Microsoft shares dip on speculations of profit warning

NEW YORK: Shares of IT giant Microsoft Corp. slipped during pre-open trading

in Nasdaq on Friday, amid mounting speculation by traders that the world's

largest software company was set to issue a profit warning.

Though the company declined to comment, its shares fell to $67.15 on the

Instinet electronic brokerage system from Thursday's close of $68.90 as the talk

swirled through the market.

Stock futures were also lower, hit by warnings from other high-tech

heavyweights such as Nortel Networks and JDS Uniphase Corp's. Standard &

Poor's 500 September futures were down 3.70 points at 1,219.30, while Nasdaq 100

September futures were off 24.00 points at 1,687.00.

Nortel, in a shock warning to financial markets, announced new job cuts and a

$2 billion financing deal and predicted a big second quarter loss. In New York

pre-market trading Nortel was trading lower at $8.95 from Thursday's close of

$10.60.

JDS also fell ahead of the opening bell after the world's largest supplier of

fiber-optic components said late on Thursday that it expects to post a loss on

lower-than-expected revenues as the ongoing telecom spending slump dents its

results.

JDS fell to $11.50+ from its previous close of $13.81. The company, which

sells equipment used to boost the speed and capacity of fiber-optic networks,

cut its sales forecast to $600 million for the quarter ending June 30 from its

previous estimate of $700 million.

(C) Reuters Limited 2001.