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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Venkie who wrote (40689)	8/28/2001 9:39:47 PM
From: RR	Read Replies (1) \| Respond to of 65232

Oh geez.... 6-10? Uh, wonder how that fits in around here! Whoa! RR

To: Venkie who wrote (40689)	8/29/2001 9:44:27 AM
From: stockman_scott	Respond to of 65232

GDP Growth: the Weakest in Eight Years Wednesday August 29, 9:17 am Eastern Time By Glenn Somerville WASHINGTON (Reuters) - U.S. economic growth crept ahead at its softest pace in more than eight years during the second quarter, according to a government report on Wednesday that showed businesses were aggressively slashing inventories and cutting investment spending during the spring. Second-quarter gross domestic product, which gauges total economic output within U.S. borders, grew at a slim revised annual rate of 0.2 percent -- marking the weakest quarter for the economy since the first three months of 1993 when GDP shrank 0.1 percent. While the second-quarter figure was down from a previously reported 0.7 percent rate of growth and trailed the first quarter's 1.3 percent, it beat Wall Street economists' forecasts for a flat April-June quarter that could have sparked fears the economy was teetering on the edge of recession. Bond prices trimmed gains in the wake of the GDP report as recession fears eased. The dollar's value rose. In addition, U.S. stock market futures turned from negative to positive, and European share prices strengthened. Consumers provided the main lift for the economy's second-quarter gain, as consumption spending on goods and services was revised up to a rise of 2.5 percent at an annual rate from the 2.1 percent reported a month ago. Still, it was weaker than the 3 percent increase in the first quarter. Commerce said businesses reduced inventories at a $38.4-billion-a-year rate during the second quarter, up from a previous estimate of $26.9 billion made a month ago, for the most determined pace of inventory-cutting since the first quarter of 1983 when they were being slashed at a $42-billion rate. SOME SEE A SILVER LINING Some analysts said the GDP report was encouraging not only because the economy stayed out of negative territory but also because shrinking inventories meant better growth opportunities ahead. ``We're not going to be in a recession. Recovery is on the horizon,'' said economist Paul Kasriel of Northern Trust Co. in Chicago. ``Future new orders are going to be filled more from current production and less from past production or taking inventories off the shelf because in some industries the shelves are pretty bare.'' But others noted GDP still was anemic and that the trend was downward. ``We are still talking no growth here and the trend is clearly down,'' said Robert Macintosh, an economist with Eaton Vance Management in Boston. ``The market is going to interpret this at first favorably, but a more rational interpretation is that it is pretty darn weak.'' Underlining a generally lackluster economic performance for the period, companies reduced their spending on new production equipment more sharply than estimated a month ago, reducing it at a 14.6 percent annual rate instead of 13.6 percent.

To: Venkie who wrote (40689)	8/29/2001 11:52:40 AM
From: stockman_scott	Respond to of 65232

11:16 ET Yahoo! (YHOO) 12.10 -0.90: After meeting with Yahoo's management, Goldman Sachs says that current business remains difficult and that YHOO will only achieve the low end of the $160-180 mln revenue guidance range for Q3; does not think this is fully in the stock and it could add continued pressure; Goldman's channel checks also confirm business for Q3 has deteriorated relative to Q2, believes meaningful improvement is 8-10 months off.