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Tech Industry

MARKET PREVIEW: Can techs sustain rally?

Techs should continue last week's rally at more subdued rate Tuesday. Asia and Europe also took a breather from post-Fed euphoria, and the Dow is set to open slightly lower.


Last week's three-day rally following the Federal Reserve's suggestion they won't be raising rates again brought the major indexes to record levels. The Dow Jones rose to a record 11,139.24, making the largest ever weekly point gain of 586.68 points or 5.56 percent. The Nasdaq Composite rose 188.37 points, or 7.4 percent for the week.

The market will likely follow last week's momentum through the next four days, buoyed by expectations of next week's flurry of second quarter earnings results.

The Securities and Exchange Commission is still deliberating the introduction of after-hours trading that could revolutionize the market. Otherwise, there's not much moving on the economic front.

The Inter@ctive Week @Net Index rose 6.73 to 321.

Expect the following technology stocks to be among Tuesday's most actively traded issues: Applied Microsystems Inc. (Nasdaq: APMC), Global Crossing Ltd. (Nasdaq: GBLX) and Solectron Corp. (NYSE: SLR). (Nasdaq: KOOP) may also move on news America Online Inc. (NYSE: AOL) has signed a deal to feature the site.

Investors closed out a terrific week Friday by pushing both the Dow and the Nasdaq to all-time highs. The Dow added 73 points to 11,139.24 while the Nasdaq closed up 35 points to 2,741.01.

At the Bell

The Dow Jones industrial average is set to open about 8 points lower. The Standard & Poor's 500 index for June futures contracts was down 1 point to 1404 at 7:30 a.m. EST in 24-hour electronic trading.


Trading in Asia drifted down from last week's highs. The Nikkei 225 fell 0.47 percent to 18,050. Singapore's Strait Times index lost 1.62 percent to 2,175 and Hong Kong's Hang Seng fell 0.92 percent to 14372.


European markets were also in a lull. London's FTSE 100 dropped 0.25 percent to 6,575. The CAC 40 in Paris lost 0.86 percent to 4,657 and the Xetra DAX in Frankfurt was down 0.41 percent to 5,602 at 6:40 a.m. EST.

Reuters contributed to this report.