RealTime IT News

Amazon Leads Net Stocks Higher

Internet stocks posted strong gains Wednesday on strength in Amazon.com. The broader market traded lower on weakness in drug, retail and oil stocks.

The ISDEX gained 14 to 818, but the Nasdaq slipped 1 to 4081. The S&P 500 lost 7 to 1502, and the Dow fell 84 to 11,130. Volume rose to 385 million shares on the NYSE and 680 million on the Nasdaq. Decliners held a slight lead on both the NYSE and the Nasdaq. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our new after hours trading site.

Amazon.com rose 3 1/16 to 42 11/16 on positive comments from Goldman Sachs, the latest brokerage firm to laud Amazon's move into the French market. Goldman also said it sees some signs of improving execution at Amazon. Technical Note: Amazon.com has broken out of a falling wedge, a bullish sign, and could go as high as $60. However, another retracement to the wedge boundary, possibly as low as $31, is not out of the question. The stock's downtrend appears broken, however.

CS First Boston made a broad bullish call on B2B stocks. Commerce One rose 5 3/4 to 58 3/16, breaking through 55 resistance. i2 gained 5 1/4 to 162 7/8, VerticalNet added 1 1/2 to 55 3/8, PurchasePro soared 7 to 57 3/4, and FreeMarkets gained 2 7/8 to 77, continuing a strong run.

But CS First Boston downgraded the Internet consulting services sector on concern about declining business and seasonal weakness. Viant lost 2 to 14 7/16, Cambridge Technology dropped 1 7/16 to 6 1/4, Rare Medium was off 15/16 to 9 13/16, and Modem Media lost 7/16 to 10 3/4.

S1 lost 1 11/16 to 17 7/8, as investors sold on the news of a contract win from Yahoo . Yahoo continued to struggle despite a CS First Boston Buy rating, adding 1/16 to 121 1/16.

Inktomi rose 4 3/4 to 123 15/16 on Buy ratings from Lehman Brothers and First Union Securities.

Juniper Networks soared 14 7/16 to 210 9/16 on news that it will be added to the Nasdaq 100 Sept. 7.

Akamai gained 4 3/8 to 70 11/16 on an expanded alliance with PSINet , up 3/16 to 17 15/16.

Liberate rose 3 3/16 to 27 5/8 after winning a contract from BellSouth.

Some technical comments on the market: We have broken rising wedges on the S&P 500 and 100, the Dow, and the Semiconductor Index, a set-up for at least a small decline here. The S&P 500 could find support at 1500 or in the 1480-1490 range, but the broken wedge does give the index potential downside to 1425. The Dow could find support at 11,000, but the more important level is 10,900, the upper boundary of the broken bearish diamond pattern. A move below that level could lead to a broader sell-off. To the upside, if the Dow can close above its April high of 11,287, it could have room to 11,400. The Nasdaq and Nasdaq 100 are also forming rising wedges, with lower boundaries at 4040 and 3900, respectively. The Nasdaq continues to struggle with its 50% retracement level of 4087 and its downtrend line, closing just below that level yesterday. The Nasdaq may also be forming a head-and-shoulders secondary top here, with two shoulders under 4100 and a head at 4289. A move above 4100 on the Nasdaq and 4000 on the Nasdaq 100 could give the techs room to run. The ISDEX is also forming a rising wedge here, and ran right up against the lower boundary of a previous broken rising wedge last week. That previous wedge, which is also the upper boundary of the ISDEX's current risin