More strong quarterly reports and official news of Lycos' acquisition could help investors keep their minds off Fed Chief Alan Greenspan's warnings Wednesday. Asian and European markets moved down, and the Dow is set to open lower.
Though the markets shrugged off another interest-rate increase Tuesday, they may struggle to stay optimistic as the news sinks in. While the Fed's hike of a half-point Tuesday was nothing for investors to balk at, after weeks of selling in anticipation of the move, Alan Greenspan's comments caused more of a stir. The Federal Reserve chairman hinted that rates could keep rising through the summer.
Hewlett-Packard (NYSE: HWP) volleyed past estimates in its second-quarter report Tuesday, earning 87 cents a diluted share. Its subsidiary Agilent Technologies (NYSE: A) also reported, meeting expectations with earnings of 32 cents a share.
China.com Corporation (Nasdaq: CHINA), Lycos (Nasdaq: LCOS) and CacheFlow (Nasdaq: CFLO) are slated to report Wednesday.
Terra Networks (Nasdaq: TRRA), finally confirmed rumors it would buy Lycos (Nasdaq: LCOS) Tuesday. The Spanish company will snap up Lycos for $12.5 billion in stock.
Expect the following issues to be among Wednesday's most active: Agilent, BEA Systems, Hewlett-Packard, Lycos and Veritas.
Tech stocks stayed positive Tuesday after the Federal Reserve did the expected. The Nasdaq Composite Index closed at 3717.57, up 109.92. The Dow Jones Industrial Average gained 126.79 to 10,934.57.
At the Bell
The Dow Jones industrial average may open about 87 points lower. The Standard & Poor's 500 index for June futures contracts was down 11.6 to 1460 at 7:31 a.m. EST in 24-hour electronic trading.
The Inter@ctive Week @Net Index was up 16 to 491.00.
Trading in Asia was on a downswing. The Nikkei 225 fell 0.84 to 17,404, Singapore's Strait Times index fell 2.08 percent to 2,011 and Hong Kong's Hang Seng was down 2.19 percent to 14,827.
European markets were also moving down. London's FTSE 100 dropped 1.83 percent to 6,202. The CAC 40 in Paris slipped 1.04 percent to 6,489 and the Xetra DAX in Frankfurt was down 1.57 percent to 7,255 at 6:55 a.m. EST.
Reuters contributed to this report.