RealTime IT News

Nets Rest as Stocks Rise

Stocks rose Wednesday on strength in Microsoft, but Internet shares rested after a strong recent run-up.

The ISDEX closed down 1 to 776. The Nasdaq gained 50 to 4063, the S&P 500 gained 3 to 1478 and the Dow gained 62 to 10,497 after testing 10,400. Volume declined slightly, to 1 billion shares on the NYSE and 1.53 billion on the Nasdaq. Breadth was negative, with declining issues leading 16 to 12 on the Big Board and by a hair on the Nasdaq.

Traders ignored negative earnings news from Oracle and Intel and focused on strength in Microsoft , which rose sharply on news that its antitrust appeal will go straight to the Supreme Court. OPEC raised output less than was needed to reverse rising oil prices, while Alan Greenspan gave no hints in Senate testimony ahead of the Federal Reserve meeting next week.

Shares of Yahoo! dragged on the ISDEX, falling 5 3/16 to 142 13/16 after Lehman Brothers initiated coverage of Yahoo and the Internet media group with a Neutral rating. The stock turned back yesterday at the key resistance level of 150.

Globix fell 2 3/16 to 33 13/16 on rumors that the company may miss earnings estimates. The rumors also hit Exodus , off 3/16 to 54 3/16 after completing a 2-for-1 stock split, and Digex , off 3 3/8 to 75 3/4. Exodus also filed with the SEC to sell up to $2 billion in new debt and equity securities in one or more public offerings over the next two years.

Shares of iBasis gained 3 3/4 to 36 1/4 on news that the firmed signed a deal with number 3 Chinese phone company Jitong Communications. Jitong will be able to send international voice and fax traffic over iBasis' network, and international calls can be completed from the iBasis Network to destinations in China.

Akamai soared 12 1/4 to 116 1/4 after Chase H&Q analyst David Levy initiated coverage with a Buy rating and a price target of 175-180.

One positive aspect of Oracle's earnings report was that it revealed strength in business-to-business e-commerce solutions. Ariba gained 6 13/16 to 96 13/16, extending its gains after clearing a two-month base yesterday. Based on the size of Ariba's rectangle pattern (49 to 83), the stock could potentially go as high as 117. Shares of PurchasePro gained 6 5/16 to 42 13/16, and FreeMarkets gained 7 23/32 to 50 27/32.

Shares of Commerce One , up 1 5/8 to 44 5/8, and AppNet , up 1 3/16 to 34 1/2, recovered a day after announcing merger plans, hoping to speed the development of B2B exchanges. For more on the deal, click here.

Shares of OnDisplay gained 3 1/4 to 75 1/2. The stock broke out of an ascending triangle at 68 yesterday, a classic bottoming pattern. Shares of AOL declined 5/8 to 57 1/4 a day after breaking its downtrend on high volume. Shareholders are expected to vote on the company's merger with Time Warner on Friday.

Red Hat extended its gains, up 1 5/16 to 31 1/28, a day after news that Dell announced that it will expand customer support for Linux software, putting it on a par with Dell's support for Microsoft Windows.

Inktomi gained 3 5/16 to 148 9/16, a day after rising 5 3/4 on positive comments from Merrill Lynch. The company expects 30% sequential growth for the next two to four quarters.

Virata Corp gained 9 3/4 to 59 3/4 after pre-announcing first quarter revenues of $25-27 million, a 115% increase from the prior quarter. The company also announc