There is a lot of concern about Cisco's earnings. Rather than risk major disappointment, people are saying it might be better to stay out of the market. And because it is a bellwether stock, Cisco will have an impact on other tech stocks. |
We seem to be showing a little bit of a recovery, we were at one point down double digits. |
We're coming close to a heavy reporting season. We will start to hear positive or ... more than likely negative surprises like what we saw with Computer Associates earlier. |
What all this tells us and is certainly telling the Fed is that maybe we need to examine what the sustainable growth rate really is. The risk is that we have an economy that is growing at a pace that historically suggests we should see inflation pressures, but we're not seeing that yet. |
What is clear is that Japan does not really want a strong yen. If the currency gets too strong it might stall the growth momentum we've seen coming out of Japan. |
You have to believe the productivity trend is very real, but at one point will it begin to taper off? That's a question financial markets and the Federal Reserve have been looking at very closely. |