ah. [ laughs ] ptioning sponsored by wpbt >> paul: banof america out wi a bombshell. ceken lewis is retiring! he'll leave at the end othe year after snding months in e hot seat after buying merrl lynch. >> susie: a de dissolved. pens pulls the plug on its deal to buy saturnso general motorsays it will shutter saturn for good. >> paul: it's a thirquarter to rememb. sam stovall jos us as wall stre wraps one of its best quarters in years. he'she chief investment strategist at standard and poor's. >> susie: then, dot-com and beyond. the number of possible w addresses will sn explode. we talto the man in charge of

keeping tabs on where u can surf in cyrspace >> paul: i'm paul kang. >>usie: and i'm susie gharib. this is "nightly biness report" fowednesday, september 30. "night business report" is made possible by:

this program was made ssible by conibutions to your pbs station fromiewers like you. thank you. 7//& >> susie: go evening everyone. ken lewis is stepping down a c.e.o. of bank oamerica. in surprise announcement late day lewis told the board of thbanking giant he'll be retire at the end of theear. he's leaving after a tenure maed and marred by the bank's puhase of merrill lynch january 1. lewis and b.o.a. have me under fire sin it was learned merrill gave billions of dlars in bonuseso employees while getting bailout money from t government. lewis says he's confidt in leaving now, becau b.o.a. is ready toeet the challenges of a global economy. the bank says lewis s a key pler in establishing it as a global finanal franchise and now it wl look for a

succsor. joining meow on the phone for the last analysis of lis' retirement from b.o. is dick bovebank analyst at rochedale securities. her hell >> susie: why now? y the timing of today's departure? >> i think there are jt too many goverental actions being brout against the company. i think that newyork city and ohio are both sui the company. you've got the s. c., ngress, and a federal judge all nting to do something against the compan so that's the reason why now. >> susie: do you think that the obama administration had anything to do with lewis' departure? >> well, to the degree that they controlhe s. e. c., the answerould be yes. but i'm not sure it's at the top of the agenda. >> susie: all right. who will be lewis' reacement? could yosee it a beingrom the outsid or somebody inside the bank? >> well, the t people ihink uld be in top position uld be brian moynihan, who is the head of e retail bank, and the rson that i like the

best is barbara desoures,. >> so you think i will be an insir? >> i belve. so it would be against the tradition d culture of this companto take one from the outside. >> susie: what abo sally kraucheck who just got a big bver at ban of america? >> he's not i the running because she's n a bank of america peon and she h no history at the comny. >> susie: at do you think will be the nullone job of the new c.e.o.? >> you've got to control the loan losses that are in the company. i think that the acquisitions of merrill and countrywide despite what peoe think, were huge successes for e compy, they befited the bank. the area where t bank has serious proble are in the loan losses, that's where the grtest atteion has to be paid. susie: bank of ameca stk is up in after hrs tring. would you be a buyerof the tokt these levels, around

$17? >> yes i think the potential of the stock is enoous given that the fact that its loa losses or the next few years should contract from billion a year down to about $10 billion a ye and that will causearnings to soa >> susie: all right, dick, thank you r coming onhe progm. >> thank you. >> susie: my gue tonight, dick boef. >> paul: it's the end the road for gm'popular saturn. in a surprise annncement late todageneral motors said penske automotive scrapped lks to buy the sarn brand. e of the world's largest car dealer networks peke was ncerned it might not be able to get vehicles after its nufacturing contract with gm ran out. gm and penske had en working on a deal since june. gm now ss it will phase out saturn and i distribution network of 350 deerships. we'll arn more about this tomorrow, as we talkith gm's global marting director michael di-giovannabout the automar's september sales

numbers. it was a roughtart for wall streetoday as investors focused on a weak private reading on employment and a survey swing a contraction of mid-west manufacturing aivity. by 10:00.m. the dow had tumbled 0 points with the nasdaq off 28 points. cash-laden investors bought to the weness lifting the dow to point gain by 1:00 p.m. wit the nasdaq up 11 points. energy andech stocks led the comeback, helpinthe market ose well above the day's lowest levels.

>> susie: it's one othe biggest initial publicfferings is year: late today casino operor wynn resorts raised more than a billion ana half llars in an offering for its casino and resort inacau. the stock begi trading in hong ng on thursday. september has beenusy for new public offerings. after a drought the i.p.o. mark due to the recession. so is this theeginning of a gusher of newly puic companies? scott gurvey reports. >> repter: with the market rally, it s only a matter of time before the grn shoots of initial public offerings sprouted. afr seven months of a virtual ut down in the ipo market, the number of neissues has been risin although it remains well below last year's levs.

last week, a123 systems nt public on the sdaq. this cpany makes batteries for elecic cars, an industry targeted for fundingn the economic smulus package. investors have aeady bid its stock price up by 50%. but david menlow of ipo financial network worrs they are being o speculative. the big trap for investors are gonnbe those companies that come intohe marketplace as a result any stimulus spendi that is coming around the coer, next week, next month, in the nextuarter, what haveou. these e companies that will not immediately benefit om whatever money is being thro aroundut it will be the perception thaeveryone will get trapped into. >> reporter: in fact market performance for seral new issues h been poor, with pric staying around their first trade. two real estate invement trustsad rocky roads to market this month. two others were caeled. willm smith of renaissance capital says the currentarket reminds hiof the 1970s.

>> it was a very troubsome period. there s no ipos during that period. ght after, when, in the mid later seventies, the ipoarket did come bk. however it took a lo time to do that. it was more in dri and drabs ratherhan a big bang. and so we're notxpecting any kindf a big bang anytime soon. >> reporr: the experts warn investors to pay particula attention to each ecific offering. this is no they say, a climate whera rising stock market will lift every ipo. >> obviously the big questn how are you gog to find the rit deal? it's going to be really as mple as investors doing thei homework and not relying on other ople to say hey this is a great stock you got do it. reporter: there is still a lot of money sitti on the sidenes and many private equity firms havinvested in companiethey eventually plan to take public. that means next yearay be the yearhe ipo market returns to some kind of normal. scott gurvey, "nightly biness report", n york.

>> susie: the ternet is a litt more global tonight. the commerce dartment today agreed to relax its control er the non-profitompany that sets the rules for web site domai names. theory, it means the intern will nowetter reflect its global footprint. in practice, it meanstay tuned for a ton of new places surf, ich may be good or bad news darren gersh explains. >> reporter: just when youhink you're a masr of the internet, they throw in something new. >> a dot sport, you kn or a dot berlin or a donew york city. >> reporter: that'rod beckstrom, c of the internet corporatiofor assigned names and numbers, icann for short

icann is likthe internet's postster general, making sure everwebsite has a unique address. and the number of poible addresses ll explode next year as icann expands the ighborhood beyond top-level domain nam like dot com and dot org. >> when icann was eated by the us department of commee 11 years ago, t mandate, right ere in the top was "you need to create competitn in this marketace for names by eating new top-level domains." and in general people li to have optionsnd choice and it ads to innovation. >> reporte so how much innotion and choice will people have that they didn have before? what they didn't have befor is firly, they had to have latinate characters, wthink as english characters all the w through the dot com or dotet. that is gointo change. >> reporter: thameans a website china will be able to write its domain name usin chinese characte. d for companies: instead of, say, coke.com, yomight simply use ke. but whericann sees choice, many businesses see added co. after the pansion, companies will have to register ndreds

of new domainames to protect themselv from cybersquatters, those people who register valuable online nameand sell them off to the highest dders. steve delbianco reprents e- mmerce giants like ebay and verisign. at a rent congressional hearing, he argued n domain names won't lead to more innovation. >> dot food n't create a sing new restaurant. it won't cate a new webpage. it won't create new restrant reviews or oine reservation tes for restaurants. they've ready got those. >> reporter: beckstrom says en dot com was create critics said theame thing. >> someone said we are goi to create this t com, but no one is gng to use it. why is there any reasoto have dot com. we don't need it. and the ality is that dot food may may not make it. dot new york city may or mayot make it. but why not let the free mket decide. >> reporter: this is an important day for icn: the u.s. goverent has agreed to relax its corol over the non- profit company, makingt more internatiol.

>> over 10million new users will come to the internet th year. 95% of those are outsidehe united states america. so t internet is a truly global pnomenon and we need the buy in of the commity and steholders worldwide. ey should be governing this collorative body, not just one country. >> reporter: online perts say domainames matter less now, since st people find sites rough search engines. but annalisaogers thinks dot een will be different. she's setting up a nonrofit registry tt will help people find companies a programs that help the environnt. >> i think it's a big deal f the environment d for the planets a whole. the movement is happeng and dot green gives it a chae to happen onlin >> reporter: y can see the complete inteview withcann's rod beckstrom at nightly siness report on pbs.org or pbs.dia or pbs.interesting or pbs.watcor just plain at pbs. just kidding, least for now. darren gersh"nightly business report," whington.

>> pau now, let's take a look at some stocks in the ws tonight.

tonight marks the end of t third quarter onall street and a ptember to remember. joining us for a look at t quarter and wherwe could be head next is s stovall chief instment strategist at standard and poor's. sam, good to see you aga. >> thas, paul, good to talk to you. >> paul: what a bullish quarter it was. look at these gains. t's have a look at som of these averages, ey are really up. 15% andetter. what do you ma of this quarter, why all the llishness? >> wel paul, cerinly it was a good quarter. it was the fifth best third quartesince 1929 r the s&p 500. and i tnk certainly it's because we have investors who

are hoping that the third quarte gdp wil come in stronger than ty expecte because of a weaker yearver year changes in energy prices and a weakeni dollar that that probabl couldignal an provement that third arter earnings results. >>aul: what sectors ledhe market higher in the quaer? >>ell, with thiskind of perfornce i think you'd be priced if it were not e cyclical sectors, andes they were the leaders. industrials, nancials and material stocks all led the way higher by about 19% or so. paul: the weake of the sector was? >> well, basically a risin ti lifts alloats, so these three were higher, but they we dinitely the defenses of consumer staples, hlth care and- >> paul: looking ead to the fourth quarter, can we eect the gains to continue, sa >> i thi the gains will continue, but probably not at the same magtude.

october,hich is usually a relatively flat nth i think could end up ing a little better than expected because i is t first october since the new bu market, and traditnally the first month following e end of a bear marketoes ratively well. economic growth is likely to contie to be working its way slowly higher, then i think that could help ll prices with them. >>aul: what times of stock do you thk will lead us higher should we go tt way? >>gain, i think that itill probably be the cyclical eas inhis case consumer discretionary,robably industrials an technology stocks cou do fairly well. >>aul: what sectors wld you solutevoid over the next three month >> again, would tend to y th if the market is i an per trend, a trend is your friend is the old sayi, traditionally the fensive areaare the ones that lag they are good dividen yields, but health ce, consumer staples antilities probably will be under performs on a

price basis. >> paul: we'vehad a lot of analysts saying at the market has gotn ahead of itself when u compare to it themprovement in th econy. what are your thohts? >> well, pa, i think what aditionally happens is that investors undereimate the rength of a new bull market. there's a t of cash onhe sidelines, a lot of people have been waiti for a correction in th stock market at really has not materialed. and if histo is any guide, and certaiy not gospel, we could he 1200 for the s&p 500 by the summer of next year. >> paul: where do you see the standard and poors500 at thele of this ye? >> i think certainly higher than where we a right now, probablypproaching the 1100 lel. >> paul: 1100 lel. fair eugh. any last thoughts for our viewer as we end the third and start the fourth quarter? >> well, ul, certnly i wouljust say that we ar looking for an ecomic recory, probabl the word recove will not be spelled with the letr v, but

probly with an eloated u. so i wld say be optimistic t not overlyo. >> paul: sam, i want to thank yovery much forsharing your views with us oncegain. >> my easure as always, paul. >> paul: my guest,tandard and poor sam stovall. >>usie: tomorrow fed chairman ben bernanke testies on capitol hi about giving the fed more power to oversee bas. >> susie: ly 85 more shopping days 'til christmas and wamart is using allf them to attract bargain hunters. the retailer is pricing re an 100 toys at ten dollars each. they include classic boa games, popular dls and action figures. some items are mard down more than0%. lastear, wal-mart offered just tetoys at ten dollars. the prices are aimed a recession-mindedhoppers keeping a tight re on the purse stngs this year. >>aul: chevron has a new chairman and ceo and he'll te threins at the end of the year. john watson s been with the nation second largest oil

company since 1980, most recently as vice chairn. current ceo vid o'reilly is retiring after 41 years th the company. euquu

>> susie: here a look at what'sappening tomorrow. september auto sal are released along witthe august reports onersonal income and construction spending. in the moneyile tonight why the sidelines aren the best place to be you're planning r retirement. here's charles benne sachs vice psident and wealt manager at eveky and >> why safe ist always safe it s mark twain who said that h was re concerned about the return of his money than t return on s money. in this timef uncertainty, it is this very reason y investors have so mu cash on the sidenes these days. and who can blame themfter the ar we all just lived through in the investment rkets? are in the midst of a globa slowdown the likes of ich we haven't seenn decades and while manyee glimmers of light at the end othe tunnel, some sesustained darkness for some time. cash holdings while genelly safe from a principal protecon standpoint are far frosafe when it comes to meeng future spending goalsrimarily due to me and inflation.

timeecause you are probably going to live longer tn you think, in fact there's ane in fo chance that you or your spouse will liventil age 95. inflation acts as e hidden tax always worng to erode ones buying power with destating results er long periods of time. the solution beg an owner of a diversified basket of businessesaffords one the opportunitto share in the ofits of those businesses. and while indivial businesses wi fail, the overall basket tends to do well ovetime. its also important to alize that its n necessarily an all or nothing game. studies have shown tt while humansend to gravitate to an all-in or all-t approach, having some blend of cash, stocks and bonds is st appropriate for e vast marity of investors. dot let the powerful feelings of fear and greed cloud ur judgment and derail your lg term plan. i'm charles bennett sachs. >> paul: recapping today's market action stoc slip as wall strt wraps a winning quarter. the dow st almost 30 points and the nasdaq fell 1-1/2 points. to learn more about the stors

in tonight's badcast, to watch our streaming video and to te pa in our daily blog, go to "nightlyusiness report" on pbs.org. you can also ema us at nbr@pbs.or th "nightly business report" for wednesday, sepmber 30. i'm susigharib. goodnigheveryone. and go night to you paul. goodnight susie. i'm paul kangas wishing all you the best of od buys. "nightly business port" is madeossible by:

is program was made possible contributions to your pbs station from viewers like u. thank you. captiong sponsored by wpbt captiod by media acss group at wgbh access.wgbh.org sturbed.

i can't go back. hey. yeah. [ laughs