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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Diamond Jim who wrote (8129)	9/30/1998 10:25:00 AM
From: Jeffrey D	Read Replies (2) \| Respond to of 42834

*Leading Economic Indicators Remain Positive* More good news that supports Bob's bullish outlook for the markets. Jeff <<NEW YORK (AP) -- A key gauge of future economic activity held steady in August in a sign the nation's economy remains healthy and should continue expanding through early next year. The Conference Board, a private research group, reported today that its Index of Leading Economic Indicators was unchanged last month. It had rebounded 0.5 percent in July after two months of declines. The index, which stood at 105.5, was in line with economists' expectations. Michael Boldin, a Conference Board economist, said the index held steady in August despite a sharp decline in one of its components -- stock prices. ''The overall economy remains healthy,'' he said in a statement, adding that a majority of the other nine economic measures making up the index were in positive territory. ''The leading indicators point to a continuation of the expansion through at least early 1999,'' said the statement. The report was released a day after the Federal Reserve Board, in a widely expected move, modestly cut short-term interest rates in an effort to cushion the American economy from the turbulence in global financial markets. The Fed announced Tuesday it was paring the benchmark federal funds rate on overnight loans between banks by a quarter of a percentage point, from 5.5 percent to 5.25 percent. The central bank left untouched its symbolically important discount rate, which the Fed charges on its own loans to banks. It remains at 5 percent. Despite the rate cut, many U.S. banks seemed reluctant to cut their prime rates, which serve as a benchmark for many business and consumer loans, including home equity lines and credit-card balances. Chase Manhattan Bank, one of the nation's largest banks, today cut its prime rate to 8.25 percent from 8.5 percent. Norwest in Minneapolis had lowered its prime after the Fed's move.