RealTime IT News

Stocks Down On Iraq-Kuwait Tension

Stocks had a tough time trying to stay above water Thursday morning, as news of renewed tension between Iraq and Kuwait caused a spike in oil prices. Good earnings, this time from Applied Materials, again failed to impress tech investors.

The ISDEX fell 8 to 733, and the Nasdaq lost 49 to 3803. The S&P 500 lost 6 to 1466, but the Dow rose 6 to 10,912. Volume declined to 445 million shares on the NYSE and 583 million on the Nasdaq. Decliners led by 13 to 12 on the NYSE and 20 to 14 on the Nasdaq. Internet Capital Group and Dell Computer will report earnings tonight. For earnings reports, visit our earnings calendar and reported earnings.

News that Amazon.com had formed an alliance with Toysrus.com did little to boost Amazon's stocks, off 3/8 to 30 1/2. The two will launch a co-branded toy and video games store this fall, and a baby products store next year.

Phone.com continued to draw accolades for its merger with Software.com and new CEO Donald Listwin of Cisco, rising 9 15/16 to 101 1/8, above 99 1/2 resistance. For more on the deal, click here. But Cisco continued to give back after failing to penetrate 70 resistance yesterday, losing another 3 3/16 to 64 5/8.

Former highflyer K-Tel lost 25/32 to 1/32 on news that it will be delisted from the Nasdaq on August 14. eFax.com lost 5 cents to 37.5 cents on news that it will also be delisted. drkoop.com , which analysts said is also in danger of being delisted for failing to meet the $1 minimum share price, fell 1/8 to 11/16.

InterVoice gained 1 to 10 after announcing that it is evaluating what to do with warrants it owns to purchase 741,237 shares of recent IPO SpeechWorks at an exercise price of $2.05.

24/7 Media slipped 1/2 to 10 3/4 after beating estimates by a penny with a 49-cent loss. High Speed Access soared 1 15/32 to 6 15/32 after beating estimates by 12 cents with a 49 cent loss and announcing a $75 million investment from Paul Allen's Vulcan Ventures and Charter Communications. Healtheon/WebMD added 1/8 to 12 after beating estimates by 6 cents with a 28-cent loss. Bluefly added 1/16 to 2 5/8 after beating estimates by 27 cents with a $1.12 loss. NetZero rose 13/32 to 5 17/32 after beating estimates by a nickel with a 25-cent loss.

Vignette gained 2 1/4 to 38 1/8 after announcing an alliance with Sun Microsystems . Sapient continued to give back after a strong run-up, losing 11 to 126 1/2 after announcing the purchase of privately-held Human Code for 755,000 shares.

Sohu.com gained 17/32 to 6 7/32 on a Donaldson, Lufkin & Jenrette Buy rating and $11 price target.

B2B stocks managed to show some strength. Commerce One gained 2 3/16 to 49 5/8, but has been unable to close above its previous 52-53 breakout point. Ariba traded below its 135 breakout point, but recovered to gain 6 3/16 to 141 1/2.

Some technical comments on the market: About the only index showing any strength here is the Dow, which would provide a real positive for the whole market if it could close above 11,000, the upper boundary of its bearish diamond pattern. So far, the index has shown strong support at 10,900, and 10,850 is the next support below that. The lower boundar