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Strategies & Market Trends : NetCurrents NTCS -- Ignore unavailable to you. Want to Upgrade?

To: kha vu who wrote (2121)	10/27/2000 9:11:56 AM
From: 2MAR$	Read Replies (2) \| Respond to of 8925

MARKET TALK: Underlying GDP Trend Stronger Than Report Edited by Thomas Granahan Of DOW JONES NEWSWIRES (Call Us: 201 938-5299; All Times Eastern) MARKET TALK can be found under code N/DJMT 9:10 (Dow Jones) Economists note that private sector growth much better than GDP figures suggest. Government spending shaved 0.6 pct points off growth, so underlying GDP trend closer to 3.3%. (BB) 08:58 (Dow Jones) In cutting American Power Conversion (APCC), Banc of America says slowdown in company's legacy business will more than offset the rapid acceleration in new businesses. Says the transition to higher-growth business will not be seamless, and slower-growth areas will weigh down results over next 12 months. Cuts 2000 and 2001 estimates. Co. missed 3Q views Thursday. (TG) 8:52 (Dow Jones) EUR/USD has fallen back to levels seen ahead of the data after a brief spike. EUR/USD is at $0.8337 vs. $0.8327 ahead of the data and vs. a high of around $0.8360. (CSE) 8:47 (Dow Jones) The GDP data don't necessarily suggest the type of "soft landing" the Fed wants. Ideally, consumer spending would taper and investment would stay robust, yielding productivity-led growth. But spending rose in 3Q and investment faded to its slowest pace in 2 years. (BB) 8:45 (Dow Jones) Treasurys traders are calling the market's bounce a relief bounce, given that the sector was bracing for a stronger GDP number. Still, Fed expectations are unchanged, and Treasurys players still have an eye turned toward stocks for the rest of the day's tone. (MSD) 8:43 (Dow Jones) Forecaster of the week award goes to...Dallas Fed President McTeer. Said Wednesday, "Be prepared for a fairly dramatic slowdown to be announced on Friday and then anticipate that when they make revisions and start getting more of the September data it will probably be revised up from here." So, Bob, how're October payrolls looking to you? (BB) 8:41 (Dow Jones) As expected, personal spending came in somewhere between the first and second quarters, rising 4.5% in 3Q. Business investment, which has accounted for about a quarter of overall growth, only grew 6.9%, less than half the pace of 2Q. The slowdown in investment could mean that the best of productivity is behind us. (BB) 8:38 (Dow Jones) Treasurys' prices climb across the curve after weaker-than-expected GDP. 30-year Tsy up 10/32 since data, up 12/32 on session at 107 20/32 yield down 3 bp to 5.71%. 2-year Tsy yield down 3 bp since data and down 3 bp on session to 5.90% (JNP) 8:36 (Dow Jones) No huge reaction in stock index futures after GDP. There was a small, quick selloff as the number hit but not much since. DJIA futures have turned mildly negative, but Nasdaq still looks strong. (TG) 8:34 (Dow Jones) EUR/USD has spiked higher on news that the U.S. economy grew less than expected in the third quarter. EUR/USD is at $0.8359 compared with $0.8327 head of the data. (CSE) 8:33 (Dow Jones) 3Q GDP up 2.7%, versus expectations of 3.5% gain. Price index up 2.2%. Both below expectations, especially GDP. Below-trend data might fuel expectations that Fed'll drop its tightening bias soon, though it'll probably take Oct. data to confirm softness. (BB) 8:30 (Dow Jones) Prior to the release of 3Q gross domestic product, stocks are indicated to open sharply higher. Results from JDS Uniphase (JDSU) are pushing that stock higher and should provide support to that recently troubled sector. Meanwhile, the remarkable bounce higher in the Nasdaq Composite Thursday has some folks talking of a market bottom - this time for real. One other thing to keep an eye on is the euro, with talk of some sort of intervention heating up Friday. (TG) (END) DOW JONES NEWS 10-27-00 09:11 AM * end of story *