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Stock futures fractionally red

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Stock futures are fractionally lower this morning after last night's plethora of earnings reports and cautious future guidance given from several companies that reported quarterly earnings.

S&P futures are currently trading down 1.5 points at 1,131, NASDAQ futures are lower by 12 points at 1,555 and Dow futures are down 9 point at 9,785.

Fair value for the S&P 500 today is $0.85. HL Camp & Company has their computers set for program buying at $1.92 and set for program selling at $-0.92. Fair value for the NASDAQ-100 today is $4.04

Bid lower

Shares of JDS Uniphase (NASDAQ:JDSU) are bid $7.20, down 8.7% from yesterday's close of $7.89 after the company reported earnings last night and issued a cautious outlook near-term. Some analysts feel that inventory levels at customers of JDSU remain high and don't expect those inventory levels to begin seeing some draw down until the latter half of 2002.

Qualcom (NASDAQ:QCOM) reported earnings last night that were inline with estimates, but the company did guide lower for its upcoming 2nd-quarter earnings and revenue targets. Shares of QCOM are bid lower at $42.00, which is about 4% below yesterday's close of $43.75.

PeopleSoft (NASDAQ:PSFT) fell $4.31 (-11%) in pre-market action to $34.12 after the company reported earnings that beat estimates, but guided lower on its next fiscal quarter. PSFT management said their lowered guidance "is a clear eyed and sober view in a tough environment."

Bid higher

It's not all bad news this morning and some technology related stocks are trading higher in pre-market action. Shares of PMC Sierra (NASDAQ:PMCS) are bid higher by $1.76 at $23.62 after yesterday's earnings and upgrade this morning by Goldman Sachs and added to the firm's "recommended list."

Pivotal Corp. (NASDAQ:PVTL) is bid higher by $0.50 at $6.50 (+8%) after an upgrade from Goldman Sachs. The firm believes the stock is ready to rebound due to 1) license revenues being up 13% in latest quarter suggests that recovery is underway, 2) new management team and a stronger sales organization is more focused, 3) channel checks with PVTL resellers and partners confirm stronger PVTL outlook and 4) demand should improve through 2002-03 as growth in IT spending improves. Goldman is raising its price target to $12 from $7.

Jeff Bailey
Senior Market Technician
Option Investor

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