Economy Weaker Than Thought, Big Banks Hacked

Matt Nesto analyzes the morning busines headlines.
3:00 | 09/27/12

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Transcript for Economy Weaker Than Thought, Big Banks Hacked
September 27. On ribeiro -- New York breaking news. 3 different pictures this morning that the economy one sunny the other two overcast joining me now to go beyond the headlines as madness cohost of break out on our partner Yahoo! finance good morning -- One -- start with the numbers the final estimate of GDP for the second quarter has been revised down to a rate of just one point 3% and durable goods orders dropped thirteen point 2% in August the biggest drop in more than three years. How big -- deal -- these -- Well you know it's -- to the average person looking at the economy a very big deal of a look at the Wall Street here today stocks kind of drifting higher we have been weak for the for the last ten days or so. You know where -- you know investing you have to kind of separate the two oh lead wanna -- -- -- -- in the debates next week trying to. Defend that economic performance at one point 3%. But that durable goods numbers shocking is that sort of a forward looking order in terms of what factories. Are seeing coming in and we see that 13% drop. OK look at that but -- underneath the transportation. Component. Of durable goods orders which is the largest was down 35%. We haven't seen a month on month drop like that over twelve years so. -- very very startling and then even -- you back out which Wall Street does the ex transportation number. It still came down one point 6% they were looking forward to actually inched up. About two tenths of a percent so there's no way. That you can say that durable goods at anything positive really to say in GDP is due this week -- in that real danger zone right now and we have a Federal Reserve. That is basically said we'll do whatever we need to do to get it done for as long as it takes -- -- dollar amounts -- we get open ended fed easing at our back. But the market this is very very nervous right now and -- and what's happening over in Europe again right and you have people look into you know maybe book some profits. But let me ask you something going back very quickly to those durable goods numbers can we tie that to something specific like the drought this year where aren't. Where is such a huge drop coming from. What as those in the transportation orders -- their very. Choppy there were down 35%. Another big drop we saw was in machinery which is just nervousness about the economy going forward we've talked a lot to guys about right -- the different forecast -- -- fed action when they see caterpillar recently had a weak forecast Intel's had a -- forecast so we're seeing some of these industrial companies reining in their arousal building up their inventories at the same time. Which is. You know what they typically do it's a lot easier to put stuff in the warehouse it is to -- up and cranked down the factory floor and hire and fire people -- staffing at says the center etc. but we're seeing definite -- weakness in those particular. Areas but that machinery the manufacturing the transports. All certainly cannot -- -- Right now there that's a tiny little bright spot -- this morning their work 359000. New jobless claims last week that is down. 161000. Does this counterbalance. That. Sad report. You know a Cadillac because it's. I put I was on Twitter it's sort of bizarre -- world they're -- -- because. You know I'm like stocks rally in the phase of the worst durable number in three years. It's it's just it's -- -- in the relativity that we live in here and you know so yes that is an improvement but 359000. People in a week. Filing initial claims that's really not out of market improvement we look at things that four week average is that still higher -- about 175000. So. Yeah that's a volatile number that's prone to revisions. You know the -- okay. I gotta say how the stock market can still I think Americans are really good -- an irrational exuberance I think they just. He liked to be optimistic on that we. We exuberant. Effective at so let's talk Europe -- that you brought about the pain and Spain is getting worse and worse the drama and Greece what's the latest there. Well there's a couple of things so were waiting to find out the details of the Spanish budget -- the budget deficit. How much money they're gonna need to -- close that gap. And what effect that is going to have on the Spanish banks which -- a lot of the existing debt. It's all tied into that promised bail outs from the ECB. So in the next. Did he basically. We will get a lot of details out there in terms of and -- -- starts with a budget. And this is -- -- war you know that we see what's going on in Greece who see what's going on in Spain maybe Italy riding in the streets. They're dealing with their budget issues we're still deferring -- this it will come to American shores some day unless something is done we talk about the fiscal cliff. But it's a far cry from rioting in the streets and then people you know career. Public servant employees losing jobs and pensions and benefits that's never got to be a pretty thing no matter what country -- Timing and you hear stories coming out of Spain right now people rummaging through garbage to make ends meet commanders talk of starvation and we're talking about. You know European nation it's it's shocking. Be well -- been weakened to -- a New York exactly point out exactly the same thing now in jail extra. Aren't just about -- -- -- big banks PNC and US Bancorp reporting problems with their web sites possibly the cyber attacks that's what we're hearing. So how concerned should the general public me about these incidents. Well. Even the thing is who we need to be more concerned you know you hear the ads for you know protect identity theft and whatnot but they're so commonplace. That you know that they're like car alarms going off sounds like guys -- this is not me. You know look we go on but you know just in the past couple weeks as he JPMorgan and Bank of America Wells Fargo now US bank. So -- is happening you know I mean there -- -- as good as security gets. Hackers catch up to and so -- it's an ongoing cat and mouse game. But again you know I liken it to car alarms -- -- those things going off -- Garrett whatever. Right in it what do what do unity right in stopping online banking that's not likely hands and all right not as a thanks so much.

This transcript has been automatically generated and may not be 100% accurate.

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