RealTime IT News

Bears Again In Control

For the second straight day, technology and Internet shares rallied, only to fall in the final hour of trading. But the Dow managed a gain on news that Chase Manhattan is expected to acquire JP Morgan.

The ISDEX fell 6 to 765 after trading as high as 789, while the Nasdaq fell 46 to 3849, more than 100 points off its high. The S&P 500 dropped 5 to 1481, but the Dow added 37 to 11,233. Volume rose to 980 million shares on the NYSE and 1.59 billion on the Nasdaq. Decliners led by a fraction on the NYSE and by 22 to 17 on the Nasdaq. Oracle and Red Hat report earnings on Thursday. The PPI for August will be reported on Thursday and the CPI on Friday. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our new after hours trading site.

Cisco Systems led to the downside, falling 2 1/2 to 58 11/16, a day after breaking its May uptrend line and closing below its 200-day moving average. Telecom equipment stocks have been weak on concerns that spending may be slowing. Nortel fell 4 3/16 to 63 13/16.

JDS Uniphase dropped 6 9/16 to 103 3/16 on reports that its merger with SDL may be in trouble.

NetCreations plummeted 8 49/64 to 12 3/32 after warning that third-quarter earnings will come in at 4-6 cents per share instead of the 11-cent earnings analysts expected.

DoubleClick gained 4 1/8 to 37 7/8 a day after a positive analyst meeting. Merrill Lynch analyst Henry Blodget said he is comfortable with his estimates for the company and expects the stock to perform well for the rest of the year.

Bear Stearns made positive comments about InfoSpace , up 7/8 to 41 3/16, About.com , up 2 3/8 to 38, and Amazon.com , up 3/8 to 42 3/4.

Lionbridge Technologies gained 1 1/4 to 8 1/2 after the company said it expects to meet third quarter estimates, "excluding the effect of the Euro."

Diamond Technology Partners rose 2 1/16 to 73 9/16 on a Donaldson, Lufkin and Jenrette Top Pick rating and $100 price target. DLJ was bullish on DTPI's definitive agreement to merge with Cluster Consulting.

AskJeeves gained 3/8 to 26 1/4 after announcing the creation of AskJeeves Japan.

SpeechWorks , down big yesterday on valuation concerns, fell 3 3/8 to 61 1/4 despite partnerships with Palm and General Magic , which gained 5/32 to 7 5/8.

StarMedia tacked on 1 1/16 to 11 13/16 after announcing a Latin American wireless Internet alliance with Compaq.

B2B stocks were mixed after a strong recent run. FreeMarkets slipped 3 to 74 1/2 after trading as high as 82 on news of an alliance with Microsoft. Ariba fell 5 1/16 to 148 31/64 despite a deal with Blue Martini , off 4 5/8 to 47 7/8. i2 rose 3 to 161 1/8, but Commerce One lost 6 to 69 1/8, back below the $70 breakout level, and PurchasePro gave back 8 15/16 to 60 11/16 after trading as high as 73.

Yahoo added 21/32 to 106 31/32 on a Bear Stearns Buy rating and $160 price target. The firm believes Yahoo's long-term returns will outperform the broad market indexes.

Ventro rose 9/16 to 17 1/4 on news of a foodservice industry distribution venture.