MARKET PREVIEW: Profit warnings continue

2 min read

A slightly smaller batch of profit warnings will greet technology investors. Asian and European markets were mixed, and the Dow is set to open slightly higher.


Broadbase Software (Nasdaq: BBSW) will come late to the e-business software slump that hit its sector Tuesday. The company warned that its first-quarter results will fall short of analysts' estimates, turning in a loss of 23 cents a share, as opposed to the 11 cents a share analysts were predicting.

Agile Software (Nasdaq: AGIL) also warned on the heels of Monday's news that it and Ariba (Nasdaq: ARBA) would cancel their plans to merge. The company said it will post a loss in its fourth quarter on weaker-than-expected sales. First Call consensus expected the business software developer to earn 2 cents a share

Expect the following technology stocks to be among Wednesday's most actively traded issues: Agile, Broadbase Software, Commerce One and Rational.

Investors dumped stocks indiscriminately Tuesday following another wave of profit warnings as the Dow Jones industrial average plunged 293 points, or 3 percent, to finish at 9,485.31. The Nasdaq composite tumbled 110 points, or 6 percent, to end at 1,672.61.

At the Bell

The Dow Jones industrial average may open 14 points higher. The Standard & Poor's 500 index for June futures contracts was up 1.6 points to 1110 at 7:15 a.m. EST in 24-hour electronic trading.

The Inter@ctive Week @Net Index fell 19 to 139.09.


Trading in Asia was mixed. The Nikkei 225 rose 118.31 to 1,3242.78, Singapore's Strait Times index fell 22.12 to 1,621.99, and Hong Kong's Hang Seng shed 520.51 to 1,2063.71.


European markets also moved in different directions. London's FTSE 100 fell 29.80 to 5,433.30, the CAC 40 in Paris rose 0.18 to 5,004.18 and the Xetra DAX in Frankfurt was down 35.66 to 5,517.80.

Reuters contributed to this report.