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Strategies & Market Trends : Z Best Place to Talk Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Larry S. who wrote (42534)	8/6/2002 8:18:44 AM
From: Kelvin Taylor	Read Replies (1) \| Respond to of 53068

Aug 6 (Reuters) - Stocks are poised for a higher start on Tuesday as investors rummage through the wreckage of a market trounced near five-year lows by a string of steep sell-offs. The broad Standard & Poor's 500 and the blue-chip Dow have suffered three straight days of declines, while the tech-packed Nasdaq has fallen for four sessions in a row. A slew of weak data, including tepid second-quarter economic expansion and a slowdown in growth in the key service sector, has triggered fears the U.S. economic recovery may have stalled. But investors are eyeing cheap shares after the Nasdaq slammed to its lowest close since April 1997 on Monday, wiping out the rally it scored at the end of July. As stocks skid and bonds rally, speculation is growing that the Federal Reserve will unleash yet another interest-rate cut to revive the economy. "I expect to see a positive opening but then I fully expect the Dow to turn around and test the 8,000 level again," said one trader. "There's still a lot of nervousness out there and you've got to expect big swings until people make up their minds about what the market holds." A quarterly earnings report from Web gear giant Cisco Systems Inc. after the close may keep a lid on buying during the session as investors wait for further direction from the technology bellwether. Wall Street has been grappling with fears the economy may be poised for a double-dip recession, defined as two periods of recession separated by a brief upturn. Within the past week, data has shown tepid second-quarter economic growth, a manufacturing slowdown in July and a slump in June construction spending. The Nasdaq Composite Index (NasdaqSC:^IXIC - News) fell for the fourth-straight session, down 41.91 points, or 3.36 percent, at 1,206.01. The index has erased a recent 115-point rally and carved out closing lows unseen since April, 1997. The Dow Jones industrial average (CBOT:^DJI - News) was down 269.5 points, or 3.24 percent, at 8,043.63. The broader Standard & Poor's 500 Index (CBOE:^SPX - News) was down 29.64 points, or 3.43 percent, at 834.60.