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To: Tweaker who wrote (58832)	8/18/1998 9:40:00 AM
From: Mohan Marette	Respond to of 176387

<-OT->Instant View- News from the Street. Tuesday August 18, 9:05 am Eastern Time INSTANT VIEW - US stocks seen up after CPI, trade NEW YORK, Aug 18 (Reuters) - U.S. stocks were set to open higher after new data on inflation and international trade. July CPI was up 0.2 percent both overall and excluding food and energy, in line with expectations. The June international trade deficit was lower than expected, down 8.9 percent to $14.15 billion. Economists polled by Reuters had forecast, on average, a $15.44 billion trade gap. There was relief on Wall Street after President Clinton admitted to misleading the nation and conducting an affair with former White House intern Monica Lewinsky. Following are comments from market analysts: PIERRE ELLIS, SENIOR ECONOMIST, PRIMARK DECISION ECONOMICS: ''I don't think it's going to be a big factor,'' Ellis said of Clinton's admission. ''The stock market is about fundamentals and the outlook for the U.S. economy is healthy. ''Maybe the dollar will be a little shaky...but long term, I don't think its going to be a big deal. It's a media event basically. It's beyond people's everyday concerns.'' Ellis said the inflation and trade data were positive for Wall Street and indicate the Federal Reserve is unlikely to raise interest rates at the FOMC meeting on Tuesday. ''Generally speaking (the trade figure) is good for the dollar. It's a generally stronger economy...The trade number is surprisingly good. Ordinarily, that's good news for our companies.'' The improving trade gap ''has the potential to make the economy too hot which would concern the Fed. But that's a very, very remote possibility.'' ROY BLUMBERG, CHIEF INVESTMENT STRATEGIST, JOSEPHTHAL & CO: ''The CPI number is not a major market-moving event, with core and overall both in line with expectations. People are not concerned about the Fed tightening monetary policy at this point because the damage to overseas currencies would be nearly unfixable in the short-term. ''The Clinton situation I have never seen to be a major concern. He had very little to do with the stock market going up, so why should he have anything to do with it going down. I think we have got some momentum on the upside, and we have put in a low for the correction. ''The market, in a zig zag fashion, is generating a recovery rally,'' Blumberg said. HUGH JOHNSON, CHIEF INVESTMENT OFFICER, FIRST ALBANY CORP: ''There's not going to be much of a reaction at all to the (CPI and trade) numbers. They're not going to be a major market mover, particularly given the focus on Russia and Asia.'' PATRICK DIMICK, SENIOR U.S. ECONOMIST, WARBURG DILLON READ: ''I think Clinton will have next to no impact on the market today and if we were to see anything it would have been already (reflected) in the dollar, which is mixed due to Japan and Russia. ''Inflation is consistent with the Fed doing nothing today. The trade deficit narrowed despite the weakness in Asia, but not because of a rise in demand, rather because of a sharp drop in imports. U.S. businesses drew down their inventories in the second quarter and the drop in oil prices exaggerated the decline.'' ''The narrowing deficit very much reflects weakness in demand from Asia. The numbers are consistent with wider deficits in the months ahead. The trade data will add to economic growth in the second quarter. September S&P stock futures were up 6.50 points on Globex after the data. Dow Jones futures were indicating a 40 point rise in blue chips at the open.