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What does fresh mean to you?
Something novel, something new.
How about original?
I think unique, creative.
And when you put them together?
Sunday nights on CNBC.
At 8, Al Roker has stars from the TV screen, big screen, and music scene.
At 8.30, get in on the conversation, have it style.
It's fresh shows.
With an original approach.
Sunday nights, only on CNBC.
Perfect!
Print it, cut!
Someone say lunch!
Good afternoon, welcome back to Market Wrap.
I'm Sue Herrera.
I'm Ted David.
A strong bond market helped to down hit an all-time intraday high, but the blue chips
couldn't hold those gains and finished up just 1.44 points.
The end is in sight for the O.J. Simpson trial.
Prosecutor Chris Darden urging jurors to find Simpson guilty of murder.
Darden delivering the prosecution's rebuttal to the defense's closing arguments in the
trial.
The jury is expected to get that case shortly.
CNBC's Jerry Cobb joins us now live from Los Angeles with more.
Good afternoon, Jerry.
Good afternoon, Sue.
Attorneys on both sides are hashing out some final points in advance of Marcia Clark's
final summation.
In the meantime, the city and the media here are awaiting the final outcome of this trial
with a mixture of relief and dread.
As more than 1,500 members of the media prepare to cover the final act of the Simpson trial,
financially troubled L.A. County is stuck with a bill approaching $10 million and a
lot of anticipation over whatever comes next.
The district attorney said, even if it's 11 to 1 in favor of acquittal, he would retry
O.J.
Simpson.
The cost would be to skyrocket.
The justice system has been changed forever by the Simpson trial.
Judges in several other high-profile cases have ordered cameras out of their courtrooms.
And in California, advocates of non-unanimous jury verdicts have started a drive to put
the issue on the ballot.
This is real life.
This isn't anything for murder, she wrote.
For television, the trial has been a mixed blessing.
On the one hand, huge ratings during pivotal moments in the case.
On the other, millions of dollars in lost revenue from canceled commercials and preempted
programming, much of it new shows of the fall season, struggling to build an audience.
This trial has affected every single syndicator out there.
I mean, almost every show across the board, including the ones in the morning, are being
affected.
The afternoon is, I think, the worst hit.
And the big question is going to be when the trial finally ends, where those shares go.
Some of those audience shares are bound to tune into a coming wave of courtroom-related
programming, like a planned series based on cases handled by Simpson defense lawyers Barry
Sheck and Peter Neufeld.
TV producer Mark Massari, who created real stories of the highway patrol, is gearing
up to launch a series based on actual court cases called The Prosecutors.
Well, I'm sure there are a lot of producers out there, like myself, who don't have to
be hit between the eyes with a two-by-four to realize the potential and the interest
that this case has generated.
I mean, people are glued to their sets.
Even when this trial of the century is finally over, LA is not likely to get much of a break
from high-profile cases.
Not only is the second Menendez trial scheduled to begin here soon, there's also a chance
the Polyclass trial may be held here, not to mention a second O.J. Simpson trial, if
the current one ends, in a hung jury.
Ted, Sue?
Thank you very much, Jerry.
Jerry Cobb reporting for us live from Los Angeles.
Well, Treasury prices soared today after some economic data showed some weakness in the
economy.
The Chicago Purchasing Management report for September down to 49 from 49.3 in August.
In addition, the University of Michigan's final report on September consumer sentiment
also weaker than expected.
And new home sales for August declined 9.6 percent, and also looking for just a 2 percent
drop.
But that was tempered by a sharp upward revision to July sales.
Finally, the government reporting revised second quarter GDP grew at an annual rate
of 1.3 percent. That was the slowest rate of growth in more than two years, but still
slightly stronger than earlier estimates.
When all was said and done, the long bond liked it all.
The bond up 1 in 9.30 seconds.
The price at 105, the yield 6.49 percent.
As for the dollar, it was mixed, as you can see here.
Well, the strength in bonds helped Wall Street extend yesterday's rally, pushing into record
territory by mid-session.
The blue chips pulled back towards the close of trading, but several down cyclical issues
posting strong gains, namely DuPont and United Technologies.
Here's a look at the rest of the final numbers from Wall Street.
Up 144 on the Dow, 4789.08.
New York stock exchange composite average down just a fraction, 337.6 million shares
changing hands.
The breast was positive today, 790 stocks unchanged.
The average share gained 24 cents.
167 new highs, 16 new lows.
The transport's up almost three and a half points.
The utility's down just about a half.
The S&P was down 144.
The Amex up.44, and the NASDAQ off three and a half points.
Ted?
The shares of Interneuron today finished down one and five-eights at 11 and one-half.
The Food and Drug Administration is supposed to vote again later today on whether to allow
sales of its obesity drug in the U.S.
It rejected the drug last night.
However, a panel has persuaded members to take a new vote today.
Scientists say that drug, which is dexpenfluramine, successfully fools patients into feeling so
full that they will lose weight.
Critics say it could cause brain damage.
Medical device maker Boston Scientific will merge with privately held Med-Ox Medicals
in a stock deal worth about four and a quarter million dollars.
Boston Scientific, to exchange up to 10 and a half million of its shares for ownership
of Med-Ox, Med-Ox develops manufacturers and markets products for vascular replacement.
Boston Scientific finished up one and a half at 43 and one-half.
Michael Milken's reported $50 million fee from the Time Warner Turner deal is just one
of many for Milken and others.
We won't say some dealers anyway, deal makers in particular.
Bankers say M&A activity will likely reach $800 billion in 1995, exceeding the industry's
peak in 1989.
Maria Barnhart-Rolmo reports.
Michael Milken is back.
The former junk bond king has been talking deal with many corporate chieftains and in
some cases garnering a profit for it.
Mike Milken has been an advisor to Turner Broadcasting for many, many, many years and
I would have certainly expected Ted Turner to lean on Mike in anything he does.
Sources tell CNBC Milken's payments from Ted Turner and Time Warner will far exceed in
already reported $50 million.
Much more than the fees to Time Warner's bankers at Morgan Stanley and Turner's official advisor
CS First Boston.
A third fairness opinion fee is also to be given to Merrill Lynch.
Two-thirds of the time there's multiple bankers.
For transactions above $5-$6 million, more often, mostly, you will see two bankers on
each side.
The drivers or the cause of the level of activity, we expect to continue into the end of the
year, the beginning of next year.
The components are media and telecom, financial institutions, utility business and healthcare.
Lindsay expects 1995 deals to reach $800 billion, as does Salmon Brothers Mark Davis.
The only way a CEO can have a major impact on his stock price is by making a big statement
and the biggest statement you can make today is buying a company or merging with a company.
Sources say Mike Milken's latest buy may be Viacom's Simon & Schuster, with Milken acting
as a partner and a dealmaker.
Don't count out some other 80s high flyers either in what's shaping up to be a peak year
for dealmaking.
Carl Icahn recently upped his stake in RJR Nabisco.
And Apollo's Leon Black owns the debt of at least 100 companies.
Some bankers say this is one group which is not intending to be low profile.
Maria Bartiromo, CNBC Business News, New York.
Ford Motor Company has opened a distribution company in South Korea.
The joint venture with Kia Motors will import Ford cars, minivans and sport utility vehicles
to the Asian country.
That comes on the heels of the U.S.-South Korea auto agreement on Thursday.
Shares of Ford finishing down 5A's to 31 and 1A.
Warning from China's Foreign Ministry today.
In comments following a speech in New York, he said Washington and Beijing cannot have
good relations unless the U.S. adheres to a policy that there is only one China and that
Taiwan is a part of it.
Susan Lasovitch reports.
China put the brakes on a lucrative contract for Chrysler minivans this year when the President
of Taiwan came to visit the U.S.
Communications were further strained when the First Lady implicitly criticized China
during a trip to the targeted country.
Human rights activist Harry Wu returned to the U.S. where he has stepped up his verbal
attacks.
With its archaic communist infrastructure and population of more than a billion, China
is a magnet for U.S. business.
But trade with China is always a consequence of its politics.
The current difficulties in final U.S. relations are not what we wish to see.
China's Foreign Minister Chen Qichen is rarely in the U.S.
His trip could set the stage for a summit later next month with the President.
Politics aside, experts say China's rampant corruption is a huge obstacle to increasing
business there.
The best thing for China is to clean up their act on the corruption side of the vigorous
and this means not only getting the little guys but it will go quite far up and therefore
I'm not too sure politically whether they can do it.
And then there is the arbitrary nature of Chinese law.
Australian businessman James Peng has been imprisoned for nearly two years without ever
being found guilty.
Seven hundred days is too long for an innocent person to be locked up.
China has launched an anti-corruption campaign.
Some critics say it is little more than a power struggle as the health of Deng Xiaoping
worsens.
China's public relations problem is exacerbated by the growing number of emerging markets
also competing for U.S. dollars.
China is trying to be responsible in taking step by step in taking these changes in stride.
Russia has not done as well.
The Chinese government this year described relations with the U.S. as the worst in 16
years.
In terms of potential trade, it's in both countries' best interest to improve things.
Susan Lasovitch, CNBC Business News, New York.
A surprise in the race for the White House, a key GOP contender calls it quits.
Details next on MarketRound.
At Kemper Securities, we want to make our new name perfectly clear.
Introducing Everin Securities.
Everin, a vested interest in your success.
If you've been drinking in shore, there's a little something you should know.
Sustacal has more protein, less fat, and about twice as much calcium.
No, Sustacal can't add years to your life, but it might help add life to your year.
No one gives you more ways to add the impact of color to black and white documents.
Xerox Copper, a simpler way to do good work.
I travel all over the world.
I love to fly.
In fact, I'm probably a professional packer more than I'm a professional photographer.
So when I'm on Northwest Airlines, the plane becomes my home.
One of the reasons I like to fly World Business Class, it's more spacious, it's more comfortable.
Much better than how nobody brings me tea in bed.
As a photographer, I know that when I wake up, I'm going to be someplace wonderful.
This is my way of life.
There's a change in the wind.
Kemper Securities is now Everin Securities.
Everin, a vested interest in your success.
Payoffs, economic reports, congressional debate.
How does it affect your bottom line?
Go tell you.
That's tonight on The Money Club with Bill Griffith.
Hi, I'm Janice Lieberman.
Tonight on Fields and Deals, why executives of some non-profit groups rake in million
dollar salaries the taxpayers have spent and how a young boy's magazine subscription turned
into junk mail hell.
That's tonight at 730 Eastern Time.
Go beyond the headlines.
Get the last word of the business world on Business Tonight with Sue Herrera.
The presidential campaign has its first casualty.
President and Governor Pete Wilson has his campaign plagued by financial and management
problems has officially dropped out.
He made the announcement this afternoon in Sacramento.
I decided that despite all of your incredible generosity, with your money, your time, your
effort, your confidence, and your love, and as much as your hearts and mine tell me to
fight on, my conscience tells me that to do so would be unfair to all of us.
Meantime one of Wilson's presidential rivals, Senator Phil Graham, has been named to the
Senate Finance Committee.
That seat became vacant when Senator Bob Packwood resigned.
In Washington, lawmakers are being told the explosion of legalized gambling is playing
right into the hands of organized crime.
Congress is being urged to set up a national commission to study gambling, America's fastest
growing industry.
Hampton Pearson reports.
From high profile glitzy gaming casinos to lotteries and scratch cards, 48 of the 50
states now have some form of legalized gambling.
It's a 500 billion dollar industry.
On Capitol Hill, some lawmakers worried about a gambling epidemic want to set up a federal
commission to study the impact.
Members should be concerned about reports that the rapid proliferation of gambling has
caused the breakup of families and suicides and increased teenage gambling.
Congressman Wolf, who opposes legalized gambling, came under fire immediately from lawmakers
from Nevada and New Jersey.
The two states with the longest history of legalized gambling.
The real agenda of this effort is a complete federal prohibition of gambling.
Atlantic City is a perfect example of how a state, with the approval of its citizens,
is the best entity to determine what, if any, type of gaming should be permitted.
Ironically, just a few blocks away from that Capitol Hill hearing, the Mohican Indian Tribe
from Connecticut announced plans to team up with Sun International to build a 250 million
dollar gambling resort.
It'll be in direct competition with the Foxwoods Resort, the highest grossing casino, among
the more than 130 tribal-run operations nationwide.
The Mohican venture is another first.
The major financing came from Wall Street, with investors buying more than 175 million
dollars worth of bonds.
And the marketplace did an extraordinary thing, for a 175 million dollar offering, they had
almost 900 million dollars of potential buyers.
While investors continue to bet on the growth of Indian Tribe casinos, a former bookmaker
was busy telling lawmakers organized crime looked at legalized gambling as helping create
a new market of betters.
William Jehota, an ex-Chicago bookmaker turned government informant, was shielded from cameras.
Gambling is still a dangerous product no matter who runs it.
It's still consumer fraud.
It doesn't matter if the lab is doing it or corporate America.
How pervasive is legal gambling?
Lawmakers were told that in the state of Mississippi, the amount of money spent on gambling annually
now exceeds retail sales.
Hampton Pearson, CNBC Business News, Capitol Hill.
Is it time to cash in your chips or is there more room for the high techs to run?
John Murphy takes a look next on Tech Talk.
This is CNBC.
More than 100,000 American children just like these don't have a permanent home.
They're waiting for someone to adopt them.
Most aren't the babies we normally associate with adoption.
Some are older, some have brothers and sisters who want to stay together.
Some have a disability, but they all need a family to help them grow up healthy and
happy.
And they all need a lot of love.
For more information, call the National Adoption Center at 1-800-2-ADOP.
Adoption is easier than you think.
Do you think it doesn't matter if you do drugs?
Well, it does matter because drugs can make kids die and go away.
Then there'll be no best friends to play basketball with.
No little brothers or sisters to show how to ride a bike.
No you.
And that'll make a lot of people sad.
You're too special to do drugs.
Don't do drugs.
Don't die and go away.
What is historic preservation?
It's all kinds of people working together.
People like me and you.
Saving the places that are important to America.
What's important to you?
And making our communities better places to live.
Like your neighborhood.
If your memory, if our history, it's worth saving.
We're the national trust for historic preservation and we need you.
It's a game?
It's only a game.
No drug addicts have to come in.
It's a moral issue.
I could never give it to you.
One of the biggest challenges in the fight against AIDS is overcoming the myths and prejudices
associated with the disease.
At the Arthur Ashe Foundation, we're working to help people better understand the truth
about AIDS.
Because AIDS isn't their problem, it's our problem.
The Arthur Ashe Foundation for the Defeat of AIDS has the support of players worldwide.
Now we need yours.
More than 100,000 American children just like these don't have a permanent home.
They're waiting for someone to adopt them.
Most aren't the babies we normally associate with adoption.
Some are older, some have brothers and sisters who want to stay together.
Some have a disability, but they all need a family to help them grow up healthy and
happy.
And they all need a lot of love.
For more information, call the National Adoption Center at 1-800-2-ADOP.
Adoption is easier than you think.
You can make small miracles happen for a child, a family, and a community living in poverty
overseas.
For more information, call ChildReach 1-800-826-1110.
Trees help conserve our Earth's precious resources.
A world without trees is no world for me, or for you.
Conservation trees make the difference.
This is Eddie Albert.
Meet the National Arboretum Foundation for your free conservation trees for sure.
The debate over Medicare continued in Washington with dueling symbols.
The senior citizens group rolled out a 14-foot Golden Trojan horse up to the Capitol.
They rolled that up to protest the GOP plan to save $530 billion in health plans.
Of course, not to be outdone, Republicans trotted out a live 8-foot ostrich, accusing
Democrats of sticking their heads in the sand when it comes to Medicare's financial problems,
from paying for health to paying for education.
College tuition continues to rise by 6% this year, according to a survey.
While it is below the double-digit advances of the early 1990s, it is still twice the
rate of inflation.
In its annual survey, the College Board found that yearly in-state tuition, not including
room and board, averaged $2,860 at public four-year colleges, $12,432 at private four-year
colleges, $1,387 at two-year public colleges, $6,350 at two-year private colleges.
The survey also found that room and board rose between 2 and 4 percent, making the total
cost $17,640.