oh he will be soon enough tim... lol
Bonds slip; PPI surges 1.1%; core up 0.8%
Stocks to drop on PPI, Greenspan
By Kevin N. Marder and Julie Rannazzisi, CBS MarketWatch
Last Update: 8:59 AM ET Oct 15, 1999 Bond Report
NEW YORK (CBS.MW) -- U.S. shares are set to slide at the open Friday on the heels of a leap in prices at the wholesale level as well as cautionary remarks from Fed Chair Alan Greenspan.
December S&P 500 futures lost a whopping 30.50 points and were trading roughly 33.50 points below fair value, according to HL Camp & Co.
The producer price index surged 1.1 percent overall and 0.8 percent at the core, which excludes volatile food and energy components. The market had expected a 0.5 percent rise in the overall number with a 0.3 percent increase at the core. See full story.
The PPI was skewed by an 8.4 percent surge in tobacco prices. Rising oil prices also contributed to the troublesome jump.
Meanwhile, in a speech at a special conference on risk management sponsored by the Comptroller of the Currency late Thursday, Greenspan said bankers, portfolio managers and individual investors need to assess the risks to their investments from the possibility of an asset bubble. See full story.
While Greenspan made no direct reference to the stock market's valuations, his remarks roiled bourses across the globe. European shares fell, with London's FTSE 100 off 3.2 percent. In Asia, Japan's Nikkei 225 index shed 1 percent while Hong Kong's Hang Seng index tumbled 1.5 percent. See World Markets.
In shares trading before the opening bell, Sun Microsystems (SUNW: news, msgs) traded at 90 1/4, 27/32 higher than Thursday's 89 13/32 close but below the 92 level it reached in after-market trading Thursday, according to Madoff Investment Securities. See Indications. After the close of Thursday's action, the company beat Wall Street expectations by 2 cents when it reported fiscal first-quarter operating net of 33 cents a share vs. the 14 cents of a year ago.
Shares of IBM were off 1 at 105 7/8, Madoff said.
Meanwhile, shares of DoubleClick (DCLK: news, msgs) dropped 5 to 122 1/2 in Instinet. After the close of Thursday's action, the company said it lost 13 cents a share in the third period, a penny better than the First Call estimate.
Theglobe.com (TGLO: news, msgs) dropped 3 5/8, or 26.6 percent, to 10 in Instinet dealings. The company said delays in launching a pair of products will cause revenues to be slightly below analysts' estimates. The online community site sees revenue hitting $4.7 million to $4.9 million. However, the company said it will meet the First Call estimate, which calls for a loss of 34 cents a share.
In the bond market, prices slipped for the sixth straight session following news that wholesale prices jumped in September.
In early trading, Treasurys had benefited from some flight-to-quality flows on the heels of struggling equity markets. Sogginess in U.S. stocks will help support bonds despite the bothersome inflation reading. In addition, players note that the bond market had already largely factored in an ugly PPI reading.
The 30-year Treasury fell 7/32, to yield 6.342 percent. See Bond Report.
In other economic news released Friday, August business inventories rose 0.3 percent, matching forecasts.
The September industrial production data will be presented at 9:15 a.m. ET. Most economists are eyeing a 0.1 percent increase in production and an 80.7 percent capacity utilization rate.
See economic calendar and forecasts and historical economic data. Also, daily calendar, weekly calendar, and earnings calendar.
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