Paul Nolte Quotations

We still like the fact that we're in an environment where no matter what happens in the economy, they (pharmaceutical companies) are still going to be doing business.

What a difference a week makes, from improprieties in the Japanese markets to still-higher oil prices amid diplomatic rumblings in the Middle East to less than stellar earnings.

We're getting a moderation in bond yields, and energy prices came down today. We're looking at things more favorably than this morning. There's still residual analysis about the Federal Reserve, and we're seeing some gamesmanship heading into next week's meeting, debating how more hikes we have.

We're still seeing reasonable growth in the economy ... and investors are figuring this is going to translate into strength in earnings.

We're still absorbing a lot of things. The risks right now are certainly still with the bond market. It's providing some good competition for stocks.

We ran out of gas after yesterday's large advance. We only had earnings news from a couple companies today, and that couldn't carry us.

I don't expect to see a sharp movement in stocks -- it will be a gradual erosion over time.

But that's more of a short-term phenomenon than anything worth paying a lot of attention to, ... it's going to come down to better economic numbers.

We may have broken out of our trading range, but we would like to see some follow-through before we commit additional dollars to the market.

Greenspan is not going to wake up in June of next year and say 'I should have really raised rates more aggressively.' His legacy of price stability is pretty secure so I don't think the last six months of his tenure will destroy it for him.

Overall it doesn't look too bad. The prices paid is a concern. We'd like to see it come down a little. It's an inflationary key.

Right now sentiment is all loaded on one side of the market. It gives you the idea we're running late in the game -- we may be in the process of putting in a short-term top in the market.

We have strong volume on down days, and weak volume on up days. That's the trend for the last couple weeks. That's telling that investors are more interested in selling than they are buying.

We're struggling with higher energy prices and also the rise in bonds, which is providing some competition for stocks.

There is some concern over drugs coming off of patents and the expense of those drugs, and in some cases, such as with Pfizer and Merck, the efficacy issues, ... But we still can't get away from the fact that we're looking at an aging population and drugs are an integral part of keeping us going as long as we possibly can.

To a certain extent, Bush's speech about increased spending in the U.S. Gulf Coast is helping the market. I am not too terribly surprised that consumer confidence is low because the number is colored by Katrina.

We went from being expensive 10 years ago to crazy expensive, and now we're back to just expensive.

We could see a 3 to 5 percent rally and still be within the context of a declining market,

Few companies are pounding the table and saying things are terrific so there's not the wild enthusiasm you would expect with a good earnings season,

So what is an investor to do? Based on Friday's response, it may yet be a long dark winter.

The upgrades are certainly helping Intel and Exxon, and that's boosting the Dow.

Already the futures markets are pricing in another rate hike and talk about a 5.0-plus fed funds rate is making the rounds. The currently inverted yield curve may also be a signal to the Fed that the economic growth of the past couple of years may be waning and any added tightening may be like kicking a good man while he is down.

The numbers are good from the Fed's perspective, even with November's ramped up numbers. Job growth is still slow and wage pressure has been nonexistent all year. If trends continue it could put pressure on the consumer. We may see the Fed have one more rate hike and then (be) done.

Stocks have had a real tough time maintaining gains this whole week. When we start taking a look around, gains tend to evaporate. Today, investors are looking at tech leaders. Those stocks are where the weight is being carried.

The ISM report did have a big impact on the markets, and part of the reason is that the economy is now more of a service economy. And services are going to be much more directly and more immediately impacted by the higher energy prices we have seen.

I know people are focusing in on the dollar, but if we take a look at last week's strong action, our view at least, is that the underlying economy does not warrant it.

If you look at the difference between PPI and CPI, the numbers have been in favor of PPI. What that means is that corporations are still struggling to pass through price hikes. We should see margin pressures on corporations through the rest of the year.

If you look at how the markets have been trading the last few days, we're seeing a much broader decline. We're not seeing a leader that can carry the day. It's not limited to a few stocks anymore. Disappointment is broadening out during this earnings cycle.

Investors are chasing commodity prices. Until we fall even lower, though, we're still in a trading range. We'll be very focused on inflation for the rest of the week. Economic numbers are coming a little weaker lately, adding to why the market is reacting poorly.

But whether the market is going to have the staying power beyond today, I think we will be able to determine that toward the close,

The important decisions haven't been made yet. You get the impression that there's not much really moving and ask yourself whether the optimism is really justified.

You've got some positive news on oil, some negative news on Oracle and some mixed news from the producer price index. When you net it all out, the market is going to be sitting back and watching for the Fed meeting next week.

The economic numbers are driving the bus. As long as the numbers remain kind of weak, if it doesn't look like we're getting much of a turnaround, then markets can continue to slide.

The foreign markets are on an absolute tear, so there's some thought that the liquidity might start coming back into the U.S. markets.