Transcript for Tiffs Over Fiscal Cliff; Drought At Olive Garden
Your latest in business and finance from ABC news now. And you watch -- live coverage of the opening bell on ABC news now ringing the bell this morning -- -- -- -- -- -- -- -- The group providing assistance dog children in the gulf of disability they're up there. Doing the -- celebrities and high -- -- in this case an initial public offering. Some beyond and -- reportedly did the dog in the right there you nice way that's what -- -- for today Thursday December 20 -- -- Cutler in New York while there may. Actually be some behind the scenes changes succumbing to the New York Stock Exchange the big question is are they gonna -- traders and your investments joining me -- discuss a business headlines this morning. Mike San toll senior columnist -- our partner Yahoo! finance Mike thanks for being with us today. Jordan morning hey good moratinos a listen this change in ownership at the exchange tell us about this deal I would ever see any kind of an effect on on trading. Short answer is no lot of changes have swept over stock trading recently -- past several years most of it now electronic there's really happened. On the floor of the exchange but that really is not going to be impacted by this proposed deal which in which the the ice -- they called in an Intercontinental. Our futures exchange is going to be buying and YSE and Euronext which owns -- New York Stock Exchange. This is really just and a continuation. Of a wave of mergers in the exchange areas to really save on back office technology cost. And things like that and not so much about changing the mechanics of trading -- really when investors see and feel. I see are so behind that are so I wanted to get to you about this too big reports -- in the past our first. A final estimate of GDP for the third quarter the Commerce Department saying that the economy grew at an annual rate of three point 1%. I want to digest that number and a -- that we've also -- weekly jobless claims they were up 171000. At 361000. Give us your take first with that GD. The GDP number I mean very very slight up pleasant surprise it was revised to a bit higher than before looking for really because -- and inventories and some. Other estimates that have been updated it basically shows in the third quarter the economy kind of picked up to a decent rate of growth -- what passes for decent rate of growth these days. Now that's kind of an old number -- keep in mind that's before hurricane -- before a lot of the things. That really started to impact business so the fourth quarter's going to be slower but at this point the upward revision to third quarter means the 2012 on the whole kind of was a continuation of the slow and steady pace of economic growth. Tom all right and I want to get your take that on those jobless claims up with 171000. Kind of telling a similar story this is right in line with estimates basically about -- -- 60000 weekly claims. And again it's sort of settled into this range of weekly jobless claims well below. 400000. Not 40000 -- important because it kind of is a dividing line between. A labor market it's getting better and worse so clearly it's still a slowly healing. Essentially labor market -- okay. Well -- as a -- I guess if in in terms of looking at valley. I -- talk to little bit about the fiscal -- nine yesterday the markets at a pretty strong negative reaction when house speaker John Boehner came -- made it clear. -- there's still no deal yet between the White House and Republicans. When the markets swing on these kind of announcements and it isn't a sensible swing I know -- kind of seems odd to try to you know read the tea leaves for how traders react to this but. Seems to be going pretty fast and furious -- reactions. Well it isn't by the way there's very little else in terms of corporate news it's a slow season so everyone's fixated on this it is the one big potential swing factor in the economy looking into the very beginning of 2013 so therefore the markets. Gonna build up certain expectations and by the way in the past month -- -- stock hundreds of about 7%. -- partly in anticipation. Of some kind of a deal it's -- avert the full fiscal cliff and anytime that. Expectation gets -- visited yesterday the market's gonna -- at least -- -- you know lower risk mode which means selling some things I think that's what we're seeing right now it's not logical long term basis but it's understandable in the context right now an artificial deadline. And -- stock market that want some kind of resolution. -- all right it Darden Restaurants. Owner of the olive garden red lobster or smaller chains like capital -- the company coming -- -- that they're net income fell. By nearly 40%. For zero. In the last quarter what is it what does that that the source the problem of this. Couple things -- -- dining right now it's a very tough business it's very. Deal driven it's very promotion driven. And they had a couple of promotions and olive garden and red lobster and some menu refinance it just didn't seem to take off with customers the advertising campaigns didn't really send the message that customers wanted to hear necessarily about the new menus and about what kind of bargains they were gonna get and they had worn by the way Darden had warned. That in fact this quarter was not looking good -- came in and delivered pretty bad quarter just the big context if you think about it casual dining there's so many of these restaurants around. Everyone's got a pretty low price point that they're kind of pushing out there and it's very difficult if you -- -- fumble one menu roll -- you really can't get those folks back there's no pent up demand for yesterday's -- he didn't go there yesterday the united certainly -- Go there again so it's a lost sale. Despite the appeal for analyst -- -- -- bread sticks and salad right what does -- keeping your eye on today Mike. You know it's going to be continued -- -- -- story we have at least on paper the president supposed to be leaving for vacation tomorrow so we're gonna basically -- trying to. Kind of read the body language there to see if there's anything that's gonna tell us whether India might happen before your time we'll keep an island that has rustic -- -- look at the big vote for let you go without trading down about nine points at thirteen 1244. -- -- from Yahoo! finance Mike thanks so much have a great Thursday okay -- you to.
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