Overheard On The Street
By Daniel P. Delaney
July 27, 2000 1:00 PM EST
Here's what they're saying at mid-day:
Jim Volk, Co-Director of Institutional Trading, D.A. Davidson: "We're seeing a continuation of what we've had every day except for the day Greenspan spoke before the Senate when they had what I call an ambush and not a rally. I think these markets are very concerned, especially in the technology area and most of that's over the counter. The numbers going forward are not going to be good. Nokia disappoints. We can rattle off a half-a-dozen in the last couple of days of major companies.
"The forecast going forward is that things are slowing down. I think that the people are starting to sober up on that, and just like Amazon, finally people are realizing that the emperor has no clothes. Everybody's been avoiding the fact that their revenues are slowing down and that they can't make any money. So now it finally came to the surface and there are some downgrades today. So I think in general there's a very cautious to negative tone in the market, even though the Dow Jones has rallied a little bit."
Harry Laubscher, Market Analyst, Tucker Anthony: "The Dow Industrial Average once again is showing that people are getting concerned and are moving into the value-oriented type of stocks. We would expect to see over the next four to six days some strength coming back into the Nasdaq type stocks, but in our opinion, since the Nasdaq is into a major bear market, periods of strength should be used to take increased protective measures. The technology area is probably the most susceptible to further weakness after some nearby strength. By and large you've got to be extremely cautious in markets like this."
Robin Griffiths, Chief Technical Analyst, HSBC: "There is a seasonal deviation in world markets. They usually go dull at this time of year. The reason is that people drive markets and they tend to go on holiday. From the chart, markets seem to be sulking, and they certainly don't look well. They are a lot like Groucho Marx's horse in A Day at the Races; 'Either he's dead or my watch has stopped.'
"After the summer doldrums, the U.S. market will rise again and go up through the presidential election. The new man's honeymoon should keep things strong until the new year, but from then on there will be an increased likelihood of more rate hikes to cool inflationary expectations. The bear part of the cycle will commence, but it will still be in the presence of a steep secular uptrend." |
