MARKET TALK: Inflation Worries Weigh On Long Bond
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
(Call Us: 201 938-5299; All Times Eastern)
MARKET TALK can be found using code N/DJMT
8:43 (Dow Jones) In addition to downward pressure on Tsys prices across
curve from hedges put on in advance of non-govt bond, "people are worried
about inflation" and that's hurting the long bond, says trader in NY. Crude
oil prices are above $30 per barrel, up 8 cents on session, $30.44 for July
delivery (JNP)
8:37 (Dow Jones) Prudential's Ed Koen still looking for S&P 500 close
between 1400-1500 at year-end. Tech offers long-term attraction, but
short-term earnings valuation problems that may last for several months.
Expects investors will increasingly focus on the 80% of market that isn't
tech, and energy, health care, and financial services all seem to offer
attractive fundamentals. (TG)
8:30 (Dow Jones) Looks like more mild weakness for stocks to start out the
week, but similar softness in recent mornings hasn't meant much come closing
time. There isn't a lot in the way of big economic data on the way this
week, but there are a host of Fed officials on the speaking circuit Monday,
always something to keep an ear on. Lowe's (LOW) topped views, Limited (LTD)
met expectations, and Procter & Gamble (PG) is buying Clairol for about $5
billion. Markets generally soft in Europe, Tsys losing a little ground, and
stock futures flat. (TG)
(END) DOW JONES NEWS 05-21-01
08:44 AM
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