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RealTime IT News

Internet Consultants Hammered On Viant Warning

An earnings warning from Viant sent shares of e-consultants tumbling on Friday. The broader market rose on the latest signs that the economy is slowing.

The ISDEX slipped 6 to 831. But the Nasdaq gained 19 to 4225, the S&P 500 added 6 to 1523, and the Dow climbed 15 to 11,290. Volume declined to 420 million shares on the NYSE and 775 million on the Nasdaq. Advancers led slightly on both the NYSE and the Nasdaq. Stocks were buoyed by a weaker-than-expected August jobs report, with unemployment rising to 4.1%, and a National Association of Purchasing Management survey that showed contraction for the first time since January 1999. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our new after hours trading site.

Viant fell 5 to 8 7/8 after warning that third-quarter earnings will come in lower than expected. The company expects to post a loss for the quarter, while analysts were expecting an 8-cent profit. Revenue will fall 12-15% sequentially. CS First Boston was out in front, downgrading the sector a few days ago, but analysts piled on today, sending the whole sector lower. Scient lost 5 1/16 to 22, Sapient lost 7 13/16 to 44 11/16, Breakaway fell 1 3/4 to 13 1/8, IXL declined 1 1/4 to 8 5/16, Proxicom lost 4 1/2 to 19 7/8, and Tanning Technology lost 4 5/16 to 12.

Yahoo fell 8 15/16 to 112 9/16 on a front-page Wall Street Journal story on the tough Internet advertising environment. Yahoo was said to be offering advertisers more favorable terms. DoubleClick fell 1 9/16 to 39 1/8.

AskJeeves rose 1 3/8 to 31 7/8 on news that it will launch a Spanish-language venture with Univision.

Netopia fell 9 1/8 to 27 1/2 on a Kaufman Brothers downgrade from Strong Buy to Buy.

Register.com lost 1 3/16 to 12 13/16 on a Banc of America downgrade from Strong Buy to Buy.

Bid.com gained 27/32 to 3 because of its $23 million stake in Quack.com, which is being acquired by America Online . For more on the acquisition, click here.

B2B stocks again showed strength. i2 gained 10 1/8 to 179 5/16, Ariba added 4 9/16 to 161 15/16, and Commerce One tacked on 2 23/32 to 65 1/4.

Some technical comments on the market: The Nasdaq has risen 6% since barely meeting its minimum requirement for a follow-through day on Aug. 17. That may not be much compared to the index's gains in recent years, but it's half an average year in the stock market. Not bad for 10 trading days. Now the tough part begins. The Nasdaq is just below its July peak (4289) and its 62% retracement level (4337). Once a 62% Fibonacci level is crossed, the move becomes a trend in its own right, so it's a very important number. If the index can clear those levels, it could easily go to 4475, the secondary peak in April. There's an interesting convergence at that point: the Nasdaq's highest possible downtrend line (across the 5132 and 5070 peaks) meets the upper line of the index's rising channel at about 4500 in roughly 8 trading days. That said, we have an awful lot of resistance right here: A purer drawing of the bearish rising wedge boundaries, using 150-period hourly charts instead of 120-period charts, would set the upper boundaries for the Nasdaq and Nasdaq 100 just above today's highs, at roughly 4300 and 4200, respectively. To the downside, the lower wedge boundaries