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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: kemble s. matter who wrote (157621)	6/3/2000 2:22:00 PM
From: Patrick E.McDaniel	Read Replies (3) \| Respond to of 176387

June 2, 2000 Dow Jones Newswires A.G. Edwards' Goldman: Stock Market Rally Is No Fad By DESIREE J. HANFORD ST. LOUIS -- This week's robust upward activity in the stock market is no flash in the pan, according to Al Goldman, chief market strategist at A.G. Edwards & Sons Inc. Goldman told Dow Jones Newswires that the market has been undergoing a stiff correction for the past three months, noting that the typical Dow Jones Industrial Average stock and average Standard & Poor's 500 Index stock are well off their highs. In addition, Goldman said fear in the market had grown to substantial levels as investors were concerned that the Federal Reserve's interest rate increases would derail the booming economy. He said that economic data released this week, including durable goods orders, housing starts and auto sales, is evidence that the economy is starting to slow. "Today the crowning glory is the jobs data," he said. " We have an economy that has started to slow down and hopefully it's a soft landing." Goldman said he doesn't expect the Federal Reserve to raise interest rates when it meets later this month. He said given what the economic data have shown this week, Fed Chairman Alan Greenspan would likely run into "slings and arrows" when he testifies before Congress in July if the Fed raises rates later this month. "I think we're now seeing the first rate hikes kick in," Goldman said. "The latest ones haven't even kicked in yet. I think the Fed has to be wondering if they overdid it." Goldman is looking for the Dow to close the year at 12500, the S&P 500 to be at 1700 and the Nasdaq at 5500. Given the current economic backdrop, Goldman said he likes the technology and Internet sectors. Stocks he likes in those industries include Applied Materials Inc. (AMAT), Dell Computer Corp. (DELL), Intel Corp. (INTC), Cisco Systems Inc. (CSCO) and America Online Inc. (AOL). "My advice is to stick with the biggest and the best," he said. "This market will be more discriminating than the last run."