Blue Monday
Stocks are set for an open to the downside Monday, as personal income and
spending numbers are hinting that the economy continues to run hotter than economists think it should.
Personal spending rose 0.8% and personal income rose 1.1% for September.
Analysts had been looking for a 0.6% increase in spending and a 0.5% increase in
income.
The Dow futures are down 51 points, and the Nasdaq futures are down 47
points.
The S&Ps look to open down 9.70 points while the yield on the 10-year
Treasury is 5.71%.
Morning Movers
All eyes are on Cisco Systems
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PowerRating) as traders await the tech giants
earning which are due out on November 6. Cisco has been under pressure lately
and finished down 2 13/16 to 50 11/16 on Friday and is currently fighting to
stay above 50 in pre-market activity.
Tech bellwether JDS Uniphase
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PowerRating) battled back 2 13/16 to 77 1/4
Friday following a rough week that saw the optical networker beat earnings
estimates. JDSU is looking weak at the open, however, and is trading down to 76
in pre-market activity.
Terra Networks
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PowerRating) has completed its merger with Lycos and will begin
trading under the symbol TRLY on Tuesday. TRRA is currently trading up to 21
7/16 following a Friday close of 19 1/8.
Old Media Merges With New
Primedia
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PowerRating) has made a $690 million offer for Web content provider
About.com
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PowerRating) which values About at more than $35 dollars per share, a
significant premium to Friday’s $23 7/8 close. About is trading up 5 1/8 to 29
in pre-market activity. The deal suggests that some Internet companies may be at
attractive acquisition prices following the recent dot.com meltdown.