Doldrums In Tech
On the heels of a 10% Nasdaq pullback, stocks are looking at a slightly
higher open Thursday as traders await the Chicago Purchasing Managers Index
which is due out at 10:00 AM ET. Analysts look for a reading of 38.9 for the PMI.
The Dow futures are up 10 points, and the Nasdaq futures are flat.
The S&Ps look to open up 2 points while the yield on the 10-year Treasury
is holding at 5.49%.
In other economic news, weekly unemployment claims rose 8000 to 419,000 which
again makes the case for additional Fed rate cuts to prop up the weakening
economy.
Thursday Movers
Semiconductors will be in the spotlight Thursday as the SOX attempts to
recapture its 50-day moving average. In the chips, Applied Materials
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is trading down to 48.75 following a Wednesday close of 48.95, and Intel is
edging up to 26.85 following its Wednesday close of 26.60.
Novellus
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PowerRating) looks under pressure, as the SOX component is trading
down to 44.90 following its previous close of 46.50.
Microsoft
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new Office XP software upgrade. Microsoft closed Wednesday at 69.19 and is
currently trading up to 69.40 in pre-market activity.
Citrix Systems
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PowerRating) is under pressure following a downgrade. Citrix
closed Wednesday at 25.09 and is currently trading down to 22.10 in heavy
pre-market activity.
Wednesday’s big loser Sun Microsystems
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PowerRating) is following up its 13%
decline with a slight bounce. Sun closed Wednesday at 16.25 and is currently
trading up to 16.31 in pre-market action.