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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Lane Hall-Witt who wrote (43277)	6/5/1999 11:20:00 AM
From: kendall harmon	Read Replies (2) \| Respond to of 120523

Padinha (James of thestreet.com) on inflation again, this time in the light of the just released employment report. He has been correct all year and needs to be heeded. Hourly earnings were growing at a 3.5% year-on-year pace three months ago; they are growing at a 3.9% rate now. Unlike other measures of hourly compensation, the employment-report measure of wages does not include stock options, so the fact that even this thing is accelerating will not at all sit well with G.[=Greenspan] Recall the following blurb. [Quote from Greenspan] Should labor market conditions continue to tighten, there has to be some point at which the rise in nominal wages will start increasingly outpacing the gains in labor productivity, and prices inevitably will begin to accelerate. And the service game? Year-on-year service-sector payroll growth averaged 2.8% last year. It's averaging 2.9% so far this year. Little Alex Tight and getting tighter, my droogs. It's as clear as an unmuddied lake. The May jobs report represents not a salve, but yet another thorn. The question now is HOW MANY increases, and when. A June 25 basis point hike is nearly a given. A tougher environment, but all changes bring opportunities.