NEW YORK (CNN/Money) - A reported downgrade of integrated circuit maker Xicor could set the tone for technology stocks when U.S. markets open Monday.

Stock futures were mixed in early trading, but the Nasdaq-100 futures were negative after erasing gains.

A report that Soundview Technologies downgraded integrated circuit maker Xicor (XICO: up $0.15 to $9.25, Research, Estimates) to "hold" from "buy" weakened the tech outlook. The downgrade, which says the company won't see revenue growth until 2003, follows Friday's announcement that Xicor revised its first-quarter outlook to a loss of between 4 cents and 6 cents a share. Analysts have been looking for a loss of 4 cents. Shares of the stock lost $1.01 to $8.24 in before-hours trade Monday.

Two other analyst reports were positive to key tech issues.

Cisco Systems (CSCO: Research, Estimates) should benefit from stronger information technology spending in March, Lehman Brothers said. The firm maintained its strong buy rating and $23 price target. Shares of the stock gained 39 cents to $16.96 in pre-hours trade.

Salomon Smith Barney lifted its price targets on a number of semiconductor equipment makers. The firm raised Applied Materials (AMAT: Research, Estimates) to $75 from $48, before its stock split, and KLA-Tencor (KLAC: Research, Estimates) to $78 from $58, among others. Shares of Applied Materials added 46 cents to $51.99 early Monday, while KLA gained 34 cents to $65.60.

U.S. markets closed lower Friday, ending a generally lower week that ended a five-week winning streak for the Dow Jones industrial average. The Dow lost 52.17 points Friday to close the week at 10,427.67. The Nasdaq composite lost 17 points, or just under 1 percent, to end the week at 1,851.39. The Standard & Poor's 500 index dropped 4.89 points to close the week at 1,148.70.

European markets traded higher midday Monday following word of a possible deal in the telecom sector.

Finland's largest telecom operator Sonera, jumped 6 percent after it confirmed Monday it was in merger talks with the region's largest operator Telia of Sweden. Telia shares were up about 5 percent. A link up of the two state-controlled companies would create a carrier with a market capitalization of around $17.2 billion.

Asian markets closed lower, an after effect of the tech slump that hit U.S. markets Friday.

The yield on 10-year bonds was up to 5.41 percent in London trading Monday from 5.39 percent in late Friday trading, while the dollar gained against the yen and was little changed versus the euro. Brent crude oil lost 49 cents to $24.87 in London trading. Increased demand and lower supplies have propelled the price of gas in the last two weeks.

"My guess is we're going to have some positive action after last week's selling," Art Hogan, chief market analyst at Jefferies & Co. told CNNfn's Before Hours. "We're in the last week of the month and the last week of a quarter, so there's some momentum there. If the stream of economic data is as positive as it's been, we're going to see some strength from that."

In the day's economic news, the National Association of Realtors reports existing home sales data after the opening bell Monday. Economists surveyed by Briefing.com forecast that the annual rate will tumble to 5.5 million from 6.04 million in January.

The morning after the 74th annual Academy Awards, shares of a number of companies that distributed some of the winners looked primed to benefit. Units of CNN/Money partner AOL Time Warner (AOL: Research, Estimates) released Lord of the Rings: The Fellowship of the Ring," and "Training Day," while a unit of Vivendi Universal (V: Research, Estimates) distributed "A Beautiful Mind." Shares of AOL lost 15 cents to close at $24.50 Friday. Shares of Vivendi lost 47 cents to $37.85 Friday.

Credit Suisse First Boston upgraded shares of Coca-Cola (KO: Research, Estimates) to a "buy" from a "hold." The shares closed up 85 cents to $51.25 Friday.

An article in Barron's noted that Bristol-Myers Squibb's (BMY: Research, Estimates) diabetes treatment Glucophage faces generic competition and that it has dramatically impacted sales in March. Last week, the company's shares fell sharply after researchers reported disappointing results for its heart drug Vanlev. The stock closed down 50 cents to $40.10 Friday.

J.P. Morgan downgraded shares of fast-food chain McDonald's (MCD: Research, Estimates) to "market perform" from "long-term buy" one session after the company warned that its current quarter results will miss expectations. Shares of McDonald's closed down $1.05 to $27.65.

Dutch bank ABN Amro (ABN: Research, Estimates) has closed its equities and mergers and acquisitions businesses and had cut 550 jobs, due to a lack of ability to compete in the U.S. market. Shares of the stock closed up six cents to $19.26.

Applied Films (AFCO: Research, Estimates), a maker of products used in liquid crystal displays, lowered its third-quarter earnings per share estimates, citing pricing pressure. Shares of the stock gained 60 cents to $27 Friday.

U.S. markets will be closed for the Good Friday-Passover holiday at the end of the week.