Mohan:
NEW YORK, Jan 29 (Reuters) - U.S. stocks are seen rising at the open as Real Gross Domestic Product for the fourth-quarter rose a hefty 5.6 percent, topping estimates of 4.4 percent. Analysts said the economy is strong and inflation is benign, but said it raises some questions about interest rates.
JAMES VOLK, CO DIRECTOR OF INSTITUTIONAL TRADING DA DAVIDSON
''Economy is strong and inflation is benign. I think the stock market will read that as a positive at this point. You do have less inflationary pressures. The only problem is if the economy continues to heat like this, Greenspan is going to rattle the sabers a bit on interest rates.'' THOM BROWN, MANAGING DIRECTOR, RUTHERFORD, BROWN & CATHERWOOD
''This will cause renewed specualtion on interest rates but the Fed can't afford to raise interest rates right now with the Brazil situation.''
ARTHUR HOGAN, CHIEF MARKET ANALYST AT JEFFERIES & CO. IN BOSTON:
''That's clearly good news. ... Is it enough to change economic policy? Clearly not. This is fabulous news for corporate earnings, this is fabulous news for the U.S. economy. This helps explain why we're blowing away earnings in the fourth quarter.''
''This certainly will keep (interest rates) unchanged for a while. ... There will be no tightening until they've turned the corner on a a couple of trouble spots around the world.''
PETER CARDILLO, DIRECTOR OF RESEARCH, WESTFALIA INVESTMENTS
''Its a good report and I suspect that the market will take it as a postiive, will have another good session today and close substantially higher.''
|
