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Markets open higher, shrug off profit worries

The Dow and Nasdaq open slightly higher as investors mull over the latest batch of tech profit warnings.

The Dow and Nasdaq shrugged off the latest batch of profit warnings from Corning and Alcatel and opened slightly higher Tuesday.

The Dow Jones industrial average gained 14.02 to 10,313.42 as the market opened, and the Nasdaq added 14.90 to 2,041.61.

Here are the key stocks to watch for Tuesday:
• Corning (see broker report) said late Monday that it would cut 1,000 jobs, close three plants and take second-quarter charges of around $5.1 billion because of the slowdown in orders. The fiber-optic cable maker said that slowdown could last another 12 to 18 months. On a positive note, second-quarter results, excluding the charges related to the restructuring, are still predicted to beat estimates, though results in the second half of the year will be below expectations.

• Alcatel, another player in the communications sector, also said it will cut jobs. The France-based maker of communications equipment said it plans to cut 2,500 positions in the United States, or 16 percent of U.S. staff, and close a manufacturing facility in Raleigh, N.C.

• Newport (broker report) also cut some jobs and warned that its annual results will miss expectations, though second-quarter results will match estimates. The maker of equipment used to produce semiconductors and fiber-optic parts said it expects full-year 2001 earnings of $1.10 to $1.15 per share, less than the $1.21 average estimate of analysts surveyed by First Call.

For the second quarter, Newport said it expects to meet forecasts of $95 million to $100 million in revenue and 32 cents per share in earnings. The company also cut 182 jobs.

• Silicon Graphics said it would review its business plans for the coming fiscal year as bookings slowed in its fiscal fourth quarter. The maker of computer workstations used to create movie special effects also said Chief Financial Officer Hal Covert has resigned.

• Xerox made another shift in its business to compensate for tough times. The troubled copier maker said it eliminated its common-stock dividend to save $140 million a year. It's the first time in 53 years, since the company's inception in 1948, that it has eliminated the dividend.

Xerox said it will make an additional contribution to the company's Employee Stock Ownership Program instead, and will consider reinstatement of the dividends when the company returns to profitability.

Reuters contributed to this report.