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American Morning
Minding Your Business: Party Like It Is 1977
Aired December 31, 2002 - 07:47 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.
LEON HARRIS, CNN ANCHOR: The last trading day of the year is about to get started. So, how hard were stocks hit this year? You don't have to go far to find information about that. Just go look at your 401 statement.
Andy Serwer is off this morning. So, our Mary Snow is checking, and she's "Minding Your Business." And she is at her post at the New York Stock Exchange.
Hello, and happy New Year to you -- Mary.
MARY SNOW, CNN FINANCIAL NEWS: Happy New Year, Leon -- good morning.
And I think this year was swept away for Wall Street. And today, you know, we could see -- so often on New Year's Eve we have a rally, but there's skepticism that will happen today.
Yesterday, we had low volume; we'll see that again today. A mixed session yesterday, the Dow was up a bit, the Nasdaq was off by a few points.
But when you take a look at the year, the Dow right now is on track for a 17 percent slide, and that's the worst since 1977. The Nasdaq is on track for its third worst year ever.
And this is the third year of declines. We haven't seen that happen since the stretch that ended in 1941, and there's only been one time that the market declined for four straight years in a row, and that hasn't happened since the Depression. Hopefully, that won't happen in 2003 -- Leon.
HARRIS: All right, well, some folks who are dealing with their own financial kinds of depression are the folks who have had to live through some of these bankruptcies we've seen happen this past year. We talked a little bit about this on the show yesterday, but there were quite a few of them announced this past year. And there were some big names that were involved here. But overall, really how bad was it for bankruptcies in 2002?
SNOW: Well, you know, when you look at the value of the assets of these companies, 2002 set a record for bankruptcies, because we had the 5 of the 10 largest bankruptcies filed this year with WorldCom topping the list. We had Kmart. The most recent one was UAL, the parent of United Airlines. In all told, it was $368 billion in terms of assets. And if you take a look at the stocks of these companies, as you can imagine, they've just been absolutely hammered. And UAL is the only one that hasn't been de-listed yet -- Leon.
HARRIS: All right, well, if that's a silver lining, we'll take it. Thanks, Mary.
SNOW: OK.
HARRIS: See you in a bit -- Mary Snow at the New York Stock Exchange this morning.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
Aired December 31, 2002 - 07:47 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LEON HARRIS, CNN ANCHOR: The last trading day of the year is about to get started. So, how hard were stocks hit this year? You don't have to go far to find information about that. Just go look at your 401 statement.
Andy Serwer is off this morning. So, our Mary Snow is checking, and she's "Minding Your Business." And she is at her post at the New York Stock Exchange.
Hello, and happy New Year to you -- Mary.
MARY SNOW, CNN FINANCIAL NEWS: Happy New Year, Leon -- good morning.
And I think this year was swept away for Wall Street. And today, you know, we could see -- so often on New Year's Eve we have a rally, but there's skepticism that will happen today.
Yesterday, we had low volume; we'll see that again today. A mixed session yesterday, the Dow was up a bit, the Nasdaq was off by a few points.
But when you take a look at the year, the Dow right now is on track for a 17 percent slide, and that's the worst since 1977. The Nasdaq is on track for its third worst year ever.
And this is the third year of declines. We haven't seen that happen since the stretch that ended in 1941, and there's only been one time that the market declined for four straight years in a row, and that hasn't happened since the Depression. Hopefully, that won't happen in 2003 -- Leon.
HARRIS: All right, well, some folks who are dealing with their own financial kinds of depression are the folks who have had to live through some of these bankruptcies we've seen happen this past year. We talked a little bit about this on the show yesterday, but there were quite a few of them announced this past year. And there were some big names that were involved here. But overall, really how bad was it for bankruptcies in 2002?
SNOW: Well, you know, when you look at the value of the assets of these companies, 2002 set a record for bankruptcies, because we had the 5 of the 10 largest bankruptcies filed this year with WorldCom topping the list. We had Kmart. The most recent one was UAL, the parent of United Airlines. In all told, it was $368 billion in terms of assets. And if you take a look at the stocks of these companies, as you can imagine, they've just been absolutely hammered. And UAL is the only one that hasn't been de-listed yet -- Leon.
HARRIS: All right, well, if that's a silver lining, we'll take it. Thanks, Mary.
SNOW: OK.
HARRIS: See you in a bit -- Mary Snow at the New York Stock Exchange this morning.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
