Stocks Slipping
Stocks are headed lower Wednesday following Monday’s holiday-shortened
session that took the Nasdaq to within striking distance of 4000.
The Dow futures are down 30 points, and the Nasdaq futures are down 42
points.
The S&Ps look to open down 6.80 points while the yield on the 10-year
Treasury note has eased to 5.97%.
In economic news, the index of leading economic indicators for May will be
released at 10:00 AM ET. Street estimates look for a 0.1% decline.
This Morning
Computer Associates
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CA |
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PowerRating) warned that its first quarter earnings would come
in lower-than-expected because of a slowdown in revenues. After closing Monday
at 51 1/8, Computer Associates has traded down to 38 on Instinet.
In other earnings warning news, North Carolina-based Centura Banks
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CBC |
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PowerRating)
said that rising interest rates would cause its second quarter earnings to fall
short of analyst expectations. Centura closed Monday up 2 to 33 15/16.
On Monday
Silicon Storage Technology
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PowerRating) rose 10 11/16 to 99 on Monday after
announcing that it expected to have stronger-than-expected second quarter
earnings. Following Monday’s run-up, SST is trading down to 88 1/2 in pre-market
activity.
Following last week’s big gains ahead of being added to the S&P 500,
Broadcom
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BRCM |
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PowerRating) is easing in pre-market activity. The chip maker closed
Monday at 220 17/32 and is trading down to 218 in pre-market action.