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.

Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: TechTrader42 who wrote (31162)	3/1/2002 1:22:01 PM
From: Daveyk	Respond to of 52237

I wasn't in that camp.Taking 30% off the table to lock in profits shortly cause who the heck knows?Not ready to short yet cause as you know the weeklies are looking bullish on the Dow.I sleep well on cash.

To: TechTrader42 who wrote (31162)	3/1/2002 1:41:13 PM
From: stockman_scott	Respond to of 52237

Recovery Gains Steam in First Quarter Friday March 1, 1:05 pm Eastern Time By Daniel Sternoff NEW YORK (Reuters) - It's all but official: 'R' is for recovery, not recession. Economic reports on Friday showed the nation's factories snapped an 18-month slump in February as new orders piled up, consumer spending and income growth accelerated in January and construction activity surged at the fastest pace in a year. ``Recovery is here and it is here more forcefully than I think just about anybody expected,'' said Richard Berner, chief U.S. economist at Morgan Stanley. A leading factory gauge showed manufacturing activity expanded in February for the first time since July 2000, ending the sector's deepest downturn since the 1990-1991 recession, as orders poured in at the strongest pace in eight years. The Institute for Supply Management's monthly Purchasing Managers Index rose to 54.7 in February from 49.9 in January, far stronger than the 50.9 level many on Wall Street expected. Stock markets surged on signals the recession that began last March may be over, and bond prices tumbled, pushing up market interest rates. An index reading above 50 denotes a growing manufacturing sector, which accounts for about one-sixth of overall U.S. economic activity. The index had struggled below that watershed for 1-1/2 years. SOME HEADWINDS REMAIN The institute said manufacturers continued to shed jobs in February, albeit at a slower pace, and a separate report showed consumer confidence dipped last month as stock markets stumbled and Americans remained unsure of the economy's path. Norbert Ore, head of ISM's survey committee, warned that factories still have lots of unused capacity, keeping business profits under pressure. ``It's going to take a while to fill that capacity to where they feel like they have pricing power,'' he said. His warning came two days after Federal Reserve Chairman Alan Greenspan offered a cautious assessment of the economy, telling Congress that a recovery was in the works but may unfold only gradually. The weight of the day's data supported signs of an economy gathering momentum, and a number of Wall Street forecasters said U.S. gross domestic product could be on course to post growth rates in excess of 4 percent in the first quarter. ``Despite the risks to the economy, such as potential retrenchment by consumers or the whole question of high debt levels, you seem to have the ingredients for a self-reinforcing recovery,'' said Carey Leahey, senior U.S. economist at Deutsche Bank Securities. U.S. stocks rallied strongly, with the Standard & Poor's 500 index gaining 1.5 percent to 1,123(^SPX - news), while 30-year U.S. Treasury bonds fell a full point to 98-11/32, yielding 5.49 percent(US10YT-RR) as signs of budding recovery reduced demand for low-risk government securities. CONSTRUCTION JUMPS, INCOMES RISE The Commerce Department said consumer spending, which drives two-thirds of economic activity, rose by 0.4 percent in January, its best showing since October. Incomes rose a strong 0.4 percent as lower tax withholding rates after last year's tax cut boosted disposable incomes. The government also reported construction spending jumped 1.5 percent in January after an upwardly revised 0.5 percent gain in December, with unseasonably mild weather supporting building activity through the winter. Morgan Stanley's Berner said that while the recent strength in construction and housing could soften in coming months, the economy was generating enough momentum to sustain a solid recovery. Most encouraging, he said, was that the improved factory activity was driven by strong underlying demand. After a year of aggressive inventory liquidation, this allows firms to meet orders from new production, not only from existing stockpiles. The ISM's New Orders Index surged from 55.3 in January to 62.8 in February, its highest since January 1994. ``It was a profits downturn that led to the capital spending bust. I think companies have cut costs enough to stabilize profit margins. I think we are seeing some modest improvement in capital spending,'' Berner said. The University of Michigan's consumer sentiment index slipped to 90.7 in February from 93.0 in January. But economists noted that while consumers were cautious about the present, they expected the economy to improve over the next six months. ``Consumers still remain optimistic about the future despite having some concerns about the present. This is very typical of a business cycle turning point,'' said Steven Wood, economist at FinancialOxygen in Walnut Creek, California. The ISM report also showed that export orders rose in February, suggesting that overseas economies were also recovering from a global downturn.