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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Night Writer who wrote (84176)	8/11/2000 5:47:08 PM
From: Night Writer	Respond to of 97611

A gem of a comment buried in an article. US Equities Outlook: Momentum gives edge to bulls By Tom Wolf, BridgeNews New York--Aug. 11--U.S. stocks are seen edging higher on the open as momentum from Friday's rally looks to spill over. With little economic or earnings news out, the market is seen driven by technical factors, traders said. * * * Equities futures ended with a slight downside bias for technology issues. S&P 500 futures finished up 4 at 1478 in Chicago trade, or roughly in line with fair value, indicating a neutral stance on the close. Nasdaq 100 futures climbed 32 to 3663. Fair value is at 3666. Dow futures surged 118 to 11,085, with fair value at 11,076. U.S. Sep Treasury bonds traded lower by 13/32 to 99 21/32 on the day. The yield on the 30-year cash bond added 0.03 to 5.70%, while the rate on the 10-year note was higher by 0.03 at 5.78% pressured by the Nasdaq bounce and profit-taking. MARKET COMMENTARY The Nasdaq held the 3650 support level, giving it some upside potential on a technical basis to 3800. The Dow broke into higher ground, closing above 11,000 for the first time since April 25. "The rally could have legs until the CPI data comes out (Wednesday)," said John Waterman, managing director of investments at Rittenhouse Financial. "The market takes what it wants from the economic numbers and runs to the next piece of data." Investors' take on the economic reports Friday was to embrace the low inflation in the producer price index, while ignoring stronge r-than-expected growth in July retail sales, Waterman said. Furniture and building materials were stronger, he said. "That says the consumer is still spending," he said. Waterman likes selected technology issues with solid earnings prospects, consumer staples and some financials. Investors should avoid basic industry and capital equipment stocks, he said. "There's still a lot of uncertainty about interest rates, future earnings and the economy," Waterman said. UPCOMING ECONOMIC & EARNINGS REPORTS June business inventories are due out at 0830 ET Monday. But most of the attention will be on the July consumer price index, set for a Wednesday morning release. The inflation number will be the last major guidepost before the Federal Reserve meets Aug. 22 to determine the key fed funds rate. Companies expected to report earnings results Monday include Automatic Data Processing (AUD), Lowes Companies (LOW), Network Appliance (NTAP) and Toys R Us (TOY). FRIDAY'S MARKET The Dow gained 119.04, or 1.09%, to 11,027.80. Volume on the NYSE was light at 839 million shares. Advancers overwhelmed declines 10 to 4. The tech-heavy Nasdaq 100 added 49.42, or 1.37%, to 3644.61. Volume on the Nasdaq 100 was also light at 1.33 billion shares as winners edged losers 7 to 6. The Wilshire 5000 advanced 119.29, or 0.88%, to 13,703.86. MONEY FLOW Non-block money flow into listed stocks, or the net dollar amount of up and down ticks for trades less than 5,000 shares, was a strongly bullish $702.8 million. Among NYSE issues, funds sailed most into Compaq Computer (CPQ), IBM (IBM) and AT&T (T). Lucent Technologies (LU), Gap (GPS) and Wal-Mart (WMT) saw the biggest outflows. ----------------------snip-------------------------