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CNN Live At Daybreak

Pull Back Possible After Yesterday's Surge on Wall Street

Aired November 07, 2001 - 06:13   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.
DARYN KAGAN, CNN ANCHOR: First, though, we're going to go to David Haffenreffer in New York for a look at business -- sorry to keep bringing this Yankee theme and the fact that they did not win the World Series, or their fourth World Series, as we go to you.

DAVID HAFFENREFFER, CNN FINANCIAL NEWS CORRESPONDENT: Hey

(CROSSTALK)

KAGAN: Sorry about that.

HAFFENREFFER: Aren't you an Arizona native?

KAGAN: No, but I did live there for five-and-a-half years before I moved here to Atlanta, so I do claim the Diamondbacks.

HAFFENREFFER: All right.

KAGAN: Full disclosure.

HAFFENREFFER: Well, at this hour, Daryn, the stock index futures are suggesting -- suggesting that we could see a bit of a pull back today, following the strong gains that we have seen over the past two sessions. Yesterday's half percentage point interest rate cut by the Federal Reserve sent stocks surging. The Dow industrials climbed 150 points. The Nasdaq jumped more than 2 percent.

In its closely watched statement, the Federal Reserve said it still sees weakness, not inflation, as the main threat to the U.S. economy. That is a sign that the Central Bank is ready to cut interest rates again, and most economists do expect a quarter percentage point rate cut at the Fed's December meeting.

At 8:30 a.m. Eastern Time this morning, we'll get an economic report that always grabs Fed Chairman Alan Greenspan's attention. It is third quarter productivity numbers. They are expected to show a gain of 1.8 percent. That's compared to a gain of 2.1 percent in the second quarter.

We'll also be watching shares of General Motors today. The "Wall Street Journal" reports the automaker's North American unit expects to turn a profit next year. It will do that by cutting up to $1 billion in spending on parts, and reducing other costs, such as contract workers. That is a quick look at business this morning.

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