Nokia's forecast to draw special attention as Nasdaq starts Tuesday session near 18-month high.
September 9, 2003: 5:32 AM EDT
By Mark M. Meinero, CNN/Money Staff Writer
NEW YORK (CNN/Money) - Investors will keep a close eye on tech stocks Tuesday, with wireless stocks especially in focus after cellphone maker Nokia said third-quarter earnings would be at the top end or above expectations.
At 5:30 a.m. ET, futures pointed to a lower start for the major indexes.
Nokia (NOK: Research, Estimates), the world's largest handset maker, said Tuesday that demand for its products will help push current-quarter earnings to the top end or even above previous estimates. That could allow Nokia to match the previous year's earnings; the prior forecast left the Finnish company a little short of the same 2002 period.
The tech-laden Nasdaq rose 1.6 percent, to more than 1,888, in Monday trading as investors took a fancy to such news as wireless chipmaker RF Micro Devices (RFMD: Research, Estimates) raising its 2003 outlook. Biotechs got a boost after Regeneron (REGN: Research, Estimates) received a more than $500 million cancer drug contract from European manufacturer Aventis.
The Dow Jones industrial average also captured tech fever with the help of IBM (IBM: Research, Estimates), upgraded by CSFB. The blue-chip indicator rallied 0.9 percent to its highest level since June of last year. (see chart for details)
Techs may get a renewed lift Tuesday after handheld communications device maker Research in Motion (RIMM: Research, Estimates) said it expects fiscal second-quarter sales to be better than expected. The Blackberry company closed Monday at $28.24, up 39 cents.
Asian-Pacific stocks ended mostly higher Tuesday, with Tokyo's Nikkei index up 2.2 percent. European markets were mixed in early trading. (Check the latest on world markets)
Among U.S. stocks trading in Europe, Walt Disney (DIS: Research, Estimates) shares rose more than 2 percent. A judge dismissed a shareholder suit that claimed the media company defrauded investors by not revealing potential liability from a separate suit involving Winnie the Pooh merchandise.
Treasury prices rose in early trading, sending the 10-year note yield down to 4.39 percent from 4.44 percent late Monday. The dollar pulled back against the yen and euro.
Brent oil futures slipped 2 cents to $26.95 a barrel in London, where gold gained in early trading.
The only economic report of note due Tuesday is wholesale inventories for July, scheduled shortly after the markets open. Economists surveyed by Briefing.com expect to see a 0.1 percent increase, compared with no change in June inventories.
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