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Wall St. left to devices
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May 18, 2001: 6:23 a.m. ET
Dell, Palm results and possible Lucent deal put techs in spotlight
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NEW YORK (CNNfn) - Warnings from makers of big and little computers, as well as talk of a possible acquisition of telecom equipment maker Lucent Technologies, could set the tone for Wall Street trading Friday.
Early indications pointed to a positive start for the markets. After fair value was considered, Nasdaq-100 futures rose substantially, indicating a higher opening for the Nasdaq market. Standard & Poor's futures rose modestly, a hint that the S&P 500 and Dow Jones industrial average will begin the day on the up side.
Dell Computer (DELL: Research, Estimates) reported fiscal first-quarter earnings of 17 cents a share, in line with estimates and with the results a year earlier. The company also warned that sales will decline in the current quarter, and Dell shares fell $1.02 to $24.86 in after-hours trading Thursday following a 50-cent gain in regular hours.
Handheld computer maker Palm (PALM: Research, Estimates) warned that fourth-quarter revenue would be in the $140 million-$160 million range, about half what was expected, and that it will take a $300 million charge for excess inventory.
The company also delayed the launch of its latest model and terminated the acquisition of software maker Extended Systems (XTND: Research, Estimates). Palm shares rose 6 cents to $7.05 Thursday, while Extended Systems added 15 cents to $9.94.
Lucent Technologies (LU: Research, Estimates) , the financially troubled telecom equipment maker, is reported to be in talks to be acquired by French rival Alcatel (ALA: Research, Estimates) . The New York Times said Friday that there's a 50-50 chance the $40 billion all-stock deal will be completed. Lucent shares closed Thursday at $9.81, up 8 cents, while American depositary shares of Alcatel declined 27 cents to $32.04.
The Nasdaq composite index begins at 2,193.68 following Thursday's 1.3 percent advance. The Dow Jones industrial average stands at 11,248.58 after a 32-point gain, while the S&P 500 is at 1,288.49 after rising 3.50.
Asian markets closed mostly lower Friday, while European markets were mixed in early trading.
Treasury prices rose, cutting yields. The 10-year note yield slipped to 5.41 percent from 5.44 percent late Thursday, while the 30-year bond yield dipped to 5.76 percent from 5.80 percent.
The dollar gained against both the yen and euro. Brent oil futures rose 19 cents to $28.65 a barrel in London.
Clothing retailer Gap (GPS: Research, Estimates) reported fiscal first-quarter earnings of 13 cents a share that topped lowered estimates by a penny, but were less than half the 27 cents posted a year earlier. Gap shares gained 75 cents to $34.90 Thursday.
Before the markets open, the government releases the March report on the trade balance. It is expected to rise to about $29 billion from $27 billion in February, according to a survey of economists by Briefing.com. 
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