Investors and traders are looking for stocks to open lower here in the U.S. after declines in overseas markets and a warning from Extreme Networks (NASDAQ:EXTR) $3.84 further weighs on technology stocks.
Asian and European markets were lower as investors shunned equities in the face of poor corporate earnings and worries over potential war in Iraq.
In Asia, Hong Kong's Hang Seng fell -2.39%, Japan's Nikkei-225 fell -1.54% and South Korea's Seoul Composite shed -2.61%. In European market trading, France's CAC-40 plummeted -5.43%, Germany's DAX dropped -4.17%, Switzerland's Swiss Market fell -3.6% and the United Kingdom's FTSE-100 declined -3.61%.
Shares of Extreme Networks (EXTR) $3.84 fell more than 8% to $3.50 in pre-market trading after the network equipment maker said its fiscal first-quarter results would not meet expectations due to weak economic conditions. The company said it now expects to report a loss of 3 to 4 cents a share on revenue of $100 million in the quarter ending September, versus the average analyst consensus for a profit of 4 cents a share and revenue of $115 million.
That news had shares of networking bellwether Cisco Systems (NASDAQ:CSCO) $11.24 falling -2.0% to $11.00 in pre-market trading.
Shares of Dow component General Electric (NYSE:GE) $24.47 fell below $24 to $23.95 on the New York ECNs after Merrill Lynch lowered its 2002 and 2003 earnings estimate and told clients that 2004 could be "more challenging."
S&P 500 futures (sp02z) are currently lower by 9.30 points at 816.00, NASDAQ futures (nd02z) are off 11.00 points at 850.50 and Dow futures (dj02z) are lower by 83 points at 7,580.
Fair value for the S&P 500 today is $0.75. That price will not change during the session. HL Camp & Company has their computers set for program buying at $1.28 and set for program selling at $-2.28. Fair value for the NASDAQ-100 today is $3.50.