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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: Logistics who wrote (6496)	10/17/1998 11:20:00 PM
From: FawnVu	Respond to of 119973

Some thoughts for next week....Tuesday is a day to watch for Tech and Net with IBM, MSFT, MSPG, PSIX, SEEK earnings releases... Next week: relief for stocks? October 16, 1998: 5:19 p.m. ET NEW YORK (CNNfn) - Wall Street might finally be on the way to a recovery next week after a surprise interest-rate cut helped calm fears about third-quarter earnings and beleaguered global markets. But some analysts said a turnaround was already in the works when the U.S. Federal Reserve announced this week it would lower two key interest rates by a quarter of a percentage point each. "We are now on are way back to new highs," said Charles Blood, director of financial markets and economic analysis at Brown Brothers Harriman & Co. "The key thing to realize is we're past the worst. The market is not going to go up in a straight line, but the worst period is over." U.S. stocks got pummeled early in the week amid a slew of good and bad earnings news. The market rallied on Thursday after the Fed's move, and the Dow Jones industrial average sailed up 330.58 points, or 4.15 percent, to close at 8,295.36. The hedge-fund debacle continued to unfold. The most recent victims are Merrill Lynch (MER) and BankAmerica (BAC). Merrill Lynch announced 3,400 layoffs after reporting a quarterly earnings loss for the first time since 1989. BankAmerica's shares also took huge losses after the bank announced dismal earnings because of a billion-dollar exposure. Abroad, major banks in Asia followed the Fed's example and cut interest rates. The Bank of Japan said its economy is still failing, but it has hopes for the nation's banking reform plans. Rumors were rampant that the Bundesbank, Germany's central bank, is poised to lower interest rates. The bank of England also hinted at a softening. Investors continued watching the International Monetary Fund (IMF) for announcement of a bailout package for Brazil. Many analysts said the est of Latin America could fall if Brazil is forced to devalue its currency. Companies like General Motors (GM) that posted steep third-quarter losses blamed their troubles in part on the Latin American situation. Given the turmoil in global markets, Frank Gretz, market analyst at Shields & Co. in New York, isn't convinced that the rate cut will be enough. "I don't want to rain on anyone's parade, but I'm a little doubtful," Gretz said. "Most of the time when the Fed lowers rates it's good for the market. This time, the problem is related to the global economy." Gretz pointed out that Japan has had extremely low interest rates and it hasn't helped turn around the economy. "On the other hand, the market responded positively to the cut on Thursday," Gretz said. On Friday, the Dow continued to celebrate. The Dow Jones industrial average closed 117.40 at 8,416.76. That capped a remarkable week --in which the Dow rose 517.24, or 6.55 percent, the largest weekly point gain ever. What next for investors? Next week, there's little economic data or scheduled international events that will influence the market, Blood said. (Click here for a schedule of upcoming events). Roy Blumberg, an analyst with First Allied Securities in New York, warned investors that the market may see more choppiness in the days ahead. "We still have earnings to go through," Blumberg said. Joseph Abbott, an analyst with I/B/E/S, an earnings research company in New York, said the next three weeks will be heaviest for the release of third-quarter earnings results. "Next week will be extremely heavy for earnings news," Abbott said. Some Wall Street watchers are worried that the Fed cut interest rates because it has inside knowledge of an upcoming event next week that might hurt the market. "Everyone is always trying to smoke out the Fed," said Alan Hoffman, stock market strategist at Value Line Asset Management. Hoffman said he didn't think the Fed had any secret motive -- it just wanted to help avert a recession. (144K WAV) or (144K AIFF) .............................