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To: 2MAR$ who wrote (92)	6/18/2001 12:52:43 PM
From: 2MAR$	Respond to of 208838

Heading for the Exits : Seeing former market favorites plunge to new 52-week and all-time lows as institutions finally capitulate. Some of the names being blown out of portfolios today (and the past several days) include Ariba (ARBA 4.20 -0.62), Commerce One (CMRC 3.6 -0.29), Exodus (EXDS 3.55 -1.06), Metromedia Fiber Network (MFNX 2.52 -0.97).

To: 2MAR$ who wrote (92)	6/18/2001 1:19:04 PM
From: 2MAR$	Read Replies (1) \| Respond to of 208838

: DJ Fed's Minehan -2: Inflationary Risks Seen Down The Road BOSTON (Dow Jones)--The delayed impact of interest rate cuts and the effect of third-quarter tax rebates should set the economy up for a second half recovery, but there is no signs yet of a turnaround, Federal Reserve Bank of Boston President Cathy Minehan said Monday. Noting in a speech that economists at the Boston Fed are forecasting such a recovery in the economy, Minehan told a meeting of the Boston Municipal Research Bureau that she is "guardedly optimistic that the consensus forecast is a good one." "That is, starting in the second half, growth will pick up in both the (New England) region and the nation," she said. Minehan said that consumers are "the ace in the hole" for preventing a recession, because household spending has so far held up despite a sharp deterioration in manufacturing activity. "To those most seriously affected - the manufacturing sector - it sure feels like" a recession, she said. However, "so far, apparently, consumers have not moved into recession mode," she added. One source of support for consumption spending in the third quarter will come from the Bush administration's plans to send rebates to taxpayers in the third quarter, she said. "What will consumers do with the relatively small windfall? Historical experience with tax rebates suggests that consumers will spend about half and either save or pay off debt with the rest, but the split between consumption and saving could be 25/75 or even 75/25," she said. "If the split is 50/50, this would add between one-half and three-fourths percentage point to GDP growth, likely split between the latter half of the third quarter and the first half of the fourth," she said. Meanwhile, much of the impact of the two-and-a-half percentage points worth of interest rate cuts instituted by the Fed this year "will be felt in the latter part of this year, possibly providing a boost along with the fiscal stimulus just when other parts of the economy may be turning up," Minehan added. If this rebound occurs, it could start to generate inflationary risks "further down the road," Minehan warned, noting that "this may become a concern that needs to be addressed." -By Michael Casey, Dow Jones Newswires, michael.j.casey@dowjones.com; 201-938-2009 (END) DOW JONES NEWS 06-18-01 01:17 PM * end of story *

To: 2MAR$ who wrote (92)	6/18/2001 1:41:41 PM
From: $Mogul	Read Replies (1) \| Respond to of 208838

Intra-Day Market Talk: Monday, June 18, 2001 1:08 PM FED TALK: Boston Fed President Minehan is "guardedly optimistic" about the prospect for an economic rebound in the second half, according to wire reports. She believes tax rebates could add 0.5 to 0.75 percentage points to GDP by boosting third-quarter spending but that a rebound in business spending could take time. Inflation is a long-term concern for the Fed and officials are not sure yet if they have lowered rates enough, she said, according to the wires. Richmond Fed President Broaddus, speaking earlier, noted that the real Fed Funds rate (the Fed Funds rate minus inflation) is near 1% which limits the Fed's "leeway" to cut rates. The speech isn't yet available on the Richmond Fed's website but appears to be largely a repeat of a June 5 speech Broaddus delivered to the Washington Association of Money Managers.