RealTime IT News

Stocks Take A Breather

Stocks digested Friday's huge gains on Monday, ahead of key earnings reports later this week.

The ISDEX added 5 to 653, but the Nasdaq dropped 32 to 3283 on weakness in Intel and Microsoft. The S&P 500 lost 3 to 1371, but the Dow added 35 to 10,227. Volume declined to 450 million shares on the NYSE and 805 million on the Nasdaq. Advancers led by 13 to 12 on the NYSE, but breadth was even on the Nasdaq. There are a lot of big earnings reports this week, including Intel and IBM tomorrow, and Microsoft and Sun Microsystems on Wednesday. The Consumer Price Index Wednesday is the big economic report for the week. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our after hours trading site.

B2B leaders were strong heading into earnings reports. Ariba , which reports Wednesday, bolted 12 3/16 to 133 7/8, Commerce One , which reports Thursday, gained 3 11/16 to 66 1/2, and i2 Technologies , which reports tomorrow, added 5 5/8 to 187 5/8. PurchasePro , which also reports tomorrow, soared 6 to 41 after Prudential called the company its Single Best Idea, following a similar gain on Lehman Brothers comments on Friday.

About.com rose 1 3/4 to 21 1/2 after the company pre-announced better-than-expected results.

eBay lost 2 3/8 to 53 1/2 on reports of a lawsuit against the company for the sale of fake sports memorabilia, raising concern that the company may need to verify the authenticity of items sold on its site.

Juniper Networks , up 10 3/8 to 238 7/8, continued to rise after a blow-out earnings report Thursday. Corning added 3 13/16 to 96 11/16, continuing to gain on a positive earnings pre-announcement. RSA Security , up 1 13/16 to 53 3/4, also continued to gain in the wake of better than expected earnings.

Digital Island rose 1 1/2 to 15 3/4 on an alliance with Microsoft .

Internet consultants continued to rebound, led by Scient , up 2 3/8 to 18 7/8, and Razorfish , which gained 9/32 to 5 9/32. A Barron's article said bargain hunters have descended on the space.

Inktomi regained 5 to 87 1/4. If the company's breakdown out of a descending triangle was for real, it should have a hard time getting back above $90, and could still have significant downside ahead.

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

Not a bad day considering Friday's strong gains, although semiconductor stocks are a little weaker than we'd like to see. The key at this point is earnings reports, and probably no day is more important than Wednesday, when Microsoft and Sun report af