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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (33762)	9/29/2000 6:24:03 AM
From: IQBAL LATIF	Respond to of 50167

Yesterday was a rare kind of reversal. Technically very rare, on SPX that S&P cash we had from 9/25 to 9/28 three down days with a range of 1419 to 1457, yesterday action hit the higher low at 1425 and closed above the minor three hanging crows a bullish pattern high of 9/25. DOT had a very clear pattern a support that I highlighted in my yesterday post held very well, from 9/25 we had this range from 794 to 684, yesterday action unlike SPX did test the lows at 687 but closed nicely above 733 a shade above 726, that is a traditional support, three hanging crows fwiw has been a bullish pattern and a break of that support yesterday would open new door to lower vistas but holding was fine, even PSE closed above the 100 days MA and so did NDX. I would like this DOT pattern to maintain the 726 area and SPX 1452 with NDX remaining above 3698 and PSE 1074, a tall order after AAPL but doable..if market remains firm after aapl and Denmark I would consider that 853 was the bottom for SOX and DOT by testing 684 fulifilled a 10/14/99 684 test, this would be a good indicator and I would as I highlighted yesterday try to take advantage if in last hour we se the continued strength even if we open weaker..

To: IQBAL LATIF who wrote (33762)	9/29/2000 6:40:41 AM
From: IQBAL LATIF	Respond to of 50167

Non-inflationary growth continues... <<The U.S. economy grew faster in the second quarter than previously estimated without causing inflation to pick up, government figures showed. Gross domestic product, the sum of all goods and services produced in the U.S., grew at a 5.6 percent annual rate between April and June, the Commerce Department said in its final estimate. That compares with a first-quarter pace of 4.8 percent. Exports grew more quickly and imports more slowly, the main reason the government revised second-quarter GDP from a 5.3 percent rate reported last month. Consumer spending grew at the slowest pace in three years. That, and inflation at less than 2.5 percent, is why analysts say the Federal Reserve will skip an increase in interest rates when policy-makers meet Tuesday. ``This is a tremendous amount of momentum,'' said Richard Yamarone, senior economist at Argus Research Corp. in New York. ``Inflation remains a no-show. I don't think the Fed is worried.'' Initial jobless claims fell by 24,000 last week to a two- month low of 287,000, the Labor Department reported separately. If claims continue at that level, with unemployment already near a three-decade low at 4.1 percent, companies could come under pressure to raise wages to attract workers and pass along the costs to customers. Productivity advances have so far kept prices under control. The GDP deflator, a broad measure of inflation tied to the report, rose at a 2.4 percent annual rate in the second quarter, the Commerce Department said. That's slower than the previously estimated 2.6 percent rate and the 3.3 percent rate of the first quarter. The personal consumption expenditures price index, a measure watched by the Fed, rose at a 2.1 percent annual pace, down from a prior estimate of 2.3 percent and a 3.5 percent rate in the first quarter. Slower Growth Ahead Another inflationary threat -- higher oil prices -- eased today after Saudi Arabia said it was willing to increase petroleum output. Crude oil for November delivery fell 3.6 percent to a six- week low of $30.34 a barrel. Prices are still 25 percent higher than a year ago. Economists expect that growth slowed in the third quarter, which ends this week. The median forecast from a Bloomberg survey of 33 analysts calls for GDP to expand at a 3.1 percent rate in the months from July through September. The first report on third- quarter GDP will be issued Oct. 27. The outlook for corporate profits points that way. U.S. companies will report profit growth of 16 percent in the third quarter, which ends this week, according to analysts' consensus forecast. That would be the smallest gain in more than a year and the result of higher energy prices as well as a strong dollar. Stocks still gained today, as investors bet the worst news on earnings was over. The Dow Jones Industrial Average rose 196 points, or 1.8 percent, to close at 10,824.06. The Nasdaq Composite Index rose 122 points, or 3.3 percent, to 3778.18. Spending Cools Exports rose at a 14.3 percent rate in the second quarter, compared with a 6.3 percent rate of growth in the first. Imports grew at an 18.6 percent annual rate, up from a 12 percent rate of growth in the first quarter. Central bankers have raised interest rates six times since June 1999 to keep demand from fueling faster inflation. Today's report showed consumer spending, which accounts for two-thirds of gross domestic product, grew at a 3.1 percent annual rate in the second quarter. While up from the 2.9 percent rate previously reported, it is still the slowest pace in three years. It is also less than half the first quarter's 7.6 percent rate that was the fastest in 17 years. After-tax corporate profits rose at a 2.5 percent rate in the second quarter, originally reported as 2.4 percent. In the first quarter, after-tax profits rose at 5.7 percent. Business Investment Non-residential investment, which includes commercial construction and business equipment and software, rose at a 14.6 percent annual rate, unchanged from the previous estimate. While down from a 21 percent rate in the first quarter, it still suggests companies are investing in productivity enhancements. Business inventories rose more than they had in the first quarter. Stockpiles rose $78.6 billion at an annual rate in the second quarter, after increasing $36.6 billion in the first. Government spending increased at a 4.8 percent annual pace in the second quarter, compared with a 1.1 percent drop in the first. Adjusted for inflation, GDP totaled $9.32 trillion in the second quarter when measured at an annual rate. That compares with $9.19 trillion in the first quarter. A revision today by the Labor Department in its consumer price index should make little difference if any in the GDP price index and no revision would be made until an annual overhaul of data next year, said Commerce Department economist Larry Moran. A correction for air conditioning use in rental housing led the Labor Department to report today that the CPI rose a seasonally adjusted 3.5 percent in the eight months through August, up from the originally reported 3.4 percent rise. Housing costs have a far smaller influence on the GDP price index than on the consumer price index. >>