MARKET PREVIEW: Overseas markets tumble

2 min read

The pain may continue for the Nasdaq Monday; investors gouged overseas markets overnight and futures appear to indicate the sell-off is far from over. Asian markets and European markets were down across the board, and the Dow is set to open slightly lower.


After shedding 25 percent over the course of the week, the Nasdaq gave a grande finale by plunging 355.49 points, or 9.7 percent, to 3,321.29 - its biggest one-day point drop ever, Friday.

AltaVista showed a lack of confidence in the market for the coming week; the Internet portal announced Friday it will postpone its initial public offering. CMGI (Nasdaq: CMGI) and Compaq (NYSE: CPQ) are AltaVista's investors.

Earnings are likely to be overshadowed by the market's woes again; major tech issues reporting after market close include Texas Instruments Inc. (NYSE: TXN), Go2Net (Nasdaq: GNET), DoubleClick Inc. (Nasdaq: DCLK) and Prodigy Communications Corp. (Nasdaq: PRGY).

Expect the following technology stocks to be among Monday's most actively traded issues: Oracle, Peapod and PictureTel.

Just when investors thought it couldn't get any worse, the markets absorbed another pounding Friday as the Dow plunged 616 points to 10,307.32 while the Nasdaq tumbled 357 points to end at 3,320.04.

At the Bell

The Dow Jones industrial average may open about 26 points lower. The Standard & Poor's 500 index for June futures contracts was down 3.4 points to 1364 at 7:31 a.m. EST in 24-hour electronic trading.

The Inter@ctive Week @Net Index was down 43 to 435.52.


Asian markets tumbled. The Nikkei 225 lost 6.98 percent to 19,008, Singapore's Strait Times index plunged 8.69 percent to 1,999 and Hong Kong's Hang Seng dropped 8.55 percent to 14,762.


European markets also moved sharply down. London's FTSE 100 shed 3.78 percent to 5,944. The CAC 40 in Paris lost 2.87 percent to 5,891 and the Xetra DAX in Frankfurt was down 2.98 percent to 7,000 at 7:11 a.m. EST.

Reuters contributed to this report.