>> paul:all street toastthe rket comeback of 2009. the dow, nasq and s&p 500 all ma remarkable runs after hitting fresh lows in mah. susie: talk about remarkabl runs-- my co-ahor paul kangas bids farewell to "nightly busine report" after 30 years of briing you the best of good buys. we'll toast e man who's been call "the walter cronkite of business news." >> paul: i'm paul kangas. >> susie: and i'susie gharib. this is "nightly busess report" fothursday, december 31-- new year's eve. "nightly business port" is madpossible by:

this program is made possibl by contributns to your pbs station from viewers like yo thank you. captioning sponsoredy wpbt >> susie: goodvening and happy new ar, everyone. when t closing bell rang here athe new york stock exchange

this afternoon, e champagne was owing. but there wasn't much to celebrate for toy at least: all the major stocaverages were down onhis last trading day of009. still, the results for thehole ar were effervescent. thdow surged almost 19% in the past 12 mohs. the s&p 500 index jued 23.5%, and thnasdaq rose almost 44%. ika miller takes a look back at what was a nail-bing year for inveors. >> repter: the mood heading in 2010 is a lot more upbeat thant was a year ago, rticularly for stock investors. en, many people were scared buy stocks the nationas in the midst of recession and many fancial institutions were shaky footing. it w the worst january ever for ths&p 500-- a drop of nearly 9%. the nextonth, there was an 11% declin- the second worst february on record. s&p's sam stovall points out even presidentbama's $787

billion stimulus plan coulnot calmhe markets. >> i think it wabecause of the y it was relayed to the public. that there w not a lot of detail. and thereforinvestors didn't appear to beonvinced, cause it didn't sound if the news deliverer was... hself was convinced. >> reporter: omarch 9, the s&p 500 hit 13-year low. but mid-month, a turni point. the fed announced ans to pump re than a trillion dollars i to the economy many people beeve that's what finally stped the selling. oppeeimer's carter worth isn't one of them. >> it just happeneto be the mont. there's no ent or data point that mks that other than people were finished sling. that's it. >>eporter: the stock market post a more than 8% gain in march. and to manpeople's surprise, stocks kept trekkingigher for x more months. by october, the s&p 500 had gained more th 50% from its march low. but stratest peter boockvar

says investors weren't cvinced the covery was sustainable. >> we did finally see owth in the third quarr, but it was still sluggish and still vy much government duced, whether it was the cash for unkers prram, whether it was the homebuying tax cdit, or the fed's asset purcses. a lot it was government largesse thagot the economy going again. the s&p 500 lost 2% in octob. t it turned around in the finatwo months of the year. posting gains in both vember d december. that's oneeason many stock investors are hopeful 2010 wl ring in more gns. erika miller, "nightly busess report," nework. >> paul: wall street began t final day 2009 with a modest sell-off. thselling came as last minute portfolio adjustmes overshowed the good news of a much bettethan expected drop of 22,000 in new joblessenefit clai. light, but persistent sellg sent the dow down 61oints by

noon with the nasd off just ven points. the market stalized in slow afternoon trading until late burst of sell programs resuld in a broly lower close. e dow ended 120.46 points lower at 10,428.05. this week,t fell twice and rosewice for a net loss of 92.05 points the nasdaq fel22.13 to 2,269.15 today. it alsfell twice and rose twice this week for anverall loss of 16.54 points the s&p 500 dropped 11.3to 1,115.10 todaynd for the week down 11.38oints. in the bond mark, the 10 year note fell 11/32 to 98/32 tting the yield at 3.84%.

>> susie: which y will home pric go in the new year? they're on theend in many parts of the count-- thanks to helprom uncle sam: low interest rates, a homebuyersax credit, and foclosure preventi plans. but despe that, as stephanie dhue reports, housg experts say 2010 could be another painful year for homwners. >> reporte gloomy is the word that may best scribe the housing ouook for the new ar. the appraisal institute's bi garber ss housing, while making stridestill has a long way to go. >> i think thearket is suffering a significt hangover from the mtgage blowout of thisast decade and that's still starng to ripple down with distress sales. >> reporter: governmt efforts to prevent foreclosures ven't

kept pace with the record mber of borwers in distress. amrst securities analyst laurie goodman saythose effos may only postpone the day of reckoning. that's because there are sev million delinquent loans tha will likely end up in foreclosure in the nt year. >> 1 of borrowers aren't payingheir mortgage, at this time, and that is an absutely frightening number and they re join by 250,000 additional borrers each month, that's where the problem . >> reporter: therere also dden problems with propertie that have gone throu the foreclosure proces but have yet to appear on the mket. al estate appraiser don boucher has trackeareas in the distant suburbs of washingto d.c. and seelarge numbers of forecloses. but few of those pperties have gone up for sa. says this shadow inventory could tr up hard-hit neighborhoods at appeared to be stabilizing. >>here's all this shadow foreclosure inventy out there and it hasn't comen the market yet.

if at some point in time, e lenders do put that inntory ck into the market, then tho price bump are justoing to go back down ll the additional inventory absorbed. it's the classic supply d dend situation. >> reporte many economists believe it could te a couple of years before the supply demand balance returns to noal for the using market. for 2010, that mns another tough ar for sellers a a good year for rgain hunters. stephanie dhue, "nightly business report," washgton. >> paul: with the hoing market likely to remain underressure, constructionobs-- both residentiaand commercial-- will still be hardo find in the coming yr. the cotruction industry has lost over 1.5 million posions since the cession began and it's still losg workers. as jamila trindle report that addsp to a lot of people hoping the newear brings new construction pjects. reporter: luis pineda used opate backhoes and excavators for a constrtion company, now

he's alying for bs on-line and looking fowork at this day labor te in arlington virginia. >> right now, i'm t doing anything. i can do anying if i find a job, but i'm unemployed nce october 2. reporter: pineda recently picked up few hours shoveling ow and occasionally someone comes by looking for painter or a mover. but it doesn't p nearly what fu time construction work does. >> they dot pay more than $10 an hour over here ana heavy equipment erator can make $20- $25, but there's no more tho kindf payment because the situation is really rd. >> rorter: pineda never expected tbe here because he is a legal iigrant and has a cense to operate heavy equipment. buhis situation is becoming more common says andretobar. tor runs this center to give day laborers a safplace to wait for wor >> we're gettingore people that are losing, that are legally here, that are ling thr jobs from construction companies that they re on or even landscape and ming

companies. with unemployment in the constructionndustry almost twice wh it is in the rest of the economy, more laid o workers like luiare showing up at day labor sites like this one. problem is: even here, where work is mporary at best,obs arscarce. pedro perez says it s gotten so slow,e's thought of going home to mexico. >> mt of the time, i've been busy, but aboutwo years it's really low. it's rlly low, so that's why people standing here manhours a day. >> repter: more waiting might be in store for 20. even if thconstruction indury starts to rebound, it'll be hard to rlace all the jobs lost over the past fe years. associated geral contractors of america chief economist k simoon says even if there is some help fromederal stimulus money, big comrcial projec will likely still be on ho. >> the fks who've been doing building construction: schoo,

hotels, offices,tores. theye still going to have a ha time in 2010. >> reporter: cstruction workers often mo from one part of the country to another to find jobs, but with coercial and residential ilding down, all over the countryworkers have few altertives other than hoping something wl change. >> we need it, cause we ed a job. we need to feed the mily. >> reporter: jamila trdle, ightly business report," arlington, vginia. >>aul: now let's look at the stocks in the news tight.

>> paul: and those arehe stocks in the ws. >> tom: paul, i'll be watcng the calendar a whether or not the january effect com in to play. the january effect is the tenden for stocks to rise in

the first month of the year. but it hasn't ld true in the past two januarys. in009, the s&p 500 dropped more almost 9% the first mth of the year as erika miller reported elier. the bear market s still roaring with banks writing o billns of dollars of bad debts and the unployment rate rising fast. 2008, january was also a toh month, with the s&p 500 down more than 6%. but historally, january is a pretty good month fostocks. since the early '70sits proved the single best month of returns >> paul: what about the nuary barometer? >> tom: that's the idea at as goes january, so does threst of the year. clearly, that didn't holtrue this year and you can't testhe januarbarometer until 11 months later

>> paul: tomorrow, a new ye's day special: o annual "investment review and pview" of the economy and the mkets. >> susie: a.t&t's relatiship with tiger woods has run its course. thcompany said today it will no longer spsor woods, after weeks of scandal iolving his persal life. the telecommunications gia had not used wds' image extensively in its adverting. but a.t&t's logoas on his golf ba accenturand procter and gamble have already scaleback their marketing campaigns feuring woods. >> pl: it's d-day for 13 million time warner cable subscribers. at midnight, thecould lose fox programming. both companiesre negotiating, but without a last mine deal, fowill pull its signal. at iss: how much time warner cable paysox in retransmission fees. time warner has agreed to 30 day cooling off period fox hasn commented, but the

f.c.c.s urging both sides to make a dl. >> susieand finally tonight, it's dember 31, the end of the year. moremportantly, it is the end a long run-- more than 30 ars on this program for my c

anchor, paulangas. before wwish him the best of good-byes,e thought we'd take a look bk at what can only be termed a "veryistinguished caer." test. ♪ >>nnouncer: the "nightlybusine " >> sus: the year is 1979, and "nightly business port" goes on thair withaul covering stocks. >> paul: the stock maet's performance in the fir month of each new year has generally foreshadow its overall perfmance for the remainder of the particularear. prices on the neyork stock exchan continued to plunge earlier today in an tension of last friday's recor e-day loss dn to the 2246 level. >> susie: over the years as coanchor paul is theteady voice of reason throughews events gd -- >> another major milestone for the dow, a close abo 10,000 fothe first time in the blue-cp's history. >>usie: and bad. >> paul: america still els from a staggering attack.

>> susie: over years his list of interviewuest include we-known names inside and outside the wld of business. >> pau is value investing as put forward by graham and dd of a value any longer? >> yes, it i paul. if you think about it from common-sse standpoint, when you buy ahare, you buy a share in order to participatin the profits of tt corporation. >> paul: overhe years has ur celebrity really onalance been a positive o a negave r your family? >> well, itas to be a positive. i mean, i've had a lot of gat things happen to me, and i've gott to be well known and respected around th country. >>aul: i should say. >> yes. and in the family, you know, gets a lotf recognition for that. >>usie: over the years his friday "rket monitor" terviews became the hallmark of his wk, a factor that led one newspaper to dub him the lter cronkite of business news. i just want to say what a

pleasure is been to workith you and to ierview with you for almost the last 15 years. 's always been challenging i dealg with somebody who kns theield so well that i know whatever ialk with him tter on my ps and qs ve and have my facts right. >> paul? i just looked to see when my first show was with you, andt was 1984, 25 years ago. altogether we' done 50 shows together. >> paul, it was 26 years ago that you first invited to appe on the "nightly business report." that was in 1983, a dow 120 we've be through three receions, one market crash, and two of the biggest bea markets in wall seet history. it's been a longun, but you've been a voice o reason to "nbr" viewers through it, notnly invalule, but priceless for the viewers. we're all going miss you. congratulations over 30 years and the best of good-byes. >> susie: and this year, two specl recognitions of three decades of hard work.

a lifetimechievement emmy award by the national academy of television arts andciences, and recognition in a big way. literally his picture is emblazoned othe tower at th nasdaq market site in times square in neyork city. seven storiesigh above the crossroads of e world. and paul while tonight december 31st, mar an ending, it also marks a beginning. d it's new year's eve, a new chapter your story. and i just wan toay, as i was looking at all t highlights, i was thinking of our stories over the lt 12ears. we've shared so many memoes. you know as i was inking about them, a lot our mories happened right he at thnew york stock exchange. do you remember we ranthe bell for the 20th anniversary o "nightly biness report"? th 25th anniversary. and just in january, you were hereith me and we rang the bell for the 30th anniversary of "nightly busine report." and i guess, you know, one ofy

fondt memories of our time togetherver these lt 12 years was on december 31st, new year's eve, 1999. were preparing for the llennium show, and you and i cided we would wear blac tie, as we are tonight. it was a speal time as is tonight. and i just reflect back that it's beea lot of fun wking with you. yove been a terrific coanchor, a wonderful friend, and i rlly am gog to ss you. >> paul: and ditto on the terrific coanchor far as i'm concned. it's been agreat experience. wonderful crews d a lot of od stories. you're an excellent interviewer. >> susie: wel you're the best. i justant to say that m sure i sakfor everybody fr "nightlyusiness report," ether they are working with you in miami or up here inew york, we'rall whing youhe best of good-byes. >> paul: that's vy kind of yo indeed, susie. very nice indeed >> paul: as end my long career

th n.b.r, let me go back to thbeginning and compliment george dooley,he founder and long-time present of w.b.p.t. 2 publ tv in miami, for recognizing the ne for more business news on televion in the te 1970s. decided it was time to put together a pilot pgram and had the good judgment toelect linda o'yon to develop it. we know she did exemplary job and i'proud to have been a part of itrom the start. like many blic t.v. pructions, n.b.r. d not have deep pockets, but we werlucky in finding people th a deep devoti toward building it into the be daily program dedicated rictly to business news. intereingly, many of the people w joined us when we we just a pup are still with us now that we arell grown up. i'd like to give a speci mentioto my long-time stocks prucer johnnie streets, who can ax more information out of a computer than yone, anywhere toxplain why certain stocks are movingither up or down or not moving at l despite a

major develoent. he's certainly me my job eaer over the years. thank you, johnnie ! actually, there isn't a peon on the n.b.r. staff cluding in our buaus that i wouldn't like to single oufor being outstanding and credit to our goalf being the best business newsrogram of all. but time cstraints prevent that. however, they mu have heard my personal mana which goes like this: "good, better, best, never let it rest, 'till the go is better and the better ithe best!" and speang of the best: there is my beautil wife peni, who from the day i joined b.r. was supportive and helpf in every y imaginable. and s, i confess that she's the one who buys the tiethat haverought so many compliments from ouriewers. thanks for all your helppeni! let me also extendy sincere gritude to you, our viewers, who have been st supportive over the years. i mustell you that most all of the viewer critism we've received has been a

cotructive nature, much of which has be incorporated into the prram format. and, ocourse, i thank those who have made donations the pbs system making prrams like n.b.r. possible. with that i d farewell and lo forward to new challenges aheaand for the last time on "nightly busess report" extend to all of u my wishes for the very bt of good byes. "nightly business reportis made possie by: this program was madpossible by ctributions to your pbs station from viewersike you. thanyou. caioning sponsored by wpbt

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