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American Morning
Minding Your Business: Are the Bulls Back for Good?
Aired September 19, 2003 - 08:52 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.
SOLEDAD O'BRIEN, CNN ANCHOR: Well what a difference a year makes. The market is on a roll, but can it last?
Andy Serwer is "Minding Your Business" this morning.
Hey, good morning.
ANDY SERWER, "FORTUNE" MAGAZINE: Good morning, again, Soledad.
Yes, boy, real strength on Wall Street making a lot of people happy when they're getting those 401(k) statements.
Let's take a look at yesterday, first off. We've got a bunch of numbers to run through here, but it's good stuff, people.
BILL HEMMER, CNN ANCHOR: That's what I'm...
SERWER: So don't turn away, OK. Now, this is up 113 points on the Dow. The -- see, look, we're over 9,600 on the Dow for the first time in 15 months, over 1,900 on the Nasdaq for the first time in a year and a half. The second 100-point day up in three on the Dow, so that is a lot of good stuff here.
Now, people are saying but what about the job market? No jobs, the job market is weak. Listen, it would be very, very interesting if we looked back two years from now and this all runs true to form. This is what happens very often in economic recoveries. The market goes up first, the job market recovers later. And you can sort of understand that because Wall Street traders want to get in before they get going. And employers, very cautious, so they hire people later, once they're really sure that the recovery is on track.
HEMMER: About five years ago, the hottest thing on Wall Street was the IPO.
SERWER: Yes.
HEMMER: We were seeing stocks debut on one day and increasing their market share 200 percent in some cases in one day of trading.
SERWER: Yes.
HEMMER: Are those days back?
SERWER: Well IPOs are back, sort of, Bill. Let's talk about this a little bit. First of all, the IPO business is the weakest right now since 1979. We're only going to be seeing 26 IPOs this year. I mean that is absolutely nothing. Can't feel too sorry for those folks down on Wall Street, they do pretty well. So they're not cranking them out. But what's going on right now is the IPOs that are working are actually doing OK.
We're talking about one, let's think of Red Envelope, which is supposed to come out. This is pricey gifts.
HEMMER: Yes.
SERWER: Soledad, maybe Bill will be picking something up for you there later on.
HEMMER: For her birthday.
SERWER: Yes, for her birthday.
O'BRIEN: Fill you in on that (ph).
HEMMER: Happy birthday.
SERWER: Converse was supposed to go public, you know remember -- there's Red Envelope right there. You remember Converse? You wore Chuck Taylors I bet. I bet you did, Soledad.
HEMMER: Fourth grade.
O'BRIEN: Had them really. Yes, sure.
SERWER: Chucks, they were going to go public, they got bought by Nike.
Now here's a couple of IPOs, though, that have come out over the past year. And it just shows that there really is some strength here. Look at these, these are kind of some familiar names. Dick's Sporting Goods, 100 sports stores in the South and the East and the Midwest. Look at that. I mean that is up 196 percent. That's super.
HEMMER: That's a good year.
SERWER: Petco, no that's not the sock puppet. Those are the other guys. But it's a pet store. They're up very nicely.
And Aeropostale. Is that how you pronounce it?
O'BRIEN: I think so.
SERWER: Aeropostale.
HEMMER: Exactly right, very good, Aeropostale.
SERWER: It's teenage clothes. They have done very well, also.
Just another note here about the market. The Dow is now up 16 percent for the year, 33 percent since last October. Nasdaq up 43 percent for the year, 71 percent since October and...
HEMMER: Do you think those numbers are legitimate right now or do you think it's...
SERWER: I think they're legit. But you know you've got to wonder if we're getting a little bit ahead of ourselves.
HEMMER: That's the question.
SERWER: I would not expect things to really go gangbusters the rest of the year. But if we ended the year right now, what a wonderful year it would be.
HEMMER: Yes, that's right.
O'BRIEN: I haven't heard that for a long time. That's nice to hear.
SERWER: It sure is.
HEMMER: Yes.
O'BRIEN: Andy Serwer, thank you very much.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired September 19, 2003 - 08:52 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: Well what a difference a year makes. The market is on a roll, but can it last?
Andy Serwer is "Minding Your Business" this morning.
Hey, good morning.
ANDY SERWER, "FORTUNE" MAGAZINE: Good morning, again, Soledad.
Yes, boy, real strength on Wall Street making a lot of people happy when they're getting those 401(k) statements.
Let's take a look at yesterday, first off. We've got a bunch of numbers to run through here, but it's good stuff, people.
BILL HEMMER, CNN ANCHOR: That's what I'm...
SERWER: So don't turn away, OK. Now, this is up 113 points on the Dow. The -- see, look, we're over 9,600 on the Dow for the first time in 15 months, over 1,900 on the Nasdaq for the first time in a year and a half. The second 100-point day up in three on the Dow, so that is a lot of good stuff here.
Now, people are saying but what about the job market? No jobs, the job market is weak. Listen, it would be very, very interesting if we looked back two years from now and this all runs true to form. This is what happens very often in economic recoveries. The market goes up first, the job market recovers later. And you can sort of understand that because Wall Street traders want to get in before they get going. And employers, very cautious, so they hire people later, once they're really sure that the recovery is on track.
HEMMER: About five years ago, the hottest thing on Wall Street was the IPO.
SERWER: Yes.
HEMMER: We were seeing stocks debut on one day and increasing their market share 200 percent in some cases in one day of trading.
SERWER: Yes.
HEMMER: Are those days back?
SERWER: Well IPOs are back, sort of, Bill. Let's talk about this a little bit. First of all, the IPO business is the weakest right now since 1979. We're only going to be seeing 26 IPOs this year. I mean that is absolutely nothing. Can't feel too sorry for those folks down on Wall Street, they do pretty well. So they're not cranking them out. But what's going on right now is the IPOs that are working are actually doing OK.
We're talking about one, let's think of Red Envelope, which is supposed to come out. This is pricey gifts.
HEMMER: Yes.
SERWER: Soledad, maybe Bill will be picking something up for you there later on.
HEMMER: For her birthday.
SERWER: Yes, for her birthday.
O'BRIEN: Fill you in on that (ph).
HEMMER: Happy birthday.
SERWER: Converse was supposed to go public, you know remember -- there's Red Envelope right there. You remember Converse? You wore Chuck Taylors I bet. I bet you did, Soledad.
HEMMER: Fourth grade.
O'BRIEN: Had them really. Yes, sure.
SERWER: Chucks, they were going to go public, they got bought by Nike.
Now here's a couple of IPOs, though, that have come out over the past year. And it just shows that there really is some strength here. Look at these, these are kind of some familiar names. Dick's Sporting Goods, 100 sports stores in the South and the East and the Midwest. Look at that. I mean that is up 196 percent. That's super.
HEMMER: That's a good year.
SERWER: Petco, no that's not the sock puppet. Those are the other guys. But it's a pet store. They're up very nicely.
And Aeropostale. Is that how you pronounce it?
O'BRIEN: I think so.
SERWER: Aeropostale.
HEMMER: Exactly right, very good, Aeropostale.
SERWER: It's teenage clothes. They have done very well, also.
Just another note here about the market. The Dow is now up 16 percent for the year, 33 percent since last October. Nasdaq up 43 percent for the year, 71 percent since October and...
HEMMER: Do you think those numbers are legitimate right now or do you think it's...
SERWER: I think they're legit. But you know you've got to wonder if we're getting a little bit ahead of ourselves.
HEMMER: That's the question.
SERWER: I would not expect things to really go gangbusters the rest of the year. But if we ended the year right now, what a wonderful year it would be.
HEMMER: Yes, that's right.
O'BRIEN: I haven't heard that for a long time. That's nice to hear.
SERWER: It sure is.
HEMMER: Yes.
O'BRIEN: Andy Serwer, thank you very much.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
