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To: Tom who wrote (138899)	8/11/1999 2:48:00 PM
From: BBG	Respond to of 176387

<OT> Things are starting to turn our way.... By Jeffry Bartash, CBS MarketWatch Last Update: 2:33 PM ET Aug 11, 1999 NewsWatch Earnings Surprises WASHINGTON (CBS.MW) -- The U.S. economy continued to expand in midsummer and "widespread" supply constraints emerged, but wage hikes remained mostly subdued and there was "no evidence of any broad-based pickup in consumer price inflation," the Federal Reserve said Wednesday in its latest Beige Book report. The periodic economic brief, not normally a market mover, is getting special attention this time around amid the growing view on Wall Street that the central bank's policysetting Federal Open Market Committee will raise interest rates at its Aug. 24 meeting. Expectations of a Fed rate high intensified last Friday after the the U.S. government reported a surprisingly strong increase in the number of jobs created in July. The Labor Department said 310,000 jobs were created last month, sharply higher than the 200,000 or so that most economists had predicted. In addition, the average hourly earnings, another key inflation indicator, rose higher than expected and is now up at an annualized rate of 4.6 percent over the past three months -- double the current inflation rate. The Fed raised the so-called fed funds rate to 5 percent from 4.75 percent in June on concerns that the economy was expanding too fast and might let the long-subdued inflation genie out of the bottle if action wasn't taken. The Beige Book is not going to settle the debate inside the Fed or on Wall Street. A mixed bag Fed members less inclined to raise rates can point to the apparently stable wage growth and inflation. The more hawkish Fed members, however, are likely to view the strong growth suggested in the report as further evidence that the economy needs slowing. The supply constraints, moreover, could be seen as evidence that inflation might rise as companies pay higher prices for scarcer materials. One supply evidently in short supply is labor. "Virtually all districts report widespread labor shortages, but most indicate the overall wage growth remains subdued," the Fed's Beige Book said. The Fed said businesses are dealing with the shortages in various ways, including the use of performance-based compensation to retain and attract good workers, job security commitments, bonuses and recruitment of foreign workers. In addition to shortages of labor, scarcer supplies are also constricting business in the housing and construction markets. By and large, however, the industry remains "strong" in most districts, the Fed said. Manufacturing, meanwhile, "continues to expand in most parts of the country," the Fed said. And demand for loans is also brisk, though a bit less for mortgages and refinancing and more for autos, which bodes well for Ford Motor Co. (F: news, msgs), General Motors (GM: news, msgs) and other vehicle makers. "Auto sales continue at high levels in most parts of the country," the Fed said. Inflation data ahead With the Behind Book now out of the way, investors will be looking toward the next batch of data for clues about where the economy is headed and whether the Fed will raise rates. On Friday, the Labor Department will issue the producer price index for July, followed by the consumer price index on Tuesday. While hourly earnings and other compensation data have shown some increase in labor costs, those increases do not appear to have filtered up into higher prices paid by manufacturers for raw materials or by consumers for household and other goods. The Beige Book seems to confirm that. The Beige Book, so named for the color of its cover, is a brief prepared for Fed officials ahead of FOMC gatherings. The latest report was prepared by the Federal Reserve Bank of New York and covered the period up to Aug. 3.

To: Tom who wrote (138899)	8/11/1999 2:57:00 PM
From: RickM	Read Replies (1) \| Respond to of 176387

>>Message #138903 from Tom at Aug 11 1999 2:46PM Rick M, And they did it again, same spot 41 7/16. Did they get him again? Thanks Tomsmiles << Yep, (MWSE = Chicago Stock Exchange's UTP) did it again. They stopped MO by coming in with 999 at least twice and once at 880 when the stock hit 42. (the 88,000 may have been a 999 bought down). I once called a MM that was axing a stock and asked for the "trading room" and I was actually connected. I told the lady that answered the phone to tell the SOB trading such-and-such to get the f--- off the stock or I was coming over there. I yelled and cussed using all the foul language my Army service tought me...and hung up. Guess what, they pulled their offer and the stocked popped about 3/4. An hour later they were back in wanting to sell 100 shares. Lucky they didn't call the FBI on me. Rick