To: Voltaire who wrote (27672 ) 8/3/2000 9:17:25 AM From: Dealer Read Replies (1) | Respond to of 35685 MARKET SNAPSHOT Sekkers look to take charge More tech weakness in store By Julie Rannazzisi, CBS.MarketWatch.com Last Update: 8:53 AM ET Aug 3, 2000 NewsWatch Latest headlines NEW YORK (CBS.MW) - The broad market is readying for an open deep in the red Thursday, with lots of weakness emerging in the technology sector. Chip stocks in particular may be the hardest hit sector. Earnings jitters have paralyzed investors of tech stocks in recent weeks, keeping the Nasdaq on a downward trajectory. September S&P 500 futures slipped 13.70 points, or 0.7 percent, and were trading roughly 9.90 points below fair value, according to HL Camp & Co. Nasdaq futures, meanwhile, tumbled 92.00 points, or 2.6 percent. Putting pressure on the tech sector was an earnings warning from Kulicke & Soffa Industries (KLIC: news, msgs). Late Wednesday, the supplier of semiconductor assembly equipment announced some customer order deferrals for its ball bonders due to space constraints and wafer shortages affecting its customers. The delay may impact financial performance in the current quarter and in the first fiscal quarter of 2001. Kulicke & Soffa also reported a third-quarter profit of $1.35 a share vs. the First Call estimate of $1.06 a share. The stock stumbled 4 1/8, or 19 percent, to 18 in Instinet dealings. Among other tech behemoths trading ahead of the opening bell, Cisco Systems (CSCO: news, msgs) shed 15/16 to 60 in Instinet. See Indications. Late Wednesday, the Amex Networking Index ($NWX: news, msgs) fell 2.1 percent, led by losses in Cisco, which shed 3.6 percent. A couple of second-tier economic releases will be on tap for Thursday as investors prepare for Friday's kingpin - the July employment report, which will be key in formulating the Fed's interest-rate decision on Aug. 22. Weekly initial claims added 2,000 to 276,000. Still ahead are June factory orders, seen rising by 6.1 percent. View Economic Preview, economic calendar and forecasts and historical economic data. In earnings news, Viacom (VIA: news, msgs) checked in with a second-quarter profit from operations of 1 cent a share compared to the First Call estimate of a loss of 5 cents a share, which excludes a charge related to the CBS acquisition. Viacom had a profit of 8 cents a share in the year-ago quarter. Read full story. The stock shed 13/16 to 69 3/8 on Wednesday. In the bond market, the 30-year Treasury is regaining its composure after Wednesday's bruising sell-off. The 10-year Treasury note was up 9/32 to yield 5.94 and the 30-year bond was up 5/32 to yield 5.75 percent. The government market may catch a bid on the equity market's weakness. The dollar dropped to two-week lows against the yen, falling for a fourth straight session. Dollar/yen last changed hands at 108.50, down 0.3 percent from the previous close, while euro/dollar lost 1.1 percent to 0.9035. Both the European Central Bank and the Bank of England left key short-term rates unchanged at their policy-setting meetings Thursday. Julie Rannazzisi is markets editor for CBS.MarketWatch.com.