Techs can't just keep hanging on forever; earnings from Yahoo and Advanced Micro Devices Wednesday will set the pace even though the Federal Reserve still has its finger on the interest rates trigger. Asia was up, Europe was mixed, and the Dow is set to open slightly higher.
The market has been left dangling in wait-amd-see mode after the Fed didn't hike interest rates, but said it would adopt a bias toward tightening. The Fed warned that further increases may be coming unless it sees solid evidence that the economy is slowing its pace.
Optimistic Internet portal Yahoo (Nasdaq: YHOO) and troubled semiconductor maker Advanced Micro Devices (NYSE: AMD) will report much-awaited earnings. Techs will also continue to digest yesterday's $115 billion agreement between MCI WorldCom and Sprint, the biggest merger in history - especially after Federal Communications Commission Chairman William Kennard criticized the purchase.
Among IPOs, Breakaway Solutions (Nasdaq: BWAY), priced at $14, DSL.net (Nasdaq: DSLN) priced at $7.50, and Silicon Image (Nasdaq: SIMG), priced at $12 are all on deck.
Stocks to watch Wednesday include Yahoo (Nasdaq: YHOO), AMD (NYSE: AMD), Sterling Commerce (NYSE: SE) and Oracle (Nasdaq: ORCL).
A biased Federal Open Market Committee was all the excuse the market needed to sell off Tuesday afternoon. Thanks to a recovery in the final minutes, the tech-heavy Nasdaq Composite Index ended the session up 3.70 to 2,799.67.
At the Bell
The Dow Jones industrial average may open about 26 points higher. The Standard & Poor's 500 index for June futures contracts was up 3.4 points to 1319 at 7:37 a.m. EST in 24-hour electronic trading.
The Inter@ctive Week @Net Index was up 7 to 334.75.
Trading in Asia was on an upswing. The Nikkei 225 rose 0.63 percent to 17,896, Singapore's Strait Times index gained 1.74 percent to 2,110 and Hong Kong's Hang Seng climbed 0.15 percent to 13,018 as markets were closed for China's National Day.
European markets were mixed. London's FTSE 100 lost 0.33 percent to 6,065. The CAC 40 in Paris rose 0.43 percent to 4,681 and the Xetra DAX in Frankfurt slipped 0.14 percent to 5,295 at 7:04 a.m. EST.
Reuters contributed to this report.