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To: ace al who wrote (68754)	10/2/1998 8:28:00 AM
From: Dr. David Gleitman	Read Replies (1) \| Respond to of 176387

Well put. (Now I want my DELL shares back!!!) Globex is +8 David

To: ace al who wrote (68754)	10/2/1998 9:02:00 AM
From: Mohan Marette	Read Replies (2) \| Respond to of 176387

U.S employment report. AL T: I see another rate cut by the FED sooner. ========================================== Friday October 2, 8:41 am Eastern Time (Note: this article is ''in progress''; there will likely be an update soon.) US stocks seen higher, jobs report a mixed message NEW YORK, Oct 1 (Reuters) - U.S. stocks were expected to open higher, bouncing off their two-day slide, after a weaker than expected U.S. employment report appeared to confirm a slowing domestic economy. The report was eyed as a mixed message for stocks, as it reinforced worries about growth and corporate profits but also raised expectations of further easing by the Federal Reserve. ''If the Fed was unclear on what course of action to take, this should affirm we need an aggressive easing as soon as possible,'' said Philip Orlando, chief investment office at Value Line Asset Management. ================================ Friday October 2, 8:39 am Eastern Time U.S. job growth slows, unemployment up WASHINGTON, Oct 2 (Reuters) - U.S. payroll employment grew at its weakest pace in nearly three years in September and the unemployment rate rose as financial turmoil overseas hit the domestic economy, the government said on Friday. Payrolls outside the farm sector increased by 69,000 last month, an abrupt slowing from the 309,000 gain in August, the Labor Department said. The jobless rate edged up to 4.6 percent from 4.5 percent in August

To: ace al who wrote (68754)	10/2/1998 9:03:00 AM
From: LWolf	Read Replies (1) \| Respond to of 176387

ALT & All... a good write up on deflation and its impact on future earnings growth. From Mark Johnson's news letter, referring to economist Gary Shilling's new book, "Deflation" techstocks.com Excerpt: Future Earnings Growth Worth More Compared to older industries Shilling forecasts that companies that utilize technology will be able to better retain and expand earnings in the future. Part of this will be due to innovation, part to demand for new products, and part to the legal protection afforded technological advances. One point that was not emphasized in the book, and should have been, was that in an economy where deflation is occurring the present value of future earnings soars - which is why companies that can grow earnings in such an environment are worth much more today than they have been historically. When discounting future earnings to the present the impact of deflation on the value of future earning streams compounds. This results in a fair price/earnings ratio in a deflationary environment being a multiple of the price/earnings ratio you would expect in a mildly inflationary environment like we have experienced the last few years. While the current valuations of some technology stocks - especially Internet stocks - are absurdly high in our opinion given the risk, a deflationary environment could justify such valuations for technology companies that could grow earnings.