Internet stocks could be in for another rough day Tuesday as momentum seems to be working against them. Asia and Europe were mixed, but the Dow is set to open higher.
What will those wacky Internet issues do today? You may not like the answer.
Momentum is clearly headed in the wrong direction for a host of investors who bought in at the peak of the Internet issue run.
Former Wall Street darling eBay Inc. (Nasdaq: EBAY) was hammered, falling 31 3/8 to 134 after numerous outages. In aftermarket trading, eBay continued to fall.
Meanwhile, DoubleClick Inc. (DCLK) fell 18 1/16 to 70 3/4 after the company said it would acquire Abucus Direct for $1 billion in stock. What's really weird about DoubleClick's demise was that the Abucus merger makes sense from all angles in the long run. Unfortunately, the long run is about an hour these days.
And the list goes on. It doesn't look like Internet stocks will do so hot today either.
The more boring tech issues, however, seem to be doing just fine. The leading stock to watch for the day is Solectron Corp. (Nasdaq: SLR), which met analysts' estimates in its third quarter Monday. Solectron, a contract equipment manufacturer, may be a real yawner, but it rakes in the cash, earning $75.7 million, or 29 cents a share, on sales of $2.15 billion.
Also keep an eye on Oracle Corp. (Nasdaq: ORCL), which reports its fourth quarter results after the bell.
There's no major economic data due, but we're a day closer to the May consumer price report, which is the best known barometer on inflation. Look for lackluster trading until the CPI report emerges.
Internet stocks were bludgeoned Monday as the Nasdaq composite tumbled 50 points to close at 2,398.30. The Dow Jones industrial average, however, picked up 73 points to 10,563.33. The Inter@ctive Week @Net Index continued to slide.
At the Bell
The Dow Jones industrial average is set to open about 20 points higher. The Standard & Poor's 500 index for June futures contracts was up 2.6 points to 1312 at 7:47 a.m. EST in 24-hour electronic trading.
Trading was subdued in Asia. The Nikkei 225 jumped 0.54 percent at 17,282, Singapore's Strait Times index fell 0.56 percent to 2,046 and Hong Kong's Hang Seng fell 0.55 percent to 12935.
European markets were in cruise control ahead of the CPI data tomorrow.
London's FTSE 100 lost 0.14 percent to 6,421 the CAC 40 in Paris gained 0.37 percent to 4,388 and the Xetra DAX in Frankfurt dipped 0.37 percent to 5,310 at 7:36 a.m. EST.