RealTime IT News

Microsoft Warns, Investors Yawn

Microsoft finished the day up on Friday despite warning for 2002 and 2003.

The ISDEX http://www.wsrn.com/apps/ISDEX/ was unchanged at 147, and the Nasdaq slipped 5 to 1796. The S&P 500 was up less than a point to 1125, and the Dow rose 51 to 10,257. Volume declined to 1.19 billion shares on the NYSE, and 1.67 billion on the Nasdaq. Advancers led 17 to 13 on the NYSE, but decliners led 18 to 16 on the Nasdaq.

After the close, WorldCom (NASDAQ:WCOM) fell sharply on a warning.

During the day, Microsoft (NASDAQ:MSFT) rose 1.5%, up 5 points from its after hours low on Thursday despite missing revenue estimates, guiding second-quarter revenue estimates 8-9% lower, and lowering 2003 guidance too. Investors focused on better than expected PC demand and Windows XP sales, but it will be interesting to see if buyers follow through next week; the stock had upside fuel today from 63,700 $55 puts that expired out of the money, and $58-$59 is tough resistance.

NVIDIA (NASDAQ:NVDA) fell 7% on weak Xbox sales.

eBay (NASDAQ:EBAY) rose 2.6% after beating earnings estimates and matching revenue estimates.

Emulex (NASDAQ:EMLX), up 1%, NetIQ (NASDAQ:NTIQ), up 11%, Scientific Atlanta (NYSE:SFA), up 6%, UT Starcom (NASDAQ:UTSI), down fractionally, Compaq (NYSE:CPQ), up 3%, and Advanced Fibre (NASDAQ:AFCI), down 2%, all beat estimates.

Sun (NASDAQ:SUNW), up 7%, Rational (NASDAQ:RATL), up 1%, and PMC-Sierra (NASDAQ:PMCS), up fractionally, beat earnings estimates but missed on revenues. Gateway (NYSE:GTW), up 7%, and Nortel (NYSE:NT), down 2%, met estimates. SonicWall (NASDAQ:SNWL), off 6%, missed.

Some technical comments on the market: Note: To see the charts in the text email newsletter, click on the internetstockreport.com story link at the top of the newsletter.

The Dow (first chart) is set up very nicely going into next week. It won't take much upside at the open on Monday to break the index's downtrend; 10,260 might be enough. To the downside, the 10,050-10,150 area has provided strong support. For the S&P (second chart), 1112-1115 is critical support, 1128 is first resistance, and 1132-1134 is very tough resistance. For the Nasdaq (third chart), 1780 looks like very good support, 1816-1820 is first resistance, and 1850-1860 is tough resistance.

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Special report: For a free introduction to technical chart patterns, visit http://www.internetstockreport.com/guest/article/0,1785,2571_500051,00.html.