Nortel Not Well
Earnings warnings from Nortel Networks and Palm are weighing heavily on
stocks Wednesday as all three major averages look headed for sharply lower
openings.
The Dow futures are down 108 points, and the Nasdaq futures are down 49.50
points.
The S&Ps look to open down 15.50 while the yield on the 10-year Treasury
is back up to 4.97%.
As for more signs of a potential bottom, how about the fact that the guest
host on CNBC is the former chairman of Campbells Soup and they are actually
cooking on the show.Â
Wednesday Movers
Telco supply giant Nortel
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PowerRating), which peaked last July at 89, closed
Tuesday at 16.76 and is currently trading down to 14.80 on Instinet.
The negative Nortel news is having a spillover effect on Cisco
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since Nortel is a top Cisco customer. Cisco closed Tuesday at 18 1/8 and is
currently trading down to 16 13/16 in pre-market activity.
Palm
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PowerRating) topped earnings estimates by a penny Tuesday but fell
sharply in after hours trade when it warned of a weakening outlook for its
business. Palm closed Tuesday at 15 9/16 and is currently trading down to 8 7/8
on heavy volume.
Handspring
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PowerRating) is trading lower in sympathy with Palm and currently
trading down to 11 7/8 following a Tuesday close of 16 3/16.