More Trouble In Tech-land
Stocks are looking at a mixed open Friday as yet more recessionary storm
clouds appear on the horizon. This time the trouble is in Austin, Texas.
Dell Computer may layoff workers for the first time in the company’s history
in order to cut costs in what it sees as an increasingly difficult PC market.
Combine that with Cisco’s hiring freeze, and you certainly can see a lid being
put on the tech economy.
The Nasdaq futures are down 15 points, and the Dow futures are up 7 points.
The S&Ps look to open up a point while the yield on the 10-year Treasury
has eased slightly to 5.06%.
Since wage pressures were most evident in the tech area, these actions from
Dell and Cisco should clearly signal the Fed that wage inflation has become
non-existent. This could possibly provide the rationale for another pre-meeting
rate cut.
Friday Movers
Dell Computer
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include layoffs. Dell closed down 7/16 to 25 1/4 and is trading down to 25 1/4
in pre-market activity.
Network Appliance
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bell Thursday, earning 11 cents per share. That is helping the data storage
company to trade up to 37 1/2 following a 35 1/4 close.
Also in the Storage arena, Storage Networks
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positive lift Friday as it is currently trading up to 22 following a Thursday
close of 20 13/16.
Oracle
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Oracle closed Thursday at 27 1/8 and is trading down to 25 5/8 in pre-market
activity.