By Evelina M. Tainer, Chief Economist, Econoday
4/6/01

One could say good riddance to March with its negative market sentiment. Unfortunately, the second quarter of 2001 is beginning inauspiciously, to say the least. The Dow managed to reach its lowest level in two years, while the Nasdaq composite index is at its lowest level since October 1998. The March employment situation showed a marked moderation in labor market conditions. Until now, lackluster economic figures were generally friendly news for financial market players because it meant that the Fed would more likely ease credit conditions. The March employment situation was certainly friendly news for the bond market for this reason. However, stock investors would like to see some pep in the economy - so that corporate profits might pick up in the second half of the year. The March report disappointed on this score.