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CNN Live At Daybreak

America's New War: Stocks Markets Prepare to Open This Monday Morning

Aired September 24, 2001 - 08:45   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: Right now, fast forward to the opening bell of the markets today. That happens just about 45 minutes from now, and the man to do that for us is Andy Serwer of "Fortune" magazine. We have checking out that little futures bug in the bottom right-hand corner of your screen. Those numbers are looking better than they were time last week. Why?

ANDY SERWER, "FORTUNE" MAGAZINE: Well finally, some positive news, Paula. European markets are up very strongly, across the board, 2 to 3 percent even more. Some stocks way up. A snapback rally, as you mentioned. The Dow futures up 300 points. Influential analysts, Abby Joseph Cohen from Goldman Sachs upped her equity allotment, saying that clients should buy stocks. Stocks are undervalued right now, so I think people are really taking a look, and seeing that stocks are battered down. The question is, is it sustainable? I think we'll have a nice uptick at the open. I don't know if it is going to last.

ZAHN: You say you don't know if it is going to last, but traditionally, how much do stocks track what you have seen in the futures earlier in the day?

SERWER: They definitely will definitely open up stronger. If futures stay stronger the way they are now, we will definitely see a nice bounce at the open, but it's really hard to say whether it will sustain for more than half an hour.

ZAHN: I'll tell you, though, the longer you sit here, I'm handed more pieces of paper with more bad news. Federated Department Stores has bad news today to report. Can you fill us in on what are they going to say?

SERWER: Yes, Federated one of the largest retailers in country -- they own Macy's and Bloomingdale's -- they have announced this morning that their sales since the attack, are down 20 percent across the board, that's really pretty bad news, and they're saying same- store sales, which is stores opened more than a year, are also very weak right now, so you can see, rippling through economy, Paula, we're seeing continued weakness.

ZAHN: Talk again about the airline stocks, they will continue to take a beating? SERWER: Well, the airline stocks now are at an interesting juncture if you ask me. They are actually very strong in Europe. They have bounce back. They have been beaten down now. It's a very speculative time. You have government bailouts. I think they are just going to bounce around, not at all a sure thing that they will decline from here. In fact, they may go up.

ZAHN: All right, opening bell, just about 45 minutes from now. Are you ready to answer our viewers's questions?

SERWER: Absolutely.

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