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Strategies & Market Trends : the Women of SI -- Ignore unavailable to you. Want to Upgrade?

To: Rainy_Day_Woman who wrote (970)	5/12/2000 9:14:00 AM
From: Rainy_Day_Woman	Read Replies (1) \| Respond to of 1691

late but still under the wire NEW YORK, May 12 (Reuters) - U.S. stocks on Friday were expected to be guided by an April report on inflation at the wholesale level with any weaker-than-anticipated numbers easing pressure on the central bank to keep raising borrowing costs. Analysts see the Federal Reserve hiking interest rates by a decisive 50 basis points at its Tuesday meeting but said that future anti-inflation policy could be relaxed if the Producer Price Index suggests the economy is starting to cool off. April's PPI is scheduled to be released at 8:30 a.m. EDT (1230 GMT) with the gauge of inflationary pressures at the wholesale level expected to register a decline of 0.2 percent overall. When volatile food and energy prices are stripped out, the PPI is seen showing an increase of 0.1 percent. The Standard & Poor's 500 index futures for June was up 5 points at 1,420 while the Nasdaq 100 index futures gained 22.50 points to 3,408.50. ``I think people are waiting to see if the PPI is in line,'' said James Volk, co-director of institutional trading at D.A. Davidson & Co. ``I think that would give people a little more courage to continue this rally.'' A soft April retail sales report on Thursday indicated U.S. consumers may be letting up on their spending spree, sending the market back to the races after three down sessions. ``I think that if these (PPI) numbers come in in line or better-than expected, we can build on yesterday's rally,'' said Peter Coolidge, senior equity trader at Brean Murray & Co. ``We were spurred on by better-than-expected retail sales.'' Analysts said technology could get a boost as well from Dell Computer Corp. (NasdaqNM:DELL - news), which on Thursday reported higher first-quarter earnings that topped estimates, as the world's No. 2 personal computer maker reversed the rocky ride of the two previous quarters. Dell was up at 47-1/8 in pre-open trade from its close on Thursday at 44-11/16. Wall Street pros said that even though they expect the Fed to hike rates by a tough 50 basis points, more evidence of a slowing economy could take the pressure off the central bank to keep raising rates in the future. A half a percentage point move would be a departure from the Fed's usual policy of raising rates in gradual increments of one-quarter of a percentage point at a time. The Fed has made five such moves since last June in an effort to curb inflation. In other economic news, two Federal Reserve officials are set to speak on Friday with Wall Street watching out for any clues about the Fed's plans for interest rates. Federal Reserve Vice Chairman Roger Ferguson is scheduled to deliver closing remarks at the Florida Council of 100 in Washington at 10:15 a.m. EDT (1415 GMT) In San Juan, New York Federal Reserve President William McDonough is to speak to the Puerto Rican Bankers Association at 12:30 p.m. EDT (1630 GMT). In early trading, the U.S. Treasury 10-year note eased 4/32, with the yield flat with Thursday's close of 6.42 percent. The U.S. Treasury 30-year bond also lost 4/32 with the yield flat with Thursday's close of 6.15 percent. On Thursday, the Dow Jones industrial average (^DJI - news) jumped 178.19 points, or 1.72 percent, to 10,545.97, erasing Wednesday's 168-point loss. Technology stocks rebounded nearly across the board and pushed the Nasdaq composite index (^IXIC - news) up 114.85 points, or 3.39 percent, to 3,499.58 -- regaining some ground after dropping 200 points on Wednesday. Broader measures of the market also rose, with the Standard & Poor's 500 index (^SPX - news) up 24.76 points, or 1.79 percent, at 1,407.81. Among the stocks to watch on Friday is Xerox Corp. (NYSE:XRX - news), whose President and Chief Executive G. Richard Thoman resigned on Thursday. The world's largest copier maker said Chairman Paul Allaire will resume his former role of CEO and Anne Mulcahy, president of the company's general markets operations, has been named president and chief operating officer. Its stock closed at 25-11/16. Ingersoll-Rand Co (NYSE:IR - news), which makes air compressors and refrigeration products, said Friday it agreed to pay about $1.56 billion for Hussmann International Inc. (NYSE:HSM - news), which makes food-store equipment and commercial refrigeration products. Ingersoll-Rand closed at 45-7/8 while Hussman closed at 13-3/8. Intimate Brands Inc (NYSE:IBI - news) on Thursday posted a 29 percent rise in first quarter earnings, lifted by strapless bra promotions at its Victoria's Secret stores and strong performances at its Bath & Body Works shops. Its stock closed at 46-1/2.