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To: Didi who wrote (100)	6/12/2000 8:18:00 AM
From: Didi	Read Replies (1) \| Respond to of 1115

Market Commentary: >>>U.S. Stocks Seen Opening Mixed By Margaret Webb Pressler Washington Post Staff Writer Monday , June 12, 2000 Wall Street is feeling optimistic about a series of economic reports due out this week, and that's likely to send the markets higher at the opening bell. Following Friday's weaker-than-expected release on wholesale inflation--which could help persuade the Federal Reserve to put off further interest rate hikes--investors are hoping for further signs that the economy has reached a more sustainable cruising altitude for the rest of the year. The economic information rush begins tomorrow, with the Commerce Department's release on figures on retail sales, an important indicator of consumer behavior. Retail stocks have been pushed down lately amid concerns that their profits will suffer as consumers pull back. So a report on weak sales could put further pressure on that sector. On the other hand, weak numbers from the nation's retailers could also send another strong signal to the Fed that its previous interest rate increases are starting to cool down the economy. The Fed meets again on June 27 and June 28. The retail sales figures will be followed Wednesday by the Consumer Price Index, a key measure of inflation at the retail level. Later in the week the markets will be evaluating figures on industrial production and housing starts. Even before the trading week begins, Wall Street is in an upbeat mood. Shortly after 8 a.m., the S&P futures index was trading nearly 11 points higher than fair value, suggesting the Dow Jones industrial average could go a long way today towards making up its 180-point decline last week. Typically, each point of difference between the futures index and fair value represents about eight points of the Dow. Tech stocks also appear to be headed higher, as Nasdaq futures are also trading in positive territory this morning. Today investors will also be scrutinizing the deals being pursued by delivery giant UPS, which raises $5.5 billion in a massive intial public offering last year. So far, UPS has only used the proceeds of its IPO for stock repurchases, but the Wall Street Journal reports this morning that the company will be announcing a slew of acquisitions in the coming year. Currently, the Journal reports, the company is in talks to acquire two major distribution firms in South America. Financial stocks will also be in the spotlight as the Justice Department tackles its next big antitrust case, against MasterCard and Visa. The government alleges the credit card associations have rules that prevent banks from doing business with other credit card companies, including American Express and Discover. This system also keeps credit card interest rates artificially high, according to some consumer advocates. In overseas markets, stocks are giving a preview of today's market direction on Wall Street. Major indexes in Europe are moving higher this morning, and in Asia, stocks are rebounding. The Nikkei 225 in Tokyo broke a four-day losing streak today to close up 118.70 and 16,980.61. ¸ 2000 Washington Post Newsweek Interactive<<< washingtonpost.com