Techs arriving on the scene Monday are faced with the daunting task of cleaning up from last week's massacre before moving ahead. Asia and Europe felt steep declines, and the Dow is set to open slightly higher.
After ending the week with its biggest weekly point loss on record, and unnerving overseas markets into bad starts Monday, the Dow Jones industrial average is in a rough state to start the week. Investors and analysts will be eyeing economic data slated for release Tuesday - a report on the pace of inflation last month - to determine the market's recovery.
Xerox was rising in pre-market trading Monday, just because it lived up to its own pessimistic predictions. The stock closed down 6 percent Friday, ahead of its third quarter earnings released Monday morning. Xerox (NYSE: XRX) reported results that were in line with estimates revised downwards after the company warned it would fare worse than expected due to an unfavorable product mix and increased competitive pressures. Nextel (Nasdaq: NXTL) also reports third quarter results Monday.
Expect the following technology stocks to be among Monday's most actively traded issues: Apple Computer Inc. (Nasdaq: AAPL), Nextel Communications Inc. (Nasdaq: NXTL) and SBC Communications Corp. (NYSE: SBC).
A stronger-than-expected Producer Price Index report coupled with ominous comments from Fed Chairman Alan Greenspan conspired to hammer the market Friday. The Dow fell 267 points to 10,019.71 after briefly dipping below the 10,000-point threshold. The Nasdaq composite fell 75 points to 2,731.79 as investors licked their wounds and dumped pricey Internet stocks in a flash.
At the Bell
The Dow Jones industrial average may open about 29 points higher. The Standard & Poor's 500 index for June futures contracts was up 3.6 points to 1260 at 7:33 a.m. EST in 24-hour electronic trading.
The Inter@ctive Week @Net Index plunged 11 to 324.15.
Asian markets were unnerved by the downturn in American stocks Friday. The Nikkei 225 lost 1.85 percent to 17,275, Singapore's Strait Times index shed 3.29 percent to 1,993 and Hong Kong's Hang Seng was down 1.50 percent to 12,299.
European markets also followed Wall Street's example. London's FTSE 100 tumbled 0.93 percent to 5,852. The CAC 40 in Paris slipped 0.53 percent to 4,500 and the Xetra DAX in Frankfurt dropped 0.58 percent to 5,154 at 7:05 a.m. EST.
Reuters contributed to this report.