Nasdaq, S&P Set to Open Lower

The Nasdaq Composite Index and S&P 500 are set to open lower this morning after closing in the green yesterday, and futures were drifting in the red before the open.

At 7:51 a.m. EDT, the S&P 500 futures were down 4.9 points, over 6 points below fair value and an indication of a weaker open. The Nasdaq 100 futures were 23.5 points lower, indicating some selling sentiment for the early going.

The market will get a minor piece of data this morning, with weekly jobless claims out at 8:30 a.m. EDT. According to Reuters consensus estimates, this week's claims are forecast to come in at 289,000, compared with 296,000 the previous week.

Tech sentiment got a boost yesterday after the Nasdaq Composite Index was able to hold its head above the psychologically key threshold of 4000 for the second consecutive session this week. The Nasdaq's gains were mostly thanks to Microsoft(MSFT), however, which rose 7.7%, after Judge Thomas Penfield Jackson, the trial judge in the antitrust case, froze a set of tough restrictions on its operations while appeal is pending.

But this market probably won't be too convinced of anything until it hears what Federal Reserve chairman Alan Greenspan has to say about the economy at the Fed board's meeting on June 27-28. While cool May data reports have most of the market convinced the Fed won't raise interest rates this time around, Greenspan will almost definitely issue a few hazy words on his outlook for the coming months.

The big question now is how much of the recent runup is a pre-emptive rally, factoring in the likelihood that the Fed will stay interest rates this month. The other big questions on everyone's mind are whether a slowing economy is going to slow corporate earnings and which matters more for the broader market.

Meanwhile, it looks like June consumer prices could heat up on higher gas prices after OPEC announced yesterday it would increase oil production by only 708,000 barrels a day. Industry officials had said anything under an additional one million barrels likely wouldn't cut into prices at the pump.

Be sure to watch analog chip-maker Burr-Brown(BBRC) at the open. The stock was soaring in Europe and off-hours trading in the U.S. after Texas Instruments(TXN) announced plans to acquire the company for $7.6 billion in stock. Investors were less enthusiastic about Texas Instruments, which was trading a little lower in Europe and U.S. off-hours.

In earnings news, expect to hear from Micron Technologies(MU) and brokerage Morgan Stanley Dean Witter(MWD) later today.

Bonds/Economy

The Treasury market was edging down, with the 10-year note down 1/32 at 102 24/32 and yielding 6.117%.

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International

European markets were mixed and searching for direction at midsession.

The Paris CAC was up 17.35, or 0.27%, to 6508.11, while Frankfurt's Xetra Dax was 40.65 lower, or 0.57%, to 7059.44.

Across the channel, London's FTSE, meanwhile, was 11.2 higher, or 0.17%, to 6489.0.

The euro was lately trading down at $0.9397.

Asian markets were mixed overnight in a reversal of yesterday's moves, with Tokyo and Hong Kong lower, and Korea and Taiwan closing up on the session.

Despite a strong start to the day in Tokyo, a bulk sale in September Topix futures during the last minute of trading left markets slightly lower than Wednesday's close. The Nikkei 225 index fell 104.07 points to 17,106.01, while the Topix index, which includes all shares listed on the Tokyo Stock Exchange's first section, shed 8.32 to 1575.63.

In Tokyo currency trading, the greenback was slightly weaker, fetching 105.23 yen. The dollar was recently trading 105.36 yen.

Hong Kong's Hang Seng index shed 285.78 points, or 1.8%, to 15,952.36, dragged down by weak bank and property shares.

And Korea's Kospi index gained 0.37 to 782.24, while Taiwan's TWSE index rose 134.17, or 1.6%, to 8771.77.

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