To: Dealer who wrote (32098 ) 9/7/2000 9:27:52 AM From: Dealer Read Replies (1) | Respond to of 35685 <font color=blue>MARKET SNAPSHOT--Shares look to bounce Futures point to higher open for techs By Julie Rannazzisi, CBS.MarketWatch.com Last Update: 8:41 AM ET Sep 7, 2000 NewsWatch Latest headlines NEW YORK (CBS.MW) - U.S. stocks are seen rising Thursday, with technology issues looking to rebound following Wednesday's bruising sell-off. The Nasdaq has slid for two consecutive trading sessions due primarily to the beating taken by chip stocks. Market watchers say it's imperative the semis reclaim lost territory for the Nasdaq to make any lasting progress. "The markets are likely entering a period of rest in the form of a trading range after running up for the last five weeks. Since the rally period was slow, the consolidation period will likely be similarly quiet," said Robert Dickey, chief technical strategist at Dain Rauscher Wessels. "This may be the best we can expect as the market sorts through the earnings news of the next two months," he added. September S&P 500 futures climbed 4.50 points, or 0.3 percent, and were trading approximately 3.90 points above fair value. Nasdaq futures, meanwhile, gained 22.00 points, or 0.6 percent. In shares trading before the opening bell, Yahoo (YHOO: news, msgs) eased $3.06 to $109 in Instinet dealings. See Indications. Yahoo's chief executive Tim Koogle made some cautious comments on ad revenue at the Robertson Stephens Internet Conference on Wednesday. Asked whether Yahoo will see weakness in advertising -- both traditional and dot-com -- Koogle said that while it's hard to gauge, he believes the difficult period will continue for two more quarters. See full story. In the meantime, Dow-component DuPont (DD: news, msgs) lowered its 2000 earnings-per-share estimate to $2.85 to $2.95, which falls short of the current First Call estimate of $3.01. The company blamed higher-than-expected energy and raw materials costs as well as the euro's continued decline. See full story. Shares fell 10 percent to $42.38 in Instinet. The company revised its EPS outlook to $2.85 - $2.95 per share, which is 10-14 percent higher than the $2.58 earned last year, but lower than the First Call consensus estimate of $3.01. In the bond arena, issues put on a mixed performance. The 10-year Treasury note added 1/32 to yield ($TNX: news, msgs) 5.725 percent and the 30-year bond lost 1/32 to yield ($TYX: news, msgs) 5.715 percent. In economic news, Thursday saw the release of weekly initial claims, which dipped 3,000 to 316,000. The week's data docket has left the bond market without any fresh evidence that the U.S. economy is slowing and Treasurys have been mired within a tight range. View Economic Preview, economic calendar and forecasts and historical economic data. In the currency arena, dollar/yen (C_JPY: news, msgs) slipped 0.5 percent to 105.24 while euro/dollar (C_EUR: news, msgs) continued its descent, piercing fresh lows of 0.8637. The pair was recently trading at 0.8670, off 0.5 percent. Comments from European officials suggest that the European Central Bank won't intervene in foreign exchange markets to prevent additional declines in the fledgling currency. This gave investors the green light to sell more euros. "Financial capital flows to wherever risk-adjusted expected returns are greatest. Perhaps as a means of avoiding the Continent's restrictive regulatory and tax policies, Europeans continue to pour financial capital into the U.S.," said John Lonski, chief economist at Moody's Investors Service. "Global investors are very much attracted to the flexibility and dynamism of the U.S. economy," Lonski added. The euro has fallen 14 percent this year and is down almost 26 percent since its inception in January 1999. The euro first fell below parity against the dollar in December 1999. Julie Rannazzisi is markets editor for CBS.MarketWatch.com.