Overheard On The Street
Here’s what they’re saying at mid-day:
Scott Cummings, General Partner, Agile
Asset Management: “We’re seeing some speculation in the Nasdaq market with
a number of Internet stocks and single digit technology stocks breaking out on
speculation that we are going to have a stronger tape as we enter autumn. That’s
a bit disconcerting, however, I think technology is where you want to be. The
chip sector remains very strong. We’re having a pause in the semi equipment
space, and I think that area also has considerable gains in front of it. I think
we will continue to see a recovery in some of the wireless plays that were hurt
in July in and around Ericsson
(
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PowerRating) and Nokia
(
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PowerRating).
“So, I like the market, and I think we’ll come back here in September
with a number of investor conferences with the opportunity for company
managements to clearly indicate how strongly they feel about their fundamentals.
I think the tech side of the market could go a good bit higher. We’ve seen a
broadening out in a number of stocks throughout the Nasdaq in terms of better
performance, and I think we’ve built a pretty good base.”
Ricky Harrington, Senior Vice President
and Technical Analyst, Wachovia Securities: “I think today’s economic
numbers indicate a slower economy, and right now, the knee-jerk reaction for
this market is that a slower economy means less chance for interest rate
increases in the future. But the flip-side of that coin is that the slower
and the more rapid the economic slowdown, the more abrupt the slowdown in
earnings are going to be. It looks to me as if this could be signs of possible
stagflation at some point in time. And, you know, we’re seeing gold up today.
“But in any case, right now, the market’s reaction is the same as we
have seen all along, and that’s primarily due to two factors, one fundamental
and one technical. The fundamental factor meaning lower interest rates will
increase the chance for no further interest rates any time soon, but technically
it could be window dressing. You’ve still got money coming into mutual funds,
and nothing has really happened to change that equation. That’s the most
important thing, that money is continuing to flow into the equity markets.
That’s why we’ve had about a 25 day rally now.”
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