Techs tame ahead of Fed meeting
Trading could be quiet as investors hold out for results from the Federal Reserve meeting later this week.
Most economists predict the Federal Open Market Committee will decide to cut interest rates in its meeting on Tuesday and Wednesday this week, but the size of the cut is hotly debated. This would be the sixth time the nation's central bank has cut rates this year.
On the economic front, a report from the National Association of Realtors on existing home sales for May is due. Economists expect the annual rate of sales held steady at 5.2 million homes.
Stocks to Watch
? Sierra Wireless could be
active after its profit warning. The maker of communications equipment said it
now
expects a second-quarter loss, excluding one-time charges, of 5 cents
to 9
cents a share, compared with the 3 cent profit it had previously
forecast.
? Compaq is expected to announce a restructuring Monday. According to a report in The Wall Street Journal, the computer maker is planning a massive reorganization that will see it emphasize sales of industry-specific packages of computers, software and services over computer hardware.
Citing a memo sent to employees by Chief Executive Michael Capellas, the newspaper said Compaq has outlined a new strategy that will shift its focus from Internet equipment markets to software and services. The plan will also include new cost cutting efforts on top of those announced earlier this year.
? Palm could also get some attention. Investors will be looking forward to earnings news from parent 3Com and its former subsidiary, Palm, on Tuesday. First Call's estimates predicts that handheld device maker Palm will post a loss of 19 cents a share and that network equipment maker 3Com will lose 49 cents a share.
At the Bell
The Dow Jones industrial average may open 11 points higher. The Standard & Poor's 500 index for June futures contracts was up 1.3 points to 1236 at 7:10 a.m. EDT in 24-hour electronic trading.
Reuters contributed to this report.