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To: Paul Kern who wrote (9068)	5/7/2001 11:00:46 AM
From: Tom Hua	Respond to of 19633

BARRON’S, May 7, 2001 Market Week, page MW15 “In the past month the NASDAQ 100, or NDX, index has rallied over 40%. “Even for technology stocks, this is an impressive gain for such a short period,” says a Lehman Brothers’ Equity Derivatives and Quantitative Research department. During the same period, NDX implied volatility, as measured by the VXN, the Chicago Board Options Exchange’s Nasdaq volatility index, has fallen sharply – from highs approaching 80 to a low on May 2 of 63.9. “The last time the VXN broke below 65, on January 23, the NDX began a long, steady 10-week selloff from over 2,600 to below 1,400. Says the Lehman report: ‘For those investors who participated in the healthy 40% rally over the last month, we believe now is a good time to protect those gains. We recommend buying puts either on the indexes or the stocks.’ “Alternately, Lehman suggests replacing technology stocks in a portfolio with call options. Investors lock in gains by selling stock, while the call they purchase provides a new floor for upside potential.”

To: Paul Kern who wrote (9068)	5/7/2001 2:27:28 PM
From: Tom Hua	Respond to of 19633

Monday May 7, 1:48 pm Eastern Time Economic impact of energy costs unclear-Fed's Jordan ATHENS, Ohio, May 7 (Reuters) - The impact of higher energy costs varies across the United States and it is largely unclear how recent price rises will affect the U.S. economy, Federal Reserve Bank of Cleveland President Jerry Jordan said on Monday. Jordan, speaking to reporters after addressing the local Rotary Club, said that since consumers can react to price changes in different ways, it is impossible to predict how the economy will be affected. For instance, he said, some consumers might cut down on their driving, or they could switch from a sports utility vehicle to a smaller car. ``They can spend less on something else, they can invest less if they have discretionary income,'' he added. But he noted that energy costs are something that has a broad impact on consumers. ``Any relative price change has a differential impact,'' he said. ``Energy is the one that tends to affect most people.'' Jordan also noted that people in different regions seem to have different reactions, adding: ``It's really very hard to generalize.'' Earlier on Monday, the government said that despite a slowing economy and higher fuel prices, Americans would buy more gasoline at the pump than expected in the period through to September. In its monthly energy outlook, the Energy Information Administration -- the Energy Department's statistical agency -- revised up gasoline demand in the current quarter by 100,000 barrels per day (bpd) to 8.61 million bpd, and also by 100,000 bpd in the third quarter to 8.78 million bpd. Demand is expected to grow even though the EIA believes the national average gasoline price could hit a record $1.75 a gallon this summer, breaking the previous record of $1.68 reached last June. The White House said on Monday that President George W. Bush is ``very concerned'' about rising gasoline prices but will resist short-term solutions.

To: Paul Kern who wrote (9068)	5/7/2001 2:48:51 PM
From: Tom Hua	Respond to of 19633

Paul, RBAK under pressure dragging down other networkers. 14:27 ET California Power : A hint of the summer to come: California is on Stage 2 alert today as hotter temperatures are boosting electricity demand. Stage 2 alerts indicate that reserves are less than 5% and typically require outages for customers that have accepted lower rates in exchange for interruptible service. Stage 3 is the highest level alert and typically involves rolling blackouts. 14:20 ET Redback Ntwrks (RBAK) 21.60 -0.02 (-0.1%): Sources at Thomas Weisel telling Briefing.com that firm is making cautions comments on the stock; in particular, firm concerned that current estimates may be unachievable; numbers will have to come down. Regards, Tom