MARKET PREVIEW: Can techs sustain rally?

2 min read

Technology stocks will try to hold on to the week's rally Wednesday despite more profit warnings. Asian markets were mixed, Europe was down, and the Dow is set to open slightly lower.


JDS Uniphase (Nasdaq: JDSU), a fiber-optic components maker, became the latest to lower expectations. It warned that its sales and earnings will fall short of previous guidance in the next two quarters. The Canadian company also said it can't give much insight on its next fiscal year.

Broadcom (Nasdaq: BRCM) also said it expects revenue and earnings per share to miss estimates for the quarter ending in March. The communications chip company said that it started seeing a higher level of delayed customers orders in February.

Expect the following technology stocks to be among Wednesday's most actively traded issues: Broadcom, CTS, JDS Uniphase, NetSilicon and 3Dlabs.

After weeks of losses, technology stocks gained ground Tuesday as bargain hunters jumped on bellwethers trading at or near 52-week lows. The Nasdaq composite gained 62 points to finish at 2,204.44. The Dow Jones industrial average picked up 29 points to close at 10,591.22.

At the Bell

The Dow Jones industrial average may open 12 points lower. The Standard & Poor's 500 index for June futures contracts was down 1.4 points to 1255 at 7:25 a.m. EST in 24-hour electronic trading.

The Inter@ctive Week @Net Index rose 9 points to 219.55.


Trading in Asia was mixed. The Nikkei 225 rose 36.15 to 12,723.89, Singapore's Strait Times index gained 10.68 to 1,910.74 and Hong Kong's Hang Seng dropped 143.69 to 14,177.36.


European markets were down. London's FTSE 100 fell 29.70 to 5,982.30, the CAC 40 in Paris lost 41.14 to 5,416.14 and the Xetra DAX in Frankfurt was off 25.20 to 6,258.86 at 7:20 a.m. EST.

Reuters contributed to this report.