• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Tech Stocks to Lead Dow, Nasdaq Higher

Posted on: Wednesday, 24 January 2007, 09:00 CST

LONDON - Yahoo and Sun Microsystems were poised to lead U.S. technology stocks higher on Wednesday, though the broader market was looking for a steady start ahead of the release of weekly energy inventory numbers.

S&P 500 futures edged 0.2 of a point lower at 1,435.20 while Nasdaq 100 futures climbed 7.5 points at 1,794.50. Dow industrial futures edged 4 points lower.

U.S. stocks ended higher on Tuesday, with the Dow industrials rising 56 points, the S&P 500 up 5 points and the tech-heavy Nasdaq Composite edging up 0.3 of a point. Texas Instruments, United Technologies and ExxonMobil paced the market's advance.

Tech stocks are poised for a better performance after Yahoo rolled out new search ad technology, dubbed Panama, and said it expects to improve revenue per page view over the course of the year.

Yahoo shares rose 5.2 percent in Frankfurt, even after the Internet search group reported a 61percent profit decline.

Sun Microsystems rallied 9.6 percent in Frankfurt trade, after Kohlberg Kravis Roberts said it will invest $700 million into the group and Sun swung to a better-than-forecast profit on 7percent revenue growth.

RF Micro Devices also was set for gains after its quarterly results, though Intel rival Advanced Micro Devices worse-than-forecast sales and Oracle rival SAP's increased spending plans may hurt shares of those technology companies.

Outside of the technology sector, oil will be in focus after the sharp rally on Tuesday ahead of weekly energy inventory statistics. March-dated crude oil futures dropped 46 cents at $54.58 a barrel in electronic trade.

Markets also will be scrutinizing President Bush's State of the Union speech, in which he floated new proposals to expand health insurance coverage and reduce reliance on imported oil.

ConocoPhillips, General Dynamics, and McDonald's are among the blue chips due to report quarterly earnings, with eBay reporting results after the market's close.

The British pound weakened against the U.S. dollar after a relatively dovish speech from the governor of the Bank of England and a surprisingly tight 5-4 vote at its last interest-rate decision meeting, though the dollar did weaken somewhat against the Japanese yen.

The FTSE 100 rose 0.8 percent in London on upbeat results from bank Northern Rock and gains from the energy sector, and the Nikkei 225 in Tokyo closed 0.6 percent higher.

Source: Associated Press/AP Online

More News in this Category