The Doctor’s Prescription

  • October 2, 2001
  • Jon Najarian

The
meeting of Federal
Reserve policy
makers, expected to result in a half-percentage-point rate cut, will take center
stage on Wall Street today. If Alan Greenspan and his fellow Fed governors do
cut that much, it will be the ninth cut so far this year. That would put
rates at their lowest levels since 1963. I expect a 25-basis-point cut, but
certainly could see a 50-bps move in the cards. Either way, it’s only part of
the story, as all of us on the trading floor will wait to hear WHY and HOW MUCH
MORE. Here’s a quick chart of the Fed’s moves since 1999:





Other
stuff to watch today:

  • Tokyo’s
    Nikkei Average         rose for the fourth straight day to
    close above 10,000 on Tuesday for the first time since Sept. 14. Keep
    in mind that the drop in interest rates over in Japan hasn’t stopped their
    18-year bear market.

  • Compaq
    Computer     [CPQ|CPQ]         announced
    it will report a third-quarter loss of 5 cents to 7 cents a share; analysts
    had been predicting a profit of 5 cents a share. This is what’s going to
    weigh on US markets initially today.

  • The
    Robert Mondavi Corp.     [MOND|MOND]         lowered
    its earnings forecast, citing a slowdown in key travel and entertainment
    sectors due to a slowing economy and the Sept. 11 air attacks on the World
    Trade Center and Pentagon.

  • Merrill
    Lync    h
    (
    MER |
    Quote |
    Chart |
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    PowerRating)
    has upped its rating for many airline stocks.

  • Abercrombie
    & Fitch     [ANF|ANF]         will
    fall short of Q3 earnings estimates.