Market briefing---Lane (medium)
Verdict---Alan (slow)
Focus on economy--Su (fast)
NYSE---Deb (fast)
>> welcome to “world financial report.” the trial of former investment banker frank quattrone ended after a judge declared a mistrial. the 11-person jury told the judge they could not reach a unanimous verdict on any of the charges. alan dodd frank has been following the case. he joins us with a wrapup. alan?
>> lane, on what was to be day six of the deliberations t jurors send out their third note telling the judge they could not reach a verdict on any of the three counts. let’s take a look at how they voted on each of those counts. on count one, which is an obstruction of justice count, the jury voted 8-3 far guilty verdict. on the second count, which was obstructing an agency proceeding, they voted 6-5 in favor of an acquittal. and on the third count, which was witness tampering, they vote 8-3 far guilty finding. however, as we have said already, they could not reach any agreement. in fact, when the judge asked whether there was to be any point in continuing the deliberations, only one juror of the 11 putz up his hand and it was juror who, according to the jury we spoke to, was the only real holdout saying we have to deliberate until we find him guilty. now we talked to the juror number five, a bank employee, and he told us about the effect of frank quattrone testifying in his own defense.
>> actually it was as negative effect for most of our jurors. they said that the way that he was evasive to the questions from the prosecution made him look like a noncredible witness and that he needed questions to be asked too many times.
>> now quattrone had testified in his own defense, but on cross-examination by the prosecutors, it came out that, i this point is disappointment.
>> the judge set november 5 as a hearing date to see when they might have a re-trial. that’s not certain yet. the prosecutors haven’t determined for sure that they will seek a re-trial. but the history of the u.s. attorney’s office here in new york in the southern district is that they retry cases, especially high-profile ones like this. now, of course, this was not the best outcome for frank quattrone, but it sure beat a guilty finding. the experts say that they don’t expect frank quattrone necessarily to testify in his own defense the next time around, based on what the jurors have told him. lane?
>> all right. alan dodd frank, reporting outside the courthouse in lower manhattan. now you have the latest details. we want to review how frank quattrone got to this point. it began when csfb lawyers told quattrone about a securities and exchange commission investigation into the firm’s equity underwriting process. three months later, quattrone complied with regulator’s requests for documents related to the v.a. linux and selectica i.p.o.’s. that week, they subpoenaed all files. he found out about that subpoena on december 3. he says his team wasn’t involved in i.p.o. allocations and two days the later forwarded an e-mail from csfb lawyers advising bankers to clean up their files. after a year of legal battles, credit suisse first boston made -- paid $100 million to settle charges. but focus on quattrone’s role and that fateful e-mail only grew more intense. he quit in march of this year. then in april, regulators filed three criminal charges against quattrone, accusing him of obstruction of justice. he pleaded not guilty and his trial began last month. after jurors said they could not reach a verdict and the judge declaire add mistrial. some legal experts say the mistrial is a good sign for the defense. prosecutors say they intend to seek another trial. lawyers from both sides will meet with the judge november 5 to discuss the next steps. hiring has been the missing ingredient in the u.s. economic rebound and now there are science of an improving job market. win bay go, u.p.s. and other companies say they are boosting their payrolls. su keenan is here with more.
>> the economy grew at an estimate 6% rate in the third quarter and there have been no clear signs of a rebound in hiring. now there are some anecdotetal evidence that companies are hiring, something economists say may help sustain the economic recovery. bruce hers, c.e.o. of winnebago told bloomberg that he is hiring. he says the company is hiring workers every week and may need 100 more employees by year’s end. u.p.s., the world’s largest package delivery company, already plans to add workers after last quarter’s increase and manufacturer’s shipments, its first such increase in three years. the c.e.o. said he had been fairly pessimistic on the economy until he saw manufacturing start to strengthen last month.
>> we will be hiring workers as the volume increases and there has been some of that going on and i anticipate more of that as we head into november and the holiday season.
>> also sound ago positive note on hiring is the chairman and c.e.o. of union pacific, the biggest u.s. railroad. shares of the company reflect the friend in shipping. they have been flat for most of the year. yet c.e.o. richard davidson says he saw substantial pickup in shipments in the last four to five weeks of the quarter.
>> absolutely. lets me say this. in the first nine months of the year, we heard about 1300 people. i originally though about 600 would be hard in the fourth quarter this year, but actually it will be closer to 700 and we anticipate strong hiring throughout next year as well.
>> now the latest jobs statistics will be issued by the labor department in early november and deutsche bank securities economists predict we’ll see the first back-to-back monthly payroll gains in a year. lane?
>> su keenan. deborah kostroun is at the new york stock exchange. it has been a very busy week with earnings and more earnings and more earnings. by the close, we saw the markets turn loser. deborah kostroun has more now. deb?
>> well, as we started out, lane, obviously we did see the market down quite a bit. seeing a little bit of recovery by that close of trading and some of the things that we did see, obviously microsoft, that was a big, accounting for about half the losses or actually just computer and technology shares accounting for half the losses in the s&p 500. and also we saw gateway under some pretty heavy pressure as well as they forecast a fourth quarter loss that was going to be bigger than expected. microsoft seeing its biggest decline in two and a half years and so that is some of the things that we did see in today’s session. nigs, we saw gold coming at its best level, closing at its best level in seven years. this was in a week where we saw equities actually very weak and if you take a look at gold, you can see that it was closing up $4.20 for the―once again, performing quite well as equities really losing. if you take a look at the dow and the s&p, the losses that we did see, generally about 1.7% for the week and the dow, the s&p down 1.4%. so, we did see losses for the first time in four weeks and obviously many of those earnings reports had quite a bit to do with that. in addition, some of the other things that we were looking at today, possible merger between at&t and bellsouth, that really kind of coming into the mix. telecom, we saw so many of those earnings with at&t and they were looking at 15 straight quarters of losses. however, a combination with bellsouth, actually a shootoff of at&t and that combination actually many analysts saying could help out both those companies. as we’re closing out the week, we did see a new beginning with cartsdzer clothing. this is a 183-year-old maker of baby clothes. and that i.p.o. raised $118 million. we haven’t seen an i.p.o. in quite some time. 138-year-old baby maker. i think i said 183-year-old maker of baby clothes. anyway, carters up quite a bit in its first day of trading a. pretty good showing for a new stock that was traded. also, some of the other things that many traders really kind of talking about in today’s session, we did see a market that was lower. however, the volume, $1.4 billion shares and that is something we’ve been seeing for the past week, a week that was lower. we did see average volume or above average volume. not a good trend for the market, at least now. back to you.
>> deborah kostroun at the big board. now the vast majority of s&p 500 companies are affording quarterly earnings ahead of consensus estimates. the question is, can the strength carry into the fourth quarter? we’ll take a look at that time quality of corporate earnings and how stocks may be affected with steve young, of bank of america capital management when we return.
