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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: Jane4IceCream who wrote (2549)	12/6/1998 2:41:00 PM
From: Tim Luke	Read Replies (1) \| Respond to of 90042

take note: Sunday December 6, 1:31 pm Eastern Time WALL ST WEEK AHEAD-Markets back on economic seesaw By Jennifer Shaw NEW YORK, Dec 6 (Reuters) - Although it ended last week on a strong note, the stock market again displayed its soft international underbelly, raising fresh doubts about where the U.S. economy -- and the market -- were headed. The rejection last week in Brazil's Congress of part of a key social security reform measure jolted stock markets there and in the United States as investors fretted the hang-up meant efforts to steady Brazil's economy, including International Monetary Fund financial aid, were at risk. That, along with a profit warning from Boeing Co., linked in large part to weak economies in Asia, upset a stock market that had appeared to be made of Teflon as it roared back after last summer's decline. ''There still is a global financial crisis and it's a dark cloud over the market,'' said Hugh Johnson, chief investment officer at First Albany Corp. ''You can't tell when the crisis is going to resurface and it could be any time.'' For the week, the Dow Jones index fell 316.94 points to 9,016.14, despite a rally Friday sparked by a strong November jobs report that reassured investors, for now, that the economy continues to weather the global economic storm well. ''The verdict of the markets appears to be the outlook for for the economy is modestly positive,'' Johnson said. The market's split personality means upcoming economic data will draw intense scrutiny. A key report, November retail sales figures, is due Friday. The sales figures have tended to serve as an area of strength and analysts expect that to continue. ''The anecdotal evidence is very strong for retail sales,'' said William Cheney, chief economist for John Hancock Funds. ''In the near term, strong sales will be good for the market,'' he said. The Federal Reserve will offer another peek into its view of the economy when it releases its so-called Beige Book report Wednesday. The report is expected to reveal clues on whether the central bank will cut rates again at its December meeting. John Hancock's Cheney said he expected the report to show anecdotal evidence of a strong economy in all areas but manufacturing, which is still hurt by the Asian crisis. Another potential blow to the market could come on the earnings front. As the clock ticks toward year-end earnings reports, market watchers are concerned about profit warnings like Boeing's. ''The fact that the economy is healthy does not mean the outlook for corporate profits is that great,'' said Cheney. ''I think you've got a bit of a squeeze.'' With the year-end earnings period about a month away, investors will pay close attention to corporate news this week. On Wednesday, Merck & Co. holds its annual analysts meeting at its Whitehouse Station, N.J., headquarters. Wall Street is anxious to know what sort of strides America's largest drug maker is making in research and development. (Wall St desk 859-1730) --------------------------------------------------------------------------------