With the Nasdaq slumping to a 22-month low and the quarterly warnings parade marching on, investors continue to search for a bottom. The major markets in Asia and Europe fell and the Dow is set to open slightly lower.
After yesterday’s close, the quarterly warnings continued, with Efficient Networks (Nasdaq: EFNT), JDA Software (Nasdaq: JDAS) and Turnstone Systems (Nasdaq: TSTN) all saying they would miss estimates. Turnstone was slapped with a downgrade from Robertson Stephens on Wednesday morning, along with a host of other companies.
Internet security company Symantec Corp. (Nasdaq: SYMC) said Wednesday that it will outsource its e-commerce activities to commerce service provider (CSP) Digital River (Nasdaq: DRIV).
Lawyers representing a group of current and former employees of Microsoft (Nasdaq: MSFT) said late yesterday they will file a $5 billion class action lawsuit alleging employment discrimination against the company and its chairman Bill Gates.
Expect the following technology stocks to be among Wednesday’s most actively traded issues: Efficient Networks (Nasdaq: EFNT), JDA Software (Nasdaq: JDAS), Turnstone Systems (Nasdaq: TSTN) and Visual Data (Nasdaq: VDAT).
The Nasdaq continued to fall, dropping 178.66 to 2,291.86 on Tuesday. The Dow Jones industrial average shed 140.70 to 10,646.15.
At the Bell
The Dow Jones industrial average is expected to open down 5 points. The Standard & Poor's 500 futures index slipped 0.60 to 1299.20 at 7:26 a.m. EST.
The Inter@ctive Week @Net Index shed 34 to 245.93.
The major Asian markets lost ground. The Nikkei 225 and Hong Kong’s Hang Seng continued to slide, shedding 161.27 to 13,785.69 and 280.36 to 14,589.58, respectively. Singapore's Strait Times lost 34.76 to 1,861.52.
European markets fell back as well. London's FTSE 100 slipped 50.70 to 6,124.00, the CAC 40 in Paris lost 82.12 to 5,716.78 and the DAX in Frankfurt dropped 49.33 to 6,240.49 at 7:15 a.m. EST.
Reuters contributed to this report.