Happy Independence Day
Stocks look to start the third quarter with a downward bias Monday in a
holiday-shortened session that wraps-up at 1:00 PM ET.
The Nasdaq futures are down 17 points, and the Dow futures are flat.
The S&Ps look to open less than a point, while the yield on the 10-year
Treasury note is 6.06%.
In economic news, the National Association of Purchasing Managers report will be out
at 10:00 AM ET. The consensus estimate looks for a figure of 52.9.
May construction spending is also out at 10:00 AM, and analysts expect a 0.2%
increase.
This Morning
Information management software maker Informix
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PowerRating) announced that it
expects its second quarter earnings to come in at 1 to 3 cents per share, which
falls significantly short of the 12 cents per share analysts had expected,
according to First Call/Thomson Financial. Informix closed Friday at 7 7/16 and
is trading down to 5 in pre-market activity.
Following the failed WorldCom deal, Sprint
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PowerRating) may have a new suitor. A
German newspaper reported that Deutsche Telecom
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PowerRating) may be in negotiations
to buy the phone giant. After closing down 4 3/4 to 51 on Friday, Sprint has
traded up more than 2 1/2 on Instinet.
On Friday
Broadcom
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PowerRating), which was added to the S&P 500 at the close on
Friday, gained nearly 20 points in the final 30 minutes of trading on
Friday to finish up 14 1/16 to 218 15/16. Broadcom is taking a bit of a breather
and is trading down to 217 3/8 in pre-market activity.
Citing higher gas prices and higher interest rates, recreational vehicle
maker Coachman Industries
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PowerRating) said its second quarter earnings would
likely fall short of First Call/Thomson Financial’s estimate of 43 cents per
share. Coachman closed Friday flat at 11 1/2 and serves as evidence of the
economic impact increasing interest rates and gas prices are causing.