Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Lycos -- Ignore unavailable to you. Want to Upgrade?

To: Leroyt who wrote (2153)	6/4/1999 6:32:00 PM
From: Alex Mt	Read Replies (1) \| Respond to of 2439

Leroyt - Wednesday I finally got disgusted with the slanted news reports and sent the following fax to SNAP, CNBC and Bloomberg: I cannot understand your continued and total obsession with a possible interest rate hike that will come sometimes in the future. As a stockholder it seems to me that you are primarily quoting (or misquoting) little known money managers with only one idea: rising rates will kill the market. I don't know how you pick them or find them but some individuals in this town have more money invested in the market than the funds controlled by the money managers you are quoting. Surely you could have featured the fact that Greenspan made no indication that rates are going higher rather than the opinions of the VP of Bank Hapoalim. And perhaps get the opinions of some better known personalities with more divergent opinions. As a business owner (data processing) I can assure you that rising interest rates will have no effect on my profit. If our expenses go up we simply raise our prices. Our clients do the same and pass the cost on to their consumers. Sincerely, Alex Majthenyi ------------------------------------------------------------------- Headlines on 6/2/99 I was responding to: U.S. Stocks Fall for a 7th Day in 9 on Interest-Rate Concern Bloomberg News Jun 2 1999 2:32PM ET U.S. Stocks Fall for a 7th Day in 9 on Interest-Rate Concern New York, June 2 (Bloomberg) -- U.S. stocks fell for a seventh day in nine on concern the Federal Reserve will raise interest rates at its next meeting. Computer-related shares, such as Microsoft Corp., and financial services companies including J.P. Morgan & Co. and Citigroup Inc. led the decline. The market's slump is ''clearly related to interest rates,'' said Michael Ranis, a senior vice president at Bank Hapoalim in New York, which manages $400 million. ''Tech stocks are being hurt because of their high price-earning multiples,'' and ''banks have a harder time making money,'' when rates rise. U.S. Financial Stocks Fall on Rate Concern; Nasdaq Rebounds Bloomberg News Jun 2 1999 3:36PM ET U.S. Financial Stocks Fall on Rate Concern; Nasdaq Rebounds New York, June 2 (Bloomberg) -- U.S. banking shares, such as J.P. Morgan & Co. and Citigroup Inc., fell for a seventh day in nine on concern the Federal Reserve will raise interest rates at its meeting later this month. The declines were ''clearly related to interest rates,'' said Michael Ranis, a senior vice president at Bank Hapoalim in New York, which manages $400 million. ''Banks have a harder time making money,'' when rates rise. Stocks have slumped since the Federal Reserve said last month that it would raise rates if inflation accelerates. Higher rates tend to hurt corporate profits by boosting the cost of financing business expansion. . . . Fed policy-makers may raise rates as soon as their next policy meeting June 29-30 to cool an economy that's showing few signs of slowing, some economists said. Financial services companies are among the most sensitive to higher interest rates as they tend to dry up demand for loans and credit. Stocks began to pared losses after Fed chairman Alan Greenspan steered away from any discussion of rates at an address to exporters in Boston. ''When Greenspan made no indication rates are going higher, technology began to rally because'' they were among the worst hurt by the recent slump, Klee said. Berger Associates' Jares on Interest Rates: Market Comment Bloomberg News Jun 2 1999 3:36PM ET Denver, June 2 (Bloomberg) -- Berger Associates Inc. vice- president and analyst John Jares spoke about interest rates on financial news network CNBC. Jares manages the more than $75 million Berger Balanced Fund, which recorded a 34.38 percent return in 1998. ''I am a little worried about what interest rates are doing. I think that potentially we may have made a cyclical low in interest rates late last year in October.'' ''If we continue to head much higher from here, it could be a problem for the stock market, and specifically for stocks that have relatively high valuations.''