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To: pater tenebrarum who wrote (38847)6/9/2000 2:04:00 PM
From: Crimson Ghost  Read Replies (1) | Respond to of 42523
 
How will they spin THIS in the months ahead?

From the BANK CREDIT ANALYST

Jun 09 09:03 2000)

Rising business costs pose an
increasing risk to U.S. corporate profits
and, thus, the equity market. Our
margin proxy, which measures the gap
between selling and input prices
(advanced by 12 months), warns that
the boom in profits since late-1998 is
set to slow, perhaps sharply.
Increased labor, energy and raw
material costs have pressured
companies to try lifting selling prices.
Companies have recorded some
success recently in hiking prices, but
not sufficiently to offset the rise in
input prices. Already, S&P operating
earnings have dipped on a quarterly
basis, despite the economic boom:
what will happen when activity cools?
An economic slowdown is inevitable,
because the modest success in
raising selling prices means that
consumer inflation is rising.