EUROPE--U.S. stocks seen bouncing as techs firm in Europe
LONDON, Sept 27 (Reuters) - Wall Street, which has been reeling from a spate of profit warnings, looked set for an early bounce on Wednesday as technology shares firmed in European trading. Investors found some encouragement after Tuesday's official trading hours as computer networking equipment maker 3Com Corp (NasdaqNM:COMS - news) reported a first quarter operating loss smaller than analysts' expectations.
Its shares were traded at $16-1/2 in Europe, edging up on levels seen after hours in New York and sharply higher than their official close of $13-15/16.
``Everybody's going to look for some sort of retracement of yesterday's losses,'' American Express Bank market strategist Gerry Celaya said, but added that the bounce could prove short lived as earnings warnings were still clouding the horizon.
Another dealer reflected the nervous mood. ``Every morning, its a question of who has put out a profit warning,'' he said.
By 1056 GMT, December Standard & Poor's 500 index futures were up 6.5 points at 1,449.50, while fair value was quoted at 1,444.49, indicating a firm start for the Dow Jones industrial average.
Nasdaq composite index futures were up 42.5 points at 3,659.0, while fair value was quoted at 3,635.13, also suggesting an early bounce.
The Dow ended Tuesday's session down 176.83 points or 1.6 percent, while the Nasdaq dropped 52.12 points or 1.4 percent.
Among technology stocks, U.S. computer chip maker Intel Corp (NasdaqNM:INTC - news) edged up to $44-1/8, compared with its New York close of $43-5/16, while International Business Machines Corp (NYSE:IBM - news) was quoted at $120-3/8 compared with its $119-5/16 U.S. close.
``This morning the market has got a much better feel to it. A few buyers have returned. This is the best it is has been for a week or so now,'' said one dealer.
Eastman Kodak Co (NYSE:EK - news), hammered on Tuesday after becoming the latest firm to issue an earnings warning, edged up in European trading. Its shares were quoted at $45-1/2 against their New York finish of $44-3/8. |
