RealTime IT News

Stocks Rebound From Earnings, Rate Concerns

Stocks finally bounced on Monday, reversing last week's steep decline on earnings and interest rate worries.

The ISDEX gained 13 to 707. The Nasdaq tacked on 65 to 3728, the S&P 500 gained 13 to 1433, and the Dow rose 63 to 10,575. Volume dropped sharply, to 380 million shares on the NYSE and 680 million shares on the Nasdaq. Advancers led by 14 to 10 on the NYSE and 18 to 17 on the Nasdaq. The big economic report for the week is Friday's July employment data. Among the companies reporting earnings tonight are BarnesandNoble.com and internet.com, parent of this Web site. For earnings reports, visit our earnings calendar and reported earnings.

Juno Online soared 1 5/8 to 9 5/8, but down from an intraday high of 11 1/2, on news of a broadband access deal with Time Warner .

Akamai gained 2 1/16 to 80 on news that it will extend its alliance with IBM .

Pricline.com announced that it will offer airline and hotel reservations in Japan. But the stock slipped 3/4 to 23 3/4 after trading as high as 26 on the news.

DoubleClick also slipped despite good news, falling 1 3/4 to 35 1/8 despite a Buy rating from Donaldson, Lufkin and Jenrette. The stock gave back some of its gains from Friday's run-up on news of an agreement with the Federal Trade Commission on consumer privacy issues.

Cisco Systems gained 2 5/16 to 65 1/8 on news of a DSL deal with Cable & Wireless HKT . Cisco reports earnings next Tuesday (August 8).

DSL.net fell 1 1/4 to 4 13/16 on analyst downgrades after the company reported revenues that were below estimates.

Earthlink recouped 1 to 12 1/2 after CS First Boston defended the company, which was downgraded by Morgan Stanley Dean Witter on Friday.

S1 gained 2 5/8 to 23 3/4 ahead of its earnings, due out after the close tomorrow. Radware gained 5 1/2 to 33 1/2 ahead of its earnings, due out tonight.

QXL.com gained on news that it will become Lycos' auction partner in several European countries.

EDGAR Online added 7/32 to 3 7/16 on news of an alliance with America Online .

Some technical comments on the market: A decent rally, but not overwhelming, in line with what we expected given the technical damage done to the market last week. The Nasdaq dropped as low as 3615 this morning, not quite enough to fill the gap at 3585. The decline was halted by a more important support point: the index's October 1998 trendline. The last time the index broke that line, it went all the way to 3042. We will watch the quality of this rally closely; given last Monday's break of a rising wedge, the Nasdaq still has downside potential back to 3042. Critical support is 3550-3585. To the upside, resistance is likely around 3820-3830, and then again at the 200-day moving average at 3875. We should note that we see no bottom here equivalent to the inverse head-and-shoulders that the Nasdaq formed in the 60-minute charts at the start of the rally that began in May. The ISDEX is back above the important 700 level. To the upside, the ISDEX is likely to run into resistance at the lower boundary of the rising wedge it broke on Friday; that boundary is now around 730. The broken wedge gives the ISDEX potential to return to 560, its May low. A closing break of the index's recent intraday low of 692 would be a warning sign; we closed right at 693 on Friday. To the upside, above 730 is 790 resistance. Above that, the ISDEX turned back rec