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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Percival 917 who wrote (9067)	10/28/1999 9:44:00 AM
From: Jill	Respond to of 54805

Looks like a good morning... Stocks To Rally On Friendly ECI, GDP Data By Amy Collins NEW YORK (Reuters) - U.S. stocks were expected to open with a strong rally Thursday, after employment and growth data eased fears about inflation and rising interest rates. The U.S. Labor Department said the closely watched Employment Cost Index rose 0.8 percent in the third-quarter. Economists polled by Reuters expected a rise of 0.9 percent. Third-quarter gross domestic product growth came in at 4.8 percent, compared to an expected rise of 4.7 percent. ``This is very bullish,' said Arthur Hogan, chief market analyst at Jefferies & Co. in Boston. ``The ECI being less inflationary than we expected is very good for equities.' The Standard & Poor's 500 future index for December shot higher after the data, up 17 points at 1,322. The 30-year U.S. Treasury bond also rose on the news, and was up 29/32 with the yield dropping to 6.27 percent. ``They are off to the races,' said Bill Meehan, the chief market analyst at Cantor Fitzgerald in Darien, Conn. ``The important thing is that the economy remains strong with inflationary pressures really not showing up,' said Barry Hyman, market strategist at Ehrenkrantz, King Nussbaum Inc. 'The bond market is going to rally quite significantly today, rates will come down. I believe the stock market is going to have a good day, especially the financials which have been strong over the last few weeks.' After the markets close, Federal Reserve Chairman Alan Greenspan is scheduled to speak to the Business Council in Boca Raton, Fla., at 7:30 p.m. EDT. His speech, as well as all the new data, will be scrutinized for clues as to whether the Fed will raise interest rates at its Nov. 16 meeting to cool the economy again. In company news, Amazon.com Inc. posted better-than-expected earnings but warned that losses would deepen in the current quarter. Shares were down at 71 in pre-open trading on Instinet from 75-15/16 Wednesday. Hewlett-Packard Co (NYSE:HWP - news).'s stock started slipping near the close of trading Wednesday after analysts cut earnings estimates based on conversations with company officials. Shares were down at 67-3/4 on Instinet from 70-3/8 at Wednesday's close. Boeing Co. 777 jets' electrical problems prompted the U.S. Federal Aviation Administration to impose tougher maintenance and operating directives on the aircraft, the Wall Street Journal reported. It also reported that major personal-computer makers are developing products that will not use Microsoft Corp (Nasdaq:MSFT - news).'s Windows. Reader's Digest Association Inc (NYSE:RDA - news). posted profits that soundly beat estimates but said its sales slipped 10 percent as it scaled back unprofitable activities. The Dow Jones industrial average Wednesday closed 92.76 points higher, or 0.90 percent, at 10,394.89. The Nasdaq composite index was off 8.95 points, or 0.32 percent, at 2,802.52. The Standard & Poor's 500 stock index was up 14.80 points, or 1.15 percent, at 1,296.71. The Wall Street Journal's Heard on the Street column reports that some investors are cooling on Microsoft based on its first-ever drop in its ``unearned revenue' account.