(REUTERS) U.S. stocks seen opening higher on bargain-hunting
U.S. stocks seen opening higher on bargain-hunting
By Ian Simpson
NEW YORK, April 13 (Reuters) - U.S. stocks were seen
opening higher on Wednesday amid upbeat earnings news and
bargain-hunting among technology stocks in Nasdaq's bear
market.
Markets will also look to release of March Producer Price
Index inflation data at 8:30 a.m. EDT (1230 GMT). The numbers
could provide a clue to the direction of interest rates.
Economists polled by Reuters expect a rise of 0.5 percent,
down from 1 percent the previous month. Excluding the volatile
food and energy sectors, the gauge of wholesale inflation is
expected to go up 0.1 percent, compared with a rise of 0.3
percent in February.
However, the focus will be on technology issues. The
technology-laden Nasdaq composite index <.IXIC> fell 286.27
points, or 7.06 percent, to 3,769.63 on Wednesday and is down
25.3 percent from its record high on March 10.
A 20 percent fall from a peak is considered a bear market.
"I see a rebound in the Nasdaq, for no other reason than
we're oversold at this time," said Art Hogan, chief market
analyst at Jefferies & Co. in Boston.
"I think we'll take them higher on bargain-hunting."
Bill Meehan, chief market analyst at Cantor Fitzgerald in
Darien, Conn., said any rally among pummeled Internet, computer
and telecommunications stocks could be stifled by wary
investors using the rise to sell.
"The $64 billion question is, can they hold them here or
will any strength be met by sellers in the tech sector?" he
said.
The drop in the Nasdaq pulled blue-chip investors into the
selling spree. The Dow Jones industrial average <.DJI> closed
off 161.95 points, or 1.43 percent, at 11,125.13.
Technology issues could get a lift from computer chip maker
Advanced Micro Devices Inc. <AMD.N>. The company reported
first-quarter earnings that blew past Wall Street's recently
raised estimates.
Goodyear Tire & Rubber Co. <GT.N>, the world's largest tire
company, also said its first-quarter profits more than doubled,
topping Wall Street estimates.
Tokyo's Nikkei average <.N225> closed down 306.79 points,
or 1.47 percent, at 20,526.42. London's FTSE-100 index <.FTSE>
was up two points, or 0.03 percent, at 6,352.8.
The dollar strengthened slightly against the yen to a bid
of 105.84 yen overnight. The euro slipped to $0.9569 bid.
The U.S. Treasury 30-year bond was off 10/32 and was
yielding 5.84 percent. The Standard & Poor's 500 futures index
for June was up 9.9 points at 1486.6.
The Wall Street Journal's Heard on the Street column said
Nasdaq's bear market may linger.
The New York Times' Market Place column said Nasdaq's steep
drop suggested a technology bear market.
((--Ian Simpson, Wall Street desk, (212) 859-1879))
REUTERS
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