No Stagflation

Lower-than-expected Producer Price Index numbers have helped stocks rise off
of morning lows, and the Nasdaq has even managed to turn positive in pre-market
futures trading. The Dow and S&P, however, are set for a negative open. An
earnings warning from Chase Manhattan Bank may be weighing on blue chips this
morning.

November’s PPI increased just 0.1% which was less than the 0.2% increase
analysts expected. The core PPI was flat, which was less than the expected 0.1%
increase. The PPI quelled most analyst fears of creeping stagflation.

The Dow futures are down 85 points, and the Nasdaq futures are up 1 point.

The S&Ps look to open down 5.30 points, while the yield on the 10-year
Treasury is down to 5.21%.

Thursday Movers

Chase Manhattan
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, and its acquisition J.P. Morgan
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, said it
would have a fourth quarter earnings shortfall because of rough capital market
conditions. Both stocks are trading more than 7% lower on Instinet.

Microsoft
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showed only modest declines in Wednesday’s selloff and
is looking at a slightly higher open Thursday. After closing at 57 1/4 on
Wednesday, Microsoft is trading up to 57 15/16 in pre-market activity.

TMP Worldwide
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was one of Wednesday’s winners that avoided the
Nasdaq selloff as it rose 4 3/8 to 69 5/8. TMPW is the parent company of career
search engine Monster.com and is slated to join the Nasdaq 100 on Monday Dec.
18. TMPW is currently trading slightly higher at 69 3/4 in pre-market activity.