Profit worries hamper techs
Another rash of profit warnings is likely to rattle technology stocks. Meanwhile, Federal Reserve Chairman Alan Greenspan is also scheduled to make two appearances.
The Dow Jones industrial average and Nasdaq are set to open lower.
Oracle's fourth-quarter report Monday night sparked a rally in enterprise software stocks Tuesday, but it wasn't enough to keep the Nasdaq above the 2,000 mark. And with Wednesday's string of warnings, the technology-heavy index could fall even further below that psychologically critical mark.
Greenspan appears twice Wednesday morning in Washington, and though he isn't planning to make statements about the economy or interest rates, investors will be anxious for any hints that the Fed plans to cut interest rates.
In economic news, the Index of Leading Indicators is due out after the markets open, and is expected to show a rise of about 0.2 percent in May, an improvement over April's 0.1 percent increase.
Stocks to watch
• Tellabs was one of many companies to revise its earnings forecast. The telecommunications equipment maker cut its second-quarter revenue projection to $500 million, from an earlier estimate of $780 million to $820 million, citing weaker demand from customers.
• Teradyne, a maker of semiconductor-testing equipment, also issued a warning. The company said it expects to have a second-quarter loss of 5 cents to 10 cents a share--the result of slowing demand for its products. It was expected to lose 1 cent according to First Call.
• Asyst Technologies, another player in the semiconductor equipment sector, said it expects revenue for the first quarter ending June 30 of $65 million to $70 million, below an earlier forecast of $75 million. The builder of machines used to help move semiconductors cited soft demand.
• Jabil Circuit slipped its profit warning in along with its third-quarter results. The contract electronics manufacturer said it earned 9 cents a share in third quarter ended May 31, compared with 21 cents a year ago. It also announced it expects a fourth-quarter profit of 13 cents to 15 cents, below the 19-cent average expected by First Call.
• Excite@Home said it would sell its stake in its fiber-optic network to AT&T for $85 million. The company also ended exclusive pacts with Cox Communications and Comcast.
At the bell
The Dow Jones industrial average may open 60 points lower. The Standard & Poor's 500 index for June futures contracts was off 6.9 points to 1,217 at 7:15 a.m. EDT in 24-hour electronic trading.
Reuters contributed to this report.