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HolidayBuyer's Guide
Tech Industry

MARKET PREVIEW: Earnings may extend rally

Earnings, rumors, and rivalry should put techs into high gear Monday. Asia was up, Europe was mixed, and the Dow is set to open slightly lower.

U.S.

AT&T (NYSE: T) came in with a positive third quarter surprise before the bell, putting techs in a good mood to continue last week's recovery. Reports from BMC Software (Nasdaq: BMCS), Computer Sciences (NYSE: CSC), and a host of others are also slated for Monday. Last week's earnings-sensitive markets should continue to be swayed by the reports, as IBM's Y2K warnings has put interest rates on the back burner.

Cisco shares should see some volume Monday on rumors the world's largest network-equipment provider might preannounce lower-than-expected first quarter earninges.

Dell Computer Corp. (Nasdaq: DELL) is starting to outpace ailing leader Compaq Computer Corp. (NYSE: CPQ) according to reports that Dell was the biggest seller of PCs in the U.S. in the third quarter.

Expect the following technology stocks to be among Monday's most actively traded issues: AT&T (NYSE: T), Cisco Systems (Nasdaq: CSCO), Dell (Nasdaq: DELL), Digital Island (Nasdaq; ISLD), Microsoft (Nasdaq: MSFT) and Stamps.com (Nasdaq: STMP).

Wall Street closed out another frenetic week on a positive note Friday as blue-chip stocks pushed the Dow Jones industrial average up 173 points to 10,470.25 while the Nasdaq rose 15 points to end at 2,816.83.

At the Bell

The Dow Jones industrial average may open about 46 points lower. The Standard & Poor's 500 index for June futures contracts was down 5.7 points to 1301 at 7:51 a.m. EST in 24-hour electronic trading.

The Inter@ctive Week @Net Index was down 6 to 334.57.

Asia

Trading in Asia was on an upswing. The Nikkei 225 rose 1.20 percent to 17,649, Singapore's Strait Times index added 0.25 percent to 2,022 and Hong Kong's Hang Seng gained 1.33 percent to 13,034.

Europe

European markets were mixed. London's FTSE 100 rose 0.39 percent to 6,083. The CAC 40 in Paris gained 0.17 percent to 4,686 and the Xetra DAX in Frankfurt was up 0.31 percent to 5,341 at 7:10 a.m. EST.

Reuters contributed to this report.