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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (18747)	6/30/1998 11:00:00 AM
From: IQBAL LATIF	Respond to of 50167

U.S. Stocks Expected to Open Mixed as Second Quarter Ends According to bloomberg ' U.S. stocks are expected to open mixed and then rise on optimism for growing profits, low inflation and a strong economy'. Stocks ''will open mixed to down'' as some pessimists take advantage of the gains of the past several days to sell their shares, said Kenneth Ducey, chief trader at BT Brokerage, a unit of Bankers Trust Corp. The Standard & Poor's 500 Index rose for five of the past six sessions, pushing it to records, on optimism that corporate profit growth will meet or exceed expectations this quarter, and accelerate later in the year'. He doesn't expect the losses to last. ''Corporate earnings are slowing down somewhat, but that's in the market; it's been anticipated,'' Ducey said. ''The economy's still pretty strong and inflation is low. You can't really paint a rosier picture than that.'' Investors have been particularly heartened that bellwether companies in the computer industry such as Intel Corp. and Dell Computer Corp. didn't warn that profits would be disappointing this quarter. A Bloomberg report also said that ' As the second quarter ends today, some money managers are likely to sell their losers and pile into top performers to spruce up their portfolios for quarterly reports to shareholders. One indicator pointed to mixed share prices when trading opens. Standard & Poor's 500 Index futures for delivery in September fell 1.10 to 1150.40, which is still above the fair value of 1147.46 calculated by Bloomberg Analytics. That suggests that any losses will be limited, because traders who try to profit from the spread between futures and the underlying stocks wouldn't find it profitable to sell the stocks and buy the futures. September futures on the Dow Jones Industrial Average fell 20 to 9077'. Weaker dollar may also help Stocks. According to Bloomberg ' Stocks may benefit from the news out of Japan overnight. The yen strengthened against the dollar and stocks rallied after an official of Japan's ruling party said the government will approve a plan Thursday to clean up problem bank loans that have helped push the economy into recession. A strong yen and a recovery in Japan would mean more sales of U.S. goods to the world's second-largest economy. Other Asian nations also would benefit, bolstering their economies'.