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Technology Stocks : CyberShop International, Inc. (CYSP) -- Ignore unavailable to you. Want to Upgrade?

To: AugustWest who wrote (676)	1/28/1999 2:55:00 PM
From: Y-fall	Read Replies (1) \| Respond to of 884

Check this Out! Noteworthy News Summary: Investors' appetite for technology shares -- particularly Internet names -- may have been fueled by comments by Fed Chairman Greenspan this morning. The consensus for next week's FOMC meeting outcome is "no change" in interest rates. Highlights of Greenspan Q&A: In the question and answer session following this morning's testimony to the Senate Budget Committee, Fed Chairman Greenspan offered his perspective on the high valuations currently held by Internet stocks, and also used this phenomenon as a lesson in financial market operations. Addressing a question regarding potential "hype" in Internet investments, Greenspan began, "First of all, you wouldn't get hype working if there weren't something fundamentally potentially sound under it." He added, "The size of that potential market is so huge that you have these pie-in-the-sky type of potentials for a lot of different vehicles. And, undoubtedly, some of these small companies which have stock prices going through the roof will succeed and they very well may justify even higher prices. The vast majority are almost sure to fail. That's the way the markets work in this regard." Explaining how this provides an example of free markets in action, the Fed Chairman later said, "there is at root here something far more fundamental and indeed, it does reflect something good about the way our securities markets work: mainly that they do endeavor to ferret out the better opportunities and put capital into various different types of endeavors prior to earnings actually materializing." "That's good for our system. And that's in fact -- with all of this hype and craziness -- that is something that at the end of the day probably is more plus than minus." Investors appear to be ignoring Greenspan's observation that "the vast majority are almost sure to fail." At 2:00 p.m. EST, the Amex Internet index was up 4.0%. Consensus on Next Week's FOMC Meeting Outcome: A survey of 29 of the Fed's primary dealers by Dow Jones Newswires/CNBC showed a unanimous belief that the FOMC will hold interest rates steady at the end of their 2-day meeting on February 2 - 3. The actual rate announcement from the committee is expected at approximately 2:15 p.m. EST on Wednesday, February 3rd. The dealers argue against a further lowering of rates given recent economic reports showing continued strength in the U.S. economy. Even with such strong growth -- tomorrow's 4Q98 GDP figure is expected to come in at +4.5% -- the corresponding lack of measurable inflation provides the rationale for the belief that Fed won't raise rates. The current fed funds rate is 4.75%. The discount rate is 4.50%. Schwab500 Team J Denver 800-544-3007 email: Schwab500.DJ@schwab.com Warning All e-mail sent to this address will be received by the Charles Schwab Corporate e-mail system and is subject to archival and review by someone other than the recipient.