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CNN Live At Daybreak
Nearly Two-Thirds of Firms Won't Give Holiday Bonus in 2003
Aired December 02, 2003 - 06:47 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.
CAROL COSTELLO, CNN ANCHOR: It's time for a little 'Business Buzz.' Don't spend your holiday bonus just yet, you might not be getting one this year. Happy holidays.
Stacey Tisdale reports live from the Nasdaq market site.
Why?
STACEY TISDALE, CNN FINANCIAL NEWS CORRESPONDENT: I'm much more interested to hear about the cars, what's happening with you. But I'll move on, we can talk about that a little bit later.
COSTELLO: Thank you.
TISDALE: But don't count on that holiday bonus. She's exactly right. Actually, two thirds of companies will not offer bonuses this year. These are the findings of a survey by a human resource firm Hewitt & Company (ph). And actually only a quarter of those that are going to give bonuses said that they are going to be higher than last year.
The reasons for the frugality, first, the tight job market means that firms don't have to shower employees to keep them. Second, companies are protecting their capital as the economy picks up. They learned the lessons in the late '90s from overspending. And third, U.S. firms are struggling to meet earnings targets without raising prices. So while we are enjoying low inflation, it's a struggle for many U.S. companies. But the good news that the economy continues to recover, there are going to be more bonuses next year.
Speaking of a recovery, the stock market was roaring yesterday. The markets at their highest level in 18 months. In fact, the Dow is just 101 points off that key 10,000 mark. Look at that, we gained 116 points, start today's session at 9899. The Nasdaq a 29.5 point gain, the S&P 500 up nearly 12.
But right now premarket indicators are indeed a little bit lower, so people are going to maybe taking a little breather after yesterday. But really focus on the auto industry today. The nation's big three are going to be releasing their November sales figures. They are expected to be strong, which could help stocks as well.
Speaking of cars, now let's go back to Carol.
COSTELLO: I'm never going to hear the end of this.
TISDALE: No. COSTELLO: Stacey Tisdale reporting live from the Nasdaq market site.
I'm in the market for a new car. I asked Chad who asked Rally for advice. That's what this whole thing is about.
TISDALE: I'm glad I could get you to spill it.
COSTELLO: You are a tough one -- Stacey.
TISDALE: OK.
COSTELLO: Thanks a lot, we'll talk to you later.
TISDALE: See you later.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
2003>
Aired December 2, 2003 - 06:47 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: It's time for a little 'Business Buzz.' Don't spend your holiday bonus just yet, you might not be getting one this year. Happy holidays.
Stacey Tisdale reports live from the Nasdaq market site.
Why?
STACEY TISDALE, CNN FINANCIAL NEWS CORRESPONDENT: I'm much more interested to hear about the cars, what's happening with you. But I'll move on, we can talk about that a little bit later.
COSTELLO: Thank you.
TISDALE: But don't count on that holiday bonus. She's exactly right. Actually, two thirds of companies will not offer bonuses this year. These are the findings of a survey by a human resource firm Hewitt & Company (ph). And actually only a quarter of those that are going to give bonuses said that they are going to be higher than last year.
The reasons for the frugality, first, the tight job market means that firms don't have to shower employees to keep them. Second, companies are protecting their capital as the economy picks up. They learned the lessons in the late '90s from overspending. And third, U.S. firms are struggling to meet earnings targets without raising prices. So while we are enjoying low inflation, it's a struggle for many U.S. companies. But the good news that the economy continues to recover, there are going to be more bonuses next year.
Speaking of a recovery, the stock market was roaring yesterday. The markets at their highest level in 18 months. In fact, the Dow is just 101 points off that key 10,000 mark. Look at that, we gained 116 points, start today's session at 9899. The Nasdaq a 29.5 point gain, the S&P 500 up nearly 12.
But right now premarket indicators are indeed a little bit lower, so people are going to maybe taking a little breather after yesterday. But really focus on the auto industry today. The nation's big three are going to be releasing their November sales figures. They are expected to be strong, which could help stocks as well.
Speaking of cars, now let's go back to Carol.
COSTELLO: I'm never going to hear the end of this.
TISDALE: No. COSTELLO: Stacey Tisdale reporting live from the Nasdaq market site.
I'm in the market for a new car. I asked Chad who asked Rally for advice. That's what this whole thing is about.
TISDALE: I'm glad I could get you to spill it.
COSTELLO: You are a tough one -- Stacey.
TISDALE: OK.
COSTELLO: Thanks a lot, we'll talk to you later.
TISDALE: See you later.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
2003>
