Nokia's sales caution, a day after Motorola warning, could again cause investors to look at sector.
June 10, 2003: 5:42 AM EDT
By Mark M. Meinero, CNN/Money Staff Writer
NEW YORK (CNN/Money) - The wireless phone industry will again be in focus Tuesday on Wall Street with Nokia's mixed outlook coming a day after Motorola issued a sales and earnings warning.
At 5:30 a.m. ET, futures pointed to a flat to higher start for the major indexes.
Nokia (NOK: Research, Estimates), the world's largest handset maker, said Tuesday that second-quarter sales are likely to be at the low end of expectations because of the weak dollar, the SARS outbreak plaguing phone production in Asia and a generally dismal world economy. But the Finnish company said profit for the quarter will be within the range of prior expectations.
Nokia's American depository shares closed Monday at $17.96, up 21 cents.
The scheduled forecast comes a day after Motorola (MOT: Research, Estimates), Nokia's chief rival, warned that sales and earnings for the quarter will be below previous forecasts.Among U.S. stocks trading in Europe, Motorola shares rose 2 percent after U.S. shares declined 21 cents to $8.68 Monday.
The Dow Jones industrial average started the week with a 0.9 percent decline that placed it just below 9,000. The Nasdaq composite index was 1.4 percent lower (see chart for details).
Asian-Pacific stocks ended lower Tuesday, with Tokyo's Nikkei index down 0.4 percent. European markets were mixed following the Nokia update.
Treasury prices were little changed, with the 10-year note yield at 3.28 percent. The dollar was a little stronger against the yen and euro.
Brent oil futures slipped 35 cents to $27.16 a barrel in London, where gold pulled back in early trading.
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