It’s been a bumpy ride on Wall Street for the first half of the year, with early gains in the stock market leveling off recently amid signs that the Asian financial crisis will depress corporate earnings at home. With half the year yet to unfold, the Business Journal asks:

What are your stock market predictions for the rest of the year?

Cheryl S. Prell (picture, Newsmakers 6/8 )

Partner

Allen, Matkins, Leck, Gamble & Mallory

After talking to my reliable sources, I am guardedly optimistic. The U.S. economy seems quite strong but the impact of the Asian crisis is difficult to predict.

Oscar Aguilar

Vice President of Finance

The Jim Henson Co.

The stock market will continue to grow at a moderate rate. As the economy’s growth starts to mature, inflation will start to inch up in the employment area. With unemployment so low, it is becoming much more difficult to find candidates without upping the ante on salaries. If salaries go up, inflation will also go up a little bit. In the second half of the year there will be ups and downs, but it will hold pretty stable. I don’t foresee a major drop.

Jane Hurd (picture, Newsmakers 6/8)

Co-Managing Partner

Rollo Associates

I think the stock market will continue on an upward trend with some volatility, assuming interest rates stay low and things in Asia start to slowly improve.

J. Scott Jessup

Vice President

Union Bank of California

I predict that the market will be slightly down for the second half of the year, due to the continuing problems in Asia. Companies have been spending money in preparation for the year 2000 and I feel that the spending might taper off.

Alexander Lee

Vice President, Strategic Planning

Guidance Solutions

The market will continue to see wide fluctuations in the amount of technology stocks. Investors will struggle with the basic issue of how to define the true value of companies, especially within the Internet space. However, as more companies turn to the Internet to engage in commerce, investors should find it easier to value these companies by looking at whether there has been an actual return on investments as measured through sales.

Mark F. Miller (picture, Newsmakers 6/1)

Executive Vice President and Managing Director

Digital Magic Co.

My anticipation is to see the fluctuations continue throughout the rest of this year, and I expect stabilization next year.