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To: Bidder who wrote (75923)	1/3/2001 6:31:57 PM
From: Jim Bishop	Respond to of 150070

Good evening Jim, Here is your Money Mail for Wednesday, January 3. THE BUZZ AT THE BELL The day began with more than the usual shower of bad news: Lehman Bros. cut estimates for earnings at both Intel and Dell Computer; Office Depot announced it will close 70 stores; Ford Motor said that its December sales of vehicles in the U.S. fell 14% compared with a year ago; and Federated said its holiday sales fell from $3.31 billion in 1999 to $3.29 billion this year. Ouch! By midday the major market indexes were barely managing to keep even with Tuesday's close. And the sense of impending economic hardship was adding to the growing chorus of Wall Streeters demanding economic stimulus. And suddenly, at 1:13 p.m., they got it: The Federal Reserve announced a cut of 0.5% in the federal funds rate. It was a bold move that a growing number of people were demanding, but no one was expecting. Greenspan timed the announcement for maximum impact. Not only did it come between the Fed's scheduled meetings, it came in the middle of a trading session, rather than after the close of trading. At the New York Stock Exchange, in fact, a lot of traders were out to lunch when the news broke, and the floor was almost deserted. (Of course! Everyone was desserting.) But when they came rushing back, pow, stocks roared into a broad rally that left almost no one behind. The Dow gained 299 points and the Nasdaq gained 324. Leading the climb were some of the tech stocks that have taken the worst beating lately - communications, software and computers. Cisco gained 24% and Sun Microsysems was up 29%. Only a few safe havens, like energy and drug stocks, did not participate in the rally. Trading volumes set new records on both the NYSE and the Nasdaq and, for the Nasdaq, this was the biggest, one-day point and percentage gain ever. It may take a few months for the lower interest rates to have a real impact in the economy (and the Fed may not been done lowering rates), but the psychological impact should be felt sooner. Who'd a' thunk it? Greenspan can slam dunk backwards. To read CNBC.com's coverage of the rate cut: wwwrd.0mm.com Elsewhere today, present and former African-American employees of Microsoft are suing the company for $5 billion in a class action charging that Microsoft created a hostile environment in which decisions regarding compensation and promotion discriminated against African- Americans. The suit was scheduled to be filed today in Federal District Court in Washington, D.C. Coca-Cola's "Project Mother" (by which the soft-drink king plans to develop dairy-based beverages for kids that will also pass muster with Moms) continues to inspire comment. From our e-mail in-basket, we offer these unverified contributions: Laverne of the old TV sitcom "Laverne and Shirley" used to drink cola mixed with milk; a German firm called Parkbrau apparently sells a beverage consisting of cola and beer; Coke has been selling dairy-based sodas in Japan for several years under the label "Lactia;" and one reader suggests that Coke call their upcoming beverage "Lactola," with the slogan: "The udder soft drink!" The more we think about this dairy-based, soft drink for kids experiment, the yuckier it sounds. For us, at least, that makes it mooooooot. Peter Nulty Editor, Money Mail moneymail@online.cnbc.com MAJOR INDEXES AND VOLUMES * Dow Jones Industrials: 10945.75, up 299.6 or 2.81% * Dow Transports: 3014.87, up 140.76 or 4.9% * Dow Utilities: 374.93, down 23.8 or 5.97% * S&P 500: 1347.56, up 64.29 or 5.01% * Nasdaq Composite Index: 2616.52, up 324.66 or 14.17% * Russell 2000: 483.78, up 21.29 or 4.6% * 30-Year Bond Yield: 5.36% unchanged * NYSE volume (preliminary): 1.821 billion shares * Nasdaq volume (preliminary): 3.108 billion shares * To see our complete U.S. index list: wwwrd.0mm.com SCOUTING REPORT: THURSDAY The day could start enthusiastically, but watch to see if the momentum can be sustained as the sharp pencils on Wall Street start to calculate when the rate cut will impact corporate earnings and the economy. Expected Earnings * Bear Stearns (BSC) Q4 Est. 1.11 vs. Year Ago: n.a. * Great Atlantic & Pacific Tea (GAP) Q3 Est. -0.36 vs. Year Ago: 0.47 * Lehman Bros. (LEH) Q4 Est. 1.26 vs. Year Ago: 1.14 * Tenet Health Care (THC) Q2 Est. 0.50 vs. Year Ago: 0.43 Economic Calendar * Weekly jobless claims at 8:30 am EST * Retail sales (December) STOCKS * Where Is AT&T Headed? * In part one of this two-part story, we look at the blue-chip stalwart's disastrous 2000. wwwrd.0mm.com * Stocks to Watch * Joe Kernen's stocks for Wednesday: wwwrd.0mm.com