RealTime IT News

Stocks Gain On Housing Data

Stocks rose Wednesday morning, as investors interpreted a weaker-than-expected report on new home sales as a sign that the economy is slowing.

The ISDEX gained 14 to 707, and the Nasdaq tacked on 55 to 3740. The S&P 500 added 10 to 1448 and the Dow climbed 75 to 10,682. Volume rose to 450 million shares on the NYSE and 680 million on the Nasdaq. Advancers led 13 to 11 on the NYSE and 18 to 16 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.

Sapient was the day's big winner after reporting second-quarter earnings of 23 cents a share, 3 cents better than estimates, and announcing a 2-for-1 stock split. The stock rocketed 21 7/8 to 125 3/4.

Sequoia Software gained 1 1/8 to 11 5/8 after beating estimates by 6 cents with a 26-cent loss.

GoAmerica beat estimates by a penny with a 22-cent loss and announced an alliance with Dell Computer . The stock gained 3/4 to 11 3/8.

Click Commerce reported a loss of 1 cent a share, 4 cents better than estimates. But the stock fell 3 11/16 to 26. Salon.com beat estimates by a nickel with a 36-cent loss, and the stock added 1/32 to 1 17/32. Viador beat estimates by 3 cents with a 29-cent loss, but the stock slipped 11/16 to 10 3/8.

SciQuest.com gained 5/32 to 10 1/8 after reporting a loss of 35 cents a share, 3 cents better than estimates.

Egghead.com was unchanged at 2 3/8 despite warning that third-quarter revenues will be below the second quarter.

Juno continued to fall a day after the company lowered forward guidance. Chase H&Q cut the stock to Market Perform from Buy. Juno fell 1 1/2 to 7 3/4.

S1 continued to decline a day after missing earnings estimates, falling 2 9/16 to 15 9/16 on downgrades from Legg Mason, ABN Amro and USB Piper Jaffray.

MicroStrategy gained 2 5/16 to 22 5/8 on news of a new Chief Financial Officer.

Interwoven climbed 2 3/16 to 66 15/16 on news that Target Stores has selected the company's content management platform to power Target.com.

SonicWall gained 3 3/16 to 84 1/8 on news of a 2-for-1 stock split.

SpeechWorks bolted 8 5/8 to 65 3/8 on its second day of trading. For more on the IPO, click here.

Commerce One found support right at its uptrend line at 40 and bounced 2 5/8 to 43 5/16. Vignette , which broke its uptrend last week, gained 4 5/8 to 33 11/16 on news of an alliance with Arthur Andersen.

Some technical comments on the market: The Dow looks pretty good here, having broken out of an inverse head and shoulders pattern in the 60-minute chart this morning. But the Nasdaq and S&P 500 continue to look like they are forming bear flags or pennants here, potentially signaling that the next big move may be down. This kind of zig-zagging rally, up one day and then down the next, is how these patterns are formed. The Nasdaq has run into resistance at the very bottom of its large consolidation from June and July; an awful lot of money that went into the market the last two months is now under water, giving the index a lot of overhead resistance here. And given the Nasdaq's break of a rising wedge last week, the index has downside potential back to 3042 if it is unable to mount a more impressive advance. Critical support is 3550-3585. To the upside, resistance began around 3750-3766 Monday and is again posing