The slumping Tech sector will try and shake off a case of the post-Fed blues and turn its attention to a full slate of earnings reports Wednesday. The major markets in Asia and Europe fell and the Dow is set to open lower.
A day after the Fed disappointed some investors by not cutting interest rates, Wall Street will shift its focus to earnings today. Micron Technology (NYSE: MU), Micron Electronics (Nasdaq: MUEI), Cabletron (NYSE:CS) and Palm (Nasdaq: PALM) are among the headliners.
Qualcomm (Nasdaq: QCOM) and Research In Motion Limited (RIM) (Nasdaq: RIMM) announced a Code Division Multiple Access (CDMA) licensing agreement under which RIM may use Qualcomm's technology and patents to develop, manufacture and sell CDMA products.
For the first time in its history, AT&T (NYSE:T) is considering slashing its annual dividend from 88 cents a share to as little as 20 cents a share, according to a report in the Wall Street Journal. Ma Bell's move is designed to conserve cash and in the face of ratings cuts from credit agencies.
Citing reduced capital spending by Internet service providers and e-commerce sites, Foundry Networks (Nasdaq: FDRY) warned for its fourth quarter after the bell Tuesday. Shares of the company were hit hard in pre-session trading.
Expect the following technology stocks to be among Wednesday's most actively traded issues: Manugistics Group (Nasdaq: MANU), Jabil Circuit (NYSE: JBL), Vishay Intertechnology (NYSE: VSH), Tibco Software (Nasdaq: TIBX).
The Nasdaq continued its slide Tuesday, dropping 112.81 to 2,511.71. The Dow Jones industrial average lost ground as well, slipping 61.05 to 10,584.37.
At the Bell
The Dow Jones industrial average is expected to open down 52 points. The Standard & Poor's 500 futures index fell 6.4 to 1311.60, below fair value, at 7:21 a.m. EST in 24-hour electronic trading.
The Inter@ctive Week @Net Index dropped 22 to 294.08.
The major Asian markets fell. Both Hong Kong's Hang Seng and the Nikkei 225 saw triple-digit losses, down 257.32 to 14,930.72 and 217.94 to 13,914.43, respectively. Singapore's Strait Times slipped 31.54 to 1,929.32.
European markets were down as well. London's FTSE 100 dropped 97.40 to 6,197.60, the CAC 40 in Paris was down 96.15 to 5,862.71 and the DAX in Frankfurt shed 99.36 to 6,379.92 at 7:08 a.m. EST.
Reuters contributed to this report.