Monday November 26, 8:14 am Eastern Time
Stocks Expected to Open Flat
NEW YORK (Reuters) - Stocks are seen opening flat on Monday amid more progress in the U.S.-led campaign in Afghanistan and upbeat corporate news from No. 1 computer chip maker Intel Corp. (NasdaqNM:INTC - news).
Technology stocks are expected to be helped by a rally in European counterparts after Credit Swiss First Boston upgraded Taiwan's personal computer sector, saying the worst was over for global PC demand.
``It looks slightly up on the Intel news ... and tech stocks are up overseas, after CSFB upgraded Taiwan's personal computer sector, I think that's going to spill over,'' said Keith Gertsen, head of Nasdaq trading at Deutsche Banc Alex. Brown.
Intel has devised a new structure for transistors -- the tiny switches that make up semiconductors -- in a development it said could lead to microprocessors that run at blazing speeds and consume far less power than conventional ones. Intel shares rose to $31.20 in pre-open trade vs. a close of $31.06 on Friday on the Nasdaq.
``Also, the Northern Alliance is in control of Kunduz and that's also going to be a psychological positive,'' Gertsen added.
The besieged city of Kunduz in Afghanistan fell to Northern Alliance forces after days of fighting and chaotic surrender negotiations. U.S. troops and local tribesmen seized territory around Kandahar on Monday for a final push on the militant Taliban's last stronghold and the rugged hills where Osama bin Laden, the chief suspect in the Sept. 11 attacks in the United States, is believed holed up.
Equity index futures suggested stocks were headed for a flat to higher open. December futures for the S&P 500 index added 1 point to 1,154, while futures for the Nasdaq 100 gained 5.50 points to 1,585, off earlier highs that took them about 14 points up. Futures for the Dow Jones industrials were off 8 points at 9,974.
The indicative Dow Jones industrial average (.DJII), which is based on prices of Dow stocks trading in Germany's Deutsche Boerse U.S. market segment, rose 44.27 points, or 0.45 percent, to 9,988.67.
An economic report is expected shortly by a National Bureau of Economic Research panel saying the United States is officially in recession, The Wall Street Journal said in its electronic edition on Monday. Such news could add urgency to Washington's debate over a stimulus package to help boost the economy.
Hopes for a rebound in the economy and corporate profits sometime next year have helped drive the market higher in recent weeks, pulling it off three-year lows hit after the Sept. 11 attacks on the United States. The benchmark Standard & Poor's 500 index (.SPX) has closed up for seven of the past nine weeks.
On Friday, stocks gained during a holiday-shortened trading session as traders snapped up retail stocks, heartened by signs that the year-end shopping season has kicked off to a strong start.
The Dow Jones industrial average (.DJI) rose 125.03 points, or 1.27 percent, to 9,959.71, while the broader S&P 500 gained 13.31 points, or 1.17 percent, to 1,150.34. The tech-laced Nasdaq Composite Index (.IXIC) advanced 28.15 points, or 1.50 percent, to 1,903.20.
Friday's trading was light with many portfolio managers taking the day off after the Thanksgiving holiday on Thursday. The U.S. stock market closed early at 1 p.m. EST (1800 GMT).
In focus in Monday's session, will be the stocks of retailers. U.S. consumers mobbed shopping malls on Friday, traditionally the busiest shopping day of the year, a sign that shoppers were willing to spend.
Outside the United States, telecom equipment makers led a broad-market advance in European shares by mid-morning, but energy stocks fell as crude retreated amid doubts about the effectiveness of a supply cut deal.
The Eurotop 300 index (.FTEU3) was up 0.9 percent at 1,268 points, matching levels of early September. Advancing issues outpaced decliners by nearly four-to-one.
Europe's technology sector was up 3 percent and, if the gains are held, was headed for its best close since early July. Ericsson (NasdaqNM:ERICY - news), Alcatel (NYSE:ALA - news), and Nokia (NYSE:NOK - news) led the charge, each up between 3 and 4 percent.
Techs were partly helped by strong gains in Taiwan chip shares after Nasdaq's 1.5 percent rise on Friday, and Credit Suisse First Boston on Monday upgrading Taiwan's personal computer sector, saying the worst was over for global PC demand.
Tokyo's Nikkei average surged to a new post-attack high on Monday, ending at its best level in three months as a firmer Wall Street and softer yen ignited active buying in shares of Canon Inc. and other major exporters.
Market players also took heart from signs that banks had stepped up efforts to restructure and clean up their massive bad loans, which have undermined investor confidence in Japan for years.
The benchmark Nikkei average (.N225) jumped 3.44 percent, or 367.48 points, to 11,064.30, surpassing an earlier post-attack intraday high of 11,052.01 marked on Oct. 25 and closing at its highest level since Aug. 28.