Economy’s Cooling
Signs of economic cooling have stocks set for a positive open Friday, as
third quarter GDP came in at a 2.7% rate which is much lower than the 3.5%
analysts expected. The impact of six rate hikes and a battered stock market
appear to be finally slowing the economy. The question now is whether we see a
soft or hard landing.
The GDP deflator, which is an inflation gage, came in at 2.5%, which was
slightly higher than the 2.4% analysts expected.
The Nasdaq futures are up 52 points, and the Dow futures are up 5 points.
The S&Ps look to open up 9 points while the yield on the 10-year Treasury
is 5.70%.
Morning Movers
Stronger-than-expected earnings from optical networker JDS Uniphase
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has helped allay fears of a technology meltdown, as JDSU earned 18 cents per
share versus the expected 16 cents per share. JDSU had traded as low as 62
Thursday before a late-day move took it back to a 82 5/16 close. The stock is
currently trading up to 83 1/2 in pre-market activity.
Related techs are also moving higher in tandem with JDSU, and Brocade
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is no exception. After falling 25 to 216 on Thursday, Brocade is trading up to
221 7/8 in pre-market activity.
Intel
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currently looking at a solid open. Intel is trading up to 46 in pre-market
activity, and that is its highest level since September 25.
Lycos
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language portal Terra Networks
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Lycos is trading up to 43 in pre-market activity. Terra is trading up to 21
following a close of 19 3/8.
Earnings Follow-up
Verisign
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handily beating earnings estimates on Wednesday. Verisign is currently trading
up to 144 3/4 in early-morning action.