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RealTime IT News

Stocks Plummet On Home Depot Warning, Mideast Violence

Stocks plummeted Thursday on an earnings warning from Home Depot, a terrorist attack on a U.S. destroyer and an Israeli attack near Palestinian headquarters. After the bell, Juniper Networks blew away earnings estimates, while DoubleClick matched estimates with its first profitable quarter, but guided forward estimates lower.

The ISDEX dropped 34 to 595, and the Nasdaq fell 93 to 3073, its lowest close this year. The S&P 500 lost 34 to 1329, and the Dow plummeted 379 to 10,034. Volume declined slightly to 1.37 billion shares on the NYSE and 2.1 billion on the Nasdaq. Decliners led by 21 to 7 on the NYSE and 29 to 11 on the Nasdaq. The Producer Price Index for September will be reported in the morning; analysts expect gains of 0.5% in the PPI and 0.1% in the core. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our after hours trading site.

Juniper , off 7 to 199 in regular trading, rose to 202 after hours after reporting earnings of 17 cents a share, almost double estimates. DoubleClick dropped to 14 after hours after losing 3 11/16 to 17 1/2 during the day. Three-cent earnings matched estimates, but revenues came in a little light, and the company guided forward estimates lower.

During the day, Yahoo dropped another 8 3/4 to 56 5/8. The company beat estimates Tuesday, but warned that it expects the difficult Internet advertising environment to continue for the next several quarters, and that marketing costs will likely rise faster than revenue. eBay lost 2 to 51, and Amazon.com dropped 2 3/4 to 25 a day after closing at a new 52-week low. Amazon's next strong support is 20.

Corning rose 1 1/8 to 84 1/4 on a positive earnings pre-announcement. Bellwether Cisco fell 1 7/16 to 49 3/4, closing below the important $50 level. Sonus Networks , which beat earnings after the bell Wednesday, dropped 3 1/8 to 38 5/8, and Redback Networks , which also beat earnings, lost 10 9/16 to 102. Sycamore gained 4 5/16 to 77 on a deal with BellSouth.

Stamps.com lost 1/4 to 2 11/16 on the resignation of chairman and CEO John Payne. For more on the stock, which is trading for less than cash on hand, click here.

NetIQ soared 19 3/4 to 69 3/4 on a deal with Microsoft .

WebMD lost 1 7/16 to 8 1/4 on the resignations of director Jim Clark and co-CEO Jeffrey Arnold.

Sagent Technology plummeted 2 13/16 to 2 13/16 on an earnings warning.

Inktomi slipped 3 3/16 to 75 1/8 despite a JP Morgan Buy rating, a day after breaking a descending triangle just under 90. The size of that pattern is about 70 points; it's not likely that Inktomi is going to 20, but it could have significant downside ahead, perhaps to support at 50.

Some technical comments on the market: Note: We are now including charts with the technical market commentary; just click on the links in the story below to go to them. If you have trouble accessing the charts via the e-mail newsletter version, try this link: http://www.afterhourstrading.com/column.html

The Nasdaq broke support on a line with its 1999 peak. A break below the previous 3042 bottom would likely lead to a final bo