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Strategies & Market Trends : Take the Money and Run -- Ignore unavailable to you. Want to Upgrade?

To: faqsnlojiks who wrote (5771)	6/26/2002 11:33:42 AM
From: MulhollandDrive	Read Replies (1) \| Respond to of 17639

"technology" is big...meaning covering a lot of territory..obviously telcom is being cannabalized..too many players (though seemingly shrinking fast thank you WCOM <g>) but yes....i think the buy when there is blood in the streets program may finally be kicking in wrt tech.... especially if we see more stories circulating like this.. story.news.yahoo.com Durables Goods Orders Rise Solidly in May Wed Jun 26,10:23 AM ET WASHINGTON (Reuters) - Orders for costly manufactured goods rose solidly in May, boosted by demand for computers and other capital goods, the U.S. government said on Wednesday in a report suggesting a modest pickup in business spending. Orders for durable goods, items intended to last for three years or more, rose 0.6 percent, the Commerce Department ( news - web sites) said. This was faster than the 0.4 percent rise in April and was exactly in line with analysts' expectations. "In general, our view is that the data is good news. Capital shipments were healthy, as were orders," said Michael Englund, chief economist at S&P MMS. "We need a turn in business investment." Demand for non-defense capital goods, an indication of business spending, excluding volatile aircraft orders, rose 0.2 percent, a sign of a modest recovery. Shipments in the same category were up 1.4 percent. Federal Reserve ( news - web sites) Chairman Alan Greenspan ( news - web sites), who was in the middle of chairing the Fed's two-day interest rate policy-setting meeting, has highlighted business spending as the key to a strong recovery. But analysts said the report was not strong enough to alter expectations that the Fed would keep interest rates unchanged on Wednesday. "While Greenspan probably pays closer attention to durable goods than the market does, there was nothing in this report to alter the outlook greatly," said Lou Crandall, chief economist at Wrightson Associates in New York. While analysts said the durable goods report was moderately good news, financial markets largely ignored the data, focusing instead on the multibillion dollar accounting scandal announced on Tuesday by WorldCom Inc., which weakened the dollar and caused stocks to tumble around the world. Excluding transportation, durable goods orders rose 0.6 percent, also matching Wall Street forecasts. Stripping out defense, durable goods orders rose 0.8 percent, after a 3.7 percent climb in April. Demand for computers and electronic products rose 1.0 percent, versus a rise of 2.9 percent in April, while communications equipment increased 1.6 percent. Demand for motor vehicles and parts fell 2.0 percent, after a 12.1 percent increase in April. INVENTORIES STILL FALLING In a sign that manufacturers are cutting back stocks, total inventories of durable goods fell for the 16th straight month, posting a drop of 0.6 percent, after falling 0.5 percent in April. This may indicate that manufactures will have to boost production to keep up with demand, a positive sign for the economy. "It's a good report, not excellent. It's indicating the inventory cycle is in a recovery phase and the manufacturing sector of the economy is in a healing process," said John Herrmann, chief U.S. economist at IDEAglobal. "The pace of layoffs has been down dramatically over the last several months, so manufacturing is set to go." The Fed was expected to announce its decision about interest rates at 2:15 p.m. EDT (1815 GMT).