Preopen Trading: Futures Action Suggests Market to Inch Higher on Open

Futures activity indicates the market should open ever-so-slightly higher, but otherwise the market is taking a wait-and-see approach in preopen action. Even priceline.com (PCLN Quote), yesterday's loser after an earnings warning, hadn't traded in the early morning action yet, according to Instinet.

Of late, S&P 500 futures were trading down 1.50 points to 1445.50, about 2.1 points above fair value, and the Nasdaq 100 futures were down 13 points to 3632, about 9 points above fair value. So trading in both futures contracts are suggesting the market will open a bit higher, although not by much, and for the last two days, fast starts out of the gate have proven only to be opportunities for investors to sell stocks.

News that Exodus Communications (EXDS Quote) would buy Global Crossing's (GBLX Quote) Globalcenter Web-hosting unit for about $6.5 billion in stock had those stocks on the move in early trading.

Exodus was lately traded at $52, down from Wednesday's close at $53.25, while Global Crossing was traded at $32, up from Wednesday's close at $29.88, according to Instinet.

priceline.com, which was squashed yesterday after the company warned of an earnings shortfall due to lackluster demand for their core airline ticketing business, hadn't traded in preopen action, but was offered at $11.25, up from the close at $10.75, according to Instinet. Another Internet bellwether, Yahoo! (YHOO Quote), was offered slightly higher in preopen action.

European stocks were hurting, dropping in sympathy with the weakness in U.S. technology stocks yesterday. London's FTSE 100 was down 27.50 to 6241.80; Paris' CAC 40 dropped 29.18 to 6290.61 and Frankfurt's Xetra Dax fell 68.39 to 6755.68.

Asian stocks closed weaker. Tokyo's Nikkei 225 index fell 12.99 to 15,626.96, and Hong Kong's Hang Seng lost 28.38 to 15,415.75.

For Wednesday's postclose trading, see The Night Watch.