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Stocks Set to Open Mixed to Higher

Posted on: Wednesday, 11 June 2003, 06:00 CDT

Stocks are set to open mixed to higher Wednesday, but concerns about Texas Instruments Inc.'s second-quarter earnings and revenue warning have hurt the Nasdaq outlook.

Dow Jones futures rose 18 points recently to 9,085, and S&P futures were up 1.80 points. But tech worries sent Nasdaq futures lower by 2.50 points.

In London, the FTSE 100 Index increased 35.50 points recently to 4,148.50 on a renewed bullish sentiment and a bounce back from profit taking. May jobless data remained steady at 3.1 percent, in line with expectations. European stocks were higher in early trading.

In European corporate news, Credit Suisse Group agreed to sell British insurer Churchill to Royal Bank of Scotland Group PLC for $1.82 billion in cash. Telecom Italia SpA agreed to sell its majority stake in the Seat Pagine Gialle SpA telephone-directories business for $3.55 billion to a consortium of investors led by BC Partners in Europe's largest-ever private equity deal.

In Japan, the Nikkei hit the psychologically key 9,000 mark for the first time since December before closing at 8,890.30, up 1.2 percent, or 101.21. Wide buying, from domestic demand stocks to international blue chips, supported the average, as did active short-covering before Friday's settlement of futures, option contracts.

In U.S. corporate news, job cuts were the order of the day. Sprint Corp. said its FON Group and PCS Group both would have second-quarter charges and that its FON Group will cut 500 jobs by year end. Safeway Inc. said it will eliminate 940 administrative positions, and Walt Disney Co. is eliminating about 140 Disney Store employees as it explores a sale of the chain.

Analysts expect H&R Block Inc. to report fiscal fourth-quarter earnings of $2.84 a share for when the company reports before the bell. OmniVision Technologies Inc. should earn 18 cents a share for its fiscal fourth quarter, expected after market close.

There were no economic indicators expected Wednesday.

U.S. stocks on Tuesday regained most of the ground lost the day before, as a late-day buying surge left 26 of 30 members of the Dow Jones industrial average with gains. The Dow rose 74.89 points, or 0.8 percent, to 9,054.89 after an 83-point decline Monday. The Nasdaq composite index added 23.70, or 1.5 percent, to 1627.67, and the Standard & Poor's 500 gained 8.91, or 0.9 percent, to 984.84.

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