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Telecom-related issues have stock futures trading lower this morning as Lucent Technology (NYSE:LU) falls 14% to $5.40 after saying its fiscal second quarter loss will meet expectations, but warned that revenue would fall short as service providers continue to reduce or defer spending. The telecom equipment maker said that its return to profitability and positive cash flow would likely be pushed back to fiscal 2003.

Other telecom equipment stocks were also trading lower with Ciena (NASDAQ:CIEN) -6.7% at $9.60, Juniper Networks (NASDAQ:JNPR) - 8.2% at $13.50 and Cisco (NASDAQ:CSCO) fell -3.5% to $16.80 in pre-market trading.

Mobile phone bellwether Nokia (NYSE:NOK) fell 4% to $22.56 on ECN trading after the company said it sees first quarter network sales down 25% compared to its 16-20% previous forecast. Rivals Alcatel (NYSE:ALA), Ericsson (NASDAQ:ERICY) and Motorola (NYSE:MOT) are also seeing some pre-market selling pressure.

As if earning's warning's from Lucent (LU) and Nokia (NOK) weren't enough, WorldCom (NASDAQ:WCOM) shares shed 14.9% to $7.66 as concerns build on the depth of a Securities and Exchange Commission accounting look at telecom companies, including Qwest (NYSE:Q). WorldCom (WCOM) said the SEC has requested information about certain accounting procedures.

Today's telecom-related negativity has stock futures looking lower as S&P futures trade down 10 points at 1,158, NASDAQ futures are lower by 33.5 points at 1,522 and Dow futures are down 98 points at 10,505.

Fair value for the S&P 500 today is $2.79. HL Camp & Company has their computers set for program buying at $4.01 and set for program selling at $1.57. Fair value for the NASDAQ-100 today is $9.53.

Jeff Bailey
Senior Market Technician
Option Investor

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