MARKET PREVIEW: Nasdaq tries for 5,000 again

Jan. 2, 2002 4:43 p.m. PT

2 min read

The Nasdaq will make its second run for 5,000 Tuesday, after failing to make the benchmark record Monday. Asian markets were mixed, Europe moved down, and the Dow is set to open slightly lower.

U.S.

While techs stretch for the 5,000 mark, the Dow will be struggling to keep above 10,000. Both indexes faltered Monday after Federal Reserve Chairman Alan Greenspan reiterated some hawkish comments on interest rates in a speech to Boston College.

Tuesday's economic news includes revised fourth-quarter productivity numbers, which are watched closely for signs of inflation. The data is expected to show a 6.4 percent gain for the quarter. Consumer credit numbers are also due, and are expected to show credit levels to be $7.0 billion in January, compared with $11.2 billion in December.

On the IPO front, Crayfish (Nasdaq: CRFH), a provider of e-mail services to small and mid-sized Japanese businesses priced its US offering of 4.35mm ADRs at $24.50. Net2000 Communications (Nasdaq: NTKK), a broadband telecom services provider, priced shares at $20. HomeGrocer.com (Nasdaq: HOMG) is also expected to price Tuesday.

Stocks likely to be among Tuesday's most actively traded issues include: Breakaway Solutions, Datatec Systems, Lam Research, Teligent and Terayon Communications.

Comments from Fed Chairman Alan Greenspan put the chill on blue-chip stocks Monday as the Dow Jones Industrial Average closed off 200 points to 10,167.40. The tech-laden Nasdaq Composite Index made some nice gains in early trading only to close off 10 points to 4,904.74.

At the Bell

The Dow Jones Industrial Average may open about 22 points higher. The Standard & Poor's 500 index for June futures contracts was up 3.0 points to 1398 at 7:31 a.m. EST in 24-hour electronic trading.

The Inter@ctive Week @Net Index was up 2 to 660.80.

Asia

Trading in Asia was mixed. The Nikkei 225 rose 0.75 percent to 19,944, Singapore's Strait Times index slipped 1.35 percent to 2,091 and Hong Kong's Hang Seng was up 0.60 percent to 17,865.

Europe

European markets were moving down. London's FTSE 100 lost 0.25 percent to 6,550. The CAC 40 in Paris lost 0.57 percent to 6,508 and the Xetra DAX in Frankfurt was down 0.21 percent to 7,959 at 6:43 a.m. EST.

-- Reuters contributed to this report.