Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Ibexx who wrote (103012)	8/19/2001 12:39:46 PM
From: Ibexx	Respond to of 152472

08/19 10:45 Fed Weighs Rate Cut, May Be Last for Year: U.S. Economy Preview By Monee Fields-White and Alex Tanzi Washington, Aug. 19 (Bloomberg) -- Federal Reserve policy makers meet Tuesday to consider the seventh cut in interest rates this year, and economic indicators will probably show that previous reductions are beginning to spur a pickup in growth. Fed Chairman Alan Greenspan and his nine voting colleagues on the Federal Open Market Committee are likely to reduce the overnight bank lending rate by a quarter percentage point to 3.5 percent, based on a Bloomberg News survey of the 25 Wall Street firms that trade directly with the Fed. The current 3.75 percent rate is the lowest in seven years. The Conference Board's index of leading economic indicators for July, intended to look three to six months ahead, probably rose 0.3 percent, just as it did a month earlier, analysts said. The research group will release its report Monday. The economy ``likely bottomed in the second quarter and will return to a more robust pace of growth in the final half of the year,'' said Ryan Brecht, an economist at Standard & Poor's MMS in Belmont, California. The prospects for stronger growth ``will allow the Fed to be less aggressive with regard to interest rate moves'' after Tuesday. The economy expanded at a 0.7 percent annual rate in the second quarter and has grown at less than a 2 percent pace for four quarters, the weakest performance since the 1990-1991 recession. The minutes of the June 27 meeting of the Open Market Committee, when central bankers last cut interest rates, will be released Thursday. They may provide a glimpse of the views of Fed policy makers that will guide their actions this week and later in the year. The overnight rate was 6.5 percent at the start of the year. Economists are split on what they think the Fed will do beyond Tuesday's meeting. Thirteen of the 25 surveyed say a cut Tuesday will be the last this year, and 12 forecast at least one more reduction. Home Sales Probably Slipped The expected increase in the Conference Board's leading indicators index would be the fourth in a row. Brecht said he expects five of the 10 components that make up the index to rise, including a gain in the University of Michigan's index of consumer expectations. The consumer sentiment index has risen three times in the past four months and in August reached its highest level since January, according to a report last Friday. New home sales probably slipped 0.8 percent in July to 915,000 houses at an annual pace, analysts said. June sales at 922,000 were the fastest in three months and so far this year builders are on a pace to sell 930,000 new homes in 2001, exceeding the record of 886,000 sold in 1998. The Commerce Department will release the home sales figures Friday. One reason sales are likely to pick up is that the average rate on a 30-year mortgage fell to 6.92 percent last week, the lowest in almost five months. Builders are optimistic, according to the National Association of Home Builders' index of builder sentiment. which rose to a nine-month high in August. Sales and customer traffic increased, the builder survey showed. Budget Deficit, Claims Other reports due this week: -- The Treasury is expected to report a budget deficit of $1 billion for July, following a $5.1 billion surplus in July 2000, the first July surplus in at least 30 years, Treasury figures showed. The budget statement will be released Monday. -- First-time jobless claims, to be reported Thursday by the Labor Department, probably rose to 394,000 last week from 380,000 in the week that ended Aug. 11. That would mark the fifth week below 400,000, a sign the pace of firing is slowing. -- Durable goods orders probably fell 0.8 percent in July following a 2 percent drop in June. Previous reports, including the National Association of Purchasing Management's factory index, and anecdotal evidence ``would seem to support a further decline in July'' as manufacturing struggles to rebound after a yearlong slump, said Scott Brown, an economist at Raymond James & Associates in St. Petersburg, Florida. The Commerce Department's durable goods report is scheduled to be released Friday. Bloomberg Survey Date Time Period Indicator BN Survey Prior 8/20 10:00 July Leading Indicators 0.3% 0.3% 8/20 2:00 July Budget Statement $-1.0B $5.1B 8/23 8:30 8/18 Initial Jobless Claims 394K 380K 8/24 8:30 July Durable Goods Orders -0.8% -2.0% 8/24 10:00 July New Home Sales 915K 922K Federal Reserve, Treasury Tuesday, Aug. 21 Washington: The Federal Open Market Committee meets to consider interest rates and the economy. Wednesday, Aug. 22 Washington: Federal Reserve Governor Edward Gramlich speaks to the Neighborhood Reinvestment Corporation Training Institute on ``Issues Confronting Predatory Lending and the Digital Divide.'' Thursday, Aug. 23 Dallas: Federal Reserve Bank of Dallas President Robert McTeer speaks at a community development lending conference held by the bank. Washington: The Federal Reserve releases the minutes of the June 27 meeting of the policy-making Open Market Committee meeting minutes. Ibexx