Bill M speaks ---
The market has been in this choppy range for awhile,"
notes MARSHALL FRONT, chairman of TREES FRONT ASSOCIATES.
"We think it is going to continue in the choppy range
until we get a better of what first- and possibly second-
quarter profits figures actually are." (CNN "Moneyline",
4/7)
"What there is not precedent for is for the laggards to
catch up to the leaders -- it's usually the other way
around," says PHIL ROTH of MORGAN STANLEY DEAN WITTER.
(CNN "Moneyline", 4/7)
"It doesn't take much to trigger any kind of stampede [in
technology stocks]," says WILLIAM MEEHAN at CANTOR
FITZGERALD. "It will be interesting to see if the rest
of the market can hold up while its leadership group is
failing." ("The Washington Post", 4/8)
"[Wednesday] there was a flip-flop," says DAVID DIETZE of
POINT VIEW FINANCIAL SERVICES in Summit, N.J. "People
seemed to want to take profits in technology and move
into some of the more traditional Dow names." (NYT, 4/8)
"[Wednesday's] good [earnings] report for Alcoa, in
conjunction with some comments that we've seen from some
of the paper companies and a few other basic industry
areas, lead us to believe that an important shift in
sector rotation may be at hand," says PETER CANELO of
MORGAN STANLEY DEAN WITTER. He adds: "Little companies
have fallen to the lowest [price-earnings] level relative
to the big-cap part of the market in 20 years. Secondly,
we've had cyclical companies collapsing relative to the
rest of the market over the last year and a half. And
we've seen value stocks collapse relative to growth."
However, he believes the extreme divergences can close
without a harsh correction or bear market. (PBS "Nightly
Business Report", 4/7, and "Investor's Business Daily",
4/8) |
