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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: ynot who wrote (55908)8/15/1999 5:01:00 PM
From: kendall harmon  Read Replies (2) of 120523
 
ynot, on the fed and interest rates, here is the highly respected Mr. Berry of the washington post. He is on the dove side in the Padinha versus Berry debate (with Padinha the hawk). I tend more toward mr. Padinha's side and think at least the fed takes back the three cuts from last year.

By John M. Berry
Sunday, August 15, 1999; Page H02

Volatile is the best way to describe the bond market these days. After losing ground earlier in the week to a variety of woes, bond prices jumped on Friday after a benign report on July producer prices eased investor worries that inflation is ready to take off. But there is still a widespread expectation that the Federal Reserve will raise short-term interest rates by another quarter-percentage point next week. As long as the economy remains hot, with the potential for Fed rate increases, the market is going to remain jumpy. But the case for Fed action next week may not be as ironclad as it appears to financial analysts, an overwhelming majority of whom are betting on an increase.
Tomorrow, Treasury will sell $8 billion each in three- and six-month bills, followed Tuesday by $10 billion in one-year bills. In when-issued trading Friday, the bills yielded 4.77 percent, 5.08 percent and 5.21 percent respectively


As for CPI, core is what matters more than overall. It could be an o.k. number this month, but I am still worried looking forward.
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