Stocks Shake Off Earnings Worries
Stocks staged an impressive recovery Tuesday, ignoring an earnings warning from NBC Internet and a downgrade to Hewlett-Packard.
The ISDEX
Shares of NBC Internet
Engage
Blodget made a broad call on business-to-consumer Internet stocks. He noted that only 5 of 400 are profitable, and said he expects that number to rise to 15 to 20 in three years. He also said the sector is going through a healthy shakeout. The B2C stocks he likes are DoubleClick, Yahoo!
Shares of recent IPO Hotel Reservations Network
Shares of Biznessonline.com
E.piphany
Rumors of an impending buyout by Corning
Commerce One
RealNetworks rose 6 to 734 after falling as low as 699, and the Nasdaq powered 83 points higher to 3851 after testing support at 3700. The broader market shook off concerns over Hewlett-Packard's earnings
. The Dow rose 57 to 10,621 after testing its key level of 10,500. The S&P 500 surged 23 to 1469. Advancers led decliners 15 to 13 on the Big Board, where volume rose to 925 million shares. Breadth was even on the Nasdaq, with 1.4 billion shares changing hands. Weaker than expected retail sales and comments from Fed officials gave investors hope that the economy is slowing and that the Fed might not have to raise interest rates as aggressively. The Consumer Price Index, expected to show a 0.2% gain in May, is on deck for Wednesday.
, down 7 to 17 5/8, led portals and advertising companies lower. AskJeeves
fell 1 3/16 to 20 1/4, About.com
fell 4 3/4 to 33 1/4, and DoubleClick
fell 61/64 to 43 1/32 after testing key support at 40, despite positive comments from Merrill Lynch's Henry Blodget. Goldman Sachs had sparked a sell-off in the stock yesterday on concerns over declining Internet advertising spending, which was also cited by NBC Internet.
fell 1 3/8 to 15 9/16 despite beating analyst estimates after the close Monday. The company lost 2 cents a share in the third quarter, 5 cents better than forecast. Revenues rose 1034% to $58.7 million, primarily due to the acquisition of Flycast. However, there was some concern about cash burn. Engage spent $43 million in the quarter, finishing with a $90 million cash balance. However, the company's majority owner is CMGI, which could provide cash if need be. CMGI
was unchanged at 56 1/2 during regular trading.
.
, up 2 to 139 7/16, Amazon.com
, up 1/2 to 48 15/16, eBay, up 1 7/16 to 68 1/4, and Homestore.com
, off 7/8 to 27 1/4, and Priceline.com
, up 1 1/2 to 43 1/2.
exploded to a new high, soaring 7 5/8 to 34 3/4.
gained 21/32 to 5 3/4 after Kaufman Brothers began coverage with a Buy rating and a price target of $15.
surged 10 7/8 to 98 1/8 and BroadVision
gained 3 1/8 to 52 1/8 after Salomon Smith Barney began coverage of both issues with a Buy rating. EarthWeb
gained 1 13/16 to 15 1/6 after W.R. Hambrecht upgraded the firm to Strong Buy with a price target of $25.
drove shares of SDL Inc
up 20 33/64 to 282 1/2. Redback Networks gained 15 3/8 to 123 7/8. Brocade
gained 11 5/16 to 145 5/16 on news of an alliance with Cisco
.
rose 4 5/16 to 56 3/8 on news that German software company SAP is taking a $300 million stake in the company.
rose 3 11/16 to 43 13/16 on news that Japanese electronics company Matsushita