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American Morning

America Recovers: Market Opening

Aired September 28, 2001 - 09:30   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: Today, like most other days, you see the same compliment of New York firefighters and police department officials helping with the opening of the New York Stock Exchange. And over at the Nasdaq marketsite you have got Yogi Berra, probably, Andy, telling investors you can observe a lot, just by watching.

ANDY SERWER, FORTUNE MAGAZINE: Or if you see a fork in the road, take it.

ZAHN: Yes, and where would that fork in the road be today?

SERWER: Well, if you think the market's -- the market's either going to go up or down.

ZAHN: Thank you very much!

SERWER: I'm sure he would say something like that.

ZAHN: Yes, you helped me...

SERWER: That would be a Yogi-ism, as far as the stock market here today.

ZAHN: ... gave me a much more complete understanding of the market here, Andy.

Based on how the futures were doing, how do you think the market will play out today?

SERWER: I think we're going to be higher at the open, at least. We were strong in Japan overnight, strong in Europe. American stocks in Europe were strong. The futures were up.

About 80 points earlier when we got the GDP number that came in for the second quarter, showing the economy grew at .3 of 1 percent, although that's of course ancient history. Slightly better than we anticipated the market, the futures took a little pop on that. Now they've backed off.

But that was so long ago, Paula, and I don't think that's necessarily going to move the markets today.

ZAHN: But what investors out there might not know, in about 15 minutes the study is coming out by University of Michigan. SERWER: Yes.

ZAHN: A consumer sentiment survey.

SERWER: Yes.

ZAHN: Which will tell us what? Is it going to be all that different than the consumer confidence levels we've addressed over the last couple of days?

SERWER: Well it's slightly different. The University of Michigan does this poll of 500 consumers, and the important thing here is they were talking to people after the September 11 attacks. So, it's been dropping pretty sharply August, the beginning of September. We'll see if it continues to decline.

I think the most important thing today, Paula, is this is the last trading day of the quarter. There's going to be very heavy volume, and trader sort of teeing up to make sure they own the right stocks headed into the last quarter of the year.

ZAHN: Headed into October, which traditionally is a terrible month, isn't it?

SERWER: It's been a terrible month for investors over the years, yes. 1987 crash, crash in '97, other months, other years it's been terrible too. But this year, all bets are off.

I mean I still think we're building a base here. Don't look for things to run up. But I think the important thing is people have to be thankful for stability that we've shown this week, and it's been a pretty good week so far.

ZAHN: I didn't formally introduce you this time around, because by now I think those folks who've been joining us the last couple of weeks know who you are, Andy Serwer of "Fortune" magazine. And he will answer some of your email questions about the economy and your finances in his next appearance.

So, get those ready again. And as I told you, make them tough. He will be up to the task. Send them to attack@CNN.com. And Andy will take a chance in our next segment.

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