The battered tech sector is set to absorb more bad news as Network Associates said that it will miss fourth quarter numbers and will lose top execs. European markets gained ground, those in Asia were mixed and the Dow is set to open higher.
Computer security service provider Network Associates (Nasdaq: NETA) warned for its fourth quarter, after the bell Tuesday. The maker of the McAfee antivirus software said it now expects a loss of between $130 million to $140 million, due to cut backs from key distributors. First Call analysts had called for a profit of 31 cents a share.
The company also said that a number of key executives, including the CEO, will be resigning their posts.
On the economic front, the leading indicators report is scheduled for release this morning. A survey of analysts from Briefing.com expects a drop of 0.2 percent. The latest housing figures are also set to be released.
Expect the following technology stocks to be among Wednesday’s most actively traded issues: eXcelon (Nasdaq: EXLN), Handspring (Nasdaq: HAND) and Network Associates.
The Nasdaq dropped 23.5 to 2,493.52 on Tuesday while the Dow Jones industrial average rose 56.88 to 10,692.44.
At the Bell
The Dow Jones industrial average is expected to open up 16 points. The Standard & Poor's 500 futures index rose 2 to 1334.90, above fair value, at 7:29 a.m. EST in 24-hour electronic trading.
The Inter@ctive Week @Net Index shed 5 to 287.86.
The major Asian markets were mixed. The Nikkei 225 and Singapore's Strait Times both lost ground, dropping 26.36 to 13,981.49 and 10.26 to 1,892.60, respectively. Hong Kong’s Hang Seng inched up 10.15 to 14,748.36.
European markets were in positive territory. London's FTSE 100 rose 81.10 to 6,178.60, the CAC 40 in Paris was up 73.21 to 5,856.94 and the DAX in Frankfurt gained 64.78 to 6,316.18 at 7:12 a.m. EST.
Reuters contributed to this report.