Wall Street Seen Up; Microsoft Eyed
Enviado: 2/7/2003 12:33LONDON (Reuters) - Wall Street looked set to head higher on Wednesday in light volume ahead of Friday's Independence Day holiday, although shares in software giant Microsoft (NasdaqNMMSFTNews) may sparkle following a positive broker note.
By 1030 GMT, U.S. stock index futures were up between 0.3 and 0.6 percent, following a late rally on Tuesday.
Dealers said trading was likely to remain volatile in this shortened holiday week.
"The U.S. markets staged a powerful reversal despite poor economic figures. The trading days between quarter end and the 4th July holiday are traditionally very volatile and yesterday was a prime example," said Tom Hougaard at City Index.
The technology sector may see some early action after U.S. investment bank Merrill Lynch upgraded software giant Microsoft to "buy" from "neutral."
Shares in Microsoft rose to $26.6 on Instinet from a close of $26.15 on Tuesday.
Merrill said it was targeting $30 for Microsoft shares and added the stock to its "Focus One List" of top stock picks, along with Wal-Mart Stores (NYSEWMTNews).
The bitter merger battle between Oracle (NasdaqNMORCLNews) and PeopleSoft (NasdaqNMPSFTNews) may nab the spotlight. Oracle said late on Tuesday its challenge to PeopleSoft Inc.'s (NasdaqNMPSFTNews) poison pill defense against its $6.2 billion hostile takeover bid had been postponed indefinitely.
PeopleSoft and J.D. Edwards & Co. (NasdaqNMJDECNews), who are sprinting to close their friendly merger, said the move could clear the way for their own $1.77 billion deal to proceed.
PeopleSoft shares rose to $18.20 in Frankfurt from a close of $17.79 while shares in Oracle edged down to $12.18 from a close of $12.33 on Tuesday.
Market players said U.S. shares were likely trade sideways in the short term, with the focus on upcoming corporate results as investors await more evidence of an expected economic recovery.
"Buying in the first half of the year has largely been based on belief of a recovery in the second half. If we don't see real proof of this recovery, people may start to think we have come too far too soon," said Tim Hogman at Cantor Index.
Factory orders for May, seen unchanged month-on-month, are due at 1400 GMT, but crucial unemployment data on Thursday may help set the tone ahead of the holiday.
In other corporate news, the Wall Street Journal reported AT&T Wireless (NYSEAWENews) will shed around three percent of its workforce this year, or about 1,000 jobs, as part of an ongoing cost-cutting program.
Shares in orthopedic maker device Biomet (NasdaqNMBMETNews) may rise after it reported improved profits on Wednesday.
($1=.8662 Euro)
Abraços
Figas
By 1030 GMT, U.S. stock index futures were up between 0.3 and 0.6 percent, following a late rally on Tuesday.
Dealers said trading was likely to remain volatile in this shortened holiday week.
"The U.S. markets staged a powerful reversal despite poor economic figures. The trading days between quarter end and the 4th July holiday are traditionally very volatile and yesterday was a prime example," said Tom Hougaard at City Index.
The technology sector may see some early action after U.S. investment bank Merrill Lynch upgraded software giant Microsoft to "buy" from "neutral."
Shares in Microsoft rose to $26.6 on Instinet from a close of $26.15 on Tuesday.
Merrill said it was targeting $30 for Microsoft shares and added the stock to its "Focus One List" of top stock picks, along with Wal-Mart Stores (NYSEWMTNews).
The bitter merger battle between Oracle (NasdaqNMORCLNews) and PeopleSoft (NasdaqNMPSFTNews) may nab the spotlight. Oracle said late on Tuesday its challenge to PeopleSoft Inc.'s (NasdaqNMPSFTNews) poison pill defense against its $6.2 billion hostile takeover bid had been postponed indefinitely.
PeopleSoft and J.D. Edwards & Co. (NasdaqNMJDECNews), who are sprinting to close their friendly merger, said the move could clear the way for their own $1.77 billion deal to proceed.
PeopleSoft shares rose to $18.20 in Frankfurt from a close of $17.79 while shares in Oracle edged down to $12.18 from a close of $12.33 on Tuesday.
Market players said U.S. shares were likely trade sideways in the short term, with the focus on upcoming corporate results as investors await more evidence of an expected economic recovery.
"Buying in the first half of the year has largely been based on belief of a recovery in the second half. If we don't see real proof of this recovery, people may start to think we have come too far too soon," said Tim Hogman at Cantor Index.
Factory orders for May, seen unchanged month-on-month, are due at 1400 GMT, but crucial unemployment data on Thursday may help set the tone ahead of the holiday.
In other corporate news, the Wall Street Journal reported AT&T Wireless (NYSEAWENews) will shed around three percent of its workforce this year, or about 1,000 jobs, as part of an ongoing cost-cutting program.
Shares in orthopedic maker device Biomet (NasdaqNMBMETNews) may rise after it reported improved profits on Wednesday.
($1=.8662 Euro)
Abraços
Figas