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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (26622)	12/21/2000 7:46:12 AM
From: Pedro Joaristi	Respond to of 65232

Had a very long talk with a Merrill Lynch Senior V.P. yesterday, and, for what it's worth, I transcribe some of his comments. 1. Nasdaq oversold as much as it was overbought in march. 2. Downside potential to 2000 max. 3. SEES MORE DANGER NOW IN NOT BEING IN THE MARKET THAN IN BEING IN. 4. More cash in money market accounts ready to reenter the market than he has seen in twenty five years. 5. Looking for rate cut in January. WARNS THAT A .5% RATE CUT VERSUS A .25% CUT COULD RESULT IN AN EXPLOSIVE MARKET DAY, WITH GAINS IN THE DOW OF 500-1000 POINTS. 6. Their economic department anticipates soft landing in 2001.

To: Dealer who wrote (26622)	12/21/2000 9:25:13 AM
From: Dealer	Respond to of 65232

M A R K E T -- S N A P S H O T --Markets look for stability By Julie Rannazzisi, CBS.MarketWatch.com Last Update: 8:36 AM ET Dec 21, 2000 NEW YORK (CBS.MW) - With warnings continuing to pile on, it'll be hard for the market to find some stability. But that's exactly what it's looking for Thursday following Wednesday's dismal action, which took the Nasdaq to levels not seen in 21 months. March S&P 500 futures climbed 5.80 points, or 0.5 percent, and were trading roughly 2.10 points above fair value, according to HL Camp & Co. Nasdaq futures, meanwhile, fell 8.50 points, or 0.4 percent, giving up earlier gains. One big drag on the market will be Dow-component AT&T's (T) warning after the close Wednesday. The company also announced that it's cutting its annual dividend by more than 80 percent. The company now projects a fourth-quarter operational profit of 26 to 28 cents a share versus its previous projection of 29 to 33 cents. Ma Bell lost $1.13, or 6 percent, to $17.81 in Instinet pre-market dealings. Lucent Technologies (LU) shares are set for another rocky ride after telling investors that it'll take a charge of at least $1 billion for cutting jobs and restate its fourth-quarter sales a second time. Lucent expects a loss from operations of 25 to 30 cents a share in its fiscal first quarter, well below the First Call estimate of a loss of a penny a share. Shares fell $2, or 13 percent, to $13.50 in the pre-market after closing down 10.8 percent on Wednesday. Xerox (XRX) warned early Thursday that a softer fourth-quarter performance was likely and that it had completed the sale of its China operations to Fuji Xerox for $550 million in cash. The troubled company said it has drawn down the remaining balance of its $7 billion revolving credit agreement, a portion of which was used to repay maturing debt. Shares closed down 3 cents to $6 on Wednesday. In the bond arena, prices gave up some of Wednesday's lofty gains. The 10-year Treasury note erased 7/32 to yield ($TNX) 5.07 percent while the 30-year government bond fell 14/32 to yield ($TYX) 5.43 percent. On the economic front, third-quarter gross domestic product was revised down to 2.2 percent from the previously reported 2.4 percent rate. And weekly jobless claims rose 34,000 to 354,000. View Economic Preview, economic calendar and forecasts and historical economic data. Turning to the currency market, dollar/yen slipped 0.7 percent to 112.05 while euro/dollar put on 0.7 percent to 0.9154.