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American Morning
Minding Your Business: Will Gains Stick?
Aired March 19, 2003 - 07:46 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.
JACK CAFFERTY, CNN ANCHOR: Andy is off today; Christine Romans "Minding Your Business."
I got in here about 5:30 this morning. The European markets lower, the futures ahead of the open here much lower, and then about 6:30, everything turned just like that. What happened?
CHRISTINE ROMANS, CNN FINANCIAL NEWS: Well, it turned around. There are reports -- specifically a Reuters report that U.S.-led troops are near the Iraq-Kuwait border in the de-militarized zone, and you have the markets turn higher. You've got the DAX -- that's a German index -- up about 2 percent, French stocks are higher. So a lot of these European stocks moving higher.
And, Jack, the futures here in the U.S. are pointing to maybe 50 points higher for the Dow. Now, the Dow over the past five days has had a stellar run. What a difference a week makes. The Dow up 8.9 percent...
CAFFERTY: Wow!
ROMANS: ... the S&P up about 8 percent, and the Nasdaq, those tech stocks, up about 10 percent in the week. Some other stocks that maybe you hold in your portfolio, Microsoft up sharply since last Wednesday, GE up 13 percent, Jack, since last Wednesday, ExxonMobil up as well.
So, we've seen quite a move. The question is, you know, can it continue? A lot of folks on the Street are telling me, Jack, that a perfect scenario is priced into the markets at this level, and now you have to see either that play out or you see the markets start to, well, maybe second-guess some of these gains.
CAFFERTY: The other thing that often happens with the stock market is it will anticipate an event and move either up or down ahead of the event, and then when the event actually occurs, it will move in the other direction, buy-the-rumor/sell-the-news kind of psychologically.
ROMANS: Absolutely.
CAFFERTY: It remains to be seen.
ROMANS: Yes, so we'll have to very closely watch to see what the actual reaction is once we do, if we do, get any kind of activity overseas.
CAFFERTY: All right, thanks, Christine.
ROMANS: Sure.
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 March 19, 2003 - 07:46 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JACK CAFFERTY, CNN ANCHOR: Andy is off today; Christine Romans "Minding Your Business."
I got in here about 5:30 this morning. The European markets lower, the futures ahead of the open here much lower, and then about 6:30, everything turned just like that. What happened?
CHRISTINE ROMANS, CNN FINANCIAL NEWS: Well, it turned around. There are reports -- specifically a Reuters report that U.S.-led troops are near the Iraq-Kuwait border in the de-militarized zone, and you have the markets turn higher. You've got the DAX -- that's a German index -- up about 2 percent, French stocks are higher. So a lot of these European stocks moving higher.
And, Jack, the futures here in the U.S. are pointing to maybe 50 points higher for the Dow. Now, the Dow over the past five days has had a stellar run. What a difference a week makes. The Dow up 8.9 percent...
CAFFERTY: Wow!
ROMANS: ... the S&P up about 8 percent, and the Nasdaq, those tech stocks, up about 10 percent in the week. Some other stocks that maybe you hold in your portfolio, Microsoft up sharply since last Wednesday, GE up 13 percent, Jack, since last Wednesday, ExxonMobil up as well.
So, we've seen quite a move. The question is, you know, can it continue? A lot of folks on the Street are telling me, Jack, that a perfect scenario is priced into the markets at this level, and now you have to see either that play out or you see the markets start to, well, maybe second-guess some of these gains.
CAFFERTY: The other thing that often happens with the stock market is it will anticipate an event and move either up or down ahead of the event, and then when the event actually occurs, it will move in the other direction, buy-the-rumor/sell-the-news kind of psychologically.
ROMANS: Absolutely.
CAFFERTY: It remains to be seen.
ROMANS: Yes, so we'll have to very closely watch to see what the actual reaction is once we do, if we do, get any kind of activity overseas.
CAFFERTY: All right, thanks, Christine.
ROMANS: Sure.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
