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Wall St. takes another hit

January 25, 2002 Posted: 1334 GMT

NEW YORK (CNN/Money) -- The U.S. stock market will struggle to snap a two-week losing streak Friday after Ericsson, JDS Uniphase and Qualcomm became the latest companies to unnerve investors.

Stock index futures pointed to a lower open following a two-session advance.

Among early losers, shares of JDS Uniphase (JDSU: Research, Estimates) fell 75 cents to $7.14 before hours Friday after the maker of fiber optic equipment logged a big loss for the latest quarter and said sales in the current quarter could fall as much as 15 percent below the last quarter.

Ericsson (ERICCY: Research, Estimates), the mobile phone maker, saw its stock fall 29 cents to $4.40 in the early going. The company warned that sales this year could fall as much as 10 percent.

Similarly, Qualcomm (CQOM: Research, Estimates), the maker of wireless technologies, said sales in its second quarter will fall below expectations. Qualcomm fell $1.50 to $42.21 in before-hours trading.

Gateway's (GTW: Research, Estimates) fourth-quarter profits of 2 cents a share topped forecasts. But the No. 4 computer maker announced another round of job cuts and said it sees losses over the next several quarter. Gateway stock fell 11 cents to $6.25 early Friday.

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Early market losses could wipe out some of the stock market's two-day advance that has the major indexes clinging to slight gains for the week.

But stocks are still lower on the new year as investors fret about the strength and timing of any economic recovery. In comments to Congress Thursday, Alan Greenspan, the Federal Reserve chairman, served up a mixed assessment, pointing to signs of stability amid uncertainty about a spending rebound.

The Nasdaq composite index starts at 1,942.58 after adding 20 points, or about 1 percent, Thursday. The Dow Jones industrial average begins at 9,796.07 after a 65-point gain, while the Standard & Poor's 500 is at 1,132.15 after adding 4 points.

Overseas, European markets were lower in early trading Friday, led by tech and telecom issues. Asian markets ended higher.

In the bond market, U.S. Treasurys edged lower, sending yields higher. The yield on the 10-year note was up to 5.04 percent from 5.01 percent late Thursday.

Elsewhere, the dollar rose to a seven-month high against the euro, which traded as low as 86.53 cents from 87.77 cents Thursday. The dollar slipped to 134.25 yen from 134.87 yen Thursday. Brent oil futures rose 13 cents to $19.26 a barrel in London.

On the economic front, the National Association of Realtors is set to report existing home sales for December after the market opens. Home sales are expected to slip slightly to an annual rate of 5.18 million units from 5.21 million in November, according to economists surveyed by Briefing.com.

After cutting interest rates 11 times last year, the Federal Reserve next week may opt to leave borrowing costs alone. Central bankers wrap up their first meeting of the year Wednesday.





 
 
 
 



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