MARKET PREVIEW: Wall Street eyes Yahoo

2 min read

The Nasdaq will again test its ability to take bad news on Thursday--this time from Yahoo. Markets in Europe moved up, trading in Asia was mixed, and early indicators have the Dow set to open higher.


Yahoo will be front and center in Thursday's session. After the bell Wednesday, the Web portal warned for its first quarter, citing a weakening economy and cutbacks in marketing spending among its customers. The company now sees sales between $170 million to $180 million, with pro forma net income projected to break even. First Call analysts' consensus figures expected a profit of 5 cents a share on sales of $232 million for the quarter.

The company also said it has begun a search for a new CEO to succeed Tim Koogle. Koogle, who started his stint as CEO before the company went public, will retain his chairman title.

Shares of digital subscriber line (DSL) company Copper Mountain (Nasdaq: CMTN) will be on the move after the company axed 25 percent of its staff Wednesday and announced the resignations of both its chairman and chief financial officer.

Fiber optic company Metromedia Fiber (Nasdaq: MFNX) beat the Street's earnings estimate for its fourth quarter, reporting a loss of 24 cents on revenue of $61 million.

On the economic front, the weekly initial jobless claims report is due out at 8:30 a.m., with analysts surveyed by Briefing.com expecting a figure of 350,000.

Expect the following technology stocks to be among Thursday's most "="" http:="" www.zdii.com="" industry_list.asp?mode="news&doc_id=ZE507803&pic=Y"" rel="">actively traded issues: Yahoo (Nasdaq: YHOO), Tellabs (Nasdaq: TLAB) and Copper Mountain (Nasdaq: CMTN).

The Nasdaq continued its positive week, adding 19.49 to 2,223.92 at the end of Wednesday's session, while the Dow Jones industrial average rose 138.38 to 10,729.60.

At the Bell

The Dow Jones industrial average is expected to open up 25 points. The Standard & Poor's 500 futures index rose 3 to 1268.20 at 7:33 a.m. EST in 24-hour electronic trading.

The Inter@ctive Week @Net Index slipped 1 to 218.24.


The major Asian markets were mixed. On the positive side, Hong Kong's Hang Seng added 31.59 to 14,208.95. The Nikkei 225 dropped 73.33 to 12,650.56 and Singapore's Straights Times closed down 5.57 to 1,905.17.


European markets gained ground. London's FTSE 100 was up 43.50 to 6,045.30, the CAC 40 in Paris added 13.69 to 5,497.37, and the DAX in Frankfurt gained 29.66 to 6,335.30 at 7:13 a.m. EST.

ZDII staff and Reuters contributed to this roundup.