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To: Ibexx who wrote (86718)	8/9/1999 5:21:00 PM
From: Ibexx	Read Replies (1) \| Respond to of 186894

Closing Market Commentary by Larry Wachtel of Prudential: ________ Please read at your own risk August 9, 1999, 4:50 p.m. EDT If bonds sneeze, stocks catch cold. The long Treasury bond fell again today sending the yield to 6.24%, the highest since November of 1997. Rising yields are particularly hard on growth stocks and NASDAQ fell by only six points helped by cyclical companies like Alcoa, General Motors, and Goodyear. Beyond the averages, Big Board losers outpaced winners by a 3-2 basis and new lows continued to outdistance new highs by a wide margin. NASDAQ was also hurt by some pressure on MCI Worldcom as a result of rate cutting. The stock fell over three points and contributed to weakness in other long-distance carriers like Sprint and AT&T. Rising interest rates remain the culprit. The long bond yield rose to the highest since November 4, 1997 as investors hesitated ahead of a $37 billion Treasury refunding. The Treasury will offer five-year notes tomorrow, 10 year notes on Wednesday and 30-year bonds on Thursday. Of course, this offering comes as the Street remains fixated on the Fed and the now widely expected boost of 25 basis points. In fact, Prudential strategist Greg Smith said today that the big rally will come on August 23 on the premise that the boost on the 24th is baked into the market pie. Aiding and abetting negative psychology was a 22-month high in oil prices, a factor that will intensify inflationary psychology. On the zeal to deal Data General gained 4 after an agreement with EMC Corp.. OEC Medical improved on a bid from GE Medical while Westwood Home also gained on a $27 million buy out bid. Dell Computer improved on Robertson Stephens upgrade while Advanced Micro gained on news of a new micro processor. Bottom line blues hurt Novel, Denim, and Wall Data while positive results helped Hanger Orthopedic and Consolidated Products. Broadcasting companies bucked the downtrend with gains in Granite Broadcasting, Young Broadcasting and Paxson Communications. These stocks continued to reflect recent FCC rulings that television station groups may own as many as two big TV stations in big markets. Over the near term its battle between an oversold market and an unfriendly rate environment. Its summer and the living is not easy. _______ Keep thy powder dry, Ibexx