MARKET PREVIEW: Can techs sustain rally?

2 min read

Last week's rebound may help the market gain momentum Monday. Overseas markets gained across the board and the futures numbers looked bright. Asian and European markets were up, and the Dow is set to open sharply higher.


After absorbing huge losses last week, and then rebounding in Friday trading, the Dow Jones industrial average and Nasdaq composite look likely to continue their upward swing.

In economic news, investors will be eyeing a report Monday on February new home sales for signs that the booming housing market is beginning to slow down along with the rest of the economy.

Manugistics (Nasdaq: MANU) should also catch some attention Monday ahead of its fourth-quarter earnings report. Earlier this month, the company confirmed it would meet analysts' targets despite the sluggish economy and profit warnings from leading software firms. Analysts are expecting a profit of 5 cents a share on sales of $81.3 million compared to a loss of 2 cents a share on sales of $43.7 million in the year-ago quarter.

Expect the following technology stocks to be among Monday's most actively traded issues: Manugistics, Micro Component and Via Net.Works.

Technology stocks made respectable gains Friday as the Nasdaq Composite Index moved up 31 points to close at 1,928.70. The Dow Jones Industrial Average built on Thursday's late momentum, gaining 115 points to finish at 9,504.78.

At the Bell

The Dow Jones industrial average may open 86 points lower. The Standard & Poor's 500 index for June futures contracts was up 10.5 points to 1164 at 7:25 a.m. EST in 24-hour electronic trading.

The Inter@ctive Week @Net Index rose 1 to 183.66.


Trading in Asia was up. The Nikkei 225 rose 647.77 to 1,3862.31. Singapore's Strait Times index was up 2.88 to 1,718.19 and Hong Kong's Hang Seng gained 367.13 to 1,2950.49.


European markets were also gaining. London's FTSE 100 rose 127.90 to 5,530.20, the CAC 40 in Paris gained 134.65 to 5,085.78 and the Xetra DAX in Frankfurt was up 169.45 to 5,714.12.

Reuters contributed to this report.