2A- The Michigan Daily - Monday, October 1, 2001
Market in limbo: How low can it go? NEWSiN BRIEF
HEADLINES FROM AROUND THE WORLD .. .
NETW YORK (AP) -- A e d.: A. ld hif k, -.
1V C VVI Vt1 k~)- Hyr an a[I
half ago, the markets seemed invinci-
ble attheir lofty heights.
The Dow Jones industrials had
soared above 11,700 points and the
Nasdaq composite index hovered
near 5,000. Now even more modest
targets of 10,000 on the Dow and
2,000 on the Nasdaq are questionable
in the short term, say experts who
study how the markets move.
Five analysts and former Securities
and Exchange Commission Chair-
man Arthur Levitt recently discussed
the markets with The Associated
Here's what they had to say:
Ralph Acampora, director of
technical research, Prudential Securi-
"We might see 10,000 over the
next month, but the big question is
whether we've seen the bottom....
Would we have had as dramatic a
drop without the terrorist attacks?
No, but we were already rolling over.
... We started to see signs of potential
recession before this happened. And
what we got with terrorists is a guar-
"I think sometime next year, we're
going to make the final bottom."
- ~ o .ouman, c nie martx
strategist, A.G. Edwards & Sons Inc.:
"The market is as deeply oversold
as I've seen in my 40 years. But I
can't tell you when we're going to go
over 10,000. ... I think the market is
about 20 percent undervalued here -
I'm using the Dow. If we got up 20
percent we'd be at 10,560 ... and I'm
looking for that this year....
"For the Nasdaq to get back to
2,000 this year would be a pretty
hefty move. It could happen, but do I
project it? No."
® Arthur Levitt, former Securities
and Exchange Commission chair-
"What we're seeing today is over-
done pessimism rather than irrational
exuberance. (Investors should) look
at the market intellectually rather
than emotionally and be patient. I
don't try to predict the direction of
the market, where it's going to go and
when it's going to go. But no, I'm not
concerned. I believe the market has
acted very well."
U Jeffrey Applegate, chief invest-
ment strategist at Lehman Brothers:
"We changed our predictions for
the Dow after the terrorist attack. For
2002, we now have a target of 10,000
A trader checks the boards at the New York Stock Exchange Friday. The Dow
closed up 165.79 to give Wall Street a solid one-week rebound from the losses
that followed the terrorist attacks on the World Trade Center and the Pentagon.
High court docket unaffected by attacks
The Supreme Court, keeping to business as usual, opens its new term this
week facing familiar disputes over affirmative action and the death penalty as
well as new cases involving "virtual" pornography, identity theft and the rights
of workers with carpal tunnel syndrome.
This morning, the justices will hear the first of 49 cases that are scheduled for
argument this term, about half the number that will be heard and decided by next
Unlike the rest of official Washington, the court's work is unlikely to be affected
directly by the terrorist attacks of Sept. 11. The cases that will be heard this fall
were chosen in the spring. And none of them appear to raise Joe issues of detaining
immigrants, racial profiling or wiretaps, which have loomed large in recent days.
In retrospect, civil libertarians say they are relieved that some key legal issues
were decided last term. In June, the court protected the rights of lawful immi-
grants in a pair of five to four rulings. Even those who face deportation have a
right to plead their cases before a judge, the Supreme Court said. Congress had
tried to close the courthouse door to these persons.
In the second case, the court said the government does not have the power to
hold deportable immigrants indefinitely.
Commission investigates demonstrations
For eight months, even as Arab-Israeli violence has raged in the world outside
its hearing room, a state-appointed commission of inquiry has doggedly pursued
Israel's first public investigation into the way its police force treats Arab citizens.
In normal times, the revelations coming out of the Or Commission - the
three-man panel investigating why violent demonstrations convulsed Israeli Arab
towns and villages in October 2000 and why police shot dead 13 of the protesters
would be front-page news here.
In hundreds of hours of testimony, police officers have laid out how poorly
equipped, ill-trained and understaffed the force was when the riots erupted. They
have detailed slipshod investigating procedures in instances of officer-involved
shootings, and raised suspicions among the commissioners that they have coordi-
nated testimony. Most damaging for the force, senior commanders have acknowl-
edged ordering police snipers to shoot at stone throwers in violation of standing
orders on opening fire. But the commission's work has gone largely unnoticed by
Arabs and Israelis too worried about what the future holds to care much about
what went wrong a year ago and who should be held accountable.
for the Dow, before we were expect-.
"Until we have evidence of the
success of the anti-terrorist cam-
paign, of which I'm absolutely cer-
tain we'll have eventually, I think the
equity risk premium will be higher.
We're also in a recession so profits
are going to be lower.
"Our projections for the Dow are
conservative. I think 11,000 would be
a stretch for next year. It's more like-
ly that you could maybe get back to
that number in 2003."
ST. PAUL, Minn.
Workers plan strike
for better contracts
State employees planned to strike
this morning after failed contract talks
prompted leaders of the two biggest
employee unions to authorize walk-
Nearly 28,000 workers - more
than half of the state's work force -
could strike at 6 a.m. Only 1,700
prison guards are barred from walking
off the job. It would be the first gov-
ernment work stoppage in Minnesota
since it suffered a 22-day strike two
Leaders of the American Federation
of State, County and Municipal
Employees Council 6 unanimously
agreed Sunday to recommend that its
19,000 workers strike, said Peter Ben-
ner, executive director.
"We've done this with great reluc-
tance;' Benner said. "This is not how
we hoped this round of bargaining
About the time that President
Vladimir Putin's ultimatum to the
rebels in Chechnya expired, the
television in Khalamo Chagayev's
home in the Chechen village of
Avtury suddenly started showing
Chechen fighters killing Russian
"A fighter on the tape said that this
was their reply to the ultimatum," Cha-
It was a week ago that Putin went on
national television and gave the
Chechen separatists 72 hours to turn in
their weapons and contact Russian
In the days since, public debate has
focused on whether Putin's statement
was, in fact, an ultimatum to surrender
or whether it was a veiled invitation to
begin peace talks.
There is little clarity about the
Chechen position either.
Britain admits use of
bones in nuclear tests
Thousands of bones were removed
from dead British children without their
parents' consent during Cold War-era
nuclear tests, the nation's Atomic Ener-
gy Authority said yesterday.
The femurs of about 4,000 young
children were removed from 1954 to
1970, agency spokeswoman Beth Taylor
said. The bones were used in tests to
measure the effects atmospheric explo-
sions of hydrogen bombs were having
on humans and the environment.
"It is true that parental or relatives'
approval wasn't sought," she said. "We
assume that parents weren't asked
because it wasn't the norm at the time."
Similar revelations were made in
Australia in June. The Australian
Radiation Protection and Nuclear
Safety Agency said bones from dead
Australian children were once
shipped to the United States and
Britain for testing.
- Compiled from Daily wire reports.
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