RealTime IT News

Net Stocks Buck Downtrend

Technology and Internet shares rose Thursday morning, bucking a sell-off in old economy stocks after Procter & Gamble issued an earnings warning and the European Central Bank raised interest rates more than expected.

The Dow fell 139 points to 10,673, below the important support level of 10,700, and the S&P 500 fell 6. But the Nasdaq rose 25 points to 3864 and the ISDEX gained 5 to 773. Decliners led advancers 15 to 10 on the NYSE, where 396 million shares changed hands. Decliners led 18 to 17 on the Nasdaq, where 656 million shared traded. Traders awaited Friday's Producer Price Index for May, expected to show a 0.3% increase.

Traders took news of a judge's order to split up Microsoft in stride. Microsoft fell 1/4 to 70 1/8. Linux play Red Hat fell 1 1/2 to 23 1/4, as traders took profits from a strong run-up in advance of the decision.

Troubled MicroStrategy continued its remarkable run, rising 4 1/2 to 42 1/8. The company is rumored to be close to securing a vital round of financing. Extended Systems continued its winning ways, up 3 to 67 7/8, but down from its intraday high of 74 7/8.

Yahoo continued its run, gaining 2 7/16 to 146 15/16. The stock was added to Morgan Stanley Dean Witter's Model Portfolio yesterday. MP3 gained 9/16 to 17 7/16, down from an intraday high of 19 3/4, on follow-through from yesterday's Wall Street Journal report that said the online music company could be close to settling its copyright infringement case with Time Warner .

Cisco continued to improve, gaining 1 23/32 to 64 19/32, after a Goldman Sachs recommendation. The tech bellwether has been trying to break its downtrend line the last few days. 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, its long-term support line.

OneMain soared 3 1/8 to 11 1/8 on new that EarthLink was buying the regional ISP for $308 million in cash and stock, or $12.27 per OneMain share.

ePlus gained 3 15/16 to 27 15/16 after the Internet-based B2B supply chain management solutions company reported Q4 net of $0.25, more than double the $0.12 First Call mean.

Travel sites were mixed despite positive comments from Donaldson, Lufkin & Jenrette. Travelocity.com gained 1 1/16 to 20, while Expedia fell 3/8 to 21 1/8.

Ticketmaster Online gained 3/16 18 11/16 after Morgan Stanley Dean Witter initiated coverage with an Outperform rating.

CMGI gained 1 1/4 to 60 1/2 after CIBC World Markets started coverage with a Strong Buy and a $90-$100 target price, calling the company the "premier Netglomerate." Commerce One gained 3 5/16 to 53 15/16.

webMethods continued its strong run, gaining 5 1/2 to 151 1/2 after announcing a partnership with Oracle Corp. to provide solutions for the deployment of global B2B exchanges. webMethods will be a preferred solution provider for integrating buyers and suppliers to trading networks and exchanges built on the Oracle Exchange platform.

NaviSite fell 7/8 to 54 1/16 ahead of its earnings, expected after the close today. Chase H&Q analyst David Levy made positive comments earlier this week regarding the company's quarterly results.

Network Appliance displayed technical strength, gaining 4 to 82 1/8.

Juniper Networks rose 11 13/16 to 236 1/2, extended its earlier gains from talk of a