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

To: Lee who wrote (29816)	11/24/1999 10:09:00 AM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

Signs of trouble for the bonds and eventually market! This is not prized in at comp 3500/// on one hand we will have great growth in profits on the other more interst rate rises to confront .. treacherous conditions to tread..Higher $ will act as restraint to sell off as one can easily imagine that higher $ will lead to import price stability but I am more concerned about discount rate to future earning potential if Fed is not done with htese high fliers will be hardest hit as growth rate and discount rate due to rise in long bond and risk premium (equities) would rise and that is what I think one should look at.. nice to take some solid long put positions as I have been highlighting on strength.. American Economy Surges Ahead at Fast Pace Updated 9:24 AM ET November 24, 1999 By Knut Engelmann WASHINGTON (Reuters) - The U.S. economy surged ahead at a much faster pace than previously thought this fall, powered by rising inventories, vigorous consumption and an improved trade performance, the government said on Wednesday. The nation's gross domestic product, or GDP, rose at a steep 5.5 percent annual rate, far higher than the 4.8 percent reported by the Commerce Department in its first estimate a month ago. "This economy is growing gangbusters and 1999 is going out with a bang," said Wayne Ayers, chief economist at Fleetboston Financial in Boston, adding most economists expect a similar level of growth in the fourth quarter. The Commerce Department's report exceeded economists' expectations for a 5 percent annual rate of growth in the July-September period. The third-quarter growth spurt followed a more modest 1.9 percent rate in the second quarter and was the strongest gain since a 5.9 percent surge in the final three months of last year. But despite such strong growth in GDP, which measures total goods and services produced within U.S. borders, the report said prices remained muted, registering an annual 1.1 percent increase in the implicit price deflator, a key inflation measure. Inflation-sensitive bond prices fell slightly in holiday-thinned trading as some investors read the report as increasing the chances of yet another increase in key U.S. interest rates to keep the economy from overheating. The Federal Reserve has raised interest rates three times this year but has suggested that it is done raising rates at least until early next year. SPEND, SPEND, SPEND The government said the upward revision in overall growth had primarily been caused by larger-than-estimated increases in corporate inventories, reflecting a struggles by firms to keep up with the brisk pace of consumer demand -- the main engine behind the almost nine-year old U.S. economic expansion. Consumer spending, which accounts for some two-thirds of the U.S. economy, rose by 4.6 percent. Inventories rose by a hefty $33.9 billion, more than the originally reported $28.1 billion. Adding to the picture of red-hot growth in the world's biggest economy was a steep downward revision in imports, which the report said grew 14.6 percent in the third quarter instead of the 17.2 percent increase previously estimated. "This was a strong number and what's impressive about it is it pretty much shows strength across the board," Ayers said on Reuters Television. "Unless this economy slows, and slows pretty abruptly in the early months of next year, the Fed may not be finished (with raising interest rates) after all." The economy's growth spurt was accompanied by a strong rise in corporate profits. Driven by a sharp gain in overseas earnings -- helped by improving economies abroad -- third-quarter profits after taxes rose 3.0 percent to an annual rate of $598.6 billion.

To: Lee who wrote (29816)	11/26/1999 8:51:00 AM
From: Lee	Read Replies (2) \| Respond to of 50167

Economic Data for Friday, Nov. 26, 1999 Personal Income for Oct. = +1.3% Spending = +0.6% bea.doc.gov Personal income increased $100.4 billion, or 1.3 percent, and disposable personal income (DPI) increased $94.8 billion, or 1.4 percent, in October, according to the Commerce Department's Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $41.1 billion, or 0.6 percent. biz.yahoo.com U.S. personal incomes soared in October - Reuters Securities - 8:38 am Alert: U.S. Sept Personal Savings Rate Rev to 1.5 Pct From 1.6 Pc Alert: Excluding Special Factors, Oct Personal Income Would be +0.5 Pct, Sept +0.3 Pct Alert: Hurricane Floyd Rebound Also a Factor in Oct Personal Income Strength Alert: Us Oct Personal Income Boosted by Govt Farm Subsidy, Union Signing Bonuses Alert: Us Sept Personal Income Unrev at Unch, Spending Rev to +0.5 Pct (+0.4) Alert: Us Oct Personal Income Rise Biggest Since Matching +1.3 Pct in Apr'94 Alert: Us Oct Personal Income +1.3 Pct, Spending +0.6 Pct, Savings Rate 2.3 Pct