Downward Drift

Stocks are set to drift lower Thursday after a revised Gross Domestic Product
figure showed that the second quarter economy was slightly hotter than
previously reported. Second quarter GDP was revised upward to a 5.6% growth rate
from the previous 5.3%.

The Nasdaq futures are down 21 points, and the Dow futures are down 14
points.

The S&Ps look to open down less than a point while the yield on the
10-year Treasury is 5.85%.

Morning Movers

Cisco Systems
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received a downgrade from Sanford Bernstein and
that appears to be weighing on Cisco in early morning action. Cisco closed
Wednesday up 2 3/16 to 57 5/16 but is currently trading down to 56 in pre-market
activity. Bernstein also downgraded Nortel Networks
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.

Optical networking companies have edged lower following a Wall Street Journal
article that raised the question of whether a slowdown in telecommunications
capital spending would affect some of the recent optical high-flyers. Ciena
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closed Wednesday at 123 1/8 and is trading down to 119 in pre-market activity,
while Juniper Networks
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is also lower, trading down to 219 after
closing at 225 on Wednesday.

Also in the optical space, JDS Uniphase
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fell 5 5/16 to 97 3/4
Wednesday, and that was its lowest level since mid-July. JDS Uniphase is
currently trading down to 96 1/2 in pre-market activity.

Wednesday Follow-up

Internet bellwether Yahoo!
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got slammed
Wednesday and fell 12 1/16 to 90 3/8 following the earnings warning from
Priceline. Yahoo! looks set to open lower and is currently holding its ground at
90 7/16 in pre-market activity.