Red Monday
Election politics, legal maneuvering, media spinning and bad earnings from
Hewlett Packard have stocks heading sharply lower Monday.
The Dow futures are down 135 points, and the Nasdaq futures are down 88
points.
The S&Ps look to open down 15.5 points while the yield on the 10-year
Treasury is 5.75%.
Traders look toward the Federal Reserve meeting on Wednesday for guidance,
and some analysts believe a neutral inflation bias may be in the cards given the
political and earnings problems the market has encountered.
Morning Movers
Hewlett Packard
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PowerRating) said it earned 41 cents per share, and that was
well below the 10 cents per share that First Call/Thomson Financial has
expected. After closing Friday at 39 1/8, Hewlett Packard is trading down to 33
1/2 on Instinet.
Sun Microsystems
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PowerRating), which closed below its 200-day moving average
on Thursday, fell 8 3/8 to 89 1/4 on Friday. Sun is set for more downside Monday
and is trading down to 85 in pre-market activity. Sun Last traded at this level
on July 6.
Dell Computer
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PowerRating) lost 5 3/8 to 23 on Friday amid revenue and profit
concerns for box makers. Dell is trading down to 22 1/2 in pre-market activity
and will be looking for support at its October 11 low of 22 1/16. Below that,
Dell re-enters territory not seen since October 1998.
Hit hard in the storage product arena, shares of JNI Corp
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PowerRating) plunged
38 7/16 to 70 1/8 on Friday after news that its CEO would retire and that Sun
Micro
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PowerRating) planned to phase out purchsing one of JNI’s server-to-storage
products. JNI is currently trading down to 61 in pre-market activity.