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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (29754)	11/17/1999 8:59:00 AM
From: JD	Respond to of 50167

(COMTEX) A: CPI rises 0.2 percent A: CPI rises 0.2 percent WASHINGTON, Nov. 17 (UPI) _ The Labor Department reported Wednesday the consumer price index, a key measure of inflation at the retail level, posted its smallest increase since June during October, rising a modest 0.2 percent. The core rate of inflation, which excludes the volatile food and energy sectors, also rose a modest 0.2 percent during the month, Labor said. Most economists on Wall Street were expecting the CPI to rise 0.2 percent after rising 0.4 percent in September. The core rate was also expected to advance 0.2 percent after rising 0.3 percent a month earlier. Labor noted the rise in the overall CPI was the smallest since June, when consumer prices were unchanged. The government said smaller increases consumers pay for clothing, shelter, and cigarettes were largely responsible for the deceleration last month. Energy prices eased 0.1 percent after rising a sharp 1.7 percent during September. Labor said gasoline prices slipped 0.4 percent, the cost of natural gas fell 1.4 percent but electricity prices rose 0.6 percent during the month. Food prices rose 0.2 percent, matching its rise in September. Transportation prices rose 0.2 percent after rising 0.6 percent a month earlier. The cost of air travel rose 5.3 percent and new vehicle prices edged up 0.1 percent. Apparel prices jumped 0.6 percent after climbing 1.2 percent in September. Housing prices rose 0.1 percent after increasing 0.4 percent a month earlier. The cost of medical care rose 0.2 percent after rising 0.3 percent in September. Prescription drug prices rose 0.4 percent adding to its 0.3 percent gain posted a month earlier, Labor said. _- Copyright 1999 by United Press International. All rights reserved. _-

To: IQBAL LATIF who wrote (29754)	11/17/1999 9:45:00 AM
From: IQBAL LATIF	Respond to of 50167

A point of view....individual investor...reports Of course, those with heavy tech holdings want to know whether to take profits while those who eschewed or sniffed at the tech rally are simply wishing that these stocks would rapidly retreat in order to vindicate their avoidance. Now, shares of tech companies in the S&P 500 are up about 40% this year alone while the broad index is up about 13%. Stocks like Qualcomm (NASDAQ: QCOM - Quotes, News, Boards) are up more than 14-fold in the past year, JDS Uniphase (NASDAQ; JDSU) has swelled eight times while business-to-business Internet issues seemingly double every week. As a result, tech stocks currently account for 25% of the S&P 500 weighting, or nearly double their impact just three years ago, and trade at a p/e multiple that is 1.67 times that of the broad index based on 2000 earnings estimates, points out Lehman Brothers. Believe it or not, as recently as 1995, the group traded at a discount to the S&P 500. However, in his notes to clients over the past weekend, Lehman strategist Jeffrey Applegate counseled not to be concerned about tech?s recently strong performance or historical valuation. Acknowledging Lehman?s recommended overweight of 44% plus another 16% in communication services, double the S&P weight, he wrote: ?We would still argue that a tech overweight in highly profitable companies is a relatively conservative way to participate in the burgeoning global virtual economy.? For one thing, tech?s 2000 earnings growth compared to the rest of the market figures to be 1.56 while the long-term rate figures to be around 1.48. This is not overly overvalued, Applegate argues. Now, he acknowledges that tech companies came up short of expectations a year or so ago when the unexpected Asian recession clipped growth. However, at this point Applegate is forecasting 3% global growth for next year, with every region participating. ?The competitive imperatives of e-commerce are so intense that demand for technology is, if anything, ramping up,? he writes. ?So, absent a cyclical interruption in demand, EPS expectations should largely be met?and may be exceeded.? In fact, Applegate notes that after-tax profit margins for the S&P tech companies nearly doubled from 1992 to last year, to 13%. This year margins should come in even higher. What?s more, last year the virtual economy (his phrase) grew14 times faster than what he calls the real global economy. ?It is difficult to think of a technology company that is not somehow participating in this very robust final demand,? he adds in his two-page report. Exactly one dozen stocks make up Lehman?s 44% weighting. They include: America Online (NYSE: AOL - Quotes, News, Boards), Applied Materials (NASDAQ: AMAT - Quotes, News, Boards), Cisco Systems (NASDAQ: CSCO - Quotes, News, Boards), Comverse Technology (NASDAQ: CMVT - Quotes, News, Boards), EMC Corp. (NYSE: EMC - Quotes, News, Boards), Intel Corp. (NASDAQ: INTC - Quotes, News, Boards), IBM (NYSE: IBM - Quotes, News, Boards), Lucent Technologies (NYSE: LU - Quotes, News, Boards), Microsoft (NASDAQ: MSFT - Quotes, News, Boards), Siebel Systems (NASDAQ: SEBL - Quotes, News, Boards), Sun Microsystems (NASDAQ: SUNW - Quotes, News, Boards), and Tellabs (NASDAQ: TLAB - Quotes, News, Boards).

To: IQBAL LATIF who wrote (29754)	11/17/1999 12:14:00 PM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

In line with my strategy I am continuing to lighten up and making cash out of long calls, today I got out of CMGI AMAT LRCX LSI GTW Henderson Tech Fund, for me I have seen one of the most leveraged move of my career I would not like to continue without realising my profits, thati s in line with my strategy since last week or so, I will on two closes above 1428 continue with out of money positions but let the next 10% move be the share of those who missed the huge move from bottom of 1242 on SPZ... NDX 3000 1427 DOT 850 PSE SOX nearly all my targets lie conquered and like it has been my tradition on 1720 NDX from 1100 move on Oct 8th I will play this range from 1390 to 1480 I wish to think this is going to be a high range consolidation unless 4th quarter earnings blow this 1490 top off.. that if we break 1428 on two closing basis, it was pleasure and so far with 20% of my cash in options I am still holding a good leverage..I will play it nice and cool... although taking profits for a bull isa shameless thing but Iam a market opportunist and hate to see my plus ---% story this year compromised.. love to all and hoping for real index action in closing months of 99..