dcsimg
RealTime IT News

Stocks Led Lower By Nets, Chips

Internet and semiconductor shares led the market sharply lower on Wednesday, as investors remained unimpressed by even better than expected earnings reports.

The ISDEX fell 28 to 756 and the Nasdaq dropped 87 to 3942. The S&P declined 15 to 1458, and the Dow dropped 117 to 10,582, negating its recent breakout. Volume rose to 495 million shares on the NYSE and 710 million on the Nasdaq. Chip stocks were down 7%. Advancers led by 14 to 10 on the NYSE and 26 to 10 on the Nasdaq. The major economic reports for the week are the second-quarter Employment Cost Index tomorrow and the GDP on Friday. Among the companies reporting earnings after the close today are Amazon.com, JDS Uniphase, InfoSpace, VeriSign and VerticalNet. For earnings reports, visit our earnings calendar and reported earnings.

Amazon.com received a negative earnings preview from Lehman Brothers, which downgraded the stock from Buy to Neutral. Lehman cited softness in key consumer metrics, substantial execution risks, and expensive valuation. Amazon fell 2 7/8 to 34 3/4.

eBay fell 4 5/8 to 51 5/8 despite reporting earnings of 5 cents a share, 2 cents better than expected, and revenues that nearly doubled to $97.4 million.

Vignette beat estimates by a penny with 1-cent earnings, but the stock dropped 6 7/8 to 36 3/4. ING Barings downgraded the stock to Buy from Strong Buy based on competitive concerns potential dependence on large deals.

AskJeeves was one of the few standouts, rising 2 1/2 to 19 1/2 after beating estimates by 4 cents with a 51-cent loss. First Union upgraded the firm to Strong Buy from Buy.

Marimba rose 1 to 23 1/16 after reporting earnings of 6 cents a share, 7 cents better than estimates. John Olsen of Cadence Design Systems was named president and CEO, replacing company co-founder Kim Polese, who is becoming chairman and chief strategy officer.

Art Technology Group fell 4 9/32 to 98 31/32 after trading as high as 116. The company reported earnings of 4 cents a share, 7 cents better than estimates.

MarketWatch.com fell 3/16 to 17 after beating estimates by 12 cents with a 64-cent loss.

Modem Media fell 2 5/8 to 12 3/4 after reporting a second-quarter loss of 7 cents, 6 cents better than estimates. Robertson Stephens downgraded the stock to Buy from Strong Buy.

Rhythms NetConnections lost 3/16 to 14 9/16 after beating earnings by 12 cents with a second-quarter loss of $2 a share.

TicketMaster Online slipped 3/16 to 20 5/8 after beating estimates by 4 cents with a second-quarter 52-cent loss. Cheap Tickets lost 1 1/2 to 11 5/8 after reporting second quarter earnings of 21 cents a share, a penny ahead of estimates.

Open Market fell 13/16 to 7 1/16 after reporting second quarter earnings of 16 cents a share, 2 cents better than expected.

USinternetworking fell 2 3/16 to 16 5/16 after beating estimates by a penny with a second-quarter loss of 43 cents.

New Focus reported a second-quarter loss of 13 cents, 3 cents better than expected, and announced a secondary offering of 3.5 million shares. The stock lost 28 1/16 to 126.

@Plan slipped 1/16 to 7 after beating estimates by 3 cents with an 11-cent loss. Egghead.com



×
We have made updates to our Privacy Policy to reflect the implementation of the General Data Protection Regulation.