US stocks are expected to have a weak start today as the corporate profit warnings echoe through Wall Street and keep buyers sidelined a day after a nasty sell-off in the market.
Another raft of high-tech firms - including computer equipment distributor Tech Data, storage network parts maker JNI and Internet security services firm SafeNet - threatened to hobble the market after they cut quarterly forecasts amid tepid demand.
The dour forecasts come a day after telecom parts maker Nortel and handheld computer maker Palm helped push the Nasdaq down almost 6 per cent with their warnings.
The Nasdaq 100 futures for June lost 19 points to 1,592, suggesting a fall of about 1.2 per cent at the open. The S&P 500 futures shed 1.50 points to 1,157.90. Dow Jones industrials futures dropped 53 points to 9,770.
Federal Reserve officials said late yesterday the slumping US economy is poised for recovery in the second half of this year because businesses are reducing their stockpiles of unsold goods.
But the economy remains weak, they said, signaling the central bank remains ready to further cut short-term interest rates to spur growth.