Although major indexes managed to nudge upward, investors lacked the confidence to provide any sort of sustained rally. At the end of the day, the Nasdaq gained 19.68 points, or 1.08 percent, to close at 1840.25 points. The Dow gained 79.72 points, or 0.81 percent, to end the day at 9878.78. And the Industry Standard 100 added 9.70 points, or 2.87 percent, to finish at 347.40. Economists questioned the validity and importance of better than expected consumer spending numbers released Friday.
People are still somewhat happy and willing to shop.
But I think the tone is too optimistic, and the worst is yet to come. Tal says that more important than the numbers released this week is the report on jobs in the non-farming sector coming out next Friday. I think Alan Greenspan will do the same, and a slow down there will mean that things are worse on a broader base. It was the big-cap stocks that led the trudge ahead in technology. Gillette CEO James Kilts told employees that the company's plans called for zero overhead growth in 2001 and that he will review spending and headcount numbers.