Overheard On The Street

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

Barry Hyman, Chief Investment Strategist,
Weatherly Securities: “You look for certain events or catalysts as turning
points in a market. We got down on the Nasdaq to critical support level again
around 3600. The first signs you look for at support levels are negative stories
and positive reactions, and you got that today on Nortel. Even though the stock
is down a lot, you’re still getting a positive reaction to a downgrade today
which is a positive sign. The market is searching for a catalyst. We’ve got to
get through the end of the week, but then the first catalyst to the market is
going to most certainly be the third quarter earnings where it’s important to
believe and see that after such a decline, the market reacts positively to
as-expected earnings as well as better-than-expected earnings.”

Michael Lyons, Senior Trader, Morgan
Stanley Dean Witter: “It’s acting very well today, and people are beginning
to feel better already about this market. We’re getting into the end of the
pre-announcement period, and the feeling is that most of the bad news is behind.
We’ve had a couple of big, high-profile companies drop some bombs here. The news
from Intel and Kodak really rattled investors. The feeling is now that the worst
is over, and since we start to see earnings next week, anybody who has bad news
has already sent it our way. You’re seeing some end-of-the-quarter window
dressing going on here too. Overall, it’s acting very well. Market breadth is
almost 2 to 1, with 1700 up and 930 down, so that’s great. Right across the
board you’re seeing good participation.”

John Roque, Vice President, Arnhold and
S. Bleichroeder: “New lows on Nasdaq totaled 250 on Friday and 233
yesterday. The 250 figure is the highest since Nasdaq bottomed on May 24
(3042.66 and 330 new lows) and though the current 10-day average is at its
highest level since June 2, after Nasdaq bottomed, it is accelerating. Perhaps a
daily new low figure near 300 will mark the Nasdaq’s bottom.”