NEW YORK, March 22 (Reuters) - U.S. stocks were seen opening steady on Monday, but sobering issues, like rising oil prices and worries about corporate profit warnings, could quickly deflate the euphoria over last week's assault on the historic Dow 10,000 milestone.
''There is skittishness, some worry,'' said Hugh Johnson, chief investment officer at First Albany Corp. ''The bond market is starting to deteriorate again, oil prices have been strong, and that collectively is putting a dark cloud over the market.''
Just after 0800 EST/1300 GMT, June S&P 500 futures were up 0.50 points at 1310.00.
On Friday, the Dow Jones industrial average closed down 94 points, or 0.94 percent, at 9903 on heavy volume of 916 million shares, due in large part to Wall Street's so-called ''Triple Witching,'' the expiration of futures and options contracts.
Blue chips were dragged down by a big sell-off of International Business Machines Corp. (NYSE:IBM - news) shares. Morgan Stanley cut its 12-month price target on the computer company to $195 from $210 per share as worries about the company's first quarter outlook mounted.
IBM's news pulled the Dow from its third and strongest leap over 10,000, in which the world's most widely watched stock gauge rallied to about 85 points over the threshold.
Analysts said Big Blue's issues echoed other worries about the entire technology sector, a chief spark to the market's recent bull run.
''The concerns about the PC companies, the concerns about the chip companies as conditioned by the PC area, those are all areas of concern,'' said Prudential analyst Larry Wachtel.
Several personal computer makers, like Compaq Computer Corp. (NYSE:CPQ - news), have warned about slowing sales this year.
The market is also watching oil. Prices have shot up some 40 percent to five-month highs after 13 global producers agreed to cut output by two million barrels per day. Their goal is to siphon unwanted oil from the world market.
The producers have so far succeeded in lifting prices from the cheapest levels since 1973. Oil hovers at $15 a barrel, up from a depressed $11 last December.
OPEC ministers meet on Tuesday in Vienna to ratify an agreement to curb production reached in The Hague on March 12 among five key producers. Four non-OPEC countries are also contributing cuts. |
