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CNN Live At Daybreak

America Recovers: Markets React to Bush Adviser Predicting Recession

Aired October 18, 2001 - 07:38   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: Now back to some of the latest business news. The "R" word, the dreaded "R" word has surfaced again. President Bush's top economic adviser Lawrence Lindsey said yesterday the September 11 attacks will push the U.S. economy into recession.

David Haffenreffer is here to tell us how stock markets react to that kind of talk and other news.

Well, David, now come on, we've had economists been saying this for months that we've been in a recession -- not a classic definition of a recession, but so now it's official?

DAVID HAFFENREFFER, CNN FINANCIAL NEWS CORRESPONDENT: Yes, well not much of a surprise when we hear the "R" word. We've been hearing it from economists for months now so -- but those comments from Lawrence Lindsey yesterday only did help to pour some salt on Wall Street's wounds. Before his comments hit the wire, stocks were already in a bit of a retreat. Now remember, there's an old adage down on Wall Street, the market does not like uncertainty. News of more anthrax attacks helped to send the Nasdaq to its worst decline since September 17, which was, of course, the first day of trading after the Trade Center attacks.

Futures aren't telling us too much right now about today's trading, maybe a slightly lower open or a mixed picture for us today when trading gets underway, but some key earnings reports could change all that this morning. Within the last half hour, better-than- expected numbers out from Coca-Cola, and we've got a long list of other companies out with earnings reports today, including Microsoft after the closing bell.

That is a quick check on business this morning.

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