U.S. Q1 earnings seen good across the board
April 19, 1999 05:11 PM
NEW YORK, April 19 (Reuters) - U.S. corporations are likely to deliver positive surprises across many industry sectors, the chief investment officer of One Group Mutual Funds told a press briefing Monday.
"I think you're going to see a lot of positive surprises right across the board," Rick Jandrain said. He said that with the earnings outlook supported by an economy that is likely to remain strong, the stock market is going through a rotation of leadership that involves a broadening of the advance from a small group of stocks with hefty price-to-earnings valuations that have been in the forefront up to now.
"We saw a reversal last week in terms of leadership," he said.
Also supporting the sunny outlook is improvement in international economies where "business wasn't as bad as expected," he said.
While the economy is strong, Jandrain said, inflation remains subdued. "We don't really have a problem," he said. He said he expects interest rates to remain in a narrow range.
Duane Eatherly, technology analyst, said he is bullish on certain Internet or Internet-related companies as traffic on the World Wide Web continues to grow and companies spend money to build infrastructure. Among companies whose prospects are good, he said, are Cisco Systems Inc CSCO , Broadcom Corp BRCM , America Online Inc AOL , Amazon.com Inc AMZN , Linear Technology Corp LLTC and Maxim Integrated Products Inc MXIM .
One Group has about $60 billion in mutual fund assets under management. One Group is part of Bank One Corp ONE .
((--New York Newsroom/212-859-1732)) REUTERS
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