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To: Jan Crawley who wrote (21785)	10/16/1998 8:53:00 AM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

From Briefing.com "Market Impact All you have to do is look at the changes in the major market indices here and abroad to appreciate the near-term impact of the Fed's action. Bias will remain positive over next couple of weeks as rate cut provided much needed psychological boost which will result in sidelined money flowing back into the game. Large-cap, industry leaders likely to be primary target as investors will want to remain liquid just in case. Over the intermediate-term, we aren't so sure rate cut will make much difference as market's problem wasn't high rates but weak corporate earnings. Rate cuts take time to work way through economy and given limited scope of cuts it is unlikely that corporate America will see an earnings turnaround any earlier than mid-1999. In other words, once the hoople wears off, we're still faced with fact that earnings projections for next couple of quarters remain way too optimistic. As earnings estimates start coming down so will sentiment. Long-term, it never pays to fight the Fed. But don't look for new record highs over next few months. In sum, rate cut reduces the downside risk and expands the trading range to the upside. Given where we were last week, not a bad scenario."