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To: IngotWeTrust who wrote (9154)	4/1/1998 5:50:00 PM
From: Bucky Katt	Respond to of 116759

49r--This is a surprise>>>>Jones ruling seen boosting markets NEW YORK, April 1 - A judge's ruling to dismiss Paula Jones' sexual harassment suit against President Bill Clinton is likely to provide a short-term boost to U.S. financial markets, analysts said. Stocks, bonds and the dollar could gain as the news partially removes some of the political uncertainty surrounding the White House, they said. Some, however, said they thought the reaction would be muted. The following are their comments: TONY DWYER, CHIEF MARKET STRATEGIST AT LADENBURG THALMANN: -- "Bonds are up a little bit on the news already." -- ''I think you will have a knee jerk positive reaction in stocks and bonds, which will be offset later in the session. Longer-term I don't think it means that much for markets. The stock market did not go down because of the lawsuit so it does not make a lot of sense that it will go up much because it is gone.'' CHARLES GABRIEL, SENIOR POLITICAL ANALYST AT PRUDENTIAL SECURITIES: -- ''Just the fact that we get through this one hurdle doesn't change the fact that Clinton is still under the gun.'' -- ''But I would guess that, net-net, the initial reaction will be positive. Because nobody likes the perception of a potentially mortally wounded White House, or a White House on the defensive.'' PHIL ORLANDO, CHIEF INVESTMENT OFFICER, VALUE LINE ASSET MANAGEMENT: -- ''We never viewed the Paula Jones lawsuit having any financial market-related impact from the get-go. So we don't perceive the dismissal of this suit as having any greater materiality.'' -- ''I believe stock and bond market activity will remain muted until investors see Friday morning's all-important employment data.'' BILL MEEHAN, CHIEF MARKET ANALYST AT CANTOR FITZGERALD: -- ''Clearly there is a relationship between political uncertainty and how people feel about the market, but the market's been so strong it won't be easy to quantify the effect of this.'' -- ''When you have uncertainty, it's usually felt most in currency markets but even there the fundamentals have been very strong so the impact won't be as evident as if the markets had been weak.'' BILL SHARP, SENIOR ECONOMIST, CHASE SECURITIES INC.: -- ''At the margin, the dismissal of the (Paula) Jones case may have a positive impact on fixed-income markets because it shows the Clinton administration remains in control, bolstering prospects of pretty good fiscal growth and sound fiscal policy in terms of no real increases in spending.'' -- ''And continued high taxes revenues should result in further expectations of budget surpluses, which is good for the bond market. Also, (the dismissal) would create the impression that things are not as bad politically in the U.S. as they were perceived to be before this decision came out.'' A.C. MOORE, CHIEF INVESTMENT STRATEGIST AT PRINCIPAL FINANCIAL SECURITIES: -- ''It's likely to provide a psychological boost for markets. Markets, particularly as influenced by foreign buying, rely on a strong administration and a strong presidency. This news bolsters the strength of the current administration.'' -- ''Looking at only this in a vacuum and not considering matters of valuation or Japan, or Asia, or earnings, or any factors, it's a psychological positive. Markets always enjoy strength coming from the administration. Looking at it in a vacuum, it's a net psychological plus for markets.'' ARUN KUMAR, SENIOR U.S. EQUITIES STRATEGIST AT LEHMAN BROTHERS: -- ''I think it is a surprise. I think it reduces the uncertainty regarding the presidency which are positive for the markets. At the same time, other investigations are still going on ... It's not completely gone away but to the extent this particular case for time being is thrown out it reduces some uncertainty which is a positive for the markets.''