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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: michael97123 who wrote (15790)	6/17/2004 5:41:17 PM
From: Donald Wennerstrom	Respond to of 95525

Here are some snips from IBD's feature article in today's paper. Good news from the factories, but the market is not in a mood to notice. <<Factories 'On A Tear' Surge In May Output Is The Best Since '98 The output of the nation's factories, mines and utilities grew at its fastest pace in nearly six years in May, providing more evidence that the economy is surging. Industrial production rose 1.1% last month after a strong 0.8% increase in April, the Federal Reserve said Wednesday. The best gain since August 1998 topped Wall Street forecasts. Output rose 6.3% from a year ago, the strongest annual gain since May 1998. "Manufacturing is on a tear," said Richard DeKaser, chief economist at National City Corp. "Businesses have been unable to keep up with rising orders." With demand growing, inventories lean and unfilled orders rising steadily, "the manufacturing sector rebound has legs," he said. Factory output surged 0.9%, bringing the annual gain to 6.4%, a pace not seen since April 2000. High-tech production continued to lead, jumping 3.5% from April and 30% from a year ago. But gains were broad-based, with nonhigh-tech factory output up 0.8% in May. Excluding a 2.3% drop in output of motor vehicles and parts, nonhigh-tech production rose 1.1%. Output of consumer goods, business equipment, construction supplies and business supplies all grew at least 1%. U.S. manufacturing production stands just 0.3% below its all-time peak in June 2000, the Fed said. [snip] Fed Chairman Alan Greenspan told the Senate Banking Committee on Tuesday that "inflationary pressures are not likely to be a serious concern in the period ahead." He reiterated his belief that the Fed will be able to raise rates at a "measured" pace as it removes the aggressive monetary stimulus it put in place to revive the economy. Those comments, along with the modest rise in May's core CPI, cemented expectations for a quarter-point rate hike on June 30, not the half-point move investors feared. The Fed's anecdotal "beige book" report on the U.S. economy in April and May, released Wednesday, depicted a fairly benign climate for inflation.>> [snip]