MARKET PREVIEW: Tech rally tries for encore

2 min read

Investors will decide Monday whether last week's positive economic data merits a sustained tech rally. Asian markets were up, while European markets moved down, and the Dow is set to open slightly lower.


Friday's employment report was the latest in a string of benign economic reports last week, fueling a rally which sent techs soaring. Investors will decide whether to keep buying Monday on hopes the Federal Reserve will relax its tightening grip on interest rates.

A couple of wireless equipment makers could see some attention; after recovering late last week from a sell-off on reports its CDMA technology might not be used in China, Qualcomm (Nasdaq: QCOM) is likely to get bruised again. The China Daily Business Weekly said Sunday that China Unicom has ditched plans to use current wireless telephone standards, and leap ahead to the next generation.

Positive attention could be in store for Motorola (NYSE: MOT); Sega Enterprises said it has a deal with the company to develop new cellular phones with Internet access which can download games and video.

Advanced Micro Devices (NYSE: AMD) will also be in the spotlight Monday; the company is set to unveil its new super-fast processor, called Thunderbird, as the latest move in its ongoing game of leapfrog with competitor Intel (Nasdaq: INTC).

On the Microsoft front, Government attorneys are expected to file their latest comments Monday, though a ruling is now expected Wednesday.

Expect the following technology stocks to be among Monday's most actively traded issues: CDNow, Intraware, Lycos and Qualcomm.

News that more people were out of work in May than April led to a ferocious rally on Wall Street Friday, sending the Nasdaq composite soaring up 231 points to 3,813.33. The Dow Jones industrial average shot up 143 points to close at 10,794.76.

At the Bell

The Dow Jones industrial average may open about 18 points lower. The Standard & Poor's 500 index for June futures contracts was down 2.5 to 1473 at 7:35 a.m. EST in 24-hour electronic trading.

The Inter@ctive Week @Net Index was up 42 to 490.27.


Trading in Asia was on an upswing. The Nikkei 225 rose 2.39 to 17,201, Singapore's Strait Times index gained 3.77 percent to 1,982 and Hong Kong's Hang Seng was up 1.78 percent to 15,861.


European markets were headed down. London's FTSE 100 fell 0.69 percent to 6,580. The CAC 40 in Paris slipped 0.92 percent to 6,212 and the DAX in Frankfurt was down 1.04 percent to 7,361 at 7:05 a.m. EST.

Reuters contributed to this report.