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NEW YORK, May 2 (Reuters) - The Nasdaq market was seen extending its gains at the open on Tuesday as strong earnings from tech companies keep taking it higher while the blue chips were seen coming under pressure after the previous session's run-up.
The Standard & Poor's 500 index futures for June was off 1.90 points at 1,474.90 while the Nasdaq 100 index futures for June gained 4 points to 3,870.
``It looks like a mixed open,'' said Bryan Piskorowski of Prudential Securities. ``Bottom line, we had a nice session yesterday. The Dow gave some of it back at the close. Trading is going to be painted by data out later today.''
Wall Street could be reassured by a report that is expected to show that U.S. new home sales slowed in March, following a modest dip in February.
Economists polled by Reuters believe that March new home sales cooled to an annual rate of 904,000 units -- from February's 919,000 units -- equalling 1999's record sales level.
But analysts do not expect friendly numbers to influence the course of the U.S. Federal Reserve when it meets on May 16 to decide whether to raise interest rates on top of the five hikes, each of 25-basis points, since last June.
More important, they say, will be Friday's non-farm payrolls data. Expectations that the central bank might opt for a more aggressive half a percentage point increase to ward off inflation have grown since recent economic reports showing an uptick in inflationary pressures.
``I think we will get some follow through today,'' said Arthur Hogan, chief market analyst at Jefferies & Co. ``Most of the focus has been on earnings, which have been strong.''
On Monday, the Nasdaq composite index (^IXIC - news) climbed 97.42 points, or 2.52 percent, to 3,958.08. The Nasdaq's strength came from its software, biotechnology and computer networking names.
The Dow Jones industrial average (^DJI - news) rose 77.87 points, or 0.73 percent, to 10,811.78. So far this year, the Dow is off 5.96 percent while the Nasdaq composite is off 2.73 percent.
The Standard & Poor's 500 index (^SPX - news) rose 15.82 points, or 1.09 percent, to 1,468.25.
In early trading, the U.S. Treasury 10-year note eased 1/32 with the yield rising to 6.29 percent from Monday's close of 6.28 percent. The U.S. Treasury 30-year bond weakened 1/32 with the yield rising to 5.60 percent from Monday's close of 5.99 percent.
Among some of the other stocks to watch on Tuesday, rival hotel chains Marriott International Inc. (NYSE:MAR - news) and Hyatt Corp. on Tuesday said they plan to jointly form an independent company to provide the hotel industry with supplies online. Marriott closed at 33-1/16.
Expedia Inc. (NasdaqNM:EXPE - news) on Monday handily beat Wall Street estimates as revenues at the online travel service more than tripled amid a shift toward more lucrative sales of of hotel rooms and tour packages. Expedia closed at 19-1/2 ahead of the news.
CIGNA Corp. (NYSE:CI - news), one of the U.S.'s largest health insurers with 7 million medical members, said on Monday its first-quarter operating profit rose a higher-than-expected 16 percent as profits from its health maintenance organisation grew. Its stock closed at 78-15/16 ahead of the news.
Online bookstore Barnesandnoble.com Inc. (NasdaqNM:BNBN - news) on Monday reported a first quarter 2000 pro forma loss of $27.1 million, or 19 cents per share, in line with Wall Street expectations for the quarter. Its stock closed at 10-15/16 ahead of the news. |
