Overheard On The Street
Here’s what they’re saying at mid-day:
Liz Ann Sonders, Managing Director,
Campbell Cowperthwait, a Division of U.S. Trust: “I think the strength in the
Nasdaq and the related stocks, particularly in the Internet front, is probably
largely attributable to Yahoo’s great number yesterday, particularly given the
fact that Yahoo was under pressure due to concern about the exposure they have
to dotcom advertising and the implications that that was going to have. That’s
been a specific example of the general malaise in the dotcom companies and the
health thereof.
“I think the fact that they reported that less than 10% of their
advertising revenues are associated with questionable companies was nice in the
minds of investors. The fact that they beat earnings numbers by a couple of
pennies, and beat revenues, and really across the board the numbers were good,
that really has given a lot of strength to the rest of the market.”
Michael Lyons, Senior Trader, Morgan
Stanley Dean Witter: “They’re acting very well here, right across the
board. Yahoo earnings came in good and that sparked interest in the Internets.
Over-the-Counter is doing very well following a little trouble in the afternoon
yesterday. The Paine Webber-UBS merger has helped bring some interest into the
brokerage stocks. Across the board there’s decent volume, and confidence seems
to be returning.
“Earnings reports are going to be key, and we’re going to be watching
them closely. What’s been coming in so far has been promising, but on any hints
of negative news they’re taking them down. Yesterday Mr. Greenspan had comments,
and the fact they weren’t negative was a positive for the market. It gave
investors a boost in confidence as well as an excuse to get involved. Again,
there’s good volume and market breadth has also improved.”
Gregg Parise, General Partner, Dorado
Capital Management: “I’m trying to measure the safety of the market, and
the market feels healthier to me. I do still feel like we’re range-bound at the
upper end of the range, but overall it feels a lot healthier. Clearly, you’re
seeing new leadership in the market, and I think that you’re seeing that from
the optical space, both in the fiber companies and the component companies. The
moves that these stocks have had over the last four to five days are clearly,
clearly showing that they are going to be the emerging leaders going forward in
this next tech rally.
“The market just feels good here, and I think we are going to continue
to have a summer rally. I think earnings coming out during the next couple of
weeks are going to be fantastic, and barring seasonal weakness that will
probably hit in September and October, I think the first part of this third
quarter is going to be excellent.”