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Technology Stocks : Rockwell-Spins off Conexant (CNXT) -- Ignore unavailable to you. Want to Upgrade?

To: MeDroogies who wrote (1080)	5/15/2000 12:39:00 AM
From: David W. Taylor	Read Replies (3) \| Respond to of 2013

#1, if you are long stocks like CNXT, then I certainly know enough to make that statement. #2, inflation is back, big.... Here are some comments from John Murphy. -- Low PPI Gives False Hope by John Murphy Posted 13 May 2000 stockcharts.com OIL GOING UP -- NOT DOWN. . . Friday's lower-than-expected PPI report gave false hope that inflation is dropping. The biggest portion of the April drop in the Producer Price Index came from energy. As we've been pointing out for the past couple of weeks, however, energy prices are rising again. Chart 1 shows what the PPI captured - the drop in gasoline prices through the first half of April (see chart below). Over the past month, however, gasoline prices have risen almost 30% and have exceeded their March highs. [Heating oil and natural gas prices also hit new highs this past week]. Crude oil prices have jumped from $23 to $30 over the past month. This is another example of the discrepancy between forward-looking markets and backward-looking economic reports. The recent runup in energy prices explains why interest rates jumped sharply on Friday and the stock market rally fizzled. It also explains why oil stocks continue to do well. High Rates Raise Market Risk Posted 08 May 2000 stockcharts.com 10-YEAR NOTES REACH 6.50%. . .Since the start of the year, long-term rates had been falling again which gave some encouragement to the stock market. The 10-year Treasury note yield (which is the new benchmark for long-term rates) fell from 6.75% in January to 5.75% in early April. Since then, however, long-term rates have turned back up again. The chart below shows its yield breaking a three-month down trendline and reaching all the way to 6.50% on Friday - the highest level in two months. In addition, yields are now well above their 200-day moving average again. We point this out because rising rates normally raise the risk level in the stock market