Return to Transcripts main page

American Morning

End of Winning Streak for New Year for Stock Market

Aired January 08, 2002 - 07:38   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: Let's go back to Jack.

JACK CAFFERTY, CNN FINANCIAL NEWS ANCHOR: All right. Thanks, Paula.

Allan Chernoff joins us now. We're going to talk about the end of the winning streak for the New Year for the stock market. And, Allan, one of the reasons, I guess, was our own parent company, AOL Time Warner, wasn't it?

ALLAN CHERNOFF, CNN FINANCIAL NEWS: Well, AOL Time Warner, yesterday, really did its expectations, trying to be more conservative with Wall Street, telling Wall Street that it is going to expect to have lower profits and lower revenues than previously forecast. And it's basically taking a different strategy, because it was very optimistic at the beginning of last year, and that didn't pay off so well, because the stock is down 45 percent from its 52-week high -- Jack.

CAFFERTY: What is it going to take for the market to get back on track and resume its winning ways? I know earnings begin today. Alcoa, I think, is the first big name company to report. What's it look like today?

CHERNOFF: Well, of course, we are going to start off with those earnings, and they are not going to be all that fantastic, but the expectation on Wall Street is that Wall Street will pretty much brush aside these awful numbers for the fourth quarter. The Street looking ahead and hopefully the profits will be pretty strong in the first quarter and improving into the second quarter. That's really what the gains we have seen recently are based upon.

CAFFERTY: All right. Allan, appreciate it -- thanks very much -- Allan Chernoff joining us with a preview of Wall Street trading, which gets under way in a couple of hours.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.