Nasdaq down...


Experienced member
The Nasdaq Composite slipped 93 points to 2,796...

Came home very time to go through all details and unable to express an opinion as to where Nasdaq might head for from this point on..still I thought it would help to quote some analysts' views here..

Richard Dickson, technical strategist at Scott & Stringfellow: "Despite the big gains Tuesday and impressive breadth and volume, we think the jury is still out on exactly how far the market moves up from here..."

"..the strongest buy signals are showing up for the techs and the financials while sell signals are emerging in the energy, consumer staple and cyclical groups since those areas appear overextended in the short term and vulnerable to profit taking.."

Merrill Lynch told investors at its annul outlook gathering that it expects the economy to stage a soft landing in 2001. Chief economist Bruce Steinberg expects the Fed to ease policy, dropping the fed funds rate to 6 percent from the current 6 1/2 percent target. Steinberg added that the risk of a recession is low.

Merrill's chief quantitative strategist Richard Bernstein suggests that U.S. investors be overweight consumer staples, healthcare, high- quality financials, aerospace/defense, utilities and energy while underweighting in technology and telecom issues.

And chief market analyst Richard McCabe still favors gradual accumulation in old economy, value and mid-to-small cap sectors of the marketplace. He said he believes value investing will continue to do well over the next several years.

Finally, Merrill's technology strategist Steve Milunovich said that while he remains bullish on technology for the long term, valuations in some sectors are still high.

Salomon Smith Barney's John Manley: "..the actions reflect factors that will soon begin to ease fears of a hard landing...We believe that the recent statements by the Fed Chairman are an indication of lower short-term rates Greenspan's comments represent a meaningful shift, which lay open the potential for an eventual recovery in sentiment and in confidence..."

Erik Gustafson, a senior portfolio manager for Stein Roe & Farnham: "..the market is concerned with earnings preannouncements and we had another one from Bank of America this afternoon. ... Markets don't like that."

Hugh Johnson, chief investment officer at First Albany: "..even though we had a good day [Tuesday], there are some formidable hurdles for the stock market..the biggest hurdle is that many companies are going to be warning that their sales and earnings are going to be lower than expected or forecast for the fourth quarter. ... That is a strong headwind for the market."
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