Jan 25 2000 8:48AM ET More on Market Snapshot...
Market Preview: Greenspan Snowed Out
by Eric C. Fleming
Tuesday's market may get some relief after a broad selloff on Monday. But hanging over the head of profit takers and bottom fishers is the testimony of Federal Reserve chairman Alan Greenspan.
The Fed chairman had been expected to appear before the Senate Budget Committee to discuss the Congressional Budget Act this morning. But the event has been cancelled because of nearly a foot of snow in the Washington area.
On Wednesday, he had been scheduled to be back on the Hill for a confirmation hearing.
Normally, investors would be nervous about a Greenspan double header. But after Monday's 243-point drop in the Dow -- and given that Greenspan starts speaking after the market opens -- all bets are off for what may happen Tuesday.
In early morning trading, S&P 500 stock futures were up about 6 points and Nasdaq futures were up about 45 points. Neither figures really point out the direction of trading at today's opening bell.
Of course, it would help if the experts could figure out what happened on Monday. No one really knows.
"There [was] no catalyst," said Larry Wachtel, market strategist at Prudential Securities. "[People] are looking for a cause-and-effect and there is no cause-and-effect."
It's been long been expected that the Fed is likely to hike rates when it meets next on Feb. 1 and 2. Earnings have been generally on target or beat expectations and the Presidential race hasn't sprung any surprises thus far.
But bonds prices are climbing, trimming the 30-year yield to 6.65 percent from 6.71 percent on Friday. And rising oil prices have caught investors' attention.
"The fact that people bought bonds today is indicative that people are becoming more cautious," said Thomas Galvin, chief investment officer at Donaldson Lufkin & Jenrette, in an interview on CNBC TV.
"It's a rotational market, out of one sector and into another," said Jerome Castellini, president of CastelArk Management in an interview on CNBC TV.