More Warnings Woes
Following Tuesday’s impressive 5.6% surge, the Nasdaq is set for a negative
open in part because of an earnings warnings from chip maker Altera and telecom
giant WorldCom.
The Nasdaq futures are down 59 points, and the Dow futures are down 42
points.
The S&Ps look to open down 8 points while the yield on the 10-year
Treasury are up slightly to 5.74%.
Morning Movers
Altera
(
ALTR |
Quote |
Chart |
News |
PowerRating) warned that fourth-quarter earnings would come in at the
lower end of analyst expectations, and that has Altera and chip stocks heading
lower at the open. Altera rose 3 7/8 to 40 7/8 on Tuesday but is trading down to
33 in pre-market activity.
In addition to issuing an earnings warning, WorldCom
(
WCOM |
Quote |
Chart |
News |
PowerRating) said it will
spin off its long distance business in order to focus more closely on its higher
growth core businesses, and that has WCOM reacting to the downside. After
closing Tuesday down 2 to 21 3/4, WCOM is trading down another 1 1/2 to 20 in
pre-market activity.
Rambus
(
RMBS |
Quote |
Chart |
News |
PowerRating) is moving higher following word of a licensing agreement
with Samsung. After closing Tuesday down 7 7/16 to 46, Rambus is bouncing back
to 51 in pre-market activity.
Tuesday Follow-up
After gaining 12% on Tuesday, Cisco Systems
(
CSCO |
Quote |
Chart |
News |
PowerRating) is holding on to
those gains but id trading down slightly to 53 in per-market activity. Traders
will be watching Cisco to see if it can maintain support above that
closely-watched level of 50.
In the Net sector, Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating) bounced back 6 to 58 5/8 Tuesday but is
edging lower in Wednesday trade. Yahoo! is trading down to 56 3/4 in pre-market
activity.