MARKET TALK: S&P 500 21% Overvalued, Yardeni Says
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
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8:44 (Dow Jones) The S&P 500 is 21% overvalued, says Deutsche Banc's Ed
Yardeni, down from 25% last week. The decline in 2001 consensus operating
EPS growth forecasts is widening again, while the growth forecast for 2002
is closing in on 19%. (TG)
8:38 (Dow Jones) The high 6.3% annual rate of increase in unit labor costs
in 1Q when demand was sluggish means that companies cannot pass on the cost
increases and, so, profits get squeezed. (JM)
8:33 (Dow Jones) Productivity in 1Q was revised to a 1.2% annual rate of
decline from the initially announced 0.1% decline. Unit labor costs as a
result were revised to show a 6.3% annual rate of increase, from 5.2%. ULC
equal the rate of hourly compensation less productivity, and constitute the
contribution of labor costs to a hypothetical unit of output. (JM)
8:30 (Dow Jones) The sleepy activity seen in Monday's session looks like it
will continue this morning, although there are some economic numbers to
consider. With data - some at least - showing signs the economy may be
turning, it will be interesting to see how stocks react in upcoming months,
when the prospect of rate cuts drying up becomes a reality. Two months into
its quarter, Xilinx (XLNX) says it's on track, and business improved in May.
Comverse Tech (CMVT) topped views, and that stock will be heading higher.
The oil patch should be active again in the wake of reports OPEC won't
change output despite Iraqi reduction. Stock futures edge higher, Tsy price
marginally stronger. (TG)
(END) DOW JONES NEWS 06-05-01
08:44 AM
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