I believe they are going to raise rates at least twice more after today.

We believe the Fed is done. But even if the Fed is done, it will continue to talk tough, stressing inflation risks, in part to keep markets from going to far too soon.

There has been talk recently about how, because productivity was revised down last year, it would belie the productivity miracle of the recent past. We believe today's data indicate that this is not happening.

Tech will have the worst performance of any S&P sector in 2001 with operating earnings per share plunging 73 percent. But next year (2002) we believe tech earnings will snap back strongly.

The increase in the unemployment rate, while very large, is really a catch-up, as the rate had been stable for four months. This brings the unemployment rate to where we believe it should be at this point.