Overheard On The Street
Here’s what they’re saying at mid-day:
Frank Gretz, Market Analyst, Shields
& Co.: “There are a lot of tech stocks, though certainly not all, that
no longer seem to be able to go higher. Maybe it’s about valuations. Maybe it’s
about the economy slowing, and though companies don’t see it yet, the market
does. Or, maybe there’s a rat somewhere. If you look at the way the Nikkei acts,
you would think Japan’s about to go into a depression, something which
presumably wouldn’t be good for most tech stocks.
“Whatever the reason for the
action, it really doesn’t matter. What matters is the action itself, the simple
observation that many tech stocks, and virtually all of the semiconductors, are
having trouble going up, even when in theory they should; that is, when news is
good. It’s a tough market because the most watched and owned part of the market,
the technology part, isn’t acting very well.”
Paul Rabbitt, President,
RabbittAnalytics.com: “The season of high risk is behind us. The market
loves certainty. We are increasingly certain the Fed is done raising rates. The
combination of flat PPI in July, a tame employment report a week ago Friday, a
strong productivity report Tuesday, and a Fed Beige Book with no rate hike
arguments augur for no change of rate policy at the FOMC meeting on August 22.
Moreover, the Presidential election process heavily favors Bush/Cheney. World
economies are recovering while the U.S. economy is in control. We are raising
equity exposure to 85%, and we recommend reinvesting bond-trading profits back
into equities.”
Paul Desmond, President, Lowry’s Reports:
“Is the market half-full or half-empty? That has been the quandary for most
investors during the past four months. Either position could be argued
convincingly on any given day, with the major price indexes caught in narrow
trading ranges, and with as many stocks advancing as declining on a daily basis.
But, little by little, Demand is winning out over Supply, and the ‘half-empty’
market should continue to fill during the weeks and months ahead.”