dcsimg
RealTime IT News

Stocks Soar On Ciena Earnings

Strong earnings and a bullish outlook from optical equipment maker Ciena sent stocks soaring on Thursday.

The ISDEX http://www.wsrn.com/apps/ISDEX/ soared 17 to 370, and the Nasdaq surged 86 to 2577. The S&P 500 climbed 11 to 1327, and the Dow rose 88 to 10,883. Volume rose to 495 million shares on the NYSE, and 960 million on the Nasdaq. Advancers led 15 to 13 on the NYSE, and 20 to 12 on the Nasdaq. For earnings reports, visit our earnings calendar at http://www.wsrn.com/apps/earnings/internet.xpl and reported earnings at http://www.wsrn.com/apps/earnings/ireported.xpl. For after hours quotes and news, visit our after hours trading site at http://www.afterhourstrading.com.

Ciena soared 15 to 91 13/16 after beating estimates by 3 cents with 18-cent earnings and raising forward guidance higher. It was hard to find a telecom equipment or networking stock that didn't rise on the news. Corning surged 4.35 to 42.25, Juniper climbed 6 7/8 to 96 1/4, and Sycamore bolted 3 1/8 to 29 7/16.

Wireless Facilities , off 2 5/16 to 28 7/16, beat estimates by 2 cents with 24-cent earnings, but JP Morgan downgraded the company on earnings visibility concerns.

Dell , which reports earnings tonight, rose 2 3/16 to 25 1/8 on news that the company will lay off 4% of its workforce. Hewlett-Packard also reports tonight.

Amazon.com lost 5/16 to 14 1/8 on a Prudential Sell rating. Sell ratings are rare on Wall Street, but Amazon seems to collect them.

Check Point , up 6 13/16 to 97, and Internet Security Systems , up 7 15/16 to 76 1/2, received Strong Buy ratings from Lehman Brothers.

Broadcom , up 7 1/2 to 88 11/16, and Applied Micro , up 5 7/8 to 53, benefited from CIBC World Markets comments that communications chip companies had fallen below their long-term growth rates.

Openwave soared 8 5/16 to 65 on a CIBC Buy rating. Competitor Comverse , which won an AT&T Wireless contract yesterday, rose another 10 1/4 to 110 5/16.

Interwoven surged 5 11/16 to 25 3/4 on a Prudential Volpe Strong Buy rating.

Homestore.com rose 4 5/16 to 34 1/4 on news of market share gains and hopes that a Department of Justice investigation will soon end.

Loudeye slipped 1/4 to 2 1/32 despite beating estimates. iXL lost 5/16 to 1 3/4 after missing estimates. Rare Medium surged 21/32 to 2 31/32 on strong earnings. Deltathree.com slipped 1/32 to 2 1/16 despite beating estimates.

Some technical comments on the market: Note: We are now including charts in the technical market commentary. If you can't get the charts via the e-mail newsletter version, try this link: http://www.afterhourstrading.com/column.html

The Nasdaq gapped up above its September logarithmic downtrend line at about 2525 this morning (first chart). Since that gap up from 2491 occurred within a trading range, it is likely to fill at some point, but today's breadth is nice to see after yesterday's reversal at critical support, the 1990 logarithmic trendline at 2388 (second chart). To the upside, that upper trendline in the first chart at about 2800 is critical resistance; if the Nasdaq can get above that, it should be a straight shot to 3000. The 2600-2700 range could provide resistance before we get to that line, however. To the downside, we'd like to see the index for



×
We have made updates to our Privacy Policy to reflect the implementation of the General Data Protection Regulation.