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Strategies & Market Trends : Z Best Place to Talk Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Susan Saline who wrote (28717)	1/30/2001 8:22:53 PM
From: Kelvin Taylor	Read Replies (1) \| Respond to of 53068

Look for cautious trading with an upside potential in the morning, as players await afternoon word on interest rates from the Federal Reserve. The Fed's actions will come at 2:15 pm ET. The majority opinion on Wall Street is that we have seen sufficient economic weakness to warrant another 50 basis point rate cut and most believe the FOMC will deliver. Some fear that "sell on the news" profit-taking will cut into share prices after the announcement, but any such effect is liable to be limited. Fighting the Fed is generally considered to be an unwise approach. Given the expected action, investors will begin wondering what stance the Fed will take with respect to subsequent cuts. At this point, it seems likely that the FOMC will maintain its bias toward easing. In that regard, it is worthwhile noting that fed funds futures are pricing in a high chance of a further 25 basis point cut by April. The continuing earnings parade will likely exercise a secondary, but still significant influence on the overall direction of today's trading.