RealTime IT News

Bulls Finally Win One

Technology and Internet stocks finally took a breather from their September swoon, but weakness in Intel and Hewlett-Packard kept the Dow under water.

The ISDEX gained 15 to 780, while the Nasdaq rose 44 to 3893 after bouncing off 3800, preserving its uptrend from May. The S&P 500 added 2 to 1484, while the Dow fell 51 to 11,182. Volume rose to 1.06 billion shares on the NYSE and 1.65 billion on the Nasdaq. Decliners led 14 to 13 on the NYSE, but advancers led 20 to 19 on the Nasdaq. Oracle and Red Hat report earnings tomorrow. The PPI for August will be reported tomorrow and the CPI on Friday. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our new after hours trading site.

After the close, Fatbrain announced that it will be purchased by barnesandnoble.com for $4.25 a share, below the stock's closing price of 4 3/8. Fatbrain also beat earnings estimates by 17 cents with a 62-cent loss.

Cisco Systems , which led the Nasdaq's 7-day 450-point slide, recovered 2 1/2 to 61 3/8 after trading as low as 57 7/32. The technology and Internet leader broke its May uptrend line and closed below its 200-day moving average on Monday. Nortel gained 4 to 67 3/4 on news that its fiber optic gear sales were strong. Telecom equipment stocks have been weak on concerns that spending may be slowing. In a note titled "Uh Oh, CSCO," UBS Warburg strategist Gail Dudack called CSCO's fall through the 200-day moving average and $60 support could lead to a retest of the May lows for both the Nasdaq and Cisco, which bottomed at $50 in May.

Amazon.com slipped 3/16 to 42 1/2 after Lehman Brothers refused to buy into the Christmas rally scenario for the stock. Lehman maintained its Neutral rating on the stock and said Amazon's holiday season may not be a strong as previous ones.

Inktomi was off 1 to 110 after announcing the acquisition of live streaming company FastForward Networks for $1.3 billion in stock.

JDS Uniphase recovered 1 9/16 to 104 3/4 after falling yesterday on concerns that its merger with SDL may be in trouble. Merrill Lynch reiterated near-term Accumulate/long-term Buy on the stock on the heels of yesterday's analyst meeting.

eBay gained 7/16 to 62 5/8 on a Banc of America Buy rating and $80 price target. TMP Worldwide gained 2 15/32 to 73 11/32 on a Banc of America upgrade to Strong Buy and $120 price target.

PSINet gained 1 3/16 to 15 1/2 despite a Robertson Stephens downgrade to Attractive from Buy.

Razorfish gained 5/8 to 12 1/4 on a CS First Boston Strong Buy rating and comments that the company's quarter appears to be on track.

Quokka Sports soared 2 1/2 to 8 1/2 on speculation that its alliance with NBC will be a boon to the company during the Olympics.

Beyond.com , up 13/32 to 1 15/32, announced that it will not be delisted from the Nasdaq National Market after regaining compliance with listing requirements.

B2B stocks were generally lower except for i2 , up 10 1/8 to 171 1/4.

Allaire finally stopped sliding, up 3/8 to 21 1/2. Company officials told Internet Stock Report yesterday that they knew of no reason to account for the two-week slide from $38. Analysts have reiterated positive comments on the stock the last few days.