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Technology Stocks : America On-Line (AOL)

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To: D.J.Smyth who wrote (19412)6/1/1999 11:25:00 AM
From: Steeny  Read Replies (1) of 41369
 
I also don't think it is wise for the Fed to raise, just very likely.
1. When they moved to a tightening bias, they made it clear that a raise was imminent if data kept coming out as strong as it had.

2.The Medley report stated that FED hawks had switched to a pre-emptive stance from reactive.-that flat #s would still lead to a raise.

3. Core CPI much stronger than expected.

4. Durable goods(excluding defence and planes) rose quicker than expected.

5.GDP #s have been very strong and have shown growth more than 50bps above the yield curve.

6. Real estate prices and new home sales have been extremely high. Housing starts have been quelled only by lack of supply(not demand) lumber prices very strong despite weak commodoty prices.

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