RealTime IT News

Stocks Rebound Slightly On Greenspan Testimony

Stocks rebounded slightly Tuesday morning on Fed Chairman Alan Greenspan's repetition of last week's Senate testimony in the House. Unlike last week, however, Greenspan took a more neutral view of the economy. Shares of Akamai dropped despite better than expected earnings.

The ISDEX gained 4 to 768 and the Nasdaq rose 9 to 3990. The S&P added 4 to 1469, and the Dow tacked on 19 to 10,704. Volume rose to 435 million shares on the NYSE and 690 million on the Nasdaq. Breadth was even on the NYSE, while declining issues led 20 to 14 on the Nasdaq. July's Consumer Confidence reading came in stronger than expected. The major economic reports for the week are the second-quarter Employment Cost Index on Thursday and the GDP on Friday. eBay and Vignette are among the companies reporting earnings tonight, and Amazon.com reports after the close tomorrow. For earnings reports, visit our earnings calendar and reported earnings.

Akamai Technologies fell 16 7/16 to 91 7/16 despite reporting a second-quarter loss of 50 cents a share, 7 cents better than estimates. There appeared to be some concern about a 57-million share lockup expiring today based on a Barron's report, but Briefing.com said the report was erroneous. A 2.8 million-share lockup will expire on Aug. 1, and 58 million on Sept. 13. Merrill Lynch began coverage with a near-term Accumulate/long-term Buy rating.

GoTo.com reported a second-quarter loss of 23 cents, 8 cents better than estimates. But the stock fell 2 7/8 to 17 1/4 after Donaldson, Lufkin and Jenrette lowered its price target to $80 from $160.

FreeMarkets rose 4 15/16 to 58 7/16 after the company reported a second-quarter loss of 34 cents a share, 7 cents better than estimates. The company's revenue number of $19.4 million was well ahead of estimates, and Merrill Lynch raised its rating from Accumulate to Buy.

ValueClick soared 2 5/16 to 12 9/16 after reporting second-quarter earnings of 6 cents a share, a nickel better than estimates. But MP3.com , which also beat estimates by a nickel with a second quarter loss of 8 cents a share, fell 1 1/2 to 10 9/16.

Cobalt Group lost 17/64 to 6 9/16 after reporting a second quarter loss of 27 cents a share, 9 cents better than estimates. Net Perceptions beat estimates by a penny with a second-quarter loss of 16 cents a share and was unchanged at 15 1/8.

FreeShop.com lost 9/32 to 5 after missing estimates by a penny with a second-quarter loss of 25 cents a share. Onvia.com beat estimates by 11 cents with a loss of 48 cents a share, but the stock fell 2 1/8 to 8 7/8.

Shares of Red Hat lost 3 1/8 to 20 5/8 on news that CEO Harold Covert has resigned. Amazon.com lost 4 3/4 to 34 on rumors that its COO may be leaving.

VeriSign fell 8 1/8 to 176 1/2 despite bullish comments from Morgan Stanley Dean Witter analyst Mary Meeker. The company reports earnings after the close tomorrow.

PlanetRX.com soared 1 7/32 to 2 1/8 on news that the company has received $50 million in financing.

Ariba gained 5 3/4 to 122 1/2 on news of an alliance with IBM and Cisco.

Navisite , up 2 1/8 to 42 1/8, and Data Return , up 2 7/8 to 30 1/2, gained on positive comments from Merrill Lynch. Merrill predicted 40% growth for the Internet infrastructure space for the next decade.

The IPO of Web hosti