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Non-Tech : The Critical Investing Workshop -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (13159)	4/14/2000 10:44:00 AM
From: stockman_scott	Read Replies (1) \| Respond to of 35685

U.S. stocks tumble early on inflation data (Updates with early trade) By Ian Simpson <<NEW YORK, April 14 (Reuters) - Wall Street fell sharply in early trading on Friday as bigger-than-expected inflation numbers at the consumer level raised the specter of higher interest rates. Already deep in bear territory and reeling from four losing sessions in a row, the technology-laden Nasdaq composite index was down 70 points, or 1.9 percent, to 3,607. The gauge has fallen 28 percent since March 10 as investors dumped high-priced technology issues and fled into more-established corporate names. The drop was not limited to once high-flying computer, Internet and telecommunications shares. The blue-chip Dow Jones industrial average (^DJI - news) was down 191 points, or 1.75 percent, at 10,732 points. The index plummeted 263 points before clawing back, and the New York Stock Exchange clamped on trading curb 17 minutes after trading began. ``As the averages go lower, the cash has to go somewhere and right now I'd say it's sitting on the sidelines,' said Richard Babson, chairman and president of Babson-United Investment Advisors in Watertown, Mass. The Labour Department reported the Consumer Price Index rose 0.7 percent in March. Economists polled by Reuters had forecast a 0.5 percent gain. The core rate, which excludes food and energy, rose 0.4 percent, above a forecast rise of 0.2 percent. The jump was the biggest since January 1995. The hike raised Wall Street fears that the Federal Reserve will boost short-term interest rates when its policy-setting panel meets May 16. The central bank has boosted short-term rates five times since last June to slow the booming economy. Pierre Ellis, senior economist at Primark Decision Economics, said the CPI report raised the prospect of the Fed raising interest rates by a 0.50 basis points, instead of the 0.25 basis points Wall Street has expected. ``The serious news is the core figure being so high,' he said. The inflation news overwhelmed robust earnings from Sun Microsystems Inc. (NasdaqNM:SUNW - news). Sun, the leading maker of powerful computer servers used to run Web sites, reported quarterly profits that beat Wall Street forecasts, along with a 35 percent jump in revenues. Sun was up 7 at 84-3/4. The U.S. Treasury 30-year bond was off 19/32 and was yielding 5.84 percent.>> ---------------------------------------------------------- ***I could care less about 'the core rates'....others seem to be paying attention though....This selling we are seeing this week is due to FEAR --- False Education Appearing Real. I'm going to ride this out... Best Regards, Scott