Nortel's profit warning Friday sent technology stocks reeling. The telecom equipment maker said its second-quarter net loss would exceed $19 billion--one of the biggest losses from a technology company ever. The news whacked the telecom sector.
Meanwhile, investors will be anxiously awaiting Oracle results after the market closes. The software maker has already lowered its forecasts for its fourth-quarter results, and is now expected to report earnings of 14 cents a share, below the 16 cents posted a year earlier, according to First Call.
Stocks to watch
? E*Trade Group could be active after a recent filing said it expects to record a pretax charge of around $6.8 million on investments in publicly held companies. The online broker said in a filing with the Securities and Exchange Commission that unless the market improves or a recovery is under way before the end of June, it will write down its investments at their fair market value, recognizing the pretax charge.
? eSpeed also disclosed some disappointing news in a filing. The provider of an electronic bond-trading system said it filed an amended Form 10-K for the year ended December 31 and an amended Form 10-Q for the first quarter of 2001, which both show lower revenue in those periods because of accounting changes.
? Oracle will report its fourth-quarter results after the market closes. The software maker is expected to report earnings of 14 cents a share, two pennies short of last year's fourth-quarter results, but above the 10 cents a share reported in the third quarter. Analysts also expect the company to generate $3.4 billion in revenue compared with $3.37 billion a year ago.
? Solectron will report its third-quarter results Monday. The contract-equipment manufacturer is expected to report earnings of 13 cents a share according to First Call. The troubled company has already lowered its expectations for the quarter. Solectron announced layoffs and said it will close a Georgia plant because of slowing demand.
At the bell
The Dow Jones industrial average may open 4 points higher. The Standard & Poor's 500 index for June futures contracts was up 0.5 points to 1,226 at 7:35 a.m. EDT in 24-hour electronic trading.
Reuters contributed to this report.