Preopen Trading: Fiber Optics Expected to Open Strong, due to Solid JDSU Earnings Report - TheStreet

Yesterday's solid earnings results from fiber optics highflyer

JDS Uniphase

(JDSU)

has that stock bouncing in preopen action, and the rest of the sector appears poised for a strong open based on those results. The company bested earnings estimates by 2 cents, reporting earnings of 18 cents a share and a 23% gain in

revenue on a year-over-year basis.

In preopen trading, the stock recently traded at $82.38, up $7.94 from the previous day's close, and it was one of the most actively traded on

Instinet

. Chief competitor and fiber optic giant

Corning

(GLW) - Get Report

was also stronger in early action, gaining $4.83 to $74.82.

The market's direction today hinges on the 8:30 a.m. EDT release of the third quarter

Gross Domestic Product release.

Economists expect a third-quarter growth rate of 3.4%, down from 5.6% in the second quarter. A strong report could allay some concerns about an economy skidding to a halt; a weak report would be less positive for the market.

Currently, the

S&P 500 futures are traded at 1381.20, about 7 points above fair value. The

Nasdaq 100

futures are rolling, traded at 3265, or 70 points above fair value, indicating a stellar open for the tech-heavy index. Equity action has been mixed to bad in recent weeks, though, and significant rallies have proven to be selling opportunities through this entire month.

So far,

Microsoft

(MSFT) - Get Report

has not been damaged in preopen trading, despite last night's report that the company and the FBI are investigating a computer break during which officials believe hackers stole the software maker's source code. The company has been aggressively attempting to protect its code in litigation with the

Justice Department

.

In Europe, where they don't care about baseball so much, Paris'

CAC-40

gained 89.32 to 6297.74, while Frankfurt's

Xetra Dax

rose 131.41 to 6899.31, a 1.9% gain. London's

FTSE

gained 60.70 to 6363.

In Asian markets, Hong Kong's

Hang Seng

closed down 93.78 to 14902.46, while the Nikkei 225 dropped 276.23, or 1.86%, to 14582.20.

For more on last night's action, see Thursday's

Nightwatch.