European markets mixed
|
|
October 5, 2001: 8:14 a.m. ET
Technology stocks fall on concerns companies will miss profit targets
|
LONDON (CNN) - Europe's major bourses were mixed in choppy trade on Friday, after chipmaker AMD and PC maker Gateway issued profit warnings.
London's FTSE 100 rose 1.1 percent to 5,072.3 and the CAC 40 blue chip index in Paris slipped 0.3 percent to reach 4,542.09, while Frankfurt's electronically traded Xetra Dax dipped 0.2 percent to 4,542.41.
PC maker Gateway (GTW: Research, Estimates) warned that its third-quarter loss would be much wider than previously expected, pointing to a sharp decline in demand in the wake of the terrorist attacks on the U.S.
Chipmaker Advanced Micro Devices (AMD: Research, Estimates) warned on Friday that a sharp drop in personal computer chip prices would result in a much larger than expected third-quarter loss.
Europe's biggest chipmaker STMicroelectronics (PSTM) fell 1.9 percent, the region's No. 2 Infineon Technologies {FSE:FIFX] lost 1.5 percent and the third-biggest Philips Electronics dipped 1.6 percent.
Europe's biggest chip designer ARM Holdings (ARM) fell 1 percent. German communication equipment maker Siemens (FSIE) dropped 1.9 percent.
Italian carmaker Fiat said on Thursday it would miss its 2001 operating profit and debt reduction targets because consumer sentiment had been depressed by the U.S. attacks. Fiat shares dropped 6.9 percent in Milan.
DaimlerChrysler (FDCX), the world's third-biggest automaker, fell 1.1 percent, German luxury car maker BMW (FBMW) declined 0.7 percent, France's Renault (PRNO) lost 1.4 percent and Peugeot (PUG) slipped 2.1 percent.
The battered airline industry continued its downward desent after a Sibir Airlines Tu-154 with 77 people on board en route from Israel to Siberia crashed into the Black Sea, raising concerns that terrorist may have struck again. The cause of the crash is not known.
British Airways (BAY), Europe's biggest airline, lost 2.2 percent in London.
Heavyweight drug, telecom and bankings stocks rose. GlaxoSmithKline (GSK), the world's second-largest drug company, rose 2.2 percent rival AstraZeneca (AZN) climed 1.1 percent.
Vodafone Group (VOD), the world's biggest mobile phone company, rose 1.2 percent after the Wall Street Journal reported the company is expected to report first-half earnings up more than 40 percent, beating analyst forecasts and its own recent expectations.
The AEX index in Amsterdam fell 0.4 and the SMI in Zurich rose 0.1 percent, while Milan's MIB30 index dipped 0.6 percent.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, rose 0.3 percent.
In the U.S. on Thursday, technology stocks rallied after Dell Computer said it would meet profit targets, but blue chip stocks declined on concerns the economy was already in recession. The tech-laden Nasdaq composite index rose 1 percent to 1,597.31, while the Dow Jones industrial average lost 62.9 points, or 0.7 percent, to 9,060.88.
Wall Street was expected to open little changed later on Friday. S&P 500 index futures slipped 1.5 points to 1,073.0 on the Globex trading system, while fair value, a measure that takes account of interest costs and dividend payments, was calculated at 1,072.5.
|
|
|
|
|
|