RealTime IT News

Just Like Old Times For Net Stocks

Internet stocks posted a second straight day of strong gains on Thursday, as the ISDEX closed at its highest level in more than two months.

The ISDEX rose 45 to 799 for a two-day gain of 15%. The Nasdaq gained 74 to 4174. The S&P 500 added 2 to 1495, and the Dow climbed 5 to 10,788. Volume rose to 1.03 billion shares on the NYSE and 1.87 billion on the Nasdaq. Declining issues led slightly on the NYSE for the first time in eight trading days, and led 21 to 19 on the Nasdaq. For earnings reports, visit our earnings calendar and reported earnings. The Producer Price Index for June will come out tomorrow. Analysts expect a 0.6% increase in the PPI, but only a 0.1% increase in the core.

After the bell, Sonus Networks and Webvan missed earnings estimates, while RSA Security , Juniper Networks and Stamps.com beat estimates. Sonus, down 11 11/16 to 190 1/16 in regular trading, fell to 182 in after-hours trading. Webvan, up 1 7/16 to 9 5/16 in regular trading, fell to 8 1/2 after hours. RSA rose 4 11/16 to 78 3/4 in regular trading and was unchanged after hours. Juniper rose 17 3/8 to 169 5/16 in regular trading and was up slightly after hours. Stamps.com, down 5/32 to 5 7/8 in regular trading, rose to 6 1/4 after hours.

Ariba soared 27 7/8 to 131 3/8 after reporting a third-quarter loss of 5 cents a share after the bell on Wednesday, 3 cents better than expected. But revenues were even better, coming in at $80 million versus estimates of $50 million, and deferred revenues almost doubled to $150 million. Several brokerage firms reiterated Buy ratings, while Prudential and Morgan Stanley Dean Witter upgraded Ariba to Strong Buy. Technical note: Ariba's move completes our objective of 117 after the stock broke out of a rectangle pattern at 83 a month ago.

B2B stocks went along for the ride. Commerce One rose 7 7/8 to 59 3/4, turning back at 60, but breaking out of a three-month symmetrical triangle, with potential upside to 80 or higher. VerticalNet added 3 1/32 to 49 25/32, PurchasePro gained 7 7/8 to 49 1/8, FreeMarkets climbed 8 61/64 to 54 27/32, I2 rose 18 3/8 to 141 9/16, and Ventro bolted 3 39/64 to 24. Yesterday's IPO divine interVenture also rose on the news, up 2 1/2 to 10 5/8. But Open Market was left out of the party, falling 3 5/16 to 8 5/8 on an earnings warning. Neoforma gained 1 7/8 to 8 3/16 on word of collaboration with Cisco .

Redback Networks gained 17 1/8 to 163 5/8 after reporting a second-quarter loss of 5 cents a share, 4 cents better than estimates.

Internet security stocks rose after Salmon Smith Barney initiated coverage of several issues with Buy ratings. RSA Security was rated a Buy, as was Check Point , up 2 15/16 to 234 5/8, and VeriSign , up 15 3/16 to 192 7/8.

Exodus continued to rise on news that GlobalCrossing may sell its web-hosting business to the company, soaring 7 1/4 to 49 3/16. Robertson Stephens upgraded the company to Strong Buy.

RealNetworks bolted 5 3/16 to 51 15/16 on news of an alliance with America Online .

Agency.com soared 5 3/4 to 21 9/16 on bullish comments by Chase H&Q and Goldman Sachs. Both firms expect the company to beat estimates.

Akamai and Inktomi rose on news of alliances with European data communications compa