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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Lee Lichterman III who wrote (6777)	5/2/2001 2:59:54 PM
From: Lee Lichterman III	Read Replies (1) \| Respond to of 52237

Never mind the question. I just found it on another thread. This version sounds more rate cut friendly.... From: longdong_63 Wednesday, May 2, 2001 2:46 PM Respond to of 32502 2:25 PM FED TALK: There is nothing apparent in the Fed's Beige Book to suggest the FOMC won't cut rates at the May 15 meeting. The report begins: "Almost all districts report a slow pace of economic activity in March and early April. Retail sales were weak in March, but strengthened in April. Still, retailers in most districts are expecting only small gains, at best, in upcoming months." The report notes that higher energy prices have taken the place of wage pressures, which appear to have abated. The report, prepared by the St. Louis Fed, also notes that many districts report tighter credit standards. Regarding capital spending, the Beige Book said: "Businesses in most districts expect a slowing in capital spending this year; in the Philadelphia district, however, the number of firms planning reductions is offset by an equal number planning increases in capital spending budgets." Also: "The high-tech and telecommunications industries are experiencing a pronounced slowdown. Activity has eased in the Atlanta, Chicago, Dallas, Philadelphia, San Francisco and St. Louis districts, where new orders or sales of computer-related equipment have dropped. Sales of such equipment in the Boston district, however, are up moderately. The Atlanta and Dallas districts still have excess inventories of telecommunications equipment." A case can be made for one more 50 basis point rate cut, based on the report's comments on tighter credit standards, higher energy prices (which the Fed has said act like a tax on consumers) and retailer expectations of a small gains at best, plus the lack of remarks suggesting inflation concerns or that the economy is in better balance. A keyword search for "inflation" turns up one reference in the entire report: "Overall price inflation continued to be subdued in the (Atlanta) District."