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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: solihull who wrote (76736)	5/10/2001 12:15:31 AM
From: t2	Respond to of 99985

John, My take on the labor market is the same. Wage pressure downward in return for job security. I have seen a few of the reports with announced pay cuts. Also agree that wage pressures will not be there. For now we are just seeing a lag between the time the job cuts or wage freezes are announced and when the show up in the data. That is why Greenspan has made it clear that he is not fighting inflation. Same applies to the weekly jobless claims that spooked a lot of people last week with an over 400k new claims number. Of course, later we got commentary that this is normal..and we could see rising claims even when the economy is on the upswing. The other key factor that will prevent inflation in the near term is the strong US dollar. If the Europeans cut tomorrow, I would bet on a stronger Euro...which may seem kind of odd for a currency to gain on rate cuts. However, that is what the US Dollar has been doing lately, leaving a lot of currency analysts confused. My concern also is loan defaults but I am not trading off that worry just yet...that could be a late summer thing. A lot can before then, such as a wealth effect if the market gains which would offset some concerns about debt levels. Just choosing to ignore the loan default issues as long as the economy does not get much worse. If the bottom is reached in a month or so, banks and tech are in good shape, IMHO. Tech spending will be a big key and I have been reading more positives in this area lately...much more than a few months ago. You are right..it is like walking a tightrope.

To: solihull who wrote (76736)	5/10/2001 12:34:31 AM
From: t2	Read Replies (1) \| Respond to of 99985

Poll: Economists Boost 2001 Forecast ..speaking of economists; starting to think that economists may be about as useful as stock analysts.<g> biz.yahoo.com

To: solihull who wrote (76736)	5/11/2001 10:46:35 AM
From: solihull	Read Replies (1) \| Respond to of 99985

Re: STOR Upgrade Analysts from Morgan Stanley Dean Witter project the SSP market to grow to $15 billion by 2005 (currently about $300 million). Storage service providers (SSPs) who specialize in off-premises backup to ISPs, ASPs, and others requiring large amounts of storage to support e-commerce are expected to see explosion in demand. It's only a matter of WHEN: economic recovery, capital spending begins to increase, etc. Optical service providers claim storage networking generates the leading demand for its services. For these companies it is a necessity, IMO. "StorageNetworks (STOR) 18.02 +1.22: Dain Rauscher Wessels upgrades to BUY SPECULATIVE from NEUTRAL rating with price target of $28 based on firm's confidence about its market position and enterprise demand; despite economic uncertainty, firm believes enterprises are actively looking for storage optimization, management, and cost-cutting solutions; STOR is the market-leading service provider and is the only SSP with management and infrastructure services." j