Question: Before Thanksgiving or after?
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From Argus Independent Equity Research: This is "AM Action
Facts" for Monday, November 23, 1998 with analysis of the
financial markets:
Market Review:
With neither side able to claim much of an advantage during
Thursday's House Judiciary hearings, investors were able to
settle back into a bullish frame of mind Friday. Few were
more bullish than the zealots who greeted Amazon.com's
announced three-for-one stock split by pushing up the shares
23 points to $180 (making it pricey even on a post-split
basis). Throughout the equity marketplace, however, buyers
were in a bidding mood. The DJIA jumped more than a
percentage point to finish more than 100 points ahead on
the day. That capped a week in which Dow Industrial
shares advanced 2.7%, or about 240 points. The S&P 500
gained 11 points on the day, and about 39 (3.4%) for the
week. Internet stocks showed breathtaking volatility
and huge net gains from Monday to Friday, pushing the
NASDAQ Composite index up 79 points (4.3%) for the
week. At Friday's closing price of 9159.55, the DJIA is
just one or two spirited sessions away from its July
1998 peak. Whether it deserves to eclipse that mark is
another story, given a sluggish pace of earnings growth
that does not justify puffed-up multiples. Unless
recoveries in the emerging economies take place much
more quickly than anticipated, profits will be hamstrung
by generally modest growth prospects in developed-world
markets. We continue to believe that recent speculative
buying, as frothy as the foam on an internet geek's
double latte, signals the approach of a market top, and
potentially a pullback to build a sustainable base.
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