A positive report from AOL Time Warner and mixed news from Intel should be enough to initially boost tech stocks Wednesday. Asian and European markets were up across the board, and the Dow is set to open sharply higher.
AOL Time Warner (NYSE: AOL) reported first-quarter earnings that beat Wall Street estimates, boosted by strong revenues and considerable growth in its online and cable businesses. Its earnings were 23 cents a share, up from 19 cents a year earlier and above the 20 cents consensus of analysts surveyed by First Call
Chipmaker Intel (Nasdaq: INTC) reported its worst quarter in years. Though results were slightly above lowered forecasts, they were much worse than previous years. But investors may have found some hope in the fact that executives said they expect a stronger second half of 2001.
A slew of companies will also report Wednesday: IBM (NYSE: IBM), Apple Computer (Nasdaq: AAPL) and Advanced Micro Devices (NYSE: AMD) all report after the bell.
In economic news, the private Conference Board reports the March Index of Leading Indicators, which is expected to have declined 0.3 percent after a 0.2 percent dip in February. The government's report on the trade balance in February is also due; economists see a marginal dip in the deficit to $33 billion.
Expect the following technology stocks to be among Wednesday's most actively traded issues: AOL Time Warner, Intel, ONI Systems, RealNetworks and Texas Instruments.
Technology stocks battled back into the black Tuesday as the Nasdaq composite moved up 14 points to finish at 1,923.16.The Dow Jones industrial average rallied back from a triple-digit deficit in early trading to finish up 58 points at 10,216.86.
At the Bell
The Dow Jones industrial average may open 156 points higher. The Standard & Poor's 500 index for June futures contracts was up 18.5 points to 1214 at 7:15 a.m. EDT in 24-hour electronic trading.
The Inter@ctive Week @Net Index gained 2 to 177.81.
Trading in Asia was up. The Nikkei 225 rose 574.70 to 1,3641.79, Singapore's Strait Times index rose 39.25 to 1,605.98 and Hong Kong's Hang Seng rose 366.35 to 1,2972.80.
European markets were also gaining. London's FTSE 100 rose 73.10 to 5,834.20, the CAC 40 in Paris rose 129.02 to 5,470.00 and the Xetra DAX in Frankfurt was up 140.33 to 6,075.91.
Reuters contributed to this report.