RealTime IT News

Commerce One Sells Off Despite Beating Estimates

Commerce One fell in after-hours trading on Tuesday despite a stronger-than-expected earnings report. Microsoft, Intel and DoubleClick rose slightly after beating estimates.

Stocks sold off during the day after a stronger than expected increase in the Consumer Price Index for June. The ISDEX fell 26 to 810, and the Nasdaq dropped 97 to 4177. The S&P 500 fell 16 to 1493 and the Dow lost 64 to 10,739. Volume declined to 909 million shares on the NYSE and 1.49 billion on the Nasdaq. Declining issues led 16 to 11 on the NYSE and 24 to 15 on the Nasdaq. The Consumer Price Index showed a 0.6% increase in June; analysts had expected a 0.4% rise. The core came in at 0.2%, in line with estimates. While the increase was mainly due to energy prices, traders nonetheless were bracing for Fed Chairman Alan Greenspan's Senate Banking Committee testimony on Thursday. For earnings reports, visit our earnings calendar and reported earnings.

Commerce One reported a loss of 10 cents a share, 3 cents better than estimates. Revenues rose 1,400% to $62.7 million. The stock rose 2 3/16 to 66 9/16 in regular trading, but fell to 62 after the earnings report. USB Piper Jaffray had rated the company a Strong Buy earlier in the day. Technical note: the stock's recent breakout from a three-month symmetrical triangle remains in effect as long as the stock stays above the breakout point of $52.

DoubleClick fell 2 1/4 to 35 1/4, but rose to 36 after reporting a second-quarter loss of 3 cents a share, 2 cents better than estimates. DoubleClick has been plagued for weeks by concerns about a decline in Internet advertising, but Morgan Stanley Dean Witter analyst Mary Meeker told CNBC earlier in the day that she expects Internet advertising to double or triple for several more years.

i2 Technologies , up 3 1/8 to 139 in regular trading, rose to 142 after reporting earnings of 10 cents a share, 2 cents better than estimates. RealNetworks rose 2 to 58 in regular trading, but slipped to 55 after hours, after reporting earnings of 6 cents a share, a penny better than expectations.

Traders were in a sell-on-the-news mood during Tuesday's regular trading session. Go2Net posted earnings after the bell on Monday of 22 cents a share, seven cents better than estimates and up more than 200% from a year ago. But the stock, which rose as high as 64 in after-hours trading on Monday, fell 6 7/8 to 51 1/8. WebTrends reported earnings of 7 cents a share, a penny better than expected, but fell 5 11/32 to 37 5/32. ISS Group also declined on better-than-expected numbers, falling 16 5/8 to 90 3/8. Traders were apparently disappointed that some of the company's managed services products won't be rolled out until the fourth quarter or early next year. DSL supplier Copper Mountain fell 29 15/16 to 93 3/4 despite beating estimates. The stock had run up in advance of earnings.

But Interwoven added 1 7/16 to 71 15/16 after posting a second-quarter loss of 2 cents a share, 3 cents better than expected. And iPrint.com soared 1 7/16 to 7 11/16 after announcing a 900% increase in second-quarter sales.

Digital Island also beat estimates, but fell 6 11/16 to 37 15/16 on news that it will acquire SoftAware Networks for $450 million in cash and stock. Dain Rauscher Wessels downgraded the stock to Buy from Strong Buy on concern that EBITDA losses will continue to rise on the acquisition.

DLJ Direct sent online brokers lower after missing earnings estimates. DLJ declined 13/16 to 7 3/4, E*Trade fell 1 3/8 to 17 3/4, and Ameritrade was off 5/8 t