RealTime IT News

Nets, Techs Gain 3%

Internet and technology shares rebounded from last week's sharp selling to post 3% gains on Monday.

The ISDEX gained 23 to 717, closing at its high for the day. The Nasdaq rose 103 to 3766, also finishing at its high of the day. But blue chips slipped at the close. The S&P 500 finished up 10 to 1430, and the Dow rose a meager 10 points to 10,521. Volume dropped to 930 million shares on the NYSE and 1.5 billion on the Nasdaq. Advancers led by 17 to 11 on the NYSE and 23 to 17 on the Nasdaq. The big economic report for the week is Friday's July employment data. For earnings reports, visit our earnings calendar and reported earnings.

The parade of earnings reports continued after the close on Monday. Expedia blew away estimates with a fourth-quarter loss of 30 cents a share, 17 cents better than estimates. Shares rose to 18 1/2 after hours after rising 1 1/16 to 17 1/8 in regular trading. internet.com , parent of this Web site, beat estimates by 3 cents with second-quarter earnings of 3 cents a share. The stock rose to 20 after hours after closing down 2 at 19.

Radware beat estimates by 3 cents with 7-cent earnings. The stock rose slightly after gaining 4 1/16 to 32 1/16 ahead of the report. Digex beat estimates by 2 cents with a 54-cent loss. The stock slipped to 62 after closing down 4 7/8 to 63 1/16. Liquid Audio beat estimates by a nickel with a 35-cent loss, but EDGAR Online missed estimates by a penny with a second-quarter loss of 15 cents.

During regular trading on Monday, drkoop.com slipped 1/4 to 1 1/8 on news that merger talks with closely-held MilleniumHealth had ended.

Juno Online soared 1 1/4 to 9 1/4, but down from an intraday high of 11 1/2, on news of a broadband access deal with Time Warner .

Akamai gained 13/16 to 78 3/4 on news that it will extend its alliance with IBM .

Priceline.com announced that it will offer airline and hotel reservations in Japan. But the stock slipped 7/8 to 23 5/8 after trading as high as 26 on the news.

DoubleClick also slipped despite good news, declining 7/8 to 36 despite a Buy rating from Donaldson, Lufkin and Jenrette. The stock gave back some of its gains from Friday's run-up on news of an agreement with the Federal Trade Commission on consumer privacy issues.

Cisco Systems gained 2 25/32 to 65 19/32 on news of a DSL deal with Cable & Wireless HKT . Cisco reports earnings next Tuesday (August 8).

DSL.net fell 1 5/32 to 4 29/32 on analyst downgrades after the company reported revenues that were below estimates.

Earthlink recouped 1 to 12 1/2 after CS First Boston defended the company, which was downgraded by Morgan Stanley Dean Witter on Friday.

S1 gained 4 1/4 to 25 3/8 ahead of its earnings, due out after the close tomorrow.

QXL.com gained 3/16 to 5 5/16 on news that it will become Lycos' auction partner in several European countries.

EDGAR Online added 1/32 to 3 1/4 on news of an alliance with America Online .

Some technical comments on the market: A nice rally today in techs and Nets today, but it came on declining volume. Given the technical damage done to the market last week, the weakness of the rally today is not surprising. The first test will come tomorrow: the indexes have been in a pattern of two days down and one day up for two weeks now. Will the market continue that pattern with a down day tomorrow, or break it with an up day? The Nasdaq