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Tech Industry

MARKET PREVIEW: Techs to continue rally

The optimism spurred by Friday's job report will make its full force known Tuesday, and techs are likely to be at the forefront of the rally. Asia and Europe were mixed, and the Dow is set to open slightly higher.


The data on August employment had investors hopes up again Friday. The report showed the economy created fewer jobs in August and wages grew at a slower-than-expected pace, tipping the gauge on inflation to indicate perhaps the Federal Reserve won't raise interest rates, a move that reduces corporate profits by increasing companies' borrowing costs.

Some merger news may be reshaping the media and TV domains; CBS Corp. and Viacom Inc., owner of MTV and the Paramount film studio, is be the largest media merger ever.

Vodafone AirTouch PLC confirmed it is discussing a possible alliance in the with Bell Atlantic Corp., a move that would bolster the British mobile-phone operator's plan to become a global competitor. The deal would join Vodafone's operations in the Western U.S. and Bell Atlantic's wireless business on the East Coast and create a nationwide U.S. wireless-phone network.

Expect the following technology stocks to be among Tuesday's most actively traded issues: Apple, Computer Inc. (Nasdaq: AAPL) Compaq Computer Corp. (NYSE: CPQ), CBS Corp. (NYSE: CBS) and Vodafone AirTouch Plc. (NYSE: VOD).

Better-than-expected employment and payroll figures from the Labor Department sent stocks skyward Friday as the Nasdaq shot up 108 points to 2,842.58, a record single-day gain. The Dow rocketed up 235 points to end at 11,078.45.

At the Bell

The Dow Jones industrial average may open about 20 points higher. The Standard & Poor's 500 index for June futures contracts was up 2.5 points to 1365 at 7:35 a.m. EST in 24-hour electronic trading.


Trading in Asia was mixed. The Nikkei 225 fell 0.28 percent to 17,708, Singapore's Strait Times index gained 0.27 percent to 2,105 and Hong Kong's Hang Seng shed 0.08 percent to 13,396.


European markets were moving marginally. London's FTSE 100 was holding even at 6,376. The CAC 40 in Paris gained 1.00 percent to 4,715 and the Xetra DAX in Frankfurt was up 0.45 percent to 5,425 at 7:00 a.m. EST.

Reuters contributed to this report.