largest since WorldCom sold $11.9 billion worth of bonds in May, but they did it the old fashioned way. Again, a good price, a good yield.

Let's take a look. There were five tranches. Let's look at three key tranches. $3 billion of five year notes, a 6.62 percent yield. That's 2.8 percentage points over comparable Treasuries. $2.5 billion dollars of 10 year notes sold at 7.3 percent. That's 2.7 percentage points over Treasuries. $1.5 billion of 30-year bonds sold at 8.02 percent. That's pretty pricey.

One more interesting aspect of this deal is just a week ago, Standard & Poor's downgraded Ford Motor and Ford Motor Credit by a notch to BBB. Basically, from high investment grade to mid-investment grade. Then last Thursday, Moody's downgraded Ford Motor a little bit, but it held. It confirmed the Ford Motor credit rating. And people are saying that kind of reassured investors that Ford is going to get through tough times in time and help create interest in the deal.

The question now for you, as an individual investor, should you buy them? Well, the experts I talked to today said first of all, if you don't own any auto bonds, if your underweight, that's where you start. But then you look at the attractive spreads over Treasuries, stock market's still shaky, kind of uncertain.

Experts say if you're going to look at this deal, probably look at the five year sector. That's where you do best. The risk, Jan, that the economic recovery delays, a lot of people are saying spring, if that is dragged out, the stock market gets hit. Maybe corporate bonds get hit, too.

Another interesting thing. You know that Ford earlier this year sold a big deal at 7.3 percent -- excuse me 7.37. So they actually got this deal done a little bit cheaper. So it's pretty good for Ford. Other companies, of course, have sold their paper even cheaper than that, but at least the people are saying liquidity is out there. You can get the credit if you need it. That's very important for a company like Ford in tough times like these.

HOPKINS: Thanks, Kathleen Hays.

My next guest sees consumer confidence as the key to the economic recovery. And with corporate layoffs mounting, he doesn't see any recovery any time soon. Lakshman Achuthan, a MONEYLINE regular and economist for the Economic Cycle Research Institute joins me now.

So Kathleen was saying that these people are buying bonds based on the fact that the economy should recover in the spring. Do you see that or is that optimistic?

LAKSHMAN ACHUTHAN, ECONOMIC CYCLE RESEARCH INSTITUTE: That's somewhat optimistic. The leading indicators of recovery are not so clear that there's a recovery this spring.

HOPKINS: In fact, we've gotten leading economic indicators today. And they were down quite a lot.

ACHUTHAN: Yes, those were down. Those -- that's a reading through the September numbers. The more recent readings have continued to plunge. We look at weekly leading economic indicators.

But one thing that Kathleen was pointing out was that it's a very rich, you're getting a high yield in corporate bonds. So the spread between the corporate bond yield and the Treasury bond yield is a good indicator in and of itself. When that widens out, it says that the market, the bond market is telling you, that they're not sure the recovery's imminent. They're a little sketchy on it. And...

HOPKINS: It's the risk.

ACHUTHAN: It's the risk that they're measuring. Right, there's a bit of risk.

And you know, Ford is not a fly by night company. That'll be around. So it's probably a good risk. The key here is confidence. There's a lot of pent-up stimulus. How do you get the consumers to spend that? They have to have confidence going forward.

And one thing that they're fighting against is the layoffs. They're getting these job layoffs all the time. And that is making people take the stimulus that's been introduced into the economy, put it in their pocket or pay down debt, as opposed to spending it. And until that shifts, it'll be difficult to get a good cyclical recovery going.

HOPKINS: But it's interesting, the stock market had a very good day today and had a very good day on Friday. What impact does that have on consumer confidence?

ACHUTHAN: Well, hopefully a positive one. But until it spreads outside of investor confidence to the consumer, and to some other more real economy leading indicators, we can't call a recovery. Remember, back in the second quarter, the stock market did much the same thing. And it was a bit premature.

HOPKINS: Now what about all of the continuing anthrax scares? That affects consumer confidence, doesn't it?

ACHUTHAN: Right. So you're already worried about the job market being a little shaky. And then you have new uncertainty introduced on top. So it's making a bad situation worse. So that -- we need to see that stabilize. We'd love to see some of this uncertainty be taken away as we go forward.

HOPKINS: Lakshman Achuthan, thanks for joining us.

ACHUTHAN: Thank you.

HOPKINS: And coming up on MONEYLINE, Merrill Lynch takes a creative approach to job cuts. And the Concorde crosses the Atlantic for the first time in more than a year. Those stories and more when MONEYLINE continues.

(COMMERCIAL BREAK)

HOPKINS: Wall Street firms have been under pressure much of the year. And some didn't wait long after the September 11 attacks to announce layoffs. Merrill Lynch is moving even more aggressively. But it's doing so creatively, by offering buyouts to all of its employees. Hillary Lane has the story.

(BEGIN VIDEOTAPE)

HILLARY LANE, CNN CORRESPONDENT (voice-over): At a time of national unity and sensitivity, this is a kinder, gentler way. But there's no hiding the corporate ax at work. Merrill Lynch today offering everyone of its 65,900 employees the chance to resign with a year's salary, plus about 40 percent of this year's expected bonus if workers accept by early November. A manager must approve the volunteers.

GARY GOLDSTEIN, PRESIDENT, THE WHITNEY GROUP: I think the firm is looking to weed out those people who really are really not certain about their future, thinking about doing other things, may consider other alternatives, as well as giving those people who are very likely to be cut, who kind of know who they are, an opportunity to do it more gracefully than might otherwise appear.

LANE: On Thursday, Merrill reported a 52 percent drop in third quarter earnings, saying it would lay off thousands. Only now is it clear how immediate those cuts will be.

HENRY MCVEY, MORGAN STANLEY: What the new management team really is trying to do, is say hey look, the 1990's were an amazing period of prosperity at Merrill Lynch and for Wall Street in general. Let's use the coming years to really focus on efficiencies and reallocate resources towards businesses, that we think can share the best growth.

LANE: It's a time of reassessment for most of Wall Street. J.P. Morgan, CS First Boston, Citigroup, Bear Stearns, and Goldman Sachs are among those cutting staff. Charles Schwab took volunteers. But Merrill's layoffs are likely to be the deepest, by some estimates approaching 20 percent of the work force.

(END VIDEOTAPE)

(on camera): Now the firm says it has not set a definite goal for how many jobs it actually wants to cut. Analysts say it's a safe bet that if Merrill isn't satisfied with the number of volunteers, it will proceed to more traditional "designated" job cutting -- Jan.

HOPKINS: So volunteer or be cut, perhaps.

LANE: For some people, but a manager has to approve it. So those who are very valuable, the manager's going to say no.

HOPKINS: Hillary Lane, thanks.

In corporate news tonight, the Concorde is back in the air. The supersonic jet today making its first transatlantic flight since last July. Air France and British Airways had suspended all Concorde flights since one of the jets crashed on takeoff, killing 104 people. Today's flight, carrying only airline personnel, went smoothly. Regular service starts next month.

Johnson & Johnson pulling the plug on testing an arthritis drug for treating heart failure. In a study, some patients who took the drug, Remicade, became even sicker.

U.S. Steelworkers are hailing a vote by the International Trade Commission. That vote, another step toward import protection, a move American steelmakers say would help them get back on their feet. U.S. steelmakers say that cheap imports unfairly undercut their business.

"WOLF BLITZER REPORTS" begins in a few minutes. And for a preview, we go to Washington and Wolf.

WOLF BLITZER, "WOLF BLITZER REPORTS": Thank you very much, Jan.

We'll have extensive coverage of the spread of anthrax here in the nation's capital. We'll get to an interview that I've just done with the mayor of Washington, D.C., Anthony Williams. We'll also have extensive coverage of what's happening on the military front in Afghanistan. That and much more, next -- Jan.

HOPKINS: Thanks, Wolf.

And coming up next on MONEYLINE, your thoughts on the media's coverage of anthrax and a look at what's coming up tomorrow.

(COMMERCIAL BREAK)

HOPKINS: Tomorrow, the House and Senate will reopen after closing last week because of the anthrax scare, but police say that office buildings in the Capitol complex will remain closed.

Fed Chairman Alan Greenspan speaks to the American Bankers Association on the financial industry's response to the September 11 attacks. And quarterly results are expected from Dow components AT&T, ExxonMobil, as well as Lucent Technologies, Compaq Computer, Bristol Myers and Amazon.com lead the list.

Now let's take a look at some of your e-mail. Most of it concerned about anthrax.

Nick Gonzalez in Tennessee writes, "The media is playing right into the hands of terrorists by giving the issue constant attention."

Sherry Dixon in Houston, Texas agrees. She says, "How much can you say about anthrax? Enough, move on. Go back to reporting the news."

But Delores Young in Kentucky says anthrax is the news. She writes, "The scariest thing for me is to think something is going on and I'm not being told about it. People shouldn't blame the media for all the bad news."

And Sally Harren has a message for what she calls, "all the complainers about the news media." She writes, "I'm glad they're keeping us updated on everything. Being aware," she says, "can help you prepare."

And now a follow-up to Friday's report on Cipro. A lot of you are asking why a month's worth of Bayer's anthrax fighting drug costs about $350 in the U.S., while generic suppliers in India, for example, supply the same quantity for about $10.

One viewer, Dr. Charles Simonda says the answer is simple. He explains, "Bayer paid for the research. Bayer paid for the clinical trials. Bayer paid for the marketing. That investment is substantial and Bayer is entitled to return on it. Without Bayer's investment, we wouldn't have Cipro."

Thanks again for all your comments. Please e-mail us. Our address is moneyline@cnn.com. That's MONEYLINE for this Monday evening. Thanks for joining us. I'm Jan Hopkins sitting in for Lou Dobbs. Good night from New York. "WOLF BLITZER REPORTS" begins right now.

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