MARKET TALK: So This Is Where It All Went
24 Jan 10:51
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
(Call Us: 201 938-5299; All Times Eastern)
MARKET TALK can be found using code N/DJMT
10:50 (Dow Jones) What happened to fiscal bonanza of yesteryear? Greenspan
cites tax cuts, weakening in economic activity, and sharp decline in stock
prices, as well as stock price swoon exerting more downward pressure on
corporate tax receipts and increased spending for defense, homeland security,
unemployment benefits and other cyclically sensitive programs as developments
that "have reversed part of this fiscal bonanza." (JCC)
10:35 (Dow Jones) DJ-BTM Barometer was up 0.2% in latest week, its second
straight increase and an indication that the economy's is putting in a bottom.
That conclusion is further enhanced by the less volatile smoothed index, which
was up 0.7%, its third straight gain. Still, seven of the ten components
pointed downward, suggesting that the improvement is far from broad-based. (MC)
10:31 (Dow Jones) Lehman Brothers is now looking for no rate cut from the Fed
on Jan. 30. But economist Drew Matus says the speech, with its economic
optimism punctuated by caution, is not all bad for the bond market: given his
comments that go against new spending, Greenspan doesn't seem to be on board
for fiscal stimulus of the scale that either party is talking about. (SV)
10:21 (Dow Jones) Sure, Greenspan is positive on signs of stabilization, but
his concern about a potential "short-lived" rebound suggests he still wants to
have it both ways. Therein lies the specter of a double dip: if we don't get a
pickup in long-term business investment beyond that needed to boost
inventories, we won't get sustained demand...the whole thing could fizzle out
quickly. (MC)
10:13 (Dow Jones) Stocks were strong to begin with, and got stronger after
Greenspan text released. Firmish tone (at least in today's terms) from big tech
names lends support, and Greenspan comments seen bullish for economy (though he
is questioning sustainability for now). DJIA up 111 at 9841, Nasdaq Comp up
another 30 to 1952 after nice rally Wednesday, and S&P 500 climbs 9 to 1136.
(TG)
10:06 (Dow Jones) Greenspan is attempting to preempt what will likely be a
tough line of questioning on his tax cut position of a year ago. Some analysts
are looking for much of the question and answer period to be dominated by this
subject. (MSD)
10:05 (Dow Jones) The Fed chairman's remarks are pretty much meeting
expectations, in that he's saying there are risks to what appears to be a
stabilizing economy. This view is likely to bring the consensus firmly toward
expectations the FOMC will keep its easing bias but hold rates steady next
week. (MSD)
10:01 (Dow Jones) Greenspan's speech is again noting the risks to the
economy, although he does say "there have been some signs recently that some of
the forces that have been restraining the economy over the past year are
starting to diminish and that activity is beginning to firm." (MSD)
10:00 (Dow Jones) Greenspan says he sees signs the U.S. economy is
stabilizing after more than nine months of recession, but he warned that a
sustained economic recovery isn't yet in sight. (FL)
9:49 (Dow Jones) Investment house Spencer Clarke out with its top picks for
this year: Anthem (ATH), Continental Air (CAL), Constellation Brands (STZ),
Flextronics (FLEX), Checkpoint Software (CHKP), Gemstar TV Guide (GMST), Pactiv
(PTV), Electronic Data (EDS), Citigroup (C), and Gtech Holdings (GTK). (TG)
9:41 (Dow Jones) A major information provider has begun adding information to
clarify insider transaction filings delayed in the mail because of the anthrax
scare. Washington Service, which provides summaries of the insider filings to
institutional investors and news services, had stopped publishing summaries of
the filings last week because of investor confusion about the filings'
contents. Summaries of delayed filings will now include a notation that they
were delayed in the mail to the SEC, and Form 144 filings will include the
approximate date of sale when that date is listed on the filing, said Richard
Dann, a spokesman for the service. (TC)
9:31 (Dow Jones) Some may cry that, not only did he kick Kmart (KM) when it
was down, he inflicted a mortal injury. And this morning, Prudential analyst
Wayne Hood left it for dead. Having issued a sell rating at the beginning of
the year that helped precipitate Kmart's bankruptcy filing this week, Hood is
dropping coverage of the company. "While in bankruptcy, we don't expect Kmart
to release information to the public, severely limiting our ability to cover
the stock," Hood said. (JMC)
9:21 (Dow Jones) Feb. fed funds are pricing in a 20% chance of a 25 BP rate
cut at Jan. FOMC. View is unchanged from Wednesday. (ZHS)
9:14 (Dow Jones) USD/JPY slips back a bit again as jobless claims effect
wanes. Key level to break is still Y135, which would have both psychological
and actual effects in propelling USD higher. Portfolio flows in Japan however,
could lend support to the JPY; but concerns about another sovereign ratings
downgrade of Japan may limit any upside. USD also falling a bit against EUR
ahead of Greenspan. USD/JPY 134.51, EUR/USD $0.8771. (GMM)
9:10 (Dow Jones) Morgan Stanley adds Becton Dickinson (BDX) to its U.S. model
portfolio, replacing Yahoo (YHOO). "Yahoo has had a powerful recovery from its
September lows although the stock has been a disappointment over the last 18
months." The addition of Becton Dickinson, which Morgan Stanley thinks has 46%
upside from current price, raises the portfolio's healthcare weighting to 15%,
slightly above the 14.7% weighting in the S&P 500. (GS)
(END) DOW JONES NEWS 01-24-02
10:51 AM |
