>>Thursday, June 17, 1999
Could have been worse
Greenspan's remarks don't spook investors. How about some shares in the Roman Coliseum? Compaq's woes.
By Pablo Galarza
A WEAK SEQUEL. At first, it didn't look we were going to get a follow-up rally to Wednesday's explosive upside move. First off, Chairman Greenspan spoke in front of lawmakers and said he saw "developing imbalances" that posed risks to the long-running health of the U.S. economy. He means the very tight domestic labor market. Then Compaq comes out with a bombshell: that it isn't going to meet the Street's numbers, then Credit Suisse First Boston cuts Intel's earnings projections. The chip maker's shares fell 1 11/16 to 58. But after the benign inflationary data that was disclosed on Wednesday, investors felt that enough bad news was priced into stocks. The real savior came late in the day: Goldman, Sachs über-bull Abby Joseph Cohen remarked that markets will tolerate Fed "tightening" medicine. After that everybody waded back into the market. Tech stocks got most of investors' money today, as demonstrated by the strong performance in the Nasdaq (up 26.32 to 2,544.) The Dow was up too, rising 56.68 to 10,841, while the S&P 500 index moved up nearly 10. The yield on the 30-year bond fell below 6%, too, for the first time in weeks.<<
Another take on what Abby Joseph Cohen said today.A little different than what was posted prior today on several occasions.If this is correct,thats good for the market.
Ed Forrest
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