MARKET PREVIEW: Bad news for Microsoft, dot-coms

2 min read

Microsoft will steal the spotlight again Monday, while a Barron's article may cast a pall over techs. Asian and European markets were mixed, and the Dow is set to open slightly higher.


Microsoft (Nasdaq: MSFT) will be back in court again Monday; this time the software giant is arguing that its antitrust appeal should be heard by the U.S. Court of Appeals. Federal attorneys are trying to bring the case directly to the Supreme Court. Another new twist in the antitrust saga could dent shares; the company warned in a SEC filing that there could be a material impact on its stock if it does not get sufficient legal relief or win an appeal.

Another article from Barron's article on companies that may run out of cash in the coming months may be a downer for techs Monday; companies listed include Netzee Inc. (Nasdaq: NETZ), Bluefly Inc. (Nasdaq: BFLY), RoweCom Inc. (Nasdaq: ROWE) and CDnow Inc. (Nasdaq: CDNW), drkoop.com Inc. (Nasdaq: KOOP), Claimsnet.com Inc. (Nasdaq: CLAI), Pilot Network Services Inc. (Nasdaq: PILT), US Search.com Inc. (Nasdaq: SRCH), Streamline.com Inc. (Nasdaq: SLNE), Netivation.com Inc. (Nasdaq: NTVN), Mortgage.com Inc.(Nasdaq: MDCM) and PlanetRx.com Inc. (Nasdaq: PLRX).

Expect the following technology stocks to be among Monday's most actively traded issues: Autobytel, Bluefly, Intel and Microsoft.

Blue-chip stocks, particularly financial issues, were dumped in Friday's triple-witching trading as the Dow Jones industrial average closed off 265 points to 10,449.30. Technology stocks held up well, however, as the Nasdaq composite rose 15 points to 3,860.52.

At the Bell

The Dow Jones industrial average may open about 7 points higher. The Standard & Poor's 500 index for June futures contracts was up 1.0 to 1489 at 7:31 a.m. EST in 24-hour electronic trading.

The Inter@ctive Week @Net Index was up 3 to 481.50.


Trading in Asia was mixed. The Nikkei 225 rose 1.67 to 16,591, Singapore's Strait Times index fell 0.80 percent to 1,996 and Hong Kong's Hang Seng was down 1.02 percent to 16,267.


European markets were also moving in different directions. London's FTSE 100 fell 0.53 percent to 6,491. The CAC 40 in Paris rose 0.22 percent to 6,470 and the DAX in Frankfurt was up 0.39 percent to 7,159 at 6:57 a.m. EST.

Reuters contributed to this report.