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American Morning

Market Update

Aired October 05, 2001 - 10:25   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.
HEMMER: Let's talk about money now. The nation's jobless rate has remained stuck, still at 4.9 percent reported in the month of August. The figure, however, largely ignoring the impact of the attacks on 9-11; meaning that the October jobless rate looms even more ominously at this point.

To the stock exchange and CNN's Amanda Lang watching that job's report and a lot more. Amanda, good morning

AMANDA LANG, CNN CORRESPONDENT: Good morning, Bill. Watching a lot more down here. Stocks losing ground now. You mentioned that the unemployment rate held steady at 4.9 percent. The problem here is that the headline number doesn't really tell the whole story. U.S. employers cut nearly 200,000 jobs last month. That's double what economist were looking for that. And that is a surprising weakness, which doesn't measure the full impact of the terrorist attacks. That's even more worrisome.

At the moment, Dow Industrials down 80 points. Nasdaq off about 2 percent. Not helping, a trio of tech warnings. They were cheered earlier this week, that is investors, by reassuring news from Cisco and Dell; but today, Sun Microsystems, Advanced Micro Devices and Gateway Computer all say that they will report wider than expected quarterly losses.

Sun also says that it's cutting nearly 4,000 jobs. That's about 9 percent of its workforce. Shares of Sun losing more than 4 percent.

AMD sliding 8 percent today.

Gateway actually trading higher. Both Sun and Gateway said that the September 11th terrorist attacks did play a role in hurting their results. Chipmaker blamed its ongoing price war with Intel.

Several major airlines are announcing deals to lure leisure travelers back to the sky. Delta says that it is slashing rates for domestic travel through December 15th, and international travel through the March 14th. Tickets must be purchased by Monday.

Other carriers quickly followed suit. United says that it will match the fair cuts. American and Continental say they will match them on some routes.

Finally Orbit, the airline's travel web site, says that it will offer additional 10 percent discounts on top of the airline's cuts.

That's the latest from a down day on Wall Street. Bill, back to you.

HEMMER: OK, Amanda. Thank you very much.

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