US stocks revive amid earnings warnings and rate-cut anticipation; Dow down 66pt

Affected by the earnings warnings by JDS Uniphase, Nortel Network and McDonald¡¦s, investors went on a discarding spree which caused the US stocks to plummet to 10566 pts on Friday, the lowest level since April 24. However, the economic figures released last week reflected a mild inflation, plus the reviving consumers confidence and the expected rate-cut of 0.5% by Fed in the late month, all these favorable sentiments help the US stocks narrow the down-range gradually.

Dow & Jones Industrial Average Index lost 66.49 pts, or 0.62% to close at 10623.64 pts last Friday, with an accumulative down-range of 3.2%. Nasdaq eroded 15.64 pts, or 0.77% to end at 2028.43 pts, and dropped for the sixth straight day last Friday, with an accumulative down-range of more than 8.4%. The week saw the biggest down-range of Nasdaq this year. Standard & Poor¡¦s 500 Index also erased 5.51 pts, or 0.45% to finish at 1214.36 pts.

Major tech stocks still underwent pressure last Friday. Among the decliners, Cisco System (4333) was down 6.14% to close at US$16.65, JDS Uniphase and Ciena lost 9.92% and 10.14% respectively, and Microsoft Corp (4338) diminished 1.28% to end at US$68.02. Conversely, Intel (4335) went up 0.25% against the dismal market to US$27.68, while Oracle gained 1.01% to finish at US$15 before the release of the earnings report. 

US 30-year treasuries yield inched up 0.029% to close at 5.665%.    

European stocks also suffered from the stubborn weakness of US stocks, with UK Financial Times down 29.5 pts, or 0.51% to end at 5723 pts.

German DAX Index shed 116.09 pts, or 1.92% to finish at 5915.18 pts.

London Hong Kong stocks made choppy retreat last Friday, with HSLRI down 16.25 pts over the closing in Hong Kong last Friday to end at 13086.25 pts.

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