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Good news or bad news?

Fine, good news first.

Amazon.com

(AMZN) - Get Amazon.com, Inc. Report

released its third quarter results, which

had smaller losses and bigger sales than the analysts expected, and made some nice moves in preopen trading on

Instinet

, an electronic trading network that allows investors to swap stocks even after the closing bell. It was last up $4.19, or 14%, to $33.75.

And on to the bad news. Markets will open much lower as futures take a hit and an earnings miss hurts technology. Futures were underwater as the

S&P 500

futures on

Globex

dropped 4 to 1399.00, which is off 9.83 from fair value as calculated by

Prudential Securities

. And don't even look at those

Nasdaq 100

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futures, which were off 52.50 to 3290, which is 95 below fair value as calculated by

TheStreet.com.

Intrigue and suspense ruled the early morning as investors got a good long look at Hitchcockian earnings from (North by)

Nortel

(NT)

. The fiber optics company, or "optical," announced third quarter earnings per share that

beat the street by a penny, but lo and behold, the company missed a critical revenue expectation, scaring many who feel that the economics of new technology are cooling off. As a result, Nortel got killed in

after-hours trading and last traded at $49, with a loss of $14.31 at Instinet.

Nortel's miss dented overseas markets. Japanese markets were last seen running through a cornfield, getting buzzed by the bad news. Tokyo's

Nikkei 225

took it on the chin, dropping 307.72 to 14,840.47, led lower by

Furukawa Electric

, which has a stake in

JDS Uniphase

(JDSU)

. (Hong Kong's

Hang Seng

, which fell yesterday while the Nikkei rose, continued its contrary ways, gaining 135.21 to 15,061.14.)

Now, here's where the intrigue kicks in, OK?

JDS Uniphase is an optical, and will be releasing earnings this evening. And with Nortel's revenue miss already spooking markets, JDS Uniphase is along for the downturn, dragging Kurukawa with it. Additionally, the specter of

Lucent

(LU)

, which provides supplies and services to the opticals, continues to haunt the market sector after

replacing its CEO and announcing slower than expected revenue growth.

And with all these opticals tied together, if not by business relations then investors' minds, look for a bunch of optical-related names to feel some pain, at least initially. On Instinet, JDS Uniphase last traded at $84.25, $10.81 lower than where it sat at its close yesterday, where it finished at $95.06. With that in mind, keep an eye on the following opticals and optical-related companies:

Ciena

(CIEN) - Get Ciena Corporation Report

,

SDL

(SDLI)

,

Cisco

(CSCO) - Get Cisco Systems, Inc. Report

and

Corvis

(CORV) - Get Correvio Pharma Corp. Report

.

AT&T

(T) - Get AT&T Inc. Report

hasn't been paying attention to sugary-sweet pop songs from the 1950s. Otherwise, the company would realize that breaking up is hard to do. The big-league telecommunications company made good on its plan to split into four separate companies, officially announcing this morning that it will split up the company.

AT&T will create four separate entities, each focused on some aspect of AT&T's business. The core company, which will continue to carry on with the AT&T name, is the lucrative business services unit. The consumer telephone business will become a tracking stock, while AT&T's wireless and broadband cable divisions become independent common stocks.

AT&T also said its third-quarter earnings excluding gains and charges were 38 cents a diluted share compared to 50 cents a share for the same period a year ago. The average of the 12 analysts polled by

First Call/Thompson Financial

was for the company to earn 36 cents a share. AT&T said pro forma revenue for the quarter increased 3.7 percent over last year, led by its wireless, broadband and business services unit. Revenue from the consumer long-distance area continued to fall.

So, AT&T beat analyst estimates, but those were lowered after the company had earlier cut its growth forecasts for the year.

On

Instinet

, AT&T was marginally lower. It was trading off 13 cents from its Tuesday close on the

New York Stock Exchange of $26.88. It hit a 52-week high near $60 in March.

Overseas, Europe was blood red. London's

FTSE

was last off 59.9 to 6378.5, while Germany's

Xetra Dax

fell 39.8 to 6763.0 and France's

CAC-40

fell 61.6 to 6262.2.