Some here argue that investments should be based on fundamentals. I agree that that is the way it should be. But these days fundamentals have become irrelevant. Stocks with great fundamentals drop as much and as fast as the dot.coms . Investment decisions are now being based on what you think Greenspan's mood is. If ever he gets a stomach ache....watch out!!! That to me is wrong...the man has too much power and it can become dangerous.
Vince
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quicken.com
Market Snapshot:
Economic numbers
in the limelight
By Julie Rannazzisi, CBS MarketWatch
Last Update: 6:18 PM ET May 26, 2000
NEW YORK (CBS.MW) -- Economic data will
again be in focus next week, with each piece of
news set to provide clues on what the Fed's next
move will be.
The May employment report, due out next Friday,
will be the first piece of the puzzle to decipher
what the central bank may or may not do at the
June 27-28 Federal Open Market Committee
meeting.
"Next week's economic reports will either assure
the markets that the economy can transition to
more moderate growth with subdued inflation or
serve to aggravate recent fears," said Lynn
Reaser, chief economist of Bank of America
Capital Management.
"We expect numbers to indicate somewhat more
balanced performance, which should help most
industry groups, including technology, financial
services and the more cyclical areas," Reaser
said.
"For the first time in a couple of weeks we'll have
significant news on U.S. economic
performance," remarked Clark Yingst, market
analyst at Prudential Securities.
"We know the Fed is concerned about
pressures on the cost of labor. Unfortunately,
we're likely to see more tightness in the labor
markets. The situation won't change overnight,"
Yingst added.
Every piece of data has the potential to take the
market down, according to Mike Holland,
president of Holland & Co. "There are a lot of
frayed nerves out there."
People are worried that the Fed will overdo it on
the tightening front, Holland said, and until that
sentiment prevails, market volatility will remain
the name of the game.
On the week, the Dow Industrials fell 3.0 percent
and is down 10.4 percent for the year. The
Nasdaq, meanwhile, fell 5.4 percent this week
and is down 21 percent for the year. |
