Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: 10K a day who wrote (37054)	1/8/2000 11:39:00 PM
From: John Madarasz	Respond to of 99985

Economic Week in Review: January 3-7, 2000 Last weekend, people from Auckland to Zurich reveled as fireworks ushered in year 2000 and the infamous Y2K bug proved, at last, toothless. But investors quickly removed their party hats. Bond and stock prices--particularly those of technology companies--fell sharply in the new year's first business days before recovering some of their losses at week's end. For the week, the S&P 500 Index declined -1.9%. The yield of the 30-year U.S. Treasury bond, which moves in the opposite direction from its price, climbed 7 basis points to 6.55% (as of 4:30 p.m. Friday). The unemployment rate held steady in December at 4.1% of the workforce- -the lowest jobless rate since January 1970--for a third consecutive month, the Labor Department said Friday. And a surprisingly large 315,000 nonfarm jobs were added to payrolls last month. As expected for the holiday season, service-related jobs, such as store clerks, accounted for nearly all of the gain. In a separate job-related report, the Labor Department said there were 309,000 initial claims for unemployment insurance benefits--the highest number in two months--in the final week of December. The National Association of Purchasing Management said the manufacturing sector grew for the eleventh straight month in December. In a separate report, the Commerce Department said Wednesday that factory orders for U.S.-made goods rose 1.2% in November, the first increase since August. On a year-over-year basis, orders were up 8.7%, reflecting renewed demand from recovering foreign economies. Construction spending in November also was strong, rising 2.6% amid favorable weather for building, the Census Bureau reported. Rising interest rates finally slowed the frenetic sales pace for new single-family homes. Sales dropped -7.1% in November, the Commerce Department said Thursday. October's gain was revised sharply downward to 9.0% from about 16%. Overall, however, the market for new homes was hot in 1999. Through November, 848,000 houses were sold, up 3% compared with the same period in 1998. The average price of a new home rose to a record $209,700. Consumers continued their ready borrowing in November, adding $15.6 billion in debt, according to the Federal Reserve Board. Nonrevolving debt, such as auto loans, accounted for more than two-thirds of the borrowing, while revolving debt (largely from credit-card usage) increased for the first time in three months. Economic reports scheduled for release during the week of January 10-14 include the level of wholesale trade (due Tuesday), an initial reading of December's retail sales (Thursday), and the producer and consumer price indexes (due Thursday and Friday, respectively). Summary of Major Economic Reports: January 3-7, 2000 ----------------------------------------------------------------------- \|Date Report Actual Expected 30-Year S&P 500 \| \| Value Value Bond Yield Index \| \|---------------------------------------------------------------------\| \|January 3 NAPM Index 55.5 56.0 +14 bp -1.0% \| \| (December) \| \|---------------------------------------------------------------------\| \|January 4 Construction +2.6% +0.2% -9 bp -3.8% \| \| Spending \| \| (November) \| \|---------------------------------------------------------------------\| \|January 5 Factory Orders +1.2% +0.9% +10 bp +0.2% \| \| (November) \| \|---------------------------------------------------------------------\| \|January 6 New-Home 865,000 915,000 \| \| Sales (November) \| \|---------------------------------------------------------------------\| \| Initial Jobless 309,000 278,000 -8 bp No change \| \| Claims (1/1) \| \|---------------------------------------------------------------------\| \|January 7 Unemployment 4.1% 4.1% \| \| Rate (December) \| \|---------------------------------------------------------------------\| \| Nonfarm +315,000 +230,000 \| \| Payrolls \| \| (December) \| \|---------------------------------------------------------------------\| \| Consumer $15.6 $6.5 No change +2.7% \| \| Credit (November) billion billion \| \|---------------------------------------------------------------------\| \| Weekly +7 bp -1.9% \| \| Change \| ----------------------------------------------------------------------- bp = basis points. The most recent Economic Week in Review can be found below. The report is best viewed by setting your browser to a mono-spaced font such as 10-point Courier. (AOL Users: Because the AOL default browser's font cannot be set, the report's table may be difficult to read. For best viewing, click on the Economic Week in Review from Vanguard's homepage at vanguard.com )

To: 10K a day who wrote (37054)	1/8/2000 11:49:00 PM
From: re3	Read Replies (1) \| Respond to of 99985

<<<<<<Can wealth just go on until Infinity seems to !

To: 10K a day who wrote (37054)	1/9/2000 12:13:00 AM
From: Lee Lichterman III	Read Replies (2) \| Respond to of 99985

And if wealth does go to infinity as the gap between the haves and the have nots also grows, what happens when inflation does hit and the wealthy grudgingly pay 20 bucks for a loaf of bread but the poor aren't even able to afford it at all? I hadn't even thought of all the calls on the high flyers coming due. Interesting slant on expiration week which is normally biased up. Could that trend change after this historic runup in the high flyers. I think it depends on who owns the calls, the institutions or us small players. Good Luck, Lee