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American Morning
America's New War: America's Spirit Shown with Opening Bell
Aired September 17, 2001 - 09:22 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 ZAUN, CNN ANCHOR: Here we are, eight minutes away from the opening bell.
You, Lou, have described the amount of pressure these traders are under. But there's a tremendous amount of pent-up raw emotion there, too, about what kind of toll this tragedy has taken on this community. Tell us about that.
LOU DOBBS, CNN CORRESPONDENT: Paula, this -- the emotion here is rising dramatically. Everybody is moving into position, and it's going to be very difficult.
Dick Grasso, the chairman of the New York Exchange, if you can hear me, are -- is addressing these floor traders and specialist, joined by Senator Hillary Clinton, Senator Charles Schumer, Governor George Pataki, Representatives of the New York Police Department, the New York Fire Department and Emergency Services. A very emotional reception as these traders welcome them with a outroarious (ph) ovation as they assume the balcony.
(APPLAUSE)
ZAUN: Lou, we're going to stay with the sound for a moment or two to get people a sense of appreciation of the show of solidarity here, because I don't know if we are going to be able to hear you.
DOBBS: Paula...
ZAUN: You can jump in here whenever you think you're not going to be drowned out.
DOBBS: OK, Paula, if you can hear me, these traders are getting ready to do business, but the -- a very defiant mood.
If I can, just let me give you the setting for what is going to happen here. At 9:30, instead of simply the opening bell, the New York Exchange will observe two minutes of silence, two minutes of silence, and then Major Rosanne Scrignoli (ph) of the United States Marine Corps will sing "God Bless America" before trading actually opens at 9:33.
If we can get the cameras to pan, and I would appreciate it, if you could pan over to the balcony where Dick Grasso is addressing the exchange and introducing those people who will help to open the bell. There we are.
(APPLAUSE)
The -- now, Dick Grasso, who has done a remarkable job here of leading these people and leading the effort to restore the New York Exchange to...
RICHARD GRASSO, CHAIRMAN, NEW YORK STOCK EXCHANGE: ... criminals, who inflicted this heinous crime on America and all Americans, that they have lost. Our nation has come back together as we have in times past. Whether it be war or economic challenge, we are one country today committed, unified in the pursuit to find and punish and obliterate those who committed that horrible act against this great nation.
(APPLAUSE)
GRASSO: I want to thank so many people, so many agencies. This resumption of trading...
ZAUN: And we want to welcome our CNNfn viewers now, as we join the CNN coverage of Dick Grasso addressing his traders with the defiant talk about those who are responsible for these terrorist attacks.
GRASSO: ... coming to New York and saying he hears, he experiences the pain, and those who took those buildings down will hear from us soon.
(APPLAUSE)
GRASSO: Today we are graced that we will, at our tradition at 9:30, pause to reflect for two minutes on those whom we have lost, on those who are still missing and God hope still alive, and certainly for all who were killed and injured in the Pentagon, in Pennsylvania, those wonderful people on the planes. This a moment of reflection. So at 9:30 we will single stroke and pause for two minutes.
We will then be led in "God Bless America" by Major Rosanne Scrignoli of the United States Marine Corps.
After which our heroes representing the fabulous men and women who are crawling through the rubble as we speak seeking survivors, representatives of the New York City Fire Department, police department, the emergency services and rescue teams and the Port Authority police, our heroes who make today's resumption possible will ring this opening bell.
(APPLAUSE)
GRASSO: And make no mistake about it, these wonderful men and women who put their lives on the line, all of the agencies, police, fire, emergency rescue, all of the varying neighboring police departments who are here, allow us to do what we do. This couldn't happen without their great guidance and help and certainly their love and affection for this great country. Let us celebrate these wonderful men and women.
(APPLAUSE)
GRASSO: Ladies and gentlemen, each of the wonderful public officials who are with me on the podium will join me on the trading floor, and I know you will join me in extending the traditional NYSE welcome, a hug and a job well done. We wouldn't be here today without this fabulous partnership.
Let us all pause in a moment for a reflection of two minutes followed by Rosanne singing of "God Bless America."
(PAUSE FOR REFLECTION)
(SINGING, "GOD BLESS AMERICA")
(APPLAUSE)
GRASSO: Gentlemen -- ladies and gentlemen, our heroes will now open the marketplace. The green button.
(BELL RINGING)
(APPLAUSE)
ZAHN: It was an amazing group of people surrounding the chairman of the Stock Exchange this morning: Dick Grasso, flanked be the governor of New York, both Senators Hillary Clinton and Senator Chuck Schumer, as well as firefighters, police officers, and other folks involved in the massive effort to continue the rescue and cleanup operation.
Let's go to Lou Dobbs right now for what he saw during the moment of silence and what he saw once the markets got open. Lou, can you hear me?
LOU DOBBS, CNN CORRESPONDENT: Yes, Paula, I can hear you. I hope you can hear me.
It's not often at the New York -- this has never happened in my experience -- two decades here, that one could not hear the opening bell because of the thunderous applause. These traders and specialist giving the welcome that they deemed appropriate to representatives of the fire and police department here. And as those representatives rang the opening bell, it didn't take long to see what was in store for the this market. The Dow is off 110 points already. Looking over at the Nasdaq, it's already fallen 109 points. Those are the lowest levels of the year already. We knew it would be a difficult open. And while it's much too early to judge for the first few minutes of trading, we've open a little better than two minutes, these are significant declines, and we saw that almost every sector, whether it be financial, retailing. Airlines, of course, we would knew would be hard hit today. They are being.
We have a very weak open and have to see what will go on throughout the morning here. But so far, we've seen no letup in the selling.
ZAHN: Lou, I guess it is fair to assume now that we heard very power rendition of "God Bless America" that most Americans will never hear that song the way they once did. You, I know have talked with people who have shared with you the very conflicting emotions they are feeling today as they get back to work and try to keep the markets propped up.
DOBBS: Yes, there is -- and I said this early this morning. I would hope that no one decides to buy a stock in the belief he or she could change the direction of the market. I understand that there's patriotic support. But the fact -- what makes this such a powerful market that free market efficient market, and the basis for free market democracy in this country.
Both your heart, your pocket book, but be a long-term investor as you should have been before, and I hope you will be after, and will be today. That's what makes this country and these markets work, moving in self interest and moving decisively with the money you want to invest in these markets. This is a strong, strong resilient economy and market. And no matter what happens in the short term in the next few hours and the next few days, this country is blessed with a very strong economy and the greatest democracy in the world.
ZAHN: Lou, earlier on, you were reporting about the significance of the Feds announcing a half-point cut rate cut. And you told me earlier you didn't that would move the markets all that much. What are traders telling you about their reaction to the half-point cut.
DOBBS: Their reaction is muted in point of fact. They are now looking at fed fund's rate of discount rate of 2 1/2 percent. In any other environment this would be one. Point of fact, it is the 8th cut, the third intermeeting rate cut this year. We see right now the with Dow Jones industrial average off 143 points, the Nasdaq off 103 off lows, it's not having an appreciable effect. Combined with strong leadership and strong support for the president, high consumer confidence going into the opening of the market, these things will ultimately have a very positive event.
I'd like, if I may to bring in Joe Grano, who is the CEO of UBS PaineWebber.
Joe, good to see you.
If I can ask you to step over here for our cameras. I know this has got to be a terribly difficult time for you. Give us your thoughts on this day.
JOSEPH GRANO, CEO, UBS PAINEWEBBER: I couldn't be prouder to be an American and prouder to be part of this industry. The real heroes are east of Broadway, west of Broadway. And these gentlemen and ladies in this room sent a message to the free world that we are going to maintain a free market and we are the center of that capital market, and it was imperative that we got open today.
DOBBS: And great credit given to Dick Grasso and to this community for getting this market back in very short order.
GRANO: Last week, all of the heads of the firms met, and there are a lot of unsung heroes in that regard, too, all of our employees that work throughout the night. I would like to particularly signal the work that Verizon has done. Their crews have been going, and they've lost some people in this tragedy as well. And I couldn't be prouder of their efforts and the efforts of all the employees on the street.
As Joe Grano points out, what many people don't realize, the largest switching station for Verizon is located under 7 World Trade Center, which of course collapsed. The work has been done here by ConEd and Verizon and all these firms is amazing.
GRANO: They lost a switching center in the tower and on West Street that was impacted when seven fell, and they have one on Broadway.
DOBBS: Give us your judgment about what you think is going to happen in these markets today.
GRANO: Well, it's very hard to predict. But so far, it would suggest that we're not seeing panic sell, and markets are very efficient, as you know. I think that many Americans are going to maintain a calm, see what happen. I for one when I get back to office am buying securities.
DOBBS: Joe Granto, thank you very much. And for those of you -- a lot of people may not know it, Joe Brown, one of our most decorated special forces officers. Good to have you with us.
GRANO: Thank you very much.
DOBBS: I just saw (UNINTELLIGIBLE) just a moment ago. But he has apparently moved over.
We have a number of the heads of brokerages here in the midst of all of this trading. As Joe Grano pointed out, while these markets are moving significantly lower, there is no, as he said, "panic." But I don't think there's anyway in the world we should underestimate the downside pressure here.
As I look up on the ticker, the up volume, five million shares to this point. And again, we've only open for a matter of 10 -- less than 10 minutes, and against that, a down volume of 30, 40 million shares now, so just about 8-1 in terms of the down-to-up volume.
It is very different market right now. The tick is decidedly negative. But, frankly, I will tell you, it's not as negative as one might expect. And with the Nasdaq Composite here holding after less than 10 minutes at about a 106 points lower, while that is, of course, a significant decline, it is certainly not as bad as many people, and in fact a few of the people on this floor, had led us to believe they expected.
So we've got some pretty good order in this market right now. And by order, I don't mean that this market will necessarily move higher from these levels or that it will not fall further. But it is an orderly market, and importantly, the world's largest capitalized market, that is the New York Stock Exchange, with some $13 trillion in market cap, and the average daily trading level of about $45 billion, is back in business; that is very good news for both this economy, irrespective of what direction this market takes, and of course, very good news for the global economy.
ZAUN: Lou, I think the picture around you might be deceiving (ph) to folks who aren't used to watching the kind of action that takes place on the floor of the New York Stock Exchange, the constant blur of people whirling around you. This is normal, isn't it?
DOBBS: It is absolutely normal. It is, if you will, I would say just a little more -- a little louder than normal. There's a little more activity. The fact is that we've got volume after a few minutes of about 50 million share -- 54 million shares now. There's a lot more conversation, not all of it has to do, of course, with trading stocks.
So there's just a little more activity, but bedlam is the nature here of the New York Exchange, and you know, Paula.
ZAUN: Of course. But given the volume of trading and the potential technical difficulties, I was surprised to hear that the chairman doesn't have any kind of contingency plan in place. They seem confident, then, that you're not going to have the same electrical problems that so many of the buildings in the surrounding area have had.
DOBBS: Well, Paula, as you were down here, I've been out near the World Trade Center area, walking around the blocks, what has been done here is nothing short of remarkable. But ringing this building, ringing the American Stock Exchange, are ConEd generators, mobile generators have brought in. Frankly, they've done everything they possibly can to provide what support. And from here, after this devastation, there's no redundancy, and they're highly confident, certainly Dick Grasso is highly confident, that it's not going to be required.
ZAUN: Well, I tell you one thing, I give you 110 points for standing there without getting knocked over. That is on a very good day hard to not be knocked over by the constant activity.
DOBBS: Well, I think that the -- there may be some -- there may be mercy being shown just in the nature of the day. I've tried to stay out of the way and they've tried to avoid me, and we have a very efficient market in that respect working as well.
ZAUN: OK, Lou, thank you so much.
DOBBS: Thank you, Paula.
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