Nasdaq's gloomy Vista

Decision by Microsoft to delay release of its new Windows operating system likely to hit tech shares Wednesday.

March 22, 2006: 7:37 AM EST


NEW YORK (CNNMoney.com) - Technology stocks looked to take a hit at Wednesday's open after Microsoft's decision to delay the introduction of its new Windows Vista operating system.

Nasdaq futures were down sharply, indicating a lower open for the tech-laden market. But the broader market appeared set for a slightly higher start as indicated by S&P futures.

Shares of Microsoft (Research) fell 3.5 percent in heavy Frankfurt trading on the news about Vista. Other tech shares, particularly makers of memory chips and personal computers, were also lower on the news, which is seen as cutting into second half sales as buyers wait until the new software's rollout next January to upgrade equipment.

Major markets in Asia closed lower Wednesday on the Microsoft news, while major European markets were mixed in early trading.

Oil prices were lower ahead of the weekly report on U.S. fuel inventories, due at 10:30 a.m. ET. The May light crude futures contract for NYMEX fell 21 cents to $62.13 a barrel in electronic trading, while the May contract for Brent crude lost 14 cents to $61.99.

Treasury prices were lower, lifting the yield on the benchmark 10-year note to 4.71 percent from 4.70 percent late Tuesday. The dollar was higher against the euro and little changed versus the yen.

In corporate news, the Bush administration is considering subjecting the biggest vans and SUVs to fuel-economy rules for the first time, according to a report in the Wall Street Journal, a move that would further hit embattled U.S. automakers, particularly General Motors (Research) and Ford Motor (Research), which depend on the sales of the large models more than their Japanese rivals.

But shares of GM were 1 percent higher in Frankfurt in early trading Wednesday on hopes that a deal between the automaker, the United Auto Workers union and bankrupt auto parts maker Delphi is near