RealTime IT News

Amazon, eBay Lead Nets Higher

Two familiar names led Internet stocks higher on Friday: Amazon.com and eBay.

The ISDEX rose 27 to 826, powering above 800. The Nasdaq added 71 to 4246. The S&P 500 rose 14 to 1510, and the Dow climbed 24 to 10,813. Volume declined to 951 million shares on the NYSE and 1.66 billion on the Nasdaq. Advancing issues led 15 to 12 on the NYSE and 21 to 17 on the Nasdaq. June's Producer Price Index came in at a 0.6% increase, as expected, but the core declined a better-than-expected 0.1%. The retail sales report came in stronger than expected, however, as did the Michigan consumer sentiment survey. For earnings reports, visit our earnings calendar and reported earnings.

Internet stocks continued their resurgence, led by the business-to-consumer stocks.

Amazon.com soared 7 1/8 to 42 1/8 after a strong defense and Buy rating from Salomon Smith Barney. The firm expects Amazon to finish the March 2001 quarter with $660 million in cash.

eBay soared 7 3/4 to 61 3/16 on a CS First Boston Strong Buy rating and $72 price target. Priceline.com gained 1 1/8 to 39 9/16 on a CSFB Buy rating and $45 target.

Yahoo gained 5 13/16 to 128 3/8 after Yahoo Japan posted strong earnings numbers.

The cascade of earnings reports began. Juniper Networks rose 3 1/2 to 173 and Stamps.com gained 17/32 to 6 5/8, both on better-than-expected numbers. But a number of stocks fell despite beating estimates, including RSA Security , off 8 5/8 to 70 1/8, Keynote , off 18 3/16 to 65 despite blowout earnings, Broadbase Software , down 5 3/16 to 33 13/16, and Sonus Networks , off 10 13/16 to 181. Sonus' numbers were initially reported as a miss. HomeGrocer fell 1 3/8 to 6 5/8 despite better-than-expected numbers, dragged down by an earnings miss and warning from merger partner Webvan , which fell 1 17/32 to 7 25/32. Extended Systems cratered 37 5/8 to 49 1/2 on an earnings warning.

Commerce One continued to gain in the wake of Ariba's bullish earnings report, adding 10 3/8 to 70 5/16. The company reports earnings after the bell on Tuesday. The stock broke out of a three-month symmetrical triangle yesterday at 52, with potential upside to 85 or higher, based on the high (65) and low (29) points of the pattern. The stock has gapped up two days in a row.

Alteon WebSystems fell 10 1/2 to 113 13/16 after rising as high as 138 1/4 on a Business Week report that the company could be a takeover target. Vignette declined 3 7/16 to 50 1/8 despite a positive mention in the magazine.

Covad continued to rise, adding 1 to 22 15/16 on a Banc of America Buy rating. NorthPoint , up 1 1/8 to 15 1/16, and Rhythms , up 1 3/16 to 17 9/16, received Market Perform ratings.

MarketWatch added 1 3/8 to 23 5/8 on a First Albany Strong Buy rating and $35 price target.

Some technical comments on the market: The S&P 500 took out its 78% retracement level today (1508). And despite that positive, it continues to look like it's about to drop. We mentioned yesterday that the S&P 500 was forming a rising wedge in the 60-minute chart; that pattern continues to wind tighter, and the index finished right at the upper boundary of it today. The S&P 500 could move higher from here, but the pattern has at most two or three days until the apex is reached, and it could break down as soon as Monday morning. A rising wedge, or