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American Morning
America's New War: New York Stock Exchange Reopens
Aired September 17, 2001 - 09:35 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: 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 brown, 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.
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