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RealTime IT News

Blue Chips Outperform

JDS Uniphase may have saved fiber optics stocks with better-than-expected earnings, but it was the Dow that led the market to the upside on Friday.

The ISDEX slipped 3 to 602, but the Nasdaq rose 25 to 3297. The S&P 500 climbed 12 to 1376, and the Dow surged 134 to 10,514. Volume slipped to 490 million shares on the NYSE, but was unchanged on the Nasdaq at 940 million shares. Advancers led by 15 to 10 on the NYSE and 18 to 16 on the Nasdaq. The GDP report came in weaker than expected, with some signs of inflation pressures, but wasn't as bad as traders feared. Financial stocks rallied on the news, perhaps anticipating a Fed easing. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our after hours trading site.

JDS Uniphase rose 5 9/16 to 80 after the company's 18-cent earnings beat estimates by 2 cents. Revenues of $786.5 million beat estimates of $750-$760 million, and the company guided forward estimates higher. Nortel's revenue miss on Tuesday gave Internet infrastructure companies a tough couple of days. Juniper Networks was off 5 1/8 to 185 despite a Banc of America Buy rating and $270 price target. Technical note: JNPR cannot close at 174 or lower, or it will break a broadening top, with potential downside to 120.

Cisco Systems , off 1 1/8 to 52 7/16, was weak on rumors of an impending downgrade from a major brokerage. The company reports earnings Nov. 6.

Inktomi dropped 8 15/16 to 74 1/16. The company beat estimates by 2 cents with 7-cent earnings, but lowered forward guidance. Technical note: We reported some time ago that Inktomi broke a bearish descending triangle at 87. The stock could have downside to 50 and potentially lower.

Amazon.com slipped 7/8 to 36 despite a Lehman Brothers report that claimed the company had reclassified $96 million in equity investments as cash, inflating the company's cash level by 10%. Lehman said the reclassification raises balance sheet concerns, and continued to urge investors to avoid Amazon's convertible bonds.

Art Technology Group , off 13 9/16 to 71, beat earnings estimates but filed for a 4.7 million secondary share offering.

Lycos rose 2 1/8 to 42 13/16 after shareholders approved the company's merger with Terra Networks .

Sapient was unchanged at 31 after matching estimates with 12-cent earnings. CS First Boston issued a broad downgrade of e-consultants, saying the stocks had little upside but could fetch attractive buyout premiums.

Handspring , off 5 7/8 to 85 7/8, dropped on a warning from British handheld maker Psion, but Merrill Lynch defending HAND, Palm and Research In Motion , saying Psion's problems were company-specific.

Homestore.com surged 7 to 36 1/8 on news that it was buying Cendant's real estate portal for about $760 million in stock.

Aether Systems surged 3 5/8 to 97 3/4 after beating estimates by 25 cents with a 40-cent loss. Clarent , up 4 1/8 to 31 7/8, beat estimates by 7 cents with 4-cent earnings. NBC Internet , up 1 to 5 15/16, beat estimates and guided forward estimates higher.

Digex fell 5 to 36 1/4 after beating estimates by 3 cents with a 61-cent loss. MicroStrategy rose 1 15/16 to 24 15/16 after beating estimates by 16 cents with a