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To: Ibexx who wrote (66146)	10/9/1998 5:23:00 PM
From: Ibexx	Read Replies (2) \| Respond to of 186894

Thread, Interesting perspective from Larry Wachtel (Prudential): October 9, 1998, 5:00 p.m. EST They left them laughing on Wall Street for a change. After crying a river for most of the week, bargain hunters stepped up to the plate today. And we were feel the key to today's success was yesterday volume exceeding 1.1 billion shares, third largest in history. Volume is emotion and big downside volume is big emotion and what the market has required is a capitulation of sorts. In order to go up, we needed a lot of give up. At the bell the Dow Industrial Average rose 167 points and the NASDAQ boomed with a 74 points gain. The Dow Transportation Index was up by 84 points and big board volume was heavy at 882 million shares in a pre-weekend session. However, before celebration, we'll give you the world. Rumors continued to circulate about possible Fed action but that is so much pie in the sky. And all the safe havens got smoked out today with long term treasuries getting clobbered and the Dow Utility Index falling over eight points. It was really a matter of key groups like technology and financial services getting overdone and rallying back. On the technology front, the four horseman of the NASDAQ finally moved up in concert. Microsoft gained five, Dell rose four, Intel was up over five and Cisco was a three point winner. Banks and securities firms, some of the hardest hit stocks in recent weeks rallied sharply. Among the brokers, Morgan Stanley Dean Witter gained over four, Merrill Lynch rose two and PaineWebber was a point sized winner. As for the banks, the newly formed Citigroup gained three. JP Morgan gained four and Bank America rose over four. Oil stocks fell as prices pulled back from recent highs. It would appear that demand from Asia is falling faster than production cuts from OPEC. Chevron Exxon and Mobil were fractionally lower. On the zeal to deal Allegiance Corp. gained 10 after agreeing to be acquired by Cardinal Health. Cardinal fell by nine and General Dynamics fell three. The company has agreed to buy Nassco Holdings. Vanstar was a point sized loser after agreeing to be acquired by Iancom. Negative bottom line hurt Shaw Group, Encad, and Scitex. U.S. Bonds tumbled for a fourth day, rounding out the worst week since July of 1996, amid speculation that hedge funds were selling bonds to offset losses in other markets. The 30 year treasury fell close to two points, pushing the yield up 11 basis points to 5.11%. The yield is up 39 basis points since Monday. Bonds also fell back as the Dollar showed no bounce from recent precipitous decline. Investors continued to hope for near term action from the Fed. Today Portugal and Ireland cut rates, following moves earlier this week by Britain, Denmark and Spain. Monday will be a semi holiday, as we honor Christopher Columbus but we still will require follow through. We must do it again and again until we get it right. _____ Ibexx