|
Wall St. worries persist
|
 |
April 3, 2001: 6:17 a.m. ET
Ariba warning the latest in series that has plagued U.S. stocks
|
NEW YORK (CNNfn) - Yet another technology company warning, this one from software maker Ariba, has U.S. stock investors ready Tuesday to keep the current market slump going.
Nasdaq-100 futures slid more than 1 percent, taking fair value into account, indicating a lower open for the Nasdaq market. Standard & Poor's futures were modestly lower, pointing to an initial dip for the S&P 500 index and Dow Jones industrial average.
 Ariba (ARBA: Research, Estimates), a maker of software allowing companies to buy and sell online, warned late Monday that it will post a fiscal second-quarter loss instead of the earnings that were expected. In addition, the company will cut a third of its work force and terminate its proposed merger with Agile Software (AGIL: Research, Estimates). Ariba shares fell 81 cents to $5.69 in after-hours trading; Agile skidded $1.12 to $9.38.
But Ariba is just joining many other U.S. companies that have warned of weak results for the quarter that ended Saturday. Most of the warnings have come from technology companies, although Monday's blue-chip selloff was fueled in large part by a warning from credit card issuer American Express, a Dow component.
Adding to investor concerns is the situation in China, where U.S. diplomats were scheduled Tuesday to see the 24-member crew of a spy plane that made an emergency landing on Hainan Island.
The Nasdaq composite index starts the day at 1,782.97, its lowest level
since Oct. 30, 1998, after Monday's 3.1 percent decline. The Dow Jones industrial average stands at 9,777.93 after a 100-point drop, and the S&P 500 is at 1,145.87 following a 14-point decline.
Asian stock markets finished mixed Tuesday, with Tokyo gaining on hopes about the government's economic recovery proposal due later in the week. European markets fell sharply in early trading.
Treasury prices slipped early Tuesday. The yield on the 10-year note was unchanged at 4.97 percent, but the 30-year bond yield rose to 5.49 percent from 5.47 percent late Monday.
The dollar slipped against both the yen and euro. Brent oil futures rose 15 cents to $24.50 a barrel in London.
Nokia (NOK: Research, Estimates), the Finnish mobile phone maker, announced Tuesday that it has won a $1.3 billion contract to supply phones to France Telecom. Nokia's American depositary shares closed Monday at $22.93, down $1.07.
 Best Buy (BBY: Research, Estimates), the electronics retailer, is scheduled to report fiscal fourth-quarter earnings of 82 cents a share, up from 78 cents a share a year earlier. The company's stock rose 84 cents to $36.80 Monday.
The only economic report of note due Tuesday is the government reading of factory orders for February. Economists surveyed by Briefing.com expect an increase of 0.2 percent, compared with a 3.8 percent decline in January. 
|
|
|
|
|
 |
|
