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Strategies & Market Trends : The Options Box -- Ignore unavailable to you. Want to Upgrade?

To: Poet who wrote (286)	5/15/2000 4:21:00 AM
From: Jill	Read Replies (2) \| Respond to of 10876

Well, good morning, thank God I don't have to get up this early every a.m. Reporting later in the week are Hewlett-Packard (HWP), Agilent Technologies (A), Lycos (LCOS), Analog Devices (ADI), Network Appliance (NTAP) and Computer Associates (CA). Here's an article from Upside Today upside.com Volume likely to stay light -- for now Dawn Patrol May 15, 2000 by Thomas Coyle Don't expect volume to come flooding back into the market Monday, as investors -- especially those on the institutional side -- await the Federal Reserve's move on Tuesday. Thanks to the little guy: "A lot of the activity we've seen in the technology sector has been retail-driven rather than institutional-driven," Ned Riley Jr., chief investment strategist with State Street Global Advisors, told UpsideToday. Wrong-headed rallies? In that light, the rallies on Thursday and Friday look more like the proverbial dead cat bounce than a meaningful upswing, with individual investors putting a positive spin on economic news that leaves professionals unconvinced. On Friday, for instance, investors took heart when April's producer price index was shown to have met the market's call with a 0.3 percent decrease. But, according to Riley, about 90 percent of Friday's buying was in small "odd-lots" rather than in "blocks," indicating a high level of retail activity. In other words, investors who make a living buying and selling stocks for other people weren't really that keen on the PPI. "Today's number was a downtick in an uptrend," said William Rhodes, chief investment strategist at Williams Capital Group, offering a technical interpretation of the latest PPI. Won't dissuade the Fed: To Riley's mind, neither the PPI released on Friday nor the lower-than-expected April retail sales that came out on Thursday are going to keep the Fed from raising interest rates by 50 basis points on Tuesday. "If the Fed doesn't increase the rate by 50 basis points, but only opts for 25 basis points, that could actually be a negative for the economy" he said. "It might create an atmosphere implying that the Fed is behind inflation rather than in front of it." Economics in the offing: In a tense atmosphere like this, economic reports will take on a keener meaning than ever. On Monday the market will be looking for a 0.8 percent increase in industrial production, and an 81.8 percent upswing in capacity utilization -- a gauge of the slack available in the economy. On Tuesday, a few hours before the Fed makes its intentions known, the market will be looking for an increase of 0.2 percent in the consumer price index. Earnings: On Monday, networking gear supplier Brocade (BRCD) is expected to report second-quarter earnings of 8 cents a share. Electric Lightwave (ELIX), a provider of communications services to businesses, is expected to report a loss of 74 cents a share.