RealTime IT News

Stocks Await Microsoft Ruling

Stocks treaded water on Tuesday as traders awaited the judge's ruling in the Microsoft antitrust case, expected to be issued after the markets close at 4:30 p.m.

The Dow gained 9, the S&P 500 gained 6 and the Nasdaq rose 17 on light volume. The ISDEX gained 7 to 737. Advancers led decliners 13 to 12 on the NYSE and 18 to 17 on the Nasdaq. Volume was 380 million on the Big Board and 626 million on the Nasdaq.

Linux play Red Hat rose 2 1/8 to 23 3/16 in advance of the Microsoft decision. Judge Jackson is expected to order the breakup of the software giant. Electronic copies will be available here.

MP3 soared 3 5/16 to 14 15/16 on a Wall Street Journal report that said the online music company could be close to settling its copyright infringement case with Time Warner .

Cisco recovered 1 3/8 to 62 11/16. The tech bellwether fell yesterday after failing to break its downtrend line above 64. Each recovery in the stock since it peaked at 82 in April has stopped at a 62% retracement, including the most recent move from 72 to 50, where the stock has strong support.

24/7 Media continued its strong run, gaining 3 to 20 1/8. Prudential on Tuesday initiated coverage with a Strong Buy rating and a price target of $48.

Juniper Networks gained 11 3/4 to 213 1/8. Nortel Networks is considering marketing Juniper's Internet routers instead of its own, the Wall Street Journal reported.

Ariba gained 3 to 78 3/8 after signing a deal with IBM and I2 Technologies to create a major e-commerce marketplace called E2Open.com for the computer, electronics and telecommunications industries. Shares of WebMethods continued their run, gaining 6 1/4 to 141 1/2.

Netegrity gained 2 9/16 to 63 9/16 after the provider of e-commerce infrastructure solutions for secure portal management announced a strategic partnership with Vignette .

Interwoven gained 6 3/16 to 76 1/8 after Dain Rauscher Wessels upgraded the Web content management software company from Buy to Strong Buy and set a price target of 140.

E*Trade gained 1 13/16 to 18 11/16 after DLJ made it a Top Pick with a $31 target price. Ameritrade , which received a buy rating, rose 11/16 to 13 1/4.

Yahoo gained 3 13/16 to 138 7/8 after being added to Morgan Stanley Dean Witter's Model Portfolio.

NaviSite rose 2 to 51 after Chase H&Q analyst David Levy made positive comments regarding the company's quarterly results, expected to be released after the close Thursday. About.com gained 7/8 to 44 7/8 after saying it expects to become profitable in the second quarter of next year, two quarters ahead of projections.

Troubled MicroStrategy continued its strong run, soaring 7 5/8 to 35 5/8.

Healtheon/WebMD took a breather from its recent run, down 1 3/16 to 18 7/8.

Some technical comments on the market: I said yesterday we were looking for a pullback in the Nasdaq to around the 3700 level. We pretty much completed that this morning. However, we don't want to go lower than that, and I would set 3717 as our floor: a sharp break and close belowthat number would probably take us back to 360