Overheard On The Street

Here’s what they’re saying at mid-day:

Arnie Owen, Managing Director of
Equities, Cruttenden Roth: “I think what we are looking at here is more a lack of selling rather than a preponderance of buying. Every once in a while
even Santa has to bring a present, so I think we are looking at our present
today, but I don’t think that the real rally gets going until next year. If we
listen to Greenspan very carefully, he didn’t say we are not going to get a rate
cut, he just said we’re not going to get a rate cut yet. When certain things
fall into place, and my best guess would be him looking at maintaining the
increases in productivity coupled with an increase of unemployment, that’s when the Fed may cut rates.

“As Grinchy as that is, remember that what he is mostly worried about is wage price inflation. If you get unemployment upticking and
productivity increasing, then that sets the background for a rate decrease. I
think we just have to bide our time. I’ve seen a lot of babies thrown out with
the bath water, and I have a very, very long shopping list. I’m going to be like
everyone else this time and wait for that first or second week in January.”

Alan Ackerman, Market Strategist,
Fahnstock & Co.: “Today’s market is moving higher in a positive
fashion, however, the doubting Thomases still wonder whether this is a bear-trap
rally or a Santa Clause/Bush rally. Everything on Wall Street and at shopping
malls continues to be on sale. Stocks are heavily marked down. Retailers are
marking inventory down, and the consumer appears to be in no hurry to put money
to work. On balance, as the U.S. economy slows, there are those that would like
to be buying now but are somewhat concerned with the balance of tax loss selling
which so far this year has been wicked and oppressive.”

Brian Belski, Fundamental Market
Strategist, U.S. Bancorp/Piper Jaffray: “Bottom line, while the marketplace
has experienced more than one false capitulation signal over the past 60 days,
record equity fund redemptions coming at a time of increasing overall pessimism
and deteriorating market trends and performance is a significant data point in
our opinion. It speaks volumes as to the herd opinion, which has been
increasingly wrong this year.”