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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (33193)	6/30/2001 12:49:21 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 70491

June 30, 2001 Corporate Profits in Big Drop As Personal Spending Rises By REUTERS . . . "The decline in corporate profits has been one reason the Federal Reserve has cut interest rates six times this year. Companies invest less in new plants and equipment and lay more people off when their profits are pressed, lifting risks of recession. A recession is typically defined as two quarters or more of declining national output. " . . . "The report today, however, contained some optimistic signs about consumer spending, which accounts for two-thirds of national economic activity. More of that appeared later in a private-sector survey of consumer sentiment. The personal consumption expenditure component of the gross domestic product gained at a relatively healthy 3.4 percent annual rate during the first quarter instead of the 2.9 percent previously estimated. That was up from a 2.8 percent rate of growth in the fourth quarter and showed that shoppers were still in the stores. A separate report, on the University of Michigan's consumer sentiment index, showed a gain for a second month in June, rising to 92.6 from 92.0 in May. "This is the type of reading we would expect to see as the economy turns into a recovery," said Drew Matus, an economist at Lehman Brothers in New York." nytimes.com