RealTime IT News

Will Apple Computer Short-circuit Rally?

The bulls might have resumed control of the stock market on Thursday, but an earnings warning from Apple Computer after the close could test their mettle on Friday. Apple warned that earnings will come in about 30% below expectations.

During regular trading, the ISDEX soared 26 to 777, and the Nasdaq bolted 122 to 3778. The S&P 500 charged ahead 31 to 1458, and the Dow soared 195 to 10,824. Volume rose to 1.2 billion shares on the NYSE and 2 billion on the Nasdaq. Advancers led decliners by almost 2-to-1 on the NYSE and the Nasdaq. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our new after hours trading site.

Big-cap Internet leaders recovered some of their recent losses. Yahoo regained 4 to 94 3/8 on positive comments from Merrill Lynch analyst Henry Blodget and others. The stock broke down at 99 1/2-99 3/4 yesterday, the May and August bottoms, and needs to get back above 100 to repair the technical damage. eBay gained 4 3/8 to 67 7/8, and Amazon rose 1 5/8 to 39 1/2.

Priceline recovered 1 to 11 13/16 a day after falling 40% on an earnings warning that carried the rest of the Net sector down with it. A technical comment and chart on Priceline: When Priceline was at $25, we said it looked like there could be further downside ahead, and here's why: the stock broke a descending triangle, a flat-bottomed pattern with a descending upper boundary, at $32 back in July. As the size of the pattern was 18 points from peak (50) to trough (32), that gave the stock downside potential to $14, or 18 points below the break. For more on the Priceline story, click here.

The acquisition of Global Crossing's Web hosting business by Exodus was back on today. Exodus, off 4 1/4 to 49, will pay about $6.5 billion in stock, and said the deal will be accretive to EBITDA in 2001. Navisite gained 1 1/2 to 29 3/8, and Data Return added 2 7/8 to 18 7/8. Digex , which is being bought by WorldCom and was pursued by both Exodus and Global Crossing, fell 6 7/8 to 47 7/8.

Telecom equipment stocks weathered a report by Sanford Bernstein that said growth in telecom equipment spending should slow from 28% this year to less than 20% next year. Cisco Systems added 1 1/4 to 58 9/16 and Nortel gained 3 1/16 to 62 1/2, But Juniper Networks slipped 1/16 to 224 15/16 despite comments that it could be added to the S&P 500. Cisco announced acquisitions of privately held Vovida Networks and IPCell technologies for $369 million in cash.

WebMD soared 2 9/16 to 13 13/16 after announcing the elimination of 1,100 jobs and a restructuring the company said will save $250 million a year. The company will divest its plastics and filtration technologies subsidiaries.

Intraware gained 1/8 to 8 1/2 after beating estimates by 11 cents with a 33-cent loss.

Netcentives rose 3/4 to 7 after pre-announcing better than expected results.

PDA stocks were strong. Handspring soared 7 7/16 to 74 3/4, and Palm rose 1 15/16 to 50 13/16.

Copper Mountain , which dropped 10 points yesterday on various rumors of weakness in DSL business, recovered 3/8 to 39. The stock has been battered by rumors for weeks.

Some technical comments on the market: Note: We will now be inc