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RealTime IT News

Bulls Storm Back

Internet and technology stocks roared back on Thursday to recover from steep declines at the open.

Stocks initially dropped after Motorola lowered handset sales guidance, but then rebounded on rumors that Cisco was reassuring investors that its earnings report next week will not disappoint. The ISDEX gained 32 to 717 after falling as low as 656. The Nasdaq gained 101 to 3759, almost 250 points off its low. The S&P 500 gained 13 to 1452, but the Dow lagged, gaining only 19 to 10,706 after being up almost 60. Volume rose to 1.05 billion shares on the NYSE and 1.83 billion on the Nasdaq. Breadth was negative, however, with decliners leading 15 to 13 on the NYSE and 22 to 17 on the Nasdaq. Traders awaited Friday's July employment data, which is expected to show a 70,000 gain in non-farm payrolls, a 4% unemployment rate, and a 0.3% gain in hourly wages. For earnings reports, visit our earnings calendar and reported earnings.

After the bell, Jupiter Communications blew away estimates by 18 cents with earnings of 11 cents a share. The stock soared to 30 after hours after ending the day down 1 1/2 to 25 1/2. theglobe.com beat estimates by 8 cents with a 33-cent loss. The stock rose to 1 3/4 after hours after gaining 1/16 to 1 5/8 during the day. Emulex also rose strongly after beating estimates.

Cisco Systems saved the day. After falling below the important $60 level, rumors began to circulate that Cisco was reassuring investors that next Tuesday's earnings report will not disappoint. Investors have been nervous about the earnings report since someone bought 56,000 puts on the stock earlier this week, a bet that the stock will fall.

Internet leaders got whipped around in the volatile trading. Yahoo gained 4 1/4 to 131 3/8 after trading as low as 123. Ariba gained 8 5/16 to 123 1/8, 15 points off its low. eBay managed to get back to the important $50 level, rising 1 1/8 after trading as low as 46.

Vignette continued its strong rebound, up 4 1/8 to 39 1/8, 12 points above Wednesday's low, on news of an alliance with IBM . The company broke its uptrend last week at 42; that line, which could pose some resistance, has now risen to about 45. The stock's high today was 40 1/8.

After the bell on Wednesday, Go.com beat estimates by 11 cents with a 34-cent loss. Goldman Sachs raised the company from Outperform to Recommended List, and the stock gained 1 9/16 to 12 3/16. The company will become the Disney Internet Group on Monday, stock symbol DIG.

ZDNet beat estimates by a penny with 7-cent earnings, and CS First Boston upgraded the company from Hold to Buy, but the stock slipped 1/2 to 16 1/4. The company is being purchased by CNET , which lost 1/2 to 28 1/16.

Talk.com gained 1/4 to 4 15/16 after beating estimates by a nickel with a 1-cent loss. But Peapod missed estimates by 19 cents with a 58-cent loss, and the stock declined 5/16 to 2 1/16.

Getty Images bolted 5 to 41 after announcing that second-quarter earnings before interest, taxes, depreciation and amortization almost tripled to $22.4 million.

Lionbridge gained 15/16 to 8 15/16 on a CIBC World Markets Strong Buy rating and price target of $20. CIBC called the company its top small-cap pick.

Mortgage.com slipped 3/32 to 1 1/16 on a USB Piper Jaffray downgrade from Buy to Neutral on disappointing revenue and earnings.

Ventro bolted 3 5/16 to 13 7/8 on news of an alliance with American Express to create an online marketpla