RealTime IT News

Oracle Earnings Top Estimates

Blue chips dragged tech stocks lower despite tame economic data that helped ease rate hike concerns. After a strong opening in Internet issues, investors showed signs of worry ahead of key earnings out after the bell, sending the Dow plunging 94.71 to 11,087.47, while the Nasdaq held on to early gains, finishing up 19.97 to 3,913.86. Pockets of strength in infrastructure and Net bellwethers kept the ISDEX afloat, closing higher by 2.41%.

Oracle finished the day up 3 1/8 to 84 15/16. The second largest software maker weighed in with Q1 results after the bell, delivering $0.17 per share, ahead of the consensus forecast by four cents, and a penny better than the whisper number. The firm has topped Wall Street's estimates in its last four consecutive quarters, and investors rewarded the stock in after hours trade following another strong showing and a 2-for-1 stock split announcement.

Shares of Adobe Systems squeaked into the negative column, slipping 9/16 to 125 3/8 ahead of its Q2 earnings and a 2-for-1 stock split after the bell. The desktop publishing software maker reported $0.57 per share excluding non-recurring items, beating analysts' expectations by a nickel. Red Hat also followed suit with Q2 earnings by late afternoon, delivering a loss of a penny, ahead of consensus estimates by the same. Shares of the Linux player closed up 1 1/8 to 25 1/4.

Investors gave fiber-optics and networking plays a boost, sending shares of JDS Uniphase climbing 2 1/8 to 106 15/16 as Cisco Systems eased 1/16 to 61 1/4. Rival Extreme Networks soared 4 to 93 3/8, while Juniper Networks marched 1/4 to 198 7/8.

Shares of Network Appliance added 3 11/16 to 115 11/16 after PaineWebber reiterated its buy rating on the file server manufacturer. The investment bank expects the company will announce a new product offering boasting twice the raw storage capacity previously anticipated that should close the gap with rival EMC .

Amazon.com jumped 2 7/16 to 44 7/8 despite Lehman Brothers maintaining its "neutral" rating on the online retailing giant citing that it doesn't expect the upcoming holiday season to come in as strong as past seasons.

Banc of America initiated coverage on priceline.com with a "market perform" rating, but said the name-your-own-price firm would need to boost its repeat sales in order to be less dependent on new customer growth. Shares headed lower on the news, shedding 15/16 to 27.

Shares of eBay edged 5 15/16 to 68 7/16 following a "buy" rating from Banc of America with a price target of $80. The underwriter expects that healthy margins from the online auctioneer will continue to be strong and sees next quarter's earnings coming in ahead of the consensus $0.04 per share.