Yesterday's selloff doesn't seem to have run its course yet.
At 9:05 a.m. EST, the
futures were off 5.8, about 3.5 points below fair value and indicating a tilt toward a lower opening for stocks.
That's not necessarily a bad thing, mind you -- an early selloff could help flush things out on the downside some. Since reflexive snapbacks often have difficulty holding through the session, it's risky to chase them higher. On the other hand, technically speaking, there's a heck of a lot of flushing that could be done in certain technology and Net stocks.
"This is a little repentance here," said Doug Myers, vice president of equity trading at
. "There definitely was some concern over the
pullback. But a lot of people are pointing out that the Nasdaq and the
have been diverging. At some point, they'll re-converge."
has turned heads after saying in a 10-Q last night that its net sales could grow at a slower pace. The statement is a standard qualification the company has put in its quarterly reports before. But it doesn't take much to spook investors in a company with a P/E close to 170 on a trailing basis -- a lofty level that is largely justified by Cisco's rampant growth rate.
The bond market, which got roughed up yesterday by a somewhat hot
retail sales report, and which consequently put a drag on equities, is looking quite a bit quieter this morning. The 30-year Treasury was lately off 2/32 to 97 17/32, putting its yield at 6.309%.
The large European bourses were moving lower in early afternoon trading. Frankfurt's
was down 17.60 to 6170.39, while the Paris
was 68.60 lower, or 1.2%, to 5495.87. Stocks were tanking in London, where the
was down 87.5, or 1.3%, to 6614.6.
The euro inched further back toward parity with the dollar overnight. The European currency weakened from the $1.005 level overnight, and was lately sitting at $1.0018. As expected, the
European Central Bank
left euro-zone interest rates unchanged at its fortnightly meeting.
Hong Kong stocks got hammered in the backdraft of yesterday's technology selloff on Wall Street. The benchmark
lost 457.39, or 2.8%, to 15,825.31.
Things went considerably better in Tokyo, where stocks rallied from early losses, though they couldn't hold those gains late in the session. The
fell 27.19 to 18,138.36.
The dollar held its firmer tone against the yen, rising as high as 103.7 in overnight trading. The greenback was lately quoted at 103.53 yen, near its level late in New York trading yesterday.
The day's economic data in Japan weren't helping the yen any. The government revised October industrial production down to minus 2.7% from minus 2.3%, while Tokyo department store sales recorded a 4.7% year-over-year decline.
Wednesday's Wake-Up Watchlist
Here's something for the much ado about nothing category. Reports that
said it expects "that in the future, our net sales may grow at a slower rate than experienced in previous periods, and that on a quarter-to-quarter basis, our growth in net sales may be significantly lower than our historical quarterly growth rate," according to its
filing with the
Securities and Exchange Commission
filed yesterday, hurt the stock ahead of the open. However, the language cited in reports has been standard language for the company in recent SEC filings.
reported second-quarter earnings of 26 cents a share, beating the
First Call/Thomson Financial
30-analyst estimate of 22 cents and the year-ago 19 cents. For more on Oracle's
earnings, check out the coverage provided by
will announce firm orders for 120 planes valued at about $8.5 billion,
The Wall Street Journal
reported, citing execs close to the deals. The
reported that the announcement from Boeing could come as early as today.
Mergers, acquisitions and joint ventures
is negotiating to acquire closely held
for approximately $1.65 billion, the
said it has inked a five-year primary source pact with
. Bergen Brunswig said Duane Reade would purchase roughly $1 billion in products throughout the life of the agreement.
said it would acquire
for stock. CMGI said it would issue 0.1252 CMGI shares for each share of Yesmail.
have entered an agreement which calls for Circuit City to market AOL's products and services in its store.
announced its plans to sell its natural-gas distribution division for $425 million.
has launched a $5.3 billion to $6.2 billion offer for the financially floundering
news agency reported,
KLM Royal Dutch Airlines
said they have agreed to a joint marketing pact. The announcement is seen as progress toward a global alliance between Continental, KLM,
. The pact includes passenger and baggage check-in and exchangeable frequent flyer program participation.
said they have agreed to a joint development and marketing deal to design a system for telephone service over cable lines. The two companies said they would combine the software that runs their equipment.
have teamed to provide an end-to-end system to reduce the time it takes cable providers to activate new subscribers for cable Internet access.
said it has agreed to acquire
, in a stock deal valued at up to $3.25 billion. Nortel said the price of the deal would be partly determined on Qtera meeting "certain business objectives." The acquisition would not add to fiscal earnings until 2001.
said it has entered an agreement to purchase closely held
, in a deal valued at $108 million.
Earnings/revenue reports and previews
(Earnings estimates are from First Call/Thomson Financial.)
said it expects fiscal 2000 sales growth to slow to about 8% and set an earnings-per-share target for the year of $1.20.
Offerings and stock actions
said it set a share repurchasing plan for up to $100 million.
said it has set a $20 million share-repurchasing program.
Dun & Bradstreet
is expected to vote on management's plan to split its
Moody's Investors Service
unit into a separate firm, people familiar with the matter said, according to the
A group of U.S. and French farmers filed a class-action lawsuit in federal court in Washington against
, charging it with attempting to monopolize genetically modified crops and with not thoroughly testing the products for safety. Monsanto said the allegations are "absolutely baseless."
is under investigation by the
for alleged antitrust violations in dealings with big music companies, the