Howard, They have been calling for a sizable market correction. Sideware is bound to be affected. Plus the MMs may be at play. Be that as it may, it does not affect our long position. This is a time to BUY!! We had $10 by Christmas. Now lets see $20 in 1Q 2000. The end of Jan and first of Feb is a big time for us. I expect the move around then.
Here is the report on the market correction from Reuters.
Kris
U.S. stocks to open mixed, volatility predicted
Wed Jan 05 09:44:00 EST 2000
NEW YORK, Jan 5 (Reuters) ?
U.S. stocks are expected to open mixed to lower in volatile trading on Wednesday, a day after Wall Street's worries about rising interest rates forced all major stock indices down at least 3 percent. The slides amounted to the steepest one-day point loss ever for the Nasdaq composite index, which was up more than 85 points in 1999, and the fifth-steepest for the Dow Jones industrial average, which was up 25 percent last year. The Standard & Poor's 500 index future for March fell from morning highs, and was down 0.5 of a point at 1,411 a little less than an hour before the market open. The Nasdaq future index for March, which was earlier positive, was down 19.5 points at 3,538, a day after it was down 82 points before the open. "The declines in bonds and stocks are not over yet," said James Volk, the co-director of institutional trading at D.A. Davidson and Co. in Portland, Ore. Analysts were debating how long the downturn would remain. Joseph Barthel, the director of investment policy at Fahnestock & Co. in Great Neck, N.Y., predicted in a Year 2000 note to investors released on Wednesday, "at least one sizable market correction that will likley start in January (to) mid-February and end in April with a 9-month cycle low."
But many analysts said the market would have a hard time staying negative in the short term. "You can't fight the 'January effect' and you can't fight the 'buy on the dip' mentality for too long, and we've had a couple of atrocious days," said Arthur Hogan, the chief market analyst at Jefferies & Co. in Boston. The benchmark 30-year U.S. Treasury bond was down 10/32 with a yield of 6.56 percent as it benefited from investors' flight from stocks. On Monday, the yield hit a 27-month high of 6.62 percent.
Overseas stock markets were markedly lower following Wall Street's sell-off. The dollar was at 1.03 against the euro and at 103.3 against the yen. The Dow Jones industrial average on Tuesday closed 359.58 points lower, or 3.17 percent, at 10,997.93, with heavy losses in its financial components. The technology-heavy Nasdaq composite index , fell 229.41 points, or 5.55 percent, to 3,901.74, a day after it set a record high close. The broader Standard & Poor's 500 index lost 55.80 points, or 3.83 percent, to 1,399.42.
With the markets' rate fears on edge, analysts will pay close attention to economic data, examining it for signs of inflation that would encourage rate more interest rate hikes from the Federal Reserve beginning at its February meeting. Only a week ago, the market was heavily expecting a rate hike of 25 basis points in February, but now a rate hike of at least that amount, and possibly 50 basis basis points, is now expected. Two influential analysts in the past two days predicted a 100-point increase for the year. In morning economic news, November factory orders are expected to show an increase of 0.9 percent, compared with a decline in October of 0.2 percent. The data is expected at 10 a.m. EST (1500 GMT). At the same time, the National Association of Purchasing Managers will release its non-manufacturing data for December. In November, the index measured 55.5; any number over 50 indicates expansion. No forecast was available.
The most important data of the week is expected on Friday, with the release of the December payroll results. In company news, online retailer Amazon.com Inc. said its fourth quarter sales were up to $650 million compared with $253 million a year ago, but that higher sales don't yet mean lower net losses. The stock fell in pre-market trading on Instinet, selling at 71-1/8 from its close at 81-15/16. Two Dow components saw their stock investment ratings upgraded on Wednesday morning. Banc of America said it raised International Business Machines Corp. to strong buy from buy. Also, Deutsche Banc Alex. Brown raises DuPont to buy from market perform. Compaq Computer Corp. said it will introduce a new line-up of innovative personal computers, wireless links and digital cameras. Intel Corp. will announce its strategy for developing Web appliances that would be resold by Internet service providers and phone companies. Apple Computer Inc.'s interim chief executive, Steve Jobs, may introduce a new PowerBook during his keynote speech at the Macworld Expo, many analysts predicted. Bell Atlantic Corp. is exploring a $2.5 billion spin-off of Internet assets in an effort to gain Federal Communications Commission approval for its acquisition of GTE Corp. , people familiar with the plan said. Net2Phone Inc. and Panasonic Consumer Electronics Co. plan to launch a line of telephones that feature a special button to connect to Internet phone networks, the Wall Street Journal reported. Vehicle rental company Budget Group Inc. said it will take a fourth-quarter pre-tax charge of $90 million to $95 million and cut 1,000 jobs in order to reduce costs.
((Wall Street Newsdesk +212 859 1730)) REUTERS Rtr 09:44 01-05-00 Copyright 2000, Reuters News Service
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