Overheard On The Street
Here’s what they’re saying at mid-day:
Alan Ackerman, Market Strategist,
Fahnstock & Co.: “The close of today’s market is likely to bring many
sighs of relief as regards market performance in the year 2000. But once again,
investors in Wall Street have learned that there is no certainty like
uncertainty, and all eyes are expected to be on the Fed in January to see if the
Fed will be friendlier to the economy and to the market. The slowdown in the
U.S. economy has caught many corporations and individuals off guard, and there
is continued concern that recession risks are rising.
“Certainly yesterday’s consumer confidence figure is starting to feel
some of the shock of the slowdown. We remain in the tug-of-war between a hard
landing ahead and a soft landing, and many believe that the GDP could fall below
1% in the first quarter and/or the second quarter of next year. So, for me, as
the Fed goes, so goes the market.”
Brian Belski, Fundamental Market
Strategist, U.S. Bancorp/Piper Jaffray: “Equity funds reported outflows of
$2.7 billion last week, which represents the third week in a row of outflows in
excess of $1 billion. Internet funds reported outflows for the eighth
consecutive week. However, small-cap growth funds reported the first inflows in
seven weeks, and inflows continue to accelerate into banking/financial funds.
“The mixed data this week suggests to us that year-end capital gain and
ex-dividend procedures for mutual funds are still having a profound effect on
money flow data. However, with only $1.1 billion of the $72 billion of money
market fund inflows since November 1 being put to work this week, there
obviously remains a lot of cash sitting on the sidelines, which is a positive
for the stock market as it attempts top continue to solidify.”