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To: JungleInvestor who wrote (61571)	3/6/2000 6:19:00 PM
From: Brian P.	Respond to of 95453

How will the tale of two economies end? Will investors continue to buy the immunity theory and for how long?: << NEW YORK, March 6 (Reuters) - U.S. blue-chip stocks dropped to session lows in late trading on Monday while the Nasdaq market neared another record close as Wall Street concluded that technology stocks could better absorb interest rate hikes. The two stock market indices continued on their separate paths after Federal Reserve Chairman Alan Greenspan again telegraphed that the U.S. central bank will have to raise borrowing costs to ward off inflation. "I guess investors are buying into the theory that technology stocks are more immune to interest rates," said Guy Truicko, portfolio manager at Unity Management in Garden City, N.Y. The Nasdaq Composite Index , meanwhile, climbed 25.19 points, or 0.51 percent, into record territory at 4,939.98, as investors remained enamored with "New Economy" stocks. Many technology companies raise funds through venture capital and stock offerings, making them less subject to a slowdown in the current rising interest-rate environment. In a speech in Boston, Greenspan repeated his message of last month that productivity-driven stock gains had boosted demand in the economy to a level where it could no longer be met by supply. "It is still a tale of two markets," said Peter Coolidge, senior equity trader at Brean Murray & Co. "The higher interest rate environment seems to hurt stocks of the Old Economy while there is an argument to be made that technology and biotechnology shares are somewhat immune to interest rate increases. The problem is that this is getting somewhat overdone." >>