Updated from 9:27 a.m. EDT
Investors are staging a bit of a recovery in the tech stocks this morning. Money managers may want to search for bargains in what already looked like an oversold market to some.
In early going, the
Nasdaq Composite Index gained 41 to 3937. The
Dow Jones Industrial Average, however, fell 41 to 11,154. And the
S&P 500 moved 5 higher to 1494.
"It looks like we might get a little pop on the Nasdaq after two days of selling ...The short-term bias is overdone on the Nasdaq," said Peter Coolidge, managing director of trading at
Brean Murray Foster Securities.
Then again, don't expect steady summer-like gains. September is typically a pretty rough month for stocks, and at least one bearish trader thinks the market could still wipe out its entire August rally. It's earnings preannouncement season after all, which is doing its best to ruffle feathers, again. And a strong dollar and runaway oil prices are only aggravating earnings jitters.
"The trend does seem down in the month of September. If we do get a bounce, how long it will last is the question. People are worried longer term about warnings for fourth quarter. The Street's looking for clues as to how third-quarter earnings will come in," he said.
"I think it's just going to be a technical bounce. I don't want to read too much into this," Coolidge added.
Meanwhile, so-called triple witching happens this Friday, which should generate some wild swings this week. Triple witching is the expiration of equity options, index options and futures contracts. It happens on the third Friday of every third month -- and it often creates volatility.
Oil drillers could get some upside today after
Banc of America Securities
pushed them in a research note this morning. After the Venezuelan oil minister Ali Rodriguez said overnight that
is fast running out of production capacity, crude oil prices are again nearing 10-year highs hit last week. OPEC announced Sunday that it planned to increase daily output by 800,000 barrells a day.
Custom electronics maker
may serve in part as a catalyst for tech stocks today after its 12-month price target was raised to $60 by
Credit Suisse First Boston
this morning and
made some bullish comments on the company in its research note. The company last night announced fiscal fourth quarter earnings above analyst estimates. Its announcement came just before the closing bell, when it finished the day lower at $48.50 on the day.
won't be giving any help to chip stocks though. The chip industry supplier said last night that it expected to miss fourth quarter earnings forecasts by far. PRI Automation was getting whipped in pre-open trading and in Europe.
Other hot numbers today should include U.K. mobile-phone operator
unit received two formal bids for its Italian Internet operation
. One of these bids was worth about $10 billion,
The Wall Street Journal
separate story on the bids. Vodafone was 1.2% higher in early trading.
And financials should remain in the spotlight today. A buzz of takeover rumors gained new credence yesterday after
confirmed its acquisition of
Spear, Leeds & Kellogg
, giving financial stocks a boost Monday. Brokerage stocks were soaring yesterday.
is apparently in talks to buy U.S. investment bank
in a deal that could be worth between $1.2 billion and $1.5 billion,
The Wall Street Journal
wrote more about the talks in a
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The 10-year Treasury note was lately recovering slightly from yesterday's selloff, up 1/32 at 99 27/32, and yielding 5.770%.
Yesterday, a big rebound in oil prices and the specter of a flood of new corporate bonds put pressure on Treasuries.
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European markets were tumbling this morning as they tried to catch up with yesterday's Nasdaq selloff.
was lately 15.00 lower to 6567.00.
Across the channel, the
in Paris was off 32.53 to 6642.48, and the
in Frankfurt was off 53.41 to 7161.04.
The euro was lately trading lower at $0.8615.
recently wrote a separate piece looking at the
Asian markets added to their Monday losses overnight.
Tokyo traders cautioned that it has room to fall as investors hurry to book profits before their fiscal first-half books close at the end of September. The
index shed 90.67 to close at 16,040.23.
The greenback barely budged against the yen in Tokyo trading to 106.21. The dollar was lately trading at 106.28 yen.
index fell 378.20, or 2.2%, to close at 16,629.78 as investors opted to close out positions before a public holiday Wednesday. Index heavyweights got pummeled, including
Pacific Century Cyberworks
, down HK$0.50, or 4.0%, to 12.15 ($1.56) and
down 1, or 1.7%, to 58.
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