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Technology Stocks : Intel Corporation (INTC)
INTC 50.59+4.9%Feb 6 9:30 AM EST

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To: Tamas who wrote (9955)2/2/1997 11:17:00 PM
From: greenspirit   of 186894
 
Tamas, I think the markets will pretty much ignore the 1% loss in worldwide chip sales for the following reasons.

1. It's very clear now, Intel is selling as many chip's as they can produce. Demand for PPro 200Mhz is very strong.

2. Over 4% GDP growth last quarter, shows strong consumer demand in many industries.

3. Consumer sentiment at a very high level, something like 116. The highest since 1990, I believe.

4. Greespan's comments about seeing no fears of future inflation.
Should be a real positive for the bond market.

5. There actually talking about balancing the budget again by the year 2002.

6. Although the wordwide chip sales has been around for a while. I don't believe analyst's will put as much importance on it as they did the Book to Bill.

Regards, Michael

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