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Wall St. looks for encore
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May 17, 2001: 8:29 a.m. ET
HP, Dell, Ciena draw attention as investors determine if rally can continue
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NEW YORK (CNNfn) - U.S. investors will watch technology stocks Thursday, especially computer makers Hewlett-Packard and Dell Computer, to see if the previous session's rally can keep going.
Early indications pointed to a higher opening for the Nasdaq market, with Nasdaq-100 futures up more than 1 percent after taking fair value into account. Standard & Poor's futures were up modestly, indicating a higher open for the S&P 500 and Dow Jones industrial average.
The major stock indexes will be hard-pressed to surpass the performance they gave Wednesday. The Dow Jones industrial average starts above the 11,000 mark for the first time this year, at 11,215.92, after a 3.2 percent gain. The Nasdaq composite index is at 2,166.44 following a 3.9 percent jump, and the S&P begins at 1,284.99 after rising 2.9 percent.
Computer and printer maker Hewlett-Packard (HWP: Research, Estimates) late Wednesday reported lower fiscal second-quarter profit that nevertheless topped reduced estimates on Wall Street. The company, a Dow component, also said it is confident it will meet earnings forecasts for its third quarter -- although sales could be lower due to weakness in the U.S. economy.
Hewlett-Packard shares gained $1.26 to $28 in after-hours trading Wednesday after rising $1.34 during the regular session.
Dell Computer (DELL: Research, Estimates) will draw lots of attention as it gets set to report results after the bell. The biggest PC maker is expected to report earnings of 17 cents a share, down from 19 cents a year earlier, according to a consensus of analysts surveyed by First Call. Dell shares rose 89 cents to $25.38 Wednesday.
Adding to early optimism was Ciena (CIEN: Research, Estimates), the maker of fiber-optic network equipment. It reported earnings of 20 cents a share, up from 6 cents a year earlier and surpassing the 16-cent-a-share First Call consensus. Ciena shares rose $4.65 to $64.55 in before-hours trading Thursday after a $3.46 gain Wednesday.
Asian markets closed higher Thursday, reacting to the U.S. rally whose afterglow also affected European markets in midday trading.
Treasury prices rose in early trading, cutting yields. The 10-year note yield slid to 5.43 percent from 5.47 percent, while the 30-year bond yield dipped to 5.82 percent from 5.87 percent late Wednesday.
The dollar gained against the euro but lost ground versus the yen. Brent oil futures slipped 20 cents to $28.23 a barrel.
No. 4 U.S. retailer Kmart (KM: Research, Estimates) reported a fiscal first-quarter loss that was narrower than expected. Kmart shares gained 3 cents Wednesday to $10.13.
Foodmaker Hormel Foods (HRL: Research, Estimates) reported fiscal second-quarter earnings in line with expectations. The company's shares rose 27 cents to $20.70 in Wednesday trading.
Other companies due to report after the bell include Agilent Technologies (A: Research, Estimates), the maker of computer equipment for businesses, and retailer Gap (GPS: Research, Estimates).
On the economic front, the weekly jobless claims report is expected to show an increase from the prior week. But economists surveyed by Briefing.com don't expect the total to surpass the key 400,000 level – they see a rise to 395,000 from 384,000.
Also due Thursday, after the markets open, is the April Index of Leading Indicators from the Conference Board. It's expected to show a 0.1 percent increase, compared with the 0.3 percent decline in March. 
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