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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: KM who wrote (70700)	10/8/1998 4:28:00 PM
From: D.J.Smyth	Respond to of 176387

Truff: the following article may help explain some of the action in Dell the past few days. currency exchange rates have been fluctuating, dollar vs. yen. the thinking is that hedge funds have been raising capital to cover their short yen position. bottom line for dell is that dell sells more pcs internationally, not less with fluctuating lower dollar. component costs are affected little since most computer components are not yen based purchases. Dell stated a rumor was started yesterday that Dell was calling institutions and suggesting that their growth models be modified for lower growth and Dell flatly denies this. some analysts were also saying that lower dollar equals recession. in 1995 the dollar was at, what, 85 yen? the stock market boomed. cheaper US goods. works both ways. with dell's price, can say need a stable open tomorrow for confirmation 15:02 DJS Market Talk Of Fed Intervention Stems Dollar's Skid Against Yen 15:02 DJS Market Talk Of Fed Intervention Stems Dollar's Skid Against Yen NEW YORK -(Dow Jones)- The dollar's freefall against the yen was checked Thursday on speculation the Federal Reserve Bank of New York might intervene to support the U.S. currency. While intervention never occurred, the rumors led the dollar to recover almost all of the nine yen it lost in Asian and European trading. Meanwhile, the dollar climbed against the mark and several other European currencies, on some short-covering and news that the International Monetary Fund and Brazil expect to reach an agreement soon on an aid package to support fiscal reforms. Late Thursday, the dollar was quoted at 119.45 yen, down from 120.55 late Wednesday in New York, and well above its intraday low of 111.73 yen shortly before 8 a.m. EDT, when it traded at a 16-month low against the Japanese currency. The dollar also was quoted at 1.6350 marks, up from 1.6165 marks late Wednesday. It had fallen as low as 1.5874 marks earlier Thursday. At the stage when the intervention rumors hit the market, the dollar had lost 17.2% of its value against its Japanese counterpart in less than three days. The intervention rumors, fueled in part by Fed telephone calls to New York trading desks, combined with some latent demand for cheap dollars, were enough to fuel a sharp short-covering rally in a very thin market. Some analysts said the Fed should have stepped in. Although prices have stabilized somewhat, they said, the foreign-exchange market is crying out for the kind of liquidity that only the Fed can deliver. The Treasury Department dictates intervention when markets become "disorderly." The description would certainly seem apt for Thursday's price action - a 9.4% plunge in the dollar from a Tokyo high of 123.45 yen to a low of 111.73 yen in early New York trading, followed by a 9.0% rebound to 120.70 yen in just 3 1/2 hours. Such volatility is disturbing, analysts said. Some of them, like MCM CurrencyWatch international economist Kevin Harris, believe the Fed missed an opportunity to contain it by restoring much-needed liquidity to a market from which nervous participants have withdrawn en masse. Others, however, including Citibank currency strategist Robert Sinche, applaud the Fed's caution and argue that its entrance into the market would have stoked the fire and created more, not less, volatility. Early Thursday, the dollar plunged against the the yen as hedge funds scrambled for a second day to raise Japanese currency to pay off their yen borrowings following Japan's moves to ease its credit crunch. The surge in the yen against the dollar Wednesday and Thursday is a "somewhat disorderly" movement that has pushed the Japanese currency to a level that "at this stage is inappropriate," the head of the International Monetary Fund, Michel Camdessus, said. Camdessus said that the world economy "is in a situation of crisis, where rationality isn't the most obvious feature of market behavior." The dollar was supported against the German currency amid selling of marks against the yen and the Swiss franc, as well as short covering, traders said. In addition, a possible aid package for Brazil is being viewed as dollar positive because U.S. banks have large exposure to the country. According to a joint statement issued by the IMF and the Brazilian government, Brazil and IMF officials will likely reach an agreement in the days ahead on a detailed program of fiscal and other macroeconomic and structural policies that could be supported financially by the IMF and the international community. Bob Katz, a dealer at MTB Bank in New York, said the dollar may also be finding support on reports that a new German tax-reform package could be bearish for the mark. He noted that dollar/mark spurred a flurry of buy orders when it broke through the key technical level of 1.6300 marks. The British pound was quoted at $1.7110, up from $1.7051 late Wednesday, trading at its best levels in six years after the Bank of England cut interest rates by one-quarter point to 7.25%. Many market participants expected the quarter-point reduction, though some had hoped for a more aggressive half-point cut.