Techs should carry Friday's recovery into the new week with blue chips waking up a bit slower. Asia and Europe gained. The Dow is set to open a tad lower.
If tech stocks were sold at K-Mart, that blue light would be flashing in almost every aisle. Watch for bargain hunters to swoop in when the market opens and take advantage of too many investors that hit the panic button last week.
The broader markets are likely to get off to a slower start as institutions continue to digest economic data that seems to beeline towards the Federal Reserve pushing rates higher to stave off inflation.
A key point to note from last week is what shares were barely affected by the recent sell-off and actually made headway. One shining example would be Cisco Systems Inc. (Nasdaq: CSCO), which gained about $7 last week. Also, America Online Inc. (NYSE: AOL) gained about $5 on the week. These two stocks, with their huge floats and stature in their markets, make them less volatile than other Internet issues. Also, in times of doubt among Web stocks, many flock to these bellwethers, as illustrated by last week's moves.
For this week, expect the following stocks to be among Monday's movers: AOL may have another shot at AT&T's high-speed network, Cisco and Motorola bought a wireless company, High Speed Access and Wit Capital may get a second day of gains, Source Media cleans house and Synopsis buys back some shares.
On Friday, a positive jobs report for May helped carry stocks higher Friday. The Nasdaq gained 74.94 to 2478.26 and the Dow Jones Industrial Average went up 136.15 to 10799.84.
The Inter@ctive Week @Net Index regained 13 to 289 on Friday.
At the Bell
The Dow Jones industrial average is set to open a tad lower. The Standard & Poor's 500 index for June futures contracts dropped 1.7 points to 1,328 at 7:34 a.m. EST in 24-hour electronic trading, are indicating a 13-point drop in the global bellwether.
Asia was carried on Monday higher by Friday's rally among U.S. tech stocks. The Nikkei 225 in Tokyo rose 1.07 percent to 16,475, the Seoul composite in South Korea gained 5.62 percent to 842, Singapore's Strait Times index added 1.4 percent to 1,955 and Hong Kong's Hang Seng advanced 3.4 percent to 12,837.
European markets' gains were tempered by waning hopes for as swift end to the war in Yugoslavia. London's FTSE 100 rose 0.95 percent to 6,422, the CAC 40 in Paris advanced 0.88 percent to 4,382 and the Xetra DAX in Frankfurt added 0.47 percent to 5,148 at 7:54 a.m. EST.
Peace talks between Yugoslavia and the North Atlantic Treaty Organization faltered. The main issue of contention is Yugoslavia's refusal to meet NATO's demand that its troops withdraw from Kosovo. This, as well as allowing a NATO-led peace keeping force into Kosovo has been terms that Slobodan Milosevic has tried to wriggle around since the bombing began more than two months ago.