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CNN Live Event/Special

America Recovers: Dow Futures Point Down; Nortel Networks Expects Loss and More Job Cuts; Priceline.com Revenue Recovers

Aired October 03, 2001 - 06:15   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.
CAROL LIN, CNN ANCHOR: First we want to check on the business of the day with David Haffenreffer.

Hi, David.

DAVID HAFFENREFFER, CNN FINANCIAL NEWS CORRESPONDENT: Hi, Carol. Hi, Leon.

Investors hoping for some follow-through to yesterday's rally but at least in the early going it doesn't look like they're going to get it. Stock index futures are pointing to a solidly lower open for us today. Yesterday's half percentage point interest rate cut by the Federal Reserve sparking a nice move to the upside on Wall Street. The Dow Industrials jumping 113 points. The Nasdaq adding 11 points. The Fed also left the door open to further rate cuts, but many investors are still questioning whether the Central Bank's efforts will be enough to turn around the U.S. economy.

Now one reason stock index futures are pointing lower today is some bad news from Nortel Networks. The Canadian telecom equipment maker said it expects a $3.6 billion quarterly loss. Nortel also plans another 20,000 job cuts. That would be on top of the 30,000 already announced this year.

But Priceline.com is offering some positive guidance. The name- your-own-price Internet company says it expects third quarter revenue to come in at the high end of its range. It says demand for its services is recovering faster than expected after a sharp drop-off following the terrorist attacks.

That is a quick look at business news this morning.

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