RealTime IT News

Nortel Sends Tech Stocks Sprawling

Nortel Networks sent technology stocks sprawling on Wednesday when it reported weaker-than-expected revenues, overshadowing a strong report from Amazon.com.

The ISDEX lost 44 to 606, and the Nasdaq plummeted 190 to 3229. The S&P 500 lost 33 to 1364, and the Dow declined 66 to 10,326. Volume surged to 1.3 billion shares on the NYSE and 2.2 billion on the Nasdaq. Decliners led by 18 to 9 on the NYSE and 27 to 12 on the Nasdaq. The big economic reports for the week are tomorrow's employment cost index and Friday's GDP report. Dallas Fed President Robert McTeer said the GDP report could come in much weaker than expected, fueling fears of a sharp economic slowdown. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our after hours trading site.

InfoSpace rose more than a point to 22 after hours after reporting earnings of 3 cents a share, 3 cents better than expected.

During the regular session, Amazon.com rose 2 7/8 to 32 7/16 after beating estimates by 7 cents with a 25-cent loss. Revenues of $638 million trounced estimates of $600-$608 million. AskJeeves , off 1 7/16 to 10 11/16, also beat estimates, but announced the resignation of CFO Thomas Low. VerticalNet , down 6 7/8 to 25 3/4, beat estimates by 9 cents with a 20-cent loss.

But it was Nortel's earnings report that tested the market's mettle. The stock plummeted 18 3/16 to 45 1/8 after revenues came in at $7.3 billion, at the low end of the $7.3-$7.8 billion range of estimates, and the company forecast slower optical networking growth in 2001. JDS Uniphase , also strong in the optical space, dropped 24 1/2 to 70 9/16. JDSU reports earnings tomorrow.

CNET surged 3 to 28 11/16 after reporting earnings of 7 cents, 4 cents ahead of estimates. Excite@Home , off 9/16 to 9 9/16, matched estimates, but guided 4th-quarter estimates lower.

InterNAP slipped 1 15/16 to 16 after beating estimates by 3 cents with a 35-cent loss. Click Commerce dropped 4 7/8 to 28 despite beating estimates by 4 cents with a 4-cent loss. InterWorld dropped 7/16 to 2 3/8 after missing estimates by 1 cent with a 41-cent loss. USinternetworking , off 1 to 2 3/4, beat by 2 cents with a 49-cent loss.

Rhythms , off 31/32 to 2 31/32, beat estimates by 22 cents with a $2.07 loss. Viant , down 3/8 to 6 1/8, beat estimates by 3 cents, but Razorfish , off 5/8 to 4 11/16, missed by a penny.

Bluestone Software dropped 2 13/16 to 20 3/8 on news of a merger with Hewlett-Packard . Fogdog , off 3/16 to 11/16, will be acquired by Global Sports for 0.135 GSPT shares. pcOrder.com fared better, soaring 2 11/16 to 6 1/8 on a $6 3/8 cash offer from Trilogy Software.

Sagent , off 3/8 to 2 3/4, missed earnings by 4 cents with a 24-cent loss. FVC.com , off 1/4 to 3, matched estimates.

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

We said last night that Nortel's miss was bad news for the m