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Economy, Stock Market in Jitter
Aired July 15, 2002 - 14:02 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.
KYRA PHILLIPS, CNN ANCHOR: We begin with a venture into bear country, and it's no place for the faint of heart. The bears, once again, are firmly in charge of the nation's stock markets, the bulls are in hiding, and even many long-term, diehard investors are in a tizzy.
Our guide this hour: CNN financial correspondent Myron Kandel.
Are you in a tizzy, Myron?
MYRON KANDEL, CNN FINANCIAL CORRESPONDENT: Well, Kyra, I'm trying to keep my calm, but theres no question; it's a bad day on Wall Street. And that follows a bad week last week. Some people were hoping that the market might pick up some steam this week, but it's just the opposite as we see in the bottom of our screen. The Dow Jones Industrial Average down sharply, the Nasdaq composite down the same. The Dow is down more than 15 percent so far this year. The Nasdaq is down more than double that, Kyra.
PHILLIPS: So, Myron, let's talk about this story, more about the stock market or about the economy?
KANDEL: Well, there really is a disconnect between Main Street USA and Wall Street USA. Actually, the economy is not in bad shape. It's in recovery mode. The recovery is slowing a bit from earlier this year but nonetheless, in relatively good shape. Interest rates are down, housing is up. So what's -- what's wrong? What's doing the harm? I think there's a crisis of confidence among American investors in corporate America. They keep hearing about all these scandals, all this corruption, all the accounting misdeeds, and I think that's undermined the confidence of investors in the stocks they might ordinarily be buying. And I think that's doing most of the harm.
PHILLIPS: What about the dollar weakness?
KANDEL: Well, as Rhonda Schaffler reported a little earlier, the dollar weakness is overhanging the market as well. But I don't that's the real trouble. Even President Bush, now today, his second talk within a week, has failed to reassure investors. In fact, as the president was speaking, the stock prices were going down all the more.
PHILLIPS: Myron Kandel. Thanks for your insight, Myron.
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