Nasdaq 2,000 remains elusive
The Nasdaq struggles to get to the 2,000 mark as technology stocks are mired by a heap of warnings from the likes of Compaq and Comverse Technology.
The Dow Jones industrial average added 10.17 to reach 10,185.81 as the market opened, and the Nasdaq fell 7.05 to 1,955.74.
Here are the key stocks to watch for Tuesday:
• Compaq Computer has lowered forecasts and cut jobs, blaming the industrywide slowdown, price competition and a weakening European market.
The computer maker said it will cut 1,500 more jobs, bringing this year's total to 8,500. Revenue for the second quarter will be about $8.4 billion, down 9 percent from the first quarter and $400 million shy of Wall Street estimates, the company said. Earnings will be about 4 cents a share, in line with First Call consensus estimates.
• Comverse Technology warned that earnings for the rest of the year will miss expectations as customers delay due to the weak economy. The telecommunications software maker now sees 2001 earnings per share at $1.14, less than First Call's estimate of $1.79 a share.
• DoubleClick reported a second-quarter loss that just made estimates, but lowered its outlook for the third quarter. The online advertising company said its second-quarter loss, excluding noncash and nonrecurring items, was $9.5 million, or 7 cents a share, just beating the lowered First Call estimate of 8 cents a share.
DoubleClick also said it now expects a loss of 6 cents a share in the third quarter and 3 cents as share in its fourth quarter. First Call had been expecting a loss of 4 cents a share in the third quarter and 5 cents a share in the fourth quarter. On a conference call, executives said the company would aim for a loss of 9 cents a share in the second half, in line with its previous guidance.
• Rational Software beat its lowered earnings estimate. The software-development tools maker said it had a profit of 8 cents a share in the first quarter, just topping First Call's reduced 7 cent estimate, which had been 8 cents before the company said last week said that its sales had fallen short of projections. Pro forma net income fell 40 percent from a year ago on weaker spending in Europe and Asia.
Reuters contributed to this report.